Document:

CRICOS No. 00213J ABN 83 791 724 622

    Document Classification MOPP F/1.2.5:

 

Research
Agreement

 

	THIS AGREEMENT is made 
	 	 
	BETWEEN  	
    queensland university of
    technology (ABN 83 791 724 622) of 2 George Street, Brisbane, 4000, in the State of Queensland, Australia

    (“QUT”)    

	 	 
	AND	
    QUOIN PHARMACEUTICALS, Inc., a Delaware corporation, with
    an address of 42127 Pleasant Forest Ct, Ashburn, VA 20148 USA  

     

    (“Quoin” or “Collaborator”)
     

  

BACKGROUND

 

The parties wish to collaborate on, and provide
their contributions to, the Project in accordance with the terms of this Agreement.

 

OPERATIVE PROVISIONS

 

		1	DEFINITIONS and INTERPRETATION

 

		1.1	In this Agreement, the following words have the following meanings:

 

Agreement
means this document and any schedules or attachments to this document.

 

Background
Material of a party means Materials created prior to, or independently of, this Agreement (including third party Material)
which that party contributes or makes available for use in the Project, including the Material listed in Schedule 4.

 

Bluebox
means qutbluebox Pty Ltd ABN 97 041 405 905 of Level 4, Block X, 88 Musk Avenue, Kelvin Grove, Qld 4059, being the subsidiary
trustee company established by QUT to commercialise its Intellectual Property Rights.

 

Commencement
Date means the date of complete execution of this Agreement by the Parties.

 

Commercialise
means to exercise or deal with the Intellectual Property Rights in Material, in any way for a financial gain or benefit (whether or not
such gain or benefit is ultimately obtained) including:

 

		(a)	to exercise Intellectual Property Rights in the Material to provide a service for which a financial gain
or benefit is received;

 

		(b)	to exercise Intellectual Property Rights in the Material to create, or as part of, a product or process
which is, or is to be, sold, hired, leased, distributed or made available to others for financial gain or benefit;

 

    	Research Agreement	Page 1 of 26 	 

     

    

 

		(c)	to directly or indirectly grant to others rights to use Intellectual Property Rights in the Material for
a financial gain or benefit,

 

but does not include the use of the
Material in connection with delivering award courses or to undertake public benefit or other non-commercial research with or without funding
from a third party and Commercialisation shall have a corresponding meaning.

 

Confidential
Information of a party means:

 

		(a)	any information designated as that party’s Confidential Information in Schedule 4;

 

		(b)	any new information generated as part of Project Material in which that party owns the Intellectual Property
Rights; and

 

		(c)	any information developed independently of this Agreement (whether by the party or a third party), that
the party makes available to the other party for the purposes of this Agreement including the conduct of the Project which that party
designates as confidential or the receiving party ought reasonably know is confidential from the circumstances or nature of the information,

 

but does not include information which
is:

 

		(d)	publicly available or subsequently becomes publicly available other than in breach of this Agreement;

 

		(e)	lawfully known to another party on a non-confidential basis before being disclosed by the other party;
or

 

		(f)	lawfully acquired by another party on a non-confidential basis from a third party without breaching obligations
of confidentiality.

 

Contributions
means the cash and in-kind contributions to be made by a party as specified in Schedule 3.

 

Expiration
Date means the conclusion of the Project as described in Schedule 2.

 

Force
Majeure Event with respect to a party means an unforeseeable event beyond the control of an affected party which occurs without
fault or negligence of the affected party (but shall not include non-performance of any Specified Personnel) including:

 

		(a)	acts of God;

 

		(b)	war, riot, insurrection, vandalism or sabotage;

 

		(c)	strike, lockout, ban, limitation of work or other industrial disturbance; and

 

		(d)	law, rule or regulation of any government or governmental agency and executive or administrative
order or act of general or particular application.

 

Intellectual
Property Rights or IPRs includes any and all intellectual and industrial property rights throughout the world however conferred
by statute, common law or equity in any jurisdiction including rights in respect of or in connection with:

 

		(a)	copyright (including future copyright and rights in the nature of or analogous to copyright);

 

		(b)	plant varieties;

 

		(c)	inventions (including patents and any divisionals, continuations, continuation-in-parts, patent term extensions,
and supplementary protection certificates thereto),

 

		(d)	confidential information, trade secrets and know-how;

 

		(e)	trade marks, service marks;

 

		(f)	designs, circuit layouts; and

 

    	Research Agreement	Page 2 of 26 	 

     

    

 

any other results of intellectual activity
in the industrial, commercial, scientific or literary or artistic fields, whether or not now existing and whether or not registered or
registrable and includes any rights to apply for the registration of such rights and includes all renewals and extensions.

 

Key
Terms means the key terms described in clause 9.4 which must be included in an agreement described in clause 9.1.

 

Material
means any ideas, discoveries, inventions, information, data, compilations, records, designs, works, technology, software, methods,
processes, formulas, names, logos or any other thing of any kind in which Intellectual Property Rights or other rights subsist.

 

Option
means the exclusive option described in clause 9.1 of this Agreement.

 

Option
Period shall be from the Commencement of this Agreement until the earlier of the following:

 

		(a)	Six (6) months after the conclusion of the Project under this Agreement;

 

		(b)	Execution of an agreement described in clause 9.1 of this Agreement;

 

		(c)	Termination of this Agreement under clause 16.2.

 

Project
means the project described in Schedule 2.

 

Personal
Information means information or an opinion, including information or an opinion forming part of a database, whether true or
not, and whether recorded in a material form or not, about an individual whose identity is apparent, or can reasonably be ascertained,
from the information or opinion.

 

Personnel
of a party means the employees, contractors, students and any other person that is an agent of that party.

 

“Post Doc” means
the post doctorial candidate hired by QUT and included as QUT’s Specified Personnel in connection with the terms of this Agreement.

 

Project
Material means all Material created in connection with the Project by a party’s Personnel. For the avoidance of doubt
Project Material does not include Background Material incorporated in the Project Material.

 

Specified
Personnel are those Personnel of a party listed in Schedule 2.

 

Term
is defined in clause 2.1.

 

		1.2	In this Agreement:

 

		(a)	a right to ‘use’ Material includes any use that requires the exercise of Intellectual Property
Rights in that Material;

 

		(b)	the singular includes the plural and vice versa;

 

		(c)	a reference to a gender includes the other genders;

 

		(d)	headings are for reference only and do not affect the meaning of any provision;

 

		(e)	other grammatical forms of each defined word or expression will have a corresponding meaning;

 

    	Research Agreement	Page 3 of 26 	 

     

    

 

		(f)	a reference to this Agreement includes any schedules or annexures to this Agreement;

 

		(g)	a reference to a clause, paragraph, schedule or annexure is a reference to a clause or paragraph of or
schedule or annexure to this Agreement;

 

		(h)	a reference to a document or agreement, including a reference to this Agreement, includes a reference
to that document or agreement as novated, varied or replaced from time to time;

 

		(i)	a reference to “$”, “$A”, “dollar” or “A$” is a reference
to Australian currency;

 

		(j)	a reference to a month is a reference to a calendar month;

 

		(k)	a reference to a person includes a reference to bodies corporate, partnerships, incorporated and unincorporated
associations, firms, joint ventures, trusts, governments and governmental and semi-governmental bodies;

 

		(l)	a reference to any legislation, regulation or other statutory instrument includes a reference to any enactment,
amendment, substitution or consolidation and any statutory instrument issued pursuant to such legislation, regulation or other statutory
instrument;

 

		(m)	a reference to writing includes all physical and electronic methods of visibly representing or reproducing
words, figures or symbols;

 

		(n)	no rule of construction applies to the disadvantage of the party that drafts this Agreement on the
basis that the party suggested the relevant drafting;

 

		(o)	words such as “includes” and “including” do not impose any limitation on the construction
of general language that is followed by specific examples.

 

		1.3	In the event of any inconsistency between any of the provisions of this Agreement, they shall take precedence
in the following order:

 

		(a)	the terms and conditions (with primary obligations taking precedence);

 

		(b)	the schedules; and

 

		(c)	any other document attached or incorporated by reference.

 

		2	TERM

 

		2.1	Except in relation to the Option and all terms relevant to it, this Agreement commences on the Commencement
Date and ends on the Expiration Date unless terminated earlier in accordance with this Agreement (Term).

 

		2.2	Prior to the expiry of the Agreement, the parties may extend the Term by written agreement. Any agreement
to such extension is made in each party’s absolute discretion and subject to internal approval.

 

		3	CONDUCT OF PROJECTS

 

		3.1	The parties agree to participate in the Project:

 

		(a)	as specified in Schedule 2 and this Agreement;

 

		(b)	diligently, competently and in accordance with the professional, scientific, ethical, business and financial
principles and standards that would be reasonably expected to apply to such work; and

 

		(c)	in accordance with applicable laws.

 

		(d)	Notwithstanding the foregoing, it is acknowledged that all research is being performed by QUT through
its Specified Personnel. QUT shall perform (and cause is Specified Personnel to perform) the Project consistent with subpart (b) above,
by qualified personnel and in accordance with accepted scientific and ethical principles, standards and laboratory procedures and consistent
with (i) effort and at a quality comparable to research performed at major public and private research universities (including within
the United States and Australia) and (ii) applicable laws. QUT shall obtain (and require its Specified Personnel and approved sub-contractors
to obtain) all required licenses, permits regulatory or ethics approval before carrying out activities under this Agreement.

 

    	Research Agreement	Page 4 of 26 	 

     

    

 

		3.2	The parties will not be liable to perform the Project until they have those approvals specified in Schedule
2 (if any) for the Project and upon such approvals being obtained any affected Project timeframes will be extended accordingly. The parties
agree to cooperate and use all reasonable endeavours to obtain all necessary approvals in a timely manner.

 

		3.3	With Quoin’s prior approval, QUT may engage a subcontractor to perform work in relation to the Project,
provided that such subcontract shall include terms no less onerous than provided in this Agreement. QUT also vouches that the subcontractor
is fully qualified to perform such work. Without limiting the foregoing, QUT shall be solely responsible for its performance under this
Agreement and for any work sub-contracted to any third party (it being agreed that, notwithstanding anything contained in this Agreement
to the contrary, any breach by subcontractors or its Specified Personnel or their respective affiliates (including Bluebox) of this Agreement
shall be deemed a breach by QUT of this Agreement). All work sub-contracted to third party shall only be on work-for-hire basis and such
third parties shall have no right to any Project Material or IPRs used or developed in connection with work performed.

 

		4	DAY TO DAY MANAGEMENT; REPORTS

 

		4.1	The parties will keep each other informed of the progress of the Project in writing and by telephone and
will, from time to time:

 

		(a)	discuss the progress of the Project;

 

		(b)	facilitate the review and approval of publications in respect of the Project;

 

		(c)	identify potential registrable or commercially valuable IPRs arising from the Project and promptly notify
the parties in relation to any protectable or commercially valuable IPR; and

 

		(d)	discuss in good faith any issues that may arise during the course of this Agreement in relation to the
Project.

 

		(e)	Without limiting the generality of above, QUT shall cause its Specified Personnel to issue a detailed
written final report to Quoin summarizing the results of the Project, including Project Material, if any, within thirty (30) days after
completing the Project. In addition to the above final report, within thirty (30) days after each milestone payment set forth on Schedule
3 is made, QUT shall cause its Specified Personnel to provide to Quoin interim written reports giving status of the Project, and the results
and activities carried out prior to such milestone payment date. During the Term, QUT shall (and shall cause the QUT Specified Personnel
and subcontractors) to (x) permit Quoin and its representatives to have at least one in person meeting with QUT and the Specified
Personnel at QUT’s facility on an annual basis,, and (y) make available the Specified Personnel and applicable employees of
QUT as requested by Quoin.

 

		4.2	Despite the discussions between the parties under this Agreement, no variations shall be made to the Agreement
except in writing signed by the parties.

 

		4.3	For the purpose of this clause, Bluebox may engage in discussions as the agent of QUT, subject to the
terms and conditions set forth herein.

 

    	Research Agreement	Page 5 of 26 	 

     

    

 

		5	CONTRIBUTIONS

 

Cash Contributions

 

		5.1	QUT will issue the Collaborator with GST compliant invoices for their respective cash Contributions in
the amounts and at the times specified in Schedule 3.

 

		5.2	The Collaborator must pay the amounts invoiced in accordance with clause 5.1 by the due date specified
in the invoice (which will be no less than 45 days from the date of invoice).

 

		5.3	QUT will use the cash Contributions for the Project in accordance with the Budget.

 

		5.4	If the Parties agree that QUT shall use any cash Contributions to purchase equipment for the Project,
then that equipment will be owned by QUT, unless the parties have expressly agreed otherwise in writing.

 

In-Kind Contributions

 

		5.5	The parties will make their in-kind Contributions to the Project to the value and for the time contemplated
in Schedule 3.

 

		6	SPECIFIED PERSONNEL.

 

		6.1	Each party acknowledges that any of its Personnel named as Specified Personnel in this Agreement, must
be directed to work on the Project for the times specified in this Agreement and if at any time they are unable to do so, then that party
must:

 

		(a)	immediately notify the other party of the unavailability; and

 

		(b)	promptly replace that Specified Personnel with personnel who have:

 

		(1)	the time commitment, qualifications and competency to carry out the Project; and

 

		(2)	similar expertise and ability to those of the Specified Personnel they are to replace; and

 

		(c)	notify the other party of the name and qualifications of the replacement personnel upon finding a replacement.

 

		7	BACKGROUND MATERIAL

 

		7.1	Nothing in this Agreement alters or transfers ownership in any Background Material, including any Intellectual
Property Rights subsisting in Background Material.

 

		7.2	Each party grants to each other party a non-exclusive, royalty-free licence to use its Background Material:

 

		(a)	during the Term - for the purpose of carrying out the Project in accordance with this Agreement; and

 

		(b)	during and after the Term - in conjunction with Project Material for purposes other than Commercialisation
which are solely for research or academic purposes and only to the extent the Background Material is necessary for the other party to
exercise the full benefit of the rights in the Project Material granted to it under this Agreement,

 

BUT subject to the confidentiality obligations
herein and any restrictions or obligations made known to the other party prior to that Background Material being used in the Project.

 

    	Research Agreement	Page 6 of 26 	 

     

    

 

		7.3	For the avoidance of doubt, no rights are given to a party to sublicense any rights in Background Material
to a third party.

 

		8	PROJECT MATERIAL

 

		8.1	All Intellectual Property Rights in Project Material made by QUT shall vest in QUT. All Intellectual Property
Rights in Project Material made by Quoin shall vest in Quoin. All Intellectual Property Rights in Project Material made jointly by QUT
and Quoin shall jointly vest in QUT and Quoin.

 

		8.2	The parties each grant a non-exclusive, royalty-free licence in the Project Materials that they own to
the other party for the performance of the Project and for internal - non-commercial research and teaching purposes.

 

		8.3	No party may unlawfully use the Project Material in which another party owns enforceable Intellectual
Property Rights except as expressly specified in this Agreement or in compliance with the written consent of that other party.

 

		9	OPTION TO COMMERCIALISE

 

		9.1	QUT grants the Collaborator an exclusive Option to enter into an agreement, which will be negotiated by
the parties hereto in good faith, for the exclusive Commercialisation of the Project Materials in accordance with clause 9.3.

 

		9.2	Subject to full payment of cash Contributions under this Agreement, the Collaborator may at any time during
the Option Period exercise the Option by giving QUT written notice of the exercise of the Option.

 

		9.3	The agreement described in clause 9.1 shall be subject to the following:

 

		(a)	On exercise of the Option in accordance with clause 9.2, the parties must commence negotiation of the terms of the agreement within
thirty (30) business days of receiving the notice to exercise the Option;

 

		(b)	The terms of the agreement described in clause 9.1 must incorporate the Key Terms and be negotiated on an arms-length commercial basis;

 

		(c)	If the parties have failed to agree on the Key Terms of the agreement described in clause 9.1 within six (6) months of the exercise
of the Option, then QUT may Commercialise the Project Materials as QUT sees fit;

 

		(d)	If the Project Materials are commercialised by someone other than the Collaborator under clause 9.3(c), the Collaborator will be entitled
to a 10% royalty of all revenue received by QUT from the Commercialisation of the Project Materials up to a maximum amount equal to the
total payments made by the Collaborator to QUT under this Agreement; and,

 

		(e)	The parties must act reasonably in negotiating the agreement described in clause 9.1.

 

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		9.4	The Key Terms which must be included in an agreement described in clause 9.1 are as follows:

 

		(a)	The scope of Intellectual Property Rights that will be the subject of agreement under the Option shall be the Project Materials owned
or controlled by QUT and created in the course of the Project in a modified bikunin protein that has been modulated to inhibit the KLK5
and KLK7 proteases which may be relevant for a therapeutic for Netherton Syndrome and includes:

 

		(1)	Composition of matter of the modified protein, pharmaceutical compositions containing it, methods of using them, and processes for
making them;

 

		(2)	Data relating to activity of the modified protein;

 

		(3)	Know how in relation to the preparation and use of the modified protein;

 

		(4)	Rights to apply for and register patents in relation to the modified protein, pharmaceutical compositions containing it, methods of
using them, and processes for making them worldwide, including in Australia and in all other countries.

 

		(b)	The agreement may include either an assignment or exclusive license of the Intellectual Property Rights which are the subject of the
agreement;

 

		(c)	There must be a royalty rate in the range of 3% to 5%.

 

		(d)	There may be milestone payments which shall, at a minimum, relate to the costs of any intellectual property protection or other steps
taken by QUT in relation to the Intellectual Property Rights the subject of the agreement;

 

		(e)	The field of commercialisation shall be use as a therapeutic for any indication.

 

		(f)	The territory for the arrangement will be world-wide.

 

		(g)	The arrangement must be exclusive within the field of commercialisation and within the territory.

 

		9.5	If either:

 

		(a)	the Collaborator does not exercise the Option within sixty (60) Business Days of the expiry of the Option
Period; or,

 

		(b)	the parties do not execute an agreement as described in clause 9.1 within six (6) months of the exercise
of the Option,

 

then the Option will automatically terminate
and be exhausted and this clause shall no longer have force or effect.

 

		9.6	The Collaborator acknowledges that QUT manages the protection and Commercialisation of QUT generated Intellectual
Property Rights via Bluebox, and that negotiations in relation to the protection and Commercialisation of Project Material and Background
Material may therefore be between the Collaborator and Bluebox.

 

		10	INTELLECTUAL PROPERTY RIGHTS PROTECTION

 

		10.1	During the Term, QUT (including by its agent, Bluebox) shall prosecute and maintain all current Intellectual
Property Rights in the Project Materials solely made by QUT or jointly made by QUT and Quoin (“Project Inventions”)
and may make additional applications as it considers commercially and legally responsible.

 

    	Research Agreement	Page 8 of 26 	 

     

    

 

		10.2	During the Term, QUT (including by its agent, Bluebox) shall be responsible for the costs of all filling,
maintenance and prosecution of Intellectual Property Rights in the Project Inventions. QUT (including by its agent, Bluebox) shall keep
the Collaborator informed of the status of any patent applications made in relation to the Project Materials from time to time and on
request.

 

		10.3	In the event that QUT does not elect to file, maintain or prosecute Intellectual Property Rights in the
Project Materials, the Collaborator will have the right, at its sole discretion and sole expense, to take action to file, maintain or
prosecute Intellectual Property Rights in the Project Inventions. Any Intellectual Property Rights filed, maintained or prosecuted by
the Collaborator under this sub-clause must be in the name of QUT if solely made by QUT, or in the name of QUT and Quoin if jointly made
by QUT and Quoin, until an agreement under clause 9.1 of this Agreement is executed.

 

		10.4	In the event the Collaborator exercises the Option and the parties enter into an agreement described in
clause 9.1, the Collaborator shall be responsible for all future Intellectual Property Rights patent applications, maintenance and prosecution
dealt with in that agreement. QUT (including by its agent, Bluebox) agree to provide the Collaborator with all reasonable assistance for
the Collaborators filings, maintenance and prosecutions under this clause, subject to the Collaborator paying any out of pocket expenses
incurred by QUT (or its agent, Bluebox) in providing such assistance.

 

		11	CONFIDENTIALITY

 

		11.1	Each party must:

 

		(a)	maintain the secrecy of, and prevent unauthorised access to, each other's Confidential Information;

 

		(b)	not use another's Confidential Information except:

 

		(1)	as required for the performance of, or to exercise its rights under or arising from, this Agreement; or

 

		(2)	as required to obtain professional advice in relation to any matter connected with this Agreement including
advice on the patenting of Project Material;

 

		(c)	not disclose another's Confidential Information to any person other than to:

 

		(1)	its Personnel who need to know it in order to perform the Project, or in order to exercise the party’s
rights in Material under this Agreement or the Option Agreement; and

 

		(2)	its professional advisors with a need to know it in order to provide professional advice in relation to
any matter connected with this Agreement including advice on the patenting of Project Material; and

 

		(d)	ensure that its Personnel and advisors to whom the other’s Confidential Information is disclosed,
are made aware of the obligations of confidentiality under this Agreement, and are legally obliged to ensure that the Confidential Information
is only used, disclosed and dealt with in accordance with those obligations.

 

		11.2	Each party may disclose another party’s Confidential Information if required by law but, unless
prohibited by law or legal process, it must inform that other party first (with as much prior notice as possible) and use all reasonable
endeavours to limit the terms of that disclosure as reasonably requested by that other party.

 

    	Research Agreement	Page 9 of 26 	 

     

    

 

		12	PRIVACY

 

		12.1	Each party must, in dealing with any Personal Information for the purposes of the Project:

 

		(a)	comply with all laws applicable to that party (including, without limitation, privacy and data protection
laws) which regulate the collection, storage, use and disclosure of Personal Information;

 

		(b)	promptly notify the other party of any complaint or investigation under, or relating to, any breach of
those laws in relation to that information processed for purposes of the Project; and

 

		(c)	reasonably cooperate with the other party in resolving any such complaint or investigation.

 

		12.2	If a Collaborator is considered a ‘contracted service provider’ of QUT under the Information
Privacy Act 2009 (Qld) in performing its obligations under this Agreement, it will comply with Parts 1 and 3 of that Act as if it
were an agency under that Act.

 

		13	PUBLICATIONS

 

		13.1	The parties will ensure that all publications and presentations in respect of the Project comply with
the authorship and publication requirements of the Australian Code for the Responsible Conduct of Research.

 

		13.2	In addition to clause 13.1, each party (“Publishing Party”) must before publishing
or submitting for publication, or presenting, anything in relation to the Project that discloses another party’s Confidential Information,
or uses another party’s Background Material (“Publication”), provide a copy of the proposed Publication to that
other party (“Reviewing Party”) for review and response in accordance with clause 13.3.

 

		13.3	Within fourteen (14) days of the Publishing Party providing the Publication to the Reviewing Party for
review, the Reviewing Party must notify the Publishing Party in writing that it:

 

		(a)	gives unconditional consent; or

 

		(b)	gives consent subject to certain amendments being made which are in the reasonable opinion of the Reviewing
Party necessary to ensure its Confidential Information is not disclosed and its privacy obligations are met;

 

		(c)	require the Publication to be delayed for up to 6 months so as to not prejudice its ability to protect
and Commercialise its Confidential Information or other Background Material, including to exercise rights under the Option Agreement.

 

		13.4	If the Publishing Party does not receive a response in accordance with clause 13.3 within twenty eight
(28) days of the Reviewing Party receiving the Publication for review, the Reviewing Party will be deemed to have given unconditional
consent.

 

		13.5	The Publishing Party may proceed with the Publication:

 

		(a)	upon unconditional consent being given by all Reviewing Parties; or

 

		(b)	if amendments are required under clause (b), upon all reasonable amendments being made; and

 

		(c)	if a period of delay is required under clause 13.3(c), upon the expiry of that period.

 

		14	USE OF NAMES

 

		14.1	Neither party may in connection with this Agreement, without the written consent of the other party, use
the other party’s name or logo, or any of the other party’s Personnel’s names to promote the party’s business,
services products or activities, or in a manner that could lead a person to reasonably believe that the other party endorses the party’s
business, services, products or activities.

 

    	Research Agreement	Page 10 of 26 	 

     

    

 

		15	WARRANTIES AND LIABILITY

 

		15.1	To the extent permitted by law, all terms that may be otherwise implied by statute or otherwise, relating
to the subject matter of this Agreement, are excluded.

 

		15.2	The parties acknowledge that the research undertaken as part of the Project is highly speculative in nature
and may not produce any outputs or discoveries that are fit for a particular purpose or have any Commercialisation potential.

 

		15.3	Despite any other clause of this Agreement, the parties are not liable for any indirect, consequential
or incidental damages or any loss of profits, loss of revenue, loss of goodwill, loss of data, damage to reputation and loss of opportunities
under or in connection with this Agreement whether under the law of contract, tort (including negligence), equity or otherwise, unless
they arise from a breach of confidentiality under this Agreement or an infringement of a party’s rights in Project Material or Background
Material.

 

		15.4	Each party's liability under or in relation to this Agreement is reduced to the extent that any damages,
liability, loss or costs arises from or is attributable to, any breach of contract by, or any unlawful or negligent act or omission of,
the other party or the other party’s Personnel.

 

		15.5	If any applicable legislation prohibits the exclusion of liability by a party in the manner contemplated
by this clause, then:

 

		(a)	the exclusion does not apply to that liability; and

 

		(b)	that party’s liability is only limited or excluded in the manner permitted under that legislation
(if any).

 

		16	TERMINATION AND WITHDRAWAL

 

Termination by agreement

 

		16.1	This Agreement may be terminated at any time by written agreement of the parties.

 

QUT Right to terminate the Agreement

 

		16.2	QUT may upon by written notice to the Collaborator terminate this Agreement if the Collaborator:

 

		(a)	breaches any warranty, term or condition of this Agreement which is not capable or remedy;

 

		(b)	breaches a warranty, term or condition of this Agreement and fails to remedy the breach within thirty
(30) days after receiving notice requiring it to do so, including with respect to any obligation to pay money or find replacement Specified
Personnel; or

 

		(c)	has entered into any form of insolvency, liquidation or external administration, whether voluntary or
involuntary, formal or otherwise.

 

Consequences of termination or expiry of Agreement

 

		16.3	Upon expiry or termination of this Agreement each party will, subject to that party’s statutory
record keeping obligations, return (or in the case of intangible copies that cannot be physically returned, destroy) all Background Material
and Project Material of another party in its possession or control which it no longer has a licence to use.

 

    	Research Agreement	Page 11 of 26 	 

     

    

 

		16.4	Upon expiration or termination of this Agreement QUT shall repay any Contributions which it has received
from the Collaborator which have not been expended or allocated for expenditure prior to the date of termination.

 

		16.5	If this Agreement is terminated under clause 16.2 then the Option will automatically end.

 

		16.6	For the avoidance of doubt, expiration or termination of this Agreement:

 

		(a)	does not affect the operation of any other separate agreement entered by the parties unless it expressly
specifies to the contrary in that separate agreement; and

 

		(b)	will be without prejudice to the rights, liabilities or obligations of any party accrued prior to the
date of termination including any right to payment or compensation or to obtain damages for breach of this Agreement.

 

		16.7	Clauses 7.2(b), 9, 10, 13, 15 and 16.3 to 16.7 continue to apply after the termination or expiry of this
Agreement, except as expressly specified in this Agreement.

 

		17	GST

 

		17.1	If a supply under this Agreement is subject to GST and GST has not been accounted for in determining the
consideration payable for the supply, the supplying party may recover from the receiving party an amount on account of GST. That amount
is:

 

		(a)	equal to the value of the supply calculated in accordance with GST law multiplied by the prevailing GST
rate; and

 

		(b)	payable at the same time as the recipient is required to pay for the related supply.

 

		18	NOTICES

 

		18.1	Any notice or other formal communication under this Agreement must be:

 

		(a)	in writing and signed by an authorised representative;

 

		(b)	marked to the attention of the person specified in Schedule 1;

 

		(c)	be delivered to the recipient by hand, pre-paid post, fax or email at the address or number shown in Schedule
1 (or as last notified in writing); and

 

		(d)	will be effective once received, and will be deemed to have been received, if

 

		(1)	if by pre-paid post, on the seventh day after posting;

 

		(2)	if electronically transmitted at the time of successful transmission

 

PROVIDED that where a notice is received
after 5pm on a business day or on a non-business day of the recipient, it will be deemed to be received on the recipient’s next
business day.

 

		19	DISPUTES

 

		19.1	Any dispute relating to this Agreement (Dispute) must, prior to a party initiating litigation (other
than for equitable or interlocutory relief), be dealt with as follows:

 

		(a)	the affected party will notify the other parties with details of the Dispute (Dispute Notice) and,
within seven (7) days of receiving the Dispute Notice, the parties will negotiate and attempt to resolve the Dispute;

 

    	Research Agreement	Page 12 of 26 	 

     

    

 

		(b)	if unresolved within thirty (30) days of the Dispute Notice, a nominated member of senior management from
each party with authority to fully resolve the dispute (Nominated Persons) will negotiate and attempt to resolve the dispute;

 

		(c)	if unresolved within 30 days of the commencement of the negotiations between the Nominated Persons, any
of the affected parties may avail themselves of any legal remedies available in law or equity.

 

		19.2	Nothing in this clause prevents a party from applying to a court for urgent interlocutory relief.

 

		20	GENERAL PROVISIONS

 

Relationship of parties

 

		20.1	Each party enters into this Agreement as independent contractors. Nothing in this Agreement shall:

 

		(a)	in any way deem an employee of one party to be treated as an employee or the responsibility of another
party; or

 

		(b)	create any relationship between the parties amounting to a partnership, agency, trust or joint venture.

 

Force Majeure

 

		20.2	A party is not liable for any breach of its obligations under this Agreement (other than for any payment
obligation) to the extent that the breach resulted from a Force Majeure Event provided that it:

 

		(a)	promptly notifies the other parties (with appropriate details); and

 

		(b)	takes all reasonable steps to work around or reduce the effects of the Force Majeure Event.

 

If a Force Majeure Event continues for
more than sixty (60) days, the party which is not subject to the Force Majeure Event may terminate this Agreement.

 

Cooperation; No Conflicts; Compliance with
Laws

 

		20.3	Each party agrees to execute such agreements, deeds and documents and do or cause to be executed or done
all such acts and things as may be reasonably necessary to give effect to this Agreement, including assisting to facilitate any application
to register IPRs, confining any rights granted in relation to the IPRs, ensuring where reasonably possible that the Project can continue
where a party is withdrawing from the Project and assisting with any GST requirements.

 

		20.4	QUT agrees to provide all information to Quoin necessary to comply with any disclosure requirements mandated
by any competent governmental authority (including, if applicable, the US Food and Drug Administration), including any information required
to be disclosed in connection with any financial relationships.

 

		20.5	QUT confirms that there is no conflict of interest between parties that would inhibit or affect QUT’s
performance under this Agreement. QUT will promptly inform Quoin if any conflict of interest arises during the performance of this Agreement.

 

		20.6	QUT shall not employ, contract, with or retain any person directly or indirectly to perform services under
this Agreement if such a person is debarred by a competent government authority (including, if applicable, the US Food and Drug Administration).

 

    	Research Agreement	Page 13 of 26 	 

     

    

 

No Assignment

 

		20.7	A party must not assign or transfer, any of its rights or obligations in this Agreement to any person
without the consent of the other parties, which consent must not be unreasonably withheld or delayed.

 

Entire Agreement

 

		20.8	This Agreement is the entire agreement between the parties in relation to the management and conduct of
the Project. All previous negotiations, understandings, representations or warranties concerning the subject matter of this document are
superseded by this document.

 

Variations

 

		20.9	Any amendment or alterations to this Agreement must be agreed in writing and signed by the parties.

 

Severability

 

		20.10	If any one or more of the provisions of this Agreement are deemed to be invalid, illegal or unenforceable,
then:

 

		(a)	such provisions will be read down or severed and all remaining provisions of this Agreement will remain
in full force and effect; and

 

		(b)	such provisions will not invalidate or render unenforceable the remaining provisions of this Agreement.

 

Governing Law and Jurisdiction

 

		20.11	This Agreement shall be governed by and is to be construed in accordance with the laws applicable in Queensland.

 

		20.12	The parties agree that the courts of Queensland shall have jurisdiction to hear any action in respect
of, or arising out of this Agreement.

 

Legal Costs

 

		20.13	Each party shall be responsible for its own legal and other costs incurred in relation to the preparation
of this Agreement.

 

Execution

 

		20.14	This Agreement may be executed by facsimile or electronic mail and/or in counterparts which will be taken
together to constitute one document. The parties agree that execution of this Agreement will occur when each party holds a copy of the
Agreement (which may be a facsimile or in electronic format) signed by both parties or signed in counterparts.

 

    	Research Agreement	Page 14 of 26 	 

     

    

 

Signing
Page

 

EXECUTED as an agreement
on the latest of the dates set out below

 

	 	 

 

Executed by Queensland University
of Technology

by its
duly authorised officer:

 

	/s/ Michael McArdle	 
	Signature of Authorised Representative	 

 

	Michael McArdle	 
	Name and Position of Authorised Representative (print)	 
	 	 
	11/1/2021	 
	Date:	 

 

Executed by Quoin Pharmaceuticals, Inc.
    by its 

duly authorised representative:

 

	/s/ Michael Myers	 
	Signature of Authorised Representative	 
	 	 
	Michael Myers	 
	Name and Position of Authorised Representative (print)	 
	 	 
	10/30/21	 
	Date:	 

 

    	Research Agreement	Page 15 of 26 	 

     

    

 

 

Schedule
1: Notice Details

 

		2	Queensland University of Technology (QUT)

 

	 
	
    Contact for Notices:

     

    Address for notices:

     

    By Courier

     

     

     

    By Post

     

     

     

    By Fax

     

    By Email

     
	
    Michael McArdle, Executive Director, Office of Research
    Services

     

    Queensland University of Technology,

     

    Office of Research Services

    Level 4, 88 Musk Avenue

    Kelvin Grove, Queensland 4059

     

    Office of Research Services

    GPO Box 2434, Brisbane Q 4001

     

    07 3138 1304

     

     

 

		3	The Collaborator

 

	
    Quoin Pharmaceuticals Ltd

     

    Contact for Notices:

     

    Address for notices:

     

    By Courier

     

    By Post

     

     

    By Email
	
    Michael Myers

     

     

    CEO

    Quoin Pharmaceuticals

    42127 Pleasant Forest Court

    Ashburn VA 20148

     

     

     

     

    mmyers@quoinpharma.com

	 	 

 

    	Research Agreement	Page 16 of 26 	 

     

    

 

Schedule
2      PROJECT DETAILS

 

PROJECT TITLE

 

KLK5/7 Inhibitors to Treat Netherton Syndrome

 

PROJECT EXPIRATION DATE: 18
months from the appointment of the Post Doc.

 

PROJECT SUMMARY

 

This research collaboration project between Quoin Pharmaceuticals Ltd
and QUT focuses on the rational design of bikunin-based inhibitors that suppress the activity of kallikrein-related peptidase 5 (KLK5)
and kallikrein-related peptidase 7 (KLK7) which may be relevant for a therapeutic for Netherton Syndrome.

 

PROJECT ROLES AND RESPONSIBILITIES
(with milestone dates/outputs)

 

Please refer to the Bikunin Development Plan attached at Schedule 5.

 

SPECIFIED PERSONNEL

 

Professor Jonathan M. Harris and a Post Doc (to be appointed subject
to the approval of Quoin) will carry out the research in the research plan.

 

    	Research Agreement	Page 17 of 26 	 

     

    

 

Schedule 3     contributions

 

CONTRIBUTIONS:

 

	Costs summary including on costs	(AUD, ex GST)

 

	Post Doc worker for 1.5 years 	$196,161 	Will carry out experimental work exclusively in connection with the Project
	Prof Jonathan Harris	$16,135	Will supervise project
	Laboratory Consumables	$16,856	Ongoing
	Netherton Mouse model 	$102,495	Second year
	TOTAL	
    $331,647

     
	 

 

CASH CONTRIBUTION INVOICE SCHEDULE:

 

	Invoice Date	Amount (ex GST)
	§ Execution of this Agreement

                                                                                 

                                                                                § Appointment Post Doc

                                                                                 

                                                                                § 6 months from Commencement Date

                                                                                 

                                                                                § 12 months from Commencement Date

                                                                                 

                                                                                § 18 months from Commencement Date

                                                                                 

                                                                                § Delivery of Final Report
	
    $33,000

     

    $33,330

     

    $66,330

     

    $66,330

     

    $66,330

     

    $66,330

     

	Total	$331,650

 

Financial Contact Details:

 

QUT Financial Contact

 

Name:  ORS Project Management Unit

 

Telephone number:  +61 7 3138 7400

 

Email:  orspu@qut.edu.au

 

Quoin Financial Contact

 

Michael Myers

CEO

Quoin Pharmaceuticals

42127 Pleasant Forest Court

Ashburn VA 20148

mmyers@quoinpharma.com

 

    	Research Agreement	Page 18 of 26LICENSE AND DISTRIBUTION AGREEMENT

 

This License and Distribution
Agreement (this “Agreement”), dated as of November 5, 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 AFT Pharmaceuticals, a company incorporated under the laws of New Zealand located at Level 1, 129 Hurstmere Road, Takapuna, Auckland,
0622, New Zealand (“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,
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.

 

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-bearing 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 24 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. Notwithstanding the foregoing, in the event that an Additional Indication is competitive with a product of Licensee at the time
regulatory approval is sought with respect to such Additional Indication, Quion shall have the option, at its sole discretion, to (i) waive
the noncompetition covenants set forth in this Section 2.3.2 with respect to such Additional Indication, in which case the noncompetition
covenants contained herein shall not apply to such Additional Indication, or (ii) terminate this Agreement in accordance with Section 11.2.2
hereof, in which case the noncompetition covenants contained herein shall not apply to such Additional Indication.

 

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, at Licensee’s cost and expense,
the Regulatory Approvals in Licensee’s name, including setting the overall regulatory strategy therefor and conducting communications
with Governmental Authorities. 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. For the avoidance of doubt, Licensee shall be responsible for all commercially
reasonable cost and expense associated with any further development which may be required in connection with securing the Regulatory Approvals,
including any supplemental clinical trials. 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 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 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 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 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 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 accordance with Section 11.2.2 hereof.

 

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 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 accordance with Section 11.2.2 hereof. Such termination will not apply to the Initial Indication or to any subsequent
additional Indications, Licensee obtains approval for in the Territory.

 

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 the Territory within 6 months following receipt of approval of the Regulatory Approvals for the Initial
Indication from the Governmental Authorities in the Territory. 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.

 

    3 

     

    

 

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 Net 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,
within three years following Launch of the Product in the Territory, Licensee fails to use Commercially Reasonable Efforts to maximize
Net Sales in the Territory (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 a commercially reasonable agreement with respect to the aforementioned plan
in form satisfactory to Quoin in its commercially reasonable discretion, the Licensee shall have nine (9) months to demonstrate Commercially
Reasonable Efforts otherwise 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 from Quoin. If the Parties have not entered into a Supply Agreement in form satisfactory to Quoin prior to regulatory
approval in the Territory, Quoin may terminate this Agreement upon written notice to Licensee.

 

Section 5.  Financial
Provisions

 

5.1            Royalty.

 

5.1.1.            Royalty.
Commencing on the Launch of the Product in the Territory, Licensee shall pay to Quoin twenty
percent (20%) of Net Sales (the “Royalty”). For the avoidance of doubt, Quoin shall not be required to make any payments
to Licensee to the extent Net Sales for any period is negative.

 

5.1.2.            Payment
of Royalty; Audits; Records. Within forty five (45) days after the expiration of each calendar
quarter during the Term (including the first and last quarters during such period that may be of lesser duration), Licensee shall deliver
to Quoin a statement for such quarter showing (i) the calculation of Net Sales for the Product sold by Licensee during such quarter,
on an indication by indication basis, and (ii) the Royalty for the Product on such sales. Licensee shall pay any Royalty due to Quoin
along with the delivery to Quoin of the statement showing such calculation. In order to verify quarterly reports, Quoin or its authorized
representative shall be entitled, during normal business hours and upon reasonable prior written notice to Licensee, to have access to
the books and records of Licensee directly related to the calculation of the Royalty. If the inspection reveals that the Royalty has been
incorrectly calculated, then any underpayment shall be paid by Licensee and any overpayment shall be paid by Quoin within fifteen (15)
calendar days of such determination. The costs of any such inspection shall be borne by Quoin except when the inspection reveals an underpayment
to Quoin of five percent (5%) or more, in which case Licensee shall reimburse Quoin for the actual out-of-pocket costs of the inspection.

 

    4 

     

    

 

5.1.3.            Manner
and Place of Payment. All payments owed by Licensee under this Agreement shall be made in United
States Dollars ($US) by wire transfer in immediately available funds to a bank and account in the United States designated in writing
by Quoin.

 

5.1.4.            Late
Payments. If Quoin does not receive payment of any sum due to it on or before the due date therefor,
simple interest shall thereafter accrue on the sum due to such Party from the due date until the date of payment at a per-annum rate of
prime plus two (2) percentage points.

 

5.2            Taxes.
The amounts paid by Licensee to Quoin hereunder shall be paid without any reduction or setoff
and without reduction for any withholding taxes, unless such withholding taxes are required by law. Quoin shall be solely responsible
for paying any and all of its own taxes.

 

5.3           Currency.
All dollar amounts stated in this Agreement are stated in United States’ currency, and all payments required under this Agreement
shall be paid in United States’ currency.

 

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.

 

    5 

     

    

 

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.

 

Section 7.  Regulatory

 

7.1            Throughout
the Term, Licensee shall maintain at its sole 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 material correspondence with any Governmental Authority regarding the Product or Regulatory Approvals in the
Territory within three (3) business days 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 to the extent they may impact the Quoin’s rights or
obligations under this Agreement.

 

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.

 

    6 

     

    

 

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;

 

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.

 

    7 

     

    

 

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;

 

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

 

    8 

     

    

 

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 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.

 

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 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.

 

    9 

     

    

 

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 and 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) the Indemnitor shall not consent to any Judgment, or agree to any settlement that does not
unconditionally release the Indemnitee from liability, without the Indemnitee’s prior written consent, which consent shall not be
unreasonably withheld or delayed; and (iii) 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. The Indemnitee may not consent to the settlement or entry of judgment
in any such action, suit, claim or demand without the Indemnitor’s prior written consent, which consent shall not be unreasonably
withheld or delayed. The Indemnitee shall fully cooperate with all reasonable requests from the Indemnitor in the Defense as the Indemnitor
may request and at its expense. 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.

 

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, SPECIAL,
CONSEQUENTIAL, REMOTE OR SPECULATIVE DAMAGES (INCLUDING LOST PROFITS), WHETHER OR NOT SUCH DAMAGES WERE PROBABLE AND/OR 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.

 

    10 

     

    

 

Section 11.  Term
and Termination

 

11.1         Term.
This Agreement shall commence on the Effective Date and, unless earlier terminated in accordance with this Section 11, shall continue
in effect for ten (10) years,1 provided that such initial
ten (10) year term may be extended for two (2) additional ten (10) year terms if, within six (6) months prior to
the expiration of the then-current term, Licensee notifies Quoin in writing of its intent to renew this Agreement and the Supply Agreement

 

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 2.3.2, 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 ninety (90) 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.

 

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

 

 

1 Note to Draft: We have deleted, as the reference
to a Transition Period was included inadvertently

 

    11 

     

    

 

(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 1, 2.3, 9, 10, and 12 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, demands or other legal or formal communications required or permitted to be sent hereunder shall be delivered personally
or by facsimile, sent by overnight or international courier 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:

 

	If to Licensee:	 
	 	 
	 	 
	
    Attention:

     

     

     

    With a copy to:
	
    Hartley Atkinson M.Pharm, PhD

    Level 1, 129 Hurstmere Rd, Takapuna, New

    Zealand
    0622

     

     

    Mintz, Levin, Cohen. Ferris, Glovsky, and Popeo
    P.C.

    One Financial Center, Boston MA 02111

    Phone: +1 617 348 1834

    Email: TMTuchin@mintz.com

    Attention: Tali Tuchin

 

	If to Quoin:	 
	 	 
	 	 
	Attention:	Michael Myers, Ph.D
	 	42127 Pleasant Forest Court,
	 	Ashburn, VA 20148
	With a copy to: 	 

 

    12 

     

    

 

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 or to a successor of the assigning Party by reason of merger, sale of
all or substantially all of its assets or the portion of its business which relates to this Agreement, or any similar transaction. Any
permitted assignee or successor-in-interest will expressly assume all obligations of its assignor under this Agreement. No assignment
will relieve either Party of its responsibility for the performance of any obligation.

 

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.

 

12.8         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. THE UNITED NATION CONVENTION ON CONTRACTS FOR
THE INTERNATIONAL SALE OF GOODS SHALL NOT APPLY TO THIS AGREEMENT.

 

    13 

     

    

 

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 one (1) arbitrator agreed to by the Parties. The arbitrator 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 arbitrator may be entered or enforced in any court having jurisdiction thereof.
The decision of the arbitrator shall be final and binding on the Parties and shall be accompanied by a written opinion of the arbitrator
explaining the arbitrator’s rationale for his or her decision. The Parties shall equally share in paying all fees and costs of the
arbitrator and the ICC, but each Party shall bear its own attorney and expert fees, except that the arbitrator may award the prevailing
Party its reasonable attorneys’ fees and legal costs. The Parties agree that, notwithstanding any provision of Applicable Law, they
will not request, and the arbitrator shall have no authority to award, punitive or exemplary damages against either Party. Pending the
selection of the arbitrator or pending the arbitrator’s 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 Quoin.

 

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.

 

[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/ Hartley Atkinson	 
	Name:	Hartley Atkinson	 
	Title:	CEO	 

 

[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.

 

“Net Sales” means the
gross amounts invoiced for sales of the Product by or on behalf of Licensee and its affiliates or permitted transferees, licensees and
sublicensees (each a “Selling Party”) to Third Parties in the Territory, less the following deductions (the “Sales
Deductions”), to the extent accrued or actually taken in accordance with GAAP (as generally and consistently applied by Selling
Party):

 

(a)         normal
and customary trade, quantity and prompt pay discounts accrued or actually allowed and taken with respect to sales of the Product such
discounts not to exceed [__]; [To be determined by the parties]

 

(b)         refunds,
credits, allowances and other similar adjustments given or made for rejection or return of previously sold Product or for retroactive
price reductions and billing errors;

 

(c)         rebates,
coupons, and chargeback payments actually granted to managed health care organizations, pharmacy benefit managers (or equivalents thereof),
national, state/provincial, local, and other governments, their agencies and reimbursers, or to trade customers;

 

(d)         costs
of freight, insurance, and other transportation charges directly related to the distribution of such Product; and

 

(e)         Taxes,
duties or other governmental charges (including any Tax such as a value added or similar Tax, but excluding any Taxes based on income)
levied on or measured by the billing amount for the Product, as adjusted for rebates and refunds.

 

In no event will any particular
amount identified above be deducted more than once in calculating Net Sales. Sales of Product between Licensee and its affiliates or any
other Selling Party for resale are excluded from the computation of Net Sales, but the subsequent resale of such Product to a Third Party
is included within the computation of Net Sales. For purposes of determining Net Sales, the Product shall be deemed sold when invoiced
and a “sale” shall not include transfers or dispositions of such Product for pre-clinical or non-commercial clinical purposes,
as samples or under named patient use, compassionate use, patient assistance, or test marketing programs or other similar programs or
studies.

 

    18 

     

    

 

“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.

 

    19 

     

    

 

“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.

 

“Territory” means Australia and New Zealand.

 

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

 

    20

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