Document:

DESCRIPTION OF COMMON STOCK

    As of the date of the Annual Report on Form 10-K of which this exhibit is a part, Qrons Inc. (the “Company” or “we” or “our”) has one class of securities, its common stock, par
      value $000.1 per share, registered under Section 12 of the Securities Exchange Act of 1934 as amended (the “Exchange Act”).

    The following summary describes the material terms of the Company’s common stock. The description of common stock is qualified by reference to our Articles of Incorporation, as
      amended and our Bylaws, which are incorporated by reference as exhibits to the Annual Report on Form 10-K of which this exhibit is a part.

    General

    Our Articles of Incorporation authorizes us to issue up to 100,000,000 shares of common stock In addition, under our amended and restated certificate of incorporation, our board
      of directors has the authority, without further action by stockholders, to designate up to 10,000 shares of preferred stock, par value $0.001 per share, in one or more series and to fix the rights, preferences, privileges, qualifications and
      restrictions granted to or imposed upon the preferred stock, including dividend rights, conversion rights, voting rights, rights and terms of redemption and liquidation preference and sinking fund terms, any or all of which may be greater than the
      rights of our common stock. The issuance of preferred stock could adversely affect the voting power of holders of common stock and reduce the likelihood that common stockholders will receive dividend payments and payments upon liquidation.  The
      issuance could also have the effect of decreasing the market price of the common stock. The issuance of preferred stock also could have the effect of delaying, deterring or prevent a change in control of the Company.

    Our board of directors has designated 10,000 shares of preferred stock as Series A Preferred Stock (“Series A Stock”) of which 2,000 shares of Series A Stock are issued and
      outstanding as of the date of the Annual Report on Form 10-K. The Series A Preferred Stock is redeemable at the option of the Company at any time, in whole or in part, upon 10 trading days prior notice, at a price of $1.00 per share plus 4% per annum
      from the date of issuance (the "Stated Value"). The holders of the Series A Preferred Stock are entitled to a liquidation preference equal to the Stated Value, prior to the holders of other preferred stock or common stock. The holders of the Series A
      Preferred Stock have the right to convert such stock into common stock at a conversion rate equal to the Stated Value as of the conversion date divided by the average closing price of the common stock for the five previous trading days. The Company
      is required to reserve sufficient number of shares for the conversion of the Series A Preferred Stock. The holders of Class A Preferred Stock shall vote together as a single class with the holders of the Company's common stock and the holders of any
      other class or series of shares entitled to vote with the common stock, with the holders of Class A Preferred Stock being entitled to 66 2/3% of the total votes on all such matters, regardless of the actual number of shares of Class A Preferred Stock
      then outstanding.

    Voting

    Our common stock is entitled to one vote for each share held of record on all matters submitted to a vote of the stockholders, including the election of directors, and does not
      have cumulative voting rights. Accordingly, the holders of a majority of the shares of our common stock entitled to vote in any election of directors can elect all of the directors standing for election. There is no provision in our Articles of
      Incorporation or Bylaws that would delay, defer or prevent a change in control of our company.

    Dividends

    Subject to preferences that may be applicable to any then outstanding preferred stock, the holders of common stock are entitled to receive dividends, if any, as may be declared
      from time to time by our board of directors out of legally available funds. Holders of Series A Stock are entitled to receive dividends on shares of Series A Preferred equal (on an as-converted to common stock basis) to and in the same form as
      dividends actually paid on our common stock.

    
      
        

    

    Liquidation

    In the event of our liquidation, dissolution or winding up, holders of our common stock and holders of Series A Stock will be entitled to share ratably (on an as-converted to
      common stock basis) in the net assets legally available for distribution to stockholders after the payment of all of our debts and other liabilities, subject to the satisfaction of any liquidation preference granted to the holders of any outstanding
      shares of preferred stock.

    Rights and Preferences

    Holders of our common stock have no preemptive, conversion or subscription rights, and there are no redemption or sinking fund provisions applicable to our common stock. The
      rights, preferences and privileges of the holders of our common stock are subject to, and may be adversely affected by, the rights of the holders of shares of any series of our preferred stock that we may designate and issue in the future.

     

    Anti-Takeover Effects of our Articles of Incorporation and Wyoming Law

    Our Articles of Incorporation provide for the issuance of up to 100,000,000 shares of common stock. Our authorized but unissued shares of common stock will be available for future
      issuance without stockholder approval. These additional shares may be utilized for a variety of corporate purposes, including future public offerings to raise additional capital, corporate acquisitions and employee benefit plans. Our board has the
      authority to issue an unlimited additional amount of shares. The existence of unlimited authorized but unissued shares of common stock could render more difficult or discourage an attempt to obtain control of a majority of our common stock by means
      of a proxy contest, tender offer, merger or otherwise.

    We may be or in the future we may become subject to Wyoming's control share law. The law focuses on the acquisition of a "controlling interest" which means the ownership of
      outstanding voting shares sufficient, but for the control share law, to enable the acquiring person to exercise the following proportions of the voting power of the corporation in the election of directors: (i) one-fifth or more but less than
      one-third, (ii) one-third or more but less than a majority, or (iii) a majority or more. The ability to exercise such voting power may be direct or indirect, as well as individual or in association with others. The effect of the control share law is
      that the acquiring person, and those acting in association with it, obtains only such voting rights in the control shares as are conferred by a resolution of the stockholders of the corporation, approved at a special or annual meeting of
      stockholders. The control share law contemplates that voting rights will be considered only once by the other stockholders. Thus, there is no authority to strip voting rights from the control shares of an acquiring person once those rights have been
      approved. If the stockholders do not grant voting rights to the control shares acquired by an acquiring person, those shares do not become permanent non-voting shares. The acquiring person is free to sell its shares to others. If the buyers of those
      shares themselves do not acquire a controlling interest, their shares do not become governed by the control share law. If control shares are accorded full voting rights and the acquiring person has acquired control shares with a majority or more of
      the voting power, any stockholder of record, other than an acquiring person, who has not voted in favor of approval of voting rights is entitled to demand fair value for such stockholder's shares.

    Wyoming's control share law may have the effect of discouraging takeovers of the corporation. In addition to the control share law, Wyoming has a business combination law which
      prohibits certain business combinations between Wyoming corporations and "interested stockholders" for three years after the "interested stockholder" first becomes an "interested stockholder," unless the corporation's board of directors approves the
      combination in advance. For purposes of Wyoming law, an "interested stockholder" is any person who is (i) the beneficial owner, directly or indirectly, of ten percent or more of the voting power of the outstanding voting shares of the corporation, or
      (ii) an affiliate or associate of the corporation and at any time within the three previous years was the beneficial owner, directly or indirectly, of ten percent or more of the voting power of the then outstanding shares of the corporation. The
      definition of the term "business combination" is sufficiently broad to cover virtually any kind of transaction that would allow a potential acquiror to use the corporation's assets to finance the acquisition or otherwise to benefit its own interests
      rather than the interests of the corporation and its other stockholders. The effect of Wyoming's business combination law is to potentially discourage parties interested in taking control of the Company from doing so if it cannot obtain the approval
      of our board of directors.

    
      
        

    

    OTCQB Venture Market

    Our common stock trades under the symbol "QRON" on the OTCQB Venture Market.

    Transfer Agent and Registrar

    The transfer agent and registrar for our common stock is Vstock Transfer, LLC, 18 Lafayette Place, Woodmere, NY 11598.THIRD AMENDMENT TO SERVICES AGREEMENT

    

    

    This Third Amendment to the Services Agreement, dated December 8, 2019, to the Services Agreement, dated December 14, 2017 between  Ariel Scientific Innovations Ltd., a company organized under the
      laws of Israel ("Ariel"), and Qrons Inc., a Wyoming corporation (the “Company”). as amended by First Amendment to Services Agreement, dated April 12, 2018 and a Second Amendment to Services Agreement dated Dec. 14, 2018 (collectively, the “Services
      Agreement”)

    WHEREAS, the Company and Ariel are parties to the Services Agreement; and

    

    

    WHEREAS, the Company and Ariel desire to amend the Services Agreement to extend the term thereof for an additional twelve months as provided herein.

    

    

    NOW, THEREFORE, in consideration of the foregoing and the mutual agreements contained herein, the parties hereto agree as follows:

    

    

    

    

    1. Definitions. Capitalized terms used herein but not otherwise defined herein shall have the
      meanings ascribed to such terms in the Services Agreement.

    

    

    2.         Amendment.
      The Services Agreement shall be hereby amended as follows:

    

    

           The Service Period as defined in Section 1.2 of the Services Agreement is hereby extended for an
    additional twelve-month period and shall terminate on December 14, 2020.
    

    

    3. Fees. In consideration for the performance of the Services, the Company shall pay Ariel $17,250
      within 30 days of the date hereof and an additional $17,250 on or before May 1, 2020.

    

    

    3. Ratification. Except as specifically amended hereby, all of the terms and conditions of the
      Services Agreement shall remain in full force and effect and are hereby ratified and approved.

    

    

    4. Counterparts. This Third Amendment may be executed in one or more counterparts each of whch when
      executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.

    

    

    IN WITNESS WHEREOF, this Third Amendment has been executed by the parties hereto as of December 8, 2019.

    

    

    	
            Ariel Scientific Innovations Ltd.

            By: /s/Larry Loev

            

            Name: Larry Loev

            

            Title: Chief Executive Officer

            

          	
            Qrons Inc.

            By: /s/ Jonah Meer

            

            Jonah Meer

            Chief Executive Officer

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