Document:

Exhibit
10.4

 

FI No: 87906/87907

Serapis: 2016-0719

 

Biofrontera (EGFF)

 

Finance Contract

 

between the

 

European Investment Bank

 

and

 

Biofrontera AG

 

Luxembourg, 19 May 2017

 

     

     

    

 

Table
of Contents

 

	 	 	Page
	 	 	 
	ARTICLE 1	Credit and Disbursements	16
	 	 	 
	ARTICLE 2	The Loan	22
	 	 	 
	ARTICLE 3	Interest	22
	 	 	 
	ARTICLE 4	Repayment	25
	 	 	 
	ARTICLE 5	Payments	30
	 	 	 
	ARTICLE 6	Borrower undertakings and representations	31
	 	 	 
	ARTICLE 7	Security	42
	 	 	 
	ARTICLE 8	Information and Visits	45
	 	 	 
	ARTICLE 9	Charges and expenses	51
	 	 	 
	ARTICLE 10	Events of Default	52
	 	 	 
	ARTICLE 11	Law and jurisdiction, miscellaneous	56
	 	 	 
	ARTICLE 12	Final clauses	58
	 	 	 
	Schedule A	60
	 	 
	Project Specification and Reporting	60
	 	 
	Schedule B	63
	 	 
	Definitions of EURIBOR	63
	 	 
	Schedule C	65
	 	 
	Form of Disbursement Offer/Acceptance (Articles 1.02B and 1.02C)	65
	 	 
	Schedule D	67
	 	 
	Form of Certificate from Borrower (Article 1.04(B))	67
	 	 
	Schedule E	68
	 	 
	Form of Compliance Certificate	68
	 	 
	Schedule F	69
	 	 
	Performance Participation Interest Examples	69
	 	 
	Schedule G	70

 

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	THIS CONTRACT IS MADE BETWEEN:	 
	 	 
	The European Investment Bank having its seat at 100 boulevard Konrad Adenauer, L-2950 Luxembourg, represented by Adrian Kamenitzer Director and Stefan Becker, Senior Counsel	(the “Bank”),
	 	 
	of the first part, and	 
	 	 
	Biofrontera AG, a public listed company incorporated under the laws of Germany, registered with the commercial register of the local court (Amtsgericht) of Leverkusen under the registration number 49717, and having its registered address at Hemmelrather Weg 201.D-51377 Leverkusen, represented by Prof. Dr. Hermann Lübbert, CEO (Vorstandsvorsitzender), and Thomas Schaffer, CFO (Vorstand)	(the “Borrower”).
	 	 
	of the second part.	 

 

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WHEREAS

 

		(1)	The Borrower has stated that it is undertaking various research and development programmes as more
particularly described in the technical description (the “Technical Description”) set out in Part Al of Schedule
A (the “Project”).

 

		(2)	The total cost of the Project, as estimated by the Bank, is EUR 40,500,000 (forty million five
hundred thousand euros) and the Borrower has stated that it intends to finance the Project as follows:

 

	Source	 	Amount (EUR)	 
	 	 	 	 
	Own funds	 	 	20,500,000	 
	 	 	 	 	 
	Credit from the Bank	 	 	20,000,000	 
	 	 	 	 	 
	TOTAL	 	 	40,500,000	 

 

		(3)	In order to fulfil the financing plan set out in Recital (2), the Borrower has requested from the
Bank a credit up to EUR 20,000,000 (twenty million euros).

 

		(4)	The Bank considering that the financing of the Project falls within the scope of its functions,
and having regard to the statements and facts cited in these Recitals, has decided to give effect to the Borrower’s request
providing to it a credit in an amount up to EUR 20,000,000 (twenty million euros) under this Finance Contract (the “Contract”);
provided that the amount of the Bank loan shall not, in any case, exceed 50% (fifty per cent) of the total cost of the Project
set out in Recital (2).

 

		(5)	The board of directors of the Borrower has authorised the borrowing of the sum of EUR 20,000,000
(twenty million euros) represented by this credit on the terms and conditions set out in this Contract.

 

		(6)	The financial obligations of the Borrower under this Contract are to be guaranteed by the Material
Subsidiaries which as at the date of this Contract are Biofrontera Bioscience AG, Biofrontera Pharma GmbH and Biofrontera Inc.
(the “Guarantors”) under a guarantee and indemnity (the “Guarantee”) by execution of a guarantee
and indemnity agreement in form and substance satisfactory to the Bank (the “Guarantee Agreement”).

 

		(7)	This operation benefits from a guarantee from the European Union under the European Fund for Strategic
Investments (“EFSI”).

 

		(8)	The statute of the Bank provides that the Bank shall ensure that its funds are used as rationally
as possible in the interests of the European Union and, accordingly, the terms and conditions of the Bank’s loan operations
must be consistent with relevant policies of the European Union.

 

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		(9)	The Bank considers that access to information plays an essential role in the reduction of environmental
and social risks, including human rights violations, linked to the projects it finances and has therefore established its Transparency
policy, the purpose of which is to enhance the accountability of the EIB Group towards its stakeholders and the citizens of the
European Union in general.

 

		(10)	The processing of personal data shall be carried out by the Bank in accordance with applicable
European Union legislation on the protection of individuals with regard to the processing of personal data by the European Union
institutions and bodies and on the free movement of such data.

 

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NOW THEREFORE it is hereby agreed as
follows:

 

INTERPRETATION AND DEFINITIONS

 

		(a)	Interpretation

 

In this Contract:

 

		(i)	References to Articles, Recitals and Schedules are, save if explicitly stipulated otherwise, references
respectively to articles, recitals and schedules to this Contract.

 

		(ii)	References to a provision of law are references to that provision as amended or re-enacted.

 

		(iii)	References to any other agreement or instrument are references to that other agreement or instrument
as amended, novated, supplemented, extended or restated.

 

		(iv)	This Contract is drafted in the English language. For the avoidance of doubt, the English language
version of this Contract shall prevail over any translation of this Contract. However, where a German translation of a word or
phrase appears in the text of this Contract, the German translation of such word or phrase shall prevail with respect to any Obligor
incorporated in Germany.

 

		(a)	Definitions

 

In this Contract:

 

“Acceptance Deadline” for
a notice means:

 

		(a)	16h00 Luxembourg time on the day of delivery, if the notice is delivered by 14h00 Luxembourg time
on a Business Day; or

 

		(b)	11h00 Luxembourg time on the next following day which is a Business Day, if the notice is delivered
after 14h00 Luxembourg time on any such day or is delivered on a day which is not a Business Day;

 

“Accepted Tranche” means
a Tranche in respect of a Disbursement Offer which has been duly accepted by the Borrower in accordance with its terms on or before
the Disbursement Acceptance Deadline:

 

“Accounting Reference Date”
has the meaning given to it in Article 6.21(s);

 

“Affiliates” means in relation
to a person, a Subsidiary of that person, or a Holding Company of that person or any other Subsidiary of that Holding Company;

 

“Application Form” means
the Borrowers application form for financing dated 18 July 2016:

 

“Authorisation” means an
authorisation, permit, consent, approval, resolution, licence, exemption, filing, notarisation or registration;

 

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“Bankruptcy Code” means
Title 11 of the United States Code entitled “Bankruptcy,” as now or hereafter in effect, or any successor statute;

 

“Business Day” means a day
(other than a Saturday or Sunday) on which the Bank and commercial banks are open for general business in Luxembourg;

 

“Cash Pay Margin” means
400 bps;

 

“Change-of-Control Event”
has the meaning given to it in Article 4.03A(3);

 

“Change-of-Law Event” has
the meaning given to it in Article 4.03A(4);

 

“Compliance Certificate”
means a certificate substantially in the form of Schedule E;

 

“Contract” has the meaning
given to it in Recital (4);

 

“Credit” has the meaning
given to it in Article 1.01:

 

“Default” means an Event
of Default or any event or circumstance specified in Article 10.01A which would (with the expiry of a grace period, the giving
of notice, the making of any determination under this Contract or any combination of the foregoing) be an Event of Default;

 

“Deferred interest” has
the meaning given to it in Article 3.02;

 

“Deferred Interest Rate”
has the meaning given to it in Article 3.02;

 

“Disbursement Acceptance”
means a copy of the Disbursement Offer duly countersigned by the Borrower;

 

“Disbursement Acceptance Deadline”
means the date and time of expiry of a Disbursement Offer as specified therein;

 

“Disbursement Date” means
the date on which actual disbursement of a Tranche is made by the Bank;

 

“Disbursement Date Market Capitalisation”
has the meaning given to it under Article 3.03;

 

“Disbursement Date Notional Equity
Proportion” has the meaning given to it under Article 3.03;

 

“Disbursement Offer” means
a letter substantially in the form set out in Schedule C;

 

“Disruption Event” means
either or both of

 

		(a)	a material disruption to those payment or communications systems or to those financial markets
which are, in each case, required to operate in order for payments to be made in connection with this Contract; or

 

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		(b)	the occurrence of any other event which results in a disruption (of a technical or systems-related
nature) to the treasury or payments operations of either the Bank or the Borrower, preventing that party:

 

		(i)	from performing its payment obligations under this Contract; or

 

		(ii)	from communicating with other parties in accordance with the terms of this Contract,

 

and which disruption (in either such case as
per (a) or (b) above) is not caused by, and is beyond the control of, the party whose operations are disrupted;

 

“EBITDA” means, in respect
of any Relevant Period, the consolidated operating profit of the Group before taxation (excluding the results from discontinued
operations):

 

		(a)	before deducting any interest, commission, fees, discounts, prepayment fees, premiums or charges
and other finance payments whether paid, payable or capitalised by any member of the Group (calculated on a consolidated basis)
in respect of that Relevant Period;

 

		(b)	not including any accrued interest owing to any member of the Group;

 

		(c)	after adding back any amount attributable to the amortisation or depreciation of assets of members
of the Group;

 

		(d)	before taking into account any Exceptional Items;

 

		(e)	after deducting the amount of any profit (or adding back the amount of any loss) of any member
of the Group which is attributable to minority interests;

 

		(f)	plus or minus the Group’s share of the profits or tosses (after finance costs and tax) of
Non-Group Entities:

 

		(g)	before taking into account any unrealised gains or losses on any financial instrument (other than
any derivative instrument which is accounted for on a hedge accounting basis); and

 

		(h)	before taking into account any gain arising from an upward revaluation of any other asset,

 

in each case, to the extent added, deducted
or taken into account, as the case may be, for the purposes of determining operating profits of the Group before taxation;

 

“EFSI” has the meaning given
in Recital (7);

 

“EFSI Regulation” means
the Regulation 2015/1017 of the European Parliament and of the Council of 25 June 2015 on the European Fund for Strategic Investments,

 

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“Environment” means the
following, in so far as they affect human health and social well-being:

 

		(a)	fauna and flora;

 

		(b)	soil, water, air, climate and the landscape; and

 

		(c)	cultural heritage and the built environment,

 

and includes, without limitation, occupational
and community health and safety;

 

“Environmental Approval”
means any Authorisation required by Environmental Law;

 

“Environmental Claim” means
any claim, proceeding, formal notice or investigation by any person in respect of any Environmental Law;

 

“Environmental Law” means:

 

		(a)	European Union law, including principles and standards;

 

		(b)	German laws and regulations; and

 

		(c)	applicable international treaties,

 

of which a principal objective is the preservation,
protection or improvement of the Environment;

 

“EURIBOR” has the meaning
given to it in Schedule B;

 

“EUR” or “euro”
means the lawful currency of the Member States of the European Union which adopt or have adopted it as their currency in accordance
with the relevant provisions of the Treaty on European Union and the Treaty on the Functioning of the European Union or their succeeding
treaties;

 

“Event of Default” means
any of the circumstances, events or occurrences specified in Article 10.01;

 

“Exceptional Items” means
any material items of an unusual or non-recurring nature which represent gains or losses including those arising on:

 

		(a)	the restructuring of the activities of an entity and reversals of any provisions for the cost of
restructuring;

 

		(b)	disposals, revaluations, write downs or impairment of non-current assets or any reversal of any
write down or impairment;

 

		(c)	disposals of assets associated with discontinued operations; and

 

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		(d)	any other examples of “exceptional items” (as such term has the meaning attributed
to it in IFRS);

 

“Final Availability Date”
means the date falling 2 (two) years from and (including) the date of this Contract;

 

“Financial Quarter” means
the period commencing on the day after one Quarter Date and ending on the next Quarter Date;

 

“Financial Year” means the
annual accounting period of the Group ending on the Accounting Reference Date;

 

“Floating Rate” means a
fixed-spread floating interest rate, that is to say an annual interest rate determined by the Bank for each successive Floating
Rate Reference Period equal to EURIBOR plus the Cash Pay Margin;

 

“Floating Rate Reference Period”
means each period from one Payment Date to the next relevant Payment Date; the first Floating Rate Reference Period shall commence
on the date of disbursement of the Tranche;

 

“GAAP” means generally accepted
accounting principles in Germany (Grundsätze ordnungsgemäßer Buchführong) under the German Commercial
Code (Handelsgesetzbuch) including, where permitted by the German Commercial Code (Handelsgesetzbuch) or other applicable
law (and with respect to any US Guarantor means the generally accepted accounting principles and rules used in the US), including
IFRS;

 

“Good Industry Practice”
means the exercise of that degree of skill, diligence, prudence and foresight which would reasonably and ordinarily be expected
from a skilled and experienced person acting in good faith and carrying out the same type of activity under the same or equivalent
circumstances and conditions and acting generally in accordance with applicable law;

 

“Group” means the Borrower
and its Affiliates from time to time;

 

“Guarantee” means a guarantee
and indemnity to the Bank guaranteeing the performance by the Borrower of all of its obligations under this Contract;

 

“Guarantee Agreement” means
each guarantee and indemnity agreement executed by a Guarantor, in form and substance satisfactory to the Bank;

 

“Guarantor” means:

 

		(a)	as at the date of this Contract, Biofrontera Bioscience GmbH, Biofrontera Pharma GmbH and Biofrontera
Inc.; and

 

		(b)	and any other company which becomes a Guarantor in accordance with Article 7.01.

 

“Holding Company” means,
in relation to a person, any other person in respect of which it is a Subsidiary;

 

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“IFRS” means international
accounting standards within the meaning of IAS Regulation 1606/2002 to the extent applicable to the relevant financial statements;

 

“Illegal Activities” means
any of the following illegal activities or activities carried out for illegal purposes: tax evasion, tax fraud, fraud, corruption,
coercion, collusion, obstruction, money laundering, financing of terrorism, organised crime or any illegal activity that may affect
the financial interests of the EU according to applicable law:

 

“Indebtedness” means any:

 

		(a)	obligations for borrowed money;

 

		(b)	indebtedness under any acceptance credit;

 

		(c)	indebtedness under any bond, debenture, note or similar instrument;

 

		(d)	instrument under any bill of exchange:

 

		(e)	indebtedness in respect of any interest rate or currency swap or forward currency sale or purchase
or other form of interest or currency hedging transaction (including without limit caps, collars and floors);

 

		(f)	indebtedness under any finance lease;

 

		(g)	indebtedness (actual or contingent) under any guarantee, bond security, indemnity or other agreement;

 

		(h)	indebtedness (actual or contingent) under any instrument entered into for the purpose of raising
finance;

 

		(i)	indebtedness in respect of a liability to reimburse a purchaser of any receivables sold or discounted
in the event that any amount of those receivables is not paid:

 

		(j)	indebtedness arising under a securitisation: or

 

		(k)	other transaction which has the commercial effect of borrowing;

 

“Indemnifiable Prepayment Event”
means a Prepayment Event other than those specified in Article 4.03A(2) or Article 4.03A(5);

 

“Intellectual Property Rights”
means, including without limitation, intellectual property of every designation (including patents, utility patents, copyrights,
design rights, trademarks, service marks and know how) whether capable of registration or not;

 

“Joint Venture” means any
joint venture entity, whether a company, unincorporated firm undertaking, association, joint venture or partnership or any other
entity;

 

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“Lead Organisation” means
the European Union, the United Nations, the International Monetary Fund, the Financial Stability Board, the Financial Action Task
Force and the Organisation for Economic Cooperation and Development;

 

“Loan” means the aggregate
amount of Tranches disbursed from time to time by the Bank under this Contract;

 

“Margin Stock” has the meaning
assigned to that term in Regulation U issued by the Board of Governors of the Federal Reserve System as in effect from time to
time;

 

“Market Abuse Regulation”
means Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse
regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC,
2003/125/EC and 2004/72/EC;

 

“Material Adverse Change”
means, any event or change of condition, which, in the opinion of the Bank has a material adverse effect on:

 

		(a)	the ability of the Borrower or any Guarantor to perform its obligations under this Contract or
any Guarantee (as applicable);

 

		(b)	the business, operations, property, condition (financial or otherwise) or prospects of the Borrower,
any Guarantor or the Group as a whole; or

 

		(c)	the validity or enforceability of, or the rights or remedies of the Bank under this Contract or
any Guarantee;

 

“Material Subsidiary” means
any Subsidiary of the Borrower from time to time, whose gross revenues, total assets or EBITDA represents not less than 5% (five
per cent) of (i) the consolidated gross revenues of the Group taken as a whole and attributable to the shareholders of the Borrower
or, (ii) the consolidated total assets of the Borrower and its Subsidiaries taken as a whole or, (iii) as the case may be,
the consolidated EBITDA of the Group, as calculated based on the then latest consolidated audited accounts of the Group;

 

“Maturity Date” means the
sole repayment date of a Tranche specified pursuant to Article 4.01;

 

“Non-Group Entity” means
any investment or entity (which is not itself a member of the Group (including associates and Joint Ventures)) in which any member
of the Group has an ownership interest;

 

“Obligor” means a Borrower
or a Guarantor;

 

“Payment Date” means the
quarterly dates specified in the Disbursement Offer until the Maturity Date, save that, in case any such date is not a Relevant
Business Day, it means, the next day, if any, of that calendar month that is a Relevant Business Day or, failing that, the nearest
preceding day that is a Relevant Business Day, in all cases with corresponding adjustment to the interest due under Article 3.01;

 

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“Permitted Acquisition”
means an acquisition:

 

		(a)	by a member of the Group of an asset sold, leased, transferred or otherwise disposed of by another
member of the Group in circumstances permitted by Article 6.06;

 

		(b)	by the Borrower or any other member of the Group of shares or other ownership interests by way
of acquisition of a wholly owned shelf company, provided that such company is incorporated in a country that is a member of either
or both of the European Union or the Organisation of Economic Co-Operation and Development;

 

		(c)	of shares or other ownership interests in a Target Entity, which do not exceed an aggregate amount
of EUR 2,000,000 (two million euros) during the term of the Credit.

 

but, in relation to paragraphs (b),
and (c) above, only if:

 

		(ii)	no Event of Default is continuing on the date the relevant acquisition agreement is entered into
or would occur as a result of the acquisition;

 

		(ii)	the acquired Target Entity, business or undertaking is engaged in a business similar or complementary
to the business carded on by the Group as at the date of this Contract,

 

		(iii)	the acquired Target Entity, business or undertaking is not incorporated or located in a jurisdiction
that is blacklisted by any Lead Organisation in connection with activities such as money laundering, financing of terrorism, tax
fraud and tax evasion or harmful tax practices as such blacklist may be amended from time to time;

 

		(iv)	legal and financial due diligence reports (including customary reliance letters) and a business
plan (in the form of the most recent budget supplemented to account for the effects of the acquisition) in respect of the 3 (three)
next following financial years and any other due diligence reports received in connection with the acquisition (if any) are provided
to the Bank; and

 

		(v)	the Borrower demonstrates that the acquisition has been approved by the Borrower’s board
of directors;

 

“Permitted Disposal” means
any act effecting a sale, transfer, lease or other disposal:

 

		(a)	related to the sale of finished products and/or services made on arm’s length terms in the
ordinary course of business of the Borrower or other member of the Group;

 

		(b)	by one Obligor to another Obligor;

 

		(c)	for cash in an amount reflecting or exceeding the fair market value of such assets, which is reinvested
in assets of comparable or superior type, value and quality;

 

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		(d)	(other than shares, businesses or Intellectual Property Rights) made in exchange for other assets
comparable or superior as to type, value and quality;

 

		(e)	constituted by a licence of Intellectual Property Rights in the ordinary course of business;

 

		(f)	made in relation to non-material assets which have depreciated to less than 25% (twenty five per
cent) of their initial value or which are obsolete: or

 

		(g)	excluding any disposal permitted under (a) to (f) above, disposals where the higher of the market
value or consideration receivable for such disposals does not exceed EUR 1,000,000 (one million euros) during the term of the Credit,

 

“Permitted Guarantees” means
guarantees issued in the ordinary course of trade by any member of the Group:

 

		(a)	under or in connection with any Guarantee Agreement;

 

		(b)	under or in connection with any negotiable instruments;

 

		(c)	under or in connection with any performance bond;

 

		(d)	in connection with any Permitted Indebtedness;

 

		(e)	to another member of the Group; or

 

		(f)	in the ordinary course of business,

 

provided that at any point in time the guarantees
issued pursuant to (a) to (f) above do not guarantee an aggregate amount of EUR 1,000,000 (one million euros) or greater;

 

“Permitted Indebtedness”
means Indebtedness of the Borrower and/or members of the Group incurred under

 

		(a)	this Contract,

 

		(b)	existing Indebtedness as at the date of this Contract listed in Schedule G (Existing Indebtedness);

 

		(c)	any deferred purchase arrangements for assets or services acquired in the ordinary course of its
business which is:

 

		(i)	on terms that require the indebtedness to be repaid within 60 days of delivery of the goods or
performance of the services, as the case may be, and

 

		(ii)	not more than 30 days overdue;

 

		(d)	leasing costs, incurred in the ordinary course of its business, for non-specific company assets,
provided that the capital value of the assets does not exceed EUR 2,500,000 in aggregate at any one time;

 

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		(e)	any finance or capital leases of equipment if the aggregate liability in respect of the equipment
leased does not at any time exceed EUR 250,000 (two hundred and fifty thousand euros) (or its equivalent in another currency or
currencies);

 

		(f)	the leasing agreement of the Borrower’s business premises;

 

		(g)	a Permitted Guarantee;

 

		(h)	any intercompany loan made by one Obligor to another Obligor, provided such intercompany loan is
on arms’ length terms;

 

		(i)	excluding Indebtedness permitted under (a) to (f) above, Indebtedness which does not exceed EUR
1,000,000 (one million euros); or

 

		(j)	any other Indebtedness incurred with the prior written consent of the Bank;

 

“Permitted Merger” means
any amalgamation, demerger, merger or corporate reconstruction which, in the reasonable opinion of the Bank, does not result in
a Material Adverse Change and which is on a solvent basis, and where:

 

		(a)	only members of the Group are involved;

 

		(b)	the resulting entity will not be incorporated or located in a country which is in a jurisdiction
that is blacklisted by any Lead Organisation in connection with activities such as money laundering, financing of terrorism, tax
fraud and tax evasion or harmful tax practices as such blacklist may be amended from time to time; and

 

		(c)	where the Borrower is involved, (i) the rights and obligations of the Borrower under this Contract
will remain with the Borrower, (ii) the surviving entity will be the Borrower and the statutory seat of the Borrower would not
as a result of such merger be transferred to a different jurisdiction, (iii) the merger will not have an effect on the validity,
legality or enforceability of the Borrowers obligations under this Contract; and (iv) all of the business and assets of the Borrower
are retained by it,

 

“Permitted Payments” means:

 

		(a)	shares purchased from former employees, managers or directors, provided that such shares were awarded
under a share programme of the Borrower;

 

		(b)	any payments required to be made under any intercompany loan or intercompany service agreement
made by one Obligor to another Obligor, provided such intercompany loan or intercompany service agreement is on arms’ length
terms; and

 

		(c)	any other payments made with the prior written consent of the Bank, in each case without double
counting:

 

“Permitted Security” means
any security permitted under Article 7.02(b);

 

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“Prepayment Amount” means
the amount of a Tranche to be prepaid by the Borrower in accordance with Article 4.02A;

 

“Prepayment Date” means
the date, which shall be a Payment Date, on which the Borrower proposes to effect prepayment of a Prepayment Amount;

 

“Prepayment Event” means
any of the events described in Article 4.03A;

 

“Prepayment Fee” means the
prepayment fee payable in accordance with Article 4.02B;

 

“Prepayment Notice” means
a written notice from the Bank to the Borrower in accordance with Article 4.02C;

 

“Prepayment Request” means
a written request from the Borrower to the Bank to prepay all or part of the Loan, in accordance with Article 4.02A;

 

“Project” has the meaning
given to it in Recital (1);

 

“Quarter Date” means each
of 31 March, 30 June, 30 September and 31 December from the date of this Contract until the Maturity Date;

 

“Regulations T, U, X” means,
respectively, Regulations T, U and X of the Board of Governors of the Federal Reserve System of the United States (or any successor);

 

“Relevant Business Day”
means a day on which the Trans-European Automated Real-time Gross Settlement Express Transfer payment system which utilises a single
shared platform and which was launched on 19 November 2007 (TARGET2) is open for the settlement of payments in EUR;

 

“Relevant Period” means
each period of twelve months ending on or about the last day of the Financial Year and each period of twelve months ending on or
about the last day of the second Financial Quarter of a Financial Year;

 

“Restricted Party” means
a person that is:

 

		(a)	listed on, or owned or controlled by a person listed on, a Sanctions List, or a person acting on
behalf of such a person;

 

		(b)	located in or organised under the laws of a country or territory that is the subject of country-
or territory-wide Sanctions, or a person who is owned or controlled by, or acting on behalf of such a person; or

 

		(c)	otherwise a subject of Sanctions;

 

“Sanctions” means any trade,
economic or financial sanctions laws, regulations, embargoes or restrictive measures administered, enacted or enforced by a Sanctions
Authority;

 

“Sanctions Authority” means;

 

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		(a)	the Security Council of the United Nations;

 

		(b)	the US;

 

		(c)	the European Union:

 

		(d)	the UK; and

 

		(e)	the governments and official institutions or agencies of any of paragraphs (a) to (d) above, including
OFAC, the US Department of State and Her Majesty’s Treasury:

 

“Sanctions List” means the
Specially Designated Nationals and Blocked Persons list maintained by OFAC, the Consolidated List of Financial Sanctions Targets
and the Investment Ban List maintained by Her Majesty’s Treasury, or any similar list maintained by, or public announcement
of a Sanctions designation made by, a Sanctions Authority, each as amended, supplemented or substituted from time to time;

 

“Scheduled Disbursement Date”
means the dale on which a Tranche is scheduled to be disbursed in accordance with Article 1.02B;

 

“Security” means any mortgage,
pledge, lien, charge, assignment, hypothecation, or other security interest securing any obligation of any person or any other
agreement or arrangement having a similar effect;

 

“Subsidiary” means:

 

		(a)	a subsidiary (Tochterunternehmen) within the meaning of section 17 German Stock Corporation
Act (Aktiengesetz) or section 290 German Commercial Code (Handelsgesetzbuch) in relation to the Borrower; and

 

		(b)	any other entity of which the Borrower has direct or indirect control or owns beneficially directly
or indirectly more than 50% of the voting capital or similar right of ownership and “control” for this purpose means
the power to control the composition of or direct the management (Geschäftsleitung) and the policies (Geschäftspolitik)
of the entity, whether through the ownership of voting capital, by contract or otherwise;

 

“Target Entity” means any
limited liability company, corporation, limited liability partnership or any equivalent;

 

“Tax” means any tax, levy,
impost, duty or other charge or withholding of a similar nature (including any penalty or interest payable in connection with any
failure to pay or any delay in paying any of the same);

 

“Technical Description”
has the meaning given to it in Recital (1);

 

“Total Assets” means the
total consolidated assets of the Group, as shown in the Borrowers latest consolidated financial statements;

 

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“Tranche” means each disbursement
made or to be made under this Contract. In case no Disbursement Acceptance has been received, Tranche shall mean a Tranche as offered
under Article 1.02B;

 

“US” means the United States
of America; and

 

“US Guarantor” means any
Guarantor organised under the laws of the US, any state thereof or the District of Columbia.

 

ARTICLE
1

 

Credit and Disbursements

 

		1.01	Amount of Credit

 

By this Contract the Bank establishes
in favour of the Borrower, and the Borrower accepts, a credit in an amount of up to EUR 20,000,000 (twenty million euros) for the
financing of the Project (the “Credit”).

 

		1.02	Disbursement procedure

 

		1.02A	Tranches

 

The Bank shall disburse the Credit
in up to four Tranches. The amount of each Tranche, if not being the undrawn balance of the Credit, shall be in a minimum amount
of EUR 5,000,000 (five million euros).

 

		1.02B	Disbursement Offer

 

Subject to Article 1.04 and upon
request by the Borrower the Bank shall send to the Borrower a Disbursement Offer for the disbursement of a Tranche. The latest
time for receipt by the Borrower of a Disbursement Offer is 10 (ten) days before the Final Availability Date. The Disbursement
Offer shall specify:

 

		(a)	the amount and currency of the Tranche;

 

		(b)	the Scheduled Disbursement Date, which shall be a Relevant Business Day falling at least 10 (ten)
days after the date of the Disbursement Offer and on or before the Final Availability Date;

 

		(c)	the Cash Pay Margin applicable until the Maturity Date;

 

		(d)	the Disbursement Date Market Capitalisation;

 

		(e)	the Disbursement Date Notional Equity Proportion;

 

		(f)	the Deferred Interest Rate;

 

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		(g)	the payment dates and interest payment periodicity for the Tranche, in accordance with the provisions
of Article 3.01;

 

		(h)	the first Payment Date for the Tranche;

 

		(i)	the Maturity Date; and

 

		(j)	the Disbursement Acceptance Deadline.

 

		1.02C	Disbursement Acceptance

 

The Borrower may accept a Disbursement
Offer by delivering a Disbursement Acceptance to the Bank no later than the Disbursement Acceptance Deadline. The Disbursement
Acceptance shall be accompanied:

 

		(a)	by the IBAN code (or appropriate format in line with local banking practice) and SWIFT BIC of the
bank account to which disbursement of the Tranche should be made in accordance with Article 1.02D; and

 

		(b)	by evidence of the authority of the person or persons authorised to sign the Disbursement Acceptance
and the specimen signature of such person or persons or a declaration by the Borrower that no change has occurred in relation to
the authority of the person or persons authorised to sign Disbursement Acceptances under this Contract.

 

If a Disbursement Offer is duly accepted
by the Borrower in accordance with its terms on or before the Disbursement Acceptance Deadline, and provided that the conditions
under Article 1.04 are met, the Bank shall make the Accepted Tranche available to the Borrower in accordance with the relevant
Disbursement Offer and subject to the terms and conditions of this Contract.

 

The Borrower shall be deemed to have
refused any Disbursement Offer which has not been duly accepted in accordance with its terms on or before the Disbursement Acceptance
Deadline.

 

		1.02D	Disbursement Account

 

Disbursement shall be made to such
account of the Borrower as the Borrower shall notify in writing to the Bank in the Disbursement Acceptance.

 

Only one account may be specified
for each Tranche.

 

		1.03	Currency of disbursement

 

The Bank shall disburse each Tranche
in EUR.

 

		1.04	Conditions of disbursement

 

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		1.04A	First Tranche

 

The disbursement of the first Tranche
under Article 1.02 is conditional upon receipt by the Bank, in form and substance satisfactory to it, before the date falling 5
Business Days before the Disbursement Offer, of the following documents or evidence:

 

		(a)	a certified copy of the resolution of the competent body (management board (Vorstand)) of
the Borrower duly authorising the execution of this Contract and duly authorising the person or persons signing this Contract on
behalf of the Borrower together with the specimen signature of each such person or persons;

 

		(b)	a certified copy of the resolution of the competent body (management board (Geschäftsführung)
and CEO, respectively and with respect to a Guarantor that is a US Guarantor, its board of directors or other management body))
of each Guarantor duly authorising the execution of the Guarantee Agreement and duly authorising the person or persons signing
the Guarantee Agreement on behalf of each Guarantor together with the specimen signature of each such person or persons;

 

		(c)	evidence that the Borrower has obtained all necessary Authorisations required in connection with
this Contract and the Project:

 

		(d)	evidence that this Contract has been executed by the Borrower,

 

		(e)	the duly executed Guarantee Agreement in a form and substance satisfactory to the Bank;

 

		(f)	a legal opinion of Ashurst LLP, addressed to the Bank, in form and substance satisfactory to the
Bank, on the legality, validity and enforceability of this Contract and distributed to the Bank prior to the signing of this Contract;

 

		(g)	a legal opinion of LLR Legerlotz Laschet und Partner Rechtsanwälte Partnerschaft mbB, Mevissenstraße
15, 50668 Cologne, Germany, legal adviser to the Borrower, addressed to the Bank in form and substance satisfactory to the Bank,
on the valid existence of the Borrower, the authority and capacity of the Borrower to enter into this Contract and on the due execution
and choice of law of this Contract;

 

		(h)	a legal opinion of LLR Legerlotz Laschet und Partner Rechtsanwälte Partnerschaft mbB, Mevissenstraße
15, 50668 Cologne, Germany, legal adviser to each Guarantor, addressed to the Bank in form and substance satisfactory to the Bank,
on the valid existence of each Guarantor incorporated in Germany, the authority and capacity of each Guarantor incorporated in
Germany to enter into the Guarantee Agreement and on the due execution and choice of law of the Guarantee Agreement;

 

    	18

     

    

 

		(i)	legal opinion of Foley Hoag LLP, legal adviser to the US Guarantor, addressed to the Bank in form
and substance satisfactory to the Bank, on the valid existence of the US Guarantor, the authority and capacity of the US Guarantor
to enter into the Guarantee Agreement and on the due execution and choice of law of the Guarantee Agreement;

 

		(j)	evidence of the latest audited financial statements of the Borrower and each Guarantor;

 

		(k)	an up-to date pdf copy from the German commercial register (Handelsregister) with regard
to the Borrower and each Guarantor incorporated in Germany;

 

		(l)	a pdf copy of the list of shareholders (Geselischafterliste) of each Guarantor, if applicable;

 

		(m)	a pdf copy of the articles of association (Setzung) of the Borrower and each Guarantor (and
with respect to a US Guarantor. its certificate of incorporation or other organizational document) and the rules of procedure of
the management board (Geschäftsordnung), supervisory board (Aufsichtsrat) and/or advisory board (Beirat),
and with respect to a US Guarantor, its by-laws or other operating document, if any;

 

		(n)	the Group structure chart showing the Group as of the date of this Contract;

 

		(o)	a certificate of an authorised signatory of the Borrower and each Guarantor certifying that each
copy document relating to it specified in this Article 1.04A is correct, complete and in full force and effect as at a date no
earlier than the date of this Contract,

 

		(p)	evidence that insurances in accordance with the requirements of Article 6.05(c) are in place;

 

		(q)	evidence of appointment of the Borrowers and each Guarantors’ agent of service;

 

		(r)	evidence of payment of all the fees and expenses as required under this Contract and the Guarantee
Agreement;

 

		(s)	in the case of each Guarantor that is a US Guarantor, a certificate as to the existence and good
standing of such Guarantor from the appropriate governmental authorities in such Guarantor’s jurisdiction of organisation;

 

		(t)	a solvency certificate signed by the chief financial officer, chief accounting officer or other
similar officer of each Guarantor that is a US Guarantor in form and substance reasonably satisfactory to the Bank; and

 

		(u)	a copy of any other document, authorisation, opinion or assurance which the Bank considers to be
necessary (if it has notified the Borrower and each Guarantor accordingly) in connection with the entry into and performance of
this Contract.

 

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		1.04B	Further Conditions Precedent for all Trenches

 

The disbursement of each Tranche
under Article 1.02, including the first, is subject to the following conditions:

 

		(a)	that the Bank has received, in form and substance satisfactory to it, before the date falling 5
Business Days before the Disbursement Offer for the proposed Tranche, the following documents or evidence:

 

(i)         a
certificate from the Borrower in the form of Schedule D, signed by an authorised representative of the Borrower and dated no earlier
than the date falling 10 (ten) days before the Scheduled Disbursement Date;

 

(ii)        evidence
of each Guarantors consent to the Borrower’s acceptance of the Disbursement Offer;

 

(iii)       evidence
of the authority of the person or persons authorised to sign each Guarantor’s consent under paragraph (ii) above and the
specimen signature of such person or persons; and

 

(iv)       a
copy of any other authorisation or other document, opinion or assurance which the Bank has notified the Borrower is necessary in
connection with the entry into and performance of, and the transactions contemplated by, this Contract or the validity and enforceability
of the same;

 

		(b)	that on the Disbursement Date for the proposed Tranche:

 

(i)         the
representations and warranties which are repeated pursuant to Article 6.21 are correct in all respects;

 

(ii)        no
Default has occurred and is continuing or would result from the disbursement of the proposed Tranche; and

 

(iii)       no
event or circumstance has occurred and is continuing which constitutes or would with the expiry of a grace period and/or the giving
of notice under this Contract constitute a Prepayment Event (other than pursuant to Article 4.03A(1) (Project Cost Reduction) or
Article 4.03A(2) (Pari Passu to Non-EIB Financing)), or would result from the disbursement of the proposed Tranche;

 

		(c)	if the amount of the proposed Tranche, when aggregated with the Loans outstanding under all Tranches
is more than EUR 10,000,000, the Bank has received before the Disbursement Offer for the proposed Tranche, (in form and substance
satisfactory to it) evidence of Group consolidated revenues of over EUR 15 million on a 12-month rolling basis: and

 

    	20

     

    

 

		(d)	if the amount of the proposed Tranche, when aggregated with the Loans outstanding under all Tranches
is more than EUR 15,000,000, the Bank has received before the Disbursement Offer for the proposed Tranche, the following documents
or evidence (in form and substance satisfactory to it):

 

(i)         evidence
of Group consolidated revenues of over EUR 35 million on a 12-month rolling basis, and

 

(ii)        evidence
of an equity raise of at least EUR 5 million.

 

		1.05	Cancellation

 

		1.05A	Borrower’s right to cancel

 

The Borrower may at any time by notice
in writing to the Bank cancel, in whole or in part and with immediate effect, the undisbursed portion of the Credit. However, the
notice shall have no effect in respect of an Accepted Tranche which has a Scheduled Disbursement Date falling within 5 (five) Business
Days of the date of the notice.

 

		1.05B	Bank’s right to cancel

 

The Bank may, by notice in writing
to the Borrower, cancel the undisbursed portion of the Credit in whole or in part at any time and with immediate effect:

 

		(a)	upon the occurrence of a Prepayment Event other than pursuant to Articles 4.03A(1) or 4.03A(2),
a Default or an event or circumstance which would with the passage of time or giving of notice under this Contract constitute a
Prepayment Event other than pursuant to Articles 4.03A(1) or 4.03A(2); or

 

		(b)	by an amount equal to the amount by which it is entitled to cancel the Credit pursuant to Articles
4.03A(1) or 4.03A(2).

 

		1.05C	Indemnity for cancellation of a Tranche

 

If an Accepted Tranche is not disbursed
on the Scheduled Disbursement Date because the conditions precedent set out in Article 1.04 are not satisfied on such date, such
Tranche shall be cancelled and, the Borrower shall indemnify the Bank under Article 4.02B.

 

If pursuant to Article 1.05A, the
Borrower cancels any part of the Credit it shall indemnify the Bank under Article 4.02B.

 

if the Bank cancels:

 

		(a)	an Accepted Tranche upon an Indemnifiable Prepayment Event, the Borrower shall indemnify the Bank
as per Article 4.02B; or

 

		(b)	an Accepted Tranche upon an Event of Default, the Borrower shall indemnify the Bank under Article
10.03.

 

Save in these cases, no indemnity
is payable upon cancellation of a Tranche by the Bank.

 

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		1.06	Cancellation after expiry of the Credit

 

On the day following the Final Availability
Date, and unless otherwise specifically agreed to in writing by the Bank, the part of the Credit in respect of which no Disbursement
Acceptance has been made in accordance with Article 1.02C shall be automatically cancelled, without any notice being served by
the Bank to the Borrower and without liability arising on the part of either party.

 

		1.07	Sums due under Article 1

 

Sums due under Article 1 shall be
payable in EUR. They shall be payable within 15 (fifteen) days of the Borrower’s receipt of the Bank’s demand or within
any longer period specified in the Bank’s demand.

 

ARTICLE
2

 

The Loan

 

		2.01	Amount of Loan

 

The Loan shall comprise the aggregate
amount of Tranches disbursed by the Bank under the Credit.

 

		2.02	Currency of repayment, interest and other charges

 

Interest, repayments and other charges
payable in respect of each Tranche shall be made by the Borrower in the currency in which the Tranche is disbursed.

 

Any other payment shall be made in
the currency specified by the Bank having regard to the currency of the expenditure to be reimbursed by means of that payment.

 

ARTICLE
3

 

Interest

 

		3.01	Payment of cash interest

 

		(a)	Subject to Article 3.02 and Article 3.03, the Borrower shall pay interest on the outstanding balance
of each Tranche at the Floating Rate quarterly in arrears on the relevant Payment Dates, as specified in the Disbursement Offer
commencing on the first such Payment Date following the Disbursement Date of the Tranche. If the period from the Disbursement Date
to the first Payment Date is 15 days or less then the payment of interest accrued during such period shall be postponed to the
following Payment Date.

 

		(b)	The Bank shall notify the Floating Rate to the Borrower within 10 (ten) days following the commencement
of each Floating Rate Reference Period

 

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		(c)	Interest shall be calculated in respect of each Floating Rate Reference Period on the basis of
Article 5.01. If the Floating Rate for any Floating Rate Reference Period is below zero, it will be set at zero.

 

		3.02	Payment of deferred interest

 

In addition to the interest referred
to in Article 3.01 and 3.03, the Borrower shall pay, on the Maturity Date of the relevant Tranche (and as specified in the relevant
Disbursement Offer) interest at the Deferred Interest Rate which accrues on a daily basis on the outstanding amount of each Tranche
during the period starting on the Disbursement Date of such Tranche and ending on the Maturity Date of the relevant Tranche (or
on any date earlier than that Maturity Date in the event of a prepayment or an acceleration of all or part of that Tranche) (the
“Deferred Interest”).

 

For the purposes of this Contract
“Deferred Interest Rate” means a fixed interest rate of 6% per annum.

 

		3.03	Payment of performance participation interest

 

		(a)	In addition to the interest referred to in Article 3.01 and Article 3.02, the Borrower shall pay,
on the Maturity Date of the relevant Tranche (or on any date earlier than that Maturity Date in the event of a prepayment or an
acceleration of all or part of that Tranche) an amount equal to the Performance Participation Interest in respect of that Tranche.

 

		(b)	The Borrower and the Bank hereby agree that the calculations illustrated as examples of the Performance
Participation Interest under Schedule F, fairly represent the intention of the Parties.

 

For the purposes of this Contract:

 

“Auditor” means
any firm of accountants with sufficient skill and expertise and appropriate geographical reach or any other firm approved in advance
by the Bank (such approval not to be unreasonably withheld or delayed);

 

“Disbursement Date Notional
Equity Proportion” means the Bank’s notional equity share in the Borrower’s issued share capital calculated
as at the Disbursement Offer of a relevant Tranche as follows:

 

Disbursement Date Notional Equity
Proportion = the amount expressed as a per centage of (Amount of the Tranche) x (Participation Interest Notional Rate) x (Term
of the Tranche) / (Disbursement Date Market Capitalisation);

 

“Disbursement Date Market
Capitalisation” means the Market Capitalisation of the Borrower’s entire issued share capital as notified by the
Bank in the Disbursement Offer;

 

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“Market Capitalisation”
means:

 

		(a)	for so long as the Borrower is listed for trading on the Frankfurt Stock Exchange, the market value
of the issued share capital of the Borrower shall be calculated on the basis of a non-weighted average closing price of the shares
in the Xetra trading system over a period equal to 90 Trading Days prior to the Disbursement Date or the Maturity Date of the relevant
Tranche (as applicable); and

 

		(b)	if at any time the Borrower is de-listed from trading on the Frankfurt Stock Exchange, the market
value of the issued share capital of the Borrower on the Disbursement Date or the Maturity Date (or on any date earlier than that
Maturity Date in the event of a prepayment or an acceleration of all or part of that Tranche) shall be determined by an Auditor
(at the cost of the Borrower) and such Auditor shall attribute a value to the appropriated financial collateral in a commercially
reasonable manner;

 

“Maturity Date Market Capitalisation”
means the Market Capitalisation of the Borrower’s entire issued share capital in relation to the Maturity Date (or on any
date earlier than that Maturity Date in the event of a prepayment or an acceleration of all or part of that Tranche);

 

“Participation Interest
Notional Rate” means a fixed interest rate of 2% per annum;

 

“Performance Participation
Interest” means the amount expressed in Euros notified by the Bank to the Borrower representing the value of the Bank’s
notional equity return in the Borrower’s issued share capital based on (i) the Bank’s Disbursement Date Notional Equity
Proportion and (ii) the Maturity Date Market Capitalisation, calculated as follows:

 

Performance Participation Interest
= (Disbursement Date Notional Equity Proportion) x (Maturity Date Market Capitalisation).

 

provided that, other than in the
case of a voluntary prepayment, the maximum Performance Participation Interest payable in respect of a Tranche shall not exceed
an amount equal to 4% per annum; and

 

“Trading Day”
means a day (other than a Saturday or Sunday) on which the Frankfurt Stock Exchange is open for trading.

 

		3.04	Interest on overdue sums

 

Without prejudice to Article 10 and
by way of exception to Article 3.01, if the Borrower fails to pay any amount payable by it under this Contract on its due date,
interest shall accrue (subject to mandatory provisions of the applicable laws) on any overdue amount payable under the terms of
this Contract from the due date to the date of actual payment at an annual rate equal to:

 

		(a)	for overdue sums related to Trenches, the applicable Floating Rate plus 2% (200 basis points);
or

 

    	24

     

    

 

		(b)	for overdue sums other than under (i) above, EURIBOR plus 2% (200 basis points),

 

and shall be payable in accordance
with the demand of the Bank. For the purpose of determining the EURIBOR in relation to this Article 3.04, the relevant periods
within the meaning of Schedule B shall be successive periods of one month commencing on the due date.

 

If the overdue sum is in a currency
other than the currency of the Loan, the following rate per annum shall apply, namely the relevant interbank rate that is generally
retained by the Bank far transactions in that currency plus 2% (200 basis points), calculated in accordance with the market practice
for such rate.

 

ARTICLE
4

 

Repayment

 

		4.01	Repayment

 

The Borrower shall repay each Tranche,
together with all other outstanding amounts under this Contract in relation to the Tranche, in a single instalment on the Maturity
Date specified in the Disbursement Offer relating to that Tranche being a Payment Date falling 5 years from the Scheduled Disbursement
Date of that Tranche.

 

		4.02	Voluntary prepayment

 

		4.02A	Prepayment option

 

Subject to Articles 4.02B, 4.02C
and 4.04, the Borrower may at any time after the first anniversary of the relevant Disbursement Date prepay all or part of any
Tranche, together with accrued interest (including Deferred Interest and Performance Participation Interest) and indemnities if
any, upon giving a Prepayment Request with at least 1 (one) month’s prior notice specifying (i) the Prepayment Amount, (ii)
the Prepayment Date, (iii) if applicable, the choice of application method of the Prepayment amount in line with Article 5.05(c)(i);
and (iv) the contract number (“Fl nr”) mentioned on the cover page of this Contract.

 

Subject to Article 4.02C the Prepayment
Request shall be binding and irrevocable.

 

		4.02B	Prepayment Fee

 

Upon prepayment of all or part of
any Tranche under Article 4.02 or cancellation under Article 1.05C, the Borrower shall pay a fee, for each Tranche, as follows:

 

		(a)	a fee of 6% of the Prepayment Amount if the Prepayment Date is on or after the first anniversary
of the relevant Disbursement Date but before the second anniversary of such Disbursement Date; or

 

    	25

     

    

 

		(b)	a fee of 3% of the Prepayment Amount if the Prepayment Date is on or after the second anniversary
of the relevant Disbursement Date but before the third anniversary of such Disbursement Date; or

 

		(c)	a fee of 1.5% of the Prepayment Amount if the Prepayment Date is on or after the third anniversary
of the relevant Disbursement Date but before the fourth anniversary of such Disbursement Date,

 

with each fee being payable on the
applicable Prepayment Date.

 

For the avoidance of doubt, no such
fee shall be payable if the Prepayment Date is on or after the fourth anniversary of the relevant Disbursement Date.

 

		4.02C	Prepayment mechanics

 

Upon presentation by the Borrower
to the Bank of a Prepayment Request, the Bank shall issue a Prepayment Notice to the Borrower, not later than 15 (fifteen) days
prior to the Prepayment Date. The Prepayment Notice shalt specify the Prepayment Amount, the accrued interest due thereon (including
any Deferred Interest and Performance Participation Interest), the Prepayment Fee payable under Article 4.02B or, as the case may
be, that no fee is due, the method of application of the Prepayment Amount and the Acceptance Deadline.

 

If the Borrower accepts the Prepayment
Notice no later than by the Acceptance Deadline, it shall effect the prepayment. In any other case, the Borrower may not effect
the prepayment.

 

The Borrower shall accompany the
prepayment by the payment of accrued interest (including Deferred Interest and Performance Participation Interest) and fee, if
any, due on the Prepayment Amount, as specified in the Prepayment Notice.

 

		4.03	Compulsory prepayment

 

		4.03A	Prepayment Events

 

4.03A(1) PROJECT COST REDUCTION

 

If the total cost of the Project
falls below the figure stated in Recital (2) so that the amount of the Credit exceeds 50% (fifty per cent) of such total cost,
the Bank may forthwith, by notice to the Borrower, cancel the undisbursed portion of the Credit and/or demand prepayment of the
Loan up to the amount by which the Credit exceeds 50% (fifty per cent) of the total cost of the Project. The Borrower shall effect
payment of the amount demanded on the date specified by the Bank, such date being a date falling not less than 30 (thirty) days
from the date of the demand.

 

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4.03A(2) PARI PASSU TO NON-EIB FINANCING

 

If the Borrower (or any other member
of the Group) or a Guarantor voluntarily prepays (for the avoidance of doubt, prepayment shall include a repurchase, redemption
or cancellation where applicable) a part or the whole of any Non-EIB Financing and:

 

		(a)	such prepayment is not made within a revolving credit facility (save for the cancellation of the
revolving credit facility); or

 

		(b)	such prepayment is not made out of the proceeds of a loan or other indebtedness having a term at
least equal to the unexpired term of the Non-EIB Financing prepaid;

 

the Bank may, by notice to the Borrower,
cancel the undisbursed portion of the Credit and demand prepayment of the Loan. The proportion of the Loan that the Bank may require
to be prepaid shall be the same as the proportion that the prepaid amount of the Non-EIB Financing bears to the aggregate outstanding
amount of all Non-EIB Financing.

 

The Borrower shall effect payment
of the amount demanded on the date specified by the Bank, such date being a date falling not less than 30 (thirty) days from the
date of the demand.

 

This Article 4.03(A)(2) shall not
apply to a voluntary prepayment by the Borrower of the following:

 

		(a)	a prepayment of an outstanding option bond due 1 January 2018 (as set out under Schedule G (Existing
Indebtedness));

 

		(b)	a prepayment of a convertible bond due 1 January 2021 (as set out under Schedule G (Existing Indebtedness))
in accordance with the terms of the “Early Redemption for reasons of minimal outstanding Principal Amount” provision
listed under the relevant part of the column entitled “De-minimis repayment provisions” of Schedule G (Existing Indebtedness));
and

 

		(c)	a prepayment of a convertible bond due 1 January 2022 (as set out under Schedule G (Existing Indebtedness))
in accordance with the terms of the “Early Redemption for reasons of minimal outstanding Principal Amount” provision
listed under the relevant part of the column entitled “De-minimis repayment provisions” of Schedule G (Existing Indebtedness)).

 

For the purposes of this Article,
“Non-EIB Financing” includes any loan (save for the Loan and any other direct loans from the Bank to the Borrower
(or any other member of the Group)) or a Guarantor, credit bond or other form of financial indebtedness or any obligation for the
payment or repayment of money originally granted to the Borrower (or any other member of the Group) or a Guarantor for a term of
more than 3 (three) years.

 

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4.03A(3) CHANGE OF CONTROL

 

The Borrower shall promptly inform
the Bank if a Change-of-Control Event has occurred or is likely to occur in respect of itself or any Guarantor. At any time after
the occurrence of a Change-of-Control Event, the Bank may, try notice to the Borrower, cancel the undisbursed portion of the Credit
and demand prepayment of the Loan, together with accrued interest and all other amounts accrued or outstanding under this Contract.

 

In addition, if the Borrower has
informed the Bank that a Change-of-Control Event is about to occur, or if the Bank has reasonable cause to believe that a Change-of-Control
Event is about to occur, the Bank may request that the Borrower consult with it. Such consultation shall take place within 30 (thirty)
days from the date of the Bank’s request. After the earlier of (a) the lapse of 30 (thirty) days from the date of such request
for consultation, or (b) at any time thereafter, upon the occurrence of the anticipated Change-of-Control Event the Bank may, by
notice to the Borrower, cancel the undisbursed portion of the Credit and demand prepayment of the Loan, together with accrued interest
and all other amounts accrued or outstanding under this Contract.

 

The Borrower shall effect payment
of the amount demanded on the date specified by the Bank, such date being a date failing not less than 30 (thirty) days from the
date of the demand.

 

For the purposes of this Article

 

		(a)	a “Change-of-Control Event” occurs if any person or group of persons acting
in concert gains control of the Borrower or of the entity directly or ultimately controlling the Borrower;

 

		(b)	“acting in concert” means acting together pursuant to an agreement or understanding
(whether formal or informal): and

 

		(c)	“control” means the power to direct the management and policies of an entity,
whether through the ownership of voting capital, by contract or otherwise.

 

4.03A(4) CHANGE OF LAW

 

The Borrower shall promptly inform
the Bank if a Change-of-Law Event has occurred or is likely to occur. In such case, or if the Bank has reasonable cause to believe
that a Change-of-Law Event has occurred or is about to occur, the Bank may request that the Borrower consult with it. Such consultation
shall take place within 30 (thirty) days from the date of the Bank’s request. If, after the lapse of 30 (thirty) days from
the date of such request for consultation the Bank is of the opinion that the effects of the Change-of-Law Event cannot be mitigated
to its satisfaction, the Bank may by notice to the Borrower, cancel the undisbursed portion of the Credit and demand prepayment
of the Loan, together with accrued interest and all other amounts accrued or outstanding under this Contract.

 

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The Borrower shall effect payment
of the amount demanded on the date specified by the Bank, such date being a date falling not less than 30 (thirty) days from the
date of the demand.

 

For the purposes of this Article
“Change-of-Law Event” means the enactment, promulgation, execution or ratification of or any change in or amendment
to any law, rule or regulation (or in the application or official interpretation of any law, rule or regulation) that occurs after
the date of this Contract and which, in the opinion of the Bank, would materially impair the Borrower’s or Guarantor’s
ability to perform its obligations under this Contract or any guarantee provided in respect of this Contract.

 

4.03A(5) ILLEGALITY

 

If it becomes unlawful in any applicable
jurisdiction for the Bank to perform any of its obligations as contemplated in this Contract or to fund or maintain the Loan, the
Bank shall promptly notify the Borrower and may immediately (i) suspend or cancel the undisbursed portion of the Credit and/or
(ii) demand prepayment of the Loan, together with accrued interest and all other amounts accrued or outstanding under this Contract
on the date indicated by the Bank in its notice to the Borrower.

 

		4.03B	Prepayment mechanics

 

Any sum demanded by the Bank pursuant
to Article 4.03A together with any interest or other amounts accrued or outstanding under this Contract including, without limitation,
any fee or indemnity due under Article 4.03C and Article 4.04, shall be paid on the date indicated by the Bank in its notice of
demand.

 

		4.03C	Prepayment fee

 

In the case of an indemnifiable Prepayment
Event, the fee, if any, shall be determined in accordance with Article 4.02B.

 

		4.04	General

 

A repaid or prepaid amount may not
be reborrowed. This Article 4 shall not prejudice Article 10.

 

If the Borrower prepays a Tranche
on a date other than a relevant Payment Date, the Borrower shall indemnify the Bank in such amount as the Bank shall certify is
required to compensate it for receipt of funds otherwise than on a relevant Payment Date.

 

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ARTICLE
5

 

Payments

 

		5.01	Day count convention

 

Any amount due by way of interest,
indemnity or fee from the Borrower under this Contract, and calculated in respect of a fraction of a year, shall be determined
on the following respective conventions in respect of interest and indemnities due under a Tranche, a year of 360 (three hundred
and sixty) days and the number of days elapsed.

 

		5.02	Time and place of payment

 

Unless otherwise specified in this
Contract or in the Bank’s demand, all sums other than sums of interest, indemnity and principal are payable within 15 (fifteen)
days of the Borrower’s receipt of the Bank’s demand.

 

Each sum payable by the Borrower
under this Contract shall be paid to the relevant account notified by the Bank to the Borrower. The Bank shall notify the account
not less than 15 (fifteen) days before the due date for the first payment by the Borrower and shall notify any change of account
not less than 15 (fifteen) days before the date of the first payment to which the change applies. This period of notice does not
apply in the case of payment under Article 10.

 

The Borrower shall indicate in each
payment made hereunder the contract number (“Fl nr”) found on the cover page of this Contract.

 

A sum due from the Borrower shall
be deemed paid when the Bank receives it.

 

Any disbursements by and payments
to the Bank under this Contract shall be made using account(s) acceptable to the Bank. For the avoidance of doubt, any account
in the name of the Borrower held with a duly authorised financial institution in the jurisdiction where the Borrower is incorporated
or where the Project is undertaken is deemed acceptable to the Bank.

 

		5.03	No set-off by the Borrower

 

All payments to be made by the Borrower
under this Contract shall be calculated and be made without (and free and clear of any deduction for) set-off or counterclaim.

 

		5.04	Disruption to Payment Systems

 

If either the Bank determines (in
its discretion) that a Disruption Event has occurred or the Bank is notified by the Borrower that a Disruption Event has occurred:

 

		(a)	the Bank may, and shall if requested to do so by the Borrower, consult with the Borrower with a
view to agreeing with the Borrower such changes to the operation or administration of this Contract as the Bank may deem necessary
in the circumstances;

 

		(b)	the Bank shall not be obliged to consult with the Borrower in relation to any changes mentioned
in paragraph (a) if, in its opinion, it is not practicable to do so in the circumstances and, in any event, shall have no obligation
to agree to such changes; and

 

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		(c)	the Bank shall not be liable for any damages, costs or losses whatsoever arising as a result of
a Disruption Event or for taking or not taking any action pursuant to or in connection with this Article 5.04.

 

		5.05	Application of sums received

 

		(a)	General

 

Sums received from the Borrower shall
only discharge its payment obligations if received in accordance with the terms of this Contract.

 

		(b)	Partial payments

 

If the Bank receives a payment that
is insufficient to discharge all the amounts then due and payable by the Borrower under this Contract, the Bank shall apply that
payment in or towards payment of

 

(i)         first,
any unpaid fees, costs, indemnities and expenses due under this Contract;

 

(ii)        secondly,
any accrued interest due but unpaid under this Contract,

 

(iii)       thirdly,
any principal due but unpaid under this Contract; and

 

(iv)       fourthly,
any other sum due but unpaid under this Contract.

 

		(c)	Allocation of sums related to Tranches

 

(i)         The
Bank may apply sums received between Tranches at its discretion

 

(ii)        In
case of receipt of sums which cannot be identified as applicable to a specific Tranche, and on which there is no agreement between
the Bank and the Borrower on their application, the Bank may apply these between Tranches at its discretion.

 

ARTICLE
6

Borrower undertakings and representations

 

The undertakings in this Article
6 remain in force from the date of this Contract for so long as any amount is outstanding under this Contract or the Credit is
in force.

 

		A.	Project undertakings

 

		6.01	Use of Loan and availability of other funds

 

The Borrower shall use all amounts
borrowed by it under the Loan for the execution of the Project.

 

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The Borrower shall ensure that it
has available to it the other funds listed in Recital (2) and that such funds are expended, to the extent required, on the financing
of the Project.

 

		6.02	Completion of Project

 

The Borrower shall or shall procure
that the Project is carried out in accordance with the Technical Description as may be modified from time to time with the approval
of the Bank, and complete it by the final date specified therein.

 

		6.03	Increased cost of Project

 

If the total cost of the Project
exceeds the estimated figure set out in Recital (2), the Borrower shall obtain the finance to fund the excess cost without recourse
to the Bank, so as to enable the Project to be completed in accordance with the Technical Description. The plans for funding the
excess cost shall be communicated to the Bank without delay.

 

		6.04	Procurement procedure

 

The Borrower shall purchase equipment,
secure services and order works for the Project (a) in so far as they apply to it or to the Project, in accordance with European
Union law in general and in particular with the relevant European Union Directives and (b) in so far as European Union Directives
do not apply, by procurement procedures which, to the satisfaction of the Bank, respect the criteria of economy and efficiency
and, in case of public contracts, the principles of transparency, equal treatment and non-discrimination on the basis of nationality.

 

		6.05	Continuing Project undertakings

 

The Borrower shall:

 

		(a)	Maintenance: maintain, repair, overhaul and renew all project assets as required to keep
such assets in good working order;

 

		(b)	Project assets: unless the Bank shall have given its prior consent in writing retain title
to and possession of all or substantially all the project assets or, as appropriate, replace and renew such assets and maintain
the Project in substantially continuous operation in accordance with its original purpose; provided that the Bank may withhold
its consent only where the proposed action would prejudice the Bank’s interests as lender to the Borrower or would render
the Project ineligible for financing by the Bank under its statute or under Article 309 of the Treaty on the Functioning of the
European Union;

 

		(c)	Insurance: insure all works and property forming part of the Project with first class insurance
companies in accordance with Good Industry Practice;

 

		(d)	Rights and Permits: maintain in force all rights of way or use and all Authorisations necessary
for the execution and operation of the Project; and

 

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		(e)	Environment:

 

(i)         implement
and operate the Project in compliance with Environmental Law;

 

(ii)        obtain
and maintain requisite Environmental Approvals for the Project; and

 

(iii)       comply
with any such Environmental Approvals;

 

On becoming aware of any breach of
this Article 6.05(e).

 

		A.	the Borrower shall promptly notify the Bank;

 

		B.	the Borrower and the Bank will consult for 15 Business Days from the date of notification (the
consultation period) with a view to agreeing the manner in which the breach should be rectified; and

 

		C.	the Borrower will use its best endeavours to comply with the provisions set out in paragraphs (i)
to (iii) (inclusive) above and shall in any event remedy the breach within 30 Business Days of the end of the consultation period.

 

		(f)	Integrity: take, within a reasonable timeframe, appropriate measures in respect of any member
of its management bodies who has been convicted by a final and irrevocable court ruling of an Illegal Activity perpetrated in the
course of the exercise of his/her professional duties, in order to ensure that such member is excluded from any Borrowers activity
in relation to the Loan or the Project;

 

		(g)	Integrity Audit Rights: ensure that all contracts under the Project to be procured after
the date of signature of this Contract in accordance with European Union Directives on procurement provide for;

 

(i)         the
requirement that the relevant contractor promptly informs the Bank of a genuine allegation, complaint or information with regard
to Illegal Activities related to the Project;

 

(ii)        the
requirement that the relevant contractor keeps books and records of all financial transactions and expenditures in connection with
the Project; and

 

(iii)       the
Bank’s right, in relation to an alleged Illegal Activity, to review the books and records of the relevant contractor in relation
to the Project and to take copies of documents to the extent permitted by law.

 

B.       General
undertakings

 

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		6.06	Disposal of assets

 

The Borrower shall not, and shall
procure that no other member of the Group will, either in a single transaction or in a series of transactions whether related or
not and whether voluntarily or involuntarily dispose of all or any part of the Borrowers or ether Group member’s business,
undertaking or assets, including any Intellectual Property Rights or any shares or securities of any entity or business undertaking,
unless such disposal is a Permitted Disposal.

 

For the purposes of this Article,
“dispose” and “disposal” includes any act effecting sale, transfer, lease or other disposal.

 

		6.07	Compliance with laws, Hedging, US regulations, Sanctions and Anti-Money Laundering

 

		6.07A	Compliance with laws

 

The Borrower shall, and shall procure
that each other member of the Group (including the Guarantors) shall, comply in all respects with all laws and regulations to which
it or the Project is subject.

 

		6.07B	Hedging

 

The Borrower shall not, and shalt
procure that each other member of the Group shall not enter into any derivative transaction other than non-speculative currency
hedging transactions on market standard terms in connection with Group’s business in the US.

 

		6.07C	US Governmental Regulation

 

		(a)	The Borrower shall not, and shall procure that each member of the Group and any of their respective
Subsidiaries shall not, be subject at any time to regulation under the US Federal Power Act or the US Interstate Commerce Act or
under any other US federal or state statute or regulation which may limit its ability to incur or guarantee indebtedness or which
may otherwise render all or any portion of their respective obligations under the Contract or any Guarantee Agreement unenforceable.

 

		(b)	The Borrower shall not at any time, and shall procure that each member of the Group and any of
their respective Subsidiaries shall not any time, be an “investment company” or a company “controlled”
by an “investment company’ as defined in, or subject to regulation under, the US Investment Company Act of 1940, as
amended.

 

		6.07D	US Securities Activities and Margin Regulations

 

		(a)	The Borrower shall not at any time, and shall procure that each member of the Group and any of
their respective Subsidiaries shall not at any time, engage principally, or as one of its important activities, in the business
of purchasing or carrying Margin Stock or extending credit for the purpose of purchasing or carrying any Margin Stock.

 

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		(b)	No part of the proceeds of any of the Loans will be used for any purpose which violates the provisions
of Regulations T, U or X issued by the Board of Governors of the Federal Reserve System.

 

		6.07E	Sanctions

 

The Borrower shall not, and shall
procure that each member of the Group and any of their respective Subsidiaries shall not, nor any of their respective Subsidiaries,
any directors, officers, employees, agents, Affiliates of each of the foregoing:

 

		(a)	be a Restricted Party or engage in or be engaged in any transaction or conduct that could result
in it becoming a Restricted Party;

 

		(b)	be subject to any claim, proceeding, formal notice or investigation with respect to Sanctions;

 

		(c)	engage in or be engaged in any transaction that evades or avoids, or has the purpose of evading
or avoiding, or breaches or attempts to breach, directly or indirectly, any Sanctions applicable to it or

 

		(d)	engage or be engaged, directly or indirectly, in any trade, business or other activities with or
for the benefit of any Restricted Party.

 

		6.07F	Anti-Money Laundering

 

The Borrower shall at all times,
and shall procure that each member of the Group and any of their respective Subsidiaries shall at all times be in compliance with
the (a) Trading with the Enemy Act, as amended, and each of the foreign assets control regulations of the United States Treasury
Department (31 CFR, Subtitle B, Chapter V, as amended) and any other enabling legislation or executive order relating thereto,
and (b) the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of
2001 (Title III of Pub. L. 107-56 (signed into law October 26, 2001)), as amended. No part of the proceeds of any Loan will be
used, directly or indirectly, for any payments to any governmental official or employee, political party, official of a political
party, candidate for political office, or anyone else acting in an official capacity, in order to obtain, retain or direct business
or obtain any improper advantage, in violation of the United States Foreign Corrupt Practices Act of 1977, as amended.

 

		6.08	Change in business

 

The Borrower shall procure that no
substantial change is made to the general nature business of the Borrower or the Group as a whole from that carried on at the date
of this Contract.

 

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		6.09	Merger

 

The Borrower shall not, and shall
ensure that no other member of the Group shall, enter into any amalgamation, demerger, merger or corporate reconstruction unless:

 

		(a)	with the prior written consent of the Bank; or

 

		(b)	such amalgamation, demerger, merger or corporate reconstruction is a Permitted Merger.

 

		6.10	Ownership

 

		(a)	The Borrower shall maintain not less than 51% (fifty one per cent) of the share capital, directly
or indirectly, of each of its Material Subsidiaries, unless a prior written consent of the Bank is received by the Borrower.

 

		(b)	The Borrower shall in aggregate maintain not less than 100% (one hundred per cent) of the share
capital, directly or indirectly, of each Guarantor, unless prior written consent of the Bank is received by the Borrower.

 

		(c)	The Borrower shall immediately notify the Bank in the event of a new entity becoming a majority
owned subsidiary (meaning ownership of 50.1% (fifty point one per cent) or more) through any means, including but not limited to
acquisition, creation and spin-off.

 

		(d)	The undertakings in paragraphs (a) and (h) above shall be calculated in accordance with GARP as
applied by the Borrower on the date of this Contract and as GAAP is amended from time to time and tested annually.

 

		6.11	Books and records

 

The Borrower shalt ensure that it
has kept and will continue to keep proper books and records of account, in which full and correct entries shall be made of all
financial transactions and the assets and business of the Borrower, including expenditures in connection with the Project, in accordance
with GAAP as in effect from time to time.

 

		6.12	Visibility

 

The Borrower agrees to cooperate
with the Bank to ensure that any press releases or publications made by the Borrower regarding the financing and the Project include
an appropriate acknowledgment of the financial support provided by the Bank with the backing of the European Union through EFSI.

 

		6.13	Acquisitions

 

The Borrower shall not, and shall
ensure that no other member of the Group shall invest in or acquire any entity or a business going concern or an undertaking (whether
whole or substantially the whole of the assets or business), or any division or operating unit thereof, or any shares or securities
of any entity or a business or undertaking (or in each case, any interest in any of them) (or agree to any of the foregoing), unless:

 

    	36

     

    

 

		(a)	with the prior written consent of the Bank; or

 

		(b)	such acquisition is a Permitted Acquisition.

 

		6.14	Indebtedness

 

The Borrower shall not, and shalt
ensure that no other member of the Group shall incur any Indebtedness, unless:

 

		(a)	with the prior written consent of the Bank; or

 

		(b)	such Indebtedness is Permitted Indebtedness.

 

		6.15	Guarantees

 

The Borrower shall not, and shall
procure that no other member of the Group will issue or allow to remain outstanding any guarantees in respect of any liability
or obligation of any person unless:

 

		(a)	with the prior written consent of the Bank; or

 

		(b)	such guarantees are Permitted Guarantees.

 

		6.16	Permitted Payments

 

The Borrower shall not, and shall
procure that no other member of the Group shall declare or distribute dividends, or make any payment in respect of any intercompany
loan, or return or purchase shares unless:

 

		(a)	with the prior written consent of the Bank;

 

		(b)	such payments are Permitted Payments;

 

		(c)	such distribution of dividends is made from one Obligor to another Obligor; or

 

		(d)	it relates to the solvent liquidation or reorganisation of any member of the Group which is not
an Obligor so long as any payments or assets distributed as a result of such liquidation or reorganisation are distributed to other
members of the Group.

 

		6.17	Intellectual Property Rights

 

The Borrower shall, and shall procure
that each other member of the Group shall, (i) safeguard and maintain its rights with respect to the Intellectual Property
Rights required for the implementation of the Project in accordance with this Contract, including complying with all material contractual
provisions and that the implementation of the Project in accordance with this Contract will not result in the infringement of the
rights of any person with regard to the Intellectual Property Rights and (ii) ensure that any Intellectual Property Rights required
for the implementation of the Project will be owned by or licensed to the Borrower, and where such Intellectual Property Rights
which are owned by a member of the Group are capable of registration, are registered to that Obligor.

 

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		6.18	Maintenance of Status

 

The Borrower shall, and shall procure
that each other member of the Group shall, remain duly incorporated and/or organised and validly existing as a corporate or other
legal entity (as applicable) with limited liability under the jurisdiction in which it is incorporated or organised (and with respect
to any US Guarantor, is in good standing under its jurisdiction of incorporation or organisation or formation) that it will have
no centre of main interests, permanent establishment or place of business outside the jurisdiction in which it is incorporated,
and that it will continue to have the power to carry on its business as it is now being conducted and continue to own its property
and other assets.

 

		6.19	Eligibility Prerequisites

 

The Borrower shall, and shall procure
that each other member of the Group shall, satisfy the eligibility prerequisites, as amended from time to time, that are required
to be satisfied in order to obtain finance under the joint initiative between the Bank and the European Commission as set out in
Recital (8).

 

		6.20	Illicit origin

 

The Borrower shall, and shall procure
that each other member of the Group shall, promptly inform the Bank if at any time it becomes aware of any funds that are invested
in the Project by the Borrower or by any other member of the Group that are of illicit origin, including products of money laundering
or linked to the financing of terrorism.

 

		6.21	General Representations and Warranties

 

The Borrower represents and warrants
to the Bank that:

 

		(a)	it is duly incorporated and validly existing as a public listed company under the laws of Germany
and it has power to carry on its business as it is now being conducted and to own its property and other assets;

 

		(b)	it has the power to execute, deliver and perform its obligations under this Contract and all necessary
corporate, shareholder and other action has been taken to authorise the execution, delivery and performance of the same by it;

 

		(c)	this Contract constitutes its legally valid, binding and enforceable obligations;

 

		(d)	the execution and delivery of, the performance of its obligations under and compliance with the
provisions of this Contract do not and will not

 

(i)         contravene
or conflict with any applicable law, statute, rule or regulation, or any judgement, decree or permit to which it is subject;

 

    	38

     

    

 

(ii)        contravene
or conflict with any agreement or other instrument binding upon it which might reasonably be expected to have a material adverse
effect on its ability to perform its obligations under this Contract; and

 

(iii)       contravene
or conflict with any provision of its articles of association (Satzung) or the rules of procedure of the management board
(Geschäftsordnung), supervisory board (Aufsichtsrat) and/or advisory board (Beirat), if any;

 

		(e)	the latest available consolidated audited accounts of the Borrower and if applicable each Guarantor
have been prepared on a basis consistent with previous years and have been approved by its auditors as representing a true and
fair view of the results of its operations for that year and accurately disclose or reserve against all the liabilities (actual
or contingent) of the Borrower;

 

		(f)	there has been no Material Adverse Change since 9 November 2016;

 

		(g)	no event or circumstance which constitutes an Event of Default has occurred and is continuing unremedied
or unwaived;

 

		(h)	no litigation, arbitration, administrative proceedings or investigation is current or to its knowledge
is threatened or pending before any court, arbitral body or agency which has resulted, or if adversely determined is reasonably
likely to result in, a Material Adverse Change, nor is there subsisting against it or any of its subsidiaries any unsatisfied judgement
or award;

 

		(i)	it has obtained all necessary Authorisations in connection with this Contract and in order to lawfully
comply with its obligations hereunder, and the Project and all such Authorisations are in full force and effect and admissible
in evidence;

 

		(j)	its payment obligations under this Contract rank not less than pari passu in right of payment with
all other present and future unsecured and unsubordinated obligations under any of its debt instruments except for obligations
mandatorily preferred by law applying to companies generally;

 

		(k)	it is in compliance with Article 6.05(e) and to the best of its knowledge and belief (having made
due and careful enquiry) no Environmental Claim has been commenced or is threatened against it;

 

		(l)	no financial covenants have been concluded with any other creditor of the Borrower other than the
covenants disclosed to the Bank under Schedule G (Existing Indebtedness);

 

		(m)	the Group structure chart delivered in accordance with Article 1 .04A(m) is true, complete and
accurate in all material respects and represents the complete corporate structure of the Group as at the date of this Contract;

 

    	39

     

    

 

		(n)	it is not required to make any deduction for or on account of any Tax from any payment it may make
under this Contract;

 

		(o)	to the best of its knowledge, no funds invested in the Project by the Borrower or by its controlling
entities or by another member of the Group are of illicit origin, including products of money laundering or linked to the financing
of terrorism. The Borrower shall promptly inform the Bank if at any time it becomes aware of the illicit origin of any such funds;

 

		(p)	all Tax returns required to have been filed by it or on its behalf under any applicable law have
been filed when due and contain the information required by applicable law to be contained in them;

 

		(q)	it has paid when due all Taxes payable by it under applicable law except to the extent that it
is contesting payment in good faith and by appropriate means;

 

		(r)	with respect to Taxes which have not fallen due or which it is contesting, it is maintaining reserves
adequate for their payment and in accordance, where applicable, with GAAP;

 

		(s)	the accounting reference date of the Borrower is 31 December (the “Accounting Reference Date);

 

		(t)	under the laws of Germany it is not necessary that this Contract be filed, recorded or enrolled
with any court or other authority in Germany or that any stamp, registration or similar tax be paid on or in relation to this Contract,
or the transactions contemplated by this Contract;

 

		(u)	any factual information provided by the Borrower and any member of the Group for the purposes of
entering into this Contract and any related documentation was true and accurate in all material respects as at the date it was
provided or as at the date (if any) at which it is stated;

 

		(v)	the Borrower has no Indebtedness outstanding other than the Permitted Indebtedness;

 

		(w)	neither it, nor any of its assets, is entitled to immunity from suit, execution, attachment or
other legal process;

 

		(x)	it has done, or will have done by the appropriate time for the Project to be implemented in accordance
with this Contract, all that is reasonably required to obtain, safeguard and maintain its rights with respect to the Intellectual
Property Rights required for the implementation of the Project in accordance with this Contract including complying with all contractual
provisions;

 

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		(y)	to the best of its knowledge and belief, having made reasonable enquiry the implementation of the
Project in accordance with this Contract, will not result in the infringement of the rights of any person with regard to the Intellectual
Property Rights;

 

		(z)	the pension schemes for the time being operated by the Borrower (if any) are funded in accordance
with their rules and to the extent required by law or otherwise comply with the requirements of any law applicable in the jurisdiction
in which the relevant pension scheme is maintained;

 

		(aa)	it is in compliance with all applicable European Union and German legislation, including any applicable
anti-corruption legislation;

 

		(bb)	other than as set out in the Group structure chart, the Borrower owns no other equity and/or shares
in any other business entity;

 

		(cc)	it has acquainted itself with this Contract and determined that it is in its best commercial interest
and consistent with its purpose of operations to enter into this Contract;

 

		(dd)	no member of the Group is dormant (other than Biofrontera Neuroscience GmbH and Biofrontera Development
GmbH);

 

		(ee)	as on the date of this Contract, (i) information provided by the Borrower under the Application
Form is complete, accurate and true in all respects; and (ii) the Borrower (and the Group as a whole where relevant) complies with
the eligibility and exclusion criteria to be the beneficiary of the Credit as such criteria are listed in the Application Form;

 

		(ff)	it is in compliance with all undertakings under this Contract;

 

		(gg)	it is not engaged in any Illegal Activities and to the best of its knowledge no Illegal Activities
have occurred in connection with the Project;

 

		(hh)	the choice of the laws of England and Wales as the governing law of this Contract will be recognised
and enforced in its jurisdiction of incorporation and any judgement obtained in England and Wales in relation to this Contract
will be recognised and enforced in its jurisdiction of incorporation;

 

		(ii)	it has not disclosed any information (whether confidential or otherwise) to the Bank, prior to
the date of this Contract and at any time from the date of this Contract, which constitutes inside information within the meaning
of Article 7 of the Market Abuse Regulation;

 

		(jj)	it, the Guarantors and any other member of the Group have not issued or do not have in issue “financial
instruments” which fall within the scope of Article 2 of the Market Abuse Regulations (Regulation 596/2014) save for the
following:

 

		(A)	its shares under ISINs DE0006046113 and DE000A2E41E4; and

 

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		(B)	the bonds referred to under Schedule G (Existing Indebtedness); and

 

		(kk)	it is not, nor to its knowledge any other member of the Group or any of their respective Subsidiaries
and any of directors, officers, employees, agents of any of the foregoing is not:

 

		(A)	a Restricted Party or engaging in or engaged in any transaction or conduct that could result in
it becoming a Restricted Party;

 

		(B)	or never has been subject to any claim, proceeding, formal notice or investigation with respect
to Sanctions;

 

		(C)	engaging or engaged in any transaction that evades or avoids, or has the purpose of evading or
avoiding, or breaches or attempts to breach, directly or indirectly, any Sanctions applicable to it, or

 

		(D)	engaged or engaging, directly or indirectly, in any trade, business or other activities with or
for the benefit of any Restricted Party.

 

The representations and warranties
set out above shall survive the execution of this Contract and are, with the exception of the representations set out in paragraph
(f), (m), (n), (t), (ee), (gg) and (kk) above, deemed repeated on each Disbursement Acceptance, Disbursement Date and on each Payment
Date by reference to the facts and circumstances then existing.

 

ARTICLE
7

 

Security

 

The undertakings in this Article 7 remain in
force from the date of this Contract for so long as any amount is outstanding under this Contract or the Credit is in force.

 

		7.01	Guarantee

 

		(a)	The obligations of the Bank under this Contract are conditional upon the prior execution and delivery
to the Bank of the Guarantee Agreement in form and substance satisfactory to it. The Borrower hereby acknowledges and consents
to the terms of the Guarantee Agreement.

 

		(b)	The Borrower shall procure that as soon as any other member of the Group becomes a Material Subsidiary
(other than in the case of a Material Subsidiary incorporated in France), the Borrower shall promptly inform the Bank and procure
that such member of the Group shalt (to the extent this is permitted under applicable mandatory corporate law, assuming that all
relevant corporate approvals have been obtained) shall:

 

(i)       enter
into a Guarantee Agreement duly executed by it;

 

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(ii)        provide
the Bank with a certified copy of its resolution of the competent body (board of directors or general meeting of shareholders or
other management body) duly authorising the execution of the Guarantee Agreement and duly authorising the person or persons signing
the Guarantee Agreement on its behalf, together with the specimen signature of each such person or persons.

 

(iii)       provide
the Bank with evidence that the Material Subsidiary has obtained all necessary Authorisations required in connection with the Guarantee
Agreement;

 

(iv)       provide
the Bank with a legal opinion of a reputable law firm in the jurisdiction of incorporation of such Material Subsidiary, addressed
to the Bank in form and substance satisfactory to the Bank, on the valid existence of the Guarantor, the authority and capacity
of the Guarantor to enter into the Guarantee Agreement and on the due execution and choice of law of the Guarantee Agreement;

 

(v)        evidence
of the constitutional documents of the Guarantor;

 

(vi)       a
certificate of an authorised signatory of the Guarantor certifying that each copy document relating to it specified in this Article
7.01 is correct, complete and in full force and effect as at a date no earlier than the date of the Guarantee Agreement;

 

(vii)      evidence
of appointment of the Guarantor’s agent of service;

 

(viii)     in
the case of a Guarantor that is a US Guarantor, a certificate as to the existence and good standing of such Guarantor from the
appropriate governmental authorities in such Guarantors jurisdiction of organisation; and

 

(ix)       a
solvency certificate signed by the chief financial officer, chief accounting officer or other similar officer of a Guarantor that
is a US Guarantor, each in form and substance satisfactory to the Bank.

 

		7.02	Negative pledqe

 

		(a)	The Borrower shall not (and the Borrower shall ensure that no other member of the Group will) create
or permit to subsist any Security over any of its assets.

 

For the purposes of this Article 7.02,
the term Security shall also include any arrangement or transaction on assets or receivables or money (such as the sale, transfer
or other disposal of assets on terms whereby they are or may be leased to or re-acquired by the Borrower or any other member of
the Group, the sale, transfer or otherwise dispose of any receivables on recourse terms or any arrangement under which money or
the benefit of a bank account or other account may be applied or set off or any preferential arrangement having a similar effect)
in circumstances where the arrangement or transaction is entered into primarily as a method of raising credit or of financing the
acquisition of an asset.

 

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		(b)	Paragraph (a) above does not apply to any Security, listed below:

 

(i)          any
netting or set-off arrangement entered into by any member of the Group in the ordinary course of its banking arrangements for the
purpose of netting debit and credit balances;

 

(ii)         any
lien arising by operation of law and in the ordinary course of trading;

 

(iii)        any
Security over or affecting any asset acquired by a member of the Group after the date of this Contract if:

 

		A.	the Security was not created in contemplation of the acquisition of that asset by a member of the
Group;

 

		B.	the principal amount secured has not been increased in contemplation of or since the acquisition
of that asset by a member of the Group; and

 

		C.	the Security is removed or discharged within 3 (three) months of the date of acquisition of such
asset;

 

(iv)        any
Security over or affecting any asset of any company which becomes a member of the Group after the date of this Contract, where
the Security is created prior to the date on which that company becomes a member of the Group, if:

 

		A.	the Security was not created in contemplation of the acquisition of that company;

 

		B.	the principal amount secured has not increased in contemplation of or since the acquisition of
that company; and

 

		C.	the Security is removed or discharged within 3 (three) months of that company becoming a member
of the Group;

 

(v)          any
Security arising under any retention of title, hire purchase or conditional sale arrangement or arrangements having similar effect
in respect of goods supplied to a member of the Group in the ordinary course of trading and on the suppliers standard or usual
terms and not arising as a result of any default or omission by any member of the Group; or

 

(vi)         any
Security securing indebtedness the principal amount of which (when aggregated with the principal amount of any other indebtedness
which has the benefit of Security given by any member of the Group other than any permitted under paragraphs (i) to (v) above)
does not exceed EUR 500,000 (five hundred thousand euros) (or its equivalent in another currency or currencies).

 

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		7.03	Pari passu ranking

 

The Borrower shall ensure that its
payment obligations under this Contract rank, and will rank not less than pari passu in right of payment with ail other present
and future unsecured and unsubordinated obligations under any of its debt instruments except for obligations mandatorily preferred
by law applying to companies generally.

 

		7.04	Clauses by inclusion

 

If the Borrower or any other member
of the Group concludes with any other financial creditor a financing agreement that includes a loss-of-rating clause or a covenant
or other provision regarding its financial ratios, if applicable, that is not provided for in this Contract or is more favourable
to the relevant financial creditor than any equivalent provision of this Contract is to the Bank, the Borrower shall promptly inform
the Bank and shall provide a copy of the more favourable provision to the Bank. The Bank may request that the Borrower promptly
executes an agreement to amend this Contract so as to provide for an equivalent provision in favour of the Bank.

 

		7.05	Bond de-minimis repayment provisions

 

The Borrower may only voluntarily
prepay the convertible bond due 1 January 2021 (as set out under Schedule G (Permitted Indebtedness)) and the convertible bond
due 1 January 2022 (as set out under Schedule G (Permitted Indebtedness)) in accordance with the terms of the “Early Redemption
for reasons of minimal outstanding Principal Amount” provision listed under the relevant part of the column entitled “De-minimis
repayment provisions” of Schedule G (Existing Indebtedness)). The Borrower may not amend the “Early Redemption for
reasons of minimal outstanding Principal Amount” provision of such bonds (or any other provisions of such bonds which may
affect the de-minimis repayment terms of such bonds), without the prior written consent of the Bank.

 

ARTICLE
8

 

Information and Visits

 

		8.01	Information concerning the Project

 

The Borrower shall:

 

		(a)	deliver to the Bank:

 

(i)       the
information in content and in form, and at the times, specified in Part A2 of Schedule A or otherwise as agreed from time to time
by the parties to this Contract;

 

(ii)       any
such information or further document concerning the Project as the Bank may reasonably require to comply with its obligations under
the EFSI Regulation, and

 

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(iii)       any
such information or further document concerning the financing, procurement, implementation, operation and environmental matters
of or for the Project as the Bank may reasonably require within a reasonable time,

 

provided always that if such information
or document is not delivered to the Bank on time, and the Borrower does not rectify the omission within a reasonable time set by
the Bank in writing, the Bank may remedy the deficiency, to the extent feasible, by employing its own staff or a consultant or
any other third party, at the Borrowers expense and the Borrower shall provide such persons with all assistance necessary for the
purpose;

 

		(b)	submit for the approval of the Bank without delay any material change to the Project, also taking
into account the disclosures made to the Bank in connection with the Project prior to the signing of this Contract, in respect
of, inter alia, the price, design, plans, timetable or to the expenditure programme or financing plan for the Project;

 

		(c)	promptly inform the Bank of:

 

(i)       any
action or protest initiated or any objection raised by any third party or any genuine complaint received by the Borrower or any
material Environmental Claim that is to its knowledge commenced, pending or threatened against it with regard to environmental
or other matters affecting the Project: and

 

(ii)       any
fact or event known to the Borrower, which may substantially prejudice or affect the conditions of execution or operation of the
Project;

 

(iii)       a
genuine allegation, complaint or information with regard to Illegal Activities related to the Loan and/or the Project:

 

(iv)       any
non-compliance by it with any applicable Environmental Law and

 

(v)       any
suspension, revocation or modification of any Environmental Approval,

 

and set out the action to be taken
with respect to such matters; and

 

		(d)	provide to the Bank, if so requested a certificate of its insurers showing fulfilment of the requirements
of Article 6.05(c);

 

		8.02	Information concerning the Borrower

 

The Borrower shall:

 

		(a)	deliver to the Bank:

 

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(i)         as
soon as they become available, but in any event within 180 days after the end of each of its financial, its audited consolidated
and unconsolidated annual report, balance sheet, profit and loss account and auditors report for that financial year, provided
that if Article 8.05 (Confidential Information) applies, such information shall be provided to the Bank as soon as it becomes publicly
available;

 

(ii)         as
soon as they become available, but in any event within 120 days after the end of each of the relevant accounting periods for its
interim consolidated and unconsolidated semi-annual report, balance sheet and profit and loss account for the first half-year of
each of its financial years, provided that if Article 8.05 (Confidential Information) applies, such information shall be provided
to the Bank as soon as it becomes publicly available;

 

(iii)         on
the earlier of

 

		(A)	the date on which its financial, its audited consolidated and unconsolidated annual report, balance
sheet, profit and loss account and auditors report for that financial year are delivered to the Bank under paragraph (i) above;
and

 

		(B)	the date which is within 180 days after the end of each of its financial years,

 

a Compliance Certificate as set out
in Schedule E signed by two directors of the Borrower (provided that if at the relevant time the Borrower only has one appointed
director, the Compliance Certificate shall be signed by such director);

 

(iv)         on
the earlier of:

 

		(A)	the date on which its interim consolidated and unconsolidated semi-annual report, balance sheet
and profit and loss account for the first half-year of each of its financial years are delivered to the Bank under paragraph (ii)
above; and

 

		(B)	the date which is within 120 days after the end of each of the accounting periods for its interim
consolidated and unconsolidated semi-annual report,

 

a Compliance Certificate as set out
in Schedule E signed by two directors of the Borrower (provided that if at the relevant time the Borrower only has one appointed
director, the Compliance Certificate shall be signed by such director);

 

(v)         subject
to the provisions of Article 8.05 (Confidential information), as soon as they become available but in any event within 30 days
after the end of each of its financial half years:

 

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		A.	the budgets which were delivered to and approved by the board of directors;

 

		B.	an update on the financial performance of the Borrower against the agreed budgets;

 

		C.	a succinct notification on the significant clinical and regulatory development milestones or achievements
of the Borrower’s product portfolio; and

 

		D.	a succinct notification on the significant changes in the development, licensing and distribution
contracts portfolio related to the Borrower’s product portfolio;

 

(vi)         from
time to time, such further information on its general financial situation as the Bank may reasonably require or such certificates
of compliance with the undertakings of Article 6 as the Bank may deem necessary;

 

(vii)        any
such information or further document concerning customer due diligence matters of or for the Borrower as the Bank may reasonably
require within a reasonable time; and

 

(viii)       notify
the Bank at least 5 Business Days prior to any prepayment of any bond listed under Schedule G (Permitted Indebtedness) and where
the prepayment relates to a convertible bond such notification shalt be accompanied with a confirmation from the Borrower that
the prepayment is in accordance with the terms of the “Early Redemption for reasons of minimal outstanding Principal Amount’
provision listed under the relevant part of the column entitled “De-minimis repayment provisions” of Schedule G (Existing
indebtedness));

 

and

 

		(b)	inform the Bank immediately in writing of:

 

(i)           any
material alteration to its articles of association or shareholding structure and of any change of ownership of 5% or more of its
shares after the date of this Contract;

 

(ii)          any
fact which obliges it to prepay any financial indebtedness or any European Union funding;

 

(iii)         any
event or decision that constitutes or may result in a Prepayment Event;

 

(iv)         any
intention on its part to grant any security over any of its assets in favour of a third party;

 

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(v)       any
intention on its part to relinquish ownership of any material component of the Project;

 

(vi)       any
fact or event that is reasonably likely to prevent the substantial fulfilment of any obligation of the Borrower under this Contract;

 

(vii)      any
event listed in Article 10.01 having occurred or being threatened or anticipated;

 

(viii)     any
investigations concerning the integrity of the members of the Borrower’s Board of Directors, supervisory board or managers;

 

(ix)       to
the extent permitted by law, any material litigation, arbitration, administrative proceedings or investigation carried out by a
court, administration or similar public authority, which, to the best of its knowledge and belief, is current, imminent or pending
against the Borrower or its controlling entities or members of the Borrowers management bodies in connection with Illegal Activities
related to the Loan or the Project;

 

(x)        any
measure taken by the Borrower pursuant to Article 6.05 6.05(f) of this Contract; and

 

(xi)       any
litigation, arbitration or administrative proceedings or investigation which is current, threatened or pending and which might,
if adversely determined, reasonably likely result in a Material Adverse Change.

 

		8.03	Visits by the Bank

 

The Borrower shall allow the Bank
and, when either required by the relevant mandatory provisions of EU law or pursuant to the EFSI Regulation, the competent EU institutions
Including the European Court of Auditors, the Commission, the European Anti-Fraud Office, as well as person designated by the foregoing.

 

		(a)	to visit the sites, installations and works comprising the Project;

 

		(b)	to interview representatives of the Borrower, and not obstruct contacts with any other person involved
in or affected by the Project; and

 

		(c)	to conduct such on the spot audits and checks as they may wish and review the Borrower’s
books and records in relation to the execution of the Project and to be able to take copies of related documents to the extent
permitted by the law.

 

The Borrower shall provide the Bank,
or ensure that the Bank is provided, with all necessary assistance for the purposes described in this Article.

 

    	49

     

    

 

In the case of a genuine allegation,
complaint or information with regard to Illegal Activities related to the Loan and/or the Project, the Borrower shall consult with
the Bank in good faith regarding appropriate actions. In particular, if it is proven that a third party committed Illegal Activities
in connection with the Loan and/or the Prefect with the result that the Loan or the EFSI financing were misapplied, the Bank may,
without prejudice to the other provisions of this Contract, inform the Borrower if, in its view, the Borrower should take appropriate
recovery measures against such third party. In any such case, the Borrower shall in good faith consider the Bank’s views
and keep the Bank informed.

 

The Borrower acknowledges that the
Bank may be obliged to communicate information relating to the Borrower and the Project to any competent institution or body of
the European Union in accordance with the relevant mandatory provisions of European Union law.

 

		8.04	Disclosure and publication

 

The Borrower acknowledges and agrees
that:

 

		(a)	the Bank may be obliged to communicate information relating to the Borrower and the Project to
any competent institution or body of the European Union in accordance with the relevant mandatory provisions of European Union
law or pursuant to the EFSI Regulation; and

 

		(b)	the Bank may publish on its website or produce press releases containing information related to
the financing provided pursuant to this Contract, with support of the EFSI including the name, address of the Borrower, the purpose
of the financing and the type of financial support received under this Contract.

 

		(c)	The Borrower hereby releases the Bank from any bank secrecy. Accordingly, the Bank may disclose
all confidential information concerning this Contract, the Guarantee or any related document and the transactions envisaged thereunder
that has been provided to the Bank by the Borrower or, on their behalf, third parties (including, but without limitation, the fact
that the Bank and the Obligors entered into the business relationship established under this Contract, the Guarantee or any related
document, the amount and the conditions of the Loans, the interest rate, provided security interests, the presence of a Default,
any financial information on any of the Obligors) to such persons as permitted under this Article 8,04.

 

		(d)	To the extent legally permissible, the above release in respect of any bank secrecy is irrevocable.

 

		8.05	Confidential information

 

Where the Borrower provides information
to the Bank in connection with this Contract, it shall clearly indicate whether or not such information is already public, and
if it is confidential the Borrower shall ensure the public publication of such information at the same time, or immediately after,
it is shared with the Bank. The Borrower will not share any inside information with the Bank before it is published to the market

 

    	50

     

    

 

ARTICLE
9

 

Charges and expenses

 

		9.01	Taxes, uties and fees

 

The Borrower shall pay all Taxes,
duties, fees and other impositions of whatsoever nature, including stamp duty and registration fees, arising out of the execution
or implementation of this Contract or any related document and in the creation, perfection, registration or enforcement of any
security for the Loan to the extent applicable.

 

The Borrower shall pay all principal,
interest, indemnities and other amounts due under this Contract gross without deduction of any national or local impositions whatsoever;
provided that, if the Borrower is obliged to make any such deduction, it will gross up the payment to the Bank so that after deduction,
the net amount received by the Bank is equivalent to the sum due.

 

		9.02	Other charges

 

The Borrower shall bear all charges
and expenses, including professional, banking or exchange charges incurred in connection with the preparation, execution, implementation,
enforcement and termination of this Contract and/or any Guarantee or any related document, any amendment, supplement or waiver
in respect of this Contract and/or any Guarantee or any related document, and in the amendment, creation, management, enforcement
and realisation of any Guarantee.

 

		9.03	Increased costs, indemnity and set-off

 

		(a)	The Borrower shall pay to the Bank any sums or expenses incurred or suffered by the Bank as a consequence
of the introduction of or any change in (or in the interpretation, administration or application of) any law or regulation or compliance
with any law or regulation made after the date of signature of this Contract the Guarantee and/or any other related document, in
accordance with or as a result of which (i) the Bank is obliged to incur additional costs in order to fund or perform its obligations
under this Contract, the Guarantee and/or any other related document or (ii) any amount owed to the Bank under this Contract, the
Guarantee and/or any other related document or the financial income resulting from the granting of the Credit or the Loan by the
Bank to the Borrower is reduced or eliminated.

 

		(b)	Without prejudice to any other rights of the Bank under this Contract or under any applicable law,
the Borrower shall indemnify and hold the Bank harmless from and against any loss incurred as a result of any payment or partial
discharge that takes place in a manner other than as expressly set out in this Contract.

 

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		(c)	The Bank may set off any matured obligation due from the Borrower under this Contract (to the extent
beneficially owned by the Bank) against any obligation (whether or not matured) owed by the Bank to the Borrower regardless of
the place of payment, backing branch or currency of either obligation. If the obligations are in different currencies, the Bank
may convert either obligation at a market rate of exchange in its usual course of business for the purpose of the set-off. If either
obligation is unliquidated or unascertained, the Bank may set off in an amount estimated by it in good faith to be the amount of
that obligation.

 

ARTICLE
10

 

Events of Default

 

		10.01	Right to demand repayment

 

Upon written demand being made by
the Bank in accordance with the following provisions the Borrower shall repay all or part of the Loan (as requested by the Bank)
forthwith, together with accrued interest and all other accrued or outstanding amounts under this Contract provided that, if an
Event of Default under Article 10.01A(m) below shall occur, then without notice, demand or any other act by the Bank or any other
person, the obligation of the Bank to make any Loan and the Credit shall automatically terminate, all of the Loans, together with
accrued interest, and all other amounts accrued or outstanding under this Contract or any Guarantee Agreement shall become immediately
due and payable without presentment, demand, protest or notice of any kind, all of which are expressly waived.

 

For the avoidance of doubt, the Bank’s
right to cancel the Credit pursuant to Article 1.05B shall not be restricted.

 

		10.01A	Immediate demand

 

The Bank may make such demand immediately:

 

		(a)	if the Borrower does not pay on the due date any amount payable pursuant to this Contract at the
place and in the currency in which it is expressed to be payable, unless (i) its failure to pay is caused by an administrative
or technical error or a Disruption Event and (ii) payment is made within 3 Business Days of its due date;

 

		(b)	if any information or document given to the Bank by or on behalf of the Borrower or any Guarantor
or any representation, warranty or statement made or deemed to be made by the Borrower or any Guarantor in or pursuant to this
Contract or any Guarantee (as applicable) is or proves to have been incorrect, incomplete or misleading in any material respect;

 

		(c)	if, following any default of the Borrower, any Guarantor or any other member of the Group in relation
to any loan, or any obligation arising out of any financial transaction other than the Loan:

 

(i)         the
Borrower, any Guarantor or any other member of the Group is required or is capable of being required or will, following expiry
of any applicable contractual grace period, be required or be capable of being required to prepay, discharge, close out or terminate
ahead of maturity such other loan or obligation; or

 

    	52

     

    

 

(ii)        any
financial commitment for such other loan or obligation is cancelled or suspended;

 

		(d)	if the Borrower, any Guarantor or any other member of the Group incorporated in Germany:

 

(i)         is
unable to pay its debts as they fall due (zahlungsunfähig) or is declared or is deemed to be unable to pay its debts
as they fall due (drohend zahlungsunfähig) within the meaning of sections 17 and 18 of the German Insolvency Code (Insolvenzordnung),
suspends making payments on all or a material part of its debts or announces an intention to do so;

 

(ii)        is
over-indebted within the meaning of section 19 of the German Insolvency Code (Insolvenzordnung) or, with respect to any
other member of the Group, the value of the assets of any member of the Group is less than its liabilities (taking into account
contingent and prospective liabilities);

 

(iii)       commences
negotiations with any one or more of its creditors with a view to the general readjustment or rescheduling of its indebtedness;

 

(iv)       files
for insolvency (Antrag auf Eröffnung eines Insolvenzverfahrens); or

 

(v)        preliminary
insolvency administrator has been appointed or any other action has been taken within the meaning of section 21 of the German Insolvency
Code (Insolvenzordnung) or the opening of insolvency proceedings is rejected due to insufficiency of funds (Abweisung
mangels Masse):

 

		(e)	if the Borrower, any Guarantor or any other member of the Group incorporated in any jurisdiction
other than Germany is unable to pay its debts as they fall due, or suspends its debts, or makes or seeks to make a composition
with its creditors including a moratorium, or commences negotiations with one or more of its creditors with a view to rescheduling
any of its financial indebtedness;

 

		(f)	if any corporate action, legal proceedings or other procedure or step is taken in relation to the
suspension of payments, a moratorium of any indebtedness, dissolution, administration or reorganisation (by way of voluntary arrangement,
scheme of arrangement or otherwise or an order is made or an effective resolution is passed for the winding up of the Borrower,
any Guarantor or any member of the Group, or if the Borrower, any Guarantor or any member of the Group takes steps towards a substantial
reduction in its capital, is declared insolvent or ceases or resolves to cease to carry on the whole or any substantial part of
its business or activities;

 

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		(g)	if an encumbrancer takes possession of, or a receiver, liquidator, administrator, administrative
receiver or similar officer is appointed, whether by a court of competent jurisdiction or by any competent administrative authority
or by any person, of or over, any part of the business or assets of the Borrower, any Guarantor or any member of the Group or any
property forming part of the Project;

 

		(h)	if the Borrower, any Guarantor or any member of the Group defaults in the performance of any obligation
in respect of any other loan granted by the Bank or financial instrument entered into with the Bank,

 

		(i)	if the Borrower, any Guarantor or any member of the Group defaults in the performance of any obligation
in respect of any other loan made to it from the resources of the Bank or the European Union;

 

		(j)	if any distress, execution, sequestration or other process is levied or enforced upon the property
of the Borrower or any property forming part of the Project and is not discharged or stayed within 14 (fourteen) days;

 

		(k)	if a Material Adverse Change occurs, as compared with the Borrower’s or any Guarantor’s
condition at the date of this Contract;

 

		(l)	if it is or becomes unlawful for the Borrower or any Guarantor to perform any of its obligations
under this Contract or any Guarantee or this Contract or any Guarantee is not effective in accordance with its terms or is alleged
by the Borrower or any Guarantor to be ineffective in accordance with its terms; or

 

		(m)	without limiting any of the other clauses of this Article 10.01A:

 

(i)         a
court of the US or any state thereof (a “US Federal or State Court”) having jurisdiction in the premises shall enter
a decree or order for relief in respect of any other member of the Group or for all or any material part of its property in an
involuntary case under the Bankruptcy Code or under any other applicable bankruptcy, insolvency or similar law of the US or any
state thereof now or hereafter in effect, which decree or order is not stayed or dismissed within seven days of it being entered;
or any other similar relief shall be granted under any applicable US federal or state law;

 

(ii)        an
involuntary case shall be commenced against the Borrower, any Guarantor or any other member of the Group or for all or any material
part of its property under the Bankruptcy Code or under any other applicable bankruptcy, insolvency or similar law of the US or
any state thereof now or hereafter in effect; or a decree or order of a US Federal or State court having jurisdiction in the premises
for the appointment of a receiver, liquidator, sequestrator, trustee, custodian or other officer having similar powers over the
Borrower, any Guarantor or any other member of the Group, or over all or a material part of its property, shall have been entered;
and in any such event described in this paragraph (ii) shall continue for 60 days unless dismissed or discharged; or

 

    	54

     

    

 

(iii)       the
Borrower, any Guarantor or any other member of the Group shall have an order for relief entered with respect to it (or for all
or any material part of its property) in a voluntary case or commence a voluntary case under the Bankruptcy Code or under any other
applicable bankruptcy, insolvency or similar law of the US or any state thereof now or hereafter in effect, or shall consent to
the entry of an order for relieve in an involuntary case, or to the conversion of an involuntary case to a voluntary case, under
any such law.

 

10.01B Demand after notice to remedy

 

The Bank may also make such demand:

 

		(i)	if the Borrower fails to comply with any obligation under this Contract not being an obligation
mentioned in Article 10.01A or any Guarantor fails to comply with any obligation under any Guarantee or Guarantee Agreement: or

 

(ii)        if
any fact related to the Borrower or the Project stated in the Recitals materially alters and is not materially restored and if
the alteration either prejudices the interests of the Bank as lender to the Borrower or adversely affects the implementation or
operation of the Project, unless the non-compliance or circumstance giving rise to the non-compliance is capable of remedy and
is remedied within 20 Business Days from a notice served by the Bank on the Borrower or any Guarantor.

 

		10.02	Other rights at law

 

Article 10.01 shall not restrict
any other right of the Bank at law to require prepayment of the Loan.

 

		10.03	Indemnity

 

10.03(A) Trenches

 

In case of demand under Article 10.01
in respect of any Tranche, the Borrower shall pay to the Bank the amount demanded together with the Prepayment Fee on any amount
of principal due to be prepaid. Such Prepayment Fee payable as a result of cancellation and/or repayment of the Loan pursuant to
Article 10.01 in respect of any Tranche shall be calculated in accordance with Article 4.02E but on the basis that:

 

		(a)	the “Prepayment Date” shall be deemed to be the date specified in the written demand
from the Bank, and

 

		(b)	the “Prepayment Amount” shall be deemed to be the relevant amount demanded by the Bank
pursuant to this Article 10.01.

 

    	55

     

    

 

10.03(B) General

 

Amounts due by the Borrower pursuant
to this Article 10.03 shall be payable on the date of prepayment specified in the Bank’s demand.

 

		10.04	Non-Waiver

 

No failure or delay or single or
partial exercise by the Bank in exercising any of its rights or remedies under this Contract shall be construed as a waiver of
such right or remedy. The rights and remedies provided in this Contract are cumulative and not exclusive of any rights or remedies
provided by law.

 

ARTICLE
11

 

Law and jurisdiction,
miscellaneous

 

		11.01	Governing Law

 

This Contract and any non-contractual
obligations arising out of or in connection with it shall be governed by the laws of England and Wales.

 

		11.02	Jurisdiction

 

		(a)	The courts of England have exclusive jurisdiction to settle any dispute (a “Dispute”)
arising out of or in connection with this Contract (including a dispute regarding the existence, validity or termination of this
Contract or the consequences of its nullity) or any non-contractual obligation arising out of or in connection with this Contract.

 

		(b)	The parties agree that the courts of England are the most appropriate and convenient courts to
settle Disputes between them and, accordingly, that they will not argue to the contrary.

 

		(c)	This Article 11.02 is for the benefit of the Bank only. As a result and notwithstanding Article
11.02(a), it does not prevent the Bank from taking proceedings relating to a dispute (including a dispute relating to the existence,
validity or termination hereof or any non-contractual obligation arising out of or in connection with this Contract) in any other
courts with jurisdiction. To the extent allowed by law, the Bank may take concurrent proceedings in any number of jurisdictions.

 

		11.03	Agent of Service

 

Without prejudice to any other mode
of service allowed under any relevant law, the Borrower hereby irrevocably appoints Elemental Process Agent Limited (company number
01745936), 27 Old Gloucester Street, London WC1N 3AX as its agent of service for the purposes of accepting service on its behalf
of any writ, notice, order, judgement or other legal process. The Borrower agrees that failure by a process agent to notify it
of the process will not invalidate the proceedings concerned. The Borrower unconditionally releases the agent of service from the
restrictions of section 181 of the German Civil Code (Bürgeriiches Gesetzbuch), to the extent legally permissible.

 

    	56

     

    

 

The Bank hereby appoints The Securities
Management Trust Limited of 8 Lothbury, London EC2 7HH to be its agent for the purpose of accepting service of legal process.

 

		11.04	Place of performance

 

Unless otherwise specifically agreed
by the Bank in writing, the place of performance under this Contract, shall be the seat of the Bank.

 

		11.05	Evidence of sums due

 

In any legal action arising out of
this Contract the certificate of the Bank as to any amount or rate due to the Bank under this Contract shall, in the absence of
manifest error, be prima facie evidence of such amount or rate.

 

		11.06	Third party rights

 

A person who is not a party has no
right under the Contracts (Rights of Third Parties) Act 1999 to enforce or to enjoy the benefit of any term of this Contract.

 

		11.07	Entire Agreement

 

This Contract constitutes the entire
agreement between the Bank and the Borrower in relation to the provision of the Credit hereunder, and supersedes any previous agreement,
whether express or implied, on the same matter.

 

		11.08	Invalidity

 

If at any time any term of this Contract
is or becomes illegal, invalid or unenforceable in any respect, or this Contract is or becomes ineffective in any respect, under
the laws of any jurisdiction, such illegality, invalidity, unenforceability or ineffectiveness shall not affect:

 

		(a)	the legality, validity or enforceability in that jurisdiction of any other term of this Contract
or the effectiveness in any other respect of this Contract in that jurisdiction; or

 

		(b)	the legality, validity or enforceability in other jurisdictions of that or any other term of this
Contract or the effectiveness of this Contract under the laws of such other jurisdictions.

 

		11.09	Amendments

 

Any amendment to this Contract shall
be made in writing and shall be signed by the parties hereto.

 

    	57

     

    

 

		11.10	Counterparts

 

This Contract may be executed in
any number of counterparts, all of which taken together shall constitute one and the same instrument. Each counterpart is an original,
but all counterparts shall together constitute one and the same instrument.

 

ARTICLE
12

 

Final clauses

 

		12.01	Notices to either party

 

Notices and other communications
given under this Contract addressed to either party to this Contract shall be made to the address, email address or facsimile number
as set out below, or to such other address, email address or facsimile number as a party previously notifies to the other in writing:

 

	For the Bank	Attention Ops
	 	100 boulevard Konrad Adenauer
	 	L-2950 Luxembourg
	 	 
	 	Facsimile no: +352 43 79 67397
	 	 
	 	Email address:	ops-enpst3-shared©eib.org
	 	 	y.zhang@eib.org
	 	 	 
	For the Borrower	Attention:  Chief Financial Officer
	 	 
	 	Hemmelrather Weg 201, 51377 Leverkusen, Germany
	 	Facsimile no.:	+49 (214) 876 3290
	 	Email address: 	press@biofrontera.com

 

		12.02	Form of notice

 

Any notice or other communication
given under this Contract must be in writing.

 

Notices and other communications,
for which fixed periods are laid down in this Contract or which themselves fix periods binding on the addressee, may be made by
hand delivery, registered letter, facsimile or e-mail. Such notices and communications shall be deemed to have been received by
the other party on the date of delivery in relation to a hand-delivered or registered letter, on receipt of transmission in relation
to a facsimile, or on the date when the e-mail is sent in relation to an e-mail message from the Bank to the Borrower or when confirmed
by return e-mail by an authorised officer of the Bank to have been received in readable form, in the case of an e-mail sent by
the Borrower to the Bank.

 

Other notices and communications
may be made by hand delivery, registered letter, facsimile or e mail.

 

    	58

     

    

 

Without affecting the validity of
any notice delivered by e-mail or facsimile according to the paragraphs above, a copy of each notice delivered by e-mail or facsimile
shall also be sent by letter to the relevant party on the next following Business Day at the latest.

 

Notices issued by the Borrower pursuant
to any provision of this Contract shall, where required by the Bank, be delivered to the Bank together with satisfactory evidence
of the authority of the person or persons authorised to sign such notice on behalf of the Borrower and the authenticated specimen
signature of such person or persons.

 

		12.03	Recitals and Schedules

 

The Recitals and the following Schedules
form part of this Contract:

 

	Schedule A	Project Specification and Reporting
	 	 
	Schedule B	Definition of EURIBOR
	 	 
	Schedule C	Forms for Borrower
	 	 
	Schedule D	Form of Certificate from Borrower
	 	 
	Schedule E	Compliance Certificate
	 	 
	Schedule F	Performance Participation Interest Examples
	 	 
	Schedule G	Existing Indebtedness
	 	 

 

IN WITNESS WHEREOF the parties hereto
have caused this Contract to be executed on the date referred to below:

 

At Luxembourg, this _____ May 2017

 

	Signed for and on behalf of	Signed for and on behalf of
	 	 
	EUROPEAN INVESTMENT BANK	BIOFRONTERA AG
	 	 
	Name:	Adrian Kamenitzer	Name:	Stefan Becker	Name:	Prof. Dr. Hermann Lübbert	Name:	Thomas Schaffer
	Title:	Director	Title:	Senior Counsel	Title:	CEO (Vorstadsvorsitzender)	Title:	CFO (Vorstand)
	 	 	 	 	 	 	 	 
	Signature:	Signature:	Signature:	Signature:

 

    	59

     

    

 

Schedule A

 

Project Specification and Reporting

 

Part A1 Technical Description (Article
6.02)

 

Purpose, Location

 

The Project concerns the Borrowers research
and development activity on the expansion of indications for its lead product, Ameluz. These indications include the treatment
of non-melanoma skin cancers, such as Basal Cell Carcinoma. The Borrower, established in 1997, is headquartered in Leverkusen,
Germany and currently employs over 60 people.

 

Description

 

The Project comprises of running post-marketing
level clinical trials to produce data for obtaining regulatory clearances, both in the European Union and the US, for their lead
product in different indications and treatment modalities. In addition, such data is to be used for gaining reimbursement in all
main markets. More specifically, it includes four sub-projects:

 

		(i)	Producing supportive clinical and preclinical data to gain marketing authorization for Ameluz in
various new indications in the European Union;

 

		(ii)	Generating an Active Substance Masterfile (ASMF) for 5-aminolevulic acid to be used in regulatory
filings outside the US;

 

		(iii)	Activities related to filing in the US of a New Drug Application (NDA) for Ameluz to be used in
conjunction with Rhodoled; and

 

		(iv)	Collecting clinical data to support a label claim of using Ameluz in daylight phatodynamic therapy
(PDT).

 

Calendar

 

The Project will be implemented over the period
2016-2020.

 

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Part A2 - Information Duties under Article
8.01(a)

 

		1.	Dispatch of information: designation of the person responsible

 

The information below has to be sent
to the Bank under the responsibility of:

 

	 	Contact
	Company	Biofrontera AG
	Contact person	Hermann Lübbert
	Title	CEO
	Address	Hemmelrather Weg 20, D-51377 Leverkusen
	Phone	+49 214 876 32 0
	Fax	+49 214 876 32 90
	Email	h.luebbert@biofrontera.com

 

The above-mentioned contact person(s)
is (are) the responsible contact(s) for the time being. The Borrower shall inform the Bank immediately in case of any change.

 

		2.	Information on specific subjects

 

The Borrower shall deliver to the
Bank the following information at the latest by the deadline indicated below.

 

	Document / information	 	Deadline
	N/A	 	 

 

		3.	Information on the project’s implementation

 

The Borrower shall deliver to the
Bank the following information on project progress during implementation at the latest by the deadline indicated below.

 

	Document / information	 	Deadline	 	Frequency

of

Reporting
	Project Progress Report	 	30 April 2016	 	Annually
	 	 	 	 	 
	-	A brief update on the Technical Description, explaining the reasons for significant changes vs. initial scope;	 	30 April 2019	 	 
	-	Update on the date of completion of each of the main	 	 	 	 
	-	Project’s components, explaining reasons for any possible delay;	 	 	 	 
	-	Update on the cost of the Project, explaining reasons for any possible cost variations vs. initial budgeted cost;	 	 	 	 

 

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	Document / information	 	Deadline	 	Frequency

of

Reporting
	-	A description of any major issue with impact on the environment;	 	 	 	 
	-	Update on the Project’s demand or usage and comments;	 	 	 	 
	-	Any significant issue that has occurred and any significant risk that may affect the Project’s operation;	 	 	 	 
	-	Any legal action concerning the Project that may be on-going;	 	 	 	 
	-	Non-confidential project-related pictures, if available.	 	 	 	 

 

Table 1. Initial Project Cost Breakdown
(monitoring reference):

 

	EUR 000	 	2016	 	 	2017	 	 	2018	 	 	2019	 	 	2020	 	 	Total	 
	Personnel	 	 	1.5	 	 	 	1.9	 	 	 	2.1	 	 	 	2.2	 	 	 	2.3	 	 	 	10.0	 
	Consumables	 	 	0.8	 	 	 	0.3	 	 	 	0.4	 	 	 	0.5	 	 	 	0.6	 	 	 	2.6	 
	CROs	 	 	10	 	 	 	2.9	 	 	 	2.6	 	 	 	2.9	 	 	 	2.9	 	 	 	12.2	 
	Regulatory approval	 	 	1.6	 	 	 	1.0	 	 	 	1.0	 	 	 	1.1	 	 	 	1.1	 	 	 	5.9	 
	Services	 	 	0.6	 	 	 	0.6	 	 	 	1,8	 	 	 	1.4	 	 	 	1.4	 	 	 	5.8	 
	Other	 	 	0.8	 	 	 	0.8	 	 	 	0.8	 	 	 	0.8	 	 	 	0.9	 	 	 	4.1	 
	Total costs	 	 	6.2	 	 	 	7.4	 	 	 	8.7	 	 	 	9.0	 	 	 	9.2	 	 	 	40.5	 

 

		4.	Information on the end of works and first year of operation

 

The Borrower shall deliver to the
Bank the following information on project completion and initial operation at the latest by the deadline indicated below.

 

	Document / information	 	Date of delivery

to the Bank
	Project Completion Report, including	 	30 June 2020
	-	A final Technical Description of the Project as completed, explaining the reasons for any significant change compared to the Technical Description in A.1.;	 	 
	-	The date of completion of each of the main project’s components, explaining reasons for any possible delay;	 	 
	-	The date of completion of each of the main project’s components, explaining reasons for any possible delay;	 	 
	-	The final cost of the Project, explaining reasons for any possible cost variations vs. initial budgeted cost;	 	 
	-	Employment effects of the project: person-days required during implementation as well as permanent new jobs created;	 	 
	-	A description of any major issue with impact on the environment or social impacts;	 	 
	-	Update on procurement procedures and explanation of deviations from the procurement plan;	 	 
	-	Update on the Project’s demand or usage and comments;	 	 
	-	Any significant issue that has occurred and any significant risk that may affect the Project’s operation;	 	 
	-	Any legal action concerning the Project that may be on-going;	 	 
	-	An update on the following Monitoring Indicators:	 	 

 

	Language of reports	English

 

    	62

     

    

 

Schedule B

 

Definitions of EURIBOR

 

		A.	EURIBOR

 

“EURIBOR” means:

 

		(a)	in respect of a relevant period of less than one month, the Screen Rate (as defined below) for
a term of one month;

 

		(b)	in respect of a relevant period of one or more months for which a Screen Rate is available, the
applicable Screen Rate for a term for the corresponding number of months; and

 

		(c)	in respect of a relevant period of more than one month for which a Screen Rate is not available,
the rate resulting from a linear interpolation by reference to two Screen Rates, one of which is applicable for a period next shorter
and the other for a period next longer than the length of the relevant period,

 

(the period for which the rate is
taken or from which the rates are interpolated being the “Representative Period”).

 

For the purposes of paragraphs (b)
and (c) above, “available” means the rates, for given maturities, that are calculated and published by Global Rate
Set Systems Ltd (GRSS), or such other service provider selected by the European Money Markets Institute (EMMI), under the sponsorship
of EMMI and EURIBOR AC I, or any successor to that function of EMMI and EURIBOR ACI as determined by the Bank.

 

“Screen Rate”
means the rate of interest for deposits in EUR far the relevant period as published at 11h00, Brussels time, or at a later time
acceptable to the Sank on the day (the “Reset Date”) which falls 2 (two) Relevant Business Days prior to the first
day of the relevant period, on Reuters page EURIBOR 01 or its successor page or, failing which, by any other means of publication
chosen for this purpose by the Bank.

 

If such Screen Rate is not so published,
the Bank shall request the principal euro-zone offices of four major banks in the euro-zone, selected by the Bank. to quote the
rate at which EUR deposits in a comparable amount are offered by each of them as at approximately 111100, Brussels time, on the
Reset Date to prime banks in the euro-zone interbank market for a period equal to the Representative Period. If at least 2 (two)
quotations are provided, the rate for that Reset Date will be the arithmetic mean of the quotations.

 

If fewer than 2 (two) quotations
are provided as requested, the rate for that. Reset Date will be the arithmetic mean of the rates quoted by major banks in the
euro-zone, selected by the Bank, at approximately 11h00, Brussels time, on the day which falls 2 (two) Relevant Business Days after
the Reset Date, for loans in EUR in a comparable amount to leading European Banks for a period equal to the Representative Period.

 

    	63

     

    

 

If no rate is available as provided
above, EURIBOR shall be the rate (expressed as a percentage rate per annum) which is determined by the Bank to be the all-inclusive
cost to the Bank for the funding of the relevant Tranche based upon the then applicable internally generated Bank reference rate
or an alternative rate determination method reasonably determined by the Bank.

 

		B.	GENERAL

 

For the purposes of the foregoing
definitions

 

		(a)	All percentages resulting from any calculations referred to in this Schedule will be rounded, if
necessary, to the nearest one hundred-thousandth of a percentage point, with halves being rounded up.

 

		(b)	The Bank shall inform the Borrower without delay of the quotations received by the Bank.

 

		(c)	If any of the foregoing provisions becomes inconsistent with provisions adopted under the aegis
of EMMI and EURIBOR ACI (or any successor to that function of EMMI and EURIBOR ACI as determined by the Bank), the Bank may by
notice to the Borrower amend the provision to bring it into line with such other provisions.

 

    	64

     

    

 

Schedule C

 

Form of Disbursement Offer/Acceptance (Articles
1.02B and 1.02C)

 

		To:	Biofrontera AG

 

		From:	European Investment Bank

 

Date:

 

	Subject:	Disbursement Offer/Acceptance for the Finance Contract between European Investment Bank and Biofrontera AG dated [•] (the “Finance Contract”)
	 	 	 
	 	Fl number ________	Serapis number ________

 

 

Dear Sirs.

 

We refer to the Finance Contract. Terms defined
in the Finance Contract have the same meaning when used in this letter.

 

Following your request for a Disbursement Offer
from the Bank, in accordance with Article 1.02B of the Finance Contract, we hereby offer to make available to you the following
Tranche:

 

		(a)	the amount and currency to be disbursed:

 

		(b)	Scheduled Disbursement Date.

 

		(c)	the Cash Pay Margin applicable until the Maturity Date:

 

		(d)	the Disbursement Date Market Capitalisation:

 

		(e)	the Disbursement Date Notional Equity Proportion:

 

		(f)	the Deferred Interest Rate:

 

		(g)	the Interest payment periodicity;

 

		(h)	the Payment Dates:

 

		(i)	the Maturity Date:

 

To make the Tranche available subject to the
terms and conditions of the Finance Contract, the Bank must receive a Disbursement Acceptance in the form of a copy of this Disbursement
Offer duly signed on your behalf, to the following fax number [___] no later than the Disbursement Acceptance Deadline of Time),
Luxembourg time, on [date].

 

    	65

     

    

 

The Disbursement Acceptance must be accompanied
(if it has not been previously supplied) by:

 

		(a)	the indication of the bank account (with IBAN code in case of disbursements in FUR or the appropriate
format for the relevant currency) where disbursement of the Tranche should be made; and

 

		(b)	evidence of the authority of the person or persons authorised to sign it on behalf of the Borrower
and the specimen signature of such person or persons.

 

If not accepted by the above stated time, the
offer contained in this document shall be deemed to have been refused and shall automatically lapse,

 

If you do accept the Tranche as described in
this Disbursement Offer, all the related terms and conditions of the Finance Contract shall apply, in particular, the provisions
of Article 1.04.

 

	Yours faithfully,	 
	 	 
	EUROPEAN INVESTMENT BANK	 
	 	 
	We hereby accept the above Disbursement Offer:
	 	 
	 	 
	 	 
	For and behalf of Biofrontera AG	 
	 	 
	Date:	 

 

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Schedule D

 

Form of Certificate from Borrower (Article
1.04(B))

 

		To:	European Investment Bank

 

		From:	Biofrontera AG

 

		Date:	 

 

	Subject:	Finance Contract between European Investment Bank and Biofrontera AG dated [•] (the “Finance Contract”)
	 	 	 
	 	Fl number ________	Serapis number ________

 

 

Dear Sirs,

 

Terms defined in the Finance Contract have
the same meaning when used in this letter. For the purposes of Article 1.04 of the Finance Contract we hereby certify to you as
follows:

 

		(a)	no Prepayment Event has occurred and is continuing unremedied;

 

		(b)	no security of the type prohibited under Article 7.02 has been created or is in existence;

 

		(c)	there has been no material change to any aspect of the Project or in respect of which we are obliged
to report under Article 8.01, save as previously communicated by us;

 

		(d)	no Default has occurred and is continuing unremedied or unwaived;

 

		(e)	no litigation, arbitration administrative proceedings or investigation is current or to our knowledge
is threatened or pending before any court, arbitral body or agency which has resulted or if adversely determined is reasonably
likely to result in a Material Adverse Change, nor is there subsisting against us or any of our subsidiaries any unsatisfied judgement
or award;

 

		(f)	the representations and warranties to be made or repeated by us under Article 6.21 are true
in all respects; and

 

		(g)	no Material Adverse Change has occurred, as compared with the situation at the date of the Finance
Contract.

 

	Yours faithfully,	 
	 	 
	 	 
	For and on behalf of Biofrontera AG	 
	Date:	 

 

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Schedule E

 

Form of Compliance Certificate

 

		To	European Investment Bank

 

		From:	Biofrontera AG

 

		Date:	 

 

	Subject:	Finance Contract between European Investment Bank and Biofrontera AG dated [6] (the “Finance Contract”)
	 	 	 
	 	Fl number ________	Serapis number ________

 

 

Dear Sirs,

 

We refer to the Finance Contract. This is a
Compliance Certificate. Terms defined in the Finance Contract have the same meaning when used in this Compliance Certificate.

 

We hereby confirm:

 

(i)          no
security of the type prohibited under Article 7.02 has been created or is in existence;

 

(ii)         no
event or circumstance which constitutes or would with the passage of time or giving of notice under the Finance Contract constitute
an Event of Default has occurred and is continuing unremedied or unwaived. [If this statement cannot be made, this certificate
should identify any potential event of default that is continuing and the steps, if any, being taken to remedy it]; and

 

(iii)        it
has no other Material Subsidiaries other than the Material Subsidiaries identified in Recital 6 of the Finance Contract. [If this
statement cannot be made, this certificate should identify the relevant subsidiary and the steps under Article 7.01 will have to
occur].

 

	Yours faithfully,	 
	 	 
	For and on behalf of Biofrontera AG	 
	 	 
	[director]	[director]

 

    	68

     

    

 

Schedule F

 

Performance Participation Interest Examples

 

The following examples have been provided as
a worked example to illustrate the calculation of the Performance Participation Interest. These examples have been provided for
illustration purposes only

 

		1.	Disbursement Date in respect of the relevant Tranche (Year
1)

 

		•	Disbursement of Tranche = EUR 10,000,000

 

		•	Disbursement Date Market Capitalisation = EUR 160,000,000

 

		•	Disbursement Date Notional Equity Proportion = (EUR 10,000,000) x (2%) x (5 years) / (EUR 160,000,000)
= 0.00625 (or 0.625%)

 

		2.	Maturity Date in respect of the relevant Tranche (Year
5)

 

		(a)	Upside Scenario

 

		•	Maturity Date Market Capitalisation (in relation to the Maturity Date or on any date earlier than
the Maturity Date in the event of a prepayment or an acceleration of all or part of that Tranche) = EUR 200,000,000

 

		•	Performance Participation Interest = 0.00625 x EUR 200,000,000
= EUR 1,250,000

 

		(b)	Downside Scenario

 

		•	Maturity Date Market Capitalisation (in relation to the Maturity Date or on any date earlier than
the Maturity Date in the event of a prepayment or an acceleration of ail or part of that Tranche) = EUR 100,000,000.

 

		•	Performance Participation Interest = 0.00625 x EUR 100,000,000
= FUR 625,000

 

    	69

     

    

 

Schedule G

 

Existing Indebtedness

 

	Source	 	Outstanding amount	 	De-minimis repayment provision
	 	 	 	 	 
	8% option bond due 1 January 2018	 	EUR 4,930,000 (of which EUR 1,500,000 are held by Borrower)	 	N/A
	 	 	 	 	 
	6% subordinated convertible bond due 1 January 2021	 	EUR 83,000	 	Paragraph 4(4) of the terms of the bond states:
	 	 	 	 	 
	 	 	 	 	“Early Redemption for reasons of minimal outstanding Principal Amount. The Issuer may at any time redeem all, but not part of the Bonds at their Principal Amount, together with interest accrued thereon until (but excluding) the date of redemption if at any time the Principal Amount of the Bonds outstanding is below 15% of the initially issued amount of Bonds.  Notice of early redemption shall be given not less than 30 nor more than 60 days before the day fixed in the notice on which any Bonds become due for early redemption.  The Provisions of the preceding paragraph shall apply accordingly.”  
	 	 	 	 	 
	 	 	 	 	The provisions of the preceding paragraph state that such notice will be irrevocable and must state the date of the early redemption and the last day on which Conversion Rights may be exercised by Bondholders.
	 	 	 	 	 
	 	 	 	 	The initially issued amount of the Bonds was 49,990 bonds in a total nominal amount of EUR 4,999,000, so the de minimis threshold is reached when EUR 749,850 or less are outstanding (which is already the case as at the date of this Contract).
	 	 	 	 	 
	 	 	 	 	Defined terms used above have the meaning given to them under the terms and conditions of the 6% subordinated convertible bond due 1 January 2021.

 

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	6% subordinated convertible bond due 1 January 20221	 	EUR 2,663,400	 	Paragraph 4(3) of the terms of the bond states:
	 	 	 	 	 
	 	 	 	 	“Early Redemption for reasons of minimal outstanding Principal Amount.  The Issuer may at any time redeem all, but not part of the Bonds at their Principal Amount, together with interest accrued thereon until (but excluding) the date of redemption if at any time the Principal Amount of the Bonds outstanding is below 15% of the initially issued amount of Bonds, Notice of early redemption shall be given not less than 30 nor more than 60 days before the day fixed in the notice on which any Bonds become due for early redemption. The provisions of the preceding paragraph shall apply accordingly.”
	 	 	 	 	 
	 	 	 	 	The provisions of the preceding paragraph state that such notice will be irrevocable and must state the date of the early redemption and the last day on which Conversion Rights may be exercised by Bondholders.
	 	 	 	 	 
	 	 	 	 	The initially issued amount of the Bonds is EUR 4,999,000. Therefore, the Borrower may repay the convertible bond under the above de-minimis clause once the outstanding amount reaches EUR 749,850 or falls below that amount.
	 	 	 	 	 
	 	 	 	 	Defined terms used above have the meaning given to them under the terms and conditions of the 6% subordinated convertible bond due 1 January 2022.

 

 

1 (1)
includes the following covenant :

 

“Each Bondholder is entitled to declare
due and payable by submitting a notice of termination (Termination Notice”) its entire claims arising from the Bonds and
demand payment of their Principal Amount, plus interest accrued on the Principal Amount until (but excluding) the day of actual
redemption, if

 

the Issuer, for any reason whatsoever, fails
within 30 days after the relevant payment date to pay any amounts due and payable on the Bonds; or

 

the Issuer Exceeds the Permissible Indebtedness
by debt borrowing.

 

    	71

     

    

 

The issuer ‘Exceeds the Permissible Indebtedness’
if by debt borrowing both (i) the Net Financial Indebtedness of the Issuer exceeds EUR 25 million, and (ii) the Net Indebtedness
Quota of the Issuer exceeds 4.0. Exempt are any debt borrowings for the purpose of financing the claims of Bondholders arising
out of these Bonds.

 

“Net Financial Indebtedness’ means
the sum of long-term financial liabilities and short-term financial debt, less cash and cash equivalents.

 

“Net Indebtedness Quota” means
the quotient of Net Financial Indebtedness divided by EBITDA.

 

“EBITDA” means the profit or loss
for the period, adjusted for depreciation and amortization, tax, interest expenses and interest income.

 

The calculation of Net Financial Indebtedness,
Net Indebtedness Quota and EBITDA shall be based on the respective most recent published annual group or interim quarterly financial
reports at the time of the debt borrowing. Insofar as the audited financial report shows Net Financial Indebtedness, Net Indebtedness
Quota and/or EBITDA, the respective calculation shall be binding both for the Issuer and the Bondholders.

 

The Issuer shall not be considered to Exceed
the Permissible Indebtedness if the Net Indebtedness Quota exceeds 4.0 due to a reduction of the EBITDA.”

 

    	72Exhibit 10.5

 

 

 

Biofrontera Aktiengesellschaft

 

Leverkusen

 

	Anleihebedingungen	Terms and Conditions of Convertible Bonds

 (non binding convenience translation)
	§ 1

Allgemeines	§ 1

General
	(1)   Nennbetrag und Einteilung. Die von der Biofrontera AG mit Sitz in Leverkusen („Emittentin”) begebenen Wandelschuldverschreibungen im Gesamtnennbetrag von EUR 4.999.000 sind eingeteilt in 49.990 untereinander gleichberechtigte, auf den Inhaber lautende Teilschuldverschreibungen („Schuldverschreibungen”) im Nennbetrag von jeweils EUR 100 („Nennbetrag“).	(1)   Principal Amount and Denomination. The convertible bond issued by Biofrontera AG with a statutory seat in Leverkusen, (“Issuer”), in an aggregate principal amount of EUR 4,999,000 is divided into 49,990 non-registered pari passu ranking bonds (“Bonds”), each with a principal amount of EUR 100 (“Principal Amount”).
	(2)   Globalverbriefung und Verwahrung. Die Schuldverschreibungen werden durch eine auf den Inhaber lautende Dauerglobalurkunde („Globalurkunde”) ohne Zinsscheine verbrieft. Die Globalurkunde wird bei der Clearstream Banking AG mit Sitz in Frankfurt am Main („Clearstream Frankfurt“) eingeliefert und verwahrt, bis alle Verpflichtungen der Emittentin aus den Schuldverschreibungen erfüllt sind. Die Globalurkunde trägt die Unterschrift des Vorstands der Emittentin in vertretungsberechtigter Zahl. Die Ausgabe effektiver Schuldverschreibungen und Zinsscheine ist ausgeschlossen.	(2)   Global Certificate and Custody. The Bonds are securitized in a non-registered permanent global certificate (“Global Certificate”) without interest coupons. The Global Certificate will be deposited with Clearstream Banking AG with seat in Frankfurt am Main (“Clearstream Frankfurt”) and will be kept in custody with Clearstream until all obligations of the Issuer under the Bonds have been satisfied. The Global Certificate bears the signatures of members of the Issuer’s management board authorized to represent the Issuer. No physical certificates representing Bonds and interest coupons will be issued.

 

     

     

    

 

	§ 2

Zinsen	§ 2

Interest
	(1)   Zinssatz und Zinszahlungstage. Die Schuldverschreibungen werden ab dem 01. Januar 2017 (einschließlich) („Zinsbeginn”) an mit jährlich 6 % auf ihren Nennbetrag verzinst. Die Zinsen sind jährlich nachträglich am 01. Januar eines jeden Jahres („Zinszahlungstag”), erstmals am 01. Januar 2018, zahlbar. Der Zinslauf der Schuldverschreibungen endet mit Ablauf des Tages, der dem Tag, an dem sie zur Rückzahlung fällig werden, unmittelbar vorausgeht, oder, falls das Wandlungsrecht ausgeübt wurde, mit Ablauf des Tages, der dem letzten Zinszahlungstag vor dem Ausübungstag unmittelbar vorausgeht oder, falls kein Zinszahlungstag vorausging, dem der dem Zinsbeginn vorausging.	(1)   Interest Rate and Interest Payment Dates. The Bonds shall bear interest at a rate of 6 % p.a. on their Principal Amount from and including 1 January 2017 (“Interest Commencement”). Interest shall be payable annually in arrears on 1 January of each year (“Interest Payment Date”), commencing on 1 January 2018. Interest shall cease to accrue with the expiration of the day which immediately precedes the day on which the Bonds become due for redemption, or, if the Conversion Right has been exercised, with the expiration of the day which immediately precedes the last Interest Payment Date prior to the Conversion Date or, if there was no Interest Payment Date, the Interest Commencement.
	(2)   Verzugszinsen. Sofern die Emittentin die Schuldverschreibungen nicht bei Fälligkeit zurückzahlt, wird der Nennbetrag bis zum Tag der tatsächlichen Rückzahlung der Schuldverschreibungen (ausschließlich) mit einem jährlichen Zinssatz von 6 % weiter verzinst. Die Geltendmachung eines weiteren Schadens ist nicht ausgeschlossen.	(2)   Default Interest. Insofar as the Issuer fails to redeem the Bonds on the day on which they become due for redemption, interest shall continue to accrue on the Principal Amount at the rate of 6 % per annum until (but excluding) the date of actual redemption of the Bonds. Claims for further damages shall not be excluded.
	(3)   Zinsperiode, Zinstagequotient. „Zinsperiode“ bezeichnet den Zeitraum ab dem Zinsbeginn (einschließlich) bis zu dem ersten Zinszahlungstag (ausschließlich) und danach ab dem jeweiligen Zinszahlungstag (einschließlich) bis zu dem nächstfolgenden Zinszahlungstag (ausschließlich). Sind Zinsen für einen Zeitraum zu berechnen, der kürzer als eine volle Zinsperiode ist oder einer Zinsperiode entspricht, werden die Zinsen gemäß Rule 251 ICMA (ACT/ACT) berechnet.	(3)   Interest Period, Interest Day Count Fraction. “Interest Period” shall mean the period from and including the Interest Commencement until but excluding the first Interest Payment Date and thereafter from and including each relevant Interest Payment Date until but excluding the next following Interest Payment Date. Where interest is to be calculated in respect of a period which is shorter than or equal to a full Interest Period, interest will be calculated on the basis of Rule 251 ICMA (ACT/ACT) 

 

     

     

    

 

	§ 3

Zahlungen	§ 3

Payments
	(1)   Währung. Sämtliche Zahlungen auf die Schuldverschreibungen werden von der Emittentin in Euro geleistet.	(1)   Currency. All payments on the Bonds shall be made by the Issuer in Euro.
	(2)   Zahlungen. Zahlungen von Kapital, Zinsen und aller sonstigen auf die Schuldverschreibungen zahlbaren Barbeträge werden von der Emittentin am jeweiligen Zahlungstag an eine Zahlstelle zur Weiterleitung an Clearstream zur Gutschrift auf die Konten der jeweiligen Kontoinhaber bei Clearstream  geleistet. Alle Zahlungen an Clearstream oder zu deren Order befreien die Emittentin in Höhe der geleisteten Zahlungen von ihren Verbindlichkeiten aus den Schuldverschreibungen.	(2)   Payments. Payments of principal, interest and all other cash payments payable on the Bonds shall be made by the Issuer on the relevant payment date to a Paying Agent for on-payment to Clearstream for credit to the accounts of the respective accountholders in Clearstream. All payments made to Clearstream or to its order shall discharge the issuer from its liability under the Bonds to the extent of the amounts so paid.
	(3)   Zahlungstag/Fälligkeitstag/Geschäftstag. Im Rahmen dieser Anleihebedingungen bedeutet „Zahlungstag“ der Tag, an dem die Zahlung tatsächlich erfolgen muss, und „Fälligkeitstag“ bezeichnet den hierin vorgesehenen Zahlungstag ohne Berücksichtigung einer solchen Verschiebung. Ein „Geschäftstag” ist jeder Tag, an dem Banken in Frankfurt am Main für den Geschäftsverkehr geöffnet sind und Zahlungen in Euro über das TARGET 2 System abgewickelt werden können. Ist ein Fälligkeitstag kein Geschäftstag, so wird die betreffende Zahlung erst am nächstfolgenden Geschäftstag als Zahlungstag geleistet, ohne dass wegen dieses Zahlungsaufschubes Zinsen oder sonstige Entschädigungen zu zahlen sind.	(3)   Payment Date/Due Date/Business Day. For the purposes of these Terms and Conditions, “payment date” means the day on which the payment is actually to be made, and “due date” means the payment date provided for herein, without taking account of such adjustment. A “Business Day” shall be any day on which banking institutions are open for business in Frankfurt am Main and payments in Euro may be settled via the TARGET 2 system. If any due date is not a Business Day, such payment will not be made until the immediately following payment date, and no interest or other reimbursements shall be paid in respect of the delay in such payment. 

 

     

     

    

 

	§ 4

Fälligkeit; Rückerwerb; Vorzeitige Rückzahlung	§ 4

Maturity; Repurchase; Early Redemption
	(1)   Fälligkeit. Die Schuldverschreibungen werden am 01. Januar 2021 („Rückzahlungstag”) zu ihrem Nennbetrag zuzüglich auf den Nennbetrag bis zum Rückzahlungstag (ausschließlich) aufgelaufener Zinsen zurückgezahlt, sofern sie nicht vorher zurückgezahlt, gewandelt oder zurückgekauft und entwertet worden sind.	(1)   Maturity. The Bonds will be redeemed with their Principal Amount on 1 January 2021 (“Maturity Date”), together with accrued interest on the Principal Amount until (but excluding) the Maturity Date, unless they have previously been redeemed or converted or purchased and cancelled.
	(2)   Rückerwerb. Die Emittentin und/oder ein mit ihr verbundenes Unternehmen ist berechtigt, jederzeit Schuldverschreibungen im Markt oder auf andere Weise zu erwerben. Die zurückerworbenen Schuldverschreibungen können gehalten, entwertet oder wieder verkauft werden.	(2)   Repurchases. The Issuer and/or any of its affiliates shall be entitled at any time to purchase Bonds in the market or otherwise. Bonds repurchased may be held, cancelled or resold.
	(3)   Vorzeitige Rückzahlung ab dem 31. Dezember 2017. Die Emittentin ist berechtigt, die Schuldverschreibungen am oder nach dem 31. Dezember 2017 insgesamt, nicht jedoch teilweise, jederzeit zu deren Nennbetrag zuzüglich der darauf bis zum Tag der Rückzahlung (ausschließlich) aufgelaufenen Zinsen zurückzuzahlen. Die vorzeitige Rückzahlung muss mindestens 30 und höchstens 60 Tage vor demjenigen Tag bekannt gemacht werden, der in der Bekanntmachung als Tag angegeben wurde, an dem die Schuldverschreibungen zur Rückzahlung fällig werden. Diese Bekanntmachung ist unwiderruflich und muss den Tag der vorzeitigen Rückzahlung sowie den letzten Tag benennen, an dem Wandlungsrechte ausgeübt werden dürfen. 	(3)   Early Redemption from 31 December 2017. On or after 31 December 2017, the Issuer may at any time redeem all, but not part of the Bonds at their Principal Amount, together with interest accrued thereon until (but excluding) the date of redemption. Notice of early redemption shall be given not less than 30 and not more than 60 days before the day fixed in the notice on which any Bonds become due for early redemption. Such notice will be irrevocable and must state the date of the early redemption and the last day on which Conversion Rights may be exercised by Bondholders. 

 

     

     

    

 

	(4)   Vorzeitige Rückzahlung aufgrund Geringfügigkeit. Die Emittentin ist berechtigt, die noch ausstehenden Schuldverschreibungen insgesamt, nicht jedoch teilweise, jederzeit zu deren Nennbetrag zuzüglich der darauf bis zum Tag der Rückzahlung (ausschließlich) aufgelaufenen Zinsen zurückzuzahlen, wenn der Gesamtnennbetrag der ausstehenden Schuldverschreibungen zu irgendeinem Zeitpunkt unter 15% der ursprünglich begebenen Schuldverschreibungen fällt. Die vorzeitige Rückzahlung muss mindestens 30 und höchstens 60 Tage vor demjenigen Tag bekannt gemacht werden, der in der Bekanntmachung als Tag angegeben wurde, an dem die Schuldverschreibungen zur Rückzahlung fällig werden. Die Regelungen des vorstehenden Absatzes gelten entsprechend.	(4)   Early Redemption for reasons of minimal outstanding Principal Amount. The Issuer may at any time redeem all, but not part of the Bonds at their Principal Amount, together with interest accrued thereon until (but excluding) the date of redemption if at any time the Principal Amount of the Bonds outstanding is below 15% of the initially issued amount of Bonds. Notice of early redemption shall be given not less than 30 nor more than 60 days before the day fixed in the notice on which any Bonds become due for early redemption. The provisions of the preceding paragraph shall apply accordingly.
	§ 5

Steuern	§ 5

Taxes
	Alle Zahlungen der Emittentin auf die Schuldverschreibungen werden ohne Abzug oder Einbehalt gegenwärtiger oder zukünftiger Steuern, Abgaben oder amtlicher Gebühren gleich welcher Art geleistet, die von einer in der Bundesrepublik Deutschland ansässigen Behörde oder für deren Rechnung oder von oder für Rechnung einer dort zur Steuererhebung ermächtigten Gebietskörperschaft oder Behörde durch Abzug oder Einbehalt an der Quelle auferlegt, erhoben oder eingezogen werden, es sei denn, ein solcher Abzug oder Einbehalt ist rechtlich vorgeschrieben. Die Emittentin ist im Hinblick auf einen solchen Abzug oder Einbehalt nicht zu zusätzlichen Zahlungen an die Anleihegläubiger verpflichtet.	All payments by the Issuer on the Bonds will be made without deduction or withholding of any present or future taxes, duties or governmental charges of any nature whatsoever imposed, levied or collected by way of deduction or withholding at source by, in or on behalf of the Federal Republic of Germany or by or on behalf of any political subdivision or authority thereof or therein having power to tax, unless such deduction or withholding is required by law. The Issuer shall not be required to make any additional payments to the Bondholders in respect of such deduction or withholding.

 

     

     

    

 

	§ 6

Wandlungsrecht	§ 6

Conversion Right
	(1)   Die Emittentin gewährt jedem Anleihegläubiger das Recht (“Wandlungsrecht”), gemäß den Bestimmungen dieses § 6 jederzeit während des Ausübungszeitraums (§ 6(3)) jede Schuldverschreibung ganz, nicht jedoch teilweise, in nennbetragslose auf den Namen lautende Stammaktien der Emittentin („Aktien“) zu wandeln. Der Wandlungspreis je Aktie („Wandlungspreis“) beträgt, vorbehaltlich einer Anpassung gemäß § 12, bis zum 31. Dezember 2016 (einschließlich) je Aktie EUR 3,00, vom 01. Januar 2017 bis zum 31. Dezember 2017 (einschließlich) je Aktie EUR 4,00 und ab dem 01. Januar 2018 je Aktie EUR 5,00.	(1)   Conversion Right. The Issuer grants each Bondholder the right (“Conversion Right”) to convert in accordance with this § 6 at any time during the Conversion Period (§ 6(3)) each Bond in whole, but not in part, into no-par ordinary registered shares of the Issuer (“Shares”). Subject to adjustments pursuant to § 12, the conversion price per Share (“Conversion Price”) amounts to, until 31 December 2016 (inclusive) EUR 3.00 per Share, from 01 January 2017 until 31 December 2018 (inclusive) EUR 4.00 per Share and from 01 January 2018 EUR 5.00 per Share.

 

     

     

    

 

	(2)   Das Wandlungsverhältnis (das „Wandlungsverhältnis“) errechnet sich durch Division des Nennbetrags einer Schuldverschreibung durch den am Ausübungstag geltenden Wandlungspreis, das anfängliche Wandelverhältnis beträgt gerundet 1:33. Die Lieferung der Aktien erfolgt gemäß § 9.	(2)   The conversion ratio (“Conversion Ratio”) shall be calculated by dividing the Principal Amount of a Bond by the Conversion Price applicable on the Conversion Date; the initial Conversion Ratio is (rounded) 1:33. Delivery of Shares shall be made in accordance with § 9.
	(3)   Ausübungszeitraum. Das Wandlungsrecht kann durch einen Anleihegläubiger nach Maßgabe dieser Anleihebedingungen jederzeit bis zum zehnten Geschäftstag vor dem Rückzahlungstag (beide Tage einschließlich) („Ausübungszeitraum”) ausgeübt werden, allerdings vorbehaltlich § 6(4) und § 6(5). Ist der letzte Tag des Ausübungszeitraums kein Geschäftstag, so endet der Ausübungszeitraum an dem Geschäftstag, der diesem Tag unmittelbar vorangeht. Fällt der letzte Tag des Ausübungszeitraums in einen Nichtausübungszeitraum, so endet der Ausübungszeitraum am letzten Geschäftstag vor dem Beginn des betreffenden Nichtausübungszeitraums.	(3)   Conversion Period. The Conversion Right may be exercised by a Bondholder at any time pursuant to these conditions ending on the tenth Business Day prior to the Maturity Date (both dates inclusive) (“Conversion Period”), however subject to the provisions of § 6(4) und § 6(5). If the last day of the Conversion Period falls on a day which is not a Business Day, the Conversion Period shall terminate on the Business Day immediately preceding such day. If the last day of the Conversion Period falls within an Exclusion Period, the Conversion Period shall terminate on the last Business Day prior to the commencement of such Exclusion Period.
	(4)   Vorzeitige Rückzahlung der Schuldverschreibungen. Für den Fall, dass die Schuldverschreibungen durch die Emittentin gemäß § 4(3) gekündigt werden, darf (vorbehaltlich der Regelungen des § 6(3)), das Wandlungsrecht bis zum Ablauf des zehnten Geschäftstages ausgeübt werden, der dem für die vorzeitige Rückzahlung bestimmten Tag vorausgeht; danach erlischt das Wandlungsrecht. Fällt der so ermittelte letzte Tag des Ausübungszeitraums in einen Nichtausübungszeitraum, so endet der Ausübungszeitraum am letzten Geschäftstag vor dem Beginn des betreffenden Nichtausübungszeitraums. Wenn Schuldverschreibungen durch Anleihegläubiger gekündigt werden, darf das Wandlungsrecht im Hinblick auf die gekündigten Schuldverschreibungen von solchen Anleihegläubigern nicht mehr ausgeübt werden.	(4)   Early Redemption of the Bonds. In the event the Bonds are called for early redemption by the Issuer pursuant to § 4(3), the Conversion Right may, subject to the provisions of § 6(3)), be exercised until the end of the tenth Business Day prior to the date fixed for early redemption; thereafter, the Conversion Right expires. If the last day of the Conversion Period so determined falls within an Exclusion Period, the Conversion Period ends on the last Business Day before such Exclusion Period. If Bonds are declared due for early redemption by Bondholders, the Conversion Right with respect to the Bonds so declared due may no longer be exercised by such Bondholders.

 

     

     

    

 

	
        (5)     Nichtausübungszeitraum.
        Die Ausübung des Wandlungsrechts ist während der nachfolgenden Zeiträume („Nichtausübungszeitraum”)
        ausgeschlossen:

         

        ·          anlässlich
        von Hauptversammlungen der Emittentin während eines Zeitraums ab der Einberufung der Hauptversammlung bis zum Tag der Hauptversammlung
        (jeweils einschließlich) endet;

         

        ·          während
        eines Zeitraums von fünf Geschäftstagen vor dem Ende des Geschäftsjahres der Emittentin;

         

        ·          während
        des Zeitraums beginnend mit dem Tag, an dem ein Bezugsangebot der Emittentin an ihre Aktionäre zum Bezug von Aktien, Schuldverschreibungen
        mit Options- oder Wandlungsrechten oder –pflichten, Gewinnschuldverschreibungen oder Genussscheinen im Bundesanzeiger veröffentlicht
        wird, bis zum letzten Tag der für die Ausübung des Bezugsrechts bestimmten Frist (jeweils einschließlich); und

         

        ·          während
        des Zeitraums beginnend mit dem Tag, an dem ein Bezugsangebot der Emittentin an ihre Aktionäre zum Bezug von Aktien, Schuldverschreibungen
        mit Options- oder Wandlungsrechten oder –pflichten, Gewinnschuldverschreibungen oder Genussscheinen im Wege einer Ad-hoc-Mitteilung
        oder ähnlichen Mitteilung (mit konkreten Angaben über das bevorstehende Bezugsangebot), bis zum letzten Tag der für
        die Ausübung des Bezugsrechts bestimmten Frist (jeweils einschließlich).
	
        (5)   Exclusion
        Period. The exercise of the Conversion Right shall be excluded during any of the following periods (“Exclusion Period”):

         

        ·        in
        connection with any shareholder assemblies of the Issuer, a period commencing on the convocation of the shareholder assembly and
        ending the day of such shareholder assembly (each inclusive);

         

        ·        a
        period of five business days prior to the end of the fiscal year of the Issuer;

         

        ·        a
        period commencing on the date on which an offer by the Issuer to its shareholders by way of a rights offering to subscribe to shares,
        debt securities with warrants or bonds with option or conversion rights or conversion obligations, profit-linked bonds or profit
        participation certificates is published in the German Federal Gazette (Bundesanzeiger), and ending on the last day of the subscription
        period (both dates inclusive); and

         

        ·        a
        period commencing on the date on which an offer by the Issuer to its shareholders by way of a rights offering to subscribe to shares,
        debt securities with warrants or bonds with option or conversion rights or conversion obligations, profit-linked bonds or profit
        participation certificates is published by way of an ad-hoc-release or a similar communication (with specific details regarding
        the imminent subscription offer), and ending on the last day of the subscription period (both dates inclusive).

 

     

     

    

 

	§ 7

Ausübung des Wandlungsrechts	§ 7

Exercise of Conversion Right
	
        (1)     Ausübungserklärung.
        Zur Ausübung des Wandlungsrechts muss der Anleihegläubiger während des Ausübungszeitraums auf eigene Kosten
        während der üblichen Geschäftszeiten an einem Geschäftstag bei einer Wandlungsstelle (§ 15) eine ordnungsgemäß
        ausgefüllte und unterzeichnete Erklärung (die „Ausübungserklärung”) unter Verwendung eines
        dann gültigen Vordrucks, der bei der Wandlungsstelle erhältlich ist, einreichen. Ausübungserklärungen sind
        unwiderruflich. Die Ausübungserklärung hat mindestens die folgenden Angaben zu enthalten:

         

        ·          Name
        und Anschrift der ausübenden Person;

         

        ·          die
        Zahl der Schuldverschreibungen, für die das Wandlungsrecht ausgeübt werden soll;

         

        ·         die
        Bezeichnung des Wertpapierdepots des Anleihegläubigers , in das die Aktien über Clearstream geliefert werden sollen;

         

        ·          gegebenenfalls
        die Bezeichnung eines auf Euro lautenden Kontos des Anleihegläubigers oder seiner Depotbank, auf das auf die Schuldverschreibungen
        zahlbare Beträge über Clearstream geleistet werden sollen; und

         

        ·          in
        dem Vordruck der Ausübungserklärung geforderte Bestätigungen und Verpflichtungserklärungen im Hinblick auf
        bestimmte Beschränkungen der Inhaberschaft der Schuldverschreibungen und/oder der Aktien.
	
        (1)   Conversion
        Notice. To exercise the Conversion Right, the Bondholder must deliver to a Conversion Agent (§ 15) at its own expense
        during normal business hours on a Business Day during the Conversion Period a duly completed and signed notice (the “Conversion
        Notice”) using a form (as amended from time to time) available from the Conversion Agent. Conversion Notices shall be
        irrevocable. The Conversion Notice shall at least include:

         

        ·        name
        and address of the exercising person;

         

        ·        the
        number of Bonds with respect to which the Conversion Right shall be exercised;

         

        ·        the
        deposit account of the Bondholder to which the Shares are to be delivered via Clearstream;

         

        ·        if
        applicable, a Euro-account of the Bondholder or its depository bank to which any payments on the Bonds are to be made via Clearstream;
        and

         

        ·        the
        certifications and undertakings set out in the form of the Conversion Notice relating to certain restrictions of the ownership
        of the Bonds and/or the Shares.

 

     

     

    

 

	(2)   Weitere Voraussetzungen für die Ausübung des Wandlungsrechts. Die Ausübung des Wandlungsrechts setzt außerdem voraus, dass die Schuldverschreibungen, für die das Wandlungsrecht ausgeübt werden soll, an die jeweilige Wandlungsstelle geliefert werden, und zwar durch Lieferung (Umbuchung) der Schuldverschreibungen auf das Konto der Wandlungsstelle bei Clearstream. Die Wandlungsstellen sind ermächtigt, die Bezugserklärung gemäß § 198 Abs. 1 AktG für den Anleihegläubiger abzugeben. Die Wandlungsstellen sind von den Beschränkungen des § 181 BGB befreit.	(2)   Further Requirements for Exercise of Conversion Right. The exercise of the Conversion Right further requires that the Bonds to be converted be delivered to the respective Conversion Agent by transferring (book-entry transfer) the Bonds to the Clearstream account of the Conversion Agent. The Conversion Agents shall be authorized to deliver the subscription certificate pursuant to sec. 198 para. 1 of the German Stock Corporation Act (Aktiengesetz, AktG) on behalf of the Bondholder. The Conversion Agents are exempt from the restrictions of sec. 181 of the German Civil Code (Bürgerliches Gesetzbuch, BGB).
	(3)   Prüfung der Ausübungserklärung. Nach Erfüllung sämtlicher in § 7(1) und § 7(2) genannten Voraussetzungen für die Ausübung des Wandlungsrechts prüft die jeweilige Wandlungsstelle, ob die Zahl der an die Wandlungsstelle gelieferten Schuldverschreibungen der in der Ausübungserklärung angegebenen Zahl von Schuldverschreibungen entspricht. Soweit die in der Ausübungserklärung angegebene Zahl von Schuldverschreibungen die Zahl der tatsächlich gelieferten Schuldverschreibungen über- oder unterschreitet, wird die Wandlungsstelle, je nachdem, welche Zahl niedriger ist, entweder (i) diejenige Gesamtzahl von Aktien, die der in der Ausübungserklärung angegebenen Zahl von Schuldverschreibungen entspricht, oder (ii) diejenige Gesamtzahl von Aktien, die der Zahl der tatsächlich gelieferten Schuldverschreibungen entspricht, von der Emittentin beziehen und an den Anleihegläubiger liefern. Verbleibende Schuldverschreibungen werden an den Anleihegläubiger auf dessen eigene Kosten zurückgeliefert.	(3)   Review of Conversion Notice. Upon fulfilment of all requirements specified in § 7(1) and § 7(2) for the exercise of the Conversion Right, the respective Conversion Agent will verify whether the number of Bonds delivered to the Conversion Agent is identical to the number of Bonds specified in the Conversion Notice. In the event of any excess or shortfall, the Conversion Agent shall subscribe from the Issuer and deliver to the Bondholder the lower of (i) such total number of Shares which corresponds to the number of Bonds set forth in the Conversion Notice, or (ii) such total number of Shares which corresponds to the number of Bonds in fact delivered. Any remaining Bonds will be redelivered to the Bondholder at its own expense.

 

     

     

    

 

	(4)   Ausübungstag. Das Wandlungsrecht ist an dem Geschäftstag wirksam ausgeübt, an dem sämtliche in § 7(1) und § 7(2) genannten Voraussetzungen für die Ausübung des Wandlungsrechts erfüllt sind und die Emittentin die Bezugserklärung erhalten hat (der „Ausübungstag”). Für den Fall, dass die in § 7(1) und § 7(2) genannten Voraussetzungen an einem Tag erfüllt worden sind, der in einen Nichtausübungszeitraum fällt, ist der Ausübungstag der erste Geschäftstag nach dem Ende dieses Nichtausübungszeitraums, sofern auch dieser Tag noch in den Ausübungszeitraum fällt; andernfalls ist das Wandlungsrecht nicht wirksam ausgeübt.	(4)   Conversion Date. The Conversion Right shall be validly exercised on the Business Day on which all of the conditions precedent specified in § 7(1) and § 7(2) for the exercise of the Conversion Right have been fulfilled and the Issuer has received the subscription certificate (the “Conversion Date”). In the event that the conditions precedent specified in § § 7(1) and § 7(2) are fulfilled on a day which falls within an Exclusion Period, then the Conversion Date shall be the first Business Day after the end of such Exclusion Period provided that such day still falls within the Conversion Period; otherwise, the Conversion Right shall not have been validly exercised.
	(5)   Kosten der Ausübung. Sämtliche Kosten, die durch die Ausübung des Wandlungsrechts und/oder durch die Lieferung der Aktien an den betreffenden Anleihegläubiger oder die in der Ausübungserklärung bezeichnete Person durch oder für Rechnung der Emittentin anfallen, werden von der Emittentin getragen. Seine Bankspesen und sonstige ihm entstehende Kosten trägt der Anleihegläubiger.	(5)   Conversion Costs. All costs arising on exercise of the Conversion Right and/or delivery of Shares by, or on behalf of, the Issuer to the relevant Bondholder or the person designated in the Conversion Notice shall be borne by the Issuer. All banking and other fees shall be borne by the bond holder..

 

     

     

    

 

	§ 8

Wandlung durch die Emittentin	§ 8

Conversion by the Issuer
	(1)   Wandlung bei Fälligkeit. Die Emittentin ist berechtigt, aber nicht verpflichtet, den Nominalbetrag einiger oder aller Schuldverschreibungen bei Fälligkeit nicht zurückzuzahlen, sondern stattdessen Aktien zu liefern („Pflichtwandlung“). Die Lieferung von Aktien anstelle der Rückzahlung ist mit einer Frist von mindestens 30 und höchstens 60 Tagen vor Rückzahlungstag anzukündigen.	(1)   Conversion upon Maturity. The Issuer has the right, but not the obligation, not to repay the principal of several or all Bonds upon maturity, but to deliver Shares instead (“Mandatory Conversion”). The delivery of Shares in lieu of a repayment shall be announced at least 30 days but no more than 60 days before the day of the repayment.
	
        (2)   Weiteres
Wandlungsrecht. Die Emittentin ist ferner zeitlich unbefristet zur Pflichtwandlung berechtigt, nachdem der Kurs der Aktie
der Emittentin EUR 5,00 einmalig überschreitet („Pflichtwandlungsauslösungspreis“). Maßgeblich
ist der volumengewichtete arithmetische Mittelwert der an der Frankfurter Wertpapierbörse im Parkett- und XETRA-Handel festgestellten
Schlusskurse der Aktie der Gesellschaft während eines zusammenhängenden Zeitraums von fünf Handelstagen. Der Pflichtwandlungsauslösungspreis
ist entsprechend § 12 anzupassen. Die Pflichtwandlung ist in diesem Fall mit einer Frist von mindestens 30 und höchstens
60 Kalendertagen zu erklären.	(2)   Additional Conversion Right. The Issuer further has the right, for a non-limited period of time, to Mandatory Conversion, any time after the stock price of the Issuer’s shares exceeds EUR 5.00 at least once (“Mandatory Conversion Trigger Price”). The initial Conversion Price amounts in this case to EUR 5.00 per Share. The relevant stock price shall be the volume weighted arithmetic average of the closing price determined on the floor and XETRA trade of the Frankfurt Stock Exchange within a continuous period of five trading days. The Mandatory Conversion Trigger Price shall be subject to the adjustments pursuant to § 12. In this case, the Mandatory Conversion shall be prior announced at least 30 days but no more than 60 days.

 

     

     

    

 

	(3)   Anfänglicher Wandlungspreis. Der anfängliche Wandlungspreis beträgt in den Fällen dieses § 8 EUR 5,00 je Aktie. 	(3)   Initial Conversion Price. The Initial Conversion Price shall amount to EUR 5.00 per share in the cases of this § 8.
	
        (4)   Durchführung.
        Zur Durchführung der Pflichtwandlung müssen die Schuldverschreibungen, für die die Pflichtwandlung durchgeführt
        wird, der Wandlungsstelle durch die Anleihegläubiger übergeben werden. Die Schuldverschreibungen werden an die Wandlungsstelle
        zur Verwahrung für Rechnung des Anleihegläubigers und Weiterleitung an die Emittentin übergeben.

         

        Jeder Anleihegläubiger
        beauftragt und bevollmächtigt die Wandlungsstelle, die Pflichtwandlung der übergebenen Schuldverschreibungen in Aktien
        nach Maßgabe und in Übereinstimmung mit der durch diesen Anleihegläubiger abgegebenen Wandlungserklärung durchzuführen.
        Der Anleihegläubiger ermächtigt die Wandlungsstelle insbesondere, die Bezugserklärung gemäß § 198
        Abs. 1 AktG zu unterzeichnen. Diese Ermächtigung ist unbedingt und unwiderruflich und wirkt gegenüber jeden Anleihegläubiger.

         

        Die Aktien werden von der Emittentin
        der Wandlungsstelle zur Übergabe und Übereignung an den Anleihegläubiger oder eine von dem Anleihegläubiger
        zuvor schriftlich bestimmte Person übergeben.
	
        (4)   Execution.
        For the purpose of the Mandatory Conversion, the Bonds to be mandatorily converted must be transferred to the Conversion Agent
        by the Bondholders. The Bonds shall be transferred to the Conversion Agent to be held for the account of the Bondholder for transfer
        to the Issuer.

         

        Each Bondholder instructs and
        authorizes the Conversion Agent to mandatorily convert the delivered Bonds into Shares pursuant to and in conformity with the conversion
        notice issued by the respective Bondholder. In particular, each Bondholder authorizes the Conversion Agent to sign the exercise
        notice pursuant to sec. 198 para. 1 on behalf of the Bondholder. This authorization is unconditional and irrevocable
        and is binding on each Bondholder.

         

        The Shares will be transferred
        by the Issuer to the Conversion Agent for delivery and transfer to the Bondholder or a person designated in writing by the Bondholder.

 

     

     

    

 

	(5)   Weitere Regelungen. Auf die Wandlung durch die Emittentin finden die Regelung über die Wandung durch den Anleihegläubiger mit Ausnahme der Regelungen über den Ausübungszeitraum entsprechend Anwendung. 	(5)   Further Provisions. The provisions regarding the conversion by the Bondholders shall apply mutatis mutandis to the conversion by the Issuer, with the exception of the provisions regarding the Conversion Period.
	(6)   Zahlungsansprüche. Nach Erklärung der Pflichtwandlung durch die Emittentin kann der Anleihegläubiger nur noch die Lieferung von Aktien verlangen. Insbesondere kann er von der Emittentin keine Barzahlung gem. § 10 sowie keine Zinszahlungen für einen über den Zeitpunkt der Erklärung der Pflichtwandlung hinausgehenden  Zeitraum verlangen, wenn er seinen Verpflichtungen nach diesem § 8 nicht nachgekommen ist und die Emittentin in der Folge gehindert ist, Aktien aus bedingtem Kapital an den Anleihegläubiger auszugeben. Im Übrigen gilt § 10 entsprechend.	(6)   Claims for Payment. After announcement of the Mandatory Conversion by the Issuer, the rights of the Bondholders are limited to delivery of shares. In particular, the Bondholder may neither request cash payment in lieu of shares pursuant to § 10, nor any interest payment for any period after the point in time of the announcement of the Mandatory Conversion, if the Bondholder has not complied with the obligations under this § 8 and the Issuer was consequently precluded to issue Shares from conditional capital to the Bondholders. Subject to the foregoing, § 10 applies accordingly.
	§ 9

Lieferung der Aktien; Ausgleich von Bruchteilen von Aktien	§ 9

Delivery of Shares; Compensation for Fractions of Shares
	(1)   Lieferung der Aktien; Bruchteile von Aktien. Nach Ausübung des Wandlungsrechts werden ausschließlich ganze Aktien geliefert. Ein Anspruch auf Lieferung von Bruchteilen von Aktien besteht nicht. Soweit die jeweilige Wandlungsstelle festgestellt hat (ohne dazu verpflichtet zu sein), dass für denselben Anleihegläubiger mehrere Schuldverschreibungen zur gleichen Zeit gewandelt wurden, und soweit sich für eine oder mehrere Schuldverschreibungen bei der Durchführung der Wandlung Bruchteile von Aktien ergeben, werden alle sich aus der Wandlung dieser Schuldverschreibungen ergebenden Bruchteile von Aktien addiert und die sich infolge der Addition der Bruchteile etwa ergebenden ganzen Aktien an den betreffenden Anleihegläubiger geliefert. Die zu liefernden Aktien werden so bald wie möglich nach dem Ausübungstag auf das von dem betreffenden Anleihegläubiger in der Ausübungserklärung angegebene Wertpapierdepot übertragen. Bis zur Übertragung der Aktien bestehen keine Ansprüche aus den Aktien.	(1)   Delivery of Shares; Fractions of Shares. Upon any exercise of the Conversion Right, only full Shares shall be delivered. Fractions of Shares may not be claimed. To the extent that the respective Conversion Agent has ascertained (without any obligation to do so) that several Bonds have been converted at the same time for the same Bondholder and to the extent that any conversion of one or several Bonds results in fractions of Shares, the fractions of Shares resulting from the conversion of such Bonds shall be aggregated and any full Shares resulting from such aggregation of fractions of Shares shall be delivered to the respective Bondholder. The Shares to be delivered shall be transferred as soon as practicable after the Conversion Date to the securities deposit account of the Bondholder designated in the Conversion Notice. Until delivery of the Shares, no rights may be exercised from the Shares.

 

     

     

    

 

	(2)   Verbleibende Bruchteile von Aktien. Verbleibende Bruchteile von Aktien werden nicht geliefert. Ein Ausgleich in Geld findet nicht statt.	(2)   Remaining Fractions of Shares. Remaining fractions of Shares shall not be delivered and shall not be compensated in cash. .
	(3)   Steuern. Die Lieferung von Aktien gemäß § 9(1) erfolgt nur, sofern der Anleihegläubiger etwaige Steuern, Abgaben oder amtliche Gebühren zahlt, die im Zusammenhang mit der Ausübung des Wandlungsrechts oder der Lieferung der Aktien gemäß  § 9(1) anfallen. 	(3)   Taxes. Delivery of Shares pursuant to § 9(1) is subject to payment by a Bondholder of any taxes, duties or governmental charges which may be imposed in connection with the exercise of the Conversion Right or the delivery of the Shares pursuant to § 9(1). 

 

     

     

    

 

	§ 10

Barzahlung statt Lieferung der Aktien in bestimmten Fällen	§ 10

Cash Payment in Lieu of Delivery of Shares in Certain Circumstances
	(1)   Barzahlung statt Lieferung der Aktien. Falls die Emittentin rechtlich gehindert ist, Aktien aus bedingtem Kapital bei Ausübung des Wandlungsrechts durch einen Anleihegläubiger zu begeben, ist sie verpflichtet, an den Anleihegläubiger an Stelle der Lieferung der Aktien, auf die der Anleihegläubiger ansonsten gemäß § 6(1) einen Anspruch hätte, aber an deren Ausgabe die Emittentin gehindert ist, einen Barbetrag in Euro („Barzahlung“) zu zahlen. Die Barzahlung für eine Aktie errechnet sich aus dem Betrag des volumengewichteten arithmetischen Mittels der XETRA Kurse innerhalb eines Zeitraums von fünf aufeinanderfolgenden Handelstagen beginnend an dem zweiten auf den Benachrichtigungstag (§ 10(2)) folgenden Handelstag („Berechnungszeitraum“), gerundet auf den nächsten vollen Cent, wobei EUR 0,005 abgerundet werden. Ein Anspruch des Anleihegläubigers auf Lieferung bzw. Ausgleich von Bruchteilen von Aktien besteht nicht. Die Barzahlung wird spätestens am dritten Geschäftstag nach dem letzten Tag des Berechnungszeitraums durch die Emittentin geleistet. Auf diesen Betrag werden keine Zinsen geschuldet. § 1(1) findet entsprechende Anwendung. Steuern, Abgaben und amtliche Gebühren können von einer etwaigen Zahlung abgezogen werden, sofern der Anleihegläubiger solche Steuern, Abgaben oder amtlichen Gebühren nicht zuvor gezahlt hat.	(1)   Cash Payment in Lieu of Delivery of Shares. If due to legal reasons the Issuer is unable to issue Shares from conditional capital upon the exercise of a Conversion Right by a Bondholder, the Issuer shall be obligated to pay to the Bondholder a cash amount in Euro (the “Cash Payment”) in lieu of the delivery of the Shares to which the Bondholder is otherwise entitled pursuant to § 6(1), but which the Issuer is unable to issue. The Cash Payment relating to one Share shall be calculated as an amount equal to the volume-weighted arithmetic mean value of the XETRA-Quotations on the five consecutive Trading Days beginning on the second Trading Day following the Notification Day (§ 10(2)) (the “Calculation Period”), rounded to the nearest full cent with EUR 0.005 being rounded downwards. Fractions of Shares or compensation therefore shall be excluded. The Cash Payment shall be effected by the Issuer not later than on the third Business Day following the last day of the Calculation Period. No interest shall be payable with respect to the Cash Payment. § 1(1) and § 9(3) shall apply accordingly. Taxes, duties and governmental charges may be deducted from a payment obligation, unless the Bondholder has already paid such taxes, duties or governmental charges.
	(2)   Benachrichtigung. Die Emittentin wird den Anleihegläubiger, der eine Wandlungserklärung abgegeben hat, nicht später als am siebten Geschäftstag nach dem Wandlungstag (schriftlich, per Telefax, oder auf andere Art und Weise unter Benutzung der in der Wandlungserklärung angegebenen Anschrift) benachrichtigen, ob die Emittentin eine Barzahlung zu leisten hat (der Tag, an dem die Emittentin eine solche Nachricht abschickt, wird als „Benachrichtigungstag“ bezeichnet).	(2)   Notification. The Issuer shall notify the Bondholder who has delivered a Conversion Notice no later than on the seventh Business Day after the Conversion Date (in writing, by telefax, or otherwise using the address stated in the Conversion Notice) whether the Issuer has to effect a Cash Payment (the day on which such notification is dispatched by the Issuer being the “Notification Day”).

 

     

     

    

 

	§ 11

Bereitstellung von Aktien; Lieferung alter Aktien; Dividenden	§ 11

Procurement of Shares; Delivery of Existing Shares, Dividends
	(1)   Bedingtes Kapital. Die Aktien werden nach Durchführung der Wandlung aus einem bedingten Kapital der Emittentin stammen. Unbeschadet § 10 ist die Emittentin berechtigt, nach freiem Ermessen an Anleihegläubiger statt Aktien aus dem bedingten Kapital bestehende Aktien zu liefern (oder liefern zu lassen), vorausgesetzt, solche Aktien gehören derselben Gattung an wie die andernfalls zu liefernden Aktien aus bedingtem Kapital (ausgenommen die Dividendenberechtigung, die jedoch nicht geringer sein darf als die Dividendenberechtigung der jungen Aktien, die anderenfalls an den betreffenden Anleihegläubiger zu liefern gewesen wären), und vorausgesetzt, die Lieferung solcher Aktien kann rechtmäßig erfolgen und beeinträchtigt nicht die Rechte des betreffenden Anleihegläubigers (im Vergleich zur Lieferung von Aktien aus bedingtem Kapital).	(1)   Conditional Capital. Upon execution of the conversion, new Shares will be issued out of a conditional capital of the Issuer. The Issuer shall, notwithstanding § 10, at its sole discretion be entitled to deliver (or cause to be delivered) at the Conversion Price Shares to any Bondholder instead of the delivery of new Shares out of conditional capital, provided that in case of (i) and (ii) such Shares shall be of the same class as the Shares otherwise to be delivered from conditional capital except for a different dividend entitlement (which shall be no less than the dividend entitlement of the new Shares that would have otherwise been delivered to the relevant Bondholder) and that such delivery of such Shares can be legally effected and does not impair the rights of the relevant Bondholders (in comparison to a delivery of new Shares).
	(2)   Dividenden. Aktien, die aufgrund der Wandlung aus bedingtem Kapital (§ 11(1)) ausgegeben werden, sind ab Beginn des Geschäftsjahres der Emittentin, in dem die Aktien ausgegeben werden, für dieses und alle folgenden Geschäftsjahre der Emittentin dividendenberechtigt, und können zunächst als „junge“ Aktien eine eigene Wertpapierkennung haben.	(2)   Dividends. Shares issued upon conversion out of conditional capital (§ 11(1)) are entitled to dividends (if any) for the then current and all following business years as from the beginning of the business year of the Issuer in which such Shares are issued, and may initially have a separate securities code.

 

     

     

    

 

	§ 12

Verwässerungsschutz	§ 12

Anti-Dilution Protection
	
        (1)   Bezugsrecht
        für Aktionäre

         

        Wenn die Emittentin bis zur
        letzten Möglichkeit der Ausübung des Wandlungsrechts unter Gewährung von Bezugsrechten an ihre Aktionäre gemäß
        § 186 AktG (i) ihr Grundkapital durch Ausgabe neuer Aktien gegen Einlagen erhöht, oder (ii) weitere Schuldverschreibungen
        mit Options- oder Wandlungsrechten oder -pflichten, Gewinnschuldverschreibungen oder Genussscheine begibt oder garantiert oder
        eigene Aktien veräußert, ist jedem Anleihegläubiger, der zu Beginn des entsprechenden Nichtausübungszeitraums
        sein Wandlungsrecht noch nicht wirksam ausgeübt hat, vorbehaltlich der weiteren Bestimmungen des § 12(1), ein Bezugsrecht
        in dem Umfang einzuräumen, wie es ihm zustünde, wenn eine Ausübung des Wandlungsrechts an dem Geschäftstag
        unmittelbar vor dem Ex-Tag erfolgt wäre.
	
        (1)   Preemptive
        Rights for Shareholders.

         

        If the Issuer until the last
        date on which the Conversion Rights may be executed subject to preemptive rights of its shareholders pursuant to sec. 186
        of the German Stock Corporation Act (Aktiengesetz), (i) increases its share capital by issuing new shares against capital contributions;
        or (ii) issues or guarantees further debt securities with warrants or bonds with option or conversion rights or conversion obligations,
        profit-linked bonds or profit participation certificates or sells own shares, each Bondholder, who at the beginning of the relevant
        Excluded Period has not yet exercised its Conversion Right, shall, subject to the further provisions of § 12(1), be granted
        a pre-emptive right equal to the right it would have been entitled to had the Conversion Right been exercised on the Business Day
        immediately preceding the Ex-Date.

	„Ex-Tag” ist der erste Handelstag, an dem die Aktien „ex Bezugsrecht”, „ex Dividende“ oder ex eines anderen Rechts gehandelt werden.	“Ex-Date” shall mean the first Trading Day on which the Shares are traded “ex subscription right”, “ex dividend” or ex any other right giving rise to an adjustment of the quoted price in the XETRA-System.

 

     

     

    

 

	
        Anstelle der Einräumung
        eines Bezugsrechts kann die Emittentin eine Anpassung des Wandlungspreises vornehmen:

         

        Der Wandlungspreis wird um den
        Betrag ermäßigt, der dem volumengewichteten arithmetischen Mittel der Kurse des einer Aktie gewährten Bezugsrechts
        an allen Börsenhandelstagen an der Frankfurter Wertpapierbörse entspricht.

         

        Findet kein Bezugsrechtshandel
        an der Frankfurter Wertpapierbörse statt, wird der Wert des Bezugsrechts wie folgt verbindlich ermittelt:

         

        BR = (Ka - Kn) / (BV + 1)

         

        BR: Bezugsrecht

         

        Ka: Börsenkurs der alten
        Aktien

         

        Kn: Ausgabekurs der neuen Aktien

         

        BV: Bezugsverhältnis

         

        Der Börsenkurs „Ka“
        der alten Aktien wird wie folgt ermittelt: Volumengewichteter arithmetischer Mittelwert der an der Frankfurter Wertpapierbörse
        im Parkett- und XETRA-Handel festgestellten Schlusskurse der Aktie der Emittentin während der Bezugsfrist.
	
        Instead of granting a preemptive
        right, the Issuer may elect to adjust the Conversion Price:

         

        The Conversion Price shall be
        reduced by the amount equal to the volume-weighted arithmetic average of the stock prices of a subscription right granted by one
        share on all trading days of the Frankfurt Stock Exchange.

         

        If subscription rights are not
        traded at the Frankfurt Stock Exchange, the value of the subscription right shall be determined with binding effect as follows:

         

        BR = (Ka - Kn) / (BV + 1)

         

        BR: Subscription RightKa: Stock
        price of old shares

         

        Kn: Issue price of New Shares

         

        BV: Subscription ratio

         

        The stock price “Ka”
        of the old shares shall be determined as follows: volume-weighted arithmetic mean of the closing prices of the Issuer’s shares
        determined in the floor and XETRA trade of the Frankfurt Stock Exchange during the subscription period.

	
        (2)   Kapitalerhöhung
        aus Gesellschaftsmitteln. Im Falle einer Kapitalerhöhung der Emittentin aus Gesellschaftsmitteln gemäß § 207
        AktG (d.h. durch Umwandlung von Kapitalrücklagen oder Gewinnrücklagen) unter Ausgabe neuer Aktien vor Ablauf des Ausübungszeitraums
        oder einem früheren Rückzahlungstag wird der Wandlungspreis mit dem nach der nachstehenden Formel errechneten Wert multipliziert:

         

        

         

        Dabei ist

         

        N0: die
        die Anzahl der ausgegebenen Aktien vor der Kapitalerhöhung aus Gesellschaftsmitteln, und

         

        Nn: die
        Anzahl der ausgegebenen Aktien nach der Kapitalerhöhung aus Gesellschaftsmitteln.
	
        (2)   Capital
        Increase from Company Reserves. In the event of a capital increase of the Issuer from company reserves (i.e., capital reserves
        (Kapitalrücklagen) or retained earnings (Gewinnrücklagen)) pursuant to sec. 207 AktG (Kapitalerhöhung aus Gesellschaftsmitteln)
        by issuing new shares prior to the expiration of the Conversion Period or an earlier date of redemption, the Conversion Price shall
        be multiplied by the number determined by the following formula:

         

        

         

        Whereas

         

        N0: the
        number of issued Shares before the increase of share capital from company reserves, and

         

        Nn: the
        number of issued Shares after the increase of share capital from company reserves.

 

     

     

    

 

	
        (3)   Änderung
        der Zahl der Aktien ohne Änderung des Grundkapitals; Kapitalherabsetzung. Sofern bis zur letzten Möglichkeit der
        Ausübung des Wandlungsrechts (i) die Zahl der ausstehenden Aktien ohne Änderung des Grundkapitals der Emittentin geändert
        wird (z.B. in Folge eines Aktiensplits oder einer Zusammenlegung von Aktien (umgekehrter Aktiensplit)), oder (ii) das Grundkapital
        der Emittentin durch Zusammenlegung von Aktien herabgesetzt wird, gilt § 12(2) entsprechend.

         

        Im Falle einer Herabsetzung
        des Grundkapitals der Emittentin allein durch Herabsetzung des auf die einzelne Aktie entfallenden anteiligen Betrages des Grundkapitals
        bleibt das Wandlungsverhältnis unverändert, jedoch mit der Maßgabe, dass nach einem solchen Ereignis zu liefernde
        Aktien mit ihrem jeweiligen neuen, auf die einzelne Aktie entfallenden anteiligen Betrag des Grundkapitals geliefert werden.

         

        Ist die Kapitalherabsetzung
        mit einer Kapitalrückzahlung oder einem entgeltlichen Erwerb eigener Aktien verbunden, bleibt der Wandlungspreis und damit
        das Wandlungsverhältnis unverändert.
	
        (3)   Changes
        in the Number of Shares without Change in the Share Capital; Capital Decrease. If until the last date on which the Conversion
        Rights may be executed (i) the number of outstanding Shares is being changed without a change in the aggregate amount of the Issuer’s
        share capital (e.g. by means of splitting or combining shares (reverse split)) or (ii) the Issuer decreases its share capital by
        combining shares, § 12(2) shall apply mutatis mutandis.

         

        In the event of a decrease of
        the Issuer’s share capital which is solely the result of a reduction of the amount in the share capital represented by each
        Share, the Conversion Price shall remain unchanged provided that Shares to be delivered after the occurrence of such an event shall
        be delivered with their respective new portion of the share capital allotted to them.

         

        If the capital decrease is connected
        with a capital repayment or a share repurchasing, the Conversion Price and therefore the Conversion Ratio remain unaffected.

 

     

     

    

 

	(4)   Ausschüttungen. Falls die Emittentin bis zur letzten Möglichkeit der Ausübung des Wandlungsrechts an ihre Aktionäre Vermögenswerte, insbesondere Dividenden, gewährt, mindert sich der Wandlungspreis um den Betrag der Brutto-Ausschüttung je Aktie, soweit diese 4 % des anteiligen Betrags der Aktie am Grundkapital p.a. übersteigt.	(4)   Distributions. If the Issuer until the last date on which the Conversion Rights may be executed distributes, allots or grants to its shareholders (i) assets, in particular dividends, the Conversion Price will be reduced by the amount of the gross distribution per Share, insofar as this exceeds 4% of the pro rata participation of the share in the registered capital p.a
	(5)   Andere Ereignisse. Bei einer Maßnahme nach dem Umwandlungsgesetz oder bei dem Eintritt eines anderen Ereignisses, das die Aktien, das Wandlungsverhältnis oder den Wandlungspreis berühren könnte, bleibt das Wandlungsverhältnis unverändert. Es wer-den insbesondere keine Anpassungen vorgenommen im Hinblick auf (i) die Ausgabe von Aktienoptionen an Mitglieder des Vorstands, des Aufsichtsrats oder Mitarbeiter der Emittentin oder ihrer Tochtergesellschaften im Rahmen von Aktienoptions-Programmen der Emittentin oder (ii) die Ausgabe von Aktien aus am Emissionstag bereits existierenden bedingtem oder genehmigten Kapital.	(5)   Other events. In the event of a measure pursuant to the German Transformation Act (Umwandlungsgesetz, UmwG) or in any other event which may affect the Shares, the Conversion Ratio or the Conversion Price, the Conversion Ratio shall remain unaffected. In particular, no adjustments shall be made in relation to (i) the issuance of stock options for members of the management board or supervisory board or employees of the Issuer or its subsidiaries under stock option programs of the Issuer or (ii) the issuance of Shares out of conditional or authorized capital existing on the Issue Date.
	(6)   Wirksamkeit; Ausschluss. Anpassungen nach Maßgabe dieses § 12 werden mit Wirkung zum Beginn des Ex-Tages wirksam. Anpassungen nach Maßgabe dieses § 12 werden nicht vorgenommen, sofern der Ex-Tag im Falle von Schuldverschreibungen, für die das Wandlungsrecht ausgeübt wurde, nach dem Tag liegt, an dem die Aktien dem Depotkonto des betreffenden Anleihegläubigers gemäß § 9(1) gutgeschrieben wurden, oder, im Falle von nicht gewandelten Schuldverschreibungen, nach dem letzten Tag des Wandlungszeitraums bzw. nach dem früheren für die Rückzahlung festgelegten Tag.	(6)   Effectiveness; Preclusion. Adjustments pursuant to this § 12 shall become effective with the Ex-Date. Adjustments pursuant to this § 12 will not be made if the Ex-Date is, in the case of Bonds in respect of which the Conversion Right has been exercised, the date on which the Shares have been delivered pursuant to § 9(1) to the securities deposit account of the Bondholder or, in the case of Bonds not converted, later than the last day of the Conversion Period or the earlier date fixed for redemption, as the case may be.

 

     

     

    

 

	(7)   Auf- bzw. Abrundung und Lieferung. Der Wandlungspreis, der sich aufgrund einer Anpassung gemäß § 12 ergibt, wird auf vier Nachkommastellen aufgerundet; das Wandlungsverhältnis, das sich aufgrund des so angepassten und gerundeten Wandlungspreises errechnet, wird (vor einer etwaigen Addition von Aktien) auf vier Nachkommastellen abgerundet. Die sich daraus ergebende Zahl von Aktien wird gemäß § 9(1) geliefert. Bruchteile von Aktien werden gemäß § 9(1) zusammengefasst. Verbleibende Bruchteile von Aktien werden nicht ausgeglichen.	(7)   Rounding up or down and Delivery. The Conversion Price determined by an adjustment pursuant to § 12 shall be rounded upwards to four decimal points; the Conversion Ratio, calculated on the basis of the Conversion Price so adjusted and rounded, shall be rounded downwards to four decimal points (before any aggregation of Shares). The number of Shares resulting therefrom shall be delivered pursuant to § 9(1). Fractions of Shares shall be aggregated in accordance with § 9(1). Remaining fractions of Shares shall not be compensated.
	
        (8)   Zuständigkeit;
        Bekanntmachung. Anpassungen gemäß diesem § 12 werden durch die Wandlungsstelle oder, nach Wahl der Anleiheschuldnerin,
        einen von der Anleiheschuldnerin auf ihre Kosten zu bestellenden geeigneten Dritten vorgenommen und sind (sofern nicht ein offensichtlicher
        Fehler vorliegt) für alle Beteiligten bindend.

         

        Jedwede Anpassung des Wandlungsverhältnisses
        gemäß diesem § 12 darf nicht zu einem Wandlungspreis führen, der niedriger ist als der auf die einzelne Aktie
        entfallende anteilige Betrag am Grundkapital der Emittentin.
	
        (8)   Responsibility;
        Notice. Adjustments pursuant to this § 12 shall be made by the Conversion Agent or, at the option of the Issuer, an appropriate
        third party appointed by the Issuer at the expense of the Issuer and will be binding on all parties involved, absent an obvious
        mistake.

         

        Any adjustment to the Conversion
        Price pursuant to this § 12 shall not cause the Conversion Price to fall below the nominal participation in the registered
        capital represented by each Share.

 

     

     

    

 

	(9)   Bekanntmachung von Anpassungen. Die Emittentin wird eine Anpassung des Wandlungsverhältnisses, des Wandlungspreises und/oder jede andere Anpassung der Bedingungen des Wandlungsrechts in Übereinstimmung mit § 16 bekannt machen. 	(9)   Disclosure of adjustments. The Issuer shall disclose any adjustments to the Conversion Ratio, the Conversion Price and/or any other adjustments to the terms and conditions of the conversion right pursuant to § 16.
	§ 13

Rang	§ 13

Status
	Rang. Die Anleihegläubiger treten mit ihrem Anspruch auf Rückzahlung des Nominalbetrages und ihrem Anspruch auf fällige Zinszahlungen dergestalt im Rang hinter die Forderungen aller bestehenden und künftigen Gläubiger der Emittentin zurück, dass sie erst nach Befriedigung sämtlicher übrigen nicht nachrangigen Gläubiger (und, soweit ein Liquidationsüberschuss oder ein die sonstigen Verbindlichkeiten übersteigendes Vermögen der Emittentin hierfür zur Verfügung steht, nur zugleich mit, im Rang jedoch vor den Einlagerückgewähransprüchen der Gesellschafter der Emittentin) Erfüllung ihrer Ansprüche, also Zahlung verlangen können. Der Rangrücktritt gilt dabei, solange und soweit durch eine teilweise oder vollständige Befriedigung der im Rang zurückgetretenen Ansprüche der Anleihegläubiger eine Überschuldung oder aber eine Zahlungsunfähigkeit der Emittentin im insolvenzrechtlichen Sinne entsteht oder zu entstehen droht; die im Rang zurückgetretenen Ansprüche der Anleihegläubiger gelten für diesen Fall als zinslos gestundet. Der Nachrang gilt auch im Insolvenzverfahren..	(1)   Status. The rights of the Bondholders regarding repayment of the principal and interest are subordinated to the rights of all current and future third party creditors of the Issuer, and their claims, i.e. payments, will only be satisfied after all other non-subordinate creditors are satisfied (and, insofar as liquidation proceeds or assets of the Issuer which exceed the remaining liabilities are available for this purpose, will be satisfied only together with, but ranking above, the claims of the Issuer’s shareholders regarding the repayment of the shares). The subordination shall apply as long as and insofar as a partial or full satisfaction of the subordinated claims of the Bondholders would cause or threaten an over-indebtedness or illiquidity of the Issuer pursuant to applicable insolvency law; the subordinated claims of the Bondholders shall be considered as deferred without interest. The subordination shall also apply in insolvency proceedings.

 

     

     

    

 

	§ 14

Kündigung durch Anleihegläubiger	§ 14

Termination by Bondholders
	(1)   Kündigungsrecht. Jeder Anleihegläubiger ist berechtigt, seine sämtlichen Ansprüche aus den Schuldverschreibungen durch Abgabe einer Kündigungserklärung („Kündigungserklärung”) gegenüber einer Zahlstelle zu kündigen und fällig zu stellen und Rückzahlung des Nennbetrags zuzüglich der darauf bis zum Tag der tatsächlichen Rückzahlung (ausschließlich) aufgelaufenen Zinsen zu verlangen, wenn	(1)   Right to Terminate. Each Bondholder is entitled to declare due and payable by submitting a notice of termination (“Termination Notice”) to a Paying Agent its entire claims arising from the Bonds and demand payment of their Principal Amount, plus interest accrued on the Principal Amount until (but excluding) the day of actual redemption, if
	die Emittentin, gleichgültig aus welchen Gründen, innerhalb von 30 Tagen nach dem betreffenden Zahlungstrag irgendwelche Beträge, die fällig und auf die Schuldverschreibungen zahlbar sind, nicht zahlt.	the Issuer, for any reason whatsoever, fails within310 days after the relevant payment date to pay any amounts due and payable on the Bonds; or
	(2)   Erlöschen des Kündigungsrechts. Das Kündigungsrecht der Anleihegläubiger erlischt, falls der Kündigungsgrund vor Ausübung des Kündigungsrechts geheilt wurde.	(2)   Cessation of Termination Right. The Bondholders’ right to declare the Bonds due and payable will cease in the event that the event of default has been remedied prior to the exercise of the termination right.
	(3)   Kündigungserklärung. Eine Kündigungserklärung hat in der Weise zu erfolgen, dass der Anleihegläubiger einer Zahlstelle eine schriftliche Erklärung übergibt oder durch eingeschriebenen Brief übersendet und dabei durch eine Bescheinigung seiner Depotbank nachweist, dass er die betreffenden Schuldverschreibungen zum Zeitpunkt der Erklärung hält. 	(3)   Termination Notice. Any Termination Notice shall be made by means of a written notice to be delivered by hand or registered mail to a Paying Agent together with evidence by means of a certificate of the Bondholder’s depository bank that such Bondholder at the time of such written notice is a holder of the relevant Bonds. 

 

     

     

    

 

	§ 15

Zahlstellen, Wandlungsstellen	§ 15

Paying Agents; Conversion Agents
	(1)   Zahlstellen. Die Emittentin hat die Bankhaus Gebr. Martin AG, Schlossplatz 7, D-73033 Göppingen, zur Hauptzahlstelle („Hauptzahlstelle” und zusammen mit etwaigen anderen von der Emittentin gemäß § 15(3) bestellten Zahlstellen, „Zahlstellen“) bestellt. Die Zahlstellen sind von den Beschränkungen des § 181 des Bürgerlichen Gesetzbuchs befreit. Adressänderungen werden gemäß § 16 bekannt gemacht.	(1)   Paying Agents. The Issuer has appointed Bankhaus Gebr. Martin AG, Schlossplatz 7, D-73033 Göppingen, to act as principal paying agent (“Principal Paying Agent” and, together with any other paying agent appointed by the Issuer in accordance with § 15(3), “Paying Agents”). The Paying Agents are exempt from the restrictions of sec. 181 of the German Civil Code (Bürgerliches Gesetzbuch). Changes of address shall be published in accordance with § 16.
	(2)   Wandlungsstelle. Die Emittentin hat die Bankhaus Gebr. Martin AG, Schlossplatz 7, D-73033 Göppingen, zur Hauptwandlungsstelle („Hauptwandlungsstelle” und zusammen mit etwaigen anderen von der Emittentin gemäß § 15(3) bestellten Wandlungsstellen, die „Wandlungsstellen“) bestellt. Die Wandlungsstellen sind von den Beschränkungen des § 181 BGB befreit. Adressänderungen werden gemäß § 16 bekannt gemacht.	(2)   Conversion Agent. The Issuer has appointed Bankhaus Gebr. Martin AG, Schlossplatz 7, D-73033 Göppingen, to act as principal conversion agent (“Principal Conversion Agent” and, together with any other conversion agent appointed by the Issuer in accordance with § 15(3), the “Conversion Agents”). The Conversion Agents are exempt from the restrictions of sec. 181 of the German Civil Code (Bürgerliches Gesetzbuch). Changes of address shall be published in accordance with § 16.
	(3)   Ersetzung. Die Emittentin kann jederzeit durch Bekanntmachung gemäß § 16 mit einer Frist von mindestens 30 Tagen eine andere Bank zur Zahlstelle oder Wandlungsstelle bestellen. Die Zahlstellen und die Wandlungsstellen können jederzeit von ihrem jeweiligen Amt zurücktreten. Der Rücktritt wird jedoch nur wirksam mit der Bestellung einer anderen Bank zur neuen Zahlstelle bzw. Wandlungsstelle durch die Emittentin unter Bekanntmachung dieser Bestellung gemäß § 16 mit einer Frist von mindestens 30 Tagen.	(3)   Substitution. The Issuer may at any time, by giving not less than 30 days’ notice by publication in accordance with § 16, appoint another bank as Paying Agent or Conversion Agent. Each of the Paying Agents or the Conversion Agents may at any time resign from their respective offices. Such resignation shall become effective only upon the appointment by the Issuer of a bank as the new Paying Agent and/or Conversion Agent and the giving of not less than 30 days’ notice of any such appointment by publication in accordance with § 16.

 

     

     

    

 

	§ 16

Bekanntmachungen	§ 16

Notices
	Die Emittentin wird Bekanntmachungen im Bundesanzeiger vornehmen. Der Tag der Veröffentlichung ist maßgeblich, soweit für Zwecke von Fristberechnungen nach diesen Anleihebedingungen auf den Tag der Bekanntmachung Bezug genommen wird.	(1)   The Issuer will publish notices in the German Federal Gazette. The day of publication is relevant insofar as these terms and conditions refer to publication days for the purpose of calculation of periods. 
	§ 17

Änderung der Anleihebedingungen durch Beschluss der Anleihegläubiger; Gemeinsamer Vertreter	§ 17

Amendments to the Terms and Conditions by resolution of the Bondholders; Joint Representative
	(1)   Änderung der Anleihebedingungen. Die Anleihebedingungen können durch die Emittentin mit Zustimmung der Anleihegläubiger aufgrund Mehrheitsbeschlusses nach Maßgabe der §§ 5 ff. SchVG in seiner jeweiligen gültigen Fassung geändert werden. Die Anleihegläubiger können insbesondere einer Änderung wesentlicher Inhalte der Anleihebedingungen, einschließlich der in § 5 Abs. 3 SchVG vorgesehenen Maßnahmen, zustimmen und einen gemeinsamen Vertreter bestellen. Ein ordnungsgemäß gefasster Mehrheitsbeschluss ist für alle Anleihegläubiger verbindlich.	(1)   Amendments to the Terms and Conditions. The Issuer may amend the Terms and Conditions with consent by a majority resolution of the Bondholders pursuant to sec. 5 et seq. of the German Act on Issues of Debt Securities (Gesetz über Schuldverschreibungen aus Gesamtemissionen, SchVG), as amended from time to time. In particular, the Bondholders may consent to amendments which materially change the substance of the Terms and Conditions, including such measures as provided for under sec. 5 para. 3 of the SchVG, and appoint a joint representative. A duly passed majority resolution shall be binding upon all Bondholders.

 

     

     

    

 

	(2)   Nachweise. Anleihegläubiger haben die Berechtigung zur Teilnahme an der Abstimmung zum Zeitpunkt der Stimmabgabe durch besonderen Nachweis der Depotbank und die Vorlage eines Sperrvermerks der Depotbank zugunsten der Zahlstelle als Hinterlegungsstelle für den Abstimmungszeitraum nachzuweisen.	(2)   Proof of Eligibility. Bondholders must demonstrate their eligibility to participate in the vote at the time of voting by means of a special confirmation of the Depositary Bank hereof and by submission of a blocking instruction by the Depositary Bank for the benefit of the Paying Agent as depository (Hinterlegungsstelle) for the voting period.
	§ 18

Verschiedenes	§ 18

Miscellaneous
	(1)   Anwendbares Recht. Form und Inhalt der Schuldverschreibungen sowie sämtliche sich aus diesen Anleihebedingungen ergebenden Rechte und Pflichten der Anleihegläubiger und der Emittentin bestimmen sich in jeder Hinsicht nach dem Recht der Bundesrepublik Deutschland.	(1)   Governing Law. The Bonds, with regard to both form and content, as well as all rights and obligations arising from these Terms and Conditions for the Bondholders and the Issuer shall in all respects be governed by German law.
	(2)   Erfüllungsort. Erfüllungsort ist Frankfurt am Main, Bundesrepublik Deutschland.	(2)   Place of Performance. Place of performance shall be Frankfurt am Main, Federal Republic of Germany.
	(3)   Gerichtsstand. Gerichtsstand für alle Rechtsstreitigkeiten aus den in diesen Anleihebedingungen geregelten Angelegenheiten ist, soweit rechtlich zulässig, und vorbehaltlich dem nachstehenden Absatz, Frankfurt am Main, Deutschland.	(3)   Place of Jurisdiction. The place of jurisdiction for all proceedings arising from matters provided for in these Terms and Conditions shall, to the extent legally permitted and subject to the following paragraph, be Frankfurt am Main, Germany.
	(4)   Für Entscheidungen gemäß § 9 Abs. 2, § 13 Abs. 3 und § 18 Abs. 2 SchVG ist gemäß § 9 Abs. 3 SchVG das Amtsgericht zuständig, in dessen Bezirk die Emittentin ihren Sitz hat. Für Entscheidungen über die Anfechtung von Beschlüssen der Anleihegläubiger ist gemäß § 20 Abs. 3 SchVG das Landgericht ausschließlich zuständig, in dessen Bezirk die Emittentin ihren Sitz hat.	(4)   The local court (Amtsgericht) in the district where the Issuer has its registered office will have jurisdiction for all judgments pursuant to sec. 9 para. 2, sec. 13 para. 3 and sec. 18 para. 2 SchVG in accordance with sec. 9 para. 3 SchVG. The regional court (Landgericht) in the district where the Issuer has its registered office will have exclusive jurisdiction for all judgments over contested resolutions by Bondholders in accordance with sec. 20 para. 3 SchVG.

 

     

     

    

 

	(5)   Vorlegungsfrist. Die in § 801 Abs. 1 S. 1 BGB bestimmte Vorlegungsfrist wird für die Schuldverschreibungen in Bezug auf Kapital auf zehn Jahre verkürzt. Die Vorlegungsfrist für die Schuldverschreibungen in Bezug auf Zinsen beträgt vier Jahre und beginnt mit dem Datum, an dem die jeweilige Zinszahlung erstmals fällig und zahlbar wird.	(5)   Term for Presentation. The term for presentation of the Bonds with respect to principal as set forth in sec. 801 para. 1 sentence 1 of the German Civil Code (Bürgerliches Gesetzbuch, BGB) shall be reduced to ten years. The term for presentation of the Bonds with respect to interest shall be four years after the date on which payment thereof first becomes due and payable.
	(6)   Sollten einzelne Bestimmungen dieser Anleihebedingungen ganz oder teilweise unwirksam oder nicht durchsetzbar sein oder unwirksam oder nicht durchsetzbar werden, so wird hierdurch die Wirksamkeit oder die Durchsetzbarkeit der übrigen Bestimmungen nicht berührt. Anstelle der unwirksamen bzw. nicht durchsetzbaren Bestimmung soll, soweit rechtlich möglich, eine dem Sinn und wirtschaftlichen Zweck dieser Anleihebedingungen zum Zeitpunkt der Begebung der Schuldverschreibungen entsprechende Regelung gelten. Unter Umständen, unter denen sich diese Anleihebedingungen als unvollständig erweisen, soll eine ergänzende Auslegung, die dem Sinn und Zweck dieser Anleihebedingungen entspricht, unter angemessener Berücksichtigung der berechtigten Interessen der beteiligten Parteien erfolgen.	(6)   Should any of the provisions of these Terms and Conditions be or become invalid or unenforceable in whole or in part, the validity or the enforceability of the remaining provisions shall not in any way be affected or impaired thereby. In this case the invalid or unenforceable provision shall be replaced by a provision which, to the extent legally possible, provides for an interpretation in keeping with the meaning and the economic purposes of the Terms and Conditions at the time of the issue of the Bonds. Under circumstances in which these Terms and Conditions prove to be incomplete, a supplementary interpretation in accordance with the meaning and the purposes of these Terms and Conditions under due considerations of the legitimate interest of the parties involved shall be applied.
	(7)   Der deutsche Wortlaut dieser Anleihebedingungen ist allein rechtsverbindlich. Die englische Übersetzung dient nur der Information.	(7)   The German text of these Terms and Conditions is the only legally binding one. This English translation is for convenience purposes only.

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