LICENSE AND DISTRIBUTION AGREEMENT


 


This License and Distribution
Agreement (this “Agreement”), dated as of November 7, 2021 (“Effective Date”), is by and between
by and between Quoin Pharmaceuticals, Inc., a Delaware corporation located at 42127 Pleasant Forest Court, Ashburn, VA 20148 (“Quoin”)
and GenPharm, a company incorporated under the laws of the United Arab Emirates located at Al Manara Tower, Office 2805 in Business Bay,
Dubai, United Arab Emirates (“Licensee”). Quoin and Licensee are sometimes referred to herein individually as a “Party,”
and together as the “Parties.”


 


Recitals


 


WHEREAS,
Quoin owns certain Product Technology with respect to the Product (as defined herein).


 


WHEREAS,
subject to Licensee entering into the Supply Agreement (as defined below) Quoin wishes to grant to Licensee, and Licensee desires to accept,
an exclusive license under the Product Technology for Licensee to obtain the Regulatory Approvals and Exploit the Product in the Territory,
in accordance with the terms and conditions set forth herein.1


 


Intending
To Be Legally Bound, in consideration of the foregoing and the mutual agreements contained herein and subject to the satisfaction
of the terms and conditions set forth herein, the parties hereto agree as follows:


 


Section 1.
Defined Terms


 


Capitalized terms used in
this Agreement and not specifically defined shall have their respective meanings set forth on Exhibit 1 attached hereto, which
Exhibit 1 is hereby incorporated into this Agreement and made a part hereof by reference.


 


Section 2. license
and exclusivity


 


2.1             License
to Licensee. Subject to the terms and conditions of this Agreement, Quoin hereby grants to Licensee
an exclusive (even as to Quoin and its Affiliates) royalty-free license under the Product Technology to Exploit the Product in the Territory,
which license shall not be sublicensable except to subdistributors and only with Quoin’s prior written consent.


 


2.2             Retained
Rights. Quoin retains all rights to the Product Technology that are not licensed to Licensee
hereunder, including the exclusive right to Exploit the Product outside the Territory.


 






     

     


    

 


2.3             Non-Competition.


 


2.3.1.             During
the Term, Quoin shall not, in any capacity, whether directly, indirectly or through Affiliates, for its own account or for the benefit
of any person or Entity, engage in the manufacture, promotion, sale or distribution of the Product for sale in the Territory unless authorized
in writing by Licensee; provided, however, that nothing herein shall restrict Quoin from performing its obligations pursuant to this Agreement
or the Supply Agreement or from Exploiting the Product outside the Territory.


 


2.3.2.             During
the Term and for a period of 12 months after expiration or termination of the Term for any reason, Licensee shall not, in any capacity,
whether directly, indirectly or through Affiliates, for its own account or for the benefit of any person or Entity, engage in the development,
manufacture, supply, promotion, sale or distribution of a Competing Product for sale in the Territory unless authorized in writing by
Quoin.


 


2.3.3.             The
Parties hereto agree that any breach by either Party of the covenants and agreements contained in this Section 2.3 may result in
irreparable injury to the other Party for which money damages could not adequately compensate it and, therefore, in the event of any such
breach, the non-breaching Party shall be entitled (in addition to any other rights and remedies which it or they may have at law or in
equity) to seek an injunction from any competent court of equity to enjoin and restrain the breaching Party and any other person or entity
involved therein from continuing such breach.


 


2.3.4.             If
any portion of the covenants and agreements contained herein, or the application thereof, is construed to be invalid or unenforceable,
then the other portions of such covenant(s) or agreement(s) or the application thereof shall not be affected and shall be given
full force and effect without regard to the invalid or unenforceable portions. If any covenant or agreement herein is held to be unenforceable
because of the area covered, the duration thereof, or the scope thereof, then the court making such determination shall have the power
to reduce the area and/or duration and/or limit the scope thereof, and the covenant or agreement shall then be enforceable in its reduced
form.


 


Section 3. Regulatory
Approval in the Territory


 


3.1             Licensee
shall use Commercially Reasonable Efforts to obtain all required Regulatory Approvals for the Product for the Initial Indication as soon
as reasonably possible following the Effective Date.


 


3.2             Licensee
shall be responsible for all aspects of preparing, obtaining, and maintaining throughout the Term the Regulatory Approvals in Quoin’s
name (where applicable),2 including setting the overall regulatory
strategy therefor and conducting communications with Governmental Authorities. Quoin shall reimburse Licensee for all necessary costs
to file for and obtain any required Regulatory Approvals in the Territory, provided that all such costs shall be approved in advance by
Quoin. Licensee shall determine what information or documentation may be required to complete any forms or applications necessary to file
for the Regulatory Approvals for the Product. Licensee shall notify Quoin if any further development is required in connection with securing
the Regulatory Approvals, including any supplemental clinical trials and Quoin will determine whether to proceed or not, at Quoin’s
expense. Subject to the foregoing, upon request from Licensee, Quoin will provide to Licensee reasonable assistance and information that
is in the possession of Quoin as necessary for Licensee to obtain such Regulatory Approvals. Licensee will deliver to Quoin any data or
information related to the Product generated for purposes of submission of the Regulatory Approvals, and a copy of the applications for
Regulatory Approvals upon submission.


 






    2 


     


    

 


3.3             Licensee
shall use Commercially Reasonable Efforts to file for the Regulatory Approvals for the Product for the Initial Indication in each jurisdiction
in the Territory within six (6) months following the date of Quoin receiving regulatory approval for such Initial Indication in either
the United States or European Union. In the event that Licensee determines that the Data Package is not sufficient to obtain the Regulatory
Approvals, and the additional information and documentation required makes it unlikely that the Licensee will be able to file for the
Regulatory Approvals within such six-month period, Licensee shall promptly notify Quoin and the Parties will discuss a reasonable timeline
for Quoin and Licensee to compile the necessary information and documentation and submit the filings for the Regulatory Approvals.


 


3.4             If
Licensee does not file for the Regulatory Approvals (in a form reasonably likely to be approved) for the Initial Indication with applicable
Governmental Authorities in each jurisdiction in the Territory within six (6) months following the date of Quoin receiving regulatory
approval in either the United States or the European Union, or such later date as agreed upon by Quoin, Quoin may terminate this Agreement
in its entirety or with respect to any jurisdiction3 in accordance
with Section 11.2.2 hereof. If the Regulatory Approvals for the Initial Indication have not been granted by the applicable Governmental
Authorities in each jurisdiction in the Territory on or before such date which is 24 months after the date of filing such Regulatory Approvals
or such later date as agreed upon by Quoin, Quoin may terminate this Agreement in its entirety or with respect to any jurisdiction in
accordance with Section 11.2.2 hereof. Notwithstanding the foregoing, in the event that Product has been ordered under the Supply
Agreement for sale on a named patient basis without Regulatory Approvals, Quoin shall not terminate this Agreement with respect to such
orders.


 


3.5             In
the event that Quoin obtains regulatory approval for any Additional Indication for the Product in the United States or the European Union,
Licensee will use Commercially Reasonable Efforts to obtain, as promptly as practicable (but in any event within 6 months following such
approval in the United State or the European Union), any Regulatory Approvals required to permit the Commercialization of the Product
in each jurisdiction in the Territory for such Additional Indication. If the Regulatory Approvals for such Additional Indication have
not been granted by the applicable Governmental Authorities in the Territory on or before such date which is 24 months after the date
of filing such Regulatory Approvals or such later date as agreed upon by Quoin, Licensees rights to the Product for such Additional Indication
may be terminated by Quoin in its entirety or with respect to any jurisdiction in accordance with Section 11.2.2 hereof. Such termination
will not apply to the Initial Indication or to any subsequent additional Indications for which Licensee obtains approval for in the Territory.
Notwithstanding the foregoing, in the event that Product has been ordered under the Supply Agreement for sale on a named patient basis
without Regulatory Approvals, Quoin shall not terminate this Agreement with respect to such orders.


 






    3 


     


    

 


Section 4. Commercialization


 


4.1             Launch.
So long as the Launch Quantities are delivered in accordance with the terms of the Supply Agreement, Licensee shall provide Quoin with
a Launch Plan for the Product in each jurisdiction in the Territory within 6 months following receipt of approval of the Regulatory Approvals
for the Initial Indication from the Governmental Authorities in the Territory and will launch the Product in each jurisdiction in the
Territory as soon as reasonably possible thereafter. In the event that Licensee does not provide such a Launch Plan for the Product within
such time period, Quoin may terminate this Agreement in accordance with Section 11.2.2.


 


4.2             Commercialization.
Licensee shall market, promote, sell, and otherwise commercialize the Product in the Territory
during the Term. Licensee shall use Commercially Reasonable Efforts to maximize sales in the Territory. Licensee shall not sell the Product
bundled or in combination with any other product without Quoin’s prior written consent.


 


4.3             Sales
Efforts.


 


4.3.1.             If,
during Year 3 following Launch of the Product in the Territory, the minimum specified quantities specified in the KPI’s of the Supply
agreement have not been met and Quoin determines in its sole discretion that Licensee is not using Commercially Reasonable Efforts to
maximize sales in the Territory (with respect to any criteria in Quoin’s discretion, including, without limitation, maintaining
Regulatory Approvals, placement of the Product in any formulary, Product treatment with respect to reimbursements and distribution infrastructure),
the Parties will meet promptly following notice thereof from Quoin to discuss and approve a plan for Licensee to increase its efforts
to market, promote, sell, and otherwise commercialize the Product in the Territory.. If the Parties are unable to reach an agreement with
respect to the aforementioned plan in form satisfactory to Quoin, Quoin may terminate this Agreement upon written notice to Licensee.


 


4.4             Supply.
The parties shall negotiate in good faith the terms of a supply agreement (which shall include applicable quality and pharmacovigilance
provisions) pursuant to which Quoin will manufacture and supply, or have manufactured and supplied, to Licensee the Product for sale in
the Territory during the Term (the “Supply Agreement”). Licensee and its affiliates shall purchase all of their requirements
for the Product exclusively from Quoin. If the Parties have not entered into a Supply Agreement in form satisfactory to Quoin prior to
Licensee obtaining any Regulatory Approval for the initial indication in the Territory, Quoin may terminate this Agreement upon written
notice to Licensee.


 






    4 


     


    

 


Section 5. Financial
Provisions


 


5.1             Licensee
will purchase Product from Quoin pursuant to the terms of the Supply Agreement.


 


Section 6. Intellectual
Property


 


6.1             Ownership.
The Product Technology shall at all times be and remain the sole property of Quoin subject to the rights granted herein. All Inventions
generated, developed, conceived or reduced to practice by Licensee or on the behalf of Licensee related to Di Palmitoyl HydroxyProline
and the InvisiCare Technology are hereby assigned to Quoin. Licensee shall execute all documents necessary or reasonably requested to
effect the assignment of the entire right, title and interest to such Inventions to Quoin.


 


6.2             Product
Patents. Quoin shall have the sole right to enforce the Product Patents in the Territory, and
shall retain any damages or other amounts collected in connection therewith. Licensee will not take any actions that would challenge Quoin’s
ownership in the Product Patents, or contest the validity of the Product Patents. Such actions would be considered a breach of the Agreement.


 


6.3             Product
Trademarks. Quoin shall maintain the Product Trademark registration in the Territory throughout
the Term. All Product sold by Licensee in the Territory shall bear the Product Trademark and Licensee will commercialize the Product in
the Territory under the Product Trademark. Furthermore, Licensee shall only use the Product Trademark in connection with Product supplied
by Quoin. The nature and quality of the Product advertised or sold by Licensee on which a Product Trademark appears shall conform to quality
standards and the specifications specified by Quoin in the Data Package. Licensee agrees to cooperate with Quoin to enable Quoin to verify
the nature and quality of the use of the Product Trademarks and that the use of the Product Trademarks is consistent with the agreed quality
standards and specifications. Licensee agrees that in using the Product Trademark in its activities under this Agreement, it will not
represent in any way that it has any right or title to the ownership of the Product Trademark or the registration therefor. Licensee shall
not use the Product Trademark in any way that would diminish, tarnish, disparage, or damage the goodwill in and to the Product Trademark.
When using the Product Trademark, Licensee shall comply with all Applicable Laws. Licensee will not take any actions that would challenge
Quoin’s ownership in the Product Trademark, or contest the validity of the Product Trademark. Such actions would be considered a
breach of the Agreement. All goodwill accruing to the Product Trademark as a result of the use of the Product Trademark shall belong solely
to Quoin. Licensee shall provide to Quoin prompt written notice of any actual or threatened infringement of the Product Trademark in the
Territory and of any actual or threatened claim that the use of the Product Trademark in the Territory violates the rights of any Third
Party, of which Licensee becomes aware. Quoin shall the sole right to such action as Quoin deems necessary against a Third Party based
on any alleged, threatened or actual infringement, dilution, misappropriation or other violation of or unfair trade practices or any other
like offense relating to, the Product Trademark by a Third Party in the Territory at its sole cost and expense and using counsel of its
own choice. Quoin shall retain any damages or other amounts collected in connection therewith.


 






    5 


     


    

 


Section 7. Regulatory


 


7.1             Throughout
the Term, Licensee shall maintain at Quoin’s cost and expense the Regulatory Approvals for the Product in full force and effect.
Licensee will be responsible for interacting with the relevant Governmental Authorities regarding the Regulatory Approvals. Licensee will
provide Quoin with copies of any correspondence with any Governmental Authority regarding the Product or Regulatory Approvals in the Territory
within one (1) business day of receipt of such correspondence. Licensee shall notify Quoin in advance of any meetings with or communications
with any Governmental Authority related to the Product.


 


7.2             The
Parties’ obligations with respect to exchanging and reporting adverse events and other safety information relating to the Product
will be set forth in a Pharmacovigilance Agreement, which will be executed by the Parties within 90 days following the Effective Date
of this Agreement.


 


7.3             Licensee
will comply with all Applicable Laws in the Exploitation of the Product in the Territory and the performance of its obligations under
this Agreement. Licensee will maintain all Permits necessary to perform its obligations hereunder in compliance with all Applicable Laws.


 


Section 8. Representations
and Warranties


 


8.1             Quoin
Representation and Warranties. Quoin represents and warrants to Licensee that:


 


8.1.1.             it
is duly organized and validly existing under the Applicable Law of the jurisdiction of its incorporation, and has full corporate power
and authority to enter into this Agreement and to carry out the provisions hereof;


 


8.1.2.             it
is duly authorized to execute and deliver this Agreement and to perform its obligations hereunder, and the Person executing this Agreement
on its behalf has been duly authorized to do so by all requisite corporate action;


 


8.1.3.             this
Agreement is legally binding upon it and enforceable in accordance with its terms and the execution, delivery and performance of this
Agreement by it does not conflict with any agreement, instrument or understanding, oral or written, to which it is a party or by which
it may be bound, nor violate any Applicable Law; and


 


8.1.4.             it
has not granted, and shall not grant during the Term, any right to any Third Party which would conflict with the rights granted to Licensee
hereunder.


 


8.2             Licensee
Representation and Warranties. Licensee represents and warrants to Quoin that:


 


8.2.1.             it
is duly organized and validly existing under the Applicable Law of the jurisdiction of its incorporation, and has full corporate power
and authority to enter into this Agreement and to carry out the provisions hereof;


 






    6 


     


    

 


8.2.2.             it
is duly authorized to execute and deliver this Agreement and to perform its obligations hereunder, and the Person executing this Agreement
on its behalf has been duly authorized to do so by all requisite corporate action;


 


8.2.3.             this
Agreement is legally binding upon it and enforceable in accordance with its terms and the execution, delivery and performance of this
Agreement by it does not conflict with any agreement, instrument or understanding, oral or written, to which it is a party or by which
it may be bound, nor violate any Applicable Law;


 


8.2.4.             None
of Licensee’s employees, consultants or contractors: (a) is debarred under Section 306(a) or 306(b) of the Food
Drug and Cosmetics Act or by the analogous applicable Laws of any Governmental Authority; (b) has, to Licensee’s knowledge,
been charged with, or convicted of, any felony or misdemeanor within the ambit of 42 U.S.C. §§ 1320a-7(a), 1320a-7(b)(l)-(3),
or pursuant to any analogous applicable Laws, or is proposed for exclusion, or is the subject of exclusion or debarment proceedings by
a Governmental Authority; or (c) is excluded, suspended or debarred from participation, or is otherwise ineligible to participate,
in any U.S. or non-U.S. healthcare programs, or is excluded, suspended or debarred by any Governmental Authority from participation, or
is otherwise ineligible to participate, in any procurement or nonprocurement programs. Without limiting the foregoing, Licensee hereby
represents and warrants, and covenants, as the case may be, that as of the Effective Date and throughout the Term of the Agreement, neither
it nor any of its officers, directors or Affiliates is or shall be prohibited by any law, rule or regulation or by any order, directive
or policy from manufacturing or selling (as the case may be) pharmaceutical products within the Territory.


 


8.3             No
Other Representations and Warranties. EXCEPT FOR THE REPRESENTATIONS
OR WARRANTIES EXPRESSLY SET FORTH IN THIS AGREEMENT, EACH PARTY HEREBY DISCLAIMS ALL REPRESENTATIONS AND WARRANTIES, WHETHER EXPRESS OR
IMPLIED, ORAL OR WRITTEN.


 


Section 9.  Confidentiality


 


9.1             At
all times during the Term and for a period of ten (10) years following termination or expiration hereof in its entirety, each Party
shall and shall cause its officers, directors, employees and agents and sublicensees to, keep confidential and not publish or otherwise
disclose to a third party and not use, directly or indirectly, for any purpose, any Proprietary Information furnished or otherwise made
known to it, directly or indirectly, by another Party, except to the extent such disclosure or use is expressly permitted by the terms
of this Agreement.


 


9.2             Each
Party (the “Receiving Party”) may disclose Proprietary Information of either of the other Party (each, a “Disclosing
Party”) to the extent that such disclosure is:


 


9.2.1.             made
in response to a valid order of a court of competent jurisdiction or other supra-national, federal, national, regional, state, provincial
and local governmental or regulatory body of competent jurisdiction or, if in the reasonable opinion of the Receiving Party’s legal
counsel, such disclosure is otherwise required by law, including by reason of filing with securities regulators; provided, however,
that the Receiving Party shall first have given notice to the Disclosing Party and given the Disclosing Party a reasonable opportunity
to quash such order or to obtain a protective order or confidential treatment requiring that the Proprietary Information and documents
that are the subject of such order be held in confidence by such court or agency or, if disclosed, be used only for the purposes for which
the order was issued; and provided, further, that the Proprietary Information disclosed in response to such court or governmental
order shall be limited to that information which is legally required to be disclosed in response to such court or governmental order;


 






    7 


     


    

 


9.2.2.             made
by or on behalf of the Receiving Party to the Governmental Authorities as required in connection with any filing, application or request
for approval of the Regulatory Approvals or other Permit related to the Exploitation of the Product; provided, however, that reasonable
measures shall be taken to assure confidential treatment of such information to the extent practicable and consistent with Applicable
Law; or


 


9.2.3.             made
by or on behalf of the Receiving Party to potential or actual investors, acquirers, licensees or sublicensees as may be necessary in connection
with their evaluation of such potential or actual investment, acquisition, license or sublicense; provided, however, that such
persons shall be subject to obligations of confidentiality and non-use with respect to such Proprietary Information substantially similar
to the obligations of confidentiality and non-use of the receiving Party pursuant to this Section 9.2; provided, further,
that if either Party seeks to disclose the terms of this Agreement to potential investors, acquirers, licensees or sublicensees, the Party
seeking to disclose this Agreement must obtain the other Party’s prior written consent before disclosing this Agreement (such consent
not to be unreasonably withheld, delayed or conditioned).


 


9.3             No
Party shall issue any general press release or make any public statement with respect to this Agreement without the consent of the other
Party, except as may be required by Applicable Law or the rules of any applicable stock exchange.


 


Section 10.
Indemnification


 


10.1          Quoin’s
Indemnification. Quoin shall indemnify Licensee and its directors, officers, employees, and agents,
and defend and save each of them harmless, from and against any and all losses, damages, liabilities, costs, and expenses (including reasonable
attorneys’ fees and expenses) (collectively, “Losses”) incurred in connection with any and all suits, investigations,
claims or demands of Third Parties (collectively, “Third Party Claims”) arising from, relating to, or occurring as
a result of: (a) the breach by Quoin of this Agreement; (b) the negligence, gross negligence, or willful misconduct on the part
of Quoin or its directors, officers, employees or agents in performing its or their obligations under this Agreement; or (c) any
claim of infringement or inducement of infringement of the intellectual property rights of any Third Party resulting from the use of the
Product Trademark in the Exploitation of the Product in the Territory; except, in each case ((a), (b) and (c)), for those Losses
for which Licensee has an obligation to indemnify Quoin pursuant to Section 10.2 hereof, as to which Losses each Party shall indemnify
the other to the extent of their respective liability.


 






    8 


     


    

 


10.2          Licensee’s
Indemnification. Licensee shall indemnify Quoin and its directors, officers, employees, and agents,
and defend and save each of them harmless, from and against any and all Losses incurred in connection with any and all Third Party Claims
arising from, relating to, or occurring as a result of: (a) the breach by Licensee of this Agreement; (b) the negligence, gross
negligence, or willful misconduct on the part of Licensee or its directors, officers, employees or agents in performing its or their obligations
under this Agreement; or (c) the Exploitation of the Product by Licensee in the Territory; except, in each case ((a), (b) and
(c)), for those Losses for which Quoin has an obligation to indemnify Licensee pursuant to Section 10.1 hereof, as to which Losses
each Party shall indemnify the other to the extent of their respective liability.


 


10.3          Indemnification
Procedures. With respect to each event, occurrence or matter (an “Indemnification Matter”)
as to which Quoin or Licensee, as the case may be (the “Indemnitee”) is entitled to indemnification from the other
Party (the “Indemnitor”) under this Section 10:


 


10.3.1.           Within
ten (10) days after the Indemnitee receives written documents underlying the Indemnification Matter or, if the Indemnification Matter
does not involve a third party action, suit, claim or demand, promptly after the Indemnitee first has actual knowledge of the Indemnification
Matter, the Indemnitee shall give notice to the Indemnitor of the nature of the Indemnification Matter and the amount demanded or claimed
in connection therewith (“Indemnification Notice”), together with copies of any such written documents.


 


10.3.2.           If
a third party action, suit, claim or demand is involved, then, upon receipt of the Indemnification Notice, the Indemnitor shall, at its
expense and through counsel of its choice, promptly assume and have sole control over the litigation, defense or settlement (the “Defense”)
of the Indemnification Matter, except that (i) the Indemnitee may, at its option and expense and through counsel of its choice, participate
in (but not control) the Defense; (ii) if the Indemnitee reasonably believes that the handling of the Defense by the Indemnitor may
have a material adverse effect on the Indemnitee, its business or financial condition, or its relationship with any customer, prospect,
supplier, employee, salesman, consultant, agent or representative, then the Indemnitee may, at its option and expense and through counsel
of its choice, assume control of the Defense, provided that the Indemnitor shall be entitled to participate in the Defense at its expense
and through counsel of its choice; (iii) the Indemnitor shall not consent to any Judgment, or agree to any settlement, without the
Indemnitee’s prior written consent; and (iv) if the Indemnitor does not promptly assume control over the Defense or, after
doing so, does not continue to prosecute the Defense in good faith, the Indemnitee may, at its option and through counsel of its choice,
but at the Indemnitor’s expense, assume control over the Defense. In any event, the Indemnitor and the Indemnitee shall fully cooperate
with each other in connection with the Defense including by furnishing all available documentary or other evidence as is reasonably requested
by the other.


 


10.3.3.           All
amounts owed by the Indemnitor to the Indemnitee (if any) shall be paid in full within fifteen (15) business days after a final Judgment
(without further right of appeal) determining the amount owed is rendered, or after a final settlement or agreement as to the amount owed
is executed.


 






    9 


     


    

 


10.4               Disclaimer
of Certain Losses.  EXCEPT (i) IN THE EVENT OF THE FRAUD OF A PARTY OR OF A PARTY’S
BREACH OF ITS OBLIGATIONS UNDER SECTION 9, (ii) TO THE EXTENT ANY SUCH DAMAGES ARE REQUIRED TO BE PAID TO A THIRD PARTY AS
PART OF A CLAIM FOR WHICH A PARTY PROVIDES INDEMNIFICATION UNDER THIS SECTION 10, NEITHER PARTY NOR ANY OF ITS AFFILIATES SHALL
BE LIABLE IN CONTRACT, TORT, NEGLIGENCE, BREACH OF STATUTORY DUTY OR OTHERWISE FOR ANY INDIRECT, INCIDENTAL, PUNITIVE, REMOTE OR
SPECULATIVE DAMAGES OR OTHER DAMAGES (INCLUDING LOST PROFITS) THAT ARE NOT PROBABLE AND REASONABLY FORESEEABLE.


 


10.6          Insurance.
Licensee shall have and maintain such types and amounts of insurance covering its Exploitation
of the Product in the Territory as is (i) normal and customary in the pharmaceutical industry generally for parties similarly situated
and (ii) otherwise required by applicable Law. Upon request by Quoin, Licensee shall provide to Quoin evidence of its insurance coverage.


 


Section 11.     Term
and Termination


 


11.1          Term.
This Agreement shall commence on the Effective Date and shall continue in effect for 5 years, unless earlier terminated in accordance
with this Section 10.


 


11.2          Early
Termination.


 


11.2.1.           The
Parties can terminate this Agreement upon mutual written agreement of the Parties.


 


11.2.2.           Quoin
can terminate this Agreement pursuant to Section 3.4, Section 3.5, Section 4.1, or 4.3 hereof upon written notice to Licensee.


 


11.2.3.           Each
Party shall have the right to terminate this Agreement upon written notice to the other Party if the other Party has materially breached
this Agreement and, after receiving written notification from the terminating Party identifying such material breach in reasonable detail,
the breaching Party fails to cure such material breach within thirty (30) calendar days from the date of such notice.


 


11.2.4.           Each
Party shall have the right to terminate this Agreement upon the filing or institution of any bankruptcy, reorganization, liquidation or
receivership proceedings by another Party, or upon the failure by such other Party for more than ninety (90) days to discharge or obtain
the dismissal of any such actions filed against it. Such termination shall be effective upon receipt of notice from the Party not involved
in such event.


 






    10 


     


    

 


11.3          Effects
of Expiration or Termination.


 


11.3.1.           Upon
expiration or termination of this Agreement, all rights granted by Quoin to Licensee shall revert to Quoin.


 


11.3.2.           Expiration
or termination of this Agreement for any reason shall not release either Party of any obligation or liability which, at the time of such
expiration or termination, has already accrued to the other Party or which is attributable to a period prior to such expiration or termination.


 


11.3.3.           Upon
expiration or termination of this Agreement for any reason:


 


(a)           Licensee
shall, as soon as possible following such termination or expiration, take all actions required and execute all documents required (including
any actions or documents requested by Quoin) to transfer the Regulatory Approvals for the Product in the Territory to Quoin or Quoin’s
designee free and clear of any liens or encumbrances at the earliest possible time following such termination or expiration. Licensee
shall promptly deliver to Quoin copies of all Regulatory Documentation related to the Product; and


 


(b)          At
Quoin’s request and direction, Licensee will continue to perform under the terms of this Agreement until the transfer of the Regulatory
Approvals for the Product has been approved by the applicable Governmental Authorities.


 


11.4          Surviving
Obligations. Sections 2.3.2 – 2.3.4, 6.1, 6.2, 9, 10, 11.3.2, 11.3.3, 11.4, and 12 and
Exhibit 1 of this Agreement shall survive the termination or expiration of this Agreement for any reason.


 


Section 12.     Other
Provisions


 


12.1          Fees
and Expenses. Subject to the parties indemnification rights, Licensee shall pay all of the fees
and expenses incurred by it and Quoin shall pay all of the fees and expenses incurred by Quoin, in negotiating and preparing this Agreement
and in consummating the transactions contemplated hereby.


 


12.2          Notices.
Any notices, requests, demands or other communications required or permitted to be sent hereunder shall be delivered personally or by
facsimile, sent by overnight or international courier or mailed by registered or certified mail, return receipt requested, to the following
addresses, and shall be deemed to have been received on the day of personal delivery or delivery by facsimile, one business day after
deposit with an overnight domestic courier or three business days after deposit in the mail:


 


	
    If to Licensee:

     

    Attention:
	 	
    Genpharm Services Fz LLC

    Al manara Tower, office 2805

    Business Bay, Dubai

    United Arab Emirates

    Attention: Kamel Ghammachi

    Facsimile: +971.4.4227011

    Email: kamel.ghammachi@genpharmservices.com

    




 






    11 


     


    

 


	With a copy to:		 



 


	If to Quoin:	 	 
	 	 	 
	 	 	 
	
    Attention:

     

     

    With a copy to:
	
     
	Michael Myers, Ph.D

                                42127 Pleasant Forest Court,

                                Ashburn, VA 20148



 


12.3          Entire
Understanding. This Agreement, together with the Exhibits and Schedules hereto, state the entire
understanding among the parties with respect to the subject matter hereof, and supersede all prior oral and written communications and
agreements, and all contemporaneous oral communications and agreements, with respect to the subject matter hereof including all confidentiality
letter agreements and letters of intent previously entered into among some or all of the parties hereto. No amendment or modification
of this Agreement shall be effective unless in writing and signed by the party against whom enforcement is sought.


 


12.4          Assignment.
This Agreement shall bind, benefit, and be enforceable by and against Licensee, Quoin, and each of their respective successors and consented-to
assigns. No party shall in any manner assign any of such party’s rights or obligations under this Agreement without the express
prior written consent of the other parties unless to an affiliate.


 


12.5           Waivers.
Except as otherwise expressly provided herein, no waiver with respect to this Agreement shall be enforceable unless in writing and signed
by the party against whom enforcement is sought. Except as otherwise expressly provided herein, no failure to exercise, delay in exercising,
or single or partial exercise of any right, power or remedy by any party, and no course of dealing between or among any of the parties,
shall constitute a waiver of, or shall preclude any other or further exercise of, any right, power or remedy.


 


12.6           Severability.
If any provision of this Agreement is construed to be invalid, illegal or unenforceable, then the remaining provisions hereof shall not
be affected thereby and shall be enforceable without regard thereto.


 


12.7          Counterparts.
This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be an original hereof,
and it shall not be necessary in making proof of this Agreement to produce or account for more than one counterpart hereof.


 






    12 


     


    

 


12.8          Section Headings.
Section and subsection headings in this Agreement are for convenience of reference only, do not constitute a part of this Agreement,
and shall not affect its interpretation.


 


12.9          References.
All words used in this Agreement shall be construed to be of such number and gender as the context
requires or permits.


 


12.10        Controlling
Law. THIS AGREEMENT IS MADE UNDER, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF New York, UNITED STATES OF AMERICA, APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED SOLELY THEREIN, WITHOUT
GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAW.


 


12.11        Arbitration.
If a matter cannot be resolved by the Parties, any said dispute shall be submitted to binding arbitration for final decision, and only
through binding arbitration. Any such arbitration shall be held in New York, New York, in the English language in accordance with the
then-existing Rules of Arbitration of the International Chamber of Commerce (the “ICC Rules”), except where those
rules conflict with this Section 12.11, in which case this Section 12.11 controls. Unless otherwise agreed by the Parties,
the tribunal shall be comprised of three (3) arbitrators; each Party shall nominate one arbitrator and the two Party-nominated arbitrators
shall nominate the third arbitrator. The arbitrators shall decide the merits of any dispute in accordance with the law governing this
Agreement, without application of any principle of conflict of laws that would result in reference to a different law. Judgment upon the
award rendered by the arbitrators may be entered or enforced in any court having jurisdiction thereof. The decision of the arbitrators
shall be final and binding on the Parties and shall be accompanied by a written opinion of the arbitrators explaining the arbitrators’
rationale for their decision. Unless otherwise agreed by the Parties in writing, the Party losing the arbitration shall pay all fees and
costs of the arbitrators and the ICC, but each Party shall bear its own attorney and expert fees. The Parties agree that, notwithstanding
any provision of Applicable Law, they will not request, and the arbitrators shall have no authority to award, punitive or exemplary damages
against either Party. Pending the selection of the arbitrators or pending the arbitrators’ determination of the merits of any dispute,
either Party may seek appropriate interim or provisional relief from any court of competent jurisdiction as necessary to protect the rights
or property of that Party. The intent of the Parties is that except for seeking appropriate interim or provisional relief or the entering
of an arbitration order in a court of competent jurisdiction, disputes shall be resolved finally in arbitration as provided above, without
appeal, and without recourse to litigation in the courts. The Parties acknowledge that the 1958 United Nations Convention on the Recognition
and Enforcement of Foreign Arbitral Awards (the “New York Convention”) applies to this Agreement and to any arbitral
award or order resulting from any arbitration concluded hereunder.  The award may be made a judgment of a court of competent jurisdiction.


 


12.12        No
Third-Party Beneficiaries. No provision of this Agreement is intended to or shall be construed
to grant or confer any right to enforce this Agreement, or any remedy for breach of this Agreement, to or upon any Person other than the
parties hereto including any customer, prospect, supplier, employee, contractor, salesman, agent or representative of the Quoin.


 






    13 


     


    

 


12.13        Neutral
Construction. In view of the fact that each of the parties hereto have been represented by their
own counsel and this Agreement has been fully negotiated by all parties, the legal principle that ambiguities in a document are construed
against the draftsperson of that document shall not apply to this Agreement.


  


12.14        Costs
in Event of Breach. In the event that either party hereto breaches this Agreement, the non-breaching
party shall be entitled to reimbursement of all costs and expenses associated with enforcing such non-breaching parties rights and remedies
under this Agreement, including but not limited to legal fees and costs of litigation.


 


[Signature page follows]


 



    14 


     


    







 


IN WITNESS WHEREOF, the parties
have executed or caused to be executed this Agreement effective as of the day and year first above written.


 


	By:	/s/ Michael Myers	 
	Name:	Michael Myers	 
	Title:	CEO	 
	 
	By:	/s/ Kamel Ghammachi	 
	Name:	Kamel Ghammachi	 
	Title:	Chairman	 




 


[Signature page to License and Distribution
Agreement]


 






    15 


     


    







 


EXHIBIT 1


 


DEFINED TERMS


 


“Additional
Indication” means any indication other than the Initial Indication.


 


“Applicable
Law” means all applicable Laws, rules, and regulations of any Governmental Authority pertaining to the development,
manufacture, packaging, labeling, storage, import, export, distribution, marketing, sale and/or intended use of the Product in the Territory
and the activities of either Party in performing any covenants under this Agreement.


 


“Commercially
Reasonable Efforts” means the carrying out of such obligations or tasks with a level of effort and resources consistent
with commercially reasonable practices normally devoted by a pharmaceutical company based on conditions then prevailing including issues
of safety and efficacy, product profile, competitiveness of alternative products in the market place, pricing and reimbursement for the
Product, the likely timing of the Product’s entry into the market and other relevant technical and commercial factors.


 


“Commercialize”
or “Commercialization” means the marketing, promotion, sale (and offer for sale or contract to sell), distribution,
manufacturing or having manufactured, importation or other commercial exploitation of the Product.


 


“Competing
Product” means any product that is approved as a drug for the treatment of the same indication for which the Product is
approved and is directly competitive with the Product.


 


“Control”
means, with respect to any particular Intangible, possession by the Party granting the applicable right, license, access or release to
the other Party as provided herein of the power and authority, whether arising by ownership, license, or other authorization, to disclose
and deliver the particular Intangible to the other Party, and to grant and authorize under such Intangible the right, license, access
or release, as applicable, of the scope granted to such other Party in this Agreement without giving rise to any violation of the terms
of any written agreement with any Third Party existing at the time such disclosure is first made or such right, license, access or release
first comes into effect hereunder. “Controlled” and “Controlling” have their correlative meanings.


 


“Data
Package” means the documentation containing information regarding the Product and the processes, techniques,
studies, and data in connection with the Product and documentation for the Product, as prepared for Quoin to obtain approval of the marketing
authorization for the Product in the United States and Europe.


 


“Entity”
means any corporation (including any non-profit corporation), general partnership, limited partnership, limited liability partnership,
joint venture, estate, trust, company (including any company limited by shares, limited liability company or joint stock company), firm,
society or other enterprise, association, organization or entity.


 






    16 


     


    

 


“Exploit”
means to develop, have developed, import, warehouse, release, distribute, sell, offer for sale, commercialize, register, manufacture,
have manufactured, hold or keep (whether for disposal or otherwise), use, have used, import, export, transport, distribute, or otherwise
dispose of. “Exploitation” means the act of Exploiting a product.


 


“Governmental
Authority” means any: (a) nation, principality, republic, state, commonwealth, province, territory, county,
municipality, district or other jurisdiction of any nature; (b) federal, state, local, municipal, foreign or other government; (c) governmental
or quasi-governmental authority of any nature, and any governmental division, subdivision, department, agency, bureau, branch, office,
commission, council, board, instrumentality, officer, official, representative, organization, unit, body or Entity and any court or other
tribunal); (d) multi-national organization or body; or (e) individual, Entity or body exercising, or entitled to exercise, any
executive, legislative, judicial, administrative, regulatory, police, military or taxing authority or power of any nature.


 


“Including”
means including but not limited to.


 


“Initial
Indication” means the treatment of Netherton Syndrome in humans in the Territory.


 


“Intangible”
means any and all of the following and any and all rights and interests in, arising out of, or associated therewith, throughout the world:
(a) all Inventions (whether patentable or not), (b) all Know-How (c) all Product Patents; (d) the Product Trademark;
(e) Proprietary Information, (f) all logos, symbols, trade dress, and slogans, and all goodwill associated therewith and/or
symbolized thereby; (g) all databases and data collections and all rights therein; (h) all moral, integrity, paternity, and
economic rights of authors and inventors, however denominated; and (i) any similar or equivalent rights to any of the foregoing,
including any intangible asset of any nature, whether or not in use, under development or design, or inactive.


 


“Inventions”
means any inventions and/or discoveries, including information, processes, methods, assays, designs, protocols, and formulas, and improvements
or modifications thereof, patentable or otherwise, that are generated, developed, conceived or reduced to practice by or on behalf of
a Party or their respective sublicensees pursuant to activities conducted under this Agreement or otherwise with respect to the Product,
in each case including all rights, title and interest in and to the intellectual property rights therein and thereto.


 


“Judgment”
means any order, writ, injunction, citation, award, decree or other judgment of any nature of any Governmental Authority.


 


“Know-How”
means with respect to the Product all of the following: manufacturing protocols and methods, product specifications, analytical methods
and assays, processes, formulations, product designs, plans, trade secrets, ideas, concepts, manufacturing information, engineering and
other manuals and drawings, standard operating procedures, flow diagrams, chemical data, pharmacological data, pharmacokinetic data, toxicological
data, pharmaceutical data, physical and analytical data, safety data, quality assurance data, quality control and clinical data, technical
information, other data, and research records.


 






    17 


     


    

 


“Launch”
means the date of the first arms-length sale for monetary value of the Product for use or consumption by the end user following receipt
of the Regulatory Approvals.


 


“Law”
means any provision of any foreign, federal, state or local law, statute, ordinance, charter, constitution, treaty, code, rule, regulation
or guideline, including common law.


 


“Patents”
means: (i) all national, regional and international patents and patent applications, including provisional patent applications; (ii) all
patent applications filed either from such patents, patent applications or provisional applications or from an application claiming priority
from either of the foregoing, including divisionals, continuations, continuations-in-part, provisionals, and converted provisionals; (iii) any
and all patents that have issued or in the future issue from the foregoing patent applications ((i) and (ii)), including utility
models, petty patents, innovation patents and design patents and certificates of invention; (iv) any and all extensions or restorations
by existing or future extension or restoration mechanisms, including revalidations, reissues, re-examinations and extensions (including
any supplementary protection certificates and the like) of the foregoing patents or patent applications ((i), (ii) and (iii)); and
(v) any similar rights, including so-called pipeline protection or any importation, revalidation, confirmation or introduction patent
or registration patent or patent of additions to any of such foregoing patent applications and patents.


 


“Permit”
means any license, permit, approval, certification, waiver, order, authorization, right or privilege of any nature, granted, issued, approved
or allowed by any Governmental Authority.


 


“Person”
means any individual, Entity or Governmental Authority.


 


“Pricing
Approval” means any and all pricing and Third Party reimbursement approvals necessary to commercialize the Product
in the Territory.


 


“Product”
means pharmaceutical product QRX003 in finished dosage form for human use.


 


“Product
Patents” means any Patent Controlled or owned by Quoin in the Territory that, absent the license in Section 2.1,
would be infringed by the importation, sale, or use of the Product in the Territory by a third party.


 


“Product
Trademark” means [To be provided]


 


“Product
Technology” means all Intangibles owned or Controlled by Quoin and necessary for the Exploitation of the Product
in the Territory, including, without limitation, the Data Package and the Product Trademark.


 


“Proprietary
Information” means all financial information, marketing information, sales information, customer information, raw
materials, Know-How, drawings, compositions, manufacturing and other specifications, analytical procedures, flow sheets, reports, market
studies, preclinical and clinical test results, regulatory submissions, software and other medical, research, technical, and marketing
information disclosed, directly or indirectly, by a Party to any other Party, information designated “Confidential,” “Proprietary”
or the like, or information that by its nature is information normally intended to be held in confidence. Proprietary will not include
information (a) in the public domain at the time of disclosure, (b) published or otherwise part of the public domain after disclosure
other than by breach of this Agreement by the receiving party, (c) already known by the receiving party at the time of disclosure
and not acquired, directly or indirectly, from the disclosing party or anyone on behalf of the disclosing party, provided that the source
of such information was not known by the receiving party or any of its representatives to be bound by a confidentiality agreement with
respect to such information, and such prior knowledge is properly demonstrated by the receiving party’s written records, or (d) lawfully
provided to the receiving party by a third party who did not require the receiving party to hold the same in confidence and who did not
acquire such information, directly or indirectly, from the disclosing party or anyone on behalf of the disclosing party as demonstrated
by the receiving party’s written records. For clarity, the Data Package and the Product Technology shall be considered Proprietary
Information of Quoin.


 






    18 


     


    

 


“Regulatory
Approvals” shall mean the licenses, registrations, clearances, consents, authorizations, and approvals required to
have manufactured, store, import, transport, market, promote, sell, place on the market, and distribute the Product (including, without
limitation, Pricing Approvals and labeling approvals) in the Territory, and all amendments thereto or supplements thereof.


 


“Regulatory
Documentation” means all (a) regulatory filings and supporting documents, chemistry, manufacturing and controls
data and documentation (including, but not limited to, batch records, master batch production records, standard operating procedures relevant
to the Product, testing logs, sample logs, laboratory logs, and stability logs), preclinical and clinical studies and tests, (b) records
maintained under record keeping or reporting requirements of any Governmental Authority with respect to the Product, the Regulatory Approvals,
or any other Permit related to the Exploitation of the Product, (c) the complete complaint, adverse event and medical inquiry filings
with respect to the Product, (d) all documentation relating to any Governmental Authority inspections relating to the Product and
any communication with any Governmental Authority relating to the Product, the Regulatory Approvals, or any Permit related to the Exploitation
of the Product, including correspondence and minutes of telephone calls or meetings.


 


“Specifications”
means the standards, instructions, and specifications applicable to the manufacture and supply of the Product as set forth in the marketing
authorization for the Product.


 


“Tax”
means (a) any foreign, federal, state or local income, earnings, profits, gross receipts, franchise, capital stock, net worth, sales,
use, value added, occupancy, general property, real property, personal property, intangible property, transfer, fuel, excise, payroll,
withholding, workers compensation, unemployment compensation, social security, retirement, escheat, unclaimed property or other tax of
any nature; (b) any foreign, federal, state or local organization fee, qualification fee, annual report fee, filing fee, occupation
fee, assessment, sewer rent or other fee or charges of any nature; or (c) any deficiency, interest or penalty imposed with respect
to any of the foregoing.


 






    19 


     


    

 


“Territory”
means Algeria, Bahrain, Egypt, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Palestine,
Qatar, Saudi Arabia, Syria, Tunisia, Turkey, United Arab Emirates, and Yemen.


 


“Third
Parties” means any Person other than Licensee, Quoin, any of their respective affiliates or any of their respective
successors or assigns.


 






    20