Document:

Exhibit
4.8

 

 

OPTION AGREEMENT

 

Dated as of [•], 2014

 

between

 

		1.	Innocoll
                                         AG, a stock corporation under German law, registered with the commercial register at
                                         the Local Court of Regensburg under HRB 14298 (the “Company”),

 

and

 

		2.	[•] (the “Option
                                                                                                                                  Holder”).

 

The Company and
the Option Holder are each hereinafter individually referred to as a “Party” and together also as the “Parties”.

 

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CONTENT

 

	LIST OF SCHEDULES TO THE OPTION
    AGREEMENT	3
	 	 	 
	RECITAL	 	4
	 	 	 
	WITNESSETH	 	4
	 	 	 
	SECTION 1.	GENERAL	6
	 	 	 
	1.1	Definitions	6
	 	 	 
	1.2	Interpretation	8
	 	 	 
	SECTION 2. 	EXERCISE OF OPTION	8
	 	 	 
	SECTION 3. 	EXPIRATION OF OPTIONS	12
	 	 	 
	SECTION 4.	PURCHASE PRICE, EXERCISE PAYMENT, TAX
    WITHHOLDING	12
	 	 	 
	SECTION 5. 	ADJUSTMENTS	13
	 	 	 
	SECTION 6. 	NO DILUTION OR IMPAIRMENT	15
	 	 	 
	SECTION 7. 	RESERVATION OF AUTHORIZED CAPITAL II	15
	 	 	 
	SECTION 8. 	NEGOTIABILITY, ETC.	15
	 	 	 
	SECTION 9. 	PRIOR UNDERSTANDINGS	16
	 	 	 
	SECTION 10. 	AMENDMENTS	16
	 	 	 
	SECTION 11. 	BINDING AGREEMENTS	16
	 	 	 
	SECTION 12. 	NOTICES	16
	 	 	 
	SECTION 13. 	EFFECTIVENESS	16
	 	 	 
	SECTION 14. 	SEVERABILTY	17
	 	 	 
	SECTION 15. 	SECTION HEADINGS	17
	 	 	 
	SECTION 16. 	CHOICE OF LAW	17

 

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LIST OF SCHEDULES TO THE OPTION AGREEMENT

 

	Schedule I	 	
	 	 	List of Option Holders being entitled to
    subscribe for New Ordinary Shares out of Authorized Capital II
	 	 	 
	Schedule II	 	Draft Exercise Notice
	 	 	 
	Schedule III	 	Draft resolution of the Management Board
    on the utilization of the Authorized Capital I
	 	 	 
	Schedule IV/1	 	Draft Subscription Offer (Authorized Capital
    II)
	 	 	 
	Schedule IV/2	 	Draft Subscription Offer (contingent capital)
	 	 	 
	Schedule IV/3	 	Draft Subscription Offer (own shares)
	 	 	 
	Schedule V/1	 	Draft Subscription Declaration (Authorized
    Capital II)
	 	 	 
	Schedule V/2	 	Draft Subscription Declaration (contingent
    capital)
	 	 	 
	Schedule V/3	 	Draft Subscription Declaration (own shares)

 

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RECITALS

 

This Option Agreement (the
“Agreement”),
dated as of [•], 2014

 

between

 

		1.	Innocoll
                                         AG, a stock corporation under German law, registered with the commercial register at
                                         the Local Court of Regensburg under HRB 14298 (the “Company”),

 

and

 

		2.	[•] (the “Option Holder”).

 

The
Company and the Option Holder are each hereinafter individually referred to as a “Party” and together also
as the “Parties”.

 

WITNESSETH

 

WHEREAS,
the Company is registered with the commercial register of the local court of Regensburg under HRB 14298. The registered
purpose of the Company is the holding and managing of participations in enterprises, and of similar rights, in particular, but
not limited to, the pharmaceutical area. The Company has been established by way of transformation (Formwechsel) of Innocoll
GmbH, a limited liability company under German law. The Option Holder is a member of the management of the Company or of a related
company within the meaning of Sec. 15 et seq AktG (“Affiliate”).

 

WHEREAS,
by shareholder resolution dated 16 June, 2014, the Company has created authorized capital II (Genehmigtes Kapital
II - “Authorized Capital II”) set out in Sec. 4 para. 9 of the articles of association of Innocoll AG (“Articles
of Association”) in the amount of EUR 97,154.00 in total. According to this, the management board of

 

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Innocoll AG
(“Management Board”) is entitled to increase the Company’s share capital during a period of five (5)
years beginning with the registration of this Authorized Capital II with the commercial register.

 

WHEREAS,
the Option Holder shall be entitled to subscribe up to a specific number of new Ordinary Shares in case of such resolution
of the Management Board within a period (“Expiration Period”) ending on [•] (“Expiration
Date”). The specific numbers of Ordinary Shares to which the Option Holder is entitled to, at the beginning,
is set out in Section 2.1.

 

WHEREAS,
beside the Option Holder, other employees and the members of the management board are as well entitled to subscribe
up to a specific number of new Ordinary Shares, to be created by utilization of the Authorized Capital II (“Other Option
Holders”).

 

WHEREAS,
the subscription rights of the Option Holders, which have not been exercised within the Expiration Period, will expire
upon the Expiration Date.

 

WHEREAS,
the Parties intend to set out in this Agreement the conditions as to price, timing and further formalities according
to which the Option Holder shall be entitled to request the Management Board to serve the Options granted by allocation of new
Ordinary Shares for contributions in cash.

 

WHEREAS,
the Parties further intend to set out the terms and conditions under which the Option Holder shall be entitled to exercise
its subscription right resulting from this Agreement for new Ordinary Shares.

 

WHEREAS,
The Company has listed its American Depositary Shares (“ADS(s)”) representing its ordinary
shares on the NASDAQ Global Market. Each ADS represents an ownership interest in 1/13.25 Ordinary Shares of the Company which
are deposited with Citibank N.A. and held by Citigroup Global Markets AG as custodian. It is intended that the Option Holders
shall have the right to exchange Ordinary Shares issued pursuant to this Agreement into ADSs.

 

NOW, THEREFORE,
in consideration of the foregoing premises and mutual covenants and agreements contained herein and intending to be
legally bound hereby, the Parties agree as follows:

 

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SECTION 1.      GENERAL.

 

1.1   Definitions.

 

In this Agreement, unless the context
requires otherwise, the following terms shall have the definitions set forth below:

 

“ADS(s)” shall have
the meaning set forth in the WITNESSETH hereto.

 

“Affiliate” shall
have the meaning set forth in the WITNESSETH hereto.

 

“Agreement” shall
have the meaning set forth in the RECITALS hereto.

 

“Articles of Association”
shall mean the articles of association of Innocoll AG.

 

“Authorized
Capital II” shall have the meaning set forth in the WITNESSETH hereto, including, as the case may by, new authorized
capital as referred to in the WITNESSETH.

 

“Blocking Periods” shall
have the meaning set forth in SECTION 2 hereto.

 

“Business
Day” means any day on which banks are open for business in Frankfurt am Main, Germany (any day other than a Saturday,
Sunday or legal or bank holiday in Frankfurt am Main, Germany).

 

“Capital Increase” shall
have the meaning set forth in SECTION 2.

 

“Company” shall
have the meaning set forth in the RECITALS hereto.

 

“Control”
shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management
and policies of a Person, either through the ownership of a majority of a Person’s voting capital stock, by contract or otherwise.

 

“Deposit Agreement”
shall have the meaning set forth in SECTION 2 hereto.

 

“Exercise Payment” shall
have the meaning set forth in SECTION 4 hereto.

 

“Exercise Period” shall
have the meaning set forth in SECTION 2.

 

“Exercise Notice” shall
have the meaning set forth in SECTION 2 hereto.

 

“Expiration Date” shall
have the meaning set forth in the WITNESSETH hereto.

 

“Expiration Period”
shall have the meaning set forth in the WITNESSETH hereto.

 

“Individual Total Number
of Ordinary Shares” shall have the meaning set forth in SECTION 2 hereto.

 

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“Initial Exercise Period”
shall have the meaning set forth in SECTION 2 hereto.

 

“Initial Issuance Date”
shall have the meaning set forth in SECTION 5 hereto.

 

“Management
Board” shall mean the management board (Vorstand) of the Company.

 

“New Ordinary Shares”
shall have the meaning set forth in SECTION 2 hereto.

 

“New Shares” shall
have the meaning set forth in SECTION 2 hereto.

 

“Option(s)” shall
have the meaning set forth in SECTION 2 hereto.

 

“Option Holder(s)” shall
have the meaning set forth in the RECITALS hereto.

 

“Option Rights” shall
have the meaning set forth in SECTION 5 hereto.

 

“Ordinary
Shares” shall mean the ordinary shares of Innocoll AG, without par value (as mentioned in Sec. 4 para. 2 of the
Articles of Association).

 

“Other Option Holder(s)”
shall have the meaning set forth in the RECITALS hereto.

 

“Parties” shall
mean Innocoll AG and the Option Holder.

 

“Person”
shall mean and include any natural person, corporation, general partnership, limited partnership, limited liability
company, proprietorship, other business organization, unincorporated organization, trust, union, association, government or any
department or agency thereof or other entity.

 

“Purchase Price” shall
have the meaning set forth in SECTION 4 hereto.

 

“Subsidiary”
in relation to any company, corporation or other legal entity (a “Holding Company”), a company,
corporation or other legal entity:

 

		(a)	which
                                         is controlled, directly or indirectly, by the Holding Company;

 

		(b)	more
                                         than half the issued share capital of which is beneficially owned, directly or indirectly,
                                         by the Holding Company,

 

and, for this
purpose, a legal entity shall be treated as being controlled by another if that other legal entity is able to determine the composition
of the majority of the board of directors or equivalent body.

 

“Subscription Declaration”
shall have the meaning set forth in SECTION 2 hereto.

 

“Subscription Offer”
shall have the meaning set forth in SECTION 2 hereto.

 

“Tax-Related Items”
shall have the meaning set forth in SECTION 4 hereto.

 

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“Trading
Day” shall mean such day on which the Nasdaq Global Market (“Nasdaq”) or such other
stock exchange where the Company’s shares or ADSs are listed, as applicable, are open for trading

 

“Triggering Transaction”
shall have the meaning set forth in SECTION 5 hereto.

 

1.2   Interpretation.

 

Unless a contrary
indication appears, in this Agreement, references to this Agreement include its schedules. References to paragraphs, clauses,
recitals or schedules are references to such provisions of this Agreement. References to a paragraph refer to the relevant paragraph
of the clause or schedule in which it appears.

 

Use of singular
shall include the plural and vice versa. Words denoting any gender shall include the other gender.

 

SECTION 2.    EXERCISE
OF OPTION.

 

2.1       The
Option Holder shall have the individual right to claim the allocation of new Ordinary Shares up to 10,744 Ordinary Shares (“Individual
Total Number of Ordinary Shares”) (“Option”) by notice to the Company using the form
set out in Schedule II (the “Exercise Notice”) which shall also contain the exact percentage of new
Ordinary Shares claimed by the Option Holder in relation to the individual total number of New Ordinary Shares.

 

Options may
be exercised by sending an Exercise Notice to the Company pursuant to Sec. 2.1 at any time during the year, unless there is a
Blocking Period as set out below (“Initial Exercise Period”). During a Blocking Period, Options must
not be exercised. To the extent an Initial Exercise Period coincides with a Blocking Period, the Initial Exercise Period shall
be shortened.

 

Blocking periods (“Blocking
Periods”) shall be

 

		(i)	the
                                         period from the end of the seventh Trading Day before, up to the third Trading Day after,
                                         the company’s general meeting; 

 

		(ii)	the
                                         period between the first Trading Day on which the company has published an offer to acquire
                                         new shares, bonds or option rights, up to the end of the last day of the subscription
                                         period for such offer; and

 

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		(iii)	the
                                         period beginning at the opening of trading on the first Trading Day that is two weeks
                                         prior to the end of each quarter and ending at the close of trading on the second Trading
                                         Day after the publication of the quarterly reports of the Company.

 

2.2       The Option
Holder shall further have the right to exchange such ordinary shares into ADSs. After their exchange into ADSs, the Option Holder
shall receive 13.25 ADS per Ordinary Share. To avoid fractional shares and ADSs, the number of Option Rights granted and of Option
Rights exercised at any time must always be divisible by four. The Company and the Option Holder agree to use commercially reasonable
efforts to perform all such acts and to execute any documents and instruments as are required or reasonably requested by the Company
and/or the depositary or the custodian to provide for the exchange of the Option Holder’s Ordinary Shares received upon exercise
of such Option Holder’s Ordinary Shares into ADSs.

 

Any fractions
of Ordinary Shares or ADSs shall not be delivered or compensated. However, if several Option Rights are exercised by the same
Option Holder, fractions of Ordinary Shares or ADSs shall be added up, subject, in the case of the ADSs to the provisions of the
deposit agreement by and among the Company and Citibank N.A. dated July 30, 2014 (“Deposit Agreement”).

 

2.3       After
having received an Exercise Notice, the Management Board may subject to its duly and properly executed discretion, offer subscription
to the Other Option Holders by announcing the content of the Exercise Notice received using the forms set out in Schedules IV
(“Subscription Offer”), however, subject to the stipulation set out in SECTION 4, according to which the Option
Holder shall pay or make adequate arrangements satisfactory to the Company to satisfy all Tax-Related Items, if applicable.

 

For the avoidance
of doubt, after receipt of an Exercise Notice, the Management Board shall not be obliged under this Agreement to offer subscription
to the Other Option Holders, but the Management Board may decide subject to its properly executed discretion, whether to offer
subscription to New Shares to the Other Option Holders following the procedure as set out below or whether only the Option Holder
shall be entitled to subscribe for New Shares.

 

Each Other Option
Holder intending to participate in the utilization of the Authorized Capital II (“Capital Increase”) must fill
in and sign its subscription declaration in duplicate as provided in sample form by Schedules V (“Subscription Declaration”)
together with the Subscription Offer within a period of three weeks from the day of

 

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receipt of the
Subscription Offer (“Exercise Period”). In case an Other Option Holder does not duly deliver such properly
filled in and signed Subscription Declaration in duplicate within the Exercise Period, such Other Option Holder may not participate
in such Capital Increase and is deemed to have waived its right to participate in such Capital Increase. However, participation
by any Other Option Holder is not permitted during a Blocking Period as set out in Sec. 2.1.

 

2.4       An Option
Holder shall (i) only subscribe for up to the amount of Ordinary Shares equal to the percentage set out in the Exercise Notice
in relation to the number of Ordinary Shares set forth in its individual Option Agreement and (ii) only subscribe for up to the
amount still available to such Option Holder due to previous participation(s) in the exercise of Options granted (if any).

 

In case the
Option results in a fraction of Ordinary Shares, the Management Board herewith is authorized, at its sole discretion, to round
fractions of Ordinary Shares, i.e. to round 4 and below down, but to round 5 and above up, to the next whole Ordinary Share amount.

 

2.5       After
receipt of an Exercise Notice and before sending a Subscription Offer to each Other Option Holder, the Management Board shall,
subject to its duly and properly executed discretion, pass, without undue delay (unverzüglich), a resolution to make
use of the Authorized Capital II as stated in Sec. 4 para. 9 of the Articles of Association (by using the draft resolution in
Schedule III) to issue new Ordinary Shares (“New Shares”) in the amount up to the total number of shares to
which Option Holders may permissibly be entitled to subscribe to. The Management Board may also, in its sole discretion, serve
the Options by utilization of (i) a contingent capital created for such purpose, if any, or (ii) own Ordinary Shares (eigene
Aktien), if any available for such purpose, provided that in any case of (i) and (ii) the relation of the number of Ordinary
Shares held by each Option Holder before the capital measure and Ordinary Shares held by each Option Holder after the capital
measure would not deviate from such relation resulting from a serve of Options by means of Authorized Capital II only. The Ordinary
Shares resulting from the realization of Options (New Shares or shares resulting from a contingent capital or own Ordinary Shares
are also referred to as “New Ordinary Shares”).

 

Example:

 

		•	Option
                                         Holders’ Options: 320 New Ordinary Shares (Option Holder A), 160 New Ordinary Shares
                                         (Option Holder B), 80 New Ordinary Shares (Option Holder C),

 

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		•	In
                                         the first step B sends an Exercise Notice and opts for 120 New Ordinary Shares. This
                                         meets with 75 % of his Option. This percentage has to be entered in the Exercise Note.

 

		•	In
                                         the second step the Management Board shall, subject to its duly and properly executed
                                         discretion, (i) initiate a Capital Increase or (ii) install any other measure in order
                                         to bring the Company into the position to fulfill the exercises of Options (e.g. acquisition
                                         of own shares, if permitted).

 

		•	In
                                         the third step the Management Board has to offer 75 % of the number of New Ordinary Shares
                                         set out in the individual option agreement of each Option Holder: 240 New Ordinary Shares
                                         for subscription by A, 120 New Ordinary Shares for subscription by B, 60 New Ordinary
                                         Shares for subscription by C,.

 

		•	In
                                         the forth step B subscribes for all the 120 offered New Ordinary Shares. A fails to deliver
                                         its duly signed Subscription Declarations in duplicate within the Exercise Period. C
                                         subscribes for 40 New Ordinary Shares.

 

		•	As
                                         a result, Option Holder B’s Option remains to the extent of 40 New Ordinary Shares, Option
                                         Holder A’s option to 320 New Ordinary shares, Option Holder C’s option to 40 New Ordinary
                                         Shares.

 

2.6     Further,
the Management Board or the Option Holders, as the case may be, shall fulfill, without undue delay, further necessary requirements
stipulated by law, e.g. duly increase the share capital of the Company on the basis of exercising the Authorized Capital II,
e.g. resolution on the utilization of the Authorized Capital II (Beschluss zur Ausnutzung
des Genehmigten Kapitals II) if making use of it, or exercising contingent capital, and application for registration
with the commercial register (Registeranmeldung). The Management Board shall, subject to its duly and properly executed
discretion, issue New Ordinary Shares only at the Purchase Price to each Option Holder.

 

2.7     If
the Option Holder or any of the other Option Holders should not claim one hundred (100) percent of the number of New Ordinary
Shares set forth in the Individual Option Agreement from the Company within an Exercise Notice or a Subscription Declaration,
the remaining amount of New Ordinary Shares set forth in the Individual Option Agreement shall be deemed one hundred percent of
New Ordinary Shares available for this Option Holder for a Exercise Notice and/or a (next) Subscription Declaration.

 

If
the Management Board receives several Exercise Notices on the same Business Day it shall add the amounts of New Ordinary Shares
claimed in each Exercise Notice and follow the procedure mentioned in the paragraphs above with regard to this total amount in
one and not in several steps. In case the Management Board receives several Exercise Notices not on the same Business Day but
during the procedure of an

 

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Issuance of
New Ordinary Shares due to (an) Exercise Notice(s), the Management Board shall, subject to its duly and properly executed discretion,
use its best efforts to ensure that the required capital increase(s) will be executed in due time and in a reasonable and cost
saving way.

 

SECTION 3.     EXPIRATION
OF OPTIONS.

 

To the extent
the Option Holder has not exercised its subscription rights within the Expiration Period, as the case may be, such subscription
rights shall expire upon the Expiration Date, as the case may be. In no event may this Option be exercised at any time after the
Expiration Date, as the case may be.

 

SECTION
4.    PURCHASE PRICE, EXERCISE PAYMENT , TAX WITHHOLDING.

 

The subscription
price / purchase price per New Ordinary Share amounts to USD 119.25, comprising capital contribution payments and agio payments,
being understood that a partial amount of EUR 1.00 will be characterized as share capital payment and the remaining amount shall
be regarded as agio. It is further understood that the purchase price of USD 119.25 per New Ordinary Share, divided by 13.25,
equals a purchase price of USD 9.00 per ADS. This subscription price / purchase price per New Ordinary Share may from time to
time be adjusted according to SECTION 5, whereas in no event the subscription price / purchase price shall be lower than EUR 1
per New Ordinary Share (“Purchase Price”).

 

The exercise
price to be paid in total by the Option Holder (each payment individually the “Exercise Payment”) shall be equal
to the Purchase Price multiplied by the number of New Ordinary Shares being purchased pursuant to the Subscription Declaration
by the Option Holder and be payable only by contribution in cash.

 

With respect
to any or all income tax, social insurance, payroll tax, payment on account or other tax-related items related to the Option Holder’s
receipt of New Ordinary Shares hereunder and legally applicable to the Option Holder (“Tax-Related Items”),
the Option Holder acknowledges that the ultimate liability for all Tax-Related Items is and remains with the Option Holder’s
responsibility.

 

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Prior to any
relevant taxable or tax withholding event, as applicable, the Option Holder shall pay or make adequate arrangements satisfactory
to the Company to satisfy all Tax-Related Items.

 

In this regard,
the Option Holder hereby authorizes the Company, or their respective agents, at the Company’s discretion, to satisfy the obligations
with regard to all Tax-Related Items as far as applicable by one or a combination of the following:

 

(1)         withholding
from the Option Holder’s wages or other cash compensation paid to Option Holder by the Company,

 

(2)         withholding
from proceeds of a sale of New Ordinary Shares acquired upon settlement of this Agreement (such sale being implemented by the
Company on the Option Holder’s behalf pursuant to this authorization) either through a voluntary sale or through a mandatory sale
arranged by the Company; or

 

(3)         withholding
the relevant number of New Ordinary Shares to be issued upon settlement of the Agreement in order to issue such New Ordinary Shares
to any other Option Holder or third party and to satisfy the Tax-Related Items by the respective proceeds therefrom.

 

SECTION 5.          ADJUSTMENTS.

 

5.1         The
Purchase Price shall be subject to adjustment from time to time in accordance with this SECTION 5 by resolution of the management
board. Such adjusted Purchase Price shall be equal for the Option Holder and all other Option Holders.

 

5.2        In case
the Company shall at any time combine its outstanding Ordinary Shares, the Purchase Price in effect immediately prior to such
combination shall be proportionately increased by the same ratio as the combination.

 

5.3

 

(i) In the event that:

 

(1)  the
Company shall declare any cash dividend upon its Ordinary Shares, or

 

(2) the
Company shall declare any dividend upon its Ordinary Share payable in shares or make any special dividend or other distribution
to the shareholders of its Ordinary Share, or

 

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(3) the
Company shall offer for subscription pro rata to the shareholder of its Ordinary Share any additional shares of stock of any class
or other rights, or

 

(4) there
shall be any capital reorganization or reclassification of the equity of the Company, including any subdivision or combination
of its outstanding Ordinary Shares, or consolidation or merger of the Company with, or sale of all or substantially all of its
assets to, another corporation, or

 

(5) there
shall be a voluntary dissolution, liquidation or winding up of the Company,

 

then, in connection
with such event, the Company shall give to the Option Holder, unless mandatory management duties, in particular, resulting from
deviating shareholders’ resolutions and / or equality principle requirements (Gleichbehandlungsgrundsatz) in favour of
all shareholders of the Company, by German corporate law or by German capital market law provide otherwise:

 

(ii) at least
thirty (30) days prior written notice of the date on which the books of the Company shall close or a record shall be taken for
such dividend, distribution or subscription rights or for determining rights to vote in respect of any such reorganization, reclassification,
consolidation, merger, sale, dissolution, liquidation or winding up; and

 

(iii) in the
case of any such reorganization, reclassification, consolidation, merger, sale, dissolution, liquidation or winding up, at least
thirty (30) days prior written notice of the date when the same shall take place. Such notice in accordance with the foregoing
clause (i) shall also specify, in the case of any such dividend, distribution or subscription rights, the date on which the shareholders
of Ordinary Shares shall be entitled thereto, and such notice in accordance with the foregoing clause (1) shall also specify the
date on which the holders of Ordinary Shares shall be entitled to exchange their Ordinary Share for securities or other property
deliverable upon such reorganization, reclassification, consolidation, merger, sale, dissolution, liquidation or winding up, as
the case may be. Each such written notice shall be given by first class mail, postage prepaid, addressed to the Option Holder
at the address of such Option Holder as shown on the books of the Company. With regard to the content of such notices, confidentiality
interests of the Company prevail.

 

5.4         Whenever
the Purchase Price shall be adjusted as provided in SECTION 5 hereof, the Company shall as promptly as practicable provide the
Option Holder with a statement, signed by the Management Board, showing in reasonable detail the facts requiring such adjustment
and the Purchase Price that will be effective after such adjustment. As regards the content of such statements, confidentiality
interests of the Company and equal principle requirements in favor of all shareholders (Gleichbehandlungsgrundsatz)
prevail. 

 

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SECTION 6.     NO DILUTION
OR IMPAIRMENT.

 

The Company
will not, or through reorganization, consolidation, merger, dissolution, sale of assets or any other voluntary action, avoid or
seek to avoid the observance or performance of any of the terms of this Agreement, but will at all times in good faith assist
in the carrying out of all such terms and in the taking of all such action as may be necessary or appropriate in order to protect
the rights of the Option Holder against dilution or other impairment, except if otherwise stated in this Agreement or otherwise
required by German corporate law, German capital market law or any other relevant German law provision or deviating shareholders’
resolutions.

 

SECTION 7.      RESERVATION
OF AUTHORIZED CAPITAL II.

 

Subject to the
duly and properly executed discretion of the Management Board, the Company shall avoid all actions which may result in a utilization
of the Authorized Capital II for other purposes than serving the Options granted by the Agreement, except (i) if statutory subscription
rights of other shareholders due to the Capital Increase or mandatory German law provisions require such a utilization or (ii)
if the delivery of New Ordinary Shares upon the exercise of Options can be granted by other share capital measures.

 

SECTION 8.      NEGOTIABILITY,
ETC.

 

Any existing
Option or future Option Right or this Agreement as a whole is not transferable by the Option Holder to a third party without consent
of the Company. The Company hereby declares in advance their consent to a transfer of Options in the event that the acquiring
third party accedes to all obligations under this Agreement.

 

Prior to the
exercise of the Option, the Option Holder shall not be entitled to any rights of a shareholder of the Company with respect to
shares for which this Option shall be exercisable, including, without limitation, the right to vote, to receive dividends or other
distributions or to exercise any preemptive rights, and shall not be entitled to receive any notice of any proceedings of the
Company, except as provided herein.

 

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SECTION 9.    PRIOR UNDERSTANDINGS.

 

This
Agreement represents the complete agreement of the Parties with respect to the subject matter included herein and supersedes any
and all previous agreements relating thereto. The Parties acknowledge that there have been no representations, warranties, covenants
or agreements made by any party hereto other than those contained in this Agreement. There are no side agreements to this Agreement.

 

SECTION 10.  AMENDMENTS.

 

Except
as otherwise expressly provided, this Agreement, including this provision, may be amended or modified only upon the consent of
the Parties.

 

SECTION 11.  BINDING
AGREEMENTS.

 

The
terms and conditions of this Agreement shall inure to the benefit of and be binding upon the Parties and their respective heirs,
legal representatives and successors. The executor, administrator or personal representative of the deceased Option Holder shall
execute and deliver any and all documents or legal instruments necessary or desirable to carry out the provisions of this Agreement.

 

SECTION 12.   NOTICES.

 

Any and all
notices, designations, consents, offers, acceptances, or any other communication provided for herein shall be given in writing
by overnight courier, or facsimile transmission which shall be addressed, or sent, to the Option Holder at the respective address
as set forth in the RECITALS. Each such notice shall be deemed received 24 hours after it is sent. Alternatively and notwithstanding
any stipulation in this Agreement providing for a stricter form, communication under this Agreement may also happen by email.

 

SECTION 13.  EFFECTIVENESS.

 

This Agreement shall become legally
effective upon signing by both Parties.

 

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SECTION 14.   SEVERABILTY.

 

The invalidity
or unenforceability of any provisions of this Agreement in any jurisdiction shall not affect the validity, legality or enforceability
of the remainder of this Agreement in such jurisdiction or the validity, legality or enforceability of any provision of this Agreement
in any other jurisdiction, it being intended that all rights and obligations of the Parties be enforceable to the fullest extent
permitted by law. Any such invalid, ineffective or unenforceable provision shall be deemed replaced by such valid, effective and
enforceable provision as comes closest to the economic intent and purpose of such invalid, ineffective or unenforceable provision
as regards subject-matter, amount, time, place and extent. The aforesaid shall apply mutatis mutandis to any gap in this Agreement.

 

SECTION 15.  SECTION
HEADINGS.

 

Headings
contained in this Agreement are inserted only as a matter of convenience and in no way define, limit or extend the scope or intent
of this Agreement or any provisions hereof.

 

SECTION 16.   CHOICE
OF LAW.

 

This
Agreement is governed by and shall be construed in accordance with the laws of the Federal Republic of Germany.

 

[Signature pages follow]

 

    	17

    	 	 

    

 

 

Innocoll AG

 

	Place,
    Date:		 		 

 

	Signature:		 

 

	Name:		 

 

Title: Chairman of the Supervisory
Board

 

    	18

    	 	 

    

 

 

 

	Place,
    Date:		 		 

 

	Signature:		 

 

    	19Exhibit 4.12

 

Phantom
Share Award Agreement 

between

		1.	Innocoll AG registered with the commercial register of the local court of Regensburg under HRB 14298,
(the “Company”), and

		2.	[•] (the “Grantee”).

The Company and the Grantee
are each hereinafter individually referred to as a “Party” and together also as the “Parties”.

Section 1

Preliminary Remarks

		1.	Innocoll AG is registered with the commercial register of the local court of Regensburg under HRB 14298.
The registered purpose of the Company is the holding and managing of participations in enterprises, and of similar rights, in particular,
but not limited to, the pharmaceutical area. The Company has been established by way of transformation (Formwechsel) of
Innocoll GmbH, a limited liability company under German law. The Grantee is a member of the management of the Company or of a related
company within the meaning of Sec. 15 et seq AktG (“Affiliate”).

		2.	The Grantee has previously been granted virtual shares in Innocoll GmbH, the Company’s legal
predecessor (“Phantom Shares”) in substitution for the restricted shares issued to certain members of the Company’s
or it’s Affiliates’ management in order to allow him to participate in the economic success of the Company especially
in the case of an Exit Event. The Phantom Shares are not intended to infer upon the Grantee any kind of shareholders’ rights,
especially no information-, participation rights, voting rights or rights to participate in the Company’s profits other than
as set forth herein. This previous Phantom Share Award Agreement shall be replaced and extended by the present Phantom Share Award
Agreement (hereinafter referred to as the “Agreement”) whose provisions shall apply to all Phantom Shares previously
granted to the Grantee in the Company, as well as those granted for the first time hereunder.

		3.	The Company has issued American Depositary Shares (“ADS(s)”) representing its
ordinary shares on the NASDAQ Global Market. Each ADS represents an ownership interest in 1/13.25 ordinary shares of the Company
which are deposited with Citibank N.A. (“Depositary”) and held by Citigroup Global Markets AG as custodian.

 

    	 

    	 

    

 

Section 2

Interpretation and Definition

In this Agreement defined
terms ("Defined Terms") shall have the meaning ascribed to them in the relevant section or in this Section 2
or in the Articles (as defined below). The following terms are defined:

		1.	“ADS” shall have the meaning as described in Section 1.3.

		2.	“Affiliate” shall have the meaning as described in Section 1.1.

		3.	“AktG” shall mean the German Stock Corporation Act as in effect from time to
time.

		4.	“Articles” shall mean the articles of the Innocoll AG as in effect from time
to time

		5.	“Bad Leaver Event” shall have the meaning as described in Section 5.1.

		6.	“Bank Business Days” shall be such days, which are bank business days in Frankfurt
am Main, Germany.

		7.	“Board” means the management
board (Vorstand) of the Company

		8.	“Capital Gain” means the fictitious value of the Phantom Shares held by Grantee
to be calculated on the basis of the Equity Value at the time of an Exit Event, divided by the real number of Shares of the Company
issued at the time of the Exit Event, in each case treating Phantom Shares as if they were real Restricted Shares in the
Company.

		9.	“Cause”
means:

		a)	the commission of any act by a Grantee constituting financial dishonesty against the Company or
any of its Affiliates, which could be chargeable as a crime under applicable law;

		b)	an act of dishonesty, fraud, intentional misrepresentation, moral turpitude, illegality or harassment
which, as determined in good faith by the Board, would: (i) materially adversely affect the business or the reputation of the Company
or any of its Affiliates with their respective current or prospective customers, suppliers, lenders and/or other third parties
with whom such entity does or might do business; or (ii) expose the Company or any of its Affiliates to a risk of civil or criminal
legal damages, liabilities or penalties;

		c)	the repeated failure to follow the directives of the Board or the chief executive officer of the
Company or any of its Affiliates,

		d)	any material misconduct in violation of the Company’s or an Affiliate’s policies, or

 

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wilful and deliberate non-performance
of the Grantee’s duties in connection with the business affairs of the Company or its Affiliates

		10.	"Constructive Termination" shall mean Grantee’s resignation due to a material
and non-temporary adverse change in the Grantee’s title, duties or responsibilities with the Company or any of its Subsidiaries,
or any material reduction in the Grantee’s base compensation, if material, non-temporary, adverse change or reduction is
not fully corrected by the Company within thirty (30) days after the Grantee provides the Company with written notice describing
the circumstances that the Grantee believes constitute grounds for a Constructive Termination.

		11.	“Disability”
means, unless otherwise defined in an Award Agreement, a permanent and total disability within the meaning of Section 22(e)(3)
of the Code.

		12.	“Equity Value” means the value of the Company on a cash free / debt free basis
at the time and as a result of an Exit Event.

		13.	"Exit Event" means the earlier to occur of the following:

		i.	a Liquidity Event, and

		ii.	the 183rd day after the Company successfully completed an IPO.

		14.	“Fair Market Value” means
with respect to the Shares (i) if the Company's ADRs are listed on the Nasdaq Global Market ("Nasdaq") or any
established securities exchange, the closing price of the ADSs on the date of determination reported on Nasdaq or such established
securities exchange ; or (ii) if the ADSs are not listed on Nasdaq or an established securities exchange, the closing sales price
of the ADSs as reported by the National Market System, or similar organization, or if no such quotations are available, the average
of the high bid and low asked quotations for the ADSs in the over-the-counter market as reported by the National Quotation Bureau
Incorporated or similar organizations, in each case multiplied by the final ADS/share ratio.

		15.	“Good Leaver Event” shall have the meaning as described in Section 5.1.

		16.	“Grant Date”
means the date on which Phantom Shares which were issued to the Grantee by this or a previous Phantom Share Agreement.

		17.	“Immediate Family” shall have the meaning as described in Section 6.3.

		18.	“Liquidity Event”
means (a) the merger or consolidation of the Company into or with another limited liability company or corporation, the merger
or consolidation of any other limited liability company or corporation into or with the Company, (b) the 

 

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sale,
conveyance, mortgage, pledge or lease of all or substantially all the assets of the Company, or (c) the disposition of Shares representing
a majority of the voting power of the Company through a transaction or series of related transactions; other than a merger or consolidation
involving the Company or a subsidiary in which the Shares outstanding immediately prior to such merger or consolidation continue
to represent, or are converted into or exchanged for shares of capital stock that represent, immediately following such merger
or consolidation, at least a majority, by voting power, of the capital stock of (A) the surviving or resulting limited liability
company or corporation or (B) if the surviving or resulting limited liability company or corporation is a wholly owned subsidiary
of another limited liability company or corporation immediately following such merger or consolidation, the parent corporation
of such surviving or resulting limited liability company or corporation.

		19.	“Permitted Transferee” shall have the meaning as described in Section 6.3.

		20.	“Person” means any individual, sole proprietorship, partnership, joint venture,
limited liability company, trust, unincorporated organization, association, corporation, institution, public benefit corporation,
entity or government instrumentality, division, agency, body or department.

		21.	“Phantom Share Grant Date”
shall mean the date the Phantom Shares were first granted to the Grantee.

		22.	“Phantom Shares” shall have the meaning as described in Section 1.3.

		23.	“Purchaser” shall
have the meaning as described in Section 5.2.

		24.	“Purchase Offer” shall have the meaning as described in Section 5.2.

		25.	“Restricted Shares” shall have the meaning as described in Section 3.4

		26.	"Shares" shall mean non-par value shares registered in the name of the Company.

		27.	"Tax-Related Items” shall have the meaning as described in Section 10.1.

Section 3

Phantom Share Grant and General Conditions

		1.	The Parties hereby agree that the Grantee shall – inter partes – be treated
as if he had received 48,017 Restricted Shares.

		2.	The Phantom Shares provide the Grantee with a contractual claim (schuldrechtlicher Anspruch)
against the Company to receive a bonus payment in case of an Exit Event occurring. Such bonus payment shall be equal to the Capital 

 

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		 	Gain and be paid by the Company to an account designated by the Grantee to the Company in writing within two weeks after an Exit
Event being completed.

		3.	For the avoidance of doubt, the Parties agree that the Phantom Shares do not constitute a right
of the Grantee to acquire or to take over any Shares in the Company upon capital increases and / or transfer any real Shares in
the Company. The Grantee receives only Phantom Shares in accordance with this Agreement.

		4.	As an alternative to paying to the Grantee the amount of Capital Gain in cash, the Company shall
also be entitled, at the Company’s sole discretion, to issue to the Grantee real restricted shares which shall be subject
to the same conditions as those awarded to other members of management / employees of the Company as per the award agreements concluded
with these persons, and in such amounts as described in Section 3.1 above (“Restricted Shares”). In this case,
the Grantee and the Company shall enter into an award agreement for such shares substantially in the form as attached hereto as
Annex 1. The grant of real Restricted Shares shall then occur in due time before the execution of an Exit Event out
of the Company’s authorized capital (Genehmigtes Kapital) with, in the case of a Liquidity Event the obligation to
dispose of such shares upon the consummation of the Liquidity Event. The purchase price payable for such real Restricted Shares
shall amount to their nominal value of EUR 1.00 each.

		5.	In the event the Company has agreed to issue Restricted Shares pursuant to Section 3.4, instead
of Restricted Shares, the Grantee shall also be entitled to request in writing the delivery of an equivalent amount of ADS. Should
the Grantee make such a request, the Company and the Grantee each agree to (i) use commercially reasonable efforts to cause the
Depositary to issue such ADS to the Grantee and (ii) execute such documents and perform such acts as are reasonably necessary or
required in connection therewith.

Section 4

Entire Agreement

This Agreement and the
Articles constitute the entire agreement between the Company and the Grantee with respect to the subject matter hereof. This Agreement
may not be orally changed, modified or terminated, nor shall any oral waiver of any of its terms be effective. This Agreement may
be changed, modified or terminated only by an agreement in writing signed by the Company and the Grantee.

 

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Section 5

Vesting / Forfeiture of Phantom Shares

		1.	For purposes of this Agreement a “Good Leaver Event” is defined as:

		a)	a Termination of Affiliation initiated by the Company for any reason other than for Cause;

		b)	a Termination of Affiliation due to the Grantee’s death or Disability; or

		c)	a Termination of Affiliation due to the Grantee’s Constructive Termination.

A Termination
of Affiliation will not be treated as a Constructive Termination unless the Grantee provides the Company with written notice within
90 days after the Grantee first becomes aware of circumstances that may constitute grounds for a Constructive Termination and the
Grantee’s Termination of Affiliation occurs within the 60 day period commencing 30 days after the Grantee provides such written
notice to the Company.

If the Grantee’s
Termination of Affiliation is due to any of the reasons stated above under (a) through (c), he/she is hereinafter called a “Good
Leaver”. If the Grantee’s Termination of Affiliation is not due to a Good Leaver Event, such Termination of Affiliation
is deemed a “Bad Leaver Event”.

		2.	The Grantee hereby irrevocably offers to sell and assign (Zession) to the Company or to
a third party designated by the Company (“Purchaser”), any or all Phantom Shares held by the Grantee pursuant
to this Agreement, now or in the future for the consideration set forth in Section 5.4 below (“Purchase Offer”).

		3.	Upon the occurrence of a Bad Leaver Event prior to an Exit Event, the Purchase Offer can be accepted
in writing by the Purchaser at any time, without further notice or any action by the Grantee, with regard to all or part of the
Phantom Shares held by the Grantee. If no Bad Leaver Event has occurred, the Purchaser's right to accept the Purchase Offer lapses
upon the occurrence of an Exit Event, and the Grantee shall be free to sell and assign his or her Phantom Shares without the transfer
restrictions referenced in Section 6 hereof.

		4.	If the Purchase Offer is accepted as provided for in Section 3 above, the Purchaser shall pay to
the Grantee a price equal to the lesser of (x) the amount, if any, paid by the Grantee for such Phantom Shares, or (y) the
Fair Market Value per Phantom Share on the date of receipt of the acceptance of the Purchase Offer by the Grantee as per para.
5, 2. sentence below. The Company shall pay to the Grantee the deemed sale price as soon as is administratively practical following
the date of the event causing the forfeiture.

		5.	There shall be no deadline for acceptance of this Purchase Offer once a Bad 

 

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	 	 	Leaver Event occurs,
irrespective of the occurrence an Exit Event before the sale and purchase pursuant to the Purchase Offer has been fully completed.
Acceptance shall become valid in accordance with Section 151 German Civil Code (BGB). The transfer of the Phantom Shares shall
become immediately effective upon receipt of the written acceptance by the Grantee and not be subject to the payment of the purchase
price.

		6.	The purchase price provided for in sub-section 4 above shall become payable upon the written acceptance
of the Purchase Offer. The legal effectiveness of the acceptance of the Purchase Offer shall however not be conditional on the
payment of the purchase price.

		7.	As per the date any sale and transfer to the Purchaser becomes effective pursuant to this Section
5, the Grantee represents and warrants that he is free to dispose of such Phantom Shares to the Purchaser and that such Phantom
Shares are not encumbered with any third party rights.

Section 6

Transfer Restrictions

		1.	Any rights under this Agreement shall be exercisable only by the Grantee during the Grantee’s
lifetime, or, if permissible under applicable law, by the Grantee’s guardian or legal representative.

		2.	No Phantom Shares (i.e. the payment claims represented by the Phantom Shares against the Company)
may be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the Grantee otherwise than by will
or by the laws of descent and distribution or to the Company, and any such purported assignment, alienation, pledge, attachment,
sale, transfer or encumbrance shall be void and unenforceable against the Company or any Affiliate; provided that the designation
of a beneficiary to receive benefits in the event of the Grantee’s death shall not constitute an assignment, alienation,
pledge, attachment, sale, transfer or encumbrance. For purposes of this Section 6, reference to Phantom Shares shall include any
Restricted Shares or ADSs issued in lieu thereof.

		3.	Notwithstanding subsections 1. and 2. above, Phantom Shares may be transferred, without consideration,
to a Permitted Transferee. For this purpose, a “Permitted Transferee” in respect of the Grantee means any member
of the Immediate Family of the Grantee, or any partnership (including limited liability companies and similar entities) of which
all of the partners or members are such Grantee or members of his or her Immediate Family; and the “Immediate Family”
of a Grantee means the Grantee’s spouse, children, stepchildren, grandchildren, 

 

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	 	 	parents, stepparents, siblings, grandparents,
nieces and nephews or the spouse of any of the foregoing individuals.

Section 7

Confidentiality

The Parties agree to treat
the contents of this Agreement including all related information and all Annexes and all data and information relating to the business,
customers, financial statements, conditions or operations of the Company and its Affiliates, as confidential, preserve the confidentiality
thereof, not duplicate or use or disclose to any person such information and to cause his, her or its employees, Affiliates and
representatives who have had access to such information to keep confidential and not to use any such information (a) unless such
information is now or is hereafter disclosed, through no act or omission of any Party or their controlled Affiliates, employees
or representatives, in a manner making it available to the general public, or (b) unless such information is required by law or
legal process to be disclosed, or (c) to the extent necessary to be disclosed in connection with resolution of any dispute with
respect to this Agreement. In addition, the Grantee may entrust confidential matters to persons occupied in a profession bound
to professional secrecy in the fields of law, business, accounting and tax consultancy if and to the extent this is required to
safeguard his or her own legitimate interests. Other exceptions to the professional secrecy may be permitted in individual cases
by a resolution of the shareholders of the Company.

Section 8

Implementation of this Agreement

		1.	This Agreement shall take effect as of 3rd July 2014.

		2.	This Agreement and the Articles constitute the entire agreement between the Company and the Grantee
with respect to the subject matter hereof. This Agreement may not be orally changed, modified or terminated, nor shall any oral
waiver of any of its terms be effective. This Agreement may be changed, modified or terminated only by an agreement in writing
signed by the Company and the Grantee.

Section 9

Declarations

Unless otherwise agreed herein, all notices,
legal remedies or claims required or given hereunder, are sent to the Parties by registered mail to the addresses indicated in
the

 

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preface of this Agreement or to such other address or addresses or to such other Person or Persons as were communicated by
the respective Party to the other Party in accordance with this provision, provided however that each Party has always nominated
an authorized representative for receiving the service of official or court documents within the territory of the Federal Republic
of Germany.

Section 10

Tax Withholding / Responsibility for Taxes

		1.	Regardless of any action the Company or, if different, the Affiliate employing or retaining Grantee
takes with respect to any or all income tax, social insurance, payroll tax, payment on account or other tax-related items related
to Grantee’s receipt of an Award hereunder and legally applicable to Grantee (“Tax-Related Items”), Grantee
acknowledges that the ultimate liability for all Tax-Related Items is and remains Grantee’s responsibility and may exceed
the amount actually withheld by the Company or Affiliate employing or retaining Grantee. Grantee further acknowledges that the
Company and/or the Affiliate employing or retaining Grantee (1) make no representations or undertakings regarding the treatment
of any Tax-Related Items in connection with any aspect of the Phantom Shares, including, but not limited to, the grant, vesting
or settlement of the Phantom Shares, the subsequent sale of shares of Stock acquired pursuant to such settlement and the receipt
of any dividends; and (2) do not commit to and are under no obligation to structure the terms of the grant or any aspect of the
Phantom Shares to reduce or eliminate Grantee’s liability for Tax-Related Items or achieve any particular tax result. Further,
if Grantee has become subject to tax in more than one jurisdiction between the Phantom Shares’ Grant Date and the date of
any relevant taxable event, as applicable, Grantee acknowledges that the Company and/or the Affiliate employing or retaining Grantee
(or formerly employing or retaining Grantee, as applicable) may be required to withhold or account for Tax-Related Items in more
than one jurisdiction.

		2.	Prior to any relevant taxable or tax withholding event, as applicable, Grantee will pay or make
adequate arrangements satisfactory to the Company and/or the Affiliate employing or retaining Grantee to satisfy all Tax-Related
Items. In this regard, Grantee authorizes the Company and/or the Affiliate employing or retaining Grantee, or their respective
agents, at their discretion, to satisfy the obligations with regard to all Tax-Related Items by one or a combination of the following:

		(1)	withholding from Grantee’s wages or other cash compensation paid to Grantee by the Company
and/or the Affiliate employing or retaining Grantee; or

 

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		(2)	withholding from proceeds of the sale of shares of Stock acquired upon settlement of the Phantom
Shares either through a voluntary sale or through a mandatory sale arranged by the Company (on Grantee’s behalf pursuant
to this authorization); or

		(3)	withholding in shares of Stock to be issued upon settlement of the Phantom Shares.

		3.	If Grantee is subject to the short-swing profit rules of Section 16(b) of the U.S. Securities and
Exchange Act of 1934, as amended, then either the Administrator shall establish the method of withholding from alternatives (1)
– (3) above or, if the Administrator does not exercise its discretion prior to the taxable or tax withholding event, as applicable,
then Grantee shall be entitled to elect the method of withholding from the alternatives above.

		4.	To avoid negative accounting treatment, the Company may withhold or account for Tax-Related Items
by considering applicable minimum statutory withholding amounts or other applicable withholding rates. If the obligation for Tax-Related
Items is satisfied by withholding in shares of Stock, for tax purposes, Grantee is deemed to have been issued the full number of
shares of Stock subject to the vested Phantom Shares, notwithstanding that a number of the shares of Stock are held back solely
for the purpose of paying the Tax-Related Items.

		5.	Finally, Grantee shall pay to the Company or the Affiliate employing or retaining Grantee any amount
of Tax-Related Items that the Company or the Affiliate employing or retaining Grantee may be required to withhold or account for
as a result of Grantee’s participation in the Plan that cannot be satisfied by the means previously described. The Company
may refuse to issue or deliver the shares of Stock or the proceeds of the sale of shares of Stock, if Grantee fails to comply with
his or her obligations in connection with the Tax-Related Items.

Section 11

Costs

Each Party bears the costs for the draft
and advice in connection with the conclusion of this Agreement and the measures provided for in it themselves.

 

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Section 12

Severability

		1.	Changes or additions to this Agreement must be made in writing to become effective unless another
specific form is prescribed by law. This applies accordingly to the amendment of the written form clause.

		2.	If a provision of this Agreement should be completely or partly invalid or impracticable, or if
this Agreement should contain omissions, then the validity of the remaining provisions shall not be affected hereby. In place of
the invalid or impracticable provision, a reasonable stipulation shall apply which, if legally permitted, most closely approximates
the intention of the shareholders of the Company in terms of the spirit and purpose of this Agreement.

Section 13

Miscellaneous

		1.	This Agreement is governed by German law. In case of disputes resulting out of or in connection
with this Agreement, to the extent to which a specification about the place of jurisdiction is permissible, lies exclusively within
the competence of the respective local responsible court at the relevant registered office of the Company.

		1.	Phantom Shares and/or any Restricted Shares (or ADSs) issued to the Grantee shall be special incentives
awarded to the Grantee and shall not be taken into account in computing the amount of salary or compensation of the Grantee for
purposes of determining any pension, retirement, death or other benefit under (a) any pension, retirement, profit-sharing,
bonus, insurance or other employee benefit plan of the Company or any Affiliate, except as such plan shall otherwise expressly
provide, or (b) any agreement between (i) the Company or any Affiliate and (ii) the Grantee, except as such agreement shall
otherwise expressly provide.

		2.	Nothing in this Agreement shall interfere with or limit in any way the right of the Company or
any Affiliate to terminate the Grantee’s employment or consulting contract at any time, nor confer upon the Grantee the right
to continue in the employ of or as an officer of or as a consultant to the Company or any Affiliate.

		3.	Headings in this Agreement are inserted merely for the purposes of ease of reference and shall
have no effect on the content or the interpretation of the provisions.

 

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        Place, Date

         
	Place, Date
	                                      	                                      
	Innocoll AG	[•]
		 
	Member of the management board / Vorstand	 

 

    	Page | 12

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