Document:

EX-10.10

 EXHIBIT 10.10 

“[***] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission
pursuant to Rule 406 under the Securities Act of 1933, as amended” 
 DISTRIBUTION AND SUPPLY AGREEMENT 

BETWEEN 
 KLOX
TECHNOLOGIES INC. 
 AND 

SANDOZ CANADA INC. 

NOVEMBER 15, 2013 

  
 1 

 TABLE OF CONTENTS 

 

							
	ARTICLE 1 DEFINITIONS	  	 	5	  
	ARTICLE 2 APPOINTMENT	  	 	12	  
	 2.1
	  	Appointment and License	  	 	12	  
	 2.2
	  	Sandoz Undertakings	  	 	12	  
	 2.3
	  	KLOX Undertakings	  	 	13	  
	 2.4
	  	Reserved Rights	  	 	13	  
	 2.5
	  	Sublicense	  	 	14	  
	ARTICLE 3 REGULATORY MATTERS	  	 	14	  
	 3.1
	  	Authorizations	  	 	14	  
	 3.2
	  	Changes to Registration Files	  	 	14	  
	 3.3
	  	Communications With Authorities	  	 	14	  
	ARTICLE 4 PRODUCT PROMOTION	  	 	15	  
	 4.1
	  	Launch and Promotion	  	 	15	  
	 4.2
	  	Annual Marketing Plan	  	 	15	  
	 4.3
	  	Marketing	  	 	16	  
	 4.4
	  	Standards	  	 	17	  
	 4.5
	  	Trade Name and Packaging	  	 	17	  
	 4.6
	  	Materials	  	 	17	  
	 4.7
	  	Training	  	 	18	  
	 4.8
	  	Sufficient Inventory	  	 	18	  
	 4.9
	  	Reputation	  	 	18	  
	 4.10
	  	        Studies	  	 	18	  
	ARTICLE 5 MANUFACTURE AND SUPPLY	  	 	18	  
	 5.1
	  	Manufacturer	  	 	18	  
	 5.2
	  	Assistance	  	 	19	  
	 5.3
	  	Supply	  	 	19	  
	 5.4
	  	Shortage	  	 	19	  
	 5.5
	  	Forecasts	  	 	19	  
	 5.6
	  	Firm Purchase Orders	  	 	19	  
	 5.7
	  	Investment	  	 	20	  
	 5.8
	  	Delivery	  	 	20	  
	 5.9
	  	Risk of Loss	  	 	20	  
	 5.10
	  	        No Liability	  	 	20	  
	 5.11
	  	        Shelf Life	  	 	20	  
	 5.12
	  	        Penalties	  	 	20	  
	ARTICLE 6 FINANCIAL MATTERS	  	 	20	  
	 6.1
	  	Signing Fee	  	 	20	  
	 6.2
	  	Milestone Payments	  	 	21	  
	 6.3
	  	Invoice Amount	  	 	21	  

  
 2 

							
	 6.4
	  	Invoicing	  	 	21	  
	 6.5
	  	Payment Terms	  	 	21	  
	 6.6
	  	Profit Share and Reports	  	 	21	  
	 6.7
	  	Relationship	  	 	22	  
	 6.8
	  	Interest	  	 	22	  
	 6.9
	  	Set-off	  	 	22	  
	 6.10
	  	        Audit:	  	 	22	  
	 6.11
	  	        Taxes	  	 	23	  
	 ARTICLE 7 QUALITY ASSURANCE
	  	 	23	  
	 7.1
	  	Quality Assurance	  	 	23	  
	 7.2
	  	Storage and Distribution	  	 	23	  
	 7.3
	  	Post-Delivery Inspection	  	 	24	  
	 7.4
	  	Compliance	  	 	25	  
	 7.5
	  	Quality Audit	  	 	25	  
	 7.6
	  	Finished Packaging and Labelling	  	 	25	  
	 ARTICLE 8 COMPLAINTS AND PRODUCT DEFECTS
	  	 	25	  
	 8.1
	  	Medical Affairs	  	 	25	  
	 8.2
	  	Product Complaints	  	 	26	  
	 8.3
	  	Recalls	  	 	26	  
	 8.4
	  	Adverse Events	  	 	26	  
	 ARTICLE 9 CONFIDENTIALITY
	  	 	26	  
	 9.1
	  	Confidentiality	  	 	26	  
	 9.2
	  	Exclusion	  	 	27	  
	 9.3
	  	Disclosures Required under Applicable Laws	  	 	27	  
	 9.4
	  	No License	  	 	27	  
	 9.5
	  	Survival	  	 	27	  
	 ARTICLE 10 INTELLECTUAL PROPERTY
	  	 	27	  
	 10.1
	  	        No License	  	 	27	  
	 10.2
	  	        Patents	  	 	28	  
	 10.3
	  	        Contest	  	 	28	  
	 10.4
	  	        No Impairment	  	 	28	  
	 10.5
	  	        Licensed Trademark	  	 	29	  
	 10.6
	  	        Notice	  	 	29	  
	 10.7
	  	        Protection	  	 	29	  
	 10.8
	  	        Actions outside the Indications and Territory	  	 	29	  
	 ARTICLE 11 INSURANCE
	  	 	30	  
	 11.1
	  	        Insurance	  	 	30	  
	 11.2
	  	        Failure to Comply	  	 	30	  
	 ARTICLE 12 REPRESENTATIONS AND WARRANTIES
	  	 	30	  
	 12.1
	  	        Sandoz	  	 	30	  
	 12.2
	  	        KLOX	  	 	31	  

  
 3 

							
	 12.3
	  	Acknowledgements	  	 	32	  
	 ARTICLE 13 TERM AND TERMINATION
	  	 	32	  
	 13.1
	  	Term	  	 	32	  
	 13.2
	  	Termination with Cause	  	 	32	  
	 13.3
	  	Early Termination by KLOX	  	 	33	  
	 13.4
	  	Early Termination by Sandoz	  	 	34	  
	 13.5
	  	Consequences of expiration or termination	  	 	34	  
	 ARTICLE 14 INDEMNIFICATION
	  	 	35	  
	 14.1
	  	Indemnification	  	 	35	  
	 14.2
	  	Additional Indemnification by Sandoz	  	 	35	  
	 14.3
	  	Additional Indemnification by KLOX	  	 	35	  
	 14.4
	  	Limitation on Damages	  	 	35	  
	 14.5
	  	Notification and Procedure	  	 	36	  
	 14.6
	  	Indemnified Party’s Cooperation as to Proceedings	  	 	38	  
	 ARTICLE 15 MISCELLANEOUS
	  	 	38	  
	 15.1
	  	Notices	  	 	38	  
	 15.2
	  	Assignment	  	 	39	  
	 15.3
	  	Currency	  	 	39	  
	 15.4
	  	Expenses	  	 	39	  
	 15.5
	  	Headings	  	 	39	  
	 15.6
	  	Entire Agreement	  	 	39	  
	 15.7
	  	Severability	  	 	39	  
	 15.8
	  	Binding Effect	  	 	39	  
	 15.9
	  	Relationship	  	 	40	  
	 15.10
	  	Novartis Code	  	 	40	  
	 15.11
	  	ISO Certification	  	 	40	  
	 15.12
	  	Governing Law and Jurisdiction	  	 	40	  
	 15.13
	  	Amendments, Waivers and Consents	  	 	40	  
	 15.14
	  	Further Assurances	  	 	41	  
	 15.15
	  	Counterparts	  	 	41	  
	 15.16
	  	Language	  	 	41	  
	 SCHEDULE A NOVARTIS SUPPLIER CODE
	  	 	43	  
	 SCHEDULE B LICENSED TRADEMARKS
	  	 	44	  
	 SCHEDULE C PATENT APPLICATIONS
	  	 	45	  
	 SCHEDULE D FORM OF QUARTERLY STATEMENT
	  	 	46	  
	 SCHEDULE E EXCLUDED ENTITIES
	  	 	48	  
	 SCHEDULE F FINANCIAL MODEL

SCHEDULE G PERMITTED ACTIVITIES
	  	 	49	  
	  	 	50	  

  
 4 

 DISTRIBUTION AND SUPPLY AGREEMENT 

This Distribution and Supply Agreement is entered into at the City of Montreal, Province of Quebec, on this
15th day of November, 2013 (the “Effective Date”) by and between: 

KLOX Technologies Inc. a Canadian corporation with an office at 275 Armand-Frappier, Montreal, Quebec, Canada H7V 4A7 

(“KLOX”) 

- and - 
 Sandoz Canada
Inc. a Canadian corporation with an office at 145 Jules-Leger, Boucherville, Quebec, Canada J4B 7K8 
 (“Sandoz”) 

WITNESSETH: 

WHEREAS KLOX is a developer of biophotonic products, including, without limitation, the Products (as hereinafter defined); and 

WHEREAS Sandoz desires to distribute the Products in the Territory (as hereinafter defined) and KLOX desires to appoint Sandoz as its
exclusive distributor of the Products, the whole subject to and in accordance with the terms and conditions set forth herein; 
 NOW,
THEREFORE, in consideration of the mutual covenants, promises and agreements herein contained made and to be performed by the Parties, it is mutually agreed as follows: 

ARTICLE 1 
 DEFINITIONS

 For the purposes hereof and in addition to any other terms defined herein: 

“Affiliate” means with respect to a specified Person, any Person that directly or indirectly controls, is
controlled by, or is under common control with, the specified Person. As used in this definition, the term “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the
management and policies of a Person, whether through ownership of voting securities, by contract or otherwise. 

“Agreement”, “this Agreement”, “herein”,
“hereby”, “hereunder”, “hereof”, “hereto”, and similar expressions mean this Distribution and Supply Agreement together with (a) any and all Schedules referred to in
this Agreement and (b) any and all amendments thereto in writing signed by the Parties. 
 “Annual Marketing
Plan” means a written annual plan for the Commercialization of the Products during each calendar year of the Term. “Authorities” means, in any jurisdiction, all applicable governmental or regulatory
bodies, agencies, officials and other authorities in such jurisdiction. 

  
 5 

			
	“[***] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 406 under the Securities Act of 1933, as
amended”

  

 “Authorizations” means, in any jurisdiction, all consents,
approvals, permits, licences and other authorizations required to be obtained from all Authorities in such jurisdiction. 
 “Business
Day” means any day, other than a Saturday, Sunday or statutory or civic holiday in the Provinces of Québec or Ontario. 

“Commercialization”, and its derivations, means any and all activities, other than research and development and Manufacturing
activities, directed or relating to the offering for sale or sale of a product, including activities relating to marketing, promotion, distributing, selling and offering to sell such product. For clarity, Commercialization activities shall also
include planning and implementation, booking of sales and pricing and reimbursement activities, subject as applicable to the terms and conditions of this Agreement. 

“Confidential Information” means (a) all data and information of a confidential and proprietary nature disclosed (whether
in writing or orally) by or on behalf of the Disclosing Party to the Receiving Party and relating to the business of the Disclosing Party or its Affiliates in any way whatsoever, including, but not limited to, information and data relating to
business operations, methods of operating, customer information and affairs, processes, personnel and including financial, production, scientific and technical data and information, formulae, strategies, studies, reports, evaluations, submissions
to, correspondence with, notices to and from and approvals, certifications and authorizations by any Authority and (b) in the case of each Party, furthermore includes for the avoidance of doubt, all of the Intellectual Property of such Party.

 “Defaulting Party” has the meaning set forth in Section 13.2(a). 

“Disclosing Party” has the meaning set forth in Section 9.1. 

“Distribution Expenses” means all reasonable, documented [***] and expenses incurred and paid, or accrued as payable, to Third
Parties by Sandoz with respect to the warehousing and delivery of any Product to any customer of Sandoz, calculated in accordance with GAAP, provided, however, that “Distribution Expenses” shall not include any costs or expenses
directly or indirectly [***], any [***] in respect of Sandoz’s [***]. 
 “Field” means the use of the Products by a
qualified professional in the offices of physicians or licensed clinics. 
 “Financial Model” means the financial model of
anticipated Net Profits attached hereto as Schedule F, as amended from time to time upon the mutual written consent of both Parties. 

  
 6 

			
	“[***] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 406 under the Securities Act of 1933, as
amended”

  

 “GAAP” means international financial reporting standards generally accepted
in Canada including those recommended or approved by the Canadian Institute of Chartered Accountants at the relevant time, including, to the extent applicable, international financial reporting standards; 

“GDP” means Good Distribution Practices as defined in the current WHO (World Health Organization) GDP Guideline, referenced in
the Canadian Guideline 0069 describing the current GDP Guidelines in Canada, as amended from time to time. 
 “GMP” means
the current good manufacturing practices and standards contemplated by the Food and Drugs Act (Canada), as interpreted from time to time by Health Canada. 

“Health Canada” means Health Canada or any replacement or successor authority with jurisdiction over the sale of therapeutic
products or medical devices in Canada. 
 “Inbound Delivery Costs” means all reasonable, documented [***] and expenses
incurred and paid, or accrued as payable, to Third Parties by Sandoz with respect to delivery [***] of the Products from KLOX to Sandoz or Sandoz’ warehouse facilities, as applicable, provided, however, that “Inbound
Delivery Costs” shall not include any costs or expenses directly or indirectly [***], any [***] in respect of Sandoz’s [***]. 

“Indemnified Party” has the meaning set forth in Section 14.5(a). 

“Indemnifying Party” has the meaning set forth in Section 14.5(a). 

“Indications” means the use of (a) the LumiCleanseTM Product for acne, (b) the LumiBelTM Product for skin
rejuvenation and (c) the multi-LED LumidermTM light Product for acne and skin rejuvenation. 
 “Intellectual
Property” means (a) all inventions, patents, patent applications, industrial design applications and registrations, trademarks, trademark applications and registrations, trade names, copyrights, copyright applications and
registrations, processes, know how, clinical and other data, technology, formulae, trade secrets, proprietary information, licenses, sublicenses and all other rights and intellectual property owned, held or used by a Party and/or its Affiliates, and
(b) in the case of KLOX, includes, without limitation, all such rights and intellectual property of KLOX and its Affiliates in and to the Products and the Licensed IP. 

“Launch” means the date of first commercial sale of a Product by Sandoz under Sandoz’ cross-referenced Marketing
Authorization for any Indication in the Field in the Territory. 
 “Laws” means all (a) constitutions, treaties, laws,
statutes, codes, ordinances, orders, decrees, rules, regulations and municipal by-laws, whether domestic, foreign or international, (b) judgments, orders, writs, injunctions, decisions, rulings, decrees and words of any governmental or
regulatory body or authority, and (c) all policies, voluntary restraints, practices and guidelines of any governmental or regulatory body or authority, in each case binding on or affecting the Party referred to in the context in which such word
is used. 

  
 7 

			
	“[***] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 406 under the Securities Act of 1933, as
amended”

  

 “Licensed IP” means the Patent Rights, the Licensed Trademark and all other
Intellectual Property of KLOX and its Affiliates relating solely to the Commercialization of the Products in the Territory. 

“Licensed Trademark” means the trademarks as set out in Schedule B, or such other trademark as KLOX may from time to
time designate in writing. 
 “Losses” has the meaning set forth in Section 14.1. 

“Manufacture”, “Manufacturing” and “Manufactured” and their derivations mean all operations
to receive all raw materials, components, packaging materials and other items necessary for, and all operations relating to, the production, packaging, labelling, handling, warehousing, quality control testing, customs clearance and shipping of the
Products. 
 “Manufacturer” has the meaning set forth in Section 5.1. 

“Manufacturing Costs” means the price, [***], payable by KLOX to Manufacture or have Manufactured each Product. Sandoz will be
charged the [***] price [***] by KLOX, [***] in respect of KLOX’s [***] added by KLOX. 
 “Marketing
Authorization” means such Authorizations of Health Canada as may be necessary to market and sell the respective Products in the Territory. 

“Marketing Materials” has the meaning set forth in Section 4.6. 

“Net Profits” means in respect of each Quarter (a) the amount by which the Net Sales during such Quarter exceed (b): to
the extent not deducted in the calculation of Net Sales, the following direct costs for such period without any duplication whatsoever, (i) Manufacturing Costs, (ii) Replacement Product Costs (iii) Inbound Delivery Costs,
(iv) Distribution Expenses, (v) Write-offs, (vi) Sales and Marketing Costs, the whole calculated in accordance with GAAP except that no overhead or indirect costs of any Party and, for the avoidance of doubt, none of the payments to
be made pursuant to Section 6.1 or 6.2, shall be factored into, or taken into account in, any of the calculations. 

“Net Sales” means the gross selling price of each Product in the Territory invoiced by Sandoz or its Affiliates to
Third Parties, less the following deductions and offsets only, to the extent not already included in the Manufacturing Costs, Replacement Product Costs, Inbound Delivery Costs, Distribution Expenses, Write-offs or Sales and Marketing Costs and to
the extent legally permitted: (a) credits, refunds, or allowances granted upon returns, rejections or recalls, retroactive price reductions, billing corrections or other allowances; (b) freight, shipping and insurance costs if included in
the gross invoiced selling price; (c) [***]; 

  
 8 

			
	“[***] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 406 under the Securities Act of 1933, as
amended”

  

 (d) sales, excise and value-added taxes, tariffs, customs duties, other taxes and surcharges
and other charges by an Authority to the extent included in such selling price; (e) [***]; (f) [***] in connection with the sales of such Products, [***] together with any and [***] relating thereto; and (g) distribution fees and
sales commissions paid to non-Affiliates of Sandoz; all of such deductions and offsets to be calculated in accordance with standard allocation procedures, allowance methodologies and accounting requirements consistently applied, which methods shall
be in accordance with GAAP, consistently applied. 
 “Notifications” means all filings, notifications and submissions
required by Law to market and sell any of the Products in the Territory. 
 “Patents” means any patent that is issued in the
Territory from, or any patent application in the Territory that claims priority to, any of the patent applications filed in the Territory as set forth in Schedule C, including all divisional applications, reissues, and patent applications
that are nationalized in the Territory. “Patents” excludes any patent or patent application claim that is directed to subject matter different from the Products or the Indications. 

“Patent Rights” means all of the right, title and interest of KLOX and/or its Affiliates in and to the Patents. 

“Parties” means KLOX and Sandoz, and “Party” means either one of them. 

“Person” means an individual, partnership, limited partnership, joint venture, trustee, trust, corporation, company, unlimited
liability company, unincorporated organization or other entity or a government, state or agency or political subdivision thereof, and pronouns have a similarly extended meaning. 

“Prime Rate” means the rate of interest, expressed as an annual rate in effect from time to time, as charged by the Royal Bank
of Canada from time to time as its prime rate with respect to commercial loans made in Canadian dollars in Canada to its Canadian commercial borrowers. 

“Products” means (a) KLOX’s multi-LED LumidermTM light, (b) the current formulations of
(i) KLOX’s product known as Lumigel CleanseTM or LumiCleanseTM and any successor name thereto (currently including the gels, headband, spatula, goggles and glasses) and (ii) KLOX’s product known as Fast & Mild
Beauty GelTM or LumiBelTM and any successor name thereto (currently including the gels, headband, spatula, goggles and glasses), and (c) all Product Improvements. 

“Product Complaint” means any report of an actual or potential failure of any Product to meet the standards set forth in
regulatory filings, the Specifications or in such other agreements as may be entered into between the Parties. 

  
 9 

			
	“[***] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 406 under the Securities Act of 1933, as
amended”

  

 “Product Improvements” means all improvement to any Product contemplated by
clauses (a) and (b) in the definition of Products for any of the Indications in the Field. 
 “Profit Share” means
forty percent (40%) of the Net Profits. 
 “Quarter” means each calendar quarter during the Term, provided, however,
that the first and last Quarters may be shorter than three (3) months; the first Quarter shall commence on the Effective Date and terminate on the last day of March, June, September or December thereafter, whichever is the first to occur, and
the last Quarter shall commence on the first day of January, April, July or October, whichever is the last to occur, prior to the end of the Term and terminate on the last day of the Term. 

“Quarterly Statements” means a report signed and certified as correct by a duly authorized senior financial officer of Sandoz
containing with respect to each Quarter (a) all sales figures of Products, specifying the average gross sales price per Product, the total Net Sales and the number of each Product sold, (b) inventory status of Products, (c) a detailed
breakdown of the amount of the total Net Profits, Net Sales, Manufacturing Costs, Inbound Delivery Costs, Distribution Expenses, and Sales and Marketing Costs for such Quarter, (d) confirmation of any prior period adjustments required in
accordance with GAAP, (e) a computation of the Profit Share, if any, to be paid by Sandoz to KLOX, and (f) such other information required to confirm the correctness and accuracy of any payment made or other obligation in respect of the
Profit Share, the whole in the form of the Quarterly Statement attached hereto as Schedule D. 
 “Receiving Party”
has the meaning set forth in Section 9.1. 
 “Replacement Product Costs” has the meaning set forth in Section 8.2.

 “Sales and Marketing Costs” means all reasonable, documented [***] direct costs and expenses incurred and paid, or
accrued as payable, to Third Parties by Sandoz with respect to the advertising, marketing and promotion of sales of the Products in the Territory, including, to the extent directly allocable to the advertising, marketing and promotion of sale of the
Products in the Territory, costs for advertisements, advertising agency fees, marketing, or promotional meetings scheduled primarily for the Products (including the launch meeting), purchase of data such as IMS, consulting fees (i.e. pricing and
reimbursement and marketing), development and production of sales force training materials, website costs, appropriate use of multimedia and social networks, conventions and seminars (i.e. exhibit stand, registration and materials), [***], market
research, sponsorships, [***], acquisition and shipping costs of training and sales and marketing materials, together with the product costs of field aids and sales premiums and other similar promotional items and direct and incremental costs
related to the Products associated with the reimbursement assistance program. KLOX will be able to provide input on the Sales and Marketing Costs as part of KLOX’s participation in the agreement of the Annual Marketing Plan, as provided for in
Section 4.2. “Sales and Marketing Costs” shall also include the actual direct costs in respect of the direct sales force promoting the 

  
 10 

			
	“[***] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 406 under the Securities Act of 1933, as
amended”

  

 
Products and marketing personnel assigned to the Products [***]. In the event, such sales force/marketing personnel are promoting the Products and any other product/products, Sandoz shall use
reasonable efforts to apportion the time of such sales force/marketing personnel in proportion to the amount of time spent promoting the Products and the amount of time spent promoting other product/products. As it is difficult to apportion time
spent accurately, as a general rule (i) if there are two products being promoted the costs will be apportioned [***]; and (ii) if there are three products the costs will be apportioned [***]. 

“Schedules” means the schedules to this Agreement, unless otherwise specified and the following are the Schedules attached to
and incorporated in this Agreement by reference and deemed to be part hereof: 
  

					
	 	 	 Schedule
	  	 Description

		 	 Schedule A
	  	Novartis Supplier Code
		 	 Schedule B
	  	Licensed Trademarks
		 	 Schedule C
	  	Patent Applications
		 	 Schedule D
	  	Form of Quarterly Statement
		 	 Schedule E
	  	Excluded Entities
		 	 Schedule F
	  	Financial Model
		 	 Schedule G
	  	Permitted Activities

 “Specifications” means the KLOX specifications necessary to Manufacture and supply the
Product, including all information, data, formulae, quality control/quality assurance procedures, assays and reports. 

“Term” has the meaning set forth in Section 13.1. 

“Terminating Party” has the meaning set forth in Section 13.2. 

“Territory” means Canada. 

“Third Party” means any Person other than KLOX and Sandoz and their respective Affiliates. 

“With Lamp Product” means any biophotonic product in the Territory for any Indication outside the Field that requires the
multi-LED LumidermTM light or any other lamp similar thereto to be used or applied and that competes with any Product for any Indication in the Territory. 

  
 11 

 “Without Lamp Product” means any new non-generic product in the Territory that
does not require the multi-LED LumidermTM light or any other lamp similar thereto to be used or applied and that competes with any Product for any Indication in the Territory. 

“Write-offs” means the Manufacturing Costs paid by Sandoz to KLOX of any Products that are no longer saleable due solely to
expiry of the Products. 
 ARTICLE 2 

APPOINTMENT 
 2.1
Appointment and License. Subject to and conditional upon all of terms and conditions herein, KLOX hereby: 
  

	 	(a)	appoints Sandoz and Sandoz hereby accepts appointment as KLOX’s exclusive distributor of the Products in the Territory for the Indications in the Field; and 

 

	 	(b)	grants Sandoz an exclusive license in the Territory to use the Licensed IP solely in association with the Commercialization of the Products in the Territory for the Indications in the Field. 

2.2 Sandoz Undertakings. It is expressly understood and agreed that, 

 

	 	(a)	Sandoz shall not directly or indirectly (i) use any Licensed IP except as explicitly authorized pursuant to this Agreement, (ii) sell, market, distribute or export any Product outside of the Territory or
knowingly sell, market or distribute any Product to any Person for resale, marketing, distribution or exportation outside the Territory, (iii) manufacture, market, promote, sell, distribute or otherwise make available any biophotonic product in
the Territory for any Indication that competes with any Product for any Indication in the Field in the Territory, (iv) during the period commencing on the date of execution of this Agreement and ending on the fifth anniversary of the Effective
Date, manufacture, market, promote, sell, distribute or otherwise make available any With Lamp Product, or (v) during the period commencing on the date of execution of this Agreement and ending on the third anniversary of the Effective Date,
manufacture, market, promote, sell, distribute or otherwise make available any Without Lamp Product; 

  

	 	(b)	Sandoz shall refer to KLOX all inquiries received by it in connection with the sale, marketing and/or distribution of any Product outside the Territory; 

 

	 	(c)	Sandoz shall not (i) sell, transfer or assign any of the rights and authority granted Sandoz pursuant to this Agreement to any Person or (ii) except as set forth in Section 2.5, subcontract or otherwise
enter into any other arrangement whatsoever with any Person with respect to any of the rights and authority granted to Sandoz pursuant to this Agreement; 

  

	 	(d)	Sandoz shall not modify any Product or any packaging thereof, labels thereto or inserts therein in any manner whatsoever; and 

  
 12 

			
	“[***] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 406 under the Securities Act of 1933, as
amended”

  

	 	(e)	Sandoz shall not directly or indirectly Commercialize any Product outside the Field or for any indication other than the Indications. 

2.3 KLOX Undertakings. It is expressly understood and agreed that, 

 

	 	(a)	KLOX shall not directly or indirectly (i) manufacture, market, promote, sell, distribute or otherwise make available any biophotonic product in the Territory for any Indication that competes with any Product for
any Indication in the Field in the Territory, (ii) during the period commencing on the date of execution of this Agreement and ending on the fifth anniversary of the Effective Date, manufacture, market, promote, sell, distribute or otherwise
make available any With Lamp Product, or (iii) during the period commencing on the date of execution of this Agreement and ending on the third anniversary of the Effective Date, manufacture, market, promote, sell, distribute or otherwise make
available any Without Lamp Product. 

  

	 	(b)	In the event that after the fifth anniversary of the Effective Date KLOX wishes to manufacture, market, promote, sell, distribute or otherwise make available any With Lamp Product, KLOX shall provide Sandoz the right of
first negotiation for the exclusive marketing and sale of such product in the Territory (the “ROFN”), subject to the following: 

  

	 	(i)	The ROFN may be exercised by notice in writing to KLOX within [***] of receipt by Sandoz of written notice from KLOX advising Sandoz of such decision to market and sell such product in the Territory; 

 

	 	(ii)	In the event Sandoz duly and timely exercises such ROFN, then Sandoz and KLOX will enter into good faith negotiations to determine the terms and conditions of, and sign a distribution and supply agreement governing, the
exclusive marketing and sale of such product for the Indication specified by KLOX outside the Field in the Territory; and 

  

	 	(iii)	If Sandoz and KLOX do not sign such a distribution and supply agreement prior to the [***] following Sandoz’s notice of exercise of the ROFN then KLOX shall have the right to enter into negotiations with third
parties with respect to the marketing and sale of such product for such Indication outside the Field in the Territory under terms and conditions which are not more favorable than those proposed to Sandoz during the ROFN process. 

 

	 	(c)	In the event that after the third anniversary of the Effective Date KLOX wishes to manufacture, market, sell, distribute or otherwise make available any KLOX Without Lamp Product, then such product shall be subject to
the ROFN set forth in paragraphs 2.3(b)(i), (ii) and (iii), the provisions of which shall apply mutatis mutandis. 

2.4 Reserved Rights. Except for those rights expressly granted to Sandoz hereunder, all rights, express or implicit, with respect to
the Products belong exclusively to KLOX. Without limiting the generality of the foregoing, nothing herein shall limit or restrict KLOX’s right to 

  
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directly or indirectly (a) conduct research and development with respect to products similar to any of the Products, (b) enhance and improve the Products, (c) manufacture, license
or Commercialize any Product for any indication other than the Indications throughout the Territory, (d) subject to Sections 2.3(a) and (b), manufacture, license or Commercialize any Product in the Territory for any Indication,
(e) Manufacture and supply or have Manufactured and supplied the Products hereunder, or (f) manufacture, license or Commercialize the Products or any improvements thereto for any indication including the Indications outside the Territory.
In addition, until the Launch, KLOX may distribute Product in the limited manner described in Schedule G hereto. 
 2.5
Sublicense. Sandoz may subcontract its obligations hereunder and sublicense the rights granted pursuant to Section 2.1 above to a Third Party other than the entities listed in Schedule E hereto provided that
(a) each such subcontract is approved in writing by KLOX, [***] (b) no such subcontract shall relieve Sandoz of its obligations hereunder, (c) each such subcontract shall automatically terminate upon the termination of this Agreement
and (d) Sandoz shall be responsible for ensuring that each such subcontractor possesses the necessary skill and experience to enable it to perform the obligations subcontracted and does in fact perform such obligations in accordance with the
terms and conditions of this Agreement. 
 ARTICLE 3 

REGULATORY MATTERS 
 3.1
Authorizations. KLOX shall, at its expense, file all Notifications with all Authorities and obtain all Authorizations necessary to, market and sell the Products in the Territory for the Indications and to Manufacture or have Manufactured the
Products for the Territory and identify Sandoz as the distributor of the Products in the Territory. Each Party shall be solely responsible for applying for and obtaining any and all other Authorizations necessary for each such Party to undertake and
perform its activities as contemplated by this Agreement. The Parties shall cooperate with each other in good faith in connection with the efforts to obtain such Authorizations, including promptly providing all information required by any Authority
to obtain any Authorization. 
 3.2 Changes to Registration Files. So long as Sandoz is authorized by KLOX pursuant to this Agreement
to market the Products in the Territory, KLOX shall provide to Sandoz written notification of any changes made to KLOX’s registration files for the Products that Sandoz markets, promotes, distributes and sells hereunder. 

3.3 Communications With Authorities. KLOX shall be responsible for interfacing, corresponding and meeting with all Authorities in
connection with the Notifications and Authorizations for the Products and will keep Sandoz informed of such discussions and shall provide to Sandoz a copy of all filings or correspondence with, and all notices, responses and correspondence from, any
Authorities in connection with the Patents. 

  
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 ARTICLE 4 

PRODUCT PROMOTION 
 4.1
Launch and Promotion. Within [***] from the date of receipt by Sandoz of the Marketing Authorization (by way of cross-reference from the Marketing Authorization of KLOX) for the Products for the Indications and provided Sandoz has received
quantities of Products sufficient for Launch of the Products in the Territory for the Indications, Sandoz shall actively Commercialize all of the Products for the Indications in the Field in the Territory in compliance with all applicable Laws and
industry standards provided, however, that there may be up to a [***] day delay between the launch of the marketing of the Products for the acne and skin rejuvenation Indications. 

4.2 Annual Marketing Plan. Sandoz shall be responsible for preparing the Annual Marketing Plan for the Products for each calendar year
during the Term consistent with the terms and conditions of this Agreement and the Financial Model, subject to the following: 
  

	 	(a)	The Annual Marketing Plan shall include, to the extent reasonably available, the following, taking into account the lifecycle evolution of the Products: 

 

	 	(i)	a description of the market; 

  

	 	(ii)	a description of the promotional activities, strategies and promotional spend for the Products, including: 

  

	 	(A)	a breakdown of the number of primary, secondary and tertiary calls planned for the promotion of the Products; 

  

	 	(B)	details of all Sales and Marketing Costs and the anticipated deductions contemplated by clauses (c), (e), (f) and (g) of the definition of Net Sales provided, however, that all such deductions must be
consistent within [***]% of the most recent forecast and model provided by Sandoz and approved by KLOX based on the Financial Model, unless otherwise agreed by the Parties; 

 

	 	(iii)	a description of pricing and positioning of the Products, subject, however, to the following: 

  

	 	(A)	the Parties will implement and enforce a pricing and marketing policy in order to maintain the Products at the described market position; and 

 

	 	(B)	subject to the minimum pricing set forth in the initial Annual Marketing Plan contemplated in Section 4.2(c), the prices and pricing strategies relating to the Products, including price increases and decreases and
the timing thereof, shall be set forth in the Annual Marketing Plan; 

  
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	 	(iv)	forecasted sales or such other matters related to the Products as may reasonably be requested. 

  

	 	(b)	Sandoz shall deliver each Annual Marketing Plan to KLOX for review and approval by KLOX no later than [***] of each calendar year for the following calendar year, as per the Annual Marketing Plan approval process
described below. Sandoz and KLOX may at any time and from time to time by mutual written agreement only, amend the Annual Marketing Plan to take into account the outcome of any marketing efforts, the actual sales of the Products and any other
relevant factors. 

  

	 	(c)	Notwithstanding the foregoing, the initial Annual Marketing Plan will be provided to KLOX within [***] of the Effective Date and will cover the period from the Effective Date through December 31, 2014.

  

	 	(d)	KLOX shall have [***] from its receipt of each subsequent Annual Marketing Plan within which to suggest revisions to the Annual Marketing Plan. Sandoz shall take into account all reasonable remarks that KLOX will make
in respect of each such Annual Marketing Plan. In the event KLOX does not respond within such [***] period, then KLOX shall be deemed to have approved such Annual Marketing Plan. In the event KLOX timely delivers any objections to any Annual
Marketing Plan, then Sandoz and KLOX shall work collaboratively in good faith in order to resolve any differences and to mutually approve in writing an Annual Marketing Plan no later than [***] of each calendar year. In the event the Parties do not
approve the Annual Marketing Plan by such time, then Sandoz may proceed with its version of the Annual Marketing Plan provided it is consistent with the Financial Model and subject, however, to KLOX’s rights, if any, to terminate this Agreement
pursuant to Section 13.3(b). 

 4.3 Marketing. Save and except as otherwise set out herein, Sandoz shall have full
responsibility for all aspects of the Commercialization of the Products by it in the Territory provided, however, that Sandoz shall ensure that the Commercialization is conducted in order to exceed the expectations set out in the Financial Model.
Sandoz agrees to use commercially reasonable efforts to promote the sale of the Products in the Territory and to this end shall conduct adequate sales activities in the Territory in order to expand the sales of the Product therein. Sandoz shall keep
KLOX advised of general market and economic developments that may affect the sale of the Products in the Territory. In addition, Sandoz agrees that at least [***] during each [***] it shall participate in a strategy/performance review meeting, at
the request of KLOX (at a place and time to be mutually agreed upon by the Parties) during which it shall, without limitation, provide KLOX with applicable updates on the matters set forth in the Annual Marketing Plan and this Section 4.3,
review and discuss the various aspects of the advertising and sales promotion activities performed and to be performed by Sandoz with respect to the Products, review Sandoz’s current and future performance under the Agreement and update KLOX on
the sales performance of the Products and on developments within the branded and generic marketplace. 

  
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 4.4 Standards. Sandoz shall use commercially reasonable efforts to promote the sale of the
Products through the use of appropriate methods common to the trade in the promotion of medical devices. All promotional representations by Sandoz shall be consistent with the applicable Marketing Authorizations. Sandoz shall not make any medical
representation or representation with respect to any Product contrary to the approved Product monograph or which violates any applicable Laws. Sandoz shall be fully responsible for ensuring at its cost that promotional material regarding the
Products used by Sandoz in the Territory complies with all applicable Laws. 
 4.5 Trade Name and Packaging. Sandoz shall at all
times identify the Products by the applicable Licensed Trademark. In addition, Sandoz shall only use the Licensed Trademarks and Sandoz’ own trademarks in the Commercialization of the Products provided, however, that except as set forth in
Section 7.6(b), Sandoz will not place its name or any of its trademarks on any Product or Commercialize in any way which may lead any reasonable person to conclude that Sandoz is the owner of the Products or Licensed Trademarks. KLOX
acknowledges that any trademarks of Sandoz are and shall remain the exclusive property of Sandoz and/or its Affiliates. Under no circumstances is Sandoz authorized to use any trademark or trade name of KLOX other than the Licensed Trademarks in
identifying or Commercializing the Products. 
 4.6 Materials. Throughout the Term, Sandoz shall: 

 

	 	(a)	develop and make available to KLOX on a regular basis and upon any reasonable request by KLOX, all relevant market research in its possession in relation to each Product, marketing plans, tag lines, logos, designs, art
work, website design, advertising and other promotional materials used to Commercialize the Products in the Territory for the Indications (the “Marketing Materials”) provided, however, that (i) Sandoz shall not use any
such Marketing Materials in connection with any Product unless they are approved in writing by KLOX. Sandoz hereby grants KLOX and its Affiliates a non-exclusive royalty-free license to use and modify such Marketing Materials in connection with the
Products in or outside the Territory; provided however (i) that any trademarks of Sandoz or references to Sandoz are removed from such Marketing Materials, and (ii) such Marketing Materials are used by KLOX at its own risk;

  

	 	(b)	ensure that all Marketing Materials prominently refer to KLOX and use the Licensed Trademarks in a manner approved by KLOX in writing; 

 

	 	(c)	develop and produce all training materials for its sales staff and all potential users of the Products and in connection therewith, KLOX shall make available to Sandoz such base training and educational materials as it
may from time to time have in its possession; and 

  

	 	(d)	develop, maintain, review and host a branded website (if agreed by the Parties) for the marketing of the Products and in connection therewith, KLOX shall make available to Sandoz such base marketing materials as it may
from time to time have in its possession. 

  
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	 	(e)	Include patent number labelling on some or all of the Marketing Materials at the request of KLOX. 

4.7 Training. Sandoz shall ensure that all personnel involved in the Commercialization of the Products are fully trained and
knowledgeable in order to maximize sales and ensure compliance with this Agreement and that all purchasers and users of the Products are duly trained in the proper and safe use of the Products and in connection therewith, KLOX shall make available
to Sandoz such base training and educational materials as it may from time to time have in its possession. 
 4.8 Sufficient
Inventory. Sandoz shall ensure that sufficient stocks of the Products are carried by it to satisfy the demand for the Products in the Territory. 

4.9 Reputation. Sandoz shall not do anything in connection with the Commercialization of the Products which would adversely affect the
reputation and goodwill of KLOX and its Affiliates or adversely affect the high quality standards and reputation of the Products including, without limitation, the misbranding, adulteration of any Product and/or engaging in false or deceptive
advertising practices, or non-compliance with any Authority. 
 4.10 Studies. Sandoz shall not conduct any studies including, without
limitation, pre-clinical, or clinical studies, nor engage in any laboratory or research and development work with respect to any Product, other than post-marketing studies that are agreed by both Parties and that are limited to post-marketing
surveillance of the Products. Sandoz shall promptly inform KLOX of all data and results generated from any such post-marketing studies performed by or on behalf of Sandoz pursuant to this Section 4.10. 

ARTICLE 5 
 MANUFACTURE
AND SUPPLY 
 5.1 Manufacturer. Subject to the terms and conditions of this Agreement, KLOX will use commercially reasonable
efforts to forthwith identify and select a Third Party to Manufacture the Products to be sold by Sandoz pursuant to this Agreement as a subcontractor of KLOX (the “Manufacturer”). KLOX’s selection of the Manufacturer shall be
subject to Sandoz’s approval, [***]. Sandoz shall not Manufacture, purchase or otherwise procure or deal in any Product from any source other than KLOX and shall not communicate with the Manufacturer with respect to the Products without the
prior written consent of KLOX. KLOX shall from time to time have the right to replace the Manufacturer by itself or by any other Third Party, subject to the acceptance of Sandoz of the new Manufacturer, under terms and conditions acceptable to the
Parties, acting reasonably. Any such change of Manufacturer shall not be implemented prior to the receipt of any required Authorizations by the Authorities in the Territory. KLOX shall be fully responsible and liable for the fulfillment of
Manufacturer’s obligations under this Agreement, including without limitation to Manufacture and deliver Product in accordance with the terms and conditions of this Agreement. 

  
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 5.2 Assistance. KLOX shall grant to the Manufacturer a non-exclusive license to use
KLOX’s Intellectual Property relating to the Products to the extent necessary to Manufacture the Products for the purpose of this Agreement and provide to the Manufacturer the technology transfer information and other technical support
necessary to Manufacture the Products provided, however, that any training with respect thereto shall be at the Manufacturer’s cost. 

5.3 Supply. Subject to the terms and conditions of this Agreement, KLOX agrees that it will supply to Sandoz, and Sandoz agrees that it
will purchase and accept from KLOX such Products as may, from time to time, be ordered by Sandoz during the Term. Sandoz shall not manufacture, purchase or otherwise procure or deal in any Product from any source other than KLOX. The Parties will
work closely to ensure continuous supply of Product to the market. The Manufacturing Costs for the multi-LED LumidermTM light, LumiCleanseTM and LumiBelTM Products shall be agreed by the Parties in writing, but shall not exceed
(i) USD$[***] for the multi-LED LumidermTM light Product, (ii) $[***] for the LumiCleanseTM Product and (iii) $[***] for the LumiBelTM Product. KLOX shall, with Sandoz’s support, use commercially reasonable efforts to
reduce its costs to manufacture and deliver the Products, and will pass on any achieved savings in such costs to Sandoz by lowering the Manufacturing Costs accordingly. 

5.4 Shortage. In the event that any Product is in short supply, KLOX shall notify Sandoz of such shortage as soon as possible and
allocate to Sandoz a prorated share of such Product available to KLOX taking into consideration Sandoz’s relative sales volume in relation to customers of KLOX and its other distributors. Subject to Section 13.4(c), such allocation shall
be the only remedy available to Sandoz due to any such shortage, provided that KLOX shall use commercially reasonable efforts to eliminate, cure or overcome such shortage and to resume performance of its obligations hereunder as soon as reasonably
possible. Within [***] after Launch, KLOX will put in place a contingency plan to deal with potential shortages of the Product for the Territory, which shall include, with Sandoz’s support, the qualification of a back-up manufacturer (subject
to Sandoz’s approval which may not be unreasonably withheld or delayed) of the Products for the Territory. 
 5.5 Forecasts. In
order that KLOX may properly and economically plan production of Products, on or before the [***] of each month of the Term, Sandoz shall provide KLOX with a written rolling [***] forecast, in a form to be agreed upon by the Parties, of the monthly
requirements of each such Product. 
 The first [***] of each [***] forecast shall be binding on Sandoz. 

5.6 Firm Purchase Orders. Sandoz shall order Products by way of firm purchase orders corresponding with the [***] binding part of the
forecast (“Firm Purchase Order”), provided, however, that (a) Firm Purchase Orders shall not be made in any other form of document unless the Parties agree in writing, (b) all Firm Purchase Orders shall be non-cancellable
by Sandoz provided, however, that KLOX or the Manufacturer shall be entitled to reject any Firm Purchase Order or portion thereof if (i) the quantities ordered do not materially comply with the provisions of this Section 5.6, (ii) if
Sandoz is in default of any of its obligations under this Agreement, or (iii) the quantities ordered exceed the forecast provided, (c) Sandoz shall notify KLOX in writing of its desired shipment date(s) for the quantities of Products set
forth in each such Firm Purchase Order, such notification to be delivered to KLOX at least [***] in advance of each such specified shipment date, and (d) each Firm Purchase Order shall be for at least the minimum order quantity for each
respective Product ordered as shall be agreed between the Parties. 

  
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 5.7 Investment. The Parties will cooperate and work together in order to ensure that
Products are available for Launch in the Territory. 
 5.8 Delivery. KLOX shall deliver or arrange for the delivery of the Products
purchased by Sandoz to a carrier designated by Sandoz, Ex Works KLOX’s designated location in Canada (Incoterms 2010) (“Delivery”) within 120 days of receipt of the Firm Purchase Order. KLOX shall be responsible for loading
Products onto the vehicle of Sandoz’ carrier at KLOX’s designated location or, in the event KLOX’s designated location in Canada is Sandoz’ warehouse in Canada for the warehousing of Products, then Sandoz shall be responsible for
ensuring that it unloads the Products at the docks at such warehouse. For the avoidance of doubt, the costs paid by KLOX in connection with the foregoing form part of the Manufacturing Costs. 

5.9 Risk of Loss. Title to the Products sold hereunder shall pass to Sandoz upon [***], whereupon Sandoz shall assume all risk of loss
and damage. 
 5.10 No Liability. KLOX will ensure that the Manufacturer uses commercially reasonable efforts to comply with
unplanned changes in Firm Purchase Orders but neither KLOX nor the Manufacturer shall be liable for the Manufacturer’s inability to do so. 

5.11 Shelf Life. All LumiCleanseTM and LumiBelTM Products supplied by KLOX shall have a shelf life of no less than [***]% from
the approved label at the time of Delivery. 
 5.12 Penalties. Neither KLOX nor the Manufacturer shall in any way be responsible for
any third party contractual penalties payable by Sandoz as a result of any delay or failure to timely deliver any Product. 
 ARTICLE 6

 FINANCIAL MATTERS 

6.1 Signing Fee. Upon signature of this Agreement and receipt of a correct invoice from KLOX, Sandoz will pay to KLOX within [***] a
non-refundable signing fee of $145,000 by wire transfer of immediately available funds to the account designated in writing by KLOX. After January 1, 2014 and on or before January 31, 2014 and upon receipt of a correct invoice from KLOX,
Sandoz will pay to KLOX a second non-refundable signing fee of $405,000 by wire transfer of immediately available funds to the account designated in writing by KLOX. In the event either of such signing fees is not duly paid when due, and provided
KLOX has thereafter notified Sandoz in writing of KLOX’s intention to terminate the Agreement within [***] if payment is not made by Sandoz, then this Agreement may be terminated by KLOX upon a further written notice to Sandoz and all of the
payments to KLOX set out in this Section 6.1 and in Section 6.2 will become immediately due and payable, provided such termination notice is delivered before late payment is made by Sandoz. 

  
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 6.2 Milestone Payments. Acne Indication. 

 

	 	(a)	After January 1, 2014 and on or before January 31, 2014 (or such later date as the conditions in the immediately following clauses (i) and (ii) are fulfilled) and (i) upon receipt of a correct
invoice from KLOX and (ii) provided Sandoz has received Marketing Authorization (by way of cross-reference from the Marketing Authorization of KLOX) from Health Canada for the multi-LED LumidermTM light and LumiCleanseTM Products for
the acne indication, Sandoz will pay to KLOX a fee of $[***] by wire transfer of immediately available funds to the account designated in writing by KLOX. Such fee shall be refunded by KLOX only in the event that (i) none of the Patents is
issued for the acne indication in the Territory by the fourth anniversary of the Launch; (ii) all of the Patents granted in the Territory for the acne indication are invalidated prior to the fourth anniversary of the Launch, and all appeals
have been exhausted; or (iii) this Agreement is terminated by Sandoz pursuant to Section 13.2 or 13.4 prior to the fourth anniversary of the Launch. 

  

	 	(b)	Skin Rejuvenation Indication After January 1, 2014 and on or before January 31, 2014 (or such later date as the conditions in the immediately following clauses (i) and (ii) are fulfilled) and
(i) upon receipt of a correct invoice from KLOX and (ii) provided Sandoz has received Marketing Authorization (by way of cross-reference from the Marketing Authorization of KLOX) from Health Canada for the multi-LED LumidermTM light
and LumiBelTM Products for the skin rejuvenation indication, Sandoz will pay to KLOX a fee of $[***] by wire transfer of immediately available funds to the account designated in writing by KLOX. Such fee shall be refunded by KLOX only in the
event that (i) none of the Patents is issued for the skin rejuvenation indication in the Territory by the fourth anniversary of the Launch; (ii) all of the Patents granted in the Territory are invalidated prior to the fourth anniversary of
the Launch, and all appeals have been exhausted; or (iii) this Agreement is terminated by Sandoz pursuant to Section 13.2 or 13.4 prior to the fourth anniversary of the Launch. 

6.3 Invoice Amount. For and in consideration for each Product delivered, Sandoz shall pay to KLOX the Manufacturing Cost thereof, plus
all applicable goods and services and sales taxes. 
 6.4 Invoicing. Upon Delivery, KLOX shall invoice Sandoz for the Manufacturing
Cost for each Product delivered, plus applicable goods and services and sales taxes. 
 6.5 Payment Terms. Sandoz shall pay KLOX the
Manufacturing Cost and all applicable taxes for each Product within net [***] of Delivery. 
 6.6 Profit Share and Reports. Sandoz
shall deliver to KLOX (a) within [***] following the end of each Quarter of the Term, the Quarterly Statement together with the Profit Share (plus any sales taxes, if any) payable in respect of such Quarter. The Quarterly Statement shall be
subject to verification as set forth in Section 6.10. 

  
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 6.7 Relationship. The collection, holding and remittance of the Profit Share by Sandoz
shall in no way constitute KLOX as an agent or partner of Sandoz and the Parties hereto specifically renounce any intent to form a partnership or joint venture that may be inferred in connection with the Profit Share. Neither Party hereto has any
authority to assume or create any obligation or liability, express or implied, on behalf of or in the name of the other Party in connection with the collection, holding and remittance of the Profit Share. 

6.8 Interest. Any and all amounts payable pursuant to this Agreement, including, without limitation, the milestone payments
contemplated by Section 6.2, the Manufacturing Costs and Profit Share, if any, and all interest thereon and applicable taxes, and which are outstanding at any time in whole or in part beyond the delay provided for payment shall bear interest on
the outstanding sum owing thereunder at the rate per annum equal to the Prime Rate plus [***] percent ([***]%) calculated daily and payable monthly in arrears on the last day of each and every month, with interest on all overdue interest at the same
rate and calculated and payable in the same manner. 
 6.9 Set-off. Any and all payments to be made from time to time by a Party to
the other Party, including, without limitation, the milestone payments contemplated by Section 6.2, the Manufacturing Costs and Profit Share, if any, and all interest thereon and applicable taxes, shall not be subject to any right of set-off,
compensation, abatement, reduction or deduction for any reason whatsoever, including, without limitation, any deduction for returns or expired product. 

6.10 Audit: 
  

	 	(a)	Sandoz shall, at its own expense and in accordance with GAAP, prepare and maintain complete and accurate records and books of account containing all information required for (i) the computation and verification of
the Net Sales and Net Profits during the Term and for a period of [***] after its expiry (or such longer period as may be required by applicable Laws), and (ii) the computation and verification of the Profit Share, during the Term and for a
period of [***] after its expiry (or such longer period as may be required by applicable Laws). 

  

	 	(b)	Sandoz shall, upon reasonable request, permit an internal representative or an independent certified public accountant in each case selected and paid for by KLOX to have free access during regular business hours to
Sandoz’s offices, files, books and account and other records relating to the previous [***], for the purpose of verifying and auditing (i) the calculation of the Net Sales and Net Profits remitted to KLOX by Sandoz, and (ii) the
reports and Profit Share remitted to KLOX by Sandoz. 

  

	 	(c)	The cost of such inspection, examination or audit shall be borne by KLOX unless such inspection, examination or audit reflects an underpayment of [***] percent ([***]%) or more in the Profit Share remitted and reported
by Sandoz and the actual Profit Share due pursuant to this Article 6: 

  
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	 	(d)	In the event of any such underpayment, Sandoz shall immediately pay to KLOX any unremitted amounts of Profit Share with interest as stipulated in Section 6.8, calculated from the [***] following the date on which
same was due and payable and shall reimburse KLOX for all reasonable expenses incurred in connection with such inspections, examinations and audits. In the event the audit shows an overpayment by Sandoz, KLOX shall immediately reimburse Sandoz the
overpaid amounts of Profit Share with interest as stipulated in Section 6.8, calculated from the [***] following the date on which the overpayment becomes payable. 

6.11 Taxes. Each Party shall be responsible for the payment of their own applicable custom duties, sales, goods and services, excise,
value added and other similar taxes, duties and charges of any nature whatsoever due or payable in respect of any payment contemplated by this Agreement. Any payments under this Agreement shall be paid in full without any deduction or withholding of
taxes, except to the extent required by law. If any taxes are required to be deducted or withheld by Sandoz pursuant to legal requirements, Sandoz will (i) pay the taxes to the taxing authority, (ii) send proof of such payment to KLOX, and
(iii) use reasonable efforts to assist KLOX in its efforts to obtain a credit for such tax payment. Each Party agrees to use reasonable efforts to assist the other Party in claiming any legal exemptions from the respective obligation to deduct
or withhold tax under double taxation treaties available under applicable double tax treaties or other applicable laws. 
 ARTICLE 7

 QUALITY ASSURANCE 

7.1 Quality Assurance. KLOX shall be responsible for inspecting and quality control testing the raw materials and packaging materials
for Products and to perform testing of Products to ensure compliance with the Specifications, GMP, GDP and all applicable Laws and determining whether same are fit for use in the Manufacture, production and packaging of the Products hereunder.
Within [***] of the execution of this Agreement, the Parties shall prepare and execute a Quality Assurance Agreement to set forth the quality control and quality assurance obligations of the Parties, the whole in accordance with GMP, GDP and all
applicable Laws. 
 7.2 Storage and Distribution. Both Parties shall: 

 

	 	(a)	adhere to all requirements of all applicable Laws and reasonable instructions of the other Party from time to time that relate to the storage, distribution and handling of the Products in the Territory and comply with
GDP and GMP; 

  

	 	(b)	store the Products in a safe and secure environment and follow Canadian regulations with regard to maintaining storage conditions as listed on the Product monograph, if applicable and ensure that they are adequately
insured or self-insured; and 

  

	 	(c)	adhere to the said Quality Assurance Agreement and any other agreement required by Law. 

  
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amended”

  

 7.3 Post-Delivery Inspection. 

 

	 	(a)	After delivery of a shipment of LumiCleanseTM and/or LumiBelTM Products, Sandoz, an Affiliate of Sandoz, or a Third Party on behalf of Sandoz, will perform a visual incoming inspection in accordance with common
pharmaceutical industry standards and inspect with reasonable care an adequate number of samples of the LumiCleanseTM and/or LumiBelTM Products for conformity to the Specifications. Any apparent defects detected during such visual inspection
or any failure of such LumiCleanseTM and/or LumiBelTM Products to comply with the Specifications or the requirements as set out in this Agreement or the Quality Agreement (the “Rejected Product”) shall be notified in writing
to KLOX (a “Rejection Notice”) (i) within [***] after receipt of the LumiCleanseTM and/or LumiBelTM Products for apparent defects, or (ii) within [***] after discovery, for a failure to comply with the
Specifications or with the requirements as set out in this Agreement or the Quality Agreement. Each batch of each LumiCleanseTM and/or LumiBelTM Product delivered to Sandoz shall be deemed accepted unless Sandoz gives the Rejection Notice to
KLOX within the time limits set out above. A Rejection Notice shall state why the Rejected Product is not acceptable to Sandoz and shall be accompanied by any written reports relating to tests, studies or investigations to that date conducted by or
for Sandoz on the Rejected Product. After giving a Rejection Notice, Sandoz shall, upon the request of KLOX, return to KLOX any Rejected Product, at KLOX’s sole expense, subject to 7.3(f) below. 

 

	 	(b)	KLOX will have [***] from the receipt by KLOX of the Rejection Notice (or if requested, the Rejected Product or samples thereof), to conduct such investigations as may be necessary and notify Sandoz that it denies or
accepts responsibility for the problem with the Rejected Product. 

  

	 	(c)	If KLOX accepts responsibility for the problem, or is determined pursuant to Section 7.3(d) below to be responsible for such problem, then: 

 

	 	(i)	KLOX shall at its option, either use its reasonable commercial efforts to replace the Rejected Product with an equivalent quantity of new LumiCleanseTM and/or LumiBelTM Product, as applicable, within [***] or
reimburse Sandoz the amounts paid to KLOX, if any, for the delivery of Rejected Product or samples thereof; and 

  

	 	(ii)	KLOX shall dispose of Rejected Products and all other waste generated from the manufacture of LumiCleanseTM and/or LumiBelTM Products at its expense pursuant to all applicable Laws. 

 

	 	(d)	If KLOX denies responsibility or fails to accept responsibility within the [***] period, then representative samples of the Rejected Product shall be submitted to a mutually acceptable independent laboratory or
consultant (if not a laboratory analysis issue) for analysis or review, the cost of which shall be paid by the Party against whom the discrepancy is unfavourably resolved by the independent laboratory or consultant. The decision of such independent
laboratory or consultant shall be final and binding upon the Parties. 

  
 24 

	 	(e)	If KLOX is determined to be responsible for such problem, then Section 7.3(c) above shall apply. 

  

	 	(f)	If Sandoz is determined to be responsible for such problems, Sandoz shall (i) reimburse the amount paid by KLOX, if any, for delivery of the Rejected Product or samples thereof to KLOX (and any amount repaid to
Sandoz in respect of the Rejected Product) (ii) pay to KLOX, to the extent not already paid, the amount payable for the Rejected Product contemplated by Section 6.3 with interest, as set forth in Section 6.8, calculated from the
original date of Delivery thereof, and (iii) retain or take possession, as the case may be, of all such Rejected Product and dispose of same at its sole risk and expense. 

7.4 Compliance. KLOX shall be responsible for the final release of each shipment of Product and Sandoz shall ensure that each Product
is supplied to the users thereof in accordance with GMP and GDP. 
 7.5 Quality Audit. For the purpose of permitting a quality and
compliance audit, including compliance with applicable Laws, GDP and GMP, upon reasonable notice and during regular business hours, both Parties or its representatives shall have the right to review and audit the facilities of the other Party and of
the Manufacturer to observe, assist and assure the quality of Products. 
 7.6 Finished Packaging and Labelling. 

 

	 	(a)	Sandoz shall be responsible for providing to KLOX the finished artwork and labelling for the finished Products, which must be acceptable to KLOX, acting reasonably, and all costs associated with any changes to such
artwork or labelling. 

  

	 	(b)	Sandoz’s name shall appear on the label or on the Products as “distributed by Sandoz” subject, however, to any requirements of the applicable Authorities from time to time. 

ARTICLE 8 
 COMPLAINTS
AND PRODUCT DEFECTS 
 8.1 Medical Affairs. Sandoz shall employ a sufficient number of qualified medical personnel to perform any
duties related to the Commercialization of the Products that require specific medical qualifications and shall comply with this Agreement and all agreements entered into pursuant to this Agreement. Sandoz shall provide any medical information on any
Product requested by customers and all users thereof. Such medical information shall consider the registration status of the Products, available scientific information and shall be provided in a manner consistent with applicable Laws and a form and
in format appropriate for the target audience and as instructed by KLOX. 

  
 25 

			
	“[***] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 406 under the Securities Act of 1933, as
amended”

  

 8.2 Product Complaints. All Product Complaints, with the exception of Product
Complaints relating to the multi-LED LumidermTM light Product, shall be the responsibility of Sandoz, who undertakes to diligently handle such complaints and immediately communicate such Product Complaints to KLOX. In the event that KLOX becomes
aware of any such Product Complaints, it shall immediately notify Sandoz of said complaints, cooperate with Sandoz and provide Sandoz with reasonable assistance in the handling of said Product Complaints by Sandoz. Sandoz will handle Product
Complaints with its customers provided, however, that KLOX shall be responsible (either itself or through the Manufacturer or a subcontractor) for processing all Product Complaints and handling all repairs and/or replacements of the multi-LED
LumidermTM light Product and for providing customer services with regard to the multi-LED LumidermTM light Product. In the event, a multi-LED LumidermTM light Product needs to be repaired or replaced and the cost of such repair or
replacement is not (i) covered under the terms of KLOX’s warranty received from the Manufacturer of the multi-LED LumidermTM light Product or (ii) otherwise recoverable by KLOX; then Sandoz and KLOX shall agree whether it is
appropriate to repair/replace the multi-LED LumidermTM light Product and, if so, the cost of such repair/replacement and all related handling charges shall be paid by Sandoz and considered replacement costs (the “Replacement Product
Costs”) which will be deducted from the calculation of Net Profits. 
 8.3 Recalls. Each Party shall within [***] timely
advise the other Party in writing of any potential problems which might reasonably be expected to result in a recall, market withdrawal or field correction (a “Recall”) of any Product sold in accordance with this Agreement. Both
parties shall cooperate and work together in conducting any Recall provided. All reasonable and direct out-of-pocket costs associated with a Recall shall be borne by the Party responsible for the Recall. 

8.4 Adverse Events. The Parties, as holders of the Marketing Authorizations shall be responsible for fulfilling their respective
pharmacovigilance obligations under the Laws related to the Product marketed under this Agreement. 
 ARTICLE 9 

CONFIDENTIALITY 
 9.1
Confidentiality. All Confidential Information furnished by or on behalf of one Party (the “Disclosing Party”) to the other (the “Receiving Party”) in connection with this Agreement or with any proposal to or
from or any negotiation between the Parties shall be kept confidential by the Receiving Party, except for purposes authorized by this Agreement, and the Receiving Party shall not use for itself or others, or disclose Confidential Information to any
Person unless previously authorized in writing by the Disclosing Party to do so; provided, however, that the Receiving Party may (i) disclose the Confidential Information to its directors, officers and employees who require the Confidential
Information for the purposes contemplated by this Agreement and (ii) disclose Confidential Information to its Affiliates strictly on a need-to-know basis for internal auditing purposes in relation to the use of the Confidential Information in
the Territory by Sandoz as permitted under this Agreement and as required by the Affiliates as part of Sandoz’ requirement as a part of the Novartis group of companies to report on its operations to its Affiliates; provided that (a) such
directors, officers, employees and Affiliates are made aware of, and agree to be bound by the provisions of this Article 9, (b) such Affiliates sign 

  
 26 

			
	“[***] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 406 under the Securities Act of 1933, as
amended”

  

 
a confidentiality agreement with KLOX under terms and conditions substantially similar to the terms and conditions set forth in this Article 9 should the scope of any internal audit require any
audit of the Licensed IP, (c) such directors, officers, employees and Affiliates shall not use the Confidential Information for any other purposes and (d) the Receiving Party shall be responsible for all violations of this Agreement by
such directors, officers, employees and Affiliates. 
 9.2 Exclusion. The restrictions imposed by this Article 9 shall not apply to
the disclosure of Confidential Information which: (a) is now, or which hereafter, through no act or failure to act on the part of the Receiving Party, becomes generally known or available to the public without breach of this Agreement;
(b) is known to the Receiving Party at the time of disclosure of such Confidential Information provided that the Receiving Party can satisfactorily demonstrate such prior knowledge and that such knowledge was not gained from third parties
through breach of secrecy; (c) is hereafter furnished to the Receiving Party in good faith by a third party without breach by such third party, either directly or indirectly, of an obligation of secrecy to the Disclosing Party; (d) is
developed independently by the Receiving Party, as evidenced by its written records; or (e) is approved for use or disclosure by written authorization of the Disclosing Party. 

9.3 Disclosures Required under Applicable Laws. Notwithstanding the terms of this Article 9, the Receiving Party shall be entitled to
disclose the Confidential Information to the extent required by applicable Laws provided that it provides the Disclosing Party with written notice that the Confidential Information is proposed to be disclosed sufficiently in advance of the proposed
disclosure so as to provide the Disclosing Party with reasonable opportunity to seek to prevent the disclosure of or to obtain a protective order for the Confidential Information, and provided further that the Receiving Party makes any required
disclosures in consultation with the Disclosing Party and only discloses that portion of the Confidential Information which is legally required. 

9.4 No License. Except as provided herein, this Agreement in no way confers on the Receiving Party any right or license of any kind
regarding any Confidential Information of a Disclosing Party and no right or license under any patent, patent application, copyright or trade mark is granted, or to be construed as being granted, to the Receiving Party. 

9.5 Survival. The provisions of this Article 9 shall remain in force for a period of [***] following the termination of this Agreement,
except with respect to any Confidential Information considered to be a trade secret, the protection of which shall be unlimited in duration. 

ARTICLE 10 
 INTELLECTUAL
PROPERTY 
 10.1 No License. In no way whatsoever does this Agreement confer on either Party any right or license of any kind
regarding Intellectual Property except for the specific rights granted pursuant to this Agreement. 

  
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	“[***] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 406 under the Securities Act of 1933, as
amended”

  

 10.2 Patents. 

 

	 	(a)	KLOX shall use commercially reasonable efforts to apply for and obtain the Patents in a timely manner. With regard to the Patents already filed in Canada, KLOX shall use commercially reasonable efforts to file for an
accelerated review of such Patents within [***] after the Effective Date. For other Patents to be filed in Canada covering exclusively the Indications, KLOX shall use commercially reasonable efforts to file for an accelerated review of such Patents
at the time of filing. In the event that none of the Patents are issued for the Indication for such Products in the Territory by the [***] of the Launch or if all of the Patents granted in the Territory are later invalidated and all appeals have
been exhausted; and Sandoz decides not to terminate the Agreement (as permitted, if applicable, in accordance with Section 13.4(b)) and if a Third Party enters the market with a product similar to any Product and for an indication the same as
any of the Indications, then the Profit Share for such Product only shall thereafter be [***]%) of the Net Profits for such Product only. 

  

	 	(b)	Sandoz shall not use the Patents or KLOX’s Confidential Information relating to the Products in any manner whatsoever calculated to represent that Sandoz is the owner thereof. Sandoz agrees that upon the expiration
or prior termination of this Agreement it shall not thereafter use the Patents relating to the Products for any purpose whatsoever. 

  

	 	(c)	All discoveries, inventions, improvements, new uses, processes, trade secrets, techniques, whether patentable or not, arising from post-marketing studies (if applicable) performed by Sandoz or its Affiliates in
connection with the Products shall be the sole and exclusive property of KLOX, and KLOX shall have the sole and full right, title and interest thereto. 

10.3 Contest. If Sandoz determines to make, file or maintain any claim, demand, lawsuit, cause of action or other action or proceeding,
alleging that any of the Patents are invalid or unenforceable in any court or other governmental organization or before any other arbitrar (collectively, a “Challenge Action”), Sandoz shall notify KLOX in writing of such
determination (such notice a “Challenge Notice”) no less than [***] prior to the making or filing such Challenge Action. Sandoz shall include in any Challenge Notice a reasonably detailed summary of its reasons for believing that
the Patent is invalid or unenforceable, and Sandoz will include with any Challenge Notice an identification of all prior art or other information it believes would render the Licensed Patent invalid or unenforceable. If KLOX receives a Challenge
Notice from Sandoz, thereafter KLOX may, at its option and in its sole discretion terminate this Agreement (in its entirety or on a Patent-by-Patent basis, Product-by-Product basis, or Indication-by-Indication basis) by providing written notice of termination to Sandoz, and, if KLOX so chooses, sue Sandoz for infringement in any
forum of competent jurisdiction of KLOX’s choosing. 
 10.4 No Impairment. Sandoz will not do, or omit to do, anything in its
use of the Licensed IP that could adversely affect the validity or enforceability thereof, or use any Licensed IP in any manner that would injure the reputation of KLOX or its Licensed IP. During the Term, Sandoz will not apply for, or aid or abet
others to apply for, trademark registrations in the Territory or elsewhere of any mark or design which includes the Licensed Trademarks (or any 

  
 28 

			
	“[***] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 406 under the Securities Act of 1933, as
amended”

  

 
variation that is likely to infringe or be confusing similar with the Licensed Trademarks), alone or in combination with except with KLOX’s prior written consent, nor will Sandoz contest
KLOX’s rights in and to KLOX’s Intellectual Property. All goodwill in and to the Licensed IP and all uses of the Licensed IP will enure to the benefit of KLOX. 

10.5 Licensed Trademark. Without limiting the generality of Sections 4.5, 4.9 and 10.3, (a) Sandoz shall not directly or
indirectly (i) alter, modify, dilute or otherwise misuse the Licensed Trademark, (ii) bring the Licensed Trademark into disrepute, (iii) Commercialize any damaged Products or seconds bearing the Licensed Trademark or
(iv) counsel, procure or assist anyone else to do any of the foregoing, (b) Sandoz shall (i) affix the trademark notice (TM) or (®) next to the Licensed Trademark on the
Products as instructed by KLOX from time to time, and (ii) ensure that any and all direct or indirect use of the Licensed Trademark by Sandoz is restricted to the Commercialization of the Products in accordance with the terms and conditions of
this Agreement, and (c) Sandoz acknowledges that any material and deliberate use or attempted use of the Licensed Trademark in violation of any of the foregoing without the prior written consent of KLOX will be invalid and constitute a material
breach of this Agreement. 
 10.6 Notice. Each Party will immediately notify the other Party of any challenge or claims of
infringement regarding the Commercialization of the Products, or of any infringement of the Licensed IP by any Third Party. 
 10.7
Protection. KLOX shall, at its cost and expense, use commercially reasonable efforts to prepare, file, prosecute (including interference and opposition proceedings) and maintain (including interferences, re-examination and opposition
proceedings) the Licensed IP in the Territory, protect the Licensed IP from any invalidity, nullity, revocation, re-examination or compulsory license proceeding, and enforce the Licensed IP from any infringement thereof. Any proceeding to enforce or
defend the Licensed IP may only be brought by KLOX in KLOX’s discretion and at KLOX’s cost and expense and KLOX will have sole conduct and control of such proceedings. In connection therewith, Sandoz will reasonably cooperate in providing
to KLOX in a timely manner any data that is in its possession along with declarations or other documents as may be useful in prosecution or litigation of the Licensed IP. Any recoveries obtained by KLOX with respect to such action or proceeding
against the Third Party infringing the Licensed IP by commercializing any Product, or any amounts obtained in settlement thereof, shall firstly be allocated to reimburse each of KLOX and Sandoz for any internal and out-of-pocket costs incurred by
them with respect to such action or proceeding (allocated between them in proportion to the costs borne by each of them if such recoveries or settlement amounts are insufficient to fully reimburse such costs) and the remainder thereof shall be paid
to KLOX and Sandoz in the proportion of [***]% for KLOX and [***]% for Sandoz. 
 10.8 Actions outside the Indications and Territory.
Sandoz shall not directly or indirectly, make, use, sell, commercialize or otherwise make available any product or service that includes any of the Licensed IP outside of the Territory or outside the Product Indications. If Sandoz becomes aware that
any of its third party sublicensees, licensees, customers, resellers, sales agents, manufacturers or distributers is manufacturing, selling or facilitating the sale of the Products outside of the Territory or the Indications, then Sandoz will
immediately notify KLOX of such activity. 

  
 29 

			
	“[***] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 406 under the Securities Act of 1933, as
amended”

  

 ARTICLE 11 

INSURANCE 
 11.1
Insurance. During the Term, each of KLOX and Sandoz shall carry and maintain in force, at its sole expense, comprehensive general liability insurance (including but not limited to commercial general liability and products liability) and
professional liability insurance (through commercially placed insurance, self-insurance or a combination of self-insurance and commercially placed insurance) with a minimum of not less than $[***] per occurrence. All such commercially placed
insurance shall (a) be issued by insurers having [***] or higher rating and (b) name the other Party as an additional insured with a full waiver of subrogation in favour of such other Party. Each Party shall provide the other Party at
least thirty (30) calendar days advance notice of any cancellation, termination, or material alteration of said insurance policies. Each Party shall deliver to the other Party, prior to the execution of this Agreement and at any other time upon
reasonable request, an insurer or insurer’s agent signed certificates of insurance as well as all other documents which such other Party may reasonably require, as evidence that policies providing such coverage and limits of insurance are in
full force and effect. If any such insurance is on a “claims made basis”, such insurance must be maintained for [***] following termination of this Agreement for any reason whatsoever. 

11.2 Failure to Comply. Neither the failure of a Party to comply with any or all of the insurance provisions of this Agreement nor the
failure to secure endorsements on the policies as may be necessary to carry out the terms and provisions of this Agreement shall be construed to limit or relieve such Party of any of its obligations under this Agreement including, without
limitation, those set out in Article 14. 
 ARTICLE 12 

REPRESENTATIONS AND WARRANTIES 

12.1 Sandoz. Sandoz represents and warrants to KLOX as follows and acknowledges that KLOX is relying on such representations and
warranties in connection with the transactions contemplated by this Agreement: 
  

	 	(a)	Sandoz is a corporation organized and existing under the laws of Canada and has the corporate power to enter into this Agreement and to perform its obligations hereunder. No action has been taken by the directors,
shareholders or any other Person to dissolve Sandoz. 

  

	 	(b)	This Agreement has been duly authorized, executed and delivered by Sandoz and is a legal and binding obligation of Sandoz, enforceable against Sandoz by KLOX in accordance with its terms except as enforcement may be
limited by bankruptcy, insolvency and other laws affecting the rights of creditors generally and except that equitable remedies may be granted only in the discretion of a court of competent jurisdiction. 

 

	 	(c)	Sandoz has taken all necessary corporate action and proceedings to enable it to enter into this Agreement and to perform its obligations hereunder. 

  
 30 

	 	(d)	The execution and delivery of this Agreement by and the consummation of the transactions herein provided for will not result in a breach of, or conflict with: 

 

	 	(i)	any of the terms or conditions of Sandoz’s articles, by-laws or resolutions of the board of directors (or any committee thereof); 

 

	 	(ii)	any judgment, decree, order or award of any court, governmental body or arbitrator having jurisdiction over Sandoz; or 

  

	 	(iii)	any applicable Law. 

  

	 	(e)	Sandoz is not obliged to make any filing with, give any notice to or obtain any Authorization of any Authority as a condition of the lawful consummation of the transactions contemplated by this Agreement other than as
expressly provided for herein in connection with the Products. 

 12.2 KLOX. KLOX hereby represents and warrants to
Sandoz as follows and acknowledges that Sandoz is relying on such representations and warranties in connection with the transactions contemplated by this Agreement: 
  

	 	(a)	The Products shall, at the time of delivery (i) fully meet the Specifications, (ii) have been Manufactured and supplied in compliance with all applicable Laws and the requirements to be set out in the Quality
Agreement, and (iii) be free from any liens, encumbrances or other Third Party’s rights. 

  

	 	(b)	KLOX has the rights in and access to the Licensed IP in the Territory and is entitled to grant the rights and licenses to Sandoz in the Territory as set out in this Agreement. To the best of KLOX’s knowledge, no
Third Party has any rights in or to the Licensed IP that would impair the rights of Sandoz under this Agreement in the Territory. 

  

	 	(c)	To the best of KLOX’s knowledge as of the Effective Date based on a reasonable assessment, the Manufacture, offer for sale or sale of the Products in the Territory does not infringe any patent rights of any Third
Parties. 

  

	 	(d)	KLOX is a corporation organized and existing under the laws of Canada and has the corporate power to enter into this Agreement and to perform its obligations hereunder. No action has been taken by the directors,
shareholders or any other Person to dissolve KLOX. 

  

	 	(e)	This Agreement has been duly authorized, executed and delivered by KLOX and is a legal and binding obligation of KLOX, enforceable against KLOX by Sandoz in accordance with its terms except as enforcement may be limited
by bankruptcy, insolvency and other laws affecting the rights of creditors generally and except that equitable remedies may be granted only in the discretion of a court of competent jurisdiction. 

  
 31 

	 	(f)	KLOX has taken all necessary corporate action and proceedings to enable it to enter into this Agreement and to perform its obligations hereunder. 

 

	 	(g)	The execution and delivery of this Agreement by KLOX and the consummation by it of the transactions herein provided for will not result in a breach or violation of any of the provisions of, or constitute a default
under, or conflict with: 

  

	 	(i)	any of the terms or conditions of KLOX’s articles, by-laws, or resolutions of the board of directors (or any committee thereof); 

 

	 	(ii)	any judgment, decree, order or award of any court, governmental body or arbitrator having jurisdiction over KLOX; or 

  

	 	(iii)	any applicable Law. 

  

	 	(h)	KLOX is not obliged to make any filing with, give any notice to or obtain any Authorization of any Authority as a condition of the lawful consummation of the transactions contemplated by this Agreement other than as
expressly provided for herein in connection with the Products. 

 12.3 Acknowledgements. Both Parties expressly
acknowledge that: 
  

	 	(a)	EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT, EACH PARTY EXPRESSLY DISCLAIMS, WAIVES, RELEASES AND RENOUNCES ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF TITLE,
NON-INFRINGEMENT, MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE; and 

  

	 	(b)	the representations and warranties set out in Section 12.1 and 12.2 shall extend only to the Parties and shall not be assignable in any way whatsoever. 

ARTICLE 13 
 TERM AND
TERMINATION 
 13.1 Term. This Agreement is effective from the Effective Date and shall continue in full force and effect for a
period of five (5) years from the Effective Date (the “Initial Term”). Notwithstanding the above, unless Sandoz provides KLOX with notice in writing of its intent to terminate the Agreement at least twelve (12) months
before the end of the Initial Term, the Term will automatically extend for the later of (i) five (5) additional years or (ii) until the date of expiry of the Patents (the “Extended Term”; the Initial Term, and the
Extended Term if applicable, shall be referred to herein as the “Term”). 
 13.2 Termination with Cause. Either
Party hereto (the “Terminating Party”) may terminate this Agreement immediately in the event that: 
  

	 	(a)	the other Party (the “Defaulting Party”) fails to fulfill any of its obligations under this Agreement relating thereto and such failure is not remedied by the Defaulting Party within thirty
(30) days of receipt of written notice from the Terminating Party with respect thereto; 

  
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	 	(b)	the Defaulting Party makes an assignment for the benefit of its creditors generally, or if the Defaulting Party is declared bankrupt, or a petition in bankruptcy is filed against the Defaulting Party, or the Defaulting
Party files an assignment in bankruptcy or makes a proposal to its creditors or takes, or attempts to take, advantage of any legislation for the relief of bankrupt or insolvent debtors, or a receiver, trustee, manager or any official having similar
powers is appointed or assumes direction with respect to the Defaulting Party or any portion of its business affairs or property; or 

  

	 	(c)	any service or process of execution or judgment be enforced or levied upon any of the Defaulting Party’s property, rights or assets and remains unsatisfied for a period of thirty (30) days or is not discharged
within said delay, provided that such service or process of execution or judgment is not in good faith disputed by the Defaulting Party and in that event, provided further that non-payment thereof shall not, in the sole opinion of the Terminating
Party, jeopardize or impair the Defaulting Party’s performance of its obligations hereunder. 

 13.3 Early Termination
by KLOX. Without prejudice to any other remedies available to it at law or in equity, KLOX may terminate this Agreement for any of the reasons listed below, after providing thirty (30) days notice, in writing, to Sandoz of its intent to so
terminate the Agreement unless Sandoz remedies its default. During such thirty (30) day period the Parties will meet to attempt, acting in good faith, to permit Sandoz to remedy the default. In the event Sandoz is unable to remedy the default
and if the Parties are unable to agree on a satisfactory alternative resolution of the default, KLOX may terminate the Agreement upon a further written notice to Sandoz. The reasons are: 

 

	 	(a)	if Sandoz fails to purchase from KLOX at least 20 units of the multi-LED LumidermTM light Product, inclusive of all units
purchased prior to Launch, by the end of the first twelve (12) months following the Launch, at least 40 units of the multi-LED LumidermTM light Product, inclusive of all previous units purchased, by
the end of the second twelve (12) month period following the Launch, or at least 60 units of the multi-LED LumidermTM light Product, inclusive of all previous units purchased, by the end of the third twelve (12) month period following
the Launch; 

  

	 	(b)	if Sandoz does not use commercially reasonable efforts to Commercialize the Products; 

  

	 	(c)	if Sandoz fails to submit a Quarterly Statement or pay any Profit Share twice in any twelve (12) month period; or 

  

	 	(d)	if the Profit Share payable to KLOX is less than $400,000 during the third calendar year commencing after the date of Launch or during any subsequent calendar year of the Term. 

  
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 13.4 Early Termination by Sandoz. Without prejudice to any other remedies available to it
at law or in equity, Sandoz may terminate this Agreement for any of the reasons listed below, after providing thirty (30) days notice (unless otherwise provided below), in writing, to KLOX: 

 

	 	(a)	if the Marketing Authorizations for the Products are not obtained; 

  

	 	(b)	if none of the Patents for the Territory is issued for the Indications for such Products in the Territory by the fourth anniversary of the Launch, or if all of the Patents granted in the Territory are invalidated prior
to the fourth anniversary of the Launch and all appeals have been exhausted; or 

  

	 	(c)	in the event KLOX is unable for a period of nine (9) months or longer to supply Sandoz with Products. 

13.5 Consequences of expiration or termination. In the event of expiration or earlier termination of this Agreement for any reason
whatsoever, then: 
  

	 	(a)	Sandoz shall immediately cease marketing, selling and distributing the Products; 

  

	 	(b)	all licenses and other rights granted hereunder by KLOX to Sandoz shall automatically terminate; 

  

	 	(c)	Sandoz shall, at its sole cost and expense, (i) immediately surrender, cancel and rescind or cause to be surrendered, cancelled and rescinded all Authorizations relating to any Product which Sandoz may have
obtained, (ii) voluntarily file with the appropriate Authorities all documents that may be required in connection with such surrender, cancellation or rescission, and (iii) if requested by KLOX, cooperate with KLOX in effecting the
cancellation of any identification of Sandoz with any Authorities or Authorizations applicable to each Product; 

  

	 	(d)	all Confidential Information (including all copies thereof and all unused samples) and all complete and partial originals and copies of documents, computer disks and any other material containing Confidential
Information of the other Party shall be properly returned to the Disclosing Party by the Receiving Party or, at the Disclosing Party’s request, destroyed, with such destruction certified in writing by the Receiving Party to the Disclosing
Party. Notwithstanding the foregoing, the Receiving Party may keep one (1) copy of such documents as may be required by Law or Authority in a secure legal archive for the purposes of fulfilling its legal or regulatory requirements;

  

	 	(e)	in the event of termination by KLOX pursuant to Section 13.3 only, Sandoz shall not be obligated to pay any milestone payments that are not due on the date of termination; and 

 

	 	(f)	 any terms or conditions of this Agreement which by their nature extend beyond the Term, termination or expiry of this Agreement shall survive the
termination or expiry of same, including, without limitation, any obligation to pay or refund any 

  
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	“[***] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 406 under the Securities Act of 1933, as
amended”

  

	 	
sum due, Article 6 (Financial Matters), Article 7 (Quality Assurance), Article 8 (Complaints and Product Defects), Article 9 (Confidentiality), Article 10 (Intellectual Property), Article 11
(Insurance), Article 12 (Representations and Warranties), this Section 13.5, Article 14 (Indemnification) and Article 15 (Miscellaneous). 

ARTICLE 14 

INDEMNIFICATION 
 14.1
Indemnification. Each Party shall defend, indemnify, and hold harmless the other Party, its Affiliates, and their respective directors, officers and employees from and against any and all losses, damages, liabilities, costs and expenses [***]
(“Losses”) suffered by, imposed upon or asserted against any of them by a Third Party (a “Third Party Claim”) as a result of, in respect of, connected with, or arising out of, under, or pursuant to: 

 

	 	(a)	the failure of the indemnifying Party to perform or fulfill any of its obligations under this Agreement; 

  

	 	(b)	any breach or inaccuracy of any representation, warranty or guarantee given by the indemnifying Party contained in this Agreement; or 

 

	 	(c)	the negligence or willful misconduct on the part of the indemnifying Party. 

 14.2
Additional Indemnification by Sandoz. In addition to the indemnifications set forth at Section 14.1, Sandoz shall defend, indemnify and hold harmless KLOX, its Affiliates, and their respective directors, officers and employees
harmless from and against, all Losses incurred in connection with any Third Party Claim to the extent arising out of or resulting from the marketing of the Products by Sandoz (except to the extent that KLOX has an obligation to indemnify Sandoz
pursuant to the terms of Section 14.3). 
 14.3 Additional Indemnification by KLOX. In addition to the indemnifications set
forth at Section 14.1, KLOX shall defend, indemnify and hold harmless Sandoz, its Affiliates, and their respective directors, officers and employees harmless from and against, all Losses incurred in connection with any Third Party Claim to the
extent arising out of or resulting from any infringement claim relating to the Licensed IP. 
 14.4 Limitation on Damages.
Notwithstanding anything herein to the contrary: 
  

	 	(a)	Except (i) in the case of a breach by Sandoz or any of its Affiliates or subcontractors of any restrictions on the use of the Licensed IP hereunder, (ii) in the case of breach by either Party of the
obligations set forth in Article 9 and (iii) as concerns the obligations of indemnification hereunder; in no event will either Party hereto be liable with respect to the subject matter of this Agreement for any indirect, consequential, special,
incidental, exemplary or punitive damages or similar damages or losses of any nature whatsoever, including, without limitation, for any loss of clientele, sales or profits, regardless of whether arising from breach of contract, warranty, tort,
delict, quasi-delict, strict liability or otherwise, even if the Party is advised of the possibility of such damage or loss or if such loss or damage could have been reasonably foreseen; 

  
 35 

			
	“[***] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 406 under the Securities Act of 1933, as
amended”

  

	 	(b)	no Indemnifying Party shall have any liability under this Agreement to any Indemnified Party to the extent the Losses arise from any negligence or misconduct of the Indemnified Party; and 

 

	 	(c)	without limiting either Party’s liability to any Third Party or the right of either Party to implead another Party in warranty in any legal action, no Party shall be required to indemnify another Party in
connection with any Product liability claim. 

 14.5 Notification and Procedure. 

 

	 	(a)	Notice. Promptly upon obtaining knowledge thereof, the Party being indemnified hereunder (the “Indemnified Party”) shall give written notice to the Party providing indemnification
hereunder (the “Indemnifying Party”) of any cause which the Indemnified Party has determined has given or could give rise to indemnification under this Article 14. The omission to so notify the Indemnifying Party shall not relieve
the Indemnifying Party from any duty to indemnify and hold harmless which otherwise might exist with respect to such cause unless (and only to that extent) the omission to notify materially prejudices the ability of the Indemnifying Party to defend
or otherwise reduce the Losses associated with such liability. 

  

	 	(b)	 Third Party Claim. In the case of any Third Party Claim, if within [***] after receiving notice of a claim for indemnification, the
Indemnifying Party (i) gives written notice to the Indemnified Party stating that such Indemnifying Party would be liable in the amount of such claim if such claim were valid and that such Indemnifying Party disputes and intends to defend
against such Third Party Claim at its or their own cost and expense and (ii) provides reasonable assurance to such Indemnified Party that such indemnification will be paid fully and promptly if required and such Indemnified Party will not incur
cost or expense during the proceeding, then counsel for the defense shall be selected by the Indemnifying Party (subject to the consent of the Indemnified Party, which consent shall not be unreasonably withheld); provided, however, that the
assumption of defense of any such matters by the Indemnifying Party shall relate solely to the Third Party Claim that is subject or potentially subject to indemnification. If the Indemnifying Party assumes such defense in accordance with the
preceding sentence, they shall have the right, with the consent of such Indemnified Party, which consent shall not be unreasonably withheld, to settle all indemnifiable matters related to such Third Party claims. The Indemnifying Party shall keep
the Indemnified Party apprised of the status of the claim and any resulting suit, proceeding or enforcement action, shall furnish the Indemnified Party with all documents and information that the Indemnified Party shall reasonably request and shall
consult with the Indemnified Party prior to acting on all major matters, including settlement discussions. Notwithstanding anything 

  
 36 

			
	“[***] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 406 under the Securities Act of 1933, as
amended”

  

	 	
herein stated, the Indemnified Party shall at all times have the right to fully participate in such defense at their own expense directly or through counsel; provided, however, if the named
parties to the action or proceeding include both the Indemnifying Party and the Indemnified Party and representation of both parties by the same counsel would be inappropriate under applicable standards of professional conduct, the reasonable
expense of separate counsel for the Indemnified Party shall be paid by the Indemnifying Party. If no such notice of intent to dispute and defend is given by the Indemnifying Party, or if such diligent good faith defense is not being or ceases to be
conducted, the Indemnified Party shall, at the expense of the Indemnifying Party, undertake the defense of (with counsel selected by the Indemnified Party), and shall have the right to compromise or settle any such Third Party Claim. If such Third
Party Claim is one that by its nature cannot be defended solely by the Indemnifying Party, then the Indemnified Party shall make available all information and assistance that the Indemnifying Party may reasonably request and shall cooperate with the
Indemnifying Party in such defense. 

  

	 	(c)	Exceptions. Notwithstanding any provision in Section 14.5(b) to the contrary, the Indemnifying Party shall not have the right to assume and/or maintain, as applicable, control of the defense of any such Third
Party Claim under Section 14.5(b) if any such Third Party Claim (i) seeks non-monetary relief, or (ii) involves criminal allegations. 

  

	 	(d)	Cooperation. The Indemnified Party shall use its reasonable efforts to make available to the Indemnifying Party those employees whose assistance, testimony or presence is necessary to assist the Indemnifying
Party in evaluating and defending any Third Party Claims. However, the Indemnifying Party shall be responsible for the expense associated with any employees made available by the Indemnified Party to the Indemnifying Party pursuant to this
Section 14.5(d), which expense shall be equal to an amount to be mutually agreed upon per person per hour or per day for each day or portion thereof that the employees are assisting the Indemnifying Party and which expenses shall not exceed the
actual cost to the Indemnified Party associated with the employees. 

  

	 	(e)	Payment. Upon the determination of any liability under this Section 14.5 or otherwise between the Parties or by judicial proceeding, the appropriate Party shall pay to the other, as the case may be, within
[***] after such determination, the amount of any claim for indemnification made hereunder. Except as otherwise provided in this Agreement, all amounts not paid when due pursuant to this Section 14.5, will accrue interest, payable on demand, at
an annual rate equal to the Prime Rate plus [***]% per annum, calculated [***], from the date due until paid in full and each paying Party will pay the other Party’s reasonable and documented out-of-pocket costs and expenses (including without
limitation, reasonable attorneys’ fees and expenses) incurred in attempting to collect any such amounts. 

  
 37 

	 	(f)	Obligation to Mitigate. The Parties and their respective Affiliates shall use commercially reasonable efforts to mitigate any Losses with respect to which they wish to seek indemnification hereunder.

 14.6 Indemnified Party’s Cooperation as to Proceedings. The Indemnified Party will cooperate in all reasonable
respects with any Indemnifying Party in the conduct of any proceeding as to which such indemnifying party assumes the defense. For the cooperation of the Indemnified Party pursuant to this Section 14.6, the Indemnifying Party or parties shall
promptly reimburse the indemnified party for all reasonable out-of-pocket costs and expenses, legal or otherwise, incurred by the Indemnified Party or its Affiliates in connection therewith, as such costs and expenses are incurred. 

ARTICLE 15 

MISCELLANEOUS 
 15.1
Notices. Any notices required or permitted to be given hereunder shall be in writing and shall be effectively given if delivered personally, sent by prepaid courier service or certified mail, return receipt requested, or sent by telecopier or
other similar means of electronic communication (confirmed on the same or following date by prepaid mail) addressed as follows: 
  

	 	(a)	in the case of KLOX to: 

 KLOX Technologies Inc. 

275 Armand-Frappier 
 Montreal,
Quebec H7V 4A7 
 Attention:                Lise
Hébert 
               President and Chief
Executive Officer 
 Facsimile No.:         450-680-4549 

with a copy to: 
 BCF LLP 

1100 René-Lévesque Blvd. West, 25th Floor 

Montreal, Quebec H3B 5C9 

Attention:               Gino Martel 

Facsimile No.:        514-397-8515 

 

	 	(b)	in the case of Sandoz to: 

 Sandoz Canada Inc. 

145 Jules-Leger 
 Boucherville,
Quebec J4B 7K8 
 Attention:              Marc Beaudoin, VP, Strategy
and Business Development 
 Facsimile No.:       450-641-3170 

with a copy to: 
 Christian Danis,
Vice-President, Legal and Government Affairs, at the same address. 

  
 38 

 any notice so given shall be deemed conclusively to have been given and received when so personally delivered or
sent by telecopier or on the second day following the sending thereof by private courier and, except in the case of a postal disruption, on the sixth day following the sending thereof by prepaid mail, certified, return receipt requested. If the day
on which any notice is deemed to have been received is not a Business Day, then the notice shall be deemed to have been received on the Business Day next following such day. 

15.2 Assignment. Except as expressly permitted herein, Sandoz shall not sell, transfer or assign any of its rights, titles and
interests in and under this Agreement to, or subcontract or otherwise make any other arrangement regarding such rights, titles and interests with any Person without the prior written consent of KLOX. KLOX may freely sell, transfer, assign,
subcontract or otherwise make any arrangement regarding its rights and obligations in and under this Agreement. Any permitted assignee shall assume all obligations of the assigning Party. 

15.3 Currency. Unless otherwise indicated, all dollar amounts referred to in this Agreement are expressed in Canadian dollars. 

15.4 Expenses. All costs and expenses (including the fees and disbursements of legal counsel, investment advisers and accountants)
incurred in connection with this Agreement and the transactions contemplated therein shall be paid by the Party incurring such costs and expenses. 

15.5 Headings. The division of this Agreement into Articles and Sections and the insertion of headings are for the convenience of
reference only and shall not affect the construction or interpretation of this Agreement. 
 15.6 Entire Agreement. This Agreement
shall constitute the entire agreement between the Parties and supersede and replace in all respects any other agreements, whether oral or written, expressed or implied, as they pertain to the subject matter hereof. There are no representations,
warranties, covenants, conditions or other agreements, express or implied, collateral, statutory or otherwise, between the Parties in connection with the subject matter of this Agreement except as specifically set forth herein and neither Party has
relied or is relying on any other information, discussion or understanding in entering into and completing the transactions contemplated in this Agreement. 

15.7 Severability. Every provision of this Agreement is intended to be severable. If any term or provision hereof is illegal or invalid
for any reason whatsoever, such illegality or invalidity shall not affect the validity of the remaining terms and conditions hereof. 

15.8 Binding Effect. This Agreement shall be binding upon and enure to the benefit of the respective successors and permitted assigns
of the Parties. 

  
 39 

			
	“[***] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 406 under the Securities Act of 1933, as
amended”

  

 15.9 Relationship. Nothing in this Agreement shall be construed to create a
partnership, joint venture, principal-agent or employer-employee relationship and nothing herein shall be deemed to authorize either Party to act for, represent or bind the other Party. 

15.10 Novartis Code. Novartis (Sandoz is a Novartis company) promotes the societal and environmental values of the United Nations
Global Compact to its third party suppliers and uses its influence where possible to encourage their adoption. Sandoz expects suppliers to comply with the law and to adhere to ethical business practices, as out in the Novartis Supplier Code, a copy
of which is attached to this Agreement as Schedule A. 
 KLOX shall: 

(A) Familiarize itself with the requirements of the Novartis Supplier Code. 

(B) Provide, at Sandoz’s expense, information on request to Sandoz or its Affiliates concerning labour, health and safety, environment,
animal welfare, anti-bribery and fair competition, and data protection and privacy practices, in the form requested. 
 (C) Upon at least
[***] prior written notice, allow, at Sandoz’s expense, Sandoz or its Affiliates (or its nominated third party experts) adequate access for the purposes of auditing compliance with these standards no more than [***] per year. 

(D) Use commercially reasonable efforts to rectify identified non-compliances with the Novartis Supplier Code and report remediation progress
to Sandoz on request within [***] of receipt of written notice of any non-compliance. 
 Failure to comply with the foregoing shall entitle
Sandoz to terminate this Agreement. 
 15.11 ISO Certification. Sandoz recognizes KLOX’s need to comply with and ensure its ISO
certification for the Products and in connection therewith, agrees to furnish to KLOX such post-marketing surveillance, customer complaint, pharmacovigilance, safety and other Product related information Sandoz may possess as KLOX may from time to
time request to satisfy KLOX’s ISO 13485 reporting requirements at KLOX’s expense unless specifically provided for under this Agreement. 

15.12 Governing Law and Jurisdiction. This Agreement shall be governed by the laws in force in the Province of Quebec and the Parties
hereto consent and submit in advance to the exclusive jurisdiction of the courts having jurisdiction in Province of Quebec for all disputes arising herefrom. For the purposes of the Agreement, the Parties elect domicile in the District of Montreal.

 15.13 Amendments, Waivers and Consents. No amendment to, or waiver of, any provision of this Agreement or consent to any departure
by a Party from any provision of this Agreement will in any event be effective unless in writing and signed (a) by the Parties in the case of amendments and (b) by the waiving or consenting Party in the case of waivers and consents. 

  
 40 

 15.14 Further Assurances. The Parties hereto agree to execute such further agreements,
documents, instruments and the like as may be necessary or desirable from time to time in order to affect the purposes of this Agreement and to carry out its provisions. 

15.15 Counterparts. This Agreement may be executed in any number of counterparts (including counterparts by facsimile), each of which,
once executed, shall be deemed an original of this Agreement and all of which together shall constitute one and the same agreement. 

15.16 Language. The Parties hereto declare that they have required that this Agreement and any documents relating thereto be drawn up
in English. Les parties aux présentes déclarent qu’elles ont exigé que cette entente et tous les documents y afférant soient rédigés en anglais. 

IN WITNESS WHEREOF, THE PARTIES HERETO HAVE EXECUTED THIS AGREEMENT AT THE PLACE AND ON THE DAY AND YEAR HEREINABOVE SET FORTH. 

[Signature Page Follows.] 

  
 41 

 Signature Page—Distribution and Supply Agreement 

 

									
	KLOX Technologies Inc.	 		 	Sandoz Canada Inc.
					
	Per:	 	/s/ Lise Hébert	 		 	Per:	 	/s/ Marc Beaudoin
					
	Name:	 	Lise Hébert	 		 	Name:	 	Marc Beaudoin
					
	Title:	 	President & CEO	 		 	Title:	 	VP Strategy & BD
					
	Date:	 	November 15, 2013	 		 	Date:	 	November 15, 2013

  

									
					
	Per:	 	/s/ H. Rodriguez	 		 	Per:	 	/s/ Martin Fournier
					
	Name:	 	H. Rodriguez	 		 	Name:	 	Martin Fournier
					
	Title:	 	Vice President & CFO	 		 	Title:	 	VP Finance & IT
					
	Date:	 	15 November, 2013	 		 	Date:	 	November 15, 2013

  
 42 

 SCHEDULE A 

NOVARTIS SUPPLIER CODE 

  
 43 

			
	“[***] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 406 under the Securities Act of 1933, as
amended”

  

 SCHEDULE B 

LICENSED TRADEMARKS 
 Common law rights:

 “KLOX”, any variation thereof and the related current design marks. 

Registerable rights: 
 [***] 

  
 44 

			
	“[***] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 406 under the Securities Act of 1933, as
amended”

  

 SCHEDULE C 

PATENT APPLICATIONS 
  

							
	 Country
	  	 Application No.
	  	 Filing date
	  	 Title

				
	Canada	  	[***]	  	[***]	  	[***]
				
	Canada	  	[***]	  	[***]	  	[***]
				
	PCT**	  	[***]	  	[***]	  	[***]
				
	US**	  	[***]	  	[***]	  	[***]
				
	US**	  	[***]	  	[***]	  	[***]

 The rights to the above-listed patent applications do not include any rights to claimed subject matter that is not directed
to the Indications or the Products. 
  

	**	These applications are included to the extent that they are nationalized in Canada. 

  
 45 

 SCHEDULE D 

FORM OF QUARTERLY STATEMENT 
  

	TO:	[Note: Insert name and address of KLOX]  

	  	Attention: CFO 

  

	RE:	Distribution and Supply Agreement made and entered into as of the [ • ] day of [ • ], 2013 by and between KLOX Technologies Inc. and Sandoz Canada Inc. (the “Agreement”)

 With reference to Section 6.6 of the Agreement, I, [ • ], hereby certify to you as follows: 

 

	1.	I am the [ • ] of Sandoz and as such, I have actual knowledge of the matters herein certified; 

  

	2.	This Quarterly Statement constitutes the Quarterly Statement for the Quarter ending [ • ]; 

  

	3.	Pursuant to the Agreement, I hereby certify that: 

  

	 	(a)	attached hereto as Schedule D-1 is a true and correct accounting of all sales figures of each Product, specifying the average sales price per Product, total Net Sales and the number of each Product sold;

  

	 	(b)	attached hereto as Schedule D-2 is a true and correct accounting of the inventory status of Products; 

  

	 	(c)	the detailed itemized breakdown of the calculation of the Net Profits for such Quarter is accurately set out in Schedule D-3 hereto; 

 

	 	(d)	the Profit Share to be paid by Sandoz to KLOX for this Quarter is $[ • ], calculated as set forth in such Schedule D-3; and 

 

	 	(e)	[no prior period adjustments are required to be made to the Net Profits in accordance with GAAP]. 

  

	4.	Save and except as set forth above, no other information is required to confirm the correctness or accuracy of the Profit Share payable for this Quarter. 

Signed at the City of [ • ], Province of [ • ], on this [ • ] day of [ • ], 2013. 

 

	
	[ • ]

  
 46 

 Pro Forma of Profit Share Calculation: 

Quarterly Statement & Profit Share Calculation 

Agreement between Klox Technologies and Sandoz Canada 
  

			
	Profit share calculation	  	
	Period covered:	  	Q1-2014
		
		  	in CAD
		
	Inventory	  	
		
	Quantity sold	  	
		
	Average gross sales price	  	
		
	Gross sales	  	
		
	Sales deductions	  	
		
	NET SALES	  	
		
	Manufacturing costs	  	
		
	Write-offs	  	
		
	Inbound delivery costs	  	
		
	Distribution expenses	  	
		
	Sales and marketing expenses	  	
		
	NET PROFIT	  	
		
	KLOX PROFIT SHARE 40% OF NET PROFIT	  	

  
 47 

 SCHEDULE E 

EXCLUDED ENTITIES 

  
 48 

			
	“[***] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 406 under the Securities Act of 1933, as
amended”

  

 SCHEDULE F 

FINANCIAL MODEL 
 This model has been
prepared by Sandoz and is the basis for the present Agreement; KLOX has not audited or been provided any detail behind this model and as such retains its rights of review and audit consistent with the other provisions of this Agreement. 

[***] 

  
 49 

			
	“[***] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 406 under the Securities Act of 1933, as
amended”

  

 SCHEDULE G 

PERMITTED ACTIVITIES 
  

	 	•	 	Prior to Launch, KLOX, may present/promote the Products to up to [***] innovators (physicians), jointly with Sandoz. KLOX will file the requisite Notification to identify Sandoz as the distributor of such Products in
Canada for KLOX. Any sales to such innovators prior to Launch shall be booked as sales by Sandoz and the profit therefrom shall be shared with KLOX in the same manner as the Net Profits are shared pursuant to the Agreement except that Sandoz shall
reimburse to KLOX all reasonable costs incurred in connection with such activities and the Manufacturing Costs of Products provided in connection therewith and all such costs and Manufacturing Costs shall be deducted from the Net Profits. Such Net
Profits shall be calculated in the same manner as the Net Profits under the Agreement mutatis mutandis and 40% of such Net Profits shall be remitted to KLOX in the same manner as set forth in Section 6.6 of the Agreement, the provisions
of which shall apply mutatis mutandis. 

  

	 	•	 	Sandoz shall provide reasonable assistance to KLOX to facilitate all the foregoing activities. 

  

	 	•	 	KLOX shall use commercially reasonable efforts to accelerate the transfer of the cross-referenced marketing authorization for the Products to Sandoz. 

 

	 	•	 	The Parties may also jointly agree and work together on any other promotional activities prior to (and after) Launch. 

  
 50EX-10.11

 EXHIBIT 10.11 

“[***] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission
pursuant to Rule 406 under the Securities Act of 1933, as amended” 
 CONFIDENTIAL 

DATED AS OF JULY 9, 2014 

KLOX TECHNOLOGIES INC. 
 -
and - 
 LEO PHARMA A/S 
  

 
 LICENSE

 & 
 JOINT
VENTURE AGREEMENT 
  
  

 

 CONFIDENTIAL 
  

 TABLE OF CONTENTS 

 

							
	 1.
	 	DEFINITIONS	  	 	12	  
			
	     1.1
	 	Definitions	  	 	12	  
			
	     1.2
	 	Interpretation	  	 	31	  
			
	     1.3
	 	Paramountcy	  	 	32	  
			
	 2.
	 	GRANT OF RIGHTS	  	 	32	  
			
	     2.1
	 	Licence to LEO to Commercialize Licensed Products in the Territory	  	 	32	  
			
	     2.2
	 	KTI Regulatory Approval and Notification	  	 	32	  
			
	     2.3
	 	Trade Mark Licence	  	 	33	  
			
	     2.4
	 	Sub-license Rights	  	 	33	  
			
	     2.5
	 	Canada	  	 	34	  
			
	     2.6
	 	Licence to KTI for Inventions	  	 	35	  
			
	     2.7
	 	License to KTI	  	 	35	  
			
	 3.
	 	EXCLUSIVITY AND RELATED RIGHTS	  	 	36	  
			
	     3.1
	 	KTI Exclusivity	  	 	36	  
			
	     3.2
	 	LEO Exclusivity	  	 	37	  
			
	     3.3
	 	Exclusions	  	 	38	  
			
	     3.4
	 	Possible Expansion of the KTI Field	  	 	38	  
			
	     3.5
	 	Reserved Rights	  	 	39	  
			
	     3.6
	 	LEO Complementary Products	  	 	40	  
			
	     3.7
	 	Opportunities	  	 	40	  
			
	     3.8
	 	Notification and Enforcement	  	 	41	  
			
	 4.
	 	MANAGEMENT OF THE RELATIONSHIP	  	 	41	  
			
	     4.1
	 	The Joint Steering Committee	  	 	41	  
			
	     4.2
	 	Limitations	  	 	43	  
			
	     4.3
	 	Membership and Governance	  	 	43	  

  

							
			
	     4.4
	 	Scientific Subcommittee	  	 	44	  
			
	     4.5
	 	Manufacturing and Commercialization Committee	  	 	45	  
			
	     4.6
	 	JSC Meetings	  	 	45	  
			
	     4.7
	 	JSC Decision Making	  	 	46	  
			
	     4.8
	 	Coordination	  	 	46	  
			
	     4.9
	 	Project Manager	  	 	47	  
			
	     4.10
	 	Decision Making	  	 	47	  
			
	     4.11
	 	Alliance Managers	  	 	48	  
			
	     4.12
	 	Dispute Resolution by Executive Officers	  	 	49	  
			
	     4.13
	 	KTI Final Decision Making	  	 	49	  
			
	     4.14
	 	LEO Final Decision Making	  	 	49	  
			
	     4.15
	 	No Prejudice	  	 	49	  
			
	     4.16
	 	Expert	  	 	50	  
			
	     4.17
	 	Cost for Governance of JV Business	  	 	50	  
			
	 5.
	 	DEVELOPMENT OF LICENSED PRODUCTS	  	 	50	  
			
	     5.1
	 	Collaboration	  	 	50	  
			
	     5.2
	 	Collaboration Phases	  	 	51	  
			
	     5.3
	 	Development Plan	  	 	56	  
			
	     5.4
	 	Conduct of Development Plans	  	 	57	  
			
	     5.5
	 	First Development Plan	  	 	58	  
			
	     5.6
	 	Clinical Studies	  	 	59	  
			
	     5.7
	 	Clinical Study Procedures	  	 	60	  
			
	     5.8
	 	Development Costs and Collaboration Budget	  	 	61	  
			
	     5.9
	 	Audits	  	 	62	  
			
	     5.10
	 	Reporting of Result; Records and Documentation	  	 	63	  

  
 3/169 

							
	 6.
	 	REGULATORY	  	 	64	  
			
	     6.1
	 	Responsibility for Regulatory Applications in the Territory	  	 	64	  
			
	     6.2
	 	Transfer of CE Mark for Licensed Products	  	 	65	  
			
	     6.3
	 	KTI Regulatory Support	  	 	65	  
			
	 7.
	 	COMMERCIALIZATION	  	 	65	  
			
	     7.1
	 	Commercializing Responsibilities	  	 	65	  
			
	     7.2
	 	Soft Launch	  	 	66	  
			
	     7.3
	 	Marketing Materials	  	 	66	  
			
	     7.4
	 	Annual Marketing Plan	  	 	67	  
			
	     7.5
	 	Commercialization Reports	  	 	67	  
			
	     7.6
	 	Use of Trade Marks	  	 	68	  
			
	     7.7
	 	Standards	  	 	68	  
			
	 8.
	 	MANUFACTURING AND SUPPLY	  	 	68	  
			
	     8.1
	 	Responsibilities during Development	  	 	68	  
			
	     8.2
	 	Responsibilities during Commercialization	  	 	68	  
			
	     8.3
	 	Supply Agreement with respect to the Acne Studies	  	 	69	  
			
	     8.4
	 	Quality Agreement	  	 	69	  
			
	 9.
	 	DILIGENCE	  	 	69	  
			
	     9.1
	 	Commercially Reasonable Efforts	  	 	69	  
			
	     9.2
	 	Discretion	  	 	70	  
			
	 10.
	 	EXCLUDED AND DISCONTINUED PRODUCTS AND ORPHAN INDICATIONS	  	 	71	  
			
	     10.1
	 	Excluded Products	  	 	71	  
			
	     10.2
	 	Discontinued Product	  	 	72	  
			
	     10.3
	 	Orphan Development	  	 	74	  
			
	 11.
	 	AE AND INCIDENT REPORTING AND REGISTRATION	  	 	75	  
			
	     11.1
	 	Reporting and registration	  	 	75	  

  
 4/169 

							
			
	     11.2
	 	Responsible Person	  	 	75	  
			
	 12.
	 	COMPLIANCE AND DATA PROTECTION	  	 	75	  
			
	     12.1
	 	Compliance	  	 	75	  
			
	     12.2
	 	Interactions with HCP	  	 	76	  
			
	     12.3
	 	Data Protection	  	 	76	  
			
	 13.
	 	FINANCIAL TERMS	  	 	78	  
			
	     13.1
	 	Payments	  	 	78	  
			
	     13.2
	 	Up-front Payment	  	 	78	  
			
	     13.3
	 	Payment of Net Proceeds	  	 	78	  
			
	     13.4
	 	Payment of Adjusted Net Sales	  	 	79	  
			
	     13.5
	 	Royalty Adjustment	  	 	80	  
			
	     13.6
	 	Calculation of Adjusted Net Sales and Net Proceeds	  	 	83	  
			
	     13.7
	 	Third Party Payment	  	 	83	  
			
	 14.
	 	PAYMENT TERMS	  	 	84	  
			
	     14.1
	 	Currency and Timing of Payments	  	 	84	  
			
	     14.2
	 	Invoicing of Development Costs	  	 	84	  
			
	     14.3
	 	Taxes	  	 	84	  
			
	     14.4
	 	Interest	  	 	85	  
			
	     14.5
	 	Record Keeping and Audit	  	 	85	  
			
	     14.6
	 	DK GAAP	  	 	86	  
			
	 15.
	 	OWNERSHIP OF INTELLECTUAL PROPERTY	  	 	86	  
			
	     15.1
	 	Excluded IP	  	 	86	  
			
	     15.2
	 	Inventions	  	 	87	  
			
	     15.3
	 	Inventorship	  	 	87	  
			
	     15.4
	 	Cooperation with Respect to Inventions	  	 	87	  
			
	     15.5
	 	Assignment of Intellectual Property rights	  	 	88	  

  
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	 16.
	 	MANAGEMENT OF PATENT RIGHTS	  	 	88	  
			
	     16.1
	 	Priority Applications and Patent Applications for Patent Rights	  	 	88	  
			
	     16.2
	 	Abandonment of Patent Rights	  	 	90	  
			
	     16.3
	 	No Impairment	  	 	91	  
			
	     16.4
	 	Prosecution and Maintenance of the Patent Rights	  	 	91	  
			
	     16.5
	 	Notification of Infringement	  	 	91	  
			
	     16.6
	 	Infringement in Territory	  	 	92	  
			
	     16.7
	 	Settlement	  	 	93	  
			
	     16.8
	 	Recovery	  	 	93	  
			
	     16.9
	 	Interferences and Other Proceedings	  	 	93	  
			
	     16.10
	 	Notice and Defence of Third Party Infringement Claims	  	 	94	  
			
	     16.11
	 	Product Marking	  	 	95	  
			
	 17.
	 	TRADE MARKS	  	 	95	  
			
	     17.1
	 	Trade Marks	  	 	95	  
			
	     17.2
	 	Ownership of Trade Marks and KTI House Marks	  	 	95	  
			
	     17.3
	 	Use of Trade Marks	  	 	95	  
			
	     17.4
	 	No Impairment	  	 	96	  
			
	     17.5
	 	Infringement of Trade Marks	  	 	96	  
			
	     17.6
	 	Recovery in respect of Infringement of Trade Marks	  	 	97	  
			
	     17.7
	 	Settlements	  	 	97	  
			
	 18.
	 	TERM AND TERMINATION	  	 	97	  
			
	     18.1
	 	Term of Agreement	  	 	97	  
			
	     18.2
	 	Termination by LEO upon completion of the US Acne Study	  	 	97	  
			
	     18.3
	 	Termination by LEO	  	 	98	  
			
	     18.4
	 	Termination for Breach	  	 	99	  
			
	     18.5
	 	Termination by KTI	  	 	100	  

  
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	     18.6
	 	Insolvency	  	 	100	  
			
	     18.7
	 	Option	  	 	102	  
			
	 19.
	 	CONSEQUENCES OF TERMINATION	  	 	103	  
			
	     19.1
	 	Full Termination	  	 	103	  
			
	     19.2
	 	Full Termination for Change of control or breach by KTI	  	 	107	  
			
	     19.3
	 	Partial Termination	  	 	109	  
			
	     19.4
	 	Partial Termination according to Clause 18.1(b)(i) and (ii)	  	 	109	  
			
	     19.5
	 	Termination of R&D Obligations	  	 	114	  
			
	     19.6
	 	Termination for KTI Insolvency	  	 	115	  
			
	     19.7
	 	Damages	  	 	116	  
			
	     19.8
	 	Return of Confidential Information after Termination	  	 	116	  
			
	     19.9
	 	KTI obligation to make distinction	  	 	116	  
			
	     19.10
	 	Licenses	  	 	117	  
			
	     19.11
	 	Accrued Rights	  	 	117	  
			
	     19.12
	 	Surviving Clauses	  	 	117	  
			
	     19.13
	 	Related Agreements	  	 	117	  
			
	 20.
	 	CONFIDENTIALITY	  	 	118	  
			
	     20.1
	 	Confidential Information	  	 	118	  
			
	     20.2
	 	Confidentiality Obligations	  	 	119	  
			
	     20.3
	 	Internal Disclosure of Confidential Information	  	 	119	  
			
	     20.4
	 	Exceptions	  	 	119	  
			
	     20.5
	 	Permitted Use and Disclosures	  	 	120	  
			
	     20.6
	 	Publication	  	 	121	  
			
	 21.
	 	WARRANTIES	  	 	122	  
			
	     21.1
	 	Warranties	  	 	122	  
			
	     21.2
	 	LEO Warranties	  	 	122	  

  
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	     21.3
	 	KTI Warranties	  	 	123	  
			
	     21.4
	 	Undertakings	  	 	124	  
			
	     21.5
	 	No Implied Warranties	  	 	125	  
			
	     21.6
	 	No Warranties of Patent Rights	  	 	125	  
			
	     21.7
	 	No Further Representations or Warranties	  	 	126	  
			
	 22.
	 	LIABILITY AND INDEMNITIES	  	 	126	  
			
	     22.1
	 	No Consequential Damages	  	 	126	  
			
	     22.2
	 	Indemnification by LEO	  	 	126	  
			
	     22.3
	 	Indemnification by KTI	  	 	126	  
			
	     22.4
	 	Notification of Liabilities/Losses	  	 	127	  
			
	     22.5
	 	Proceedings	  	 	127	  
			
	     22.6
	 	Supply	  	 	128	  
			
	     22.7
	 	Mitigation	  	 	128	  
			
	     22.8
	 	Restriction on Limitation of Liability	  	 	128	  
			
	     22.9
	 	Insurance	  	 	128	  
			
	 23.
	 	FINANCIAL STATEMENTS COMMUNICATION	  	 	129	  
			
	 24.
	 	SHARE PURCHASE AGREEMENT	  	 	129	  
			
	 25.
	 	WAIVER	  	 	129	  
			
	 26.
	 	ENTIRE AGREEMENT/VARIATIONS	  	 	129	  
			
	     26.1
	 	Entire Agreement	  	 	129	  
			
	     26.2
	 	Amendment	  	 	130	  
			
	 27.
	 	NOTICES	  	 	130	  
			
	     27.1
	 	Sending of notice	  	 	130	  
			
	     27.2
	 	Receipt of notice	  	 	131	  
			
	     27.3
	 	Notice	  	 	131	  

  
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	 28.
	 	ASSIGNMENT AND CHANGE OF CONTROL	  	 	132	  
			
	     28.1
	 	Assignment	  	 	132	  
			
	     28.2
	 	No-Fly-Zone	  	 	132	  
			
	     28.3
	 	Surviving Obligations	  	 	133	  
			
	 29.
	 	FORCE MAJEURE	  	 	133	  
			
	     29.1
	 	Performance	  	 	133	  
			
	     29.2
	 	Definition	  	 	134	  
			
	     29.3
	 	Settlement	  	 	134	  
			
	     29.4
	 	Continuing Event	  	 	134	  
			
	 30.
	 	SEVERANCE OF TERMS	  	 	134	  
			
	     30.1
	 	Severance	  	 	134	  
			
	     30.2
	 	Good Faith Discussion	  	 	135	  
			
	 31.
	 	NATURE OF THIS AGREEMENT	  	 	135	  
			
	 32.
	 	PUBLIC STATEMENTS	  	 	135	  
			
	 33.
	 	NO THIRD PARTY RIGHTS	  	 	136	  
			
	 34.
	 	COSTS	  	 	136	  
			
	 35.
	 	COUNTERPARTS	  	 	137	  
			
	 36.
	 	CONSTRUCTION	  	 	137	  
			
	 37.
	 	DISPUTE RESOLUTION	  	 	137	  
			
	     37.1
	 	Governing Law and Jurisdiction	  	 	137	  
			
	     37.2
	 	Informal Resolution	  	 	137	  
			
	     37.3
	 	Expert	  	 	138	  
			
	     37.4
	 	Arbitration	  	 	140	  
			
	 38.
	 	EXPORT CONTROL	  	 	142	  
			
	 39.
	 	SECURITY INTEREST	  	 	142	  
			
	     39.1
	 	KTI Patents First Ranking Lien	  	 	142	  
			
	     39.2
	 	Hypothec	  	 	146	  

  
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	 Schedule 1 Acne Studies
	  	 	149	  
		
	 Schedule 2 Core Country List
	  	 	150	  
		
	 Schedule 3 First Licensed Product
	  	 	151	  
		
	 Schedule 4 Product Marks
	  	 	157	  
		
	 Schedule 5 KTI Patent Rights
	  	 	159	  
		
	 Schedule 6 Regions
	  	 	160	  
		
	 Schedule 7 Distributors
	  	 	162	  
		
	 Schedule 8 LEO Pharma Animal Welfare requirements
	  	 	163	  
		
	 Schedule 9 Form of Quarterly Statement
	  	 	167	  
		
	 Schedule 10 No Fly Zone
	  	 	169	  

  
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 CONFIDENTIAL 
  

 THIS AGREEMENT DATED THE 9TH DAY OF JULY, 2014 (the “Effective Date”) 

IS MADE BETWEEN: 
  

	(1)	KLOX Technologies Inc., a company registered under the laws of Canada under the corporate number 6886086 (NE 829452416RC0001) with a registered office at 275 Boul. Armand-Frappier, H7V 4A7 Laval, Quebec, Canada
(“KTI”); and 

  

	(2)	LEO PHARMA A/S, a corporation organised under the laws of the Kingdom of Denmark with Central Business Register number 56759514, having its principal offices at Industriparken 55, 2750 Ballerup, Denmark
(“LEO”); 

 KTI and LEO are referred to from time to time herein individually as a “Party” or
collectively as the “Parties”. 
 RECITALS 
  

	(A)	WHEREAS, KTI has developed a platform technology and intellectual property based on a biophotonic principle of illuminating a topical formulation with blue-light for the emission of beneficial wavelengths of light
intended for the prevention and/or treatment of indications within dermatology, aesthetics, wound healing, oral health and other areas; 

  

	(B)	WHEREAS, LEO currently develops and commercializes various pharmaceutical products around the world, including but not limited to, products within dermatology; 

 

	(C)	WHEREAS, the Parties are interested in establishing a joint venture to exclusively exploit the Licensed Products (as defined below) in the Field (as defined below) and to explore the further development and
commercialization of biophotonic treatments within the confines of such joint venture in such Field, utilizing the individual strengths and competencies of each organization; 

 

	(D)	WHEREAS, KTI has obtained a CE Mark and has filed the required Notifications (as hereinafter defined) in order to market the First Licensed Products (as hereinafter defined) in Europe and Canada, while the regulatory
pathway in all other countries has yet to be determined or obtained; and 

  
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amended”

  

 CONFIDENTIAL 
  

	(E)	WHEREAS the Parties have agreed that LEO shall invest 10 million USD in common shares of KTI according to a separate equity investment agreement executed simultaneously on the Effective Date; 

NOW THEREFORE, in consideration of the following mutual promises and obligations, and for other good and valuable consideration the adequacy and
sufficiency of which are hereby acknowledged, the Parties agree as follows: 
 1. DEFINITIONS 

1.1 Definitions. In this Agreement, the following capitalised terms, whether used in the singular or plural, shall have the meanings
set forth below: 
 “Acne Studies” means the one or more [***] clinical trials of the First Licensed Product to be
conducted by LEO in the acne indication to support the First Licensed Product registration in the United States and reimbursement in the United States, European Union and other territories pursuant to a Development Plan, as summarily described in
Schedule 1. 
 “Adjusted Net Sales” means Net Sales less the Permitted Deductions. 

“Adjusted Profit Share” has the meaning set forth in Clause 13.5. 

“Adverse Event” or “AE” means any untoward medical occurrence in a patient receiving a medical treatment and
which does not necessarily have a causal relationship with such treatment or any failure of the medical device and includes, without limitation, any unfavourable and unintended sign (for example, an abnormal laboratory finding), symptom or disease
temporally associated with the treatment or any failure of the medical device, whether or not considered related to the treatment, and, in relation to post market surveillance standards, policies and procedures, together with all medical device
events, (including incidents, near-incidents, serious injuries, malfunctions and failures), untoward medical events and events such as suicide or aggressive behaviour threats, overdose, abuse, misuse, medication errors and other events that may
reasonably be related to biomedical research. 

  
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 CONFIDENTIAL 
  

 “Aesthetic Condition” means any condition in relation to any aesthetic
products or services that are used for Skin Rejuvenation, such as cleansing, refreshing, beautifying or promoting attractiveness, improving or altering the complexion of skin, without any medical or any therapeutic claims associated with the use of
such products or the rendering of such services. 
 “Affiliate” means, with respect to a given entity, any person,
corporation, partnership or other entity, that Controls, is Controlled by, or is under common Control with such entity. 

“Agents” shall have the meaning set forth in Clause 20.3. 

“Agreement” means this agreement and all schedules, appendices and other addenda attached thereto approved in writing from
time to time, as any of the foregoing may be amended in accordance with the provisions of this Agreement. 
 “Alliance
Manager” shall have the meaning set forth in Clause 4.11. 
 “Annual Marketing Plan” shall have the meaning set
forth in Clause 7.4. 
 “Annual Statement” shall have the meaning set forth in Clause 13.6. 

“Authorized Wholesalers” means any Third Party who, in connection with the Commercialization of Licensed Products, provides
for or on behalf of LEO primarily logistic, warehousing or inventory services but does not use marketing material provided by LEO or otherwise provide any marketing functions pursuant to instructions by or on behalf of LEO . 

“Biophotonic” means the generation, manipulation, detection and application of photons in a biologically relevant
context. In other words, biophotonic compositions and materials exert their physiological effects primarily due to the generation and manipulation of photons. 

“Biophotonic Formulation” means (a) any composition containing one or more light-activatable Biophotonic substances that
have the property of absorbing light and, based on such absorption, having a biological effect on tissue, including as of the Effective Date such formulations comprising the First Licensed Product and (b) all derivatives and variations thereof
and improvements thereto. 

  
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 CONFIDENTIAL 
  

 “Business Day” means a day other than a Saturday, Sunday or a day on which
banks are not open for business in Denmark or Québec, Canada. 
 “Business Segment” means, as the case may be: 

 

	 	(a)	in the case Clause 3.3 applies, the Licensed Product contemplated thereby, for each country where it cannot be legally Commercialized; 

 

	 	(b)	with respect to a discontinued Idea contemplated by Clause 5.2(a)(v), the Licensed Products comprised within such Idea for the entire Territory; 

 

	 	(c)	with respect to the opportunity contemplated in the last sentence of Clause 5.2(b)(vi), each Licensed Product which is the object thereof; 

 

	 	(d)	with respect to an Opportunity Notice sent pursuant to Clause 10.1(c), the Excluded Product contemplated thereby, for the entire Territory; 

 

	 	(e)	with respect to Discontinued Products, the following: 

  

	 	(i)	in the case of a Discontinued Product for a Region only, as contemplated by Clause 10.2(a) and Part B of Schedule 6, then such Discontinued Product for such Region only; or 

 

	 	(ii)	in the case of a Discontinued Product for a specific indication within the Field, then such Discontinued Product for such indication only, for the entire Territory; and 

 

	 	(f)	in the case of partial termination of this Agreement pursuant to Clause 18.2, 18.3 or 18.5, each Region and indication being the object of the partial termination. 

“CE Mark” means the certification that a Licensed Product meets the requirements of European Directive (93/42/EEC), as such
directive may be amended or replaced from time to time. 

  
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 CONFIDENTIAL 
  

 “Clinical Study” means any kind of study on or involving human subjects.

 “Collaboration Budget” has the meaning as set forth in Clause 5.8. 

“Commercialization”, “Commercialize” and their derivations mean such activities, other than research,
development and manufacturing activities, which are directed or relating to the offering for sale or sale of a product, and which may include, but not required to include, activities relating to marketing, promotion, distributing, selling and
offering to sell, import, export and transport of such product, Adverse Event or Incident reporting and post-market surveillance studies, together with other activities typically associated with maximizing the market penetration, profit margins and
commercialization of such product. For clarity, Commercialization activities shall also include planning and implementation, booking of sales, pricing, billing and coding support for HCP and clinics and reimbursement activities. 

“Commercially Reasonable Efforts” means the degree of good faith efforts and resources consistent with those generally
utilized by a similarly structured (e.g. size and global reach; size of R&D Budget; structure of sales force) and situated pharmaceutical company for its own internally developed products of similar commercial potential, at a similar stage of
their product life taking into account all materially relevant factors and prevailing market conditions in the Territory at the time, including maturity, position in its life cycle, market size and profitability, product safety and efficacy,
development and commercialization costs and risks, market competition, the proprietary position of the product and other technical, legal, scientific, medical or commercial factors that have direct relevance to the relevant product. 

“Commercially Reasonable Principles” means principles based on sound scientific rationale and commercially reasonable concerns
and opportunities, as the case may be, taking into account the JV Business as a whole, the prevailing market conditions and the risk of jeopardizing the Commercialization of existing Licensed Product, if any; the whole without taking into account
such business or other interest of any Party which may conflict directly with the best interests of the JV Business; however the JV Business shall be considered on equal terms as any other businesses or opportunities carried out by a Party. These
principles cannot supersede the financial limits stipulated by the Collaboration Budget provided by LEO and any other limitations set forth in this Agreement or otherwise agreed between the Parties. 

  
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 CONFIDENTIAL 
  

 “Competing Product” means any product incorporating any [***] and any [***]
of such product, wherein at least [***] is capable of [***]. 
 “Confidential Information” shall have the meaning set out in
Clause 20.1. 
 “Control,” “Controls,” “Controlled” or “Controlling”
means: 
  

	 	(a)	in respect of any partnership, corporation or other entity, the direct or indirect ownership of more than fifty percent (50%) of the outstanding shares or other voting rights of the subject entity having the power
to vote on or direct the affairs of the entity, (or such lesser percentage which is the maximum allowed to be owned by a foreign corporation in a particular jurisdiction). Any other relationship which in fact results in actual control over the
management, business and affairs of an entity shall also be deemed to constitute Control; and 

  

	 	(b)	in respect of any Intellectual Property or Know-How whether owned by or licensed to an entity, the possession of the legal right and ability to grant the respective licenses or sub-licenses as provided herein without
violating the terms of any agreement or other arrangement with any Third Party and without the entity having to make payments to the licensee unless such payments are met in full by the licensee. 

“Core Country List” means the countries where patents [***] be filed, as currently listed in Schedule 2. 

“Cost of Goods” means, for Licensed Products, the Out-of-Pocket Costs paid by a Party to a Third Party manufacturer together,
where not included in that payment to such manufacturer, with the Out-of-Pocket Costs of Manufacture (including [***], to the extent not already paid to KTI), transportation and insurance insofar as these are the responsibility of, and incurred by
that Party. 

  
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 CONFIDENTIAL 
  

 “Data Protection Laws” has the meaning set forth in Clause 12.3. 

“Development Budget” means the JSC approved budget of prospective costs (including FTE Costs and Out-of-Pocket Costs directly
related to the activities and materials required for use in the research and development of Licensed Products) to be incurred by the Parties in connection with the execution of each Development Plan in relation to a Development Project. Each
Development Budget shall include (i) a detailed annual itemised budget [***] for the relevant project; and (ii) an estimated budget of projected costs and expenses for the Development Project as a whole. 

“Development Plan” has the meaning set forth in Clause 5.3. 

“Development Project” means any project covering activities to achieve Regulatory Approval with respect to any Licensed
Product or potential Licensed Product as approved by the JSC according to Clauses 5.2(a) and 5.2(b). 
 “Discontinued
Product” shall have the meaning set forth in Clause 10.2(a). 
 “Dispute Notice” has the meaning set forth in
Clauses, 3.4, 4.16, 5.2(a)(v), 5.2(b)(vi), 9.2, 10.1(b), 10.2(b), 14.6 and 19.10. 
 “Distributor” means a Third Party to
which the right to distribute or resell Licensed Products (which may including marketing and promotion) is granted by LEO and to which LEO supplies Licensed Products for such distribution or resale, subject, however, to the restrictions set forth in
Clause 2.4. Authorized Wholesalers, hospitals and hospital buying groups and pharmacies and pharmacy chains shall not be considered to be Distributors. 

“DK-GAAP” means Danish Generally Accepted Accounting Principles subject, however to Clause 14.6. 

“Effective Date” shall have the meaning set forth above. 

“EMA” means the European Medicines Agency. 

“Excluded Product” shall have the meaning set forth in Clause 10.1(b). 

  
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 CONFIDENTIAL 
  

 “Executive Officer” has the meaning set forth in Clause 37.2. 

“Expert” has the meaning set forth in Clause 37.3. 

“FDA” means the Food and Drug Administration in the United States of America. 

“FD&C Act” means that federal statute of the United States of America enacted in 1938 as Public Law 75-717, as amended, and which is contained in Title 21 of the U.S. Code, Section 301 et seq., as amended, and the regulations promulgated thereunder from time to time. 

“Field” means the prevention and/or treatment of (a) diseases and conditions related to dermatology (other than Orphan
Indications) and (b) Aesthetic Conditions through the administration or application of [***] product by HCP. For clarity purposes, the Field specifically excludes the KTI Field. 

“First Licensed Product” means the Licensed Products based upon the current Lamp (exemplified by THERA lamp and the
multi-panel lamp) used in combination with the current gels (exemplified by LumiCleanse and LumiBel) for the prevention and/or treatment of acne and/or treatments of Aesthetic Conditions, respectively; all of the foregoing as described in more
detail in Schedule 3. 
 “Force Majeure” shall have the meaning set forth in Clause 29.2. 

“FTE” means the equivalent in working hours of one full time graduate or similarly qualified employee employed by a Party
working at least [***] hours per week (excluding holidays). 
 “FTE Cost” means the fully burdened annual internal direct
reasonable cost of employing an FTE including all employee related compensation and benefits including salary, bonuses, profit sharing, taxes, insurances, training, travel, subsistence, professional dues, catering and employee related overheads
(including human relations, payroll, purchasing, supervisory costs, space allocation and computer and information systems). The FTE Cost in Canada is currently an approximate average annual non-limitative amount of US$[***] based on average
intermediate (technical) type of positions relevant for the research and development activities currently envisaged to 

  
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 CONFIDENTIAL 
  

 
be performed under this Agreement, which amount is dependent upon the nature and scope of each mandate but will not exceed US$[***]. The FTE Cost for LEO Clinical Studies is currently an
approximate average annual non-limitative amount of US$[***] based on tasks described in clause (c) of the definition of Permitted Deductions, which amount is dependent upon the nature and scope of each mandate but will not exceed US$[***].
 
 “Good Clinical Practice” or “GCP” means the regulations and applicable ICH guidelines for the
design, conduct, performance, monitoring, auditing, recording, analysis, and reporting of clinical trials, as applicable to the development of Licensed Product from time to time, including 21 C.F.R. Part 11, 50, 54, 56, 58, and 812 and Commission
Directive 90/385/EC, 93/42/EC, MEDDEC 2.7/3 or ISO14155:2011 as amended from time to time. 
 “HCP” means any person
authorized by the Laws in the country where such person practices to provide healthcare services to any person or community together with any employee of such a person or any person acting under the supervision of such a person. HCPs shall include
but not be limited to doctors, nurses, dermatologists and paramedics. 
 “IDE” means an Investigational Device Exemption, as
described in 21 C.F.R. Section 812, filed for purposes of conducting Clinical Studies on a Licensed Product in accordance with the requirements of the FD&C Act and the regulations promulgated thereunder, including all supplements and
amendments thereto, and any analogous application and process required by a Regulatory Authority in a country or regulatory jurisdiction elsewhere in the Territory in order to conduct clinical studies on a Licensed Product in such country or
regulatory jurisdiction. 
 “Idea” shall have the meaning as set forth in Clause 5.2(a). 

“IFRS” means the International Financial Reporting Standards in force at the relevant time as published by the International
Accounting Standards Board. 
 “Incident” means any malfunction or deterioration in the characteristics and/or performance
of a device, as well as any inadequacy in the labeling or the instructions for use which, directly or indirectly, might lead to or might have led to the death of a patient, or user or of other persons or to a serious deterioration in their state of
health. 

  
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amended”

  

 CONFIDENTIAL 
  

 “Intellectual Property” or “IP” means: 

 

	 	(a)	all (i) Inventions, Patent Rights, utility models, and other like forms of protection, (ii) copyrights, copyright registrations and copyright applications, copyrightable works and all other corresponding
rights including database rights and rights in databases, (iii) trade marks, trade names, trade dress, trade or service marks and logos (whether registered or unregistered), internet addresses and domain names and all goodwill associated with
any of the foregoing, (iv) design rights, industrial designs, integrated circuitry (whether registered or unregistered), (v) all computer software (including source and object code); (vi) registrations, applications and renewals for
any the foregoing, and (vii) all other similar proprietary rights as may exist anywhere in the world; but 

  

	 	(b)	for the purpose of this Agreement, specifically excludes [***]. 

 “Invention”
means any invention or discovery which is, or may be, patentable or otherwise protectable under the patent or other similar laws of any country. 

“Joint Invention” means any Invention that is conceived or reduced to practice jointly by or on behalf of KTI and/or any of
its Affiliates and by or on behalf of LEO and/or any of its Affiliates during the term of this Agreement as a result of performing a Development Plan or Development Project or any other obligation pursuant to this Agreement or any Related Agreement,
including all activities under this Agreement or any Related Agreement related to the discovery, research or development, Manufacture or Commercialization of any Licensed Product or any derivative or variation thereof. 

“Joint Know-How” means all Know-How that is generated jointly by or on behalf of KTI and/or any of its Affiliates and by or on
behalf of LEO and/or any of its Affiliates during the term of this Agreement as a result of performing a Development Plan or Development Project or any other obligation pursuant to this Agreement or any Related Agreement, including all activities
under this Agreement or any Related Agreement related to the discovery, research or development, Manufacture or Commercialization of any Licensed Product or any derivative or variation thereof. 

  
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 “Joint Steering Committee” or “JSC” has the meaning set
forth in Clause 4.1. 
 “Joint Technology” means all Joint Inventions and Joint Know-How. 

“Joint Venture Business” or “JV Business” means the contractual joint venture business contemplated by this
Agreement to conduct research and development of products to qualify as Licensed Products and to Manufacture and Commercialize the Licensed Products, in each case in the Field, and all of the activities to be conducted by each of the Parties
pursuant to or in connection with this Agreement or any Related Agreement in connection therewith. For the avoidance of doubt, any reference herein to joint venture, Joint Venture Business or JV Business does not mean and shall not be interpreted as
meaning the creation or intention to create any kind of partnership or independent legal joint venture entity between the Parties. 

“Know How” means unpatented technical, scientific and other information that is not in the public domain, including all ideas,
concepts, and technical information obtained in any form or through any process or discussion, which may include, but is not limited to, regulatory files, design history files, drawings, technical files, information related to materials, technical
processes, specifications, instrumentation, formulae, assays, manufacturing methods, discoveries, clinical and preclinical results, non-patentable inventions, trade secrets, standard operating procedures, and any physical, chemical or biological
material, software, sales and marketing information and data-collections whether in written, electronic or other form. The fact that a part of a compilation of data is in the public domain shall not prevent the compilation of data as such, or any
one or more of the other elements of the compilation from being Know How. 
 “KTI Background Technology” means any and all
(a) Know-How covered by clause (a) of the definition of KTI Know-How and (b) Intellectual Property (i) that is necessary [***] for the development, Manufacture or Commercialization of any Licensed Product, and (ii) that KTI
Controls as of the Effective Date including such Intellectual Property [***] prior to the Effective Date and the Patent Rights covered by clause (a) of the definition of KTI Patent Rights. 

  
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 “KTI CE Mark” means a CE Certification obtained by KTI for a Licensed
Product. 
 “KTI Field” means the prevention or treatment of (a) chronic wounds, acute wounds including burns and/or
keloids or cosmesis resulting therefrom [***]; (b) oral diseases, oral care and oral aesthetics; and (c) such other fields agreed to between the Parties pursuant to Clause 3.4 below. 

“KTI Foreground Technology” means any and all (a) KTI Know-How covered by clause (b) of the definition of KTI
Know-How and (b) Intellectual Property (i) that arises during the term of this Agreement as a result of performing a Development Plan or Development Project or any other obligation pursuant to this Agreement or any Related Agreement,
including all activities under this Agreement or any Related Agreement related to the discovery, research or development, Manufacture or Commercialization of any Licensed Product, (ii) that is developed, conceived or reduced to practice solely
by or on behalf of KTI and/or any of its Affiliates, and (iii) that does not include or incorporate any Know-How or Intellectual Property of LEO and/or any of its Affiliates. 

“KTI House Mark” means such trade mark or logo related to or including the company name of KTI as listed in Schedule 4 Part C.
Schedule 4 shall be updated by the Parties from time to time. 
 “KTI Invention” means any Invention that is conceived or
reduced to practice during the term of this Agreement solely by or on behalf of KTI and/or any of its Affiliates, related to any Licensed Product, including any improvement, enhancement and addition to, and extension of any KTI Technology. 

“KTI Know-How” means (a) any and all Know-How, (i) that is necessary [***] for the development, Manufacture or
Commercialization of any Licensed Product and (ii) that KTI Controls as of the Effective Date, including such Know-How [***] prior to the Effective Date, and (b) any and all Know-How (i) that is generated solely by or on behalf of KTI
and/or any of its Affiliates after the Effective Date, to the extent it has any applicability to any Licensed Product and (ii) that does not include or incorporate any Know-How or Intellectual Property of LEO. 

  
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 CONFIDENTIAL 
  

 “KTI Notifying Body” means Instituto Superiore di Sanita (Notified Body no.
0373) and/or BSI Group (Notified Body no. 0086). 
 “KTI Patent Rights” means (a) all of the Patent Rights listed in
Schedule 5 and (b) all of the Patent Rights in relation to any and all KTI Inventions and KTI’s rights in and to any and all Joint Inventions. 

“KTI Patents First Ranking Lien” has the meaning set forth in Article 39. 

“KTI Technology” means all KTI Background Technology and KTI Foreground Technology. 

“KTI Trade Mark” means the trade marks and logos set out in Schedule 4 Part A as KTI Trade Mark. Schedule 4 shall be updated
by the Parties from time to time. 
 “Lamp” means (a) a light source product for use with one (1) or more
Biophotonic Formulation(s), which, as of the Effective Date, includes the lamps further described in Schedule 3 and (b) all derivatives and variations thereof and improvements thereto. 

“Law” means all applicable regional, national and supra national laws, regulations, rules, directives and regulatory guidance.

 “LEO Background Technology” means any and all (a) Know-How covered in clause (a) of the definition of LEO
Know-How and (b) Intellectual Property Controlled by LEO and/or any of its Affiliates as of the Effective Date (i) that is not generated, conceived or reduced to practice under or in connection with this Agreement or any Related Agreement,
and (ii) that does not include or incorporate any KTI Technology, and, in each case, which may be relevant for research, development, Manufacture or Commercialization of any Licensed Product and, by agreement only of the Parties in the JSC, has
been included in a Development Project or Development Plan. 

  
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 “LEO Foreground Technology” means any and all (a) Know-How covered by
clause (b) of the definition of LEO Know-How and (b) Intellectual Property (i) that arises during the term of this Agreement as a result of performing a Development Plan or Development Project or any other obligation pursuant to this
Agreement or any Related Agreement, including all activities under this Agreement or any Related Agreement related to the discovery, research or development, Manufacture or Commercialization of any Licensed Product, (ii) that is developed,
conceived or reduced to practise solely by or on behalf of LEO and/or any of its Affiliates, and (iii) that does not include or incorporate any KTI Technology. 

“LEO Invention” means any Invention that is conceived or reduced to practice during the term of this Agreement solely by or on
behalf of LEO and/or any of its Affiliates, under or in connection with a Development Project or a Development Plan, for use in connection with any Licensed Product. 

“LEO Know-How” means (a) any and all Know-How (i) that may [***] for the development, Manufacture or
Commercialization of any Licensed Product and (ii) that LEO Controls as of the Effective Date and (b) any and all Know-How (i) that is generated solely by or on behalf of LEO and/or any of its Affiliates during the term of this
Agreement, to the extent it [***] for the development, Manufacture or Commercialization of any Licensed Product and (ii) that does not include or incorporate any KTI Technology. 

“LEO Trade Mark” means a trade mark that is selected and used by LEO in relation to a Licensed Product. LEO Trade Marks shall
be listed in Schedule 4 Part B, as updated by the Parties from time to time. 
 “LEO Sub-licensee” means a Third Party to
which a sub-licence of the rights granted to LEO in Article 2 [***] is granted by LEO and to which LEO does not supply Licensed Products, subject, however, to the restrictions set forth in Clause 2.4. For the sake of clarity, [***] are not LEO
Sub-licensees. 
 “LEO Technology” means all LEO Background Technology and LEO Foreground Technology. 

  
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 “Licensed Product” means (a) any Biophotonic Formulation; or
(b) any Lamp, for use solely in combination with one (1) or more Biophotonic Formulation(s); in each case Controlled by KTI and/ or any of its Affiliates from time to time during the term hereof. 

“Licensed Technology” means the KTI Technology and KTI’s rights in and to any and all Joint Technology. 

“Loss Carry Forward” means in relation to any Quarter, the amount by which the Net Sales for such Quarter are less than the
Permitted Deductions for such Quarter. 
 “Major Markets” means the United States, [***] European pharmaceutical markets
[***], [***], and Canada (to the extent it becomes part of the Territory pursuant to Clause 2.5). For the purpose of Clause 2.4, the term “Major Markets” shall also include [***]. 

“Manufacture”, “Manufacturing” and their derivations mean all operations to receive all raw materials, components,
packaging materials and other items necessary for, and all operations relating to the manufacturing process and technology development, production scale-up, production, packaging, conversion, mixing, filling, labelling, [***] product testing,
quality control testing and [***], including establishing and improving manufacturing processes and technologies. 
 “Medical Device
Incident Reporting and Post Marketing Surveillance Agreement” means a Medical Device Incident collecting, exchanging and reporting agreement that addresses the issues and reflects the principles set out in Article 11. 

“Net Proceeds” means the cash and non-cash consideration (including up-front payments and milestone payments, but excluding
[***]) received from time to time by LEO in consideration for or in connection with (a) any rights directly or indirectly granted by LEO to any LEO Sub-licensee or Distributor in relation to any Licensed Product or (b) any direct or
indirect divestiture by LEO or any of its Affiliates of any direct or indirect rights in or to any part or the whole of this Agreement or any Related Agreement. 

  
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 “Net Sales” means: 

 

	 	(a)	the royalty income payable to LEO or any of its Affiliates by LEO Sub-licensees; and 

  

	 	(b)	(i) the gross amount invoiced by LEO or its Affiliates for any sale of any Licensed Product to Distributors, Authorized Wholesalers and other Third Parties in the Territory, less (ii) the following deductions only
to the extent they are (1) reasonably incurred and allocable to Licensed Products, (2) legally permitted, (3) directly paid or incurred by LEO or its Affiliates with respect to their sale of Licensed Products to Distributors,
Authorised Wholesalers or other Third Parties in the countries of the Territory where Commercialization is conducted by LEO, LEO Affiliates, Authorised Wholesalers or Distributors, and (4) not already included in any Permitted Deductions:

  

	 	(A)	[***]; 

  

	 	(B)	[***]; 

  

	 	(C)	[***]; 

  

	 	(D)	[***]; 

  

	 	(E)	[***]; and 

  

	 	(F)	freight, postage, shipping and insurance charges. 

  
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 The Net Sales and each component thereof shall be determined on an accrual and consolidated
basis in accordance with DK-GAAP. 
 The inter-company transfer of any Licensed Product by LEO or one of its Affiliates or sub-licensees to
that Party or another Affiliate or sub-licensee of that Party shall not be considered a sale. In such cases, Net Sales shall be determined based on the gross invoiced price of the Licensed Product sold by LEO, its Affiliate or sub-licensee to the
first Third Party purchaser less the deductions allowed under this definition. 
 Distribution of Licensed Products free of charge for, or
use of Licensed Products in, clinical or pre-clinical trials, samples or compassionate use shall not give rise to any deemed sale under this definition. 

“Non-Severable” means with respect to an Invention, that it is not severable from the KTI Patent Rights, meaning that the
exploitation of such Invention would infringe any KTI Patent Rights. 
 “Notifications” means all filings, notifications and
submissions other than Regulatory Approvals required by Law to Commercialize any of the Licensed Products in any country of the Territory. 

“Orphan Indications” means rare diseases in dermatology as generally recognized by the FDA (US) or EMA (Europe). 

“Out-of-Pocket Costs” means, with respect to any Party or any of its Affiliates, direct reasonable costs and expenses paid or
accrued as owing by such Party or any such Affiliate to Third Parties, other than employees or a contract sales force, without any mark-up or overhead allocation whatsoever. 

“Patent Rights” means any and all patent applications, patents and any foreign counterparts thereof, including all provisional
applications, divisions, renewals, continuations, continuations-in-part, extensions, reissues, re-examinations, substitutions, confirmations, registrations, revalidations and additions of or to them, as well as any supplementary protection
certificates or patent term extension, or like form of protection, whether on file with the appropriate governmental agencies in the Territory as of the Effective Date or at any time during the term of this Agreement. 

  
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 CONFIDENTIAL 
  

 “Permitted Deductions” means the sum of the following, determined on an
accrual and consolidated basis in accordance with DK-GAAP, for a given Quarter: 
  

	 	(a)	[***]; 

  

	 	(b)	[***]; 

  

	 	(c)	all of LEO’s Out-of-Pocket Costs incurred in relation to any Clinical Study of a Licensed Product; 

  

	 	(d)	FTE Costs, to the extent such FTE Costs are incurred with respect to medical writing, international clinical trial managers (ICTM), clinical trial associates/monitors (CRA) or clinical trial assistants (CTA), which
otherwise intended to be carried out by an external party in relation to any Clinical Study of a Licensed Product, would be more cost-effective to carry out utilizing internal costs, provided, however, that (i) the plan and budget therefore are
approved by the JSC, (ii) the FTE Costs accrued as a Permitted Deduction may not exceed [***]% of the total FTE Costs in connection with the Clinical Study and (iii) the FTE Costs accrued as a Permitted Deduction for the Acne Studies may
not exceed US$[***]; 

  

	 	(e)	any accumulated Loss Carry Forward from previous Quarters to the extent not previously applied against Net Sales; plus 

  

	 	(f)	any Out-of-Pocket Expenses incurred by LEO in [***] accordance with Clause 16.6 and Clause 16.10 and which are not reimbursed according to Clause 16.8. 

“Personal Information” means all personal information within the meaning of all applicable Data Protection Laws, and includes
any and all information that identifies or may identify any person afforded protection under the respective Data Protection Laws. 

  
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 “Platform Technology Patents” means the KTI Patent Rights other than the
Product Specific Patents. 
 “Premarketing Approval” or “PMA” means premarket approval (PMA) application
under section 814 of the FD&C Act in order to obtain marketing clearance in the US. 
 “Product Specific Patent” means
the Patent Rights of KTI from time to time whose claims are limited to any Licensed Product in the Field. 
 “Project
Manager” has the meaning set forth in Clause 4.9. 
 “Quarter” and its derivations mean each period of three
consecutive calendar months commencing on 1 January, 1 April, 1 July and 1 October of the relevant calendar year. 

“R&D Obligations” has the meaning set forth in Clause 28.2. 

“Regions” means the geographical regions of the Territory (including Canada if it becomes part of the Territory pursuant to
Clause 2.5), as broken down in Part A of Schedule 6 hereto. 
 “Regulatory Approval” means any approvals, certifications,
consents, permits, licences and other authorizations necessary or desirable (a) for the Commercialization of a Licensed Product on the market in a country in the Territory, including any CE mark, any 510(k), or PMA, or (b) the
Manufacturing of any Licensed Products. Regulatory Approvals shall exclude pricing approvals. 
 “Regulatory Authority”
means any national (e.g., FDA), supranational (e.g., the European Commission, the Council of the European Union, the European Medicines Agency), regional, state or local regulatory agency, department, bureau, commission, council or other
governmental entity in a given country or region in the Territory responsible for granting and administering any governmental approvals and Notifications (including as to price) necessary or desirable to Commercialize regulated products, in such
country or region. 

  
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 “Related Agreements” means any other agreements entered into between the
Parties and/or their respective Affiliates contemporaneously with, or during the term of, this Agreement in connection with the development, Manufacture and/or Commercialization of any Licensed Product in the Territory under this Agreement
including: 
  

	 	(a)	the Medical Device Incident Reporting and Post Marketing Surveillance Agreement and any other similar agreement required by Law; 

  

	 	(b)	the Clinical Supply Agreement entered into pursuant to Clause 8.3; 

  

	 	(c)	the Commercial Supply Agreement entered into pursuant to Clause 8.2; and 

  

	 	(d)	the Quality Agreement entered into pursuant to Clause 8.4. 

 “Sandoz Agreement”
shall have the meaning set out in Clause 2.5. 
 “Severable” means with respect to an Invention, that it is severable from
the KTI Patent Rights, meaning that the exploitation of such Invention would not infringe any KTI Patent Rights. 
 “Skin
Rejuvenation” means a process of reducing, diminishing, retarding or reversing one or more signs of skin aging or generally improving the condition of skin. For instance, skin rejuvenation may include increasing luminosity of the skin,
reducing pore size, reducing fine lines or wrinkles, improving thin and transparent skin, improving firmness, sagging skin (such as that produced by bone loss) or dry skin (which might itch), reducing or reversing freckles, reducing or preventing
the appearance of age spots, spider veins, rough and leathery skin, fine wrinkles that disappear when stretched, reducing loose skin or improving a blotchy complexion. 

“Soft Launch” has the meaning set forth in Clause 7.2. 

“Study Results” means all results, including data, reports and statistics pertaining to each Clinical Study conducted pursuant
to or in connection with a Development Project. 
 “Termination Date” means the effective date of expiration or earlier
termination (as applicable) of this Agreement pursuant to Article 18, either in whole or in part, as set forth in Article 18. 

  
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 “Territory” means the whole world except, subject to the terms of Clause
2.5, for Canada. 
 “Third Party” means any entity or person other than the Parties or their respective Affiliates. 

“TPP” has the meaning set forth in Clause 5.3(a)(ii). 

“Valuator” has the meaning set forth in Clause 18.7(a). 

1.2 Interpretation. In this Agreement: 
  

	 	(a)	all references to a particular article, clause or schedule shall be a reference to that article, clause or schedule in or to this Agreement as it may be amended from time to time pursuant to this Agreement;

  

	 	(b)	the headings are inserted for convenience only and shall be ignored in construing this Agreement; 

  

	 	(c)	words importing the masculine gender shall include the feminine and vice versa and words in the singular include the plural and vice versa; 

 

	 	(d)	words denoting persons shall include any individual, partnership, company, corporation, joint venture, trust association, organisation or other entity, in each case whether or not having separate legal personality;

  

	 	(e)	the words “include”, “included” and “including” are to be construed without limitation to the generality of the preceding words; 

 

	 	(f)	reference to any Law includes any modification, re-enactment or replacement of that Law; and 

  

	 	(g)	all references in this Agreement to “by or on behalf of a Party and/or any of its Affiliates” and correlative expressions in reference to a specific Party, includes any work performed or generated by any and
all Agents, licensees and sub-licensees of the Party in question and of each of its Affiliates. 

  
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 1.3 Paramountcy. In the event of any inconsistency or conflict between this Agreement
and any of the Schedules, this Agreement shall prevail. In the event or any discrepancy or contradiction between this Agreement and any Related Agreement, save where expressly provided, this Agreement shall take precedence. 

2. GRANT OF RIGHTS 
 2.1 Licence to LEO
to Commercialize Licensed Products in the Territory. Subject to the terms of this Agreement, KTI hereby grants the following licenses to LEO: 
  

	 	(a)	an exclusive license under the Licensed Technology to Commercialize the Licensed Products in the Territory in the Field; 

  

	 	(b)	a non-exclusive licence under the Licensed Technology to conduct development activities to improve already Commercialized or Manufactured Licensed Products and Manufacturing processes related thereto and to Manufacture
Licensed Products in the Field in the entire world; however in Canada such Manufacturing license shall be subject to involvement of KTI to avoid any conflict with any Sandoz Agreement; 

 

	 	(c)	an exclusive license under the Licensed Technology to file Notifications and seek and obtain Regulatory Approval to Commercialize Licensed Products in the Field in the Territory; provided, however in Europe such license
would be co-exclusive (due to the CE certification already obtained by KTI for the First Licensed Product); and 

  

	 	(d)	[***] license [***] under the Licensed Technology for any ideation, research and development activities in the Field undertaken by LEO pursuant to this Agreement. 

2.2 KTI Regulatory Approval and Notification. It is acknowledged that KTI as of the Effective Date holds the KTI CE Mark, a medical
license for the First Licensed Product in Canada and has filed Notifications, or is in good regulatory standing, as a cosmetic for certain countries and shall not be in breach of the exclusivity provided for in Clause 2.1 simply by virtue of the
foregoing, provided that KTI does not use such KTI CE Mark, medical license 

  
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or Notification, or any product bearing the KTI CE Mark in the Field in the Territory, for any purpose other than to comply with its obligations in this Agreement or any Related Agreement and
provided that KTI does not use the medical license or Notification for Canada except in connection with the Sandoz Agreement. 
 2.3
Trade Mark Licence. Subject to Clause 2.4, Article 17 and the other terms of this Agreement, KTI hereby grants the following licenses to LEO: 
  

	 	(a)	[***] licence in the Territory with the right to sub-license in LEO’s discretion, to use the KTI Trade Marks in relation to or to affix the KTI Trade Marks to any Licensed Product for use in the Field in the
Territory; and 

  

	 	(b)	[***] licence in the Territory with the right to sub-license in LEO’s discretion, to use the KTI House Marks in relation to or to affix the KTI House Marks to any Licensed Product for use in the Field in the
Territory. 

 2.4 Sub-license Rights. 
  

	 	(a)	LEO shall have the right to sub-license any of the licences and other rights granted under Clauses 2.1 and 2.3. 

  

	 	(i)	without the prior written consent of KTI where the sub-licence is granted to an Affiliate of LEO, an Authorized Wholesaler or a Distributor outside the Major Markets, 

 

	 	(ii)	with the prior written consent of KTI [***] where the sub-license is granted to a Distributor (other than a Distributor listed in Schedule 7), in a Major Market; and 

 

	 	(iii)	with the prior written consent of KTI [***] where the sub-license granted is granted to a LEO Sub-licensee. 

  
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	 	(b)	Each sub-license by LEO to an Affiliate shall terminate automatically if such Affiliate ceases to be an Affiliate of LEO. 

  

	 	(c)	Each sub-license right that LEO grants hereunder shall be consistent with the terms and conditions of this Agreement, including Clause 15.5, and shall not relieve LEO of its obligations hereunder or under the Related
Agreements. 

  

	 	(d)	Each sub-license under this Clause 2.4 shall automatically terminate upon termination of this Agreement unless the survival has been expressly approved by KTI in connection with the consent provided according to this
Clause 2.4. 

  

	 	(e)	In case that the sub-licensing requires prior written consent, LEO shall inform KTI in writing of the name of the relevant Sub-licensee or Distributor together with the description of the rights granted, the Licensed
Products concerned therewith, the relevant territory of such sub-license and all other relevant information reasonably requested by KTI. KTI agrees that all information provided pursuant to this Clause 2.4(e) shall, subject to Clause 20.4, be deemed
to be Confidential Information of LEO and will be subject to the terms set forth in Article 20 below. 

  

	 	(f)	LEO shall use Commercial Reasonable Efforts to ensure that each such LEO Sub-licensee, Affiliate and Distributor possesses the necessary skill and experience to enable it to perform the obligations sub-licensed and does
in fact perform such obligations in accordance with the terms and conditions of this Agreement. 

  

	 	(g)	Notwithstanding the foregoing, LEO may within the confines of the license granted in Clause 2.1 sub-contract any development and Manufacturing activities as part of its general outsourcing activities to sub-contractors on a fee-for-hire basis without the need for the prior written consent of KTI. 

2.5 Canada. In the event that any rights to Commercialize Licensed Products in Canada revert to KTI as a consequence of the amendment,
expiry or termination of the agreement between KTI and Sandoz Canada Inc. dated November 13, 2013 (as amended from time to time, the “Sandoz Agreement”), such rights in Canada shall automatically be included in the scope of the
licences granted in Article 2 and the other rights granted in this Agreement and 

  
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the definition of the Territory shall be amended such that it is worldwide. For the sake of clarity, upon inclusion of Canada in the Territory, LEO does not accept any responsibility or liability
whatsoever, whether direct or indirect, for any actions or omission by Sandoz or KTI prior to such inclusion. 
 2.6 Licence to KTI for
Inventions. Subject to any contractual restrictions binding on LEO as a result of the development thereof and the provisions of Article 19, LEO hereby grants to KTI a non-exclusive, worldwide, irrevocable (except as contemplated in the third
sentence of this Clause 2.6 and Article 19), royalty-free, fully paid-up, sublicensable (subject to LEO prior written consent[***]) licence under any and all LEO Inventions and of any and all rights of LEO in and to any and all Joint Inventions (the
“LEO Licence”) to research and develop, Manufacture and have Manufactured, and Commercialize and have Commercialized products anywhere in the world solely in the KTI Field, provided always that KTI undertakes not to use the LEO
Licence in the development, Manufacture or Commercialization of products in the Field (other than for the purposes of this Agreement and the Related Agreements). If LEO [***] that KTI or an Affiliate of KTI or a licensee of KTI is using the LEO
Licence in the development, Manufacture or Commercialization of products in the Field (other than for the purposes of this Agreement and the Related Agreements) it shall notify KTI of the fact and KTI shall cease and procure that its Affiliates and
licensees cease such use. In the event of serious or persistent breaches of this limitation, LEO shall be entitled by [***] written notice to revoke the licence granted in this Clause 2.6 and to seek remedies under this Agreement and applicable Law.
For greater certainty, subject to the rights granted herein to LEO, nothing herein shall limit the right of KTI to conduct research and development with respect to any product, including any Licensed Product, within or outside the Field. 

2.7 License to KTI. Subject to any contractual restrictions binding on LEO as a result of the development thereof, LEO hereby grants to
KTI a right of first option for a non-exclusive, worldwide, royalty-bearing sublicensable (subject to LEO prior written consent) licence under any LEO Invention and LEO Background Technology (however, the latter solely to the extent that it is
included in a non-severable way in a LEO Invention or Joint Invention to ensure that KTI can exercise the license to be granted under this Clause), upon terms and conditions to be negotiated in good faith between the Parties, to research and
develop, Manufacture and have Manufactured, Commercialize and have Commercialized Licensed Products anywhere in the world solely outside the Field and KTI Field. 

  
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 3. EXCLUSIVITY AND RELATED RIGHTS 

3.1 KTI Exclusivity. 
  

	 	(a)	During the term of this Agreement and except as contemplated by the Commercial Supply Agreement, KTI shall not, itself or with any Third Party develop, directly or indirectly, Manufacture or Commercialize (neither
passively, to the extent permissible by Law, nor actively) any Licensed Products or Competing Products in the Field in the Territory and KTI shall not license or grant any rights to any Third Party to do any of the foregoing, except for the purposes
of this Agreement or any Related Agreement, as expressly set forth herein or therein. 

  

	 	(b)	To the extent that KTI packages, Commercializes or supplies any product for use in relation to any Aesthetic Condition outside the Field it shall: 

 

	 	(i)	provide prior timely written notification thereof to LEO, including reasonable proof to ensure compliance with the remaining provisions of this Clause 3.1 (b); 

 

	 	(ii)	ensure that such product does not bear any KTI Trade Mark or LEO Trade Mark or any other reference to LEO except, where LEO is the manufacturer of such product, to the extent required under applicable Law;

  

	 	(iii)	ensure that such product is Commercialized under a trade mark that is sufficiently distinct from the LEO Trade Marks and KTI Trade Marks such that there is no prospect of confusion between the relevant marks; and

  

	 	(iv)	not package, Commercialize or supply any such product that utilizes any Regulatory Approval or Notification obtained or filed by LEO with respect to a Licensed Product. 

  
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	 	(c)	KTI shall not and shall ensure that none of its Affiliates communicates or otherwise provides or makes available to Sandoz Canada Inc. or any of its Affiliates any LEO Technology, Joint Technology and LEO Confidential
Information. 

  

	 	(d)	KTI acknowledges the value it is gaining through access to LEO’s participation in the JV Business, access to LEO’s distribution channels, access to LEO’s Technology and the profit share from LEO for
Commercializing the Licensed Products and that the restrictions set out above are fair and reasonable. 

 3.2 LEO
Exclusivity. 
  

	 	(a)	During the term of this Agreement, LEO shall not and shall ensure that each LEO Affiliate and LEO Sub-licensee does not, directly or indirectly, conduct any research or development activities in connection with any
Competing Product or develop, Manufacture or Commercialize any Competing Products in the Field anywhere in the world, either by itself or through any LEO Affiliate or Third Parties. 

 

	 	(b)	LEO shall not and shall ensure that each LEO Affiliate and LEO Sub-licensee does not, directly or indirectly, conduct any research or development activities in connection with any Competing Product or develop,
Manufacture or Commercialize any Competing Products, in the KTI Field or Orphan Indications anywhere in the world, either by itself, any LEO Affiliate or any Third Party for a period of five (5) years from the Effective Date. 

 

	 	(c)	LEO shall not and shall ensure that each LEO Affiliate and LEO Sub-licensee does not, directly or indirectly, knowingly actively Commercialize any Licensed Product outside of the Territory or sub-license any rights to
any Licensed Product for use outside the Territory. LEO shall, to the extent legally permitted, refer to KTI all written inquiries received by it in connection with the Commercialization of any Licensed Product outside the Territory.

  

	 	(d)	LEO shall not conduct any research and development activities with respect to the Licensed Products, except for ideation, research and development activities within the Field pursuant to or in connection with the terms
and conditions of this Agreement or any Related Agreement. 

  
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	 	(e)	LEO shall not and shall ensure that each LEO Affiliate and LEO Sub-licensee does not, directly or indirectly, knowingly Commercialize any Licensed Product outside the Field or sub-license any rights to or Commercialize
or otherwise make available any Licensed Product for use outside the Field and LEO shall, to the extent legally permitted, refer to KTI all written inquiries received by it in connection with the Commercialization of any Licensed Product outside the
Field. 

  

	 	(f)	LEO shall use commercially reasonable efforts consistent with its ordinary course of business with respect to its other products to ensure that its Distributors also comply with Clauses 3.2 (a), (c) and
(e) (except for “or indirectly”) provided, however, that LEO shall not be obligated to enforce higher standards than those LEO applies with respect to its other products. 

 

	 	(g)	LEO acknowledges the value it is gaining through access to the KTI Technology and right to Commercialize the Licensed Products and that the restrictions set out above are fair and reasonable. 

3.3 Exclusions. The non-compete obligations set forth in this Article 3 shall not apply in any country with respect to any product
which is a Competing Product or any product competing with a Licensed Product that cannot legally be Commercialized in such country. For the purpose of this Clause 3.3, the fact that a Regulatory Approval has not been obtained despite commercially
reasonable efforts or a Notification has not yet been filed in order to market a Licensed Product in a country does not in and of itself mean it “cannot legally be Commercialized” unless there is a legal impediment with respect thereto
that cannot be overcome in the ordinary course of business. 
 3.4 Possible Expansion of the KTI Field. In the event that KTI wishes
to expand the definition of the KTI Field for the purpose of licenses granted to KTI pursuant to Clause 2.7, the non-compete obligations contemplated under Clause 3.2 and the opportunity contemplated by Clause 3.7, to include a field other than the
Field and the then current KTI Field, then it shall notify LEO in writing of its desire to expand the KTI Field with sufficient detail 

  
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for LEO to make an informed view of the scope being requested by KTI and its potential impact on LEO’s rights hereunder and the best interests of the JV Business. On receipt of such notice
the Parties will in good faith negotiate potential expansions of the KTI Field, provided that such an expansion will not have any adverse impact on the Commercializing of Licensed Products by LEO and will report their findings to the JSC for
discussion and approval. To the extent the JSC and the Parties are unable to reach an agreement with respect to such expansion, then either Party may elect, by written notice to the other Party (the “Dispute Notice”) to have such
decision resolved by an Expert pursuant to Clause 37.3, whose decision with respect thereto shall be final and binding upon the Parties. Furthermore for sake of clarity, nothing in this clause or any subsequent negotiations, agreements or
determination by the Expert shall operate to reduce the scope of the Field or the exclusivity of the licences granted to LEO hereunder. 

3.5 Reserved Rights. Except for those rights expressly granted to LEO hereunder, all rights, express or implicit, with respect to the
Licensed Technology belong exclusively to KTI. Without limiting the generality of the foregoing, nothing herein shall limit or restrict KTI’s right to directly or indirectly: 

 

	 	(a)	complete trials or conduct research and development with respect to Licensed Products outside the Field subject to the obligations set forth in Clause 3.5(c)(ii) or within the Field pursuant to Clause 5.6;

  

	 	(b)	enhance and improve the Licensed Products; 

  

	 	(c)	develop, Manufacture, license or Commercialize (i) any Competing Product or other product in a field other than the Field, in or outside the Territory or (ii) any product which is the same as or is similar to
a Licensed Product outside the Field, in or outside the Territory, to the extent it does not contain any LEO Technology, LEO Trade Mark, LEO CE-Mark or any other reference to LEO, any LEO Affiliate, Distributor, LEO Sub-licensee or Authorized
Wholesaler, and provided that it has a different product appearance and, preferably (but without any legal obligation) contains a different Biophotonic Formulation than that used in such Licensed Product; 

 

	 	(d)	develop, Manufacture, license or Commercialize the First Licensed Products in the Field outside the Territory; or 

  
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	 	(e)	Manufacture any Licensed Product in the Territory solely to the extent the Commercialization thereof is solely outside the Territory; 

provided that KTI with respect to (a) to (d) does not use or utilize, directly or indirectly, any LEO Confidential Information or LEO Technology and
with respect to (d) does not use or utilize, directly or indirectly, any Joint Technology, except to the extent expressly permitted pursuant to this Agreement. 

3.6 LEO Complementary Products. Notwithstanding anything to the contrary of the above but subject to Article 20, LEO shall not be
limited in any way or form in its ability to research and develop, Manufacture or Commercialize any product, which would otherwise be considered Competing Products where such product: 

 

	 	(a)	[***]; or 

  

	 	(b)	is for indications where Licensed Products, supported by a sound scientific rationale and as agreed to by the Parties, would not have a significant benefit [***]; or 

 

	 	(c)	[***]. 

 3.7 Opportunities. Notwithstanding anything to the contrary, not earlier than
[***] from the Effective Date, should LEO identify partner/acquisition opportunities with respect to a Competing Product that is believed to add synergies and would not have any material adverse effect on the Commercialization of any Licensed
Product, LEO shall invite KTI to participate in the investment into such opportunities. KTI shall have a maximum of [***] from receipt of such invitation from LEO (together with all information in LEO’s possession relevant thereto) to confirm
its interest in participating in such opportunity and LEO shall not enter into any binding agreement (other than a confidentiality agreement) with respect to such opportunity prior to the expiration of said notice period. In the event KTI is
interested in participating in the opportunity, the Parties shall aim at getting access to all applicable fields for KTI and LEO, where KTI shall be free to exploit the opportunity in the KTI Field and the Orphan Indications and LEO shall be free to
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side the KTI Field. In the event that KTI does participate in the investment, LEO shall pay to KTI [***], taking into account KTI’s proportionate investment in the opportunity, subject to
terms and conditions to be negotiated at the time of the investment. However should opportunities be identified by LEO within the first [***] of the Effective Date the Parties shall in good faith discuss these at the JSC and if the Parties do not
agree on KTI’s participation, LEO shall have no right to invest or otherwise participate in such opportunity. 
 3.8 Notification
and Enforcement. Each Party shall notify the other Party immediately upon becoming aware of any violation, contravention or breach by it or its Affiliates of any provisions of this Article 3. The Parties shall, at their own expense, take all
such actions, including legal proceedings, as may be necessary or desirable to prevent any violation, contravention or breach of this Article 3. The Parties acknowledge and agree that irreparable harm may be suffered upon the breach of any of the
obligations set out in this Article 3 and that monetary damages may be inadequate compensation. Accordingly, the Parties agree that, in the event of a breach or threatened breach by the other Party, as the case may be, of this Article 3 and
notwithstanding anything else to the contrary stated herein, the affected Party shall be entitled to seek an interim injunction, interlocutory injunction and permanent injunction for the purposes of preventing or restraining any such breach, without
limiting the right of such Party to pursue any and all other legal or equitable remedies available to it. 
 4. MANAGEMENT OF THE RELATIONSHIP 

4.1 The Joint Steering Committee. On or within [***] after the Effective Date, the Parties shall establish a joint steering committee
(the “Joint Steering Committee” or “JSC”) to oversee and manage the relationship between the Parties. In particular, the JSC shall be responsible for: 

 

	 	(a)	providing a forum for addressing strategic issues of the JV Business and holding discussions between the Parties related to the ideation, research, development and Commercialization of Licensed Products in the
Territory, including, subject to reasonable restrictions to preserve solicitor-client privilege, Intellectual Property or Know-How matters relating to the JV Business; 

  
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	 	(b)	the review and pre-approval of Ideas for new Development Projects as well as final approval and prioritization of Development Projects and Development Budgets in accordance with Clause 5.2(a) provided, however, that no
Invention covered by clause (b) of the definition LEO Background Technology will be included in or form part of any Development Project or Development Plan without the express prior written approval of both Parties; 

 

	 	(c)	the review and approval of each Development Plan, including review and approval of any substantial amendments hereof; 

  

	 	(d)	the review of the progress of each Development Project against its Development Plan (including the applicable Development Budget); 

  

	 	(e)	the review and coordination of branding strategies, commercial positioning and guidelines for each Licensed Product and for the platform of Biophotonic technology development by KTI in general; 

 

	 	(f)	the review of each Annual Marketing Plan and monitoring performance of, and variances with, each Annual Marketing Plan, unless a JMCC has been established according to Clause 4.5 below, in which case the JSC shall only
review and discuss any matters escalated by the JMCC to the JSC according to Clause 4.5 below; 

  

	 	(g)	the review of regulatory plans for filing Notifications or obtaining and maintaining Regulatory Approvals for each Licensed Product; 

 

	 	(h)	discussing and attempting to resolve any deadlock issues arising within the JSC or notified to the JSC or submitted to it by any Subcommittee, Project Manager or Alliance Manager; 

 

	 	(i)	addressing issues arising from Medical Device Incidents or from Post Market Surveillance relating to Licensed Products (provided that representatives of each Party representing clinical development and vigilance may
participate in these matters to provide guidance to the JSC); and 

  
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	 	(j)	such other responsibilities as may be assigned to the JSC pursuant to this Agreement or any Development Plan or as may be mutually agreed upon by the Parties from time to time; provided, however that the JSC shall not
have the power to amend or modify this Agreement. 

 4.2 Limitations. The JSC shall have no authority to act on behalf
of each Party or any of its Affiliates in connection with Third Parties, including to: (a) negotiate agreements on behalf of a Party or its Affiliates; (b) make representations or warranties on behalf of a Party or its Affiliates;
(c) waive rights of a Party or its Affiliates; (d) take or grant licenses of Intellectual Property or Know-How on behalf of a Party or its Affiliates; (e) require a Party to perform activities which such Party has not agreed to
perform as set forth in this Agreement (or any Related Agreement) or otherwise agreed by such Party; (f) unilaterally amend the terms of this Agreement (or any Related Agreement) or override a Party’s rights therein; or (g) exercise
its decision-making authority in a manner that would require a Party to perform any act that it reasonably believes to be inconsistent with applicable Law or this Agreement (or any Related Agreement). 

4.3 Membership and Governance. 
  

	 	(a)	The JSC shall comprise [***] members (the “Members”), with KTI appointing [***] Members and LEO appointing [***] Members as their respective representatives on the JSC. Each Party shall confirm in
writing the identity of the initial Members of the Joint Steering Committee on or within [***] of the Effective Date. Each Party shall have the right, subject to having informed the other Party sufficiently in advance and having considered any
reasonable representations of the other Party, to invite on an ad-hoc basis additional representatives to provide information and additional expertise to the JSC [***]. 

 

	 	(b)	 It is the intent that the JSC shall provide continuity for the relationship between KTI and LEO and consequently each Party shall use its reasonable
endeavours to ensure that (subject to the individuals being employees of the appointing Party) its Members of the JSC (i) remain in place for a minimum term of [***], and (ii) that not all of its Members are changed at the same

  
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time. Notwithstanding the foregoing, each Party shall be entitled to remove any Member appointed by it and to appoint any person with similar experience and qualifications to fill the vacancy
arising from the removal or retirement of such Member. Each Party shall give the other Party prior written notice of any changes in the identity of its Members. The Parties shall ensure that all of their appointed Members are of a suitable level of
expertise and seniority to deal with the issues that may arise in connection with matters to be considered by the JSC. 

  

	 	(c)	The JSC and each of its subcommittees shall exercise its authority in good faith and in accordance with the terms of this Agreement and each applicable Related Agreement, taking into account Commercially Reasonable
Principles. 

  

	 	(d)	In addition to the subcommittees contemplated below, from time to time, the JSC may establish one or more subcommittees to oversee particular projects or activities related to this Agreement, and such subcommittees will
be constituted as the JSC agrees. Even though the Parties acknowledge the need for continuity, they may replace their respective subcommittee representatives at any time, with prior written notice to the other Party. It is the Party’s
responsibility to ensure knowledge transfer to any new representative to ensure the continuance of the subcommittees activities. Any such sub-committee shall be run on the same basis as the JSC (including as governance, quorum, etc. but with no
right to establish sub-subcommittees), save that any issue within the purview of such a subcommittee that is not settled or determined by the applicable subcommittee shall be submitted to the Alliance Managers for resolution. The chair of each
subcommittee shall, on an as-needed-basis or if requested, report on such subcommittee efforts at relevant JSC meetings, and either Party may invite its own representatives on such subcommittee to also report on such efforts. 

4.4 Scientific Subcommittee. Promptly after the first JSC meeting the Parties shall establish a Joint Scientific Subcommittee (a
“JSS”) to consider new proposals for potential Development Projects (including pursuant to Clause 5.2(a)) and oversee the scientific issues and strategies relating to the research and development of Licensed Products. The JSS shall

  
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be comprised of [***] qualified representatives (or such other number of representatives as the Parties may agree) from each of LEO and KTI. The JSS will report to the JSC via the Alliance
Managers unless specifically requested otherwise. The role of the JSS shall be to advise the Alliance Managers and the JSC and no decisions relating to the ideation, research development of Licensed Products shall be taken by the JSS unless the JSC
specifically authorises the JSS to decide a particular matter. The Parties may agree to dissolve the JSS by mutual agreement and transfer such JSS’ responsibilities back to the JSC. 

4.5 Manufacturing and Commercialization Committee. Promptly after the first JSC meeting the Parties shall establish a Joint
Manufacturing and Commercialization Committee (a “JMCC”) to facilitate the exchange of experience, input and feedback with respect to Manufacturing and Commercialization activities in relation to Licensed Products (with an initial
emphasis on the First Licensed Products), including the review of the manufacturing options and Commercialization strategies of LEO hereunder. In addition, the JMCC shall be responsible for reviewing each Annual Marketing Plan. The JMCC shall be
comprised of [***] qualified representatives (or such other number of representatives as the Parties may agree) from each of LEO and KTI. The JMCC does not have any decision power and shall respect the responsibility of LEO for the Manufacturing and
Commercialization of Licensed Products pursuant to the Agreement. Possible concerns regarding Manufacturing and Commercialization shall be reported to the JSC via the Alliance Managers. The Parties may agree to dissolve a JMCC by mutual agreement
and transfer such JMCC’s responsibilities back to the JSC. 
 4.6 JSC Meetings. 

 

	 	(a)	At least [***] prior to each regularly scheduled meeting of the JSC, written notice shall be given to each Member by the Party convening the meeting and at least [***] prior to each such meeting, each Party shall
provide to the Alliance Managers all written information to be disclosed including any update to each Development Plan. In addition, special meetings of the JSC may be called on not less than [***] notice by any Member upon written request to the
then current Alliance Managers. Such notices may be given by email. 

  
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	 	(b)	The JSC shall have its first meeting within [***] after the Effective Date, and thereafter shall hold [***] meetings. The venue for the first meeting of the JSC shall be at KTI’s facilities in Canada, unless
otherwise agreed by the Members. Thereafter, the venue for each meeting of the JSC shall alternate between LEO facilities in Copenhagen and KTI’s facilities in Canada, or such other locations as may be agreed upon by the Members. Except for the
first meeting of the JSC which shall be a face-to-face meeting, meetings of the JSC may be held as a teleconference or video conference, provided that the JSC shall hold at least one face-to-face meeting during each calendar year. 

4.7 JSC Decision Making. All decisions by the JSC shall be made by unanimous vote of a quorum of the Members, with each Member of KTI
and LEO having one (1) vote. The presence of at least [***] Members of the JSC representing each of KTI and LEO shall constitute a quorum. The Members shall use their reasonable efforts to reach agreement on any and all matters to be determined
or resolved by the JSC. 
 4.8 Coordination. The Alliance Managers shall organise the meetings of the JSC and set the final meeting
agendas for the JSC provided that the agenda shall include any matter that either Party requests to be included. Such agendas and all documentation and presentations to be presented or discussed at the meeting shall be circulated to all Members at
least [***] prior to the date of the relevant meeting. The Alliance Managers shall be responsible for recording, preparing and [***] issuing draft minutes of the JSC meetings (which may be issued by email), which draft minutes shall be reviewed,
modified and approved in writing by the Members. In the event that a Member does not approve or submit comments on or any proposed modifications to the minutes within [***] of their receipt by him, he shall be deemed to have approved such minutes.
Upon request, the Alliance Managers shall also support the arrangement of subcommittee meetings. 

  
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 4.9 Project Manager. In addition to the JSC, each Party shall, for each Development
Project, unless otherwise agreed, appoint a project manager (each, a “Project Manager”) who shall jointly: 
  

	 	(a)	establish a joint project coordination team consisting of members from each Party, as applicable, reflecting the competencies relevant and reasonable for the respective Development Project; 

 

	 	(b)	coordinate/overview the day-to-day research and development activities and facilitate knowledge sharing; 

  

	 	(c)	provide updates to the Alliance Managers on the progress and results of the Development Project; 

  

	 	(d)	hold periodic meetings [***] by teleconference, videoconference or face-to-face, to review and discuss the data and results from the Development Project to which they are assigned; 

 

	 	(e)	allocate project tasks in accordance with the Development Plan; 

  

	 	(f)	subject to Clause 4.1(b), notify and advise the Alliance Managers of any potential Inventions which may arise from the Development Project and facilitate the protection and registration, if any, according to this
Agreement; 

  

	 	(g)	make recommendations to the JSC via the Alliance Managers concerning changes to the Development Plans and other matters affecting the Development Projects; 

 

	 	(h)	facilitate the transition of Development Project to LEO for Commercialization; and 

  

	 	(i)	inform the JSC via the Alliance Managers of any disagreement among the Project Managers or project team members with regard to any matter requiring a decision and affecting the progress of the projects in order that the
JSC may discuss and decide on the matter. 

 4.10 Decision Making. The Project Managers shall seek to operate by a
consensus, and shall via the Alliance Managers refer to the JSC any dispute which they cannot resolve. The Project Managers cannot overrule any decisions made by the JSC. Reasonably detailed minutes of all meetings of the Project Managers/joint
project team shall be prepared by the Project Managers and transmitted to the Alliance Managers for review and, to the extent required 

  
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pursuant to Clause 4.9(i), to the JSC for approval. Upon completion of the transition of the Development Project to LEO, the Project Managers’ and joint project team’s duties shall
terminate. 
 4.11 Alliance Managers. 
  

	 	(a)	Each Party shall appoint one (1) alliance manager (each, an “Alliance Manager”) to serve as the point person for communication between the Parties on operational matters arising under
this Agreement. 

  

	 	(b)	Each Alliance Manager shall be primarily responsible for facilitating the flow of information and otherwise promoting communication and collaboration between the Parties, Project Managers, sub-committees and internally
within the Parties. 

  

	 	(c)	It is the intent that the Alliance Managers shall provide continuity for the relationship between KTI and LEO and consequently each Party shall use its reasonable endeavours to ensure that (subject to the individuals
being employees of the appointing Party) its Alliance Manager shall remain in place for a minimum term of [***]. 

  

	 	(d)	Each Alliance Manager shall also be responsible for: 

  

	 	(i)	facilitating coordination among the various functional representatives of KTI or LEO, as appropriate; 

  

	 	(ii)	preparing the information that is required by the JSC with required assistance from the Project Managers, including updates on the progress of each Development Plan and each update thereof; and 

 

	 	(iii)	providing single-point communication for seeking consensus, including facilitating review of external corporate communications pursuant to Article 32. 

 

	 	(e)	Any disagreement among the Alliance Managers shall be referred to the JSC. 

  
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 4.12 Dispute Resolution by Executive Officers. If the JSC is unable to reach a
consensus decision within [***] (or sooner if required) after it has been seized of any matter in dispute in person and attempted to reach such decision, then either Party may, by written notice to the other, have such decision referred to the
Executive Officers pursuant to Clause 37.2. If the Executive Officers are unable to determine a resolution in a timely manner, which shall in no case be more than [***] after the decision was referred to them, the decision shall be dealt with in
accordance with Clause 4.13 or 4.14 as appropriate, subject, however, to Clause 4.16. 
 4.13 KTI Final Decision Making. Subject to
Clauses 4.12, 4.15 and 4.16 and Article 18, KTI shall have the final decision-making authority over the following: 
  

	 	(a)	Subject to Clauses 4.1(b), Article 5, Article 15 and Article 16, any issue which affects or is likely to affect any KTI Patent Rights; and 

 

	 	(b)	Research and pre-clinical development; any scientific issue related to a Development Project. 

4.14 LEO Final Decision Making. Subject to Clauses 4.12, 4.15 and 4.16 and Article 18, LEO shall have final decision-making authority
over the following: 
  

	 	(a)	Subject to Clause 4.1(b), Article 5, Article 15 and Article 16, to any issues which affects or is likely to affect LEO Inventions, LEO Know-How and Product Specific Patents ; 

 

	 	(b)	Regulatory issues; 

  

	 	(c)	Clinical issues; 

  

	 	(d)	Manufacturing issues; and 

  

	 	(e)	Commercialization issues. 

 4.15 No Prejudice. No decision by any Party under 4.13 or
4.14 shall prejudice any rights the other Party may have with respect thereto. 

  
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 4.16 Expert. Notwithstanding Clauses 4.13 and 4.14, in the event KTI or LEO exercises
its discretion pursuant to Clause 4.13 or 4.14, as applicable, in a manner which the other Party, acting reasonably, is of the opinion that it is not in the best interests of the JV Business then such Party shall provide to the other Party a written
notice in this respect documenting in reasonable detail the reasons for such assertion and if the Parties do not resolve their differences with respect thereto within [***] of delivery of such notice, then the Party that did not exercise such
discretion may elect by written notice to the other Party (the “Dispute Notice”) to have the decision(s) being the object of such discretion resolved by the Expert pursuant to Clause 37.3. 

4.17 Cost for Governance of JV Business. Each Party shall [***] cost with respect to participation in and, as applicable for hosting
of, JSC and sub-committee meetings and the performance of other governance activities of the JV Business, such as the activities set forth in this Article 4. 

5. DEVELOPMENT OF LICENSED PRODUCTS 
 5.1
Collaboration. 
  

	 	(a)	The objective of the JV Business is to explore the further development and Commercialization of Biophotonic treatments and Licensed Products within the Field and Territory subject to the processes as set forth in this
Article 5. In addition to the activities supporting the preparation of the Commercialization of the First Licensed Product, it is the Parties’ intention to advance at least one Development Project covering a new Licensed Product to a stage
where the Development Project has shown proof of principle and is ready for further clinical testing following at a reasonable time after completion of the Acne Studies. 

 

	 	(b)	It is the understanding of the Parties that the JV Business is subject to Commercially Reasonable Principles; provided that these principles shall not be used as a reason for postponing clinical development of said
Development Project for an unreasonable period of time if JSC has otherwise endorsed the Development Project as being ready for clinical testing and shall not prohibit any Party from electing to escalate disputes and have them settled through the
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 5.2 Collaboration Phases. The Parties shall develop Licensed Products using a stage
gate model with three (3) main phases as appropriate: 1) Ideation; 2) Research and development; and 3) Commercialization, the whole in accordance with the following principles: 

 

	 	(a)	Phase 1 (Ideation): 

  

	 	(i)	In phase 1 (Ideation) the Parties shall gather and evaluate ideas for new Licensed Products, improvements of existing Licensed Products or new indications. Any idea (each an “Idea”) shall be described
in sufficient detail, including but not limited to the scientific and commercial rationale, to be submitted to the JSS for initial consideration. If the JSS decides to support an Idea, the JSS shall forward the Idea, together with all relevant data,
studies and reports, to the JSC for pre-evaluation. In case of a pre-approval by the JSC, a proposal for a Development Project and a Development Budget shall be drafted describing the research and development activities and other activities required
until Regulatory Approval is obtained. The proposal shall be submitted to the JSS for review and if endorsed by JSS, forwarded to the JSC for review and approval. 

 

	 	(ii)	Upon approval of the proposal by the JSC, the Idea shall be prioritized taking into consideration Commercially Reasonable Principles, and already approved and/or on-going Development Projects and the Collaboration
Budget. If prioritized by the JSC for project initiation, the Idea becomes a Development Project, Project Managers shall be appointed and the Parties shall jointly prepare a final Development Plan including Development Budget therefor for final
approval by the JSC. 

  

	 	(iii)	The JSC shall also be allowed to determine that such an endorsed Idea should not be prioritized and become the subject of a Development Plan at such point in time, but should be reserved for later use by the JV
Business, subject, however, to a Party, acting reasonably and in good faith and taking into account the current Collaboration Budget, resubmitting such idea (including a written substantiation of the reason for re-submission) for Phase 1 (Ideation)
analysis and review at any subsequent JSC meeting subject to the process set forth in i) and ii). 

  
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	 	(iv)	In the event an Idea is not endorsed by the JSS but a Party wishes nevertheless to conduct research and/or development with respect thereto, the Idea (including a proposal for a Development Project and a Development
Budget and a substantiation of the rationale for re-submission without JSS endorsement) may be submitted to the JSC for review and pre-evaluation. 

  

	 	(v)	 If an Idea is not endorsed by the JSC or has not been prioritised by the JSC to be conducted within a reasonable period of time [***] after having
been resubmitted to JSC according to Clause 5.2(a)(iv), then either Party may elect to have the matter resolved pursuant to Clause 37.2 and if the Executive Officers are unable to resolve the dispute within the delay provided, either Party may then
elect by written notice to the other Party (the “Dispute Notice”) to have the dispute resolved by the Expert pursuant to Clause 37.3. If such dispute is submitted to the Expert, then if the Expert determines that the Idea
appears to be commercially viable for, and should not have a materially adverse impact on, the JV Business taking into consideration already approved and/or on-going Development Projects, the Collaboration Budget, already Commercialised Licensed
Products, and such other factors as may be relevant to assess the best interest of the JV Business, taken as a whole, then the Expert shall prioritize such Idea relative to other already endorsed and prioritised Ideas (however not having the mandate
to change the prioritization of already initiated Development Projects) and the Parties shall be bound to comply therewith, unless a Party (the “Refusing Party”) notifies the other Party within [***] of such determination that it
does not want to comply therewith, in which case the other Party (the “Advancing Party”) shall have the right, whether itself, through its Affiliates or with or through Third Parties, to conduct research and development with respect
to, and Manufacture and Com-

  
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mercialize, the Idea which was the object of such dispute, provided, however, that if the Advancing Party wishes to conduct any such activities by itself or with or through a Third Party (other
than a subcontractor on a fee-for-hire basis), then the Advancing Party shall advise the Refusing Party of such opportunity (“Opportunity Notice”). In the event the Refusing Party wishes to participate in the development,
Manufacture and Commercialization of such Idea, it shall have [***] to confirm to the Advancing Party in writing its interest in pursuing such opportunity with the Advancing Party and then the Parties shall, within the [***] period from the receipt
of the confirmation, enter into good faith negotiations and sign an amendment to this Agreement governing the terms and conditions thereof to reflect the value increase, if any, created by the Advancing Party. If the Parties cannot agree on such
terms and conditions within [***] of the delivery of the Opportunity Notice, then the Advancing Party may pursue such Business Segment (as defined in (b) in the definition of Business Segment) outside this Agreement subject to the provisions of
Clause 18.1 and Article 19. 

  

	 	(b)	Phase 2 (Research and Development): 

  

	 	(i)	This phase covers the execution of the activities in each Development Plan towards achieving the criteria as defined in the applicable TPP with respect to a Development Project. This phase covers research and
development activities until Regulatory Approval is obtained or the requisite Notification is filed, including bench evaluation, formulation, efficacy and safety analysis, substantiation, pre-clinical and Clinical Studies, Notifications filings and
Regulatory Approvals. Each Development Plan shall contain certain specifications and stage gates where the JSC shall decide whether the continued research and development is scientifically, technically and commercially justified and to be determined
when LEO is taking over the main responsibility for the development activities necessary to generate data to support regulatory filings and any pre-Commercialization tasks. 

  
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	 	(ii)	As each Development Plan progresses, the JMCC shall consider the Manufacturing and Commercialization needs of the Development Project and submit its consideration and input to LEO. 

 

	 	(iii)	Upon completion of the Development Plan and subsequent approval by the JSC and the Parties, LEO shall commence the Commercialization phases, including implementation of commercial Manufacturing, if applicable, and
generate a marketing plan for such Licensed Product, which shall also be included into the next applicable Annual Marketing Plan. 

  

	 	(iv)	The JSC shall also be allowed to determine that Commercialization of such Licensed Product should not be prioritized at such point in time, but should be reserved for later use by the JV Business, subject, however, to a
Party, acting reasonably and in good faith, resubmitting the Licensed Product (including a written substantiation of the reason for re-submission) for a prioritization determination at any subsequent JSC meeting. 

 

	 	(v)	In the event the Commercialization of a Licensed Product is not endorsed or prioritised by KTI’s Members of the JSC, then LEO may at its own discretion initiate Commercialization and Manufacturing of the Licensed
Product. 

  

	 	(vi)	In the event LEO does not endorse or prioritize such Commercialization within [***] from having obtained the requisite Regulatory Approval or having filed the requisite Notification, as the case may be, and KTI
disagrees, then either Party may elect to have the matter resolved pursuant to Clause 37.2 and if the Executive Officers are unable to resolve the dispute within the delay provided, either Party may then elect by written notice to the other Party
(the “Dispute Notice”) to have the dispute resolved by the Expert pursuant to Clause 37.3. If such dispute is submitted to the Expert, then if the Expert determines that such Commercialization appears to be commercially viable
for, and should not have a materially adverse impact on, 

  
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the JV Business taking into consideration already approved and/or on-going Development Projects, the Collaboration Budget, already Commercialised Licensed Products, and such other factors as may
be relevant to assess the best interest of the JV Business, taken as a whole, then to the extent LEO does not confirm to KTI in writing within [***] of the Expert’s determination its firm undertaking to conduct its Manufacturing and/or
Commercialization obligations hereunder with respect to such Licensed Product, then KTI shall have the right, whether itself, through its Affiliates or with or through Third Parties, to Manufacture and/or Commercialize such Licensed Product
throughout the Territory, provided, however, that if KTI wishes to Manufacture or Commercialize such Licensed Product by itself or in collaboration with or through a Third Party (other than a subcontractor on a fee-for-hire basis), then KTI shall
advise LEO of such opportunity. In the event LEO wishes to participate in such opportunity, it shall have [***] to confirm to KTI in writing its interest in pursuing such opportunity with KTI and then the Parties shall, during the [***] period
thereafter, enter into good faith negotiations and sign an amendment to this Agreement governing the terms and conditions thereof. If the Parties cannot agree on such terms and conditions within such [***] period, then the provisions of Clause 18.1
and Article 19 shall apply. 

 (c) Phase 3 (Commercialization): Phase 3 shall cover the period from the time Regulatory
Approval is obtained or the requisite Notification is filed. It will include the Commercialization of a Licensed Product in the Territory, and hence will include preparation for such Licensed Product launch and Manufacturing. LEO shall be sole
responsible for activities related to this phase, unless otherwise expressly agreed between the Parties. 
 (d) Licensed Products. The
JSC shall be responsible for determining at what phase the Licensed Products existing at the Effective Date or any other Licensed Product, idea or formulation should be undertaken by the Parties under this stage gate model. 

  
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 5.3 Development Plan. 

 

	 	(a)	The Parties shall, acting through the JSC in accordance with the provisions of Article 4, diligently agree on and finalize a development plan (as amended from time to time, a “Development Plan”) for
each phase of a Development Project approved for advancement and which may include the following: 

  

	 	(i)	a description of the applicable phase of the Development Project and detailing the scientific and commercial rationale thereof; 

  

	 	(ii)	a target product profile (“TPP”) describing the key features, attributes and use of the potential Licensed Product developed under such Development Plan, including technical, medical and scientific
information to achieve the commercial outcome contemplated by the Parties; 

  

	 	(iii)	as applicable but subject to Clause 4.1(b), a description of the research and development activities to be conducted by each Party, including each Party’s responsibilities under such Development Plan with
corresponding overall timelines; 

  

	 	(iv)	based on the TPP, safety, efficacy, stability and manufacturability landmarks to be met before each phase or stage encompassed with such Development Plan is considered completed; 

 

	 	(v)	based on the TPP, a description of decision points which may include safety, efficacy, stability, manufacturability and commercial criteria at which the JSC can decide whether the continued development is
scientifically, technically or commercially justified; 

  

	 	(vi)	as applicable, a description of prioritization with respect to obtaining Regulatory Approvals or filing Notifications in the Major Markets; 

 

	 	(vii)	as applicable, a description of the clinical and regulatory strategy, including the general parameters of the proposed clinical end points and a summary description of any required Clinical Studies; 

  
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	 	(viii)	as applicable, a summary description of any development of production processes for such phase of the Development Project; 

  

	 	(ix)	initial consideration for a long term strategy for the development of each Licensed Product in the Territory in relation to the JV Business as such; and 

 

	 	(x)	the corresponding Development Budget. 

  

	 	(b)	Each Development Plan shall cover one or more phases of activities (divided by stage gates requiring go/no-go decisions) up to and until the requisite Regulatory Approval is obtained or Notification filed for a Licensed
Product. 

  

	 	(c)	Within [***] of the end of each [***], each Project Manager shall provide to the other Project Manager a full status report of their activities under the applicable Development Plan and any variance thereto going
forward. 

 5.4 Conduct of Development Plans. Each Party shall undertake the tasks allotted to it in each Development
Plan with respect to a Development Project with reasonable skill and care and in a timely manner. All such activities shall be performed in compliance with all applicable Laws, including current good laboratory practices and Good Clinical Practice.
If a Party’s activities require the receipt of compounds, prototypes, data, Licensed Products and any other materials and items set forth in the Development Plan from the other Party, such other Party shall provide such items without undue
delay and in the required quantity and quality. Each Development Plan shall be reviewed by the JSC at each meeting and at least once in each Quarter, the Alliance Managers shall submit to the JSC for review updates (progress reports) to each
on-going Development Plan to reflect progress in the development of each Licensed Product, and if applicable, amendments to the Development Plans for approval. Each Party shall, if so requested by the other Party, in a timely manner provide updates
or amendments to a Development Project or Development Plan. It is acknowledged that each Party has a significant impact upon the progress of a Development Project and hence shall always allocate sufficient qualified resources and competences to a
Development Project and shall support continuation of such resources unless otherwise requested by the other Party. Either Party may fulfil its obligations under a Development Plan through sub-contractors, provided always that such obligations are
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accordance with this Agreement and the Related Agreements, as applicable. The sub-contracting Party shall remain fully responsible for the activities performed by sub-contractors and shall be
responsible for the sub-contractors’ actions and omissions as if such were performed by the sub-contracting Party itself. In case that KTI is using sub-contractors it is the responsibility of KTI to ensure that the costs for such
sub-contracting remain within the agreed Development Budget and that payment is subject to proper delivery of the requested activities and results and timely invoiced. 

5.5 First Development Plan.  
  

	 	(a)	The Parties have agreed that the first Development Plan shall be focus on: 

  

	 	(i)	the preparation of documentation and material for Clinical Studies to be conducted in particular with respect to [***] and [***]; and 

 

	 	(ii)	conducting such necessary Clinical Studies as deemed necessary (e.g. each Acne Study deemed necessary). 

  

	 	(b)	KTI shall ensure that all necessary development documentation is updated and complies with EU as well as US regulations, and shall support LEO as needed for transfer of development documentation in respect of any KTI
Technology as well as transfer all necessary documentation to support any and all filings necessary for Regulatory Approvals, including for the Acne Studies, as well as required for any CE-mark being filed by LEO, as well as any US PMA filings.

  

	 	(c)	KTI shall as its first Development Project establish specifications for the development of a [***] and a [***] to be used for the Acne Studies, subject to agreement with LEO on such specifications, and shall conduct all
commercial reasonable and necessary activities to document such formulations and products, including but not limited to product specifications, physical and chemical testing as well as stability testing. Upon finalization of such documentation, the
Parties shall together review and ensure that all necessary materials and documentations are applicable for use in Clinical Studies and in the EU and US, and shall mutually sign off on such development “Acne Studies Product Finalization”.

  
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	 	(d)	LEO shall prepare and deliver to KTI a draft protocol for the Acne Studies. 

  

	 	(e)	LEO shall in parallel prepare such protocols as necessary and shall align these with KTI in a timely manner. 

  

	 	(f)	KTI shall use commercial reasonable efforts to ensure that contract manufacturers agreed between LEO and KTI will be able to produce such necessary [***] and [***] as necessary to conduct the Acne Studies, and shall
support LEO in ensuring the finalization of supply contracts necessary, any necessary specifications to be established together with such contract manufacturer as well as any necessary quality agreements. 

 

	 	(g)	LEO shall use commercial reasonable efforts to initiate the Acne Studies within [***] from “Acne Studies Product Finalization” (subject to such necessary ethics committee approvals and delivery of applicable
materials in support of EU and US filings and as may be required for any of the following: EU approvals, CE-marking, FDA approval and Pre-market trial authorizations which may be deemed necessary for such Clinical Study initiation).

  

	 	(h)	LEO shall use commercial reasonable efforts to commence the Acne Studies within [***] of obtaining the Regulatory Approvals or upon receiving the full Clinical Study order from the mutually appointed contract
manufacturer, whichever is later. 

 5.6 Clinical Studies. 

 

	 	(a)	For sponsored exploratory Clinical Studies which have been approved by the JSC to be conducted by KTI as part of a Development Plan, KTI shall submit to LEO in a timely manner any protocols for input and review and LEO
shall provide such input and approval in a timely manner. KTI may not conduct any Clinical Studies for Licensed Products within the Field and Territory other than those set forth in the Development Plan. 

  
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	 	(b)	All other Clinical Studies shall be conducted by LEO (i) as part of a Development Project according to a Development Plan or (ii) involving Licensed Products within the Territory after Regulatory Approval. LEO
shall seek input from KTI for the drafting of such necessary protocols; such input to be provided by KTI in a timely manner. Each Clinical Study conducted by LEO will be conducted within the Territory. 

 

	 	(c)	Except as required under applicable Law or for safety reasons, each Clinical Study shall by conducted in accordance with its respective protocol, as same may be amended from time to time. 

 

	 	(d)	LEO shall own all Study Results from all Clinical Studies financed by LEO regardless whether conducted by LEO or KTI. Notwithstanding the foregoing, each Party shall, subject to the provisions of Articles 19 and 20,
have full access and the unfettered right to use the Study Results as reasonably required for their respective businesses. 

  

	 	(e)	KTI acknowledges that LEO is committed to increasing transparency with respect to clinical trials. As part of this initiative and after having informed KTI prior to publication, LEO may on its website publish
information about any Clinical Studies (e.g. the clinical study report and its summary) conducted by LEO under this Agreement while publication of Clinical Studies conducted by KTI pursuant to this Agreement requires prior written consent from
KTI[***]. LEO may also provide researchers access to this information and anonymised patient level data for further research. Publication and access will be in accordance with LEO Pharma Position on Public Access to Clinical Trial Information. KTI
shall ensure that any investigator used in its Clinical Studies agrees to such disclosure. 

 5.7 Clinical Study
Procedures. A Party conducting a Clinical Study shall observe the following procedures: 
  

	 	(a)	The conducting Party shall obtain all Regulatory Approvals required to conduct a Clinical Study; 

  

	 	(b)	The conducting Party shall provide to the JSC (i) a copy of the protocol; and (ii) a summary of the Study Results which is part of the Clinical Study Report; 

  
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	 	(c)	Each Clinical Study shall be conducted in accordance with Good Clinical Practices and all applicable Laws; 

  

	 	(d)	Regular high-level progress reports shall be provided by the conducting Party to the JSC with respect to each Clinical Study; 

  

	 	(e)	The conducting Party shall ensure that each clinical research organization, investigator and other contractor or service provider retained for or in connection with each Clinical Study assigns any and all Intellectual
Property or Know-How rights in and to the Study Results to both Parties; and 

  

	 	(f)	All publications and presentations relating to or connected to each Clinical Study shall be subject to Clause 20.6. 

5.8 Development Costs and Collaboration Budget. 
  

	 	(a)	LEO shall be responsible for all the reasonable costs of carrying out each Development Plan as set out in the applicable Development Budget. Where it is agreed in the Development Plan or Development Budget that LEO
shall reimburse KTI for its actual costs accrued under a Development Plan, KTI shall submit to LEO an invoice in respect of the FTE Costs and Out-of-Pocket Costs actually incurred by it pursuant to each Development Plan within [***] of the end of
each [***]. KTI shall track participation of its employees and Agents in the conduct of the research and development activities on a FTE basis. All invoices must reflect the actual work carried out during the period of the invoices in sufficient
detail to enable LEO to approve the invoice. KTI shall provide adequate documentation for all expenses to be covered by LEO. LEO shall pay the amount invoiced by KTI in accordance with Article 14. 

 

	 	(b)	Notwithstanding anything in this Agreement to the contrary, the annual budget for the amount payable by LEO to KTI for research and development related activities pursuant to this Agreement shall not exceed US$[***] per
year during the first [***] following the Effective Date without the prior consent of LEO (“Collaboration Budget”). Thereafter, the Collaboration Budget shall be negotiated in good faith by the Parties based upon input from

  
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the JSC relative to such Ideas or Development Projects deemed interesting for the JV Business to engage in, the overall JV Business performance (including the potential pipeline of Development
Projects) as well as the actual spend in the preceding periods. The Parties shall no later than [***] prior to the beginning of each subsequent [***] period negotiate such Collaboration Budget as warranted based on above evaluations, however as a
guideline for such negotiations the Collaboration Budget for any period shall not exceed the actual spend for the previous year +[***]%. In the event neither Party has proposed any Ideas which have been endorsed or approved by the JSC within a
calendar year, the Collaboration Budget for the coming year shall be maintained at the same level as the current year. In the event neither Party has proposed any Ideas which have been endorsed or approved by the JSC for a period of [***]
consecutive years, [***] to not allocate a Collaboration Budget for the coming year, and hence in effect place the JSS on hold until an Idea is presented to the JSC, on which occasion the Collaboration Budget shall be approved by [***] on an ad-hoc
Project basis. The Parties acknowledge that there might be periods during the collaboration where no research and development activities are pursued by the Parties and hence the JV Business shall remain is effect despite the fact that there has been
no Collaboration Budget allocated according to this Clause 5.8(b) for a period of time. 

 5.9 Audits. Each Party
shall, and shall ensure that its respective Affiliates and permitted subcontractors (if any) shall, keep true and accurate records and books in relation to any research and development conducted by it pursuant to each Development Plan, the
Manufacture, Commercialization or supply of Licensed Products, and containing all data necessary for the determination of any Intellectual Property (including KTI Inventions, LEO Inventions and Joint Inventions) generated in the research and
development, the number of FTEs used by KTI in the research development, the calculation of the amounts payable to KTI pursuant to this Agreement (as applicable) and compliance by such Party with its other obligations under this Agreement. Such
records and books of account shall be kept for at least [***] or longer if required by Law in each respective country of the Territory, following the end of the calendar year when such amounts become due hereunder. Each Party shall be entitled, not

  
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more than [***], to audit the other Party’s facilities and/or the books and records itself or using Third Party advisors (“Advisors”). The auditing Party shall provide the
other Party with at least [***] notice of such audit, which shall be conducted during normal business hours at the relevant location(s). The audited Party shall make available to the auditing Party and its Advisors the relevant facilities, the
personnel involved in any research, development, Manufacture or Commercialization of Licensed Products, all relevant books and records required for the purpose of that audit. The books and records shall be the Confidential Information of the audited
Party. The auditing Party shall be responsible for the cost of such audit; provided (a) with respect to the payment obligations of LEO hereunder that KTI shall reimburse LEO for such LEO’s auditing costs if the results of the audit
conclude that LEO has overpaid KTI by more than [***] percent ([***]%) or (b) the audited Party shall reimburse the auditing Party for such costs if the audited Party has wilfully not properly disclosed any material Intellectual Property
generated in such research and development. Any outstanding under-payments or over-payments which are identified as a result of carrying out the audit and certification shall be paid to or by LEO within [***] after LEO receives the audit results.

 5.10 Reporting of Result; Records and Documentation. 
  

	 	(a)	The Parties shall collaborate and share information regarding Development Projects in a trusting manner in accordance with the principles of good faith and subject to the terms of this Agreement. 

 

	 	(b)	The Project Managers will regularly share and review and where applicable share with the Alliance Managers and JSC the results of the Development Projects. In addition, the Project Managers shall provide the Alliance
Managers, no later than [***] prior to each scheduled JSC meeting, with reports summarizing all substantial data and results, activities and timelines related to such Party’s efforts regarding the Development Project. Upon request, each Party
shall provide the other Party with complete copies of any such data and results generated by such Party except for Study Results. The Alliance Managers shall facilitate communications between KTI and LEO with respect to such matters. The Project
Managers shall coordinate the establishment of an eRoom to facilitate the sharing of information as deemed reasonable. 

  
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	 	(c)	Each Party shall maintain complete, current and accurate records of all activities conducted by it under this Agreement, and all data, results and other information resulting from such activities. Such records shall be
separable from other records prepared by such Party during the course of its ordinary business and shall fully and properly reflect all work done and results achieved in the performance of the activities in good scientific manner and appropriate for
regulatory and patent purposes. Such Party shall use separate lab notebooks or other records in a format approved by the JSC to document its activities under this Agreement. Such Party shall store such records at a secure place as long as necessary
for regulatory and patent purposes (e.g lab notebooks shall be kept during patent life time) and such Party shall, upon request, grant to the other Party access to and/or provide complete copies of such records and data to the extent necessary for
regulatory and patent purposes or required by law. 

 6. REGULATORY 

6.1 Responsibility for Regulatory Applications in the Territory. LEO shall be responsible, at its own cost, for the diligent filing and
maintaining, in LEO’ name, the IDEs, PMAs and other regulatory applications necessary to obtain and maintain Regulatory Approval for each Licensed Product in the Field in the Territory, in a manner that is consistent with each applicable
Development Plan. If requested by LEO, KTI shall review and comment in a timely manner on all IDEs, PMAs and other similar regulatory applications for each Licensed Product prior to submission to any Regulatory Authority in the Territory; and LEO
may as well confer with KTI regarding the preparation of such filings and communications and the registration process and any revisions to any filings or communications with the Regulatory Authorities provided, however, that the first filing for a
Licensed Product or a new indication within the Field in a Major Market must be timely submitted to KTI for review and comment. It is the responsibility of LEO to decide who shall attend regulatory meetings with Regulatory Authorities (e.g.
scientific advice meeting prior to submission or meetings/advisory panel discussions under the approval process) and if requested by LEO, KTI shall, at the expense of LEO, attend such meetings. Any Regulatory Approval and Notification obtained by
LEO for any Licensed Product shall be exclusively owned by LEO. 

  
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 6.2 Transfer of CE Mark for Licensed Products. KTI shall be entitled to maintain the
KTI CE Mark solely for the purposes of complying with its obligations in this Agreement and shall not be entitled to use that CE Mark for any other purpose in the Field. KTI shall use commercially reasonable efforts to procure that the KTI Notifying
Body shall cooperate with LEO to enable LEO to obtain its own CE Mark or CE Marks in respect of Manufacture by KTI’s manufacturers, Third Party manufacturers and/or LEO, including making available to LEO all relevant information (including the
technical documentation, design history file, clinical study reports, audit reports from the KTI Notifying Body or any other Third Party). The costs of such cooperation and the obtaining of CE Marks in LEO’s name shall be borne by LEO. For the
avoidance of doubt, LEO may, but shall not be obliged to use the same notifying body as KTI in respect of any CE Marking applied by LEO. KTI shall not apply for or apply a CE Mark to any Licensed Product where such CE Mark covers applications in the
Field other than for the purpose of supplying Licensed Products to LEO or as otherwise specifically permitted hereunder. 
 6.3 KTI
Regulatory Support. Subject to any obligation of confidentiality owed by KTI to a Third Party, KTI shall, at LEO’s cost [***], provide such technical data in its possession and support as is reasonably necessary to assist LEO to prepare
regulatory applications for Licensed Products in the Territory. 
 7. COMMERCIALIZATION 

7.1 Commercializing Responsibilities. LEO shall have the exclusive right to Commercialize and be solely responsible for all aspects of
Commercialization of each Licensed Product in the Field in the Territory, including developing and executing a commercial launch and pre-launch plan and conducting all Commercialization activities and including the development of all marketing
materials. For the avoidance of doubt LEO shall be entitled to outsource the performance of any part of its activities in accordance with the provisions of Clause 2.4. LEO shall bear all of the costs and expenses incurred in connection with such
Commercialization activities. 

  
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 7.2 Soft Launch. The Parties have agreed that LEO shall initiate a soft launch
(“Soft Launch”) in the EU, subject to the following terms and conditions: 
  

	 	(a)	KTI shall ensure that all necessary development documentation for the First Licensed Product, including the three-panel LED lamp (KT-D lamp) is updated and complies with EU regulations, and that all products have
obtained a CE-mark with no restrictions associated herewith; 

  

	 	(b)	KTI shall support LEO as needed for transfer of development documentation and any other KTI Know How controlled by KTI as well as transfer all necessary documentation to support any and all filings for Regulatory
Approvals necessary including such necessary documentation needed for LEO to obtain a CE-mark for such First Licensed Products with a LEO Trade Mark, or such other authorization as is deemed necessary for LEO to legally commence sales of such First
Licensed Products in the EU; 

  

	 	(c)	KTI shall use commercially reasonable efforts to ensure that contract manufacturers agreed upon between LEO and KTI will be able to produce such necessary active gels and Lumi-Derm lamps as is deemed necessary by LEO to
commence the Soft Launch, and shall support LEO in ensuring the supply contracts necessary, any necessary specifications to be established together with such contract manufacturer as well as any necessary quality agreements and other approvals
needed; 

  

	 	(d)	KTI shall assist LEO in developing and reviewing all marketing and campaign material deemed necessary for initiation of the Soft Launch; 

 

	 	(e)	LEO shall provide an overview of its plans for the Soft Launch at the first JSC meeting in 2014; and 

  

	 	(f)	LEO shall within [***] from obtaining the required CE-mark or from receiving at least the first order of the First Licensed Products to inventory in Europe, whichever is later, proceed with the Soft Launch in select
dermatology clinics in at least [***] of the [***] EU countries [***]. 

 7.3 Marketing Materials. LEO shall be responsible
for developing all marketing materials used to Commercialize the Licensed Products in each country of the Territory in the Field and shall ensure that they comply with all applicable Laws and do not have any material detrimental effect on the
reputation, goodwill, Intellectual Property or Know-How of the JV Business or KTI. LEO shall coordinate with KTI the background scientific content to be included 

  
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into the initial marketing material for a new Licensed Product. LEO shall, upon request, provide KTI with a copy of the base (concept) marketing materials to be used in connection with the
Commercialization of any Licensed Products and, subject to obtaining the prior written consent of LEO, KTI may use such marketing materials in the manner approved by LEO. 

7.4 Annual Marketing Plan. LEO shall be responsible for preparing annual marketing plans (each, an “Annual Marketing
Plan”) for the Licensed Products licensed to LEO hereunder for each calendar year during the Term where such Licensed Products are Commercialized by LEO; for the first time on 1 October 2015 The Annual Marketing Plan shall include, to
the extent reasonably available, the following, taking into account the lifecycle evolution of the Licensed Products: 
  

	 	(a)	A brief description of the market and distribution channels; 

  

	 	(b)	A brief description of any market intelligence concerning any potential threats to the JV Business in the possession of LEO; 

  

	 	(c)	A high-level description of the promotional activities and distribution opportunities for the Licensed Products, on a regional basis; and 

 

	 	(d)	[***] non-binding prognosis of Net Sales, volumes and Permitted Deductions of each Licensed Product, on a yearly country-by-country or Region-by-Region basis whatever is reasonable, either directly, to Distributors or
other Third Parties or from sub-licensees for such countries where the Licensed Products have been launched or are planned for launch. 

 LEO
shall deliver each Annual Marketing Plan to JSC for review annually no later than October 1 of each calendar year. 
 7.5
Commercialization Reports. On a [***] basis, LEO shall provide KTI and the JSC with a high-level summary of LEO’s significant Commercialization activities with respect to each Licensed Product in the Territory, general market and
economic developments that may affect the Commercialization of the Licensed Products in the Territory and the matters set forth in the Annual Marketing Plan. 

  
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 7.6 Use of Trade Marks. Subject to Clauses 17.3 and 17.4, LEO will Commercialize and
label each Licensed Product in the Territory under a trade mark selected by LEO which may or may not be a KTI Trade Mark. 
 7.7
Standards. All Commercialization activities and representations by LEO shall be consistent with the Regulatory Approvals and Notifications. LEO shall not knowingly make any medical representation or other representation with respect to any
Licensed Product contrary to all applicable Laws and the LEO Code of conduct in force at any given time. 
 8. MANUFACTURING AND SUPPLY 

8.1 Responsibilities during Development. For each Licensed Product under development the Parties shall determine as part of each
Development Plan the Party’s responsibility for Manufacturing and supply of Licensed Products for development use. The details of manufacturing and supply for development purposes shall be regulated in Related Agreements to be entered into by
the Parties in good faith; such agreements will contain details of the specifications of the products to be supplied, appropriate warranties as to quality and delivery and other terms in accordance with standard business practices. In case that LEO
requests to take over the Manufacturing and/or supply of Licensed Products under Development, KTI shall provide all reasonable assistance and know how to enable tech transfer necessary for LEO (or a designee of LEO) to take over and/or establish the
Manufacturing and supply of Licensed Products. LEO shall reimburse KTI and its contractors for all Out-Of-Pocket Costs incurred in connection with such transfer. For the avoidance of doubt, amounts paid pursuant to this Clause 8.1 shall form part of
the Collaboration Budget 
 8.2 Responsibilities during Commercialization. LEO shall assume responsibility for the Manufacturing of
the commercial supplies of the Licensed Products for Commercialization in the Field and Territory. With respect to the First Licensed Product, during the [***] period following the Effective Date, the Parties shall work together to ensure an orderly
transition of the Manufacturing Know-How Controlled by KTI in relation to the Licensed Products. During this transition period should any supply issues arise which may compromise the Soft Launch, KTI agrees to use commercial reasonable efforts to
assist LEO to maintain the source of supply with the then current Manufacturer. In this regard, KTI shall use commercially reasonable efforts to provide and have its contractors provide reasonable assistance to ensure an effective and efficient full
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of the Manufacturing Know-How Controlled by KTI in relation to Manufacturing of Licensed Products. LEO shall reimburse KTI and its contractors for all Out-Of-Pocket Costs incurred in connection
with such transfer. KTI may also supply the initial Licensed Products for the Soft Launch which will be subject to a suitable commercial supply agreement to be agreed upon (the “Commercial Supply Agreement”). 

8.3 Supply Agreement with respect to the Acne Studies. It is the Parties intention that KTI will procure the supply Lamps and the
Biophotonic Formulation, which meets GCP requirements, for the Acne Studies pursuant to the terms and conditions of a clinical supply agreement to be agreed between the Parties (the “Clinical Supply Agreement”) LEO will pay to KTI
the Cost of Goods of all Licensed Products supplied by KTI pursuant to the Clinical Supply Agreement and the Commercial Supply Agreement in accordance with Article 14. For the avoidance of doubt, reimbursement of costs associated with both the
clinical and commercial supply of Licensed Product [***]. 
 8.4 Quality Agreement. The Manufacturing of the Licensed Products shall
be made in compliance with Good Manufacturing Practices, applicable Laws, best industry standards, this Agreement and the Related Agreements, as applicable, and with each quality agreement to be entered into between the Parties setting forth the
quality control and quality assurance obligations of the Parties to comply with all applicable Laws (the “Quality Agreement”). 
 9.
DILIGENCE 
 9.1 Commercially Reasonable Efforts. LEO shall use Commercially Reasonable Efforts based on the conditions prevailing
at the time such efforts are undertaken, to Commercialize the Licensed Products approved for Commercialization by the JSC throughout the Territory in order to optimize the sale of the Licensed Products throughout the Territory. Notwithstanding the
foregoing, LEO shall have the right to withdraw any Licensed Product from the market in any country in the Territory if it is no longer commercially viable for LEO to continue to Commercialize such Licensed Products in such country, provided that
LEO in case of a withdrawal from a [***] shall provide [***] prior written notification (including the rationale for such withdrawal) to KTI. Clause 10.2 shall apply in case of withdrawal from an entire Region. 

  
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 9.2 Discretion. KTI acknowledges that LEO has a degree of discretion, acting
reasonably, when using Commercially Reasonable Efforts, taking particular into account the resources and priorities of LEO within clinical development and the market conditions and commercial viability of product launches and continued sales in the
countries in the Territory. If KTI nevertheless reasonably believes that LEO is not using Commercially Reasonable Efforts to Commercialize any Licensed Product in any part of the Territory, then KTI may provide to LEO written notice documenting in
reasonable detail the reasons for such assertion. Upon receipt of such notice LEO shall have a period of [***] to respond to KTI’s assertion providing information in reasonable detail about its activities under this Agreement. If KTI thereafter
still is of the opinion that LEO is not using Commercially Reasonable Efforts, KTI shall refer the matter to an extraordinary JSC meeting which shall take place within [***] of referral where each Party shall support its assertion in reasonable
detail. If the disagreement cannot be resolved in a mutually acceptable manner at the JSC meeting or within [***] thereafter (or a longer period if agreed by the Parties) then either Party may elect to have the matter resolved pursuant to Clause
37.2 and if the Executive Officers are unable to resolve the dispute within the delay provided pursuant to Clause 37.2 or in case that LEO has not remedied the Commercial Reasonable Efforts in dispute, then either Party may elect by written notice
to the other Party (“Dispute Notice”) to have the matter examined by the Expert pursuant to Clause 37.3. In the event the Expert submits recommendations as to additional Commercially Reasonable Efforts to be deployed by LEO, and LEO
does not apply such recommendations within [***] of the submission of the recommendations, then either Party may elect in writing to have the matter submitted to arbitration for final resolution in accordance with Clause 37.4. If the arbitration
award confirms that LEO is in fact not using Commercially Reasonable Efforts with respect to the development and/or Commercialization of the Licensed Product, then KTI shall be entitled to terminate this Agreement with respect to the affected
Business Segment pursuant to Clauses 18.4 and 18.5 below. 

  
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 10. EXCLUDED AND DISCONTINUED PRODUCTS AND ORPHAN INDICATIONS 

10.1 Excluded Products. 
  

	 	(a)	In the event a Party believes that the research and development of a Licensed Product being the object of a Development Project should be discontinued, the Party’s Alliance Manager shall provide its observations,
researches and reports to the Joint Steering Committee for review and the other Party’s Alliance Manager shall have the opportunity to make its representations in relation thereto. The JSC shall consider objective parameters, including notably
the existence of scientific rationale or clinical proof of efficacy and/or safety or lack of same of the Licensed Product, the potential for such Licensed Product to detrimentally affect the Commercialization, price or market position of other
Licensed Products and the potential of the Licensed Product to be commercially viable, taking into account Commercial Reasonable Principles. 

  

	 	(b)	If the JSC determines in good faith that the research and development of such Licensed Product should be continued, then the Parties shall comply therewith. However, if the JSC determines in good faith that the research
and development of such Licensed Product should be discontinued or is unable to reach a consensus on the discontinuance of development of such Licensed Product (an “Excluded Product”), then both Parties shall stop further
development, manufacturing and Commercialization of such Excluded Product and if either Party does not agree that such Licensed Product should be an Excluded Product, then such Party may elect to have the matter resolved pursuant to Clause 37.2 and
if the Executive Officers are unable to resolve the dispute within the delay provided, either Party may then elect by written notice to the other Party (the “Dispute Notice”) to have the dispute resolved by the Expert pursuant to
Clause 37.3. 

  

	 	(c)	 If such dispute is submitted to the Expert, then the Expert shall determine whether the Excluded Product appears to be commercially viable for, and
should not have an adverse impact on the JV Business as a whole, taking into consideration already approved and/or on-going Development Projects, the 

  
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Collaboration Budget and already Commercialised Licensed Products, and such other factors as may be relevant to assess the best interests of the JV Business taken as a whole, and the Parties
shall be bound to comply therewith unless a Party (the “Refusing Party”) notifies the other Party within [***] of such determination that it does not want to comply therewith in which case the other Party (the “Advancing
Party”) shall have the right, whether itself, through its Affiliates or with or through Third Parties, to conduct research and development with respect to, and Manufacture and Commercialize, the Excluded Product which was the object of such
dispute, provided, however, that if the Advancing Party wishes to conduct any such activities by itself or with or through a Third Party (other than a subcontractor on a fee-for-hire basis), then the Advancing Party shall advise the Refusing Party
of such opportunity. In the event the Refusing Party wishes to participate in such opportunity (the “Opportunity Notice”), it shall have [***] to confirm to the Advancing Party in writing its interest in pursuing the research and
development of such Excluded Product with the Advancing Party and then the Parties shall enter into good faith negotiations to agree upon the terms and conditions governing such opportunity and reflect the value increase, if any, created by the
Advancing Party. If the Parties cannot agree on such terms and conditions within [***] of the delivery of the Opportunity Notice, then the Refusing Party shall not have any further rights with respect to such Excluded Product and the provisions of
Clause 18.1 and Article 19 shall apply. 

 10.2 Discontinued Product. 

 

	 	(a)	 In the event LEO wishes to terminate the Manufacture or Commercialization of a Licensed Product, either for the entire Territory or for only one or
more indications or Regions, it shall provide, at least [***] prior to the date LEO wishes to so terminate, its observations, research and reports to the Joint Steering Committee for review and KTI’s Alliance Manager shall have the opportunity
to make its representations in relation thereto. A Licensed Product discontinued for only a part of a Region will not be subject to the process set forth in this Clause 10.2 unless the Region is deemed discontinued in

  
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accordance with Part B of Schedule 6. The JSC shall consider objective parameters, including notably the existence of scientific rationale or clinical proof of efficacy and/or safety of the
Licensed Product, the potential for such Licensed Product to detrimentally affect the Commercialization, price or volume development, eminent cannibalization or replacement of other Licensed Products, or market position of other Licensed Products
and the potential of the Licensed Product to be Commercialized profitably. If the JSC determines in good faith that the Manufacture or Commercialization of such Licensed Product should be discontinued for such indications or Regions in question,
then LEO shall be allowed to discontinue Manufacture or Commercialization of such Licensed Product, as applicable, for such indications or Regions in question. If the JSC determines in good faith that such Manufacturing or Commercialization should
be continued or the JSC is unable to reach a consensus with respect thereto, then either Party may elect to have the matter resolved pursuant to Clause 37.2. If the Executive Officers are unable to resolve the dispute within the delay provided, KTI
shall then have the right to enter into negotiations with Third Parties with respect to the Commercialisation of such Licensed Products (“Discontinued Products”) solely for such indications and Regions in question under terms and
conditions which are not more favourable than those proposed to LEO. To the extent a Licensed Product becomes a Discontinued Product, then the provisions of Clause 18.1 and Article 19 shall apply and KTI shall have the right subject to observing the
obligations in Clause 19.9 to Commercialize or have Commercialized such Discontinued Product solely for such indications and Regions in question and to Manufacture and have Manufactured such Discontinued Product anywhere in the world solely for such
purpose. 

  

	 	(b)	 In the event LEO must, for reasons other than those contemplated under Clause 10.2(a), interrupt or terminate the Manufacturing or Commercialization
of a Licensed Product for one or more indications for the whole Territory or only for one or more Regions, LEO shall continue the Manufacturing or Commercialization thereof until same is sub-licensed by LEO to a LEO Sub-licensee at fair market value
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LEO Sub-licensee and the Adjusted Net Sales and Net Proceeds share payments shall apply to such sub-license. KTI shall have the first option to match any such sub-license transaction (and pay the
fair market value thereof minus any payment that would have been made from LEO to KTI pursuant to the Adjusted Net Sales and/or Net Proceeds share payments for such transaction pursuant to the terms and conditions of this Agreement) and in which
case, the provisions of Clause 18.1 and Article 19 shall apply and KTI may undertake, whether itself, through its Affiliates or with Third Parties, the Manufacturing and Commercialization thereof. To the extent the Parties do not agree on the fair
market value with respect to Manufacturing and/or Commercialization of such Licensed Product in the Territory, Region or indication, as applicable, then either Party may send written notice to the other Party (the “Dispute Notice”)
in order to have such matter resolved by the Expert pursuant to Clause 37.3, whose decision with respect thereto shall be final and binding upon the Parties. 

10.3 Orphan Development. In the event KTI wishes to research, develop, Manufacture or Commercialize any of its Biophotonic Formulations
for any Orphan Indications, then KTI shall advise LEO of such opportunity in writing with such reasonably necessary documentation that may be in KTI’s possession, in the form of a business proposal, and if LEO wishes to participate in such
opportunity, it shall have [***] to confirm to KTI in writing its interests in pursuing such opportunity with KTI and then the Parties shall, within [***] of such notice to KTI, enter into good faith negotiations to determine the terms and
conditions of an amendment to this Agreement governing the expansion of the Field to include the Orphan Indications. In the event the Parties cannot agree on the terms of such amendment within such [***] delay, then LEO may elect to have the matter
resolved pursuant to Clause 37.2 and if the Executive Officers are unable to resolve the dispute within the delay provided, LEO shall not have any further rights in respect of the Orphan Indications and KTI shall have the right to research, develop,
Manufacture or Commercialize, whether directly or through an Affiliate or with a Third Party, any product which is the same as or is similar to a Licensed Product for any of the Orphan Indications, in or outside the Territory, to the extent it does
not contain any LEO Invention, LEO Trade Mark or other reference to LEO or any LEO Affiliate. KTI shall not and shall ensure that each KTI Affiliate or Third Parties does not, directly or indirectly, Commercialize or sub-license any product for
Orphan Indications in the Field in a manner which adversely affects the JV Business. 

  
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 11. AE AND INCIDENT REPORTING AND REGISTRATION 

11.1 Reporting and registration. 
  

	 	(a)	LEO and KTI shall ensure that an appropriate system for Adverse Events and Incidents monitoring and registration activities is in place to assume responsibility and liability for Licensed Product in accordance with all
relevant Law. It is the intention of the Parties that LEO shall be responsible for and manage the collection and reporting of Adverse Events or Incidents for Licensed Products in the Field in the Territory and for the creation, maintenance and
updating of a global repository for collection of Adverse Events or Incidents for each Licensed Product in the Field in the Territory. 

  

	 	(b)	The Parties shall promptly after the Effective Date enter into a Medical Device or any other required Incident reporting and Post Marketing Surveillance Agreement and shall comply with the provisions thereof in relation
to the exchange of safety data. 

  

	 	(c)	KTI shall report all Adverse Events and Incidents in Canada to LEO in accordance with the Medical Device or any other required Incident reporting and Post Marketing Surveillance Agreement. 

11.2 Responsible Person. Each Party shall designate a suitably-qualified person responsible for compliance with its Incident reporting
obligations. 
 12. COMPLIANCE AND DATA PROTECTION 

12.1 Compliance. 
  

	 	(a)	 Each Party shall conduct its activities under this Agreement in good scientific manner and in compliance with all applicable Law. In case that KTI
shall conduct animal studies as part of its activities, KTI shall, in addition to the foregoing, also comply with the LEO Pharma Animal Welfare requirements attached 

  
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to the Agreement as Schedule 8. In case of a difference between such requirements and any requirements imposed by applicable local standards, the highest standard shall apply. If KTI outsources
such animal studies, the contract research organisation performing such animal studies shall agree in writing to comply with the LEO Pharma Animal Welfare requirements. 

 

	 	(b)	KTI acknowledges that LEO addresses and resolves ethical and compliance-related issues arising in connection with its activities as set forth in the LEO Code of Conduct. To maintain such ethical and compliance standards
also with respect to the collaboration under this Agreement KTI agrees to perform its activities under this Agreement subject to principles that do not conflict with the standards set forth in the LEO Code of Conduct that can be found at
www.leo-pharma.com/Home/LEO-Pharma/LEO-Code-of-Conduct.aspx 

  

	 	(c)	Each Party furthermore acknowledges that the other Party will not tolerate the use of bribery or corruption to achieve its business objectives. Each Party therefore agrees to comply at all times with all applicable
anti-bribery Laws when performing activities under this Agreement. For the avoidance of doubt, this will include not offering or giving a financial or other advantage to any national/foreign public official with the intention of influencing that
official in connection with the performance of the official’s duties to obtain or retain a business advantage for the Joint Venture Business or any Party. 

12.2 Interactions with HCP. The Parties shall, prior to any contact with HCPs, agree on a policy for interactions with HCPs reflecting
requirements of applicable Law and any relevant industry code with respect to compliance, tracking and reporting of payments to HCPs. 

12.3 Data Protection. The Parties, acting both as data controllers in respect of the Personal Information they supply to the other
Party, shall, throughout the term of this Agreement, comply with all applicable data protection and privacy Laws, as amended from time to time, including the EU Directive 95/46/EC (EU Data Protection Directive) (“Data Protection
Laws”), with respect to the collection, use, processing, storage, transfer, modification, deletion and/or disclosure of any Personal Information under this Agreement. Each Party shall not, through any act or omission, cause the other Party
to be in breach of its obligations under applicable Data Protection Laws. In particular: 
  

	 	(a)	Each Party may only use Personal Information it receives from the other Party solely for the purposes of meeting its obligations under this Agreement and may only transmit such Personal Information to its Affiliates
which are directly involved in the research, development, Manufacture or Commercialization of Licensed Products and their Agents solely for the purpose of the Agreement, including client relationship management and keeping track of interactions with
the other Party. 

  
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	 	(b)	Each Party shall immediately notify the other if: 

  

	 	(i)	it receives any complaint, notice or communication which relates directly or indirectly to the processing of; or 

  

	 	(ii)	it becomes aware of any loss or unauthorised use of, or access to, the Personal Information supplied by the other Party. 

  

	 	(c)	Each Party will take appropriate technical and organisational measures against the unauthorised or unlawful processing of Personal Information and against the accidental loss or destruction of, or damage to, Personal
Information, including, providing appropriate training and guidance to their respective staff. 

  

	 	(d)	Personal Information may only be transmitted to entities outside the European Economic Area and Canada where such entity is located in a country or territory which ensures an adequate level of protection for the rights
and freedoms of the individual to whom the Personal Information transferred relates, or where adequate safeguards are in place to ensure compliance with applicable Data Protection Laws. The receiving entity must be under obligations to protect any
Personal Information transferred which are no less onerous than those imposed under this Agreement. 

  

	 	(e)	Upon request, each Party, its employees and principals can exercise the rights of access, rectification and erasure in respect of the Personal Information it supplies to the other Party, utilizing the notice provisions
of this Agreement. 

  
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	 	(f)	The Parties may disclose Personal Information as required by regulatory agencies or otherwise under applicable Law. 

13. FINANCIAL TERMS 
 13.1
Payments. In consideration for the grant of license rights and any other contributions made by KTI to LEO, including for its development activities, LEO shall make the following payments to KTI subject to the terms set forth in Articles 13
and 14: 
  

	 	(a)	a cash up-front payment of fifteen million US Dollars ($15,000,000) according to Clause 13.2; 

  

	 	(b)	a share of the Net Proceeds according to Clause 13.3; 

  

	 	(c)	a share of the annual Adjusted Net Sales according Clause 13.4; 

  

	 	(d)	development costs set forth in the Development Budget according to Clause 5.8; and 

  

	 	(e)	the Out-of-Pocket Costs provided in this Agreement to be reimbursed by LEO, to the extent not included in the above. 

KTI shall not be entitled to any other payments than those set forth in this Article 13. 

13.2 Up-front Payment. In partial consideration of the licenses and rights granted under this Agreement LEO shall pay a one-time-only
non-refundable, non-creditable fee of fifteen million US Dollars ($15,000,000) no later than [***] after the receipt of an invoice for such amount, which invoice shall not be issued prior to the date of last signature of this Agreement. 

13.3 Payment of Net Proceeds. In partial consideration of the licenses and rights granted to LEO and any other contributions made by
KTI under this Agreement, LEO shall within [***] after the date LEO is to provide to KTI the Quarterly Statement or Annual Statement, in accordance with the provisions of Articles 13 and 14, pay to KTI [***]% of the Net Proceeds received during such
Quarter. 

  
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 13.4 Payment of Adjusted Net Sales. In partial consideration of the licenses and
rights granted to LEO and any other contributions made by KTI under this Agreement LEO shall within [***] following the end of each of the first three (3) Quarters and within [***] following the end of the fourth Quarter, pay to KTI the
following percentages (“Profit Share”) of Adjusted Net Sales of all Licensed Product, calculated on a calendar year basis but paid Quarterly, as follows: 
  

	 	(a)	To the extent that the calculation of Adjusted Net Sales is a negative amount, LEO shall make no payment to KTI and the negative amount shall be carried forward to the next Quarter as a Loss Carry Forward;

  

	 	(b)	For the portion of the annual aggregate Adjusted Net Sales for the calendar year in which the Quarter falls that is greater than zero US Dollars ($0) but less than or equal to [***] US Dollars ($[***]): [***] percent
([***]%) of such portion of the Adjusted Net Sales; and 

  

	 	(c)	For the portion of the annual aggregate Adjusted Net Sales for the calendar year in which the Quarter falls that is greater than [***] US Dollars ($[***]) but less than or equal to [***] US Dollars ($[***]): [***]
percent ([***]%) of such portion of the Adjusted Net Sales; and 

  

	 	(d)	For the portion of the annual aggregate Adjusted Net Sales for the calendar year in which the Quarter falls that is greater than [***] US Dollars ($[***]) but less than or equal to [***] US Dollars ($[***]): [***]
([***]%) of such portion of the Adjusted Net Sales; and 

  

	 	(e)	For the portion of the annual aggregate Adjusted Net Sales for the calendar year in which the Quarter falls greater than [***] US Dollars ($[***]) but less than or equal to [***] US Dollars ($[***]): [***] ([***]%) of
such portion of the Adjusted Net Sales; and 

  

	 	(f)	For the portion of annual aggregate of the Adjusted Net Sales for the calendar year in which the Quarter falls that exceeds [***] US Dollars ($[***]): [***] ([***]%) of the Adjusted Net Sales above [***] US Dollars
($[***]). 

  
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 13.5 Royalty Adjustment. The amounts payable pursuant to Clause 13.2 and Clause 13.4
shall be payable throughout the term of this Agreement regardless whether any Licensed Product is covered by enforceable Patent Rights or not, subject, however to the following: 

 

	 	(a)	For any KTI Patent Right for which protection has been applied pursuant to Article 16 and wherein such KTI Patent Right covering a Licensed Product is rejected, declared invalid or otherwise expires so as to be rendered
unenforceable in a respective country and where a generic version of the Licensed Product has been introduced it is determined by the JSC, based on documentation to be provided by LEO, that resulting lack of Patent Rights has caused a decrease in
the Net Sales or has caused an increase in the marketing and branding spend for such Licensed Product in such country for [***] (to the extent that such marketing and branding spend is not already included in the deductions for the calculation of
Net Sales as set forth in the definition of Net Sales), then the Profit Share payable by LEO to KTI under Clause 13.4 with respect to on-going Adjusted Net Sales of such Licensed Product in the affected country shall be calculated on an annual and
cumulative basis as follows (“Adjusted Profit Share”): 

 Adjusted Profit Share = [***] 

However, the Adjusted Profit Share determined pursuant to this Clause 13.5(a) may not be below [***]%, and shall be adjusted on an annual basis
to take into account further positive or negative changes in marketing costs, Net Sales and presence of generic versions, but cannot exceed the Profit Share. 

The following sets out an example of the foregoing:[***] 

  
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	 	(b)	For any KTI Patent Right for which protection has been applied pursuant to Article 16 and wherein the KTI Patent Rights covering a Licensed Product have not yet been granted in a respective country and where a generic
version of the Licensed Product has been introduced and it is determined by the JSC, based on documentation to be provided by LEO, that such introduction of generic product has caused a decrease in the Net Sales or has caused an increase in the
marketing and branding spend for such Licensed Product in such country for [***] (to the extent that such marketing and branding spend is not already included in the deductions for the calculation of Net Sales as set forth in the definition of Net
Sales), then the Profit Share payable by LEO to KTI under Clause 13.4 with respect to on-going Adjusted Net Sales of such Licensed Product in the affected country shall be calculated on an annual and cumulative basis as follows (“Adjusted
Profit Share”): 

 Adjusted Profit Share = [***] 

  
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 However, the Adjusted Profit Share determined pursuant to this Clause 13.5(b) may not be
below [***]%. This Clause 13.5(b) shall only apply as long as the patent applications are pending for the KTI Patent Rights contemplated by this Clause 13.5(b), and shall be adjusted on an annual basis to take into account further positive or
negative changes in marketing costs, Net Sales and presence of generic versions, but cannot exceed the Profit Share. 
  

	 	(c)	For any Licensed Product for which neither Party has filed patent application in a country but where LEO is Commercializing such Licensed Product in such country and where a generic version of the Licensed Product has
been introduced in such country and it is determined by the JSC, based on documentation to be provided by LEO, that such generic product has caused a decrease in the Net Sales or has caused an increase in the marketing and branding spend for such
Licensed Product in such country for [***] (to the extent that such marketing and branding spend is not already included in the deductions for the calculation of Net Sales as set forth in the definition of Net Sales), then the Profit Share payable
by LEO to KTI under Clause 13.4 with respect to on-going Adjusted Net Sales of such Licensed Product in the affected country shall be calculated on an annual and cumulative basis as follows (“Adjusted Profit Share”):

 Adjusted Profit Share = [***] 

However, the Adjusted Profit Share determined pursuant to this Clause 13.5(c) may not be Adjusted by more than [***]% of the Profit Share and
this Clause 13.5(c) shall not apply until after the fourth anniversary of the commercial launch of such Licensed Product in such country, and shall be adjusted on an annual basis to take into account further positive or negative changes in marketing
costs, Net Sales and presence of generic versions, but cannot exceed the Profit Share. 

  
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 13.6 Calculation of Adjusted Net Sales and Net Proceeds. LEO shall provide to KTI the
following: 
  

	 	(a)	within [***] of the end of each of the first three (3) Quarters of each calendar year, the summary top line consolidated data setting forth the Adjusted Net Sales and Net Proceeds for each such Quarter;

  

	 	(b)	within [***] of the end of each of the first three (3) Quarters of each calendar year, the Quarterly Statement for each such Quarter; and 

 

	 	(c)	within [***] of the end of each of the first three (3) Quarters of each calendar year, a quarterly statement (the “Quarterly Statement”), in the form set forth in Schedule 9 hereto, and within
[***] of the end of each calendar year, a Quarterly Statement for the last Quarter and an annual reconciliation (the “Annual Statement”) in the same format as the Quarterly Statement but with the full annual figures (together with
any reconciliation payment due based on the annual calculation of the amounts payable pursuant to Clause 13.4), setting out (i) the Net Sales of Licensed Products for such Quarter or calendar year, as the case may be, together with all of the
Permitted Deductions relating to that Quarter or calendar year, as the case may be, and (ii) the Net Proceeds for such Quarter or calendar year, as the case may be, and (iii) such other information reasonably necessary for KTI to assess
the amounts payable to KTI pursuant to this Agreement. 

 In the event KTI becomes a reporting issuer subject to securities rules (e.g. TSX,
NASDAQ or SEC) the foregoing periods shall be adjusted according to mutual agreement to accommodate KTI’s reporting obligations. 

13.7 Third Party Payment. If during the term of the Agreement it is established by a final non-appealable court order or legal opinion
addressed to the Parties by a law firm retained by both Parties that a Licensed Product infringes the patent(s) of a Third Party so that the development, Manufacturing or Commercialization of such Licensed Product requires a license from such Third
Party which is approved the by the JSC (a “Third Party License”) in 

  
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order to avoid infringement of such Third Party patent(s), then to the extent any amount is payable by LEO to such Third Party under such Third Party License, such amount paid by LEO shall be
treated as a Permitted Deduction item when calculating Adjusted Net Sales. 
 14. PAYMENT TERMS 

14.1 Currency and Timing of Payments. All payments due to KTI under this Agreement shall be made in US Dollars within the relevant
period, or if no period is stipulated, within [***] of receipt of the relevant and correct invoice. In the event that LEO receives payment in respect of Net Sales in a currency other than US Dollars, the relevant amount payable shall be calculated
in US Dollars at the rate of exchange of [***] service fixed by [***] on the [***] in which the amount accrues. Payments shall be made by electronic wire transfer of immediately available funds directly to such account of KTI which KTI may specify
by written notice to LEO from time to time. 
 14.2 Invoicing of Development Costs. All invoices must in sufficient detail reflect
the actual work carried out and the Out-of-Pocket Costs incurred during the period of the invoices to enable LEO to approve the invoice. In this respect, KTI shall track participation of their employees in the conduct of the research and development
activities on a FTE basis and upon request, shall provide LEO with the [***] invoices written records evidencing the FTE’s participation. LEO shall be entitled to audit such records during ordinary business hours no more than [***] each [***]
for verification purposes. Out-of Pocket Costs shall be invoiced to the extent reasonably possible with the [***] invoice covering the [***] when the cost has actually been incurred, however no later than with the invoice for the subsequent [***].
Invoices covering Out-of-Pocket Costs must be kept by KTI for a period of [***] and copies shall be provided to LEO upon request. 
 14.3
Taxes. The Parties acknowledge that the payments to KTI contemplated by this Agreement are not currently subject to any withholding taxes, provided that KTI furnishes LEO with a certificate of its tax residence as required under Danish Law.
In the event of any new Law or change in Law which would require LEO to withhold or pay any taxes on behalf of KTI with respect to any payments to it hereunder, (a) LEO shall promptly, upon knowledge thereof, notify KTI and use its reasonable
endeavours to assist KTI in its efforts to obtain a credit for the taxes so paid and to secure application of the most favourable rate of 

  
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 withholding tax under applicable Law, and each Party shall furnish the other Party with appropriate documents
to secure such application. LEO shall furnish KTI with proper evidence of the taxes so paid and (b) if requested by KTI, LEO shall use reasonable efforts to accommodate any reasonable tax planning of KTI in order to eliminate or minimize the
effect of any such withholding taxes and carry out any transactions or operations reasonably required to effect such tax planning provided it is in compliance with Laws and does not adversely affect the legal, financial, commercial or tax situation
of LEO or any of its Affiliates or adversely affect the JV Business. 
 14.4 Interest. Where KTI does not receive payment of any sums
properly due and payable to it hereunder within the relevant period, interest shall accrue on the sum due and owing at the rate equivalent to an annual rate of [***] percent ([***]%) over the then current base rate of One Month LIBOR, calculated on
a daily basis, without prejudice to KTI’s right to receive payment within the relevant period. 
 14.5 Record Keeping and Audit.
LEO shall, and shall ensure that its respective Affiliates, Distributors and sub-licensees (if any) shall, keep true and accurate records and books of account in accordance with DK-GAAP and containing all data
necessary for the calculation of the amounts payable to KTI (and deductions from such amounts payable) pursuant to this Agreement. Such records and books of account shall be kept for at least [***] following the end of the calendar year when such
amounts become due hereunder. For the sole purpose of verifying amounts due under this Agreement, KTI shall be entitled, not more than [***] per [***], to have any statement that it receives from LEO for the prior [***] audited by an internationally
recognised independent accounting firm identified by KTI and reasonably acceptable to LEO. KTI shall provide LEO with at least [***] notice of such audit, which shall be conducted during normal business hours at the location(s) where LEO maintains
such records. LEO shall make available to the independent accountant those books and records required for the purpose of that audit and certification, and the statements so certified shall be final and binding between the Parties. The books and
records audited by the accountant and the results of the audit shall be the Confidential Information of LEO and accountant shall keep such books, records and results confidential and shall only inform KTI whether the amounts paid properly reflect
the amounts that should have been paid hereunder and if not, by how much KTI has been over or under paid. KTI shall be responsible for the cost of the independent accountants’ services in connection

  
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with such audit; provided that LEO shall reimburse KTI for such costs if the results of the audit conclude that it has understated the monies payable to KTI by more than [***] percent
([***]%) Any outstanding under-payments or over-payments which are identified as a result of carrying out the audit and certification shall be paid to or by KTI within [***] after LEO receives the audit results. No inspection shall take place more
than [***] after the submission of the Annual Statement to which it relates. 
 14.6 DK GAAP. Based on information provided by LEO,
there are no material differences between DK GAAP and IFRS in respect of the information and data related to revenue recognition (including all applicable deductions) to be compiled by LEO and submitted to KTI pursuant to this Agreement. Each Party
shall immediately be notified upon knowledge by the other Party should any such material differences arise in future. Should any such material differences arise in the future the Parties shall mutually discuss the consequences of such material
differences, and agree on the required adjustments in order for LEO henceforth to compile and deliver to KTI all such information and data in accordance with IFRS. If the Parties do not agree upon the adjustments to be made, then either Party may
send written notice to the other Party (the “Dispute Notice”) in order to have such dispute resolved by the Expert pursuant to Clause 37.3, whose decision with respect thereto shall be final and binding upon the Parties. To the
extent the Parties agree upon the adjustments required or if the Expert determines the adjustments, if any, required, then any reference in this Agreement to DK GAAP shall be deemed to be a reference to DK GAAP, as reconciled to account for such
adjustments in accordance with IFRS. 
 15. OWNERSHIP OF INTELLECTUAL PROPERTY 

15.1 Excluded IP. Except for those rights expressly granted under this Agreement, nothing herein shall be construed as creating,
granting or conveying to one Party any licence, right, title or other interest in or to any Intellectual Property or Know-How owned or controlled by the other Party or its Affiliates: (i) existing prior to the Effective Date; or
(ii) independently discovered and developed during the term of this Agreement by such other Party or its Affiliates other than in performance of its obligations under this Agreement and without use of such other Party’s Intellectual
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 15.2 Inventions. Ownership of all right, title and interest in any Inventions shall be
as follows: 
  

	 	(a)	KTI or its Affiliates shall have exclusive ownership of all KTI Inventions; 

  

	 	(b)	LEO shall have exclusive ownership of all LEO Inventions; and 

  

	 	(c)	KTI and LEO shall jointly own all Joint Inventions. 

 15.3 Inventorship. Inventorship of
Joint Inventions, KTI Inventions and/or LEO Inventions shall be determined for the purposes of this Article 15 in accordance with the applicable patent Laws of the United States of America. Each Party shall ensure that each of the employees and
Agents of such Party and of such Party’s Affiliates acting on behalf of such Party or Affiliate in performing any obligations under this Agreement, is bound by a written agreement to assign to such Party all Intellectual Property developed,
conceived, created or reduced to practice by such employees and Agents. 
 15.4 Cooperation with Respect to Inventions. Each Party
shall promptly inform the other Party of all Inventions related to a Licensed Product arising during the term of this Agreement. KTI shall have the right to file for patent protection for all KTI Inventions and Joint Inventions and LEO shall have
the right to file for patent protection for all LEO Invention, in the manner set forth in Article 16 and each of the Parties agrees to undertake such acts as may be reasonably necessary to perfect the Parties respective interests in and to such
Inventions as provided for in Clause 15.2 (including any patent applications or patents filed during or after the term of this Agreement to protect such Inventions), which shall include ensuring that the filing Party has reasonable and timely access
to any employees, Agents or consultants of the other Party who were involved in the research leading to such Inventions to, amongst other things, establish inventorship and determine the scope and patentability of the relevant Inventions and causing
the execution of any assignments or other documents necessary to perfect the Parties’ interests in such Inventions. Any filing for patent applications for Joint Inventions shall be agreed by the JSC and shall be filed in the name of and on
behalf of both LEO and KTI. Each of LEO and KTI shall hold all information it presently knows or acquires under this Article 15 that is related to all such patents and patent applications as confidential, subject to the provisions of this
Agreement. 

  
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 15.5 Assignment of Intellectual Property rights. Subject to the licenses and other
rights specifically provided in this Agreement, to the extent any Party or any of its Affiliates or any LEO Sub-licensees or Distributors obtains any title or similar interest in any Intellectual Property or Know-How that is to be owned by the other
Party in accordance with the terms and conditions of this Agreement, such first Party hereby assigns and, to the extent such assignment cannot be made at present, agrees promptly to assign or caused to be assigned (notably, by its Affiliates, LEO
Sub-licensees or Distributors, as applicable) to such second Party all of the first Party or its Affiliates or, as applicable, the LEO Sub-licensee or Distributors’ title and other interest in and to such Intellectual Property and Know-How
throughout the world. The first Party shall execute and procure or caused to be executed and procured by its Affiliates or, as applicable, LEO Sub-licensees or Distributors, such documents including short-form assignments and assignments of patent
applications and patents, and take such other actions as may be reasonably requested from time to time by the second Party to obtain for its own benefit appropriate protections for Intellectual Property and Know-How in any and all countries with
respect to such Intellectual Property or Know-How, or otherwise to transfer or confirm the transfer of such Intellectual Property and Know-How for the benefit of the second Party. 

16. MANAGEMENT OF PATENT RIGHTS 
 16.1
Priority Applications and Patent Applications for Patent Rights. 
  

	 	(a)	KTI shall be responsible for, and undertake (whether itself, through Affiliates or Third Parties), the filing, prosecution and maintenance of any patent applications relating to the KTI Patent Rights in accordance with
this Article 16, and LEO shall be responsible for, and undertake (whether itself, through Affiliates or Third Parties), the filing, prosecution and maintenance of any patent applications relating to the LEO Inventions in accordance with this Article
16. For the purposes of this Agreement, the Party responsible for such filing, prosecution and maintenance is referred to as the “Filing Party” and the other Party is referred to as the “Non-Filing Party”.

  
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	 	(b)	Each Party shall have, to the extent applicable, the first option to prepare and file patent applications covering the Patent Rights it is responsible for, including patent applications filed or to be filed under The
Patent Cooperation Treaty or as a US Provisional Patent Application or national patent application (each, a “Priority Application”) in order to obtain patent protection in the Territory. If the Filing Party has notified
the Non-Filing Party that it has no interest in or intent to prepare or file the Priority Application in any country in the Territory and it is otherwise permitted hereunder, then the Non-Filing Party shall have the right to file such Priority
Application in the Territory, at its sole cost, expense and discretion. If it exercises such right and files such Priority Application, it will become the “Filing Party” for the purposes of this Agreement with respect to such Priority
Application. 

  

	 	(c)	Within [***] after the earliest filing date of a Priority Application, the Filing Party shall provide the Non-Filing Party with a written list of countries in the Territory which must include at least the countries in
the Core Country List (“Country List”) where the Filing Party intends to file patent applications that claim priority from the given Priority Application. The Non-Filing Party, as promptly as
practicable, shall notify the Filing Party in writing of any additional countries, if any, in the Territory where the Non-Filing Party requests that patent applications be filed or any countries (other than Core Countries) in which it does not want
to have patent applications filed. Based on this input the Filing Party shall prepare a final filing list containing the countries in the Core Country List and those other countries agreed to by both Parties (“Mutually Agreed to
Countries”) as well as any such additional countries selected by the Non-Filing Party or Filing Party, as the case may be, that are not within the Mutually Agreed to Countries. If the Non-Filing Party fails to respond within [***] of
receipt of the Country List, then the Filing Party shall be free to initiate patent applications, at the Filing Party’s sole discretion in the Territory. 

  

	 	(d)	In the case of Priority Applications or patent applications in respect of Joint Inventions only, the Filing Party shall promptly prepare and send to the Non-Filing Party a draft
of such Priority Application or patent application for the Non-Filing Party’s comment and approval. The Non-Filing Party shall confirm receipt of the draft
applications and provide its comments on such draft to the Filing Party within [***] after receipt thereof, failing which the Filing Party shall be free to file such application. Any comments provided by the Non-Filing Party within such timeframe
shall be considered in good faith by the Filing Party. 

  
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	 	(e)	The Out-of-Pocket Costs in connection with Priority Applications, patent applications and annual maintenance shall be covered as follows: 

 

											
	 	  	 	  	Priority Application	  	Patent applications
in Mutually
agreed
countries	  	Additional
Patent applications
LEO
requested but
not mutually
agreed countries	  	Additional
Patent Applications
KTI
requested but
not mutually
agreed countries
	 KTI Invention

covering Product

Specific Patents
	  	 Filing Party
 Cost for Filing

Cost for Maintenance
	  	KTI
 shared (**)
shared (**)
	  	KTI
 shared (**)

shared (**)
	  	KTI
 LEO
 LEO
	  	KTI
 KTI
 KTI

						
	 KTI Invention

covering KTI
 technology platform

patent rights
	  	 Filing Party
 Cost for Filing

Cost for Maintenance
	  	KTI
 KTI
 KTI
	  	KTI
 KTI
 KTI
	  	KTI
 LEO
 LEO
	  	KTI
 KTI
 KTI

						
	LEO Invention	  	 Filing Party
 Cost for Filing

Cost for Maintenance
	  	LEO
 LEO
 LEO
	  	LEO
 LEO
 LEO
	  	LEO
 LEO
 LEO
	  	LEO
 KTI
 KTI

						
	Joint Invention	  	 Filing Party
 Cost for Filing

Cost for Maintainance
	  	KTI
 shared (**)

shared (**)
	  	KTI
 shared (**)

Shared (**)
	  	KTI
 LEO
 LEO
	  	KTI
 KTI
 KTI

  

	(**)	refers to Product Specific Patents. Shared cost shall be done through a single invoice to the Filing Party, with reimbursement by the Non-Filing Party for its share to the Filing
Party. 

 16.2 Abandonment of Patent Rights. If a Party, during the term of this Agreement, determines in its sole
discretion to permanently abandon (i.e. without any possibility of reinstatement or, similarly, not to maintain) any Patent Rights for which it is the Filing Party under this Article 16, then such Party shall, subject to any Third Party rights
existing at the relevant time, provide the other Party with at least [***] prior written notice in advance of any permanent abandonment (i.e. without any possibility of reinstatement or similarly, decide not to maintain such Patent Rights) to enable
such Party, at its sole cost and expense, to become the “Filing Party” with respect to such Patent Right for the purpose of this Agreement and continue the prosecution or maintenance of such Patent Right in the name of the original Filing
Party. KTI shall not permanently abandon (i.e. without any possibility of reinstatement or, similarly, decide not to maintain such Patent Rights) the Patent Rights covering the Licensed Products in the Core Country List without the prior consent of
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 16.3 No Impairment. LEO shall not directly do, or omit to do, anything in its use of
the KTI Patent Rights that would injure the reputation of KTI or the KTI Patent Rights. KTI shall not directly do, or omit to do, anything in its use of Patent Rights of LEO that would injure the reputation of LEO or the Patent Rights of LEO. 

16.4 Prosecution and Maintenance of the Patent Rights. Each Party shall be responsible for the maintenance, prosecution and defence of
the Patent Rights for which it is the Filing Party under this Article 16. For any KTI Patent Rights already filed or obtained by KTI before the Effective Date and not abandoned (without any possibility of reinstatement) pursuant to Clause 16.2, KTI
shall be responsible for the prosecution and defence and shall be considered the Filing Party thereof. Each Party shall keep the other Party informed on a continuous basis about its interactions with the prosecution authorities and its instructed
external advisers (such as patent agents) and any other prosecution matters. Each Filing Party shall allow the other Party a reasonable delay to review and comment on all legal proceedings and all proposed changes shall be considered by the Filing
Party in good faith. Any disagreement regarding aspects of patent prosecution and maintenance with respect to Joint Inventions shall be referred to the Alliance Managers for consideration, and if required to the JSC. 

16.5 Notification of Infringement. Each Party shall promptly notify the other Party of any actual or potential infringement of any
Licensed Technology, KTI Invention, Joint Invention, LEO Invention or LEO Background Technology (but only to the extent the LEO Background Technology is the object of any Development Project or Development Plan) by a Third Party in the Territory
which comes to that Party’s attention during the term of this Agreement and inform the other Party about all facts and circumstances relevant for the infringement. Each Party shall promptly notify the other Party upon receiving notification
that any Licensed Patent Right or Invention in the Territory is subject to a declaratory judgment action alleging non-infringement, invalidity, unenforceability or any other diminution of or encumbrance on any such Licensed Patent Right or Patent
Rights covered by such Invention. The Parties shall hereinafter consult and cooperate fully to determine a course of action, including but not limited to the commencement of legal action to terminate any such infringement. 

  
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 16.6 Infringement in Territory. 

(a) Subject to Clause 16.6(b), in the Territory, each Filing Party shall have the initial right, but not the obligation, to retain and use
counsel of its choice at its own cost to enforce the Patent Rights in the Field for which it is the Filing Party or defend any declaratory judgement action with respect thereto. The Filing Party shall have sole control of any decisions or other
aspects of the action, subject to Clause 16.7, and the other Party shall, upon request, give to the Filing Party such reasonable assistance as the Filing Party may reasonably request, including by signing or executing any necessary documents
and consenting to its name being used in the proceedings; provided that the Filing Party shall reimburse the other Party for any reasonable Out-of-Pocket Costs incurred while providing such assistance and provide an indemnity in respect of any costs
order made against such other Party by reason of lending its name to the proceedings. The Filing Party shall keep the other Party reasonably informed of the progress of the action and shall consider the comments and observations of the other Party
in prosecuting the action, subject, however, to the need to preserve solicitor-client privilege. If the Filing Party does not institute any such action within [***] of a notice from the other Party requiring such action, then such other Party shall
have the right, but not the obligation, at its own cost, to commence proceedings in the Territory regarding the infringement or declaratory judgment action. The other Party shall, subject to Clause 16.7, have sole control of any decisions or other
aspects of the action and the Filing Party shall, upon request, give to the other Party such reasonable assistance as the other Party may reasonably request provided that the other Party shall reimburse the Filing Party for any reasonable Out-of-Pocket Costs incurred while providing such assistance. Notwithstanding the foregoing, nothing in this Clause 16.7 shall oblige the Filing Party to lend its name to, or
be joined in, any proceedings commenced by the other Party pursuant to the foregoing. The Non-Filing Party shall keep the Filing Party informed on an on-going basis about any enforcement or defence of such Patent Rights by such Party outside the
Field, to the extent that such enforcement or defence has or may have an adverse impact upon the use of such Patent Rights for Licensed Products by the Parties within the Field. 

  
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 (b) Notwithstanding the foregoing, to the extent any action contemplated in Clause 16.6(a)
involves a Product Specific Patent, then for the purpose of Clauses 16.6(a) and 16.7, LEO shall be deemed to be the Filing Party. 
 16.7
Settlement. In no case shall the prosecuting Party, without the prior written consent of the other Party, make any admission or enter into a settlement, consent to judgement or other voluntary final disposition in connection with any such
proceedings under this Article 16 that: (i) extends, or purports to extend, a Party’s rights under any Intellectual Property or Know-How beyond the rights granted pursuant to this Agreement, (ii) makes any admission regarding
wrongdoing by a Party, an Affiliate or any licensee, or the invalidity, unenforceability or absence of infringement of any Party’s rights under any Intellectual Property or Know-How licensed pursuant to this Agreement; (iii) subjects a
Party to an injunction or other equitable relief; or (iv) obligates a Party to make a monetary payment; in all cases without the prior written consent of such Party[***]. In no case may LEO enter into any settlement or consent judgment or other
voluntary final disposition that limits KTI’s rights under this Agreement other than as expressly stated herein. 
 16.8
Recovery. Any damages or award (including any award of costs) made in the proceedings shall be used first to reimburse each Party for any Out-of-Pocket Costs that it may have incurred in connection with the infringement proceedings (including
any amounts paid by the prosecuting Party to the other Party as reimbursement for expenses related to assisting in the proceedings) and any remaining amounts shall be retained by the Party to which they were awarded, save that any award paid to LEO
with respect to the Territory shall, following reimbursement of costs and expenses in accordance with the foregoing, be treated as Adjusted Net Sales and payments shall be made to KTI accordingly. 

16.9 Interferences and Other Proceedings. 
  

	 	(a)	In the event that any Third Party interference, revocation, invalidity action post-grant review or opposition proceedings are commenced in the Territory against one of the Parties with respect to any Party’s rights
under any Intellectual Property licensed pursuant to this Agreement, or that a Party considers it desirable to contest interference proceedings with a Third Party in respect to such Intellectual Property and or to seek a declaration of
non-infringement with regard to any Licensed Product under any Third Party patent rights, the Parties shall consult with each other with a view to agreeing the strategy to be adopted. 

  
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	 	(b)	To the extent that the validity, existence, inventorship or ownership of any of the Platform Technology Patents is in issue in such proceedings, KTI shall have the sole control of decisions and proceedings directly
relating to those issues and LEO shall give KTI such reasonable assistance as KTI may reasonably request in the defence of such claims, provided that KTI shall reimburse LEO for its Out-of-Pocket Costs incurred in relation thereto and KTI shall bear
the cost of any such proceedings. 

  

	 	(c)	To the extent that the validity, existence, inventorship or ownership of any Product Specific Patents or any Patent Rights in respect of any LEO Background Technology or LEO Invention is in issue in such proceedings,
LEO shall have the sole control of decisions and proceedings directly relating to those issues, and KTI shall give LEO such reasonable assistance as LEO may reasonably request in the defence of such claims, provided that LEO shall reimburse KTI for
its Out-of-Pocket Costs incurred in relation thereto and LEO shall bear the cost of any such proceedings. 

 16.10 Notice
and Defence of Third Party Infringement Claims. If during the term of this Agreement any Party receives any notice, claim or proceedings from any Third Party alleging infringement of that Third Party’s Intellectual Property or Know-How by
reason of Manufacture, Commercialization or use of any Licensed Product, the Party receiving that notice shall, subject to any obligation of confidentiality that it may owe to a Third Party or subject to any need to preserve solicitor-client
privilege, immediately notify the other Party of the notice, claim or proceeding and shall advise, to the extent such information is available, of all facts and circumstances relevant to the defence of the claim. LEO shall have the right at its
expense, to control the defence and settlement of such claim of patent infringement relating to any Product Specific Patents or LEO Inventions provided however, that KTI at its sole discretion shall have the right to collaborate with LEO in any such
resolution and to be represented by counsel of its own choice at its own expense if such claim adversely affects the freedom to operate under any KTI Patent Rights. Upon request, KTI shall cooperate and provide all reasonable requested assistance
and documentation for the defence of such infringement claim. 

  
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 16.11 Product Marking. The Parties agree that, where expressly allowed by applicable
Law or to the extent commercially reasonable, Licensed Products and/or their packaging (and all virtual markings where, in the Territory, they have the same effect as physical markings), where appropriate, shall bear the words “Patent
Pending” or “Patented” together with the numbers of relevant patents granted in the country where such Licensed Product is to be sold, as the case may be. KTI is to inform LEO of relevant patents. 

17. TRADE MARKS 
 17.1 Trade Marks.
Nothing in this Agreement shall operate to grant to KTI any right, title or interest in any LEO Trade Mark, nor authorise KTI to affix any LEO Trade Mark to any product, except as expressly authorised by LEO in writing. Nothing in this Agreement
shall operate to grant to LEO any right, title or interest in any trade mark belonging to KTI, nor to affix any trade mark belonging to KTI to any product, except as expressly authorised by KTI in writing or as provided in this Agreement (including
pursuant to Clauses 2.3 and 17.3). 
 17.2 Ownership of Trade Marks and KTI House Marks. The Parties agree that [***] trade mark
(other than the [***]) shall be applied for, and registered in the name of, LEO and shall be owned by LEO. Upon request by LEO and at the expense of LEO, KTI shall undertake such acts as may be reasonably necessary to assign to LEO or to otherwise
perfect LEO’s interests in and to any trade marks. KTI agrees that any goodwill arising through the use of any trade mark other than the [***] shall accrue to, and vest exclusively with, LEO. 

17.3 Use of Trade Marks. LEO may, upon prior written notice to KTI, use such trade marks as it may, in its discretion, select in
connection with the use and Commercialization of Licensed Products in the Territory, provided however that KTI’s name may appear on the label and packaging of all Licensed Products to indicate that the Licensed Products are under license by
KTI; such appearance being always subject to the exclusive decision and approval by LEO to ensure proper use of LEO Trade Marks. LEO shall consider in good faith any request of KTI in relation to the use of such trade marks. 

  
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 17.4 No Impairment. Neither Party shall do, or omit to do, anything in its use of the
LEO Trade Mark, KTI Trade Marks or KTI House Marks that would injure the reputation of the other Party. During the Term, neither Party will apply for or aid or abet others to apply for, trade mark registrations in the Territory or elsewhere of any
mark or design which includes the LEO Trade Marks, KTI Trade Marks or KTI House Marks (or any variation that is likely to infringe or be confusingly similar with the LEO Trade Marks, KTI Trade Marks or KTI House Marks), alone or in combination,
except with the other Party’s prior written consent. 
 17.5 Infringement of Trade Marks. In the event that either Party becomes
aware of any actual or threatened infringement or misappropriation of any trade mark by a Third Party in the Territory, that Party shall promptly inform the other of such infringement, and the Parties shall consult with each other in good faith to
determine jointly the best way to prevent the infringement, including, by instituting a legal proceeding against such Third Party; such consultations subject, however, to the need to preserve solicitor-client privilege. LEO shall have the first
right, at its own cost, to defend and enforce the trade mark in the Territory and shall take such steps as it considers appropriate in the enforcement of the trade mark, or in respect of any actual or threatened infringement of any trade mark in the
country in question. If LEO elects not to take any action which KTI considers appropriate in relation to a KTI Trade Mark only within [***] of being requested to do so by KTI, KTI shall have the right, at its own cost, to bring proceedings in its
own name in respect of the infringement of the KTI Trade Mark. The Party bringing proceedings in accordance with the foregoing shall have sole control of any decisions or other aspects of the action, subject to Clause 17.7, and the other Party
shall, upon request, give to the prosecuting Party such reasonable assurances as the prosecuting Party may reasonably request, including by signing or executing any necessary documents and consenting to its name being used in the proceedings;
provided that the prosecuting Party shall reimburse the other Party for any reasonable Out-of-Pocket Costs incurred while providing such assistance. The prosecuting Party shall keep the other Party reasonably informed of the progress of the action
and shall consider the comments and observations of the other Party in prosecuting the action. 

  
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 17.6 Recovery in respect of Infringement of Trade Marks. Any and all amounts recovered
with respect to infringement or misappropriation action brought by KTI or LEO under either of Clause 17.4 shall be applied first to reimburse the Parties for their
Out-of-Pocket Costs (including attorneys’ fees) in prosecuting such action, or pro rata portions thereof if such costs exceed the amount recovered. The remainder
shall be divided between the Parties as follows: if the action concerns a KTI House Mark, with [***] percent ([***]%) going to the Party that funded the action and [***] percent ([***]%) going to the other Party and in the case of all other trade
marks, such amount shall be retained in its entirety by LEO. 
 17.7 Settlements. In the event that any action or suit shall be
brought against KTI or LEO in connection with the KTI Trade Marks for alleged infringement or misappropriation of a Third Party’s trade mark, neither KTI nor LEO shall, without the prior written consent of the other Party, enter into a
settlement agreement that will restrict or limit the rights to the trade mark granted to LEO hereunder. LEO shall be entitled to settle any action or suit brought against it in respect of any other trade marks in its absolute discretion and KTI
shall have no right to settle any such action or suit without the prior written consent of LEO. 
 18. TERM AND TERMINATION 

18.1 Term of Agreement. This Agreement shall come into effect on the Effective Date and unless earlier terminated pursuant to this
Article 18, shall remain in effect in perpetuity until (a) terminated in accordance with the terms of this Agreement or, (b) in the case of any Business Segment, until (i) Clause 3.3 applies, or (ii) such Business Segment may be
pursued by a single Party pursuant to Clause 5.2(a)(v), 5.2(b)(vi), 10.1(c), 10.2(a) or 10.2(b), as the case may be, or (iii) such Business Segment is earlier terminated pursuant to Clause 18.2, 18.3 or 18.5. 

18.2 Termination by LEO upon completion of the US Acne Study. LEO shall have the right to terminate this Agreement in full, or in part
with respect to the First Licensed Product only, in writing, with immediate effect if upon receipt and evaluation of the final study report describing and concluding on the Study Results of the Acne Study to be conducted in the United States of
America, it determines in its own discretion that the continuation of the collaboration is not feasible for whatever reason. This right of termination may only be exercised within forty five (45) days of receipt of such final study report. Upon
giving notice of termination under this Clause 18.2, LEO shall not be obligated to initiate or carry out any further development and Commercialization activities during the notice period with respect to the First Licensed Product in case of partial
termination, or with respect to all Licensed Products in case of full termination, but can initiate the winding down of its activities. The Parties shall collaborate regarding the winding down and the steps for the implementation of the consequences
of termination as set forth in Article 19. 

  
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 18.3 Termination by LEO 

 

	 	(a)	Without Cause. At any time after the later of the expiration of the delay by LEO to terminate pursuant to Section 18.2 and the second
(2nd) anniversary of the Effective Date, LEO shall have the right to terminate this Agreement without cause in whole or with respect to any one or more indications or Regions, by giving
twelve (12) months prior written notice to KTI, subject to the following (which shall also apply in the case of termination of this Agreement pursuant to Clause 28.2: 

 

	 	(i)	Upon giving such notice of termination of this Agreement, LEO shall not be obligated to initiate or carry out any further development (except for already committed costs pursuant to Development Projects) or initiate any
new Commercialization activities during the notice period with respect to the terminated Business Segments but can initiate the winding down of its activities; 

  

	 	(ii)	Ongoing pre-clinical development activities shall continue until a reasonable “break point” that would make it possible to wind-down properly for transfer and potential continuation of the activity at a later
point by KTI. On-going activities sub-contracted to a Third Party shall be completed to the extent contractually committed and non-cancelable, provided that such activities can be completed prior to termination; 

 

	 	(iii)	Notwithstanding the foregoing and to the extent not prohibited by Law, LEO shall wind-down all on-going Clinical Studies which cannot be completed (defined as data-base lock) prior to termination, taking into account
the health and safety of subjects enrolled therein and Good Clinical Practice. LEO shall continue to Commercialize Licensed Products in countries where such Licensed Products had already been launched prior to notice of termination however not
subject to the same level of efforts as if Commercialization has not been terminated in order to prepare the winding down of the activities to the end of the notice period; and 

  
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	 	(iv)	The Parties shall collaborate regarding the winding down and the steps for the implementation of the consequences of termination as set forth in Article 19. 

 

	 	(b)	Patent Challenge. Without prejudice to any other remedies available to it at law or in equity, LEO shall have the right to give ninety (90) days notice of termination of this Agreement in writing to KTI if
at any time KTI or its Affiliates challenges or denies, directs a Third Party to challenge or deny, or knowingly assists a Third Party in challenging or denying, the validity or enforceability of any of the Patent Rights of LEO in or to any LEO
Technology, and this Agreement shall terminate upon expiration of such ninety (90) days notice period. 

 18.4
Termination for Breach. Subject to Clauses 9.2, 18.5, 18.6 and 18.7, either KTI on the one hand or LEO on the other hand (the “Terminating Party”) shall have the right to terminate this Agreement in accordance with the
following provisions of this Clause 18.4 in the event that the other Party commits a material breach of this Agreement, including a material breach of a Development Plan, a material failure to act in the best interest of the Joint Venture Business,
repeated breaches of similar covenants, breach of warranty or material failure to fulfil any diligence obligations hereunder. The non-breaching Party shall provide written notice to the Party that committed the breach (the “Defaulting
Party”), which notice shall clearly describe the nature of the breach. The Defaulting Party shall have ninety (90) days (or such longer period as may be reasonably necessary to the extent the remedy of such breach is dependent upon the
actions of a Third Party) in which to cure the breach. If the Defaulting Party fails to cure the breach within such ninety (90) day period (or such longer period as set forth above), then without prejudice to any other remedies available to it
at law or in equity the Terminating Party shall have the right to immediately terminate this Agreement upon written notice to the Defaulting Party and in case KTI is the Defaulting Party, LEO has also the option to limit its termination right to
solely cover the R&D Obligations in which 

  
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case the provisions of Clause 19.5 shall apply accordingly to such partial termination. If the alleged breaching Party disputes in good faith the existence or materiality of a breach specified in
a notice provided by the other Party, and such alleged breaching Party provides the other Party notice of such dispute within such ninety (90) day period (or such longer period as set forth above), then the non-breaching Party shall not have
the right to terminate this Agreement under this Clause 18.4 unless and until the arbitrators, in accordance with Clause 37.4, have determined that the alleged breaching Party has materially breached this Agreement. It is understood and agreed that
during the pendency of such dispute, all of the terms and conditions of this Agreement shall remain in effect and the Parties shall continue to perform all of their respective obligations hereunder provided, however, that no Party shall be obligated
to continue performing any services pursuant to a Development Plan for which it is not being paid. 
 18.5 Termination by KTI.
Without prejudice to any other remedies available to it at law or in equity: 
  

	 	(a)	in the event KTI has the right to terminate this Agreement in whole or with respect to any one or more indications or Regions, pursuant to Clause 9.2, then KTI may proceed with such termination upon written notice to
LEO within 30 days of the decision of the arbitrator; and 

  

	 	(b)	KTI shall have the right to give ninety (90) days notice of termination of this Agreement in writing to LEO if at any time LEO or its Affiliates challenges or denies, directs a Third Party to challenge or deny, or
knowingly assists a Third Party in challenging or denying, the validity or enforceability of any of the KTI Patent Rights, and this Agreement shall terminate upon expiration of such ninety (90) days notice period. 

18.6 Insolvency. Subject to Clause 18.7, either Party shall have the right to terminate this Agreement forthwith upon giving written
notice of termination to the other Party (the “Insolvent Party”) upon the occurrence of any of the following events: 
  

	 	(a)	the Insolvent Party suspends or threatens to suspend payment of its debts as they fall due in circumstances where the Insolvent Party is unable to pay its debts within the meaning of the relevant bankruptcy or
insolvency laws; 

  
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	 	(b)	the failure to discharge or dismiss a petition for the winding-up of the Insolvent Party within sixty (60) days after the filing thereof; 

 

	 	(c)	a proposal is made or a nominee or supervisor is appointed for a composition in satisfaction of the debts of the Insolvent Party or a scheme or voluntary arrangement of its affairs within the meaning of the relevant
bankruptcy or insolvency laws, or the Insolvent Party enters into any composition or voluntary arrangement for the benefit of its creditors, or proceedings are commenced in relation to the Insolvent Party under any Law relating to the
re-construction, deferment or re-adjustment of all or substantially all of the Insolvent Party’s debts; 

  

	 	(d)	the Insolvent Party takes any action, or any legal proceedings are started whether by a Third Party or not, for the purpose of the winding up or dissolution of the Insolvent Party, other than for a solvent
reconstruction or amalgamation; 

  

	 	(e)	the appointment of a liquidator, trustee, receiver, administrative receiver, receiver and manager, interim receiver custodian, sequestrator or similar officer, in respect of all or a substantial part of the assets of
the Insolvent Party; 

  

	 	(f)	an effective resolution being passed for the winding-up of the Insolvent Party; 

  

	 	(g)	a distress, execution or other legal process being levied against all or substantially all of the assets of the Insolvent Party, and not being discharged or paid out in full within ten (10) Business Days;

  

	 	(h)	the occurrence in respect of the Insolvent Party of any event in any jurisdiction to which it is subject having an effect similar to that of any of the events referred to in Clauses 18.6(a) through 18.6(g); or

  

	 	(i)	the Insolvent Party ceases or threatens to cease to carry on all or a substantial part of its business or operations necessary for the completion of its obligations under this Agreement. 

  
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 18.7 Option. In the event that KTI becomes an Insolvent Party, as contemplated in
Clause 18.6, then in lieu of termination, LEO may, at its option, to be exercised by notice (the “Option Notice”) in writing to KTI within [***] of receipt of notice from KTI that it is an Insolvent Party, (a) to terminate
the R&D Obligations and/or (b) to purchase all of the remaining right, title and interest of KTI in and to the JV Business, including, KTI’s remaining rights and interest in and to this Agreement and the Related Agreements, including
all of the rights, title and interests of KTI in the Product Specific Patents in the Field within the Territory at a price equal to the fair market value thereof and if the Parties are unable to agree upon the fair market value thereof within a
period of [***] of the Option Notice, then LEO may by written notice to the Insolvent Party (the “Valuation Notice”) elect to have such fair market value determined in the following manner: 

 

	 	(a)	the Parties shall, within [***] of the Valuation Notice, jointly appoint an independent business valuator or, if they fail to agree on the selection thereof within said [***] period, an independent business valuator
experienced in the valuation of intellectual property assets shall be appointed by a [***] (the valuator jointly appointed or appointed by [***] is herein collectively referred to as a “Valuator”); 

 

	 	(b)	the Valuator shall be an independent internationally-recognized chartered accounting firm or an independent internationally-recognized or nationally-recognized investment banker, fluent in the English language;

  

	 	(c)	the Valuator is engaged as an expert and not as an arbitrator to provide a final, binding and conclusive determination of the fair market value; 

 

	 	(d)	in determining the fair market value, the Valuator shall apply such principles of valuation and use such methods it deems appropriate in the circumstances to express an opinion of such fair market value and not an
estimate; 

  

	 	(e)	if the Valuator specifies a range of values, the fair market value shall be the mid-point of the range; 

  

	 	(f)	the Valuator shall allow each party a reasonable opportunity to make representations regarding the fair market value; 

  
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	 	(g)	the Valuator shall provide the Parties with its determination of the fair market value within [***] following its appointment; 

  

	 	(h)	if necessary, in preparing such valuation, the Valuator shall be entitled to engage the services of such professional valuators or appraisers as the Valuator, in its absolute and unfettered discretion, considers
necessary or desirable to perform valuations or appraisals of the JV Business and of KTI’s remaining right, title and interest therein; 

  

	 	(i)	each Party shall in all respects cooperate with the Valuator in the determination of fair market value and make available to the Valuator all such documents and information with respect to the affairs of the JV Business
as may reasonably be required to make the determination of the fair market value; and 

  

	 	(j)	the costs of the Valuator shall be shared equally by the Parties. 

 19. CONSEQUENCES OF TERMINATION 

19.1 Full Termination. In the event of the full termination of this Agreement by LEO pursuant to Clause 18.2, 18.3(a) or by KTI pursuant
to Clause 18.4, 18.5 or 18.6, then: 
  

	 	(a)	except as necessary for the purpose set forth in Clauses 19.1(c) and 19.1(d), all of the licenses granted in Article 2 shall automatically terminate; 

 

	 	(b)	except as necessary for the purpose set forth in Clause 19.1(c), LEO shall immediately cease Commercialization and Manufacturing of the Licensed Products; 

 

	 	(c)	notwithstanding the foregoing, for a reasonable time period but no longer than one (1) year following termination, LEO shall have the right but no obligation to complete ongoing Manufacturing and sell the Licensed
Products then on hand and solely for such purpose, the licenses granted to LEO in Article 2 shall continue; 

  

	 	(d)	to the extent not prohibited by Law, LEO shall wind-down all Clinical Studies that are still underway, taking into account the health and safety of subjects enrolled therein and Good Clinical Practice, or reasonably
assist KTI in taking over such Clinical Studies if so requested; 

  
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	 	(e)	subject to Clause 19.1(f), LEO shall, at its sole cost and expense, upon completion of the activities under Clauses 19.1(c) and (d), (i) immediately surrender, cancel and rescind or cause to be surrendered,
cancelled and rescinded all Regulatory Approval and Notifications; (ii) voluntarily file with the appropriate authorities all documents that may be required in connection with such surrender, cancellation or rescission; and (iii) if
requested by KTI, cooperate with KTI in effecting the cancellation of any identification of LEO with any authorities or with respect to any Regulatory Approvals and Notifications applicable to each Licensed Product; 

 

	 	(f)	KTI may, in its discretion, have all Regulatory Approvals and Notifications transferred in its name, and LEO shall provide full cooperation in relation thereto and if required provide access to such documents solely
necessary for obtaining Regulatory Approvals and filing Notifications for the Licensed Products; 

  

	 	(g)	LEO hereby irrevocably assigns without charge to KTI all of LEO’s rights, title and interests in and to all LEO Inventions and Joint Inventions which are Non-Severable subject only to a grant back to LEO of a
non-exclusive, perpetual, irrevocable, royalty-free, fully paid-up license to continue the use of such Inventions; 

  

	 	(h)	each Party shall have a non-exclusive, worldwide, perpetual, irrevocable, royalty-free, fully paid-up license under any and all of the other Party’s rights to use the Joint Know-How; 

 

	 	(i)	LEO hereby grants to KTI an option to acquire a non-exclusive, worldwide, perpetual, irrevocable license under all of LEO’s rights in and to the LEO Inventions which are Severable, upon fair market value terms and
conditions to be agreed upon in good faith between the Parties, solely to research and develop, Manufacture and have Manufactured and Commercialize and have Commercialized Licensed Products; 

  
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	 	(j)	in the case of termination pursuant to Clause 18.2 or 18.3(a), LEO hereby grants to KTI an option to acquire a non-exclusive, worldwide, perpetual, irrevocable license under the LEO Background Technology (solely to the
extent such license is required to enable KTI’s use of the assigned Non-Severable Inventions), upon fair market value terms and conditions to be agreed upon in good faith between the Parties, solely to develop, Manufacture and have Manufactured
and Commercialize and have Commercialized Licensed Products; 

  

	 	(k)	LEO hereby grants to KTI an exclusive, worldwide, perpetual, irrevocable, royalty-free, fully paid-up license under all of LEO’s rights in and to the Joint Inventions which are Severable, to develop, Manufacture
and have Manufactured and Commercialize and have Commercialized such Joint Inventions in the KTI Field and each Party hereby grants to the other Party a non-exclusive, worldwide, perpetual, irrevocable, royalty-free, fully paid-up license to use and
exploit such Joint Inventions outside the KTI Field; 

  

	 	(l)	LEO hereby grants to KTI a non-exclusive, worldwide, perpetual, irrevocable, royalty-free, fully paid-up license to use the Study Results solely (i) to comply with all filing requirements as may be required by Law;
(ii) without limiting the application of Clauses 19.1(l)(i) and (iii), to support all Regulatory Approvals and Notifications (other than the full data set of such Study Results as the primary basis to support a submission for Regulatory
Approval of new Licensed Products in the Field) in connection with any KTI Intellectual Property or Know-How; and (iii) to support all Intellectual Property and securities filings necessary in the further development, Manufacturing and
Commercialization of the Licensed Products; furthermore, in the event of full termination according to Clause 18.2, such use may also be for or in connection with the Commercialization of Licensed Products and new Licensed Products;

  

	 	(m)	without limiting the application of Clause 19.1(l), LEO hereby grants to KTI an option to acquire a non-exclusive, worldwide, perpetual, irrevocable license to use the Study Results for Commercialization of new Licensed
Products upon fair market value terms and conditions to be agreed upon in good faith between the Parties; 

  
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	 	(n)	LEO shall reasonably cooperate to ensure the orderly transition of and uninterruption in the Manufacture, supply and Commercialization of the Licensed Products, provided however that KTI shall not receive any right to
use any LEO Trademark; each party shall bear their own cost associated therewith (e.g. changing trademarks and rebranding); 

  

	 	(o)	provided that LEO is Manufacturing, LEO shall supply KTI with Licensed Products at LEO’s fully absorbed cost under a supply agreement to be agreed upon in good faith, until such time that KTI has obtained six
(6) months of stability data on a KTI manufactured batch following a successful technology transfer to KTI at each Party’s respective cost (LEO’s cost however limited to commercial reasonable effort) to enable KTI to set-up its own
Manufacturing processes not dependent upon any proprietary LEO process technology while KTI agrees to collaborate diligently in such technology transfer, however such period not to exceed twelve (12) months from the effective date of
termination, after which the Parties may enter into a longer term supply agreement under mutually agreeable terms; 

  

	 	(p)	in the case of termination pursuant to Clause 18.2 or 18.3, LEO hereby grants to KTI without charge the non-exclusive right to use any and all design registrations in relation to the Licensed Products and in the case of
termination pursuant to Clause 18.4 or 18.5, LEO hereby grants to KTI without charge the exclusive right to use such design registrations in connection with the Licensed Products; 

 

	 	(q)	LEO hereby grants to KTI a non-exclusive, worldwide, perpetual, irrevocable, royalty-free, fully paid-up license to LEO Know How solely to the extent necessary to research and develop, Manufacture and have Manufactured
and Commercialize and have Commercialized Licensed Products; 

  

	 	(r)	the LEO License shall survive such termination in accordance with its terms; 

  
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	 	(s)	in the event any Product Specific Patents are assigned to LEO pursuant to Clause 39.1(i), then LEO hereby assigns to KTI without charge all of LEO’s rights, title and interests in and to such Product Specific
Patents; and 

  

	 	(t)	in the case of termination by KTI pursuant to Clause 18.4, 18.5 or 18.6, LEO hereby grants to KTI a non-exclusive, worldwide, perpetual, irrevocable license under the LEO Background Technology, solely to the extent such
license is required to enable KTI’s use of the Non-Severable Inventions assigned to KTI pursuant to clause 19.1(g) and solely to develop, Manufacture and have Manufactured and Commercialize and have Commercialized the Licensed Products.

 Any reference in this Clause 19.1 to “Licensed Product” shall mean and be limited to the Licensed Products that are under
development, Manufacture or Commercialization pursuant to this Agreement at the date of delivery of the notice of termination. 
 19.2
Full Termination for Change of control or breach by KTI. In the event of the full termination of this Agreement by LEO pursuant to Clause 18.3(b), 28.2(a) or for breach by KTI in accordance with Clause 18.4, then: 

 

	 	(a)	Clauses 19.1(a) to (d), and, subject to KTI covering all transfer costs, Clauses (e) and (f), shall apply accordingly; 

  

	 	(b)	Clauses 19.1(h), (l) (limited in 19.1(l)(ii) to affected Licensed Products filed prior to such termination date), (m), (n), (o) (subject to a commercial supply agreement to be negotiated in good faith based on
fair market value rates), (p) (but only as it pertains to the non-exclusive use), (r) and (s) shall apply accordingly; however in case of termination pursuant to Clause 18.3(b) or Clause 18.4 with respect to (n) and (o), KTI
shall cover all cost related to transition and tech transfer; 

  

	 	(c)	in the case of such termination pursuant to Clause 18.3(b) or 18.4, then: 

  

	 	(i)	 LEO hereby grants to KTI an option to acquire a non-exclusive, worldwide, perpetual, irrevocable license to all of LEO’s rights, title and
interests in and to all LEO Inventions and Joint Inventions which are Non-Severable and in and to the LEO Background Technology 

  
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(solely to the extent such license is required to enable KTI’s use of LEO Inventions which are Non-Severable), upon fair market value terms and conditions to be agreed upon in good faith
between the Parties, solely with respect to enable KTI to continue the development, Manufacture and Commercialization of the affected Licensed Products; and 

  

	 	(ii)	LEO hereby grants to KTI an option to acquire a non-exclusive, worldwide, perpetual, irrevocable, license under all of LEO’s rights in and to the Joint Inventions which are Severable, upon fair market value terms
and conditions to be agreed upon in good faith between the Parties solely to develop, Manufacture and have Manufactured and Commercialize and have Commercialized Licensed Products in the KTI Field and KTI hereby grants to LEO an exclusive,
worldwide, perpetual, irrevocable, royalty-free, fully paid-up license to use and exploit such Joint Inventions outside the KTI Field; and 

  

	 	(d)	in the case of such termination pursuant to Clause 28.2(a), then: 

  

	 	(i)	LEO hereby grants to KTI a non-exclusive, worldwide, perpetual, irrevocable, royalty-free, fully paid-up license under any and all of LEO’s rights in and to the Joint Technology; and 

 

	 	(ii)	LEO hereby grants to KTI an option to acquire a non-exclusive, worldwide, perpetual, irrevocable license to all of LEO’s rights, title and interests in and to all LEO Inventions and in and to the LEO Background
Technology (solely to the extent such license is required to enable KTI’s use of LEO Inventions which are Non-Severable), upon fair market value terms and conditions to be agreed upon in good faith between the Parties, solely with respect to
enable KTI to continue the development, Manufacture and Commercialization of the affected Licensed Products. 

  
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 19.3 Partial Termination. In the event of the earlier partial termination of this
Agreement in respect of one or more Business Segments pursuant to Clause 18.2, 18.3 or 18.5(a), then only with respect to the affected Business Segment the following shall apply: 

 

	 	(a)	Clauses 19.1(a) to (f), (h) to (p) (but only as it pertains to the non-exclusive use), (r), (s) (to the extent applicable) and (q) shall apply accordingly with respect to the affected Licensed
Products; 

  

	 	(b)	LEO hereby grants to KTI a non-exclusive, worldwide, perpetual, irrevocable, royalty-free, fully paid-up license to LEO’s rights and interests in and to the LEO Inventions and Joint Inventions which are
Non-Severable, solely with respect to enable KTI to continue the development, Manufacture and Commercialization of the affected Licensed Products; 

  

	 	(c)	KTI’s exclusivity obligations pursuant to Clause 3.1(a) shall terminate with respect to the affected Business Segment but only to the extent of the affected indications and Regions; 

 

	 	(d)	In the event an indication or Region is the object of the partial termination, then LEO’s obligations pursuant to Clause 3.2 shall terminate solely with respect to the indication or Region, as the applicable, that
is the object of the partial termination, provided however that no Competing Product may be directly or indirectly launched, marketed or sold by LEO in the respective Region or indication, as the case may be, before 15 months after the effective
date of termination; and 

  

	 	(e)	All other provisions of this Agreement shall remain in full force and eaffect with respect to the remaining Licensed Products and Clauses 19.11 and 19.12 shall solely apply to the terminated Business Segment.

 19.4 Partial Termination according to Clause 18.1(b)(i) and (ii). In the event of the earlier partial termination of
this Agreement in respect of one or more Business Segments pursuant to Clause 18.1(b)(i) or (ii), then only with respect to the affected Business Segment the following shall apply: 

 

	 	(a)	In case of termination of a Business Segment pursuant to Clause 5.2(a)(v), then: 

  

	 	(i)	Clauses 19.1(a) (without reference to the cross-reference to Clauses 19.1(c) and 19.1(d)), (h) and (s) (to the extent applicable), shall apply accordingly; 

  
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	 	(ii)	LEO hereby grants to KTI an option to acquire a non-exclusive, worldwide, perpetual, irrevocable license to all of LEO’s rights, title and interests in and to all LEO Inventions and Joint Inventions which are
Non-Severable and existing at termination, upon fair market value terms and conditions to be agreed upon in good faith between the Parties solely with respect to enable KTI to continue the development, Manufacture and Commercialization of the
affected Licensed Products; 

  

	 	(iii)	LEO hereby grants to KTI an option to acquire a non-exclusive, worldwide, perpetual, irrevocable, license under all of LEO’s rights in and to the Joint Inventions which are Severable and existing at termination,
upon fair market value terms and conditions to be agreed upon in good faith between the Parties solely to develop, Manufacture and have Manufactured and Commercialize and have Commercialized such affected Licensed Products; 

 

	 	(iv)	the Advancing Party shall be entitled to continue the development, Manufacturing and Commercialization of the affected Business Segment without any additional licenses granted from the other Party under this Agreement,
provided, however, that if LEO is the Advancing Party; KTI shall grant LEO a non-exclusive, perpetual, irrevocable license to KTI Technology limited to the Field in the Territory which may be required by LEO for such development, Manufacturing and
Commercialization; 

  

	 	(v)	to the extent required, the licenses granted pursuant to Clause 2.1 shall be non-exclusive solely in order to enable the activities contemplated by the foregoing clause (iv); 

 

	 	(vi)	the restrictions contained in Clause 3.1(a) shall not apply to KTI, if KTI is the Advancing Party, with respect thereto; and 

  
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	 	(vii)	the restrictions contained in Clauses 3.2(a) and (d) shall not apply to LEO, if LEO is the Advancing Party, with respect thereto. 

 

	 	(b)	In case of termination of a Business Segment by KTI pursuant to Clause 5.2(b)(vi), then: 

  

	 	(i)	Clauses 19.1(a), (c) (for clinical supply only), (d), (h), (l) (as applicable for 18.2) (q), (r) and (s) (to the extent applicable), shall apply accordingly; 

 

	 	(ii)	Clauses 19.1(e), (f), (n) and (o) (to the extent applicable), and (p) (but only as it pertains to the non-exclusive use), shall apply accordingly at KTI cost; 

 

	 	(iii)	Clauses 19.4(c)(ii) and 19.4(c)(iii) shall apply accordingly, to the extent applicable; 

  

	 	(iv)	KTI shall be entitled to continue the development, Manufacturing and Commercialization of the affected Business Segment, however without having any rights to LEO Technology and LEO rights in Joint Technology;

  

	 	(v)	to the extent required, the licenses granted pursuant to Clause 2.1 shall be non-exclusive solely in order to enable the activities contemplated by this Clause 19.4(b); 

 

	 	(vi)	the restrictions contained in Clause 3.1(a) shall not apply to KTI with respect to the applicable Business Segment; 

  

	 	(vii)	The restrictions on LEO with respect to research and development contained in Clauses 3.2(a) and (d) shall cease to apply to LEO with respect to such Business Segment; and 

  
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	 	(c)	In case of termination of a Business Segment by a Party pursuant to Clause 10.1(c), then: 

  

	 	(i)	Clauses 19.1(a) (without reference to the cross-reference to Clauses 19.1(c) and 19.1(d)), (c) (for clinical supply only),(d), (e), (f), (h), (o), (p) (but only as it pertains to the non-exclusive use), (q),
(r) and (s) (to the extent applicable), shall apply accordingly; 

  

	 	(ii)	the Advancing Party shall be entitled to continue the research, development, Manufacturing and Commercialization of the affected Business Segment outside the Agreement, however the Advancing Party shall have (A) a
non-exclusive worldwide, perpetual, irrevocable, royalty-free license from the other Party to use Joint Technology solely to continue the development, Manufacturing and Commercialization of the affected Business Segment, (B) a non-exclusive
worldwide, perpetual, irrevocable, royalty-free license to use the Study Results generated with respect to the affected Business Segment solely for Regulatory Approvals, Notifications, securities filings, intellectual property filings necessary for
the further development, Manufacturing and Commercialization of the affected Business Segment, however in case of KTI being the Advancing Party, KTI shall reimburse LEO for the costs of such Clinical Studies; and 

 

	 	(iii)	LEO shall grant to KTI a right of first option to a non-exclusive worldwide, perpetual, irrevocable, license under all of LEO’s rights and interests in and to the LEO Inventions which are Non-Severable and under
the LEO Background Technology (solely to the extent such license is required to enable KTI’s use of LEO Inventions which are Non-Severable), upon fair market value terms and conditions to be agreed upon in good faith between the Parties, solely
to develop, Manufacture and have Manufactured and Commercialize and have Commercialized affected Licensed Products. 

  
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	 	(d)	In case of termination of a Business Segment pursuant to Clause 10.2(a) or 10.2(b) by KTI, then: 

  

	 	(i)	Clauses 19.1(a) to (f) shall apply accordingly with respect to the affected Business Segment and Clauses 19.1(h) to (l) (for use in connection with the applicable Business Segment), and 19.1(n), (o),
(p) (but only as it pertains to the non-exclusive use), (q),(r) and (s) (to the extent applicable), shall apply accordingly however solely with respect to Manufacture and Commercialization of the affected Business Segment;

  

	 	(ii)	LEO hereby grants to KTI a non-exclusive, worldwide (only in case of an indication) or for the affected Regions in the case of a Regional Business Segment, as the case may be, perpetual, irrevocable, royalty-free
license under all of LEO’s rights and interests in and to the Joint Technology and in and to all LEO Inventions which are Non-Severable, solely to Manufacture and have Manufactured and Commercialize and have Commercialized the affected Licensed
Products; 

  

	 	(iii)	LEO hereby grants to KTI an option to acquire a non-exclusive, worldwide (only in case of an indication) or for the affected Regions in the case of a Regional Business Segment, as the case may be, perpetual, irrevocable
license under all of LEO’s rights in and to the LEO Inventions which are Severable, upon fair market value terms and conditions to be agreed upon in good faith between the Parties, solely to research and develop, Manufacture and have
Manufactured and Commercialize and have Commercialized the affected Licensed Products; 

  

	 	(iv)	LEO hereby grants to KTI a non-exclusive, worldwide (only in case of an indication) or for the affected Regions in the case of a Regional Business Segment, as the case may be, perpetual, irrevocable, royalty-free, fully
paid-up license only to the extend required under all of LEO’s rights in and to the LEO Background Technology to develop, Manufacture and have Manufactured and Commercialize and have Commercialized the affected Licensed Products; and

  

	 	(v)	KTI’s exclusivity obligations pursuant to Clause 3.1(a) shall terminate with respect to the affected Business Segment but in the event of a regional termination, Clause 3.1(a) shall only terminate with respect to
the Business Segment which constitutes a Region according to Schedule 6, Part B. 

  
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	 	(e)	In case that an indication or Region is the object of the partial termination, then LEO’s exclusivity obligations pursuant to Clause 3.2 shall terminate solely with respect to the indication or Region, as the
applicable, that is the object of the partial termination provided however that no Competing Product may be directly or indirectly launched, marketed or sold by LEO in the respective Region or indication, as the case may be, before 15 months after
the effective date of termination. 

  

	 	(f)	All other provisions of this Agreement shall remain in full force and affect with respect to the remaining Licensed Products. 

19.5 Termination of R&D Obligations. In the event of the earlier partial termination by LEO of the R&D Obligations pursuant to
Clause 18.4, 18.7(a) or 28.2(b), then: 
  

	 	(a)	the R&D Obligations shall immediately terminate and the JSC and all of its sub-committees shall be disbanded and any remaining reference the JSC or any of its subcommittees, the Alliance Managers or Project Managers
shall be deemed to be a reference to the Parties in the place and stead thereof; 

  

	 	(b)	all of the other provisions of this Agreement shall remain in full force and effect, except to the extent modified by this Clause 19.5; 

 

	 	(c)	Licensed Products hereunder shall henceforth be limited to the Licensed Products and Clause 19.11 and 19.12 shall solely apply to the terminated Business Segment Commercialized by LEO at such termination date;

  

	 	(d)	the licensed granted to LEO under Clauses 2.1(a) shall be non-exclusive with respect to the Commercialization of Lamps only with respect to those Licensed Products being developed according to (e) below;

  

	 	(e)	KTI’s exclusivity obligations pursuant to Clause 3.1(a) shall immediately terminate in whole with respect to research and development activities of KTI or its Affiliates; and the Parties’ respective
obligations pursuant to Clauses 3.1(a) and 3.2 shall immediately terminate with respect to the Manufacture and Commercialization of any Licensed Products developed by each respective Party after such termination of the R&D Obligations, solely
with respect to new indications not already pursued under the Agreement at the time of termination; 

  
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	 	(f)	Clause 19.1(l) shall apply accordingly; 

  

	 	(g)	in the case of such earlier termination pursuant to Clause 18.4 only and without limiting or affecting the amounts payable pursuant to Article 13, then: 

 

	 	(i)	LEO shall have a non-exclusive, perpetual, irrevocable, royalty-free, fully paid-up license to KTI’s rights under the Joint Know-How to research and develop, Manufacture and Commercialize the Licensed Products
contemplated in Clause 19.5(c); 

  

	 	(ii)	KTI shall irrevocably assign to LEO all its rights to Joint Inventions which are Non-Severable to the extent necessary to Manufacture and Commercialize the Licensed Products contemplated in Clause 19.5(c), subject
however to KTI’s right to freely exploit all KTI Technology and the Joint Inventions outside the Field; and 

  

	 	(iii)	KTI shall have a non-exclusive, worldwide, perpetual, irrevocable, royalty-free, fully-paid up license to use Severable Joint Inventions within KTI Field and LEO shall have an exclusive, royalty-free (other than the
royalties and other amounts payable pursuant to Article 13), fully paid-up license to use the Severable Joint Inventions outside the KTI Field; and 

  

	 	(h)	the LEO License under Clause 2.6 shall be limited to the products in the KTI Field which rely on the LEO License and are Commercialized on the date of such termination. 

19.6 Termination for KTI Insolvency. In the event of the full termination of this Agreement by LEO pursuant to Clause 18.6, then: 

 

	 	(a)	Clauses 19.1(a), 19.1(b), 19.1(c), 19.1(d), and 19.1(s) (to the extent applicable) shall apply accordingly; 

  

	 	(b)	Each Party shall have a non-exclusive, worldwide, perpetual, irrevocable, royalty-free, fully-paid up license to use the Joint Technology; and 

  
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	 	(c)	KTI shall only have a non-exclusive worldwide, perpetual, irrevocable, royalty-free license to use the Study Results for Regulatory Approvals, Notifications, securities filings, intellectual property filings of the
affected Licensed Product, filed at such termination date. 

 19.7 Damages. Termination of this Agreement by LEO
pursuant to Clause 18.4 or 18.6 or by KTI pursuant to Clause 18.4, 18.5 or 18.6 shall be without prejudice to any claims for damages either Party may have with respect thereto. 

19.8 Return of Confidential Information after Termination. Subject to the rights expressly granted to the other Party under this
Article 19, all Confidential Information (including all copies thereof and all unused samples) and all complete and partial originals and copies of documents, computer disks and any other material containing Confidential Information of the other
Party (in the event of a partial termination, then only with respect to the affected Business Segment) shall be properly returned to the Disclosing Party by the Receiving Party or, at the Disclosing Party’s request, destroyed, with such
destruction certified in writing by the Receiving Party to the Disclosing Party. Notwithstanding the foregoing, the Receiving Party may keep one (1) copy of such documents as may be required by Law or any authority in a secure legal archive for
the purposes of fulfilling its legal or regulatory requirements and shall not be obligated to delete any Confidential Information from any disaster recovery or back-up storage device. 

19.9 KTI obligation to make distinction. For the sake of clarity, in case of partial termination or termination of a Business Segment
by KTI and KTI is continuing the development and Commercialisation of the terminated Licensed Products within such Business Segment by itself or by a Third Party, KTI must ensure that such product(s) do not bear any LEO Trade Mark or any other
reference to LEO except, where LEO continues to be the manufacturer of such product, to the extent required under applicable Law; are Commercialized under a trade mark that is sufficiently distinct from the LEO Trade Marks so such that there is no
prospect of confusion between the relevant marks and do not otherwise create any confusion with respect to the Licensed Products which LEO continues to Commercialize under this Agreement. Furthermore KTI undertakes to ensure that such activities do
not have any material detrimental effect on the reputation, goodwill, Intellectual Property or Know-How of the JV Business or LEO. 

  
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 19.10 Licenses. All licenses granted pursuant to Article 19 are sublicensable subject
to prior written consent which shall not unreasonably be withheld. Furthermore, all options, licenses and agreements to be negotiated pursuant to the foregoing provisions of Article 19 shall be negotiated in good faith based on fair market value
terms and conditions and in case that the Parties despite good faith negotiation cannot agree on such terms and conditions, then either Party may elect by written notice to the other Party (the “Dispute Notice”) to have the dispute
resolved by the Expert pursuant to Clause 37.3, whose decision with respect thereto shall be final and binding upon the Parties. Pending agreement or resolution of such fair market terms and conditions, KTI shall be entitled to continue its on-going
activities solely with respect to the affected Licensed Products or Idea under the concerned rights for which a license shall be granted and, to the extent applicable, LEO shall continue to supply the affected Licensed Products to KTI, however
subject to payment of the fair market value finally determined by the Expert and such fair market value and other costs, if applicable, for use of the Licenses and purchase of Licensed Products, if any, during the period from termination of the
Agreement until final decision shall be payable by KTI to LEO within [***] after the final decision of the Expert has been made. 
 19.11
Accrued Rights. The expiration or earlier termination of this Agreement for whatever reason shall not affect any rights or obligations of the Parties arising in any way out of this Agreement which are accrued prior to the Termination Date,
including the right to recover damages against the other Party for any breach of this Agreement occurring prior to such termination. 

19.12 Surviving Clauses. In the event of expiry or termination of this Agreement for any reason, the provisions of Clauses 2.6, 5.7(k),
5.9, 11, 12, 13 (to the extent of any outstanding payments), 14, 15, 16, 17, 18, 19, 20, 21, 22, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38 and 39 shall remain in full force and effect. 

19.13 Related Agreements. The Clinical Supply Agreement and the Commercial Supply Agreement shall terminate on the same date as
termination of this Agreement subject to the provisions of the relevant agreements dealing with termination and the consequences of termination. The Medical Device Incident reporting and Post Marketing Surveillance Agreement, the Quality Agreement
and the Share Purchase Agreement shall survive pursuant to its own terms after termination of this Agreement. 

  
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 20. CONFIDENTIALITY 

20.1 Confidential Information. 
  

	 	(a)	Prior to the Effective Date and during the term of this Agreement each Party (the “Disclosing Party”) may disclose or make available to the other Party (the “Receiving Party”)
confidential and/or proprietary information related to its business in any way whatsoever, including, but not limited to, the Intellectual Property and Know-How of the Disclosing Party, information and data relating to business operations, methods
of operating, customer information and affairs, processes, personnel and including financial, production , scientific and technical data and information, formulae, strategies, studies, reports, evaluations, submissions to, correspondence with,
notices to and from and approvals, certifications and authorizations by any Regulatory Authority or other governmental agency or authority, and further including products, technology, research and development plans and/or finances, and including
confidential and/or proprietary information, related notably to the Disclosing Party (the “Confidential Information”). For the avoidance of doubt any confidential information that was disclosed by or on behalf of a Party pursuant to
the provisions of the confidentiality agreement entered into by the Parties on March 11, 2013 (as amended from time to time, the “KTI-LEO CDA”) shall be included in the definition of Confidential Information. Any and all
Confidential Information disclosed under the KTI-LEO CDA is and shall remain the property of the Disclosing Party (as such term is defined in the KTI-LEO CDA). 

  

	 	(b)	 For the sake of clarity, and without limiting the generality of the foregoing, (i) the KTI Technology and information provided to LEO in its
capacity as a shareholder of KTI are Confidential Information of KTI, for which KTI is the Disclosing Party and LEO is the Receiving Party; (ii) all LEO Technology, Study Results and other information of LEO regarding Commercialization and
Manufacturing activities conducted by or on behalf of LEO under this Agreement as well as information about LEO Sub-contractor agreements are LEO 

  
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Confidential Information, for which LEO is the Disclosing Party and KTI is the Receiving Party, and (iii) all Joint Technology is Confidential Information of both LEO and KTI, for which each
Party is both a Disclosing Party and a Receiving Party. Any Confidential Information disclosed under this Agreement is and shall remain the property or under the Control of the Disclosing Party and nothing shall be construed as granting to the
Receiving Party any rights hereto except as expressly set forth in this Agreement. 

 20.2 Confidentiality Obligations.
Each Party undertakes and agrees that except as otherwise expressly permitted pursuant to this Agreement it shall not, and shall ensure that its Affiliates, sub-licensees and Distributors do not, directly or indirectly, disclose or permit to be
disclosed to any Third Party (other than Agents of the Receiving Party or its Affiliates), or use or permit the use for any purpose other than in performance of its obligations under this Agreement, any of the other Party’s Confidential
Information. The obligations of confidentiality and non-use set forth in this Clause 20.2 are subject to the exceptions set forth in Clause 20.4 and shall otherwise remain in effect during the term of this Agreement and for a period of [***] after
the expiration or earlier termination of the entire Agreement. 
 20.3 Internal Disclosure of Confidential Information. The Receiving
Party shall ensure that the Disclosing Party’s Confidential Information is only disclosed or made available to those of its and its Affiliates’ officers, directors, employees, agents, sub-contractors and consultants (collectively
“Agents”) who are directly concerned with the performance or exercise of one or more of such Party’s rights or obligations under this Agreement and who have a need to know. The Receiving Party shall inform its Agents, prior to
any such disclosure, of the confidential nature of the Disclosing Party’s Confidential Information, shall ensure that those Agents are bound by appropriate confidentiality obligations and shall be responsible for any breach of these
confidentiality provisions by its Agents. 
 20.4 Exceptions. The Receiving Party’s confidentiality and non-use obligations
under this Article 20 shall not extend to any of the Disclosing Party’s Confidential Information which: 
  

	 	(a)	is at the time of disclosure, or thereafter becomes, generally available to the public other than by reason of a breach by the Receiving Party of the provisions of this Article 20; 

  
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	 	(b)	is known to the Receiving Party prior to its receipt from the Disclosing Party, as can be shown by written record; 

  

	 	(c)	is lawfully disclosed to the Receiving Party by an independent Third Party without obligations of confidence to the Disclosing Party; 

 

	 	(d)	is independently developed by the Receiving Party or its Affiliates without the application, aid or use of the Disclosing Party’s Confidential Information, as demonstrated by the Receiving Party’s written
records; or 

  

	 	(e)	is required by Law or order of any governmental authority or agency to be disclosed; provided that the Receiving Party so obligated to disclose (i) promptly notifies the Disclosing Party to enable the
Disclosing Party an opportunity to seek a protective order or other similar kind of order to protect the confidentiality of the Confidential Information, (ii) provides to the Disclosing Party reasonable assistance requested by the Disclosing
Party to obtain written confidentiality undertakings in favour of the Disclosing Party, and (iii) thereafter only discloses the minimum amount of Confidential Information required to comply, whether or not the Disclosing Party obtains a
protective order. If the Party required by Law to disclose Confidential Information is unable to inform the Disclosing Part prior to disclosure of its Confidential Information, the Receiving Party shall (provided it is lawful to do so) fully inform
the Disclosing Party in writing as soon as possible after such disclosure of the circumstances of such disclosure and of the Confidential Information which has been disclosed. 

20.5 Permitted Use and Disclosures. 
  

	 	(a)	The Receiving Party may disclose the Disclosing Party’s Confidential Information to Regulatory Authorities to the extent that such disclosure is reasonably necessary to exercise any rights under this Agreement to
research, develop, Manufacture or Commercialize Licensed Products in the Field in the Territory and to other authorities for filing or prosecuting Patents as contemplated by this Agreement. 

  
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	 	(b)	Further, a Party may (i) make such disclosures as are contemplated by Clause 32 in accordance with the conditions set forth therein, (ii) disclose the existence and terms of this Agreement to existing or
potential investors or acquirers or merger partners, or to professional advisors (e.g., attorneys, accountants and prospective investment bankers) involved in such activities, for the limited purpose of evaluating such investment or transaction and
under appropriate conditions of confidentiality, only to the extent reasonably necessary and (iii) disclose the existence and terms (other than financial terms) of this Agreement to actual bona fide potential sub-licensees (in the case
of disclosure by LEO), in each of cases (ii) and (iii) above with the written agreement by these permitted persons to maintain such Confidential Information in strict confidence and not to use for any other purpose. 

20.6 Publication. 
  

	 	(a)	During the term of this Agreement LEO shall be responsible for the publication strategy with respect to the subject matter of this Agreement. Upon new clinical or scientific data being generated, the results will be
reviewed by both Parties’ IP counsel to first be integrated into the Licensed Technology, and adequately protect any Patent Rights therein, if deemed relevant. Upon approval by both Parties either Party shall be entitled to make any publication
(other than peer-reviewed articles) or presentation regarding the Licensed Product, Licensed Technology, Joint Technology or any Study Results. 

  

	 	(b)	In the event of peer-reviewed articles, LEO shall be responsible for such, provided that a draft copy is provided to KTI in advance for review, such review not to be unreasonably withheld or delayed. Once the
publication date will be known by LEO, such date as well as a copy of the final publication shall be provided to KTI prior to such publication date. 

  

	 	(c)	Each Party’s contribution shall be acknowledged in any publication by co-authorship or other acknowledgements, whichever is appropriate in accordance with customary scientific practice. 

  
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 21. WARRANTIES 

21.1 Warranties. Each Party hereby warrants to the other Party that, as of the Effective Date: 

 

	 	(a)	it is duly organised and validly existing under the Laws of its place of incorporation; 

  

	 	(b)	the execution and performance by it of its obligations hereunder will not constitute a breach of, or conflict with, its organisational documents, any other material agreement or arrangement, whether written or oral, by
which it is bound, any judgment, decree, order or award of any court, governmental body or arbitrator having jurisdiction over such Party or any applicable Law; 

  

	 	(c)	it has full corporate and legal power and authority and has taken all corporate action necessary to enter into and perform this Agreement, and that this Agreement has been duly authorised, executed, and delivered by
that Party; and 

  

	 	(d)	that this Agreement is a valid, binding, and legally enforceable obligation of that Party (subject to applicable laws of bankruptcy and moratorium). 

21.2 LEO Warranties. LEO hereby warrants to KTI, as of the Effective Date that: 

 

	 	(a)	it is not obliged to make any filing or notification under the merger control laws in Denmark or European Union as a condition of the lawful consummation of the transactions contemplated by this Agreement other than as
expressly provided for herein in connection with the Licensed Products licensed to LEO hereunder. 

  

	 	(b)	LEO is not currently reviewing any opportunity with respect to any Competing Product; 

  

	 	(c)	to the best of its knowledge, there are no material impediments that would prevent it from fulfilling its obligations under this Agreement and the Related Agreements; and 

  
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	 	(d)	to its knowledge [***], LEO does not currently Control any Intellectual Property or Know-How that competes with any KTI Background Technology that have been disclosed prior to the Effective Date. 

21.3 KTI Warranties. KTI hereby warrants to LEO, as of the Effective Date that: 

 

	 	(a)	it has, with respect to the development of Licensed Products, complied with applicable Laws; 

  

	 	(b)	to the best of its knowledge after due inquiry, KTI owns the entire right, title and interest in the KTI Background Technology; 

  

	 	(c)	save and except for security interests granted in favour of KTI’s principal banker (which will, in part, be subject to the cession of rank contemplated in Clause 39.1(a)), the KTI Background Technology is free and
clear from any mortgages, pledges, liens, security interests, Third Party licenses and other similar encumbrances in the Territory and shall during the term of this Agreement remain free and clear from any mortgages, pledges, liens, security
interests, license (except as set forth in this Agreement) and other similar encumbrances in the Territory; 

  

	 	(d)	to the best of its knowledge, (i) the Licensed Technology is not invalid, (ii) the exercise of the Licensed Technology would not infringe any Know-How or Intellectual Property rights of any Third Party or
(iii), to the extent the KTI Background Technology is registered in public registers or filed for registration, the Licensed Technology is not jeopardized by a cancellation (in whole or in part); 

 

	 	(e)	the Lamp to be used in the First Licensed Product does, to the best of KTI’s knowledge, not infringe any Patent Rights of any Third Party; 

 

	 	(f)	KTI has not received a notice of any interference action, litigations or proceedings involving Licensed Technology and, to the best of KTI’s knowledge, the Licensed Technology is not being violated by Third
Parties; 

  
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	 	(g)	to the best of its knowledge, all information regarding KTI Background Technology provided to LEO in connection with the due diligence process is true and correct and that KTI has not held back from disclosure any
information that is of relevance for the existence, validity and enforcement of the Licensed Technology; and has disclosed the existing KTI Background Technology in relation to Licensed Products licensed to LEO hereunder; 

 

	 	(h)	all fees necessary for the filing and maintenance of the Licensed Technology have been fully paid; all filings necessary for extension periods in the territories as listed in Schedule 4 (KTI Patent Rights) have been
made and all other material steps for the maintenance of the KTI Patent Rights have been undertaken; 

  

	 	(i)	KTI has established a Quality Management System [***]; 

  

	 	(j)	that Sandoz under the Sandoz Agreement or otherwise, does not, directly or indirectly, (i) have any right at the Effective Date and/or in the future to develop, Manufacture and Commercialize Licensed Products in
the Field in the Territory; (ii) have any right to extend its activities under the Sandoz Agreement to the Territory; and (iii) have any right to gain or claim access to any LEO Technology, KTI Technology (excluding KTI Background
Technology) or Joint Technology and any results and outcome from the Parties’ collaboration under this Agreement; and 

  

	 	(k)	to the best of its knowledge, there are no material impediments that would prevent it from fulfilling its obligations under this Agreement and the Related Agreements. 

21.4 Undertakings. 
  

	 	(a)	Each Party hereby undertakes to the other Party that it will not use in any capacity, in connection with any activities to be performed under this Agreement or any Related Agreement, any individual who has been debarred
or is subject to any debarment proceedings or investigations pursuant to the U.S. Federal Food, Drug and Cosmetic Act, or excluded from a federal healthcare program in the U.S. 

  
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	 	(b)	Furthermore, KTI hereby undertakes that during the Term of this Agreement, (i) it will use commercially reasonable efforts to maintain the KTI CE Mark and Notification as long as LEO uses or references such KTI CE
Mark and/or Notification in relation to the Licensed Products; (ii) it will not enter into any agreement with Third Party which, in any way, will limit KTI’s ability to grant the licenses according to this Agreement; (iii) subject to
Clause 39.1(i) and save and exept for the security interests granted from time to time in favour of KTI’s principal banker (which will be subject to the cession of rank contemplated in Clause 39.1(a)), the Licensed Technology shall remain free
and clear from any mortgages, pledges, liens, security interests, license (except as set forth in this Agreement) and other similar encumbrances in the Territory, (iv) subject to Clause,39.1(i) it will in favour of LEO cause KTI Patents First
Ranking Lien to remain first ranking at all times on the Secured Property, (v) to maintain its QMS [***]; and (vi) [***]. 

  

	 	(c)	LEO hereby undertakes that subject to the rights set forth in Article 19, in the event any Product Specific Patents are assigned to LEO pursuant to Clause 39.1(i), then during the term of this Agreement, it will not
sell, assign or dispose of, or grant any hypothec, security interest, charge or encumbrance of any nature in or to, any of the Product Specific Patents. 

21.5 No Implied Warranties. The warranties provided in this Article 21 are in lieu of any other warranties, express or implied, and
nothing herein shall be construed as a warranty by either Party of any kind, including any implied warranty of fitness for a specific purpose, merchantable quality, all of which are expressly and specifically excluded. 

21.6 No Warranties of Patent Rights. Nothing in this Agreement shall be construed as a representation made or warranty given by any
Party (a) that any patent will be issued after the Effective Date based upon any pending patent application included in the Licensed Technology, or (b) that any granted patent which is issued from such pending patent applications will be
valid and enforceable. 

  
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 21.7 No Further Representations or Warranties. No director, officer, employee or agent
of any Party or its Affiliates is authorised to make any further representation or warranty to the other Party which is not contained in this Agreement, and each Party acknowledges that it has not relied on any such oral or written representations
or warranties. 
 22. LIABILITY AND INDEMNITIES 

22.1 No Consequential Damages. Subject to Clause 22.8 and except in the case of breach by either Party of the obligations set forth in
Article 20, neither Party shall be liable to the other Party or to any Affiliate of the other Party for any lost profits, business opportunities, special, indirect, consequential, exemplary, or punitive damages of any nature arising under or in
relation to this Agreement even if that Party was advised in advance of the possibility of such loss or damage. For clarity, nothing in this Clause 22.1 shall exclude, or act as a waiver of, a Party’s rights to receive any payment due and
payable pursuant to Clause 13, even if such payment is for a share of profits. 
 22.2 Indemnification by LEO. LEO shall, subject to
Clause 22.1 and with respect to this Agreement, indemnify, defend and hold harmless KTI, its Affiliates, and its and their respective directors, officers, employees and agents (collectively the “KTI Indemnified Parties”) against any
and all claims, causes of action, demands, liabilities, losses, damages, costs or expenses[***] asserted by a Third Party (each a “Loss”) to the extent such Loss arose out of or was caused by: (a) any negligent act or omission
or wilful misconduct by LEO, its Affiliates, its Distributors or sub-licensees in the performance of its obligations under this Agreement; or (b) any breach or inaccuracy of any representation, warranty or guarantee given by LEO under this
Agreement; except, in all cases, to the extent that such Loss arises out of the negligence, wilful misconduct or breach of this Agreement by KTI. 

22.3 Indemnification by KTI. KTI shall, subject to Clause 22.1 and with respect to this Agreement, indemnify, defend and hold harmless
LEO, its Affiliates, and its and their respective directors, officers, employees and agents (collectively the “LEO Indemnified Parties”) against any and all claims, causes of action, demands, liabilities, losses, damages, costs or
expenses[***] asserted by a Third Party (each a “Loss”) to the extent such Loss arose out of or was caused by: (a) bodily injury or death caused by the compounds, prototypes, Licensed Products and any other materials and items
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by KTI or according to KTI instructions to LEO as part of a Development Plan or otherwise under this Agreement (and not under a Related Agreement) and properly used and/or applied by LEO for the
intended purpose; (b) the development (other than by or on behalf of LEO), Manufacture (other than by or on behalf of LEO) or Commercialization (other than by or on behalf of LEO) of Licensed Products, Lamps or Biophotonic Formulations;
(c) any negligent act or omission or wilful misconduct by KTI, its Affiliates or sub-licensees in the performance of its obligations under this Agreement; or (d) any breach or inaccuracy of any representation, warranty of guarantee given
by KTI under this Agreement; except, in all cases, to the extent that such Loss arises out of the negligence, wilful misconduct or breach of this Agreement by LEO. 

22.4 Notification of Liabilities/Losses. A person or entity entitled to indemnification under this Article 22 (an “Indemnified
Party”) shall give prompt written notification [***] to the other Party (the “Indemnifying Party”) of the commencement or notice of Loss for which indemnification may be sought or, if earlier, upon the assertion of any such
Loss (it being understood and agreed, however, that the failure by an Indemnified Party to give notice of a Loss as provided in this Clause 22.3 shall not relieve the Indemnifying Party of its indemnification obligation under this Agreement except,
and only to the extent that such Indemnifying Party is materially prejudiced as a result of such failure to give notice). The Indemnifying Party shall be liable for any reasonable legal fees and expenses subsequently incurred in connection with the
defence of such Loss after receiving such notice. Each Party shall thereafter keep the other Party informed of any Losses or threatened Losses (as described in Clause 22.2). 

22.5 Proceedings. The Indemnified Party shall permit the Indemnifying Party to direct and control the defence of the Loss and shall
provide such reasonable assistance as is reasonably requested by the Indemnifying Party (at the Indemnifying Party’s cost) in the defence of the Loss; provided that nothing in this Clause 22.5 shall permit the Indemnifying Party to make
any admission on behalf of the Indemnified Party, or to settle any claim or litigation which would impose any financial obligations on the Indemnified Party or would result in any loss or diminution of the scope, validity or enforceability of the
KTI Patent Rights without the prior written consent of the Indemnified Party[***]. Notwithstanding anything herein stated, the Indemnified Party shall at all times have the right to fully participate in such defence at its own expense directly or

  
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through counsel; provided, however, if the named parties to the action or proceeding include both the Indemnifying Party and the Indemnified Party and representation of both Parties by the same
counsel would be inappropriate under applicable standards of professional conduct, the reasonable expense of separate counsel for the Indemnified Party shall be paid by the Indemnifying Party. Except for a Loss seeking non-monetary relief or
involving criminal allegations, if such diligent good faith defence is not being or ceases to be conducted, the Indemnified Party may, at the expense of the Indemnifying Party, undertake the defence of (with counsel selected by the Indemnified
Party), and shall have the right to compromise or settle any such Loss. 
 22.6 Supply. The indemnities in this Agreement shall not
apply to the supply of Licensed Products for activities, which are governed by a supply agreement which will provide for the manufacturer of Licensed Products to bear certain liabilities on terms to be agreed for Losses for product liability claims
arising out of the negligent Manufacture or supply of those Licensed Products. 
 22.7 Mitigation. Any Party making a claim under
this Article 22 shall take all reasonable steps to mitigate and/or minimise the Losses suffered and shall not do anything nor fail to do something which would have the effect of increasing the Losses. 

22.8 Restriction on Limitation of Liability. Neither Party limits or excludes its liability for fraud, fraudulent concealment or
fraudulent misrepresentation, wilful misconduct nor for death or personal injury arising from its negligence. 
 22.9 Insurance. Each
Party shall at its own cost procure and maintain insurance, including general liability insurance and product liability insurance, adequate to cover its obligations hereunder and consistent with normal business practices of prudent companies
similarly situated at all times during which any Licensed Product is being developed commercially, Manufactured or Commercialized. Each Party shall maintain such above mentioned insurances during the term of this Agreement and thereafter for a
period of [***]. Upon request, the insured Party shall provide the other Party with a certificate of insurance as evidence of the requested coverage and shall notify the other Party within [***] of any cancellation, termination or material change in
such insurance. It is understood that such insurance shall not be construed to create a limit of either Party’s liability or indemnification obligations under this Agreement. 

  
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 23. FINANCIAL STATEMENTS COMMUNICATION 

So long as KTI is not a reporting issuer, then KTI shall deliver to LEO as KTI Confidential Information (a) its draft unaudited internal financial
statements within [***] of the end of each financial year, (b) its audited annual financial statements within [***] of the end of each financial year and (c) six month unaudited internally prepared, balance sheet and statement of earnings
(loss) within [***] of the end of the first six (6) months of each such financial year. KTI shall provide to LEO the first such balance sheet and statement of earning by October 1, 2014. 

24. SHARE PURCHASE AGREEMENT 
 The Parties agree that the
entering into of a Share Purchase Agreement pursuant to which LEO shall purchase shares from KTI concurrently with the entering into of this Agreement shall be a condition precedent of the entering into of this Agreement. 

25. WAIVER 
 Neither Party shall be deemed to have waived
any of its rights or remedies under this Agreement unless the waiver is expressly made in writing and signed by a duly authorised representative of that Party. In particular, no delay or failure of any Party in exercising or enforcing any of its
rights or remedies under this Agreement shall operate as a waiver of those rights or remedies or so as to preclude or impair the exercise or enforcement of those rights or remedies nor shall any partial exercise or enforcement of any right or remedy
by any Party preclude or impair any other exercise or enforcement of that right or remedy by that Party. 
 26. ENTIRE AGREEMENT/VARIATIONS 

26.1 Entire Agreement. This Agreement, together with the Related Agreements, and any Schedules or other attachments hereto or thereto,
constitutes the entire agreement and understanding between the Parties relating to the subject matter hereof, and together they supersede and replace all prior drafts, previous understandings, arrangements, representations or agreements, whether in
writing or oral, between the Parties relating to the subject matter of this Agreement. For the avoidance of doubt, the KTI-LEO CDA has been superseded by the provisions of Article 20. Each Party acknowledges and agrees that: 

 

	 	(a)	it has not relied on, or been induced to enter into, this Agreement by any representation, warranty, statement, assurance, promise or undertaking of any kind except as expressly included in this Agreement;

  
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	 	(b)	it shall not be liable to the other (whether in equity, contract, tort or under the Misrepresentation Act 1967 or otherwise) for any representation, warranty, promise, statement, assurance or undertaking which is not
set out in this Agreement and neither Party shall be entitled to claim damages and/or terminate or rescind this Agreement by reason of any misrepresentation (other than those representations and/or any warranty set out in this Agreement and/or a
fraudulent misrepresentation) having been made to it by any person (whether a Party or not) at any time and upon which it has relied before entering into this Agreement. 

26.2 Amendment. No variation, amendments, modification or supplement to this Agreement shall be valid unless and until it is made in
writing in the English language and signed by a duly authorised representative of each Party. 
  

	27.	NOTICES 

 27.1 Sending of notice. Any notice to be given pursuant to this
Agreement shall be in writing in the English language and shall be delivered by overnight courier, by registered, recorded delivery or certified mail (postage prepaid) or by facsimile confirmed by registered, recorded delivery or certified mail
(postage prepaid) to the address or facsimile number of the recipient Party set out below or such other address or facsimile number as a Party may from time to time designate by written notice to the other Party. 

Address of KTI 
 KLOX
Technologies Inc. 
 275 Armand-Frappier 

Laval, Quebec, Canada H7V 4A7 

Fax: 450-680-4549 
 for the
attention of the President and Chief Executive Officer (Lise Hébert) 

  
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 with a copy to (which shall not constitute notice): 

BCF LLP 
 1100
René-Lévesque Blvd. West, 25th Floor 
 Montreal, Quebec, Canada H3B 5C9

 Fax: 514-397-8515 
 For the
attention of: Gino Martel 
 Address of LEO 

LEO Pharma A/S 
 Industriparken 55

 DK-2750 Ballerup 
 Denmark

 Fax No: +45 72263350 
 For
the attention of General Counsel, Legal Affairs 
 27.2 Receipt of notice. Any notice given pursuant to this Article 27 shall be
deemed to have been received: 
  

	 	(a)	in the case of delivery by courier or sending by mail on the day of receipt provided receipt occurs on a Business Day of the recipient Party or otherwise on the next following Business Day of the recipient; or

  

	 	(b)	in the case of facsimile, on acknowledgement by the recipient facsimile receiving equipment on a Business Day if the acknowledgement occurs before 5.00 pm local time of the recipient and in any other case on the
next following Business Day. 

 27.3 Notice. Any notice that is required in this Agreement to be given in writing may
be given by personal delivery, fax or post[***]. 

  
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 28. ASSIGNMENT AND CHANGE OF CONTROL 

28.1 Assignment. Subject to the other terms of this Agreement, in particular without limitation, the right to grant sub-licenses or to
use Agents/sub-contractors for certain activities, neither Party shall, without the prior written consent of the other Party, assign, transfer or convey this Agreement (in whole or in part) or any of its rights hereunder or delegate any of its
obligations hereunder to any Third Party; provided always that either Party may assign this Agreement (in whole or in part) to a successor to substantially all of the business of the assigning Party relating to the business unit encompassing the
Licensed Products whether in a merger, sale of stock, sale of assets or otherwise, without such consent; subject only to the assigning Party giving prior written notice to the non-assigning Party and the party to which this Agreement is assigned
entering into a direct undertaking with the non-assigning Party to be bound by all obligations of the assigning Party under this Agreement. Any assignment, transfer or conveyance of this Agreement or any part of it in breach of this Article 28 shall
be ineffective and void from the beginning. Notwithstanding the foregoing, the prior written consent of the other Party shall not be required for LEO to assign any of its rights, or delegate or subcontract the performance of any of its obligations
hereunder to an Affiliate so long as such Affiliate remains an Affiliate; notwithstanding such assignment, LEO shall not be relieved of any of its obligations under this Agreement as a result of such an assignment. If any such assignee subsequently
ceases to be an Affiliate of LEO, LEO shall procure that, immediately prior to the assignee ceasing to be an Affiliate of LEO, the assignee assigns its rights under this Agreement back to LEO or to another Affiliate of LEO. 

28.2 No-Fly-Zone. In the event any entity listed in Schedule 10 (“LEO Competitor”) acquires direct, indirect or
beneficial ownership of more than 50% of the share capital, stock or other participating interest and/or the majority of the right to vote of KTI (“Change of Control”), then KTI shall within seven (7) days from the closing
thereof inform LEO in writing and LEO shall have the option, to be exercised by notice in writing to KTI within 30 days of the effective date of such acquisition of such Control, to terminate (a) the entire Agreement, however subject to the
winding-down obligations according to Clause 18.3(a)(i), (ii) and (iii) and the consequences of termination set out in Clause 19.2; or (b) with immediate effect the obligations of the Parties under or pursuant to all and not less than
all of the provisions of Clause 2.1(d) solely with respect to the development of new Licensed Products, and Clauses 2.7, 3.2, 3.4, 3.7, 4, 5, 7.3 7.4, 7.5, and 10 (collectively, the “R&D Obligations”), in

  
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which case the provisions of Clause 19.5 shall apply. In case of Change of Control, KTI shall ensure that the LEO Competitor does not have any access to any Development Plan or Development
Project and other LEO documents and information regarding its development, manufacturing or commercialization activities, and internal affairs that for example have been and will be provided to KTI as part of the obligations of LEO hereunder, under
any escalation under Clause 37.3, or otherwise. Furthermore in case that KTI initiates a procedure under Clause 9.2 after the Change of Control, an external expert shall be appointed by KTI at the cost of LEO to participate for KTI in the escalation
procedure and to review the statements setting forth the position of LEO and other documents to be provided by LEO in this respect. Such expert shall only be entitled to provide conclusions for the assessment of non-fulfillment but without revealing
information about research and development activities and internal affairs of LEO. 
 28.3 Surviving Obligations. Any permitted
assignment, delegation or subcontracting of the performance of any of its obligations hereunder by either Party shall not relieve such Party of any of its obligations under this Agreement and/or Related Agreements. Each Party shall remain
responsible and liable for all acts and omissions of its Agents and those employed by the Agents as if such acts and omissions were performed by such Party itself. 

29. FORCE MAJEURE 
 29.1
Performance. If a Party (the “Non-Performing Party”) is unable to carry out one or more of its obligations under this Agreement due to an event constituting Force Majeure, then this Agreement shall remain in effect, but the
Non-Performing Party’s relevant obligations under this Agreement and the relevant obligations of the other Party (the “Other Party”) under this Agreement shall be suspended for the duration of the circumstance of Force Majeure;
provided that: 
  

	 	(a)	the Non-Performing Party gives the Other Party prompt notice describing the circumstance of Force Majeure, including the nature of the occurrence and its expected duration, and continues to furnish regular reports
during the period of Force Majeure; 

  

	 	(b)	the Non-Performing Party uses diligent efforts to remedy its inability to perform and to mitigate the effects of the circumstance of Force Majeure; and 

 

	 	(c)	in the event of a delay of more than [***], the Parties shall promptly meet to discuss how best to continue their operations as far as possible in accordance with this Agreement. 

  
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 29.2 Definition. For purposes of this Agreement, the term “Force
Majeure” shall mean any cause or causes beyond the reasonable control of the Non-Performing Party, including acts of God, fire, explosion, flood, drought, war, riot, sabotage, terrorism, embargo, strikes or other labour trouble, failure in
whole or in part of suppliers to deliver on schedule materials, equipment or machinery, interruption of or delay in transportation, a national health emergency or compliance with any order or regulation of any government. 

29.3 Settlement. Nothing herein shall be deemed to require the Non-Performing Party to settle on terms unsatisfactory to such Party any
strike, lock-out or other labour difficulty, any investigation or proceeding by any public authority, or any litigation by any Third Party. 

29.4 Continuing Event. In the event that a Force Majeure event continues for more than [***] the Other Party shall be entitled to
terminate this Agreement upon a further [***] notice. 
 30. SEVERANCE OF TERMS 

30.1 Severance. If the whole or any part of this Agreement is or becomes or is declared illegal, invalid or unenforceable in any
jurisdiction for any reason (including both by reason of the provisions of any Law and also by reason of any court or competent authority which either has jurisdiction over this Agreement or has jurisdiction over any of the Parties): 

 

	 	(a)	in the case of the illegality, invalidity or un-enforceability of the whole of this Agreement it shall terminate only in relation to the jurisdiction in question; or 

 

	 	(b)	in the case of the illegality, invalidity or un-enforceability of part of this Agreement that part shall be severed from this Agreement in the jurisdiction in question and that illegality, invalidity or
un-enforceability shall not in any way whatsoever prejudice or affect the remaining parts of this Agreement which shall continue in full force and effect. 

  
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 30.2 Good Faith Discussion. If, in the reasonable opinion of any Party, any severance
under this Article 30 materially affects the commercial basis of this Agreement, then the Parties shall discuss, in good faith, ways to eliminate the material effect. 

31. NATURE OF THIS AGREEMENT 
 The Parties are independent
contractors and none of the provisions of this Agreement shall be deemed to constitute a partnership or agency between the Parties. Neither Party shall have any authority to bind the other in any way. 

32. PUBLIC STATEMENTS 
  

	 	(a)	Other than as expressly permitted in this Agreement, a Party may not use the name of the other Party or its Affiliates in any publicity, advertising or in any other public way. Further, neither Party may issue any press
releases or otherwise publicize or disclose any information related to the existence of this Agreement, the terms or conditions of this Agreement, or any information relating to the subject matter hereof, without the prior written consent of the
other Party; provided that such other Party has been given at least [***] prior written notice to allow for review and reasonable considerations. The Party issuing the press release or public announcement shall give due considerations to any
comments and concerns raised by the other Party. The Parties shall agree in writing upon an initial press release to announce the execution of this Agreement, together with a corresponding Q&A outline for use in responding to inquiries about the
Agreement. Following such initial press release, either Party may use the specific information contained therein, or in any subsequent public announcements or publications made by the Parties, in such Party’s investor relations and public
relations activities. 

  

	 	(b)	Nothing in this Agreement, however, shall prohibit a Party from making disclosures as it determines, based on the advice of counsel, are required to comply with Law of any nationally recognised securities exchange (such
exchange to include the Euronext Stock Exchange, TSX, NASDAQ and the New York Stock Exchange), provided the same is accurate and limited to the minimum content required. In such event, however, the disclosing Party shall, to the extent possible,
consult with the other Party prior to such disclosure and, where applicable, shall request confidential treatment to the fullest extent available until such information no longer is required to be kept confidential according to Article 20.

  
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	 	(c)	The restrictions in Clause 32(a) shall not apply to any press releases, publicity or other disclosure made in furtherance of a distribution of KTI’s securities to the public or a listing of its securities on a
nationally recognised securities exchange (including in connection with any road show as defined under applicable securities laws which disclose information previously approved by LEO for dissemination in accordance with the foregoing.

 33. NO THIRD PARTY RIGHTS 
  

	 	(a)	Except as provided in Clauses 22.2 and 22.3, a person who is not a party to this Agreement shall not have any rights under the Contracts (Rights of Third Parties) Act 1999 (“CRTPA 1999”) to enforce any
term of this Agreement. 

  

	 	(b)	The provisions of Clause 22.2 are made for the benefit of KTI’s Affiliates, and KTI’s and its Affiliates respective directors, officers, employees and agents, and (b) the provisions of Clause 22.3 are
made for the benefit of LEO’s Affiliates, and LEO’s and its Affiliates respective directors, officers, employees and agents. Each beneficiary described under the foregoing (a) and (b) being a “Permitted Third
Party”. Accordingly, each Permitted Third Party may in his own right enforce such provisions under which it is a beneficiary in accordance with the provisions of the CRTPA 1999, provided that this Agreement may be amended, varied,
suspended, terminated or rescinded without the consent of any Permitted Third Party. 

 34. COSTS 

Each Party shall bear its own legal costs, legal fees and other expenses incurred in the preparation and execution of this Agreement. 

  
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 35. COUNTERPARTS 

This Agreement shall become binding when any one or more counterparts hereof, individually or taken together, have been executed on behalf of each of the
Parties hereto. This Agreement may be executed in any number of counterparts, each of which shall be an original as against any Party whose signature appears thereon, but all of which taken together shall constitute but one and the same instrument.

 36. CONSTRUCTION 
 This Agreement has been prepared
jointly and shall not be strictly construed against either Party. The captions used herein are inserted for convenience of reference only and shall not be construed to create obligations, benefits, or limitations. The Recitals at the beginning of
this Agreement shall form an integral part of this Agreement. 
 37. DISPUTE RESOLUTION 

37.1 Governing Law and Jurisdiction. Save and except as regards the interpretation and enforceability of the provisions of Clause 39.2,
this Agreement and all matters relating to or in connection with it (including any Dispute and any dispute resolution procedure provided for in this Agreement) shall be governed by, and construed in accordance with, the Laws of [***], without regard
to any conflicts of law principles. Any claim, dispute or controversy between the Parties arising out of, relating to or in connection with, this Agreement including any questions relating to the existence, validity, formation, construction or
termination of this Agreement, or the rights or obligations of the Parties hereunder (a “Dispute”) shall be subject to arbitration as set forth in Clause 37.4 except to the extent this Agreement provides that the Dispute is to be
settled by an Expert pursuant to Clause 37.3 or a Valuator pursuant to Clause 18.7. Subject to the exclusive jurisdiction granted to the arbitrator, Expert or Valuator pursuant to this Agreement, the Parties irrevocably attorn and submit to the
jurisdiction of [***]. 
 37.2 Informal Resolution. In the event of any Dispute, the Parties shall prior to commencing any form of
proceedings try to settle their differences amicably between themselves. Either Party may, by sending written notice of the Dispute to the other Party, refer such Dispute to the chief executive officers of each Party, or in the case of LEO, the
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time (collectively, the “Executive Officers”) for resolution. The Executive Officer of LEO shall be employed by LEO or an Affiliate of LEO and hold a more senior position than
the most senior LEO Member of the JSC). The Executive Officers shall meet promptly to discuss and negotiate in good faith the Dispute submitted to determine a resolution within [***] after receiving the notice of Dispute. Subject to any Dispute
which is to be submitted to the Expert pursuant to the last sentence of this Clause 37.2 or pursuant to a Dispute Notice contemplated by this Agreement or which is to be submitted to a Valuator pursuant to Clause 18.7, if the Executive Officers are
unable to resolve such Dispute within [***] of such written notice, either Party may initiate arbitration in accordance with the provisions of Clause 37.4. Any unresolved Dispute with respect to the definition of the Field shall be submitted to the
Expert for resolution pursuant to Clause 37.3. 
 37.3 Expert. In the event a Dispute Notice is duly sent pursuant to this Agreement,
then the following shall apply: 
  

	 	(a)	Subject to Clause 37.3(d), the Parties shall appoint an independent qualified expert if they jointly agree on the selection of the expert within [***] following delivery of the applicable Dispute Notice to make a
determination or decision, as the case may be, of the matter in dispute or, if the Parties fail to agree on the selection of the expert within said delay, the Parties shall each appoint an independent qualified expert and each such qualified expert
appointed shall appoint a third independent qualified expert to provide a determination with respect to the matter in dispute (the qualified expert jointly appointed or each qualified expert so appointed where there is no jointly appointed qualified
expert, as the case may be, is herein collective referred to as the “Expert”). If a Party fails to appoint an Expert, the other Party may refer the matter to the courts of [***] for final determination of the Expert and the Parties shall
be bound by such decision. Each Expert must be fluent in the English language and, subject to Clause 37.3(d), must possess no less than [***] of pharmaceutical and/or medical device industry experience and expertise having [***] within a large
pharmaceutical and/or medical device company relating to product research, development, Commercialization and/or licensing and market knowledge and understanding, as applicable and may not be any current or former employee or consultant of either
Party. 

  
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	 	(b)	Subject to Clause 37.3(d), the Expert shall be engaged as an expert and not as an arbitrator to make the following determinations: 

  

	 	(i)	with respect to the disputed matter contemplated under Clause 3.4 only, the Expert shall render a final, binding and conclusive determination of the expansion of the KTI Field based on whether such expansion is
prejudicial or not to the best interest of the JV Business, taken as a whole; 

  

	 	(ii)	with respect to the disputed matters contemplated under Clauses, 5.2(a)(v), 5.2(b)(vi), 10.1(b) and 10.2(b) and 14.6 only, the Expert shall render a final, binding and conclusive decision on such matter based on what is
in the best interest of the JV Business, taken as a whole; 

  

	 	(iii)	with respect to the disputed matters contemplated under Clauses 4.16 and 9.2, the Expert shall not be retained to render any final decision but will be retained to prepare and present to the Parties his or her
recommendations with respect to the Dispute; 

  

	 	(iv)	with respect to Clause 14.6 only, the Expert shall render a final, conclusive and binding decision as to the adjustments required to comply with IFRS; and 

 

	 	(v)	with respect to Clause 19.10, the Expert shall render a final, conclusive and binding decision on the terms and conditions to govern the applicable license and supply agreement. 

 

	 	(c)	Each Party shall have the opportunity to make its representations to the Expert on the disputed matter and the Expert shall be instructed to use reasonable efforts to perform its services within [***] of submission of
the Parties’ representations. The Expert shall be free to establish such rules and procedures as the Expert may, in the Expert’s sole discretion, deem necessary to fulfill its duties in a fair and equitable manner which however shall
ensure that each Party has equal opportunity to present its opinon and information on the disputed matter. The Expert shall be required to act fairly as between the Parties and according to the principles of natural justice. 

  
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	 	(d)	Notwithstanding the foregoing: 

  

	 	(i)	for the purpose of the Expert required pursuant to Clause 9.2 or 14.6, only one Expert will be appointed and if the Parties cannot agree on the selection of the Expert within a period of [***] following delivery of the
Dispute Notice then either Party may refer the matter to the International Chamber of Commerce for the appointment of the Expert qualified as per Clause 37.3(a) or 37.3(d)(ii), as the case may be; 

 

	 	(ii)	for the purpose of Clause 14.6, the Expert must be a partner of one of the [***] largest international accounting firms [***] which does not have any conflict with either Party; and 

 

	 	(iii)	an Expert’s decisions under Clauses 37.3(b)(i), (ii), (iv) and (v) shall be final and binding on the Parties save in the case of negligence or manifest error. The Parties agree that the Expert’s
decision is not a quasi-judicial procedure and the Parties shall have no right of appeal against the Expert’s decision save in the case of negligence or manifest error; 

 

	 	(e)	The fees of the Expert shall be shared equally between the Parties. 

 37.4 Arbitration.
Save and except for matters reserved to the Expert or to a Valuator for final and binding decision pursuant to this Agreement, in the event of any Dispute which is not resolved within the delay set forth in Clause 37.2, then a Party may, to the
exclusion of any recourse before the courts of general jurisdiction, submit such Dispute for arbitration in accordance with the applicable provisions of the then current commercial arbitration rules of the [***] (the “Arbitration
Rules”), subject to the following: 
  

	 	(a)	the arbitral tribunal shall consist of three arbitrators and shall have the exclusive authority to decide upon the effectiveness and enforceability of this arbitration clause; 

  
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	 	(b)	each Party shall appoint an independent and impartial arbitrator and the third arbitrator shall be appointed in accordance with the [***] Arbitration Rules; 

 

	 	(c)	the law governing this arbitration agreement shall be [***] and the arbitration will be governed by the laws of [***] and judgment upon the award rendered by the arbitrator may be entered by any court having
jurisdiction; 

  

	 	(d)	the seat of the arbitration and the place of arbitration will be [***] and the arbitration will be conducted in the English language; 

 

	 	(e)	the timetable established at the pre-arbitration meeting of the Parties hereto and the arbitrators shall provide for the conduct and completion of all pre-hearing and preliminary matters in a period not to exceed [***]
from the date of the commencement of the arbitration. The final hearing shall be set so as to be completed no later than [***] from the date of the commencement of the arbitration; 

 

	 	(f)	it is the intent of the Parties hereto that, barring extraordinary circumstances, the arbitration proceedings shall be concluded within [***] from the date of the commencement of the arbitration provided, however, that
(i) the Parties may agree to extend this time limit or the arbitrator may do so in his discretion if he determines that the interest of justice so requires, (ii) the arbitrator shall use his best efforts to issue the award within such time
period, and (iii) failure to adhere to this time limit shall not be a basis for challenging the award; 

  

	 	(g)	the decision of the arbitrators, which shall be delivered within [***] from the completion of the final hearing, shall be final and binding on the Parties hereto, shall not be subject to any appeal and may be entered
in, homologated by, and enforced by the courts in any jurisdiction where execution of the decision is sought. Each Party irrevocably waives their right to any form of appeal or review of the arbitrators decision under the Arbitration Act 1996 in so
far as such waiver may be validly made; and 

  
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	 	(h)	nothing herein shall prevent any Party hereto from seeking or obtaining any injunction or other preliminary remedy before the courts pending resolution of the Dispute. 

In the event of any inconsistency between the provisions of this Clause 37.4 and the Arbitration Rules, then the provisions of this Clause 37.4
shall govern and prevail. 
 38. EXPORT CONTROL 
 This
Agreement is made subject to any restrictions concerning the export of products or technical information from the United States of America which may be imposed upon or related to KTI or LEO from time to time by the government of the United States of
America. Furthermore, each Party agrees that it will not export, directly or indirectly, any technical information acquired from the other Party under this Agreement or any products using such technical information acquired from the other Party
under this Agreement or any products using such technical information to any country for which the United States government or any agency thereof at the time of export requires an export license or other governmental approval, without first
obtaining the written consent to do so from the Department of Commerce or other agency of the United States government when required by an applicable statute or regulation. 

39. SECURITY INTEREST 
 39.1 KTI
Patents First Ranking Lien. To ensure the continued validity and enforceability of the licenses granted to LEO pursuant to Clauses 2.1 and 2.3 of this Agreement and as continuing and collateral security for the performance of KTI’s present
and future obligations pursuant to such Clauses 2.1 and 2.3 of the Agreement (the “Secured Obligations”), KTI hereby grants to LEO the security contemplated in Clause 39.2(a) (“KTI Patents First Ranking Lien”),
subject, however, to the following: 
  

	 	(a)	Within [***] from the Effective Date, KTI shall obtain all necessary cessions of rank and subordination agreements, in form and substance satisfactory to LEO, to ensure KTI Patents First Ranking Lien is first ranking on
the Hypothecated Property, including obtaining a cession of rank from The Royal Bank of Canada; 

  
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 CONFIDENTIAL 
  

	 	(b)	Upon any demand from LEO to that effect, KTI shall execute and deliver all other security documents and do all other things which LEO may reasonably require in order to maintain the validity and the rank of KTI Patents
First Ranking Lien on the Hypothecated Property; 

  

	 	(c)	For so long as the hypothec created in Clause 39.2(a) has not become exercisable in accordance with the provisions of Clause 39.2(b), then (i) KTI Patents First Ranking Lien may only be registered or published
(i.e. perfected) by LEO at LEO’s expense in the jurisdiction(s) of the registered office or chief executive office of KTI provided, however, that LEO will forthwith confirm to KTI in writing the details of each publication or registration LEO
may effect and (ii) LEO shall not file, register or publish the KTI Patents First Ranking Lien in any patent or other IP office; 

  

	 	(d)	As and from the time the hypothec created in Clause 39.2(a) becomes enforceable in accordance with the provisions of Clause 39.2(b), then LEO at LEO’s expense shall be entitled to register or publish KTI Patents
First Ranking Lien in any jurisdiction where legally required in order to ensure that it is opposable to third parties provided, however, that in the event LEO proceeds with any such registration or publication prior to being entitled to do so, then
LEO shall immediately proceed at its expense to cancel such registrations and publications; 

  

	 	(e)	The KTI Patents First Ranking Lien shall not restrict in any way (i) KTI’s exercise of its rights under the Hypothecated Property in order to fulfill its obligations under or pursuant to this Agreement or any
Related Agreement, (ii) the ability of KTI to exercise its rights in connection with the Sandoz Agreement, (iii) KTI’s filing, prosecution and maintenance of any patent applications relating to the Product Specific Patents subject to
any applicable terms and conditions of this Agreement relating thereto, and (iv) the ability of KTI to exercise all of its rights in respect of the Product Specific Patents outside the Field or as otherwise reserved to KTI, including the rights
set out in Clause 3.5, subject to the restrictions set out in this Agreement; 

  
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	 	(f)	Notwithstanding anything in this Agreement to the contrary, KTI shall be entitled to (i) grant a hypothec, encumbrance, lien or other security interest to any and all other licensees of KTI in relation to the
Product Specific Patents to the extent of their respective interests outside of the Field only, under terms and conditions substantially similar to the KTI Patents First Ranking Lien and (ii) otherwise dispose of its rights in and to the
Product Specific Patents, in or outside the Field, subject to the restrictions set forth in Article 28; 

  

	 	(g)	LEO undertakes to collaborate with any future hypothecary creditor, transferee, assignee or holder of a security interest or other right or interest in and to the Product Specific Patents and to negotiate in good faith
with each of them the terms and conditions of any arrangement necessary to govern any co-ownership or other co-mingled rights which may result from the enforcement of the KTI Patents First Ranking Lien;

  

	 	(h)	LEO shall not enforce or otherwise exercise any of its secured party rights in or to any KTI Patents First Ranking Lien unless and until (i) KTI becomes an Insolvent Party and KTI or any trustee in
bankruptcy or any other receiver, administrator or other person appointed to administer or liquidate any of KTI’s assets, terminates or purports to terminate this Agreement (other than as permitted pursuant to Article 18 of this Agreement)
or (ii) any person institutes any action or proceeding to seize the Hypothecated Property unless such action or proceeding is contested in good faith and during such time, the seizure is subject to a stay order; 

 

	 	(i)	 LEO acknowledges that the sole reason for granting the KTI Patents First Ranking Lien is due to differences between bankruptcy legislation in Canada
compared to the United States of America which may potentially impact the continued validity and enforceability of the Secured Obligations and consequently, in the event that (i) the bankruptcy legislation in Canada is changed in a manner such
that neither KTI nor any trustee in bankruptcy or any other receiver, administrator or other person appointed to administer or liquidate any 

  
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of KTI’s assets may terminate this Agreement should KTI become an Insolvent Party, or (ii) the Hypothecated Property is assigned to an Affiliate of KTI in the United States of America
or in any other legal jurisdiction which has bankruptcy laws similar to the United States of America with respect to the protection of the Secured Obligations, or (iii) KTI assigns to LEO free and clear of all liens, hypothecs, security
interests or other charges of any nature, KTI’s rights, title and interests in and to the Product Specific Patents currently listed under the heading Patent Family 1 in Schedule 5 hereto for the Licensed Products solely in the Field in the
Territory subject, however, to the provisions of the following paragraph (j) or any combination of the foregoing (ii) and this (iii), then LEO hereby agrees at its expense to release the KTI Patents First Ranking Lien, cancel all
registrations and filings in connection therewith and sign all documents necessary to give effect to such release and cancellation and furthermore agrees that KTI shall be forever relieved of the obligation to grant the KTI Patents First Ranking
Lien; and 

  

	 	(j)	In the event KTI assigns to LEO any Product Specific Patents for the Licensed Products pursuant to Clause 39.1(i)(iii) above, then (i) LEO shall grant back to KTI an exclusive, worldwide, perpetual, irrevocable,
royalty-free and fully paid-up license under such Product Specific Patents with respect to any and all rights of any nature whatsoever outside the Field provided that such grant back shall be limited to the rights KTI had in such Product Specific
Patents immediately prior to the assignment to LEO, (ii) LEO shall sign, execute and deliver to any licensee of KTI such comfort letters as may be reasonably required from time to time with respect to such grant back license, (iii) LEO
shall not assign, sell, transfer, encumber or otherwise grant any security interest in, or dispose of, any of its rights in or to such Product Specific Patents except to the extent permitted pursuant to Clause 2.4, (iv) KTI shall nonetheless
continue to be the Filing Party with respect thereto for the purpose of Article 16, (v) such assignment to LEO shall not reduce or otherwise affect any of the amounts payable to KTI pursuant to this Agreement, and (vi) in the event of the
termination of this Agreement, LEO shall reconvey to KTI all of its rights, title and interests in and to such Product Specific Patents, to the extent required pursuant to Article 19. 

  
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 39.2 Hypothec. 

 

	 	(a)	Creation. As a general and continuing collateral security for the performance by KTI of its present and future obligations under Clauses 2.1 and 2.3 of this Agreement, KTI hereby hypothecates to and in
favour of LEO, for the sum of Fifty Million Dollars (CDN$ 50,000,000.00), in lawful money of Canada, with interest thereon from the date hereof at the rate of [***] percent ([***]%) per annum, the universality of its rights, title, interest and
property, present and future, tangible and intangible, in Product Specific Patents for the Licensed Products solely in the Field in the Territory (the “Hypothecated Property”). 

 

	 	(b)	Exercise of Hypothecary Rights. Upon (i) KTI becoming an Insolvent Party and KTI or any trustee in bankruptcy or any other receiver, administrator or other person appointed to administer or liquidate
any of KTI’s assets, terminates or purports to terminate this Agreement (other than as permitted pursuant to Article 18 of this Agreement), or (ii) a person instituting any action or proceeding to seize the Hypothecated Property unless
such action or proceeding is contested in good faith by KTI and is subject to a stay order, LEO shall then have the right to exercise against the Hypothecated Property all rights and remedies of a hypothecary creditor under the [***].

  

	 	(c)	Governing Law of Clause 39.2. Notwithstanding any provision to the contrary, this Clause 39.2 and the interpretation and enforcement thereof shall be governed by and in accordance with the Laws of the Province of
Québec and the federal Laws of Canada applicable therein. Each of the parties hereto irrevocably submits to the jurisdiction of the courts of the Province of Québec sitting in the judicial district of Montréal with respect to
the enforcement of the hypothec created under Clause 39.2. 

 This Agreement has been signed on the respective dates below but with effect
as of the Effective Date. 
 [Signatures follow.] 

  
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 CONFIDENTIAL S-1 License and Joint Venture Agreement 

 

 Signed by /s/ Lise Hébert 

State position: President & CEO 
 By and on behalf of
KLOX TECHNOLOGIES INC 
 Date: July 11, 2014 

Signed by /s/ Francesco Bellini 
 State position: Executive
Chairman 
 By and on behalf of KLOX TECHNOLOGIES INC 

Date: July 11, 2014 

  

 CONFIDENTIAL S-2 License and Joint Venture Agreement 

 

 Signed by /s/ illegible 

State position: CEO & President 
 By and on behalf of
LEO PHARMA A/S. 
 Date: 10 July 2014 
 Signed by /s/
illegible 
 State position: Board Member 
 By and on behalf
of LEO PHARMA A/S. 
 Date: 10 July 2014 

  

			
	“[***] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 406 under the Securities Act of 1933, as
amended”

  

 LEO CONFIDENTIAL 
  

 Schedule 1 

Acne Studies 
 As of the Effective Date,
the following considerations have resulted from internal discussions, and will form the basis for further clarification and discussion between the Parties, as well as form the basis for discussion with relevant clinical experts for clarification
prior to clinical protocol drafting. 
 In general the following studies are intended to be conducted, however the design of the studies is pending further
clarification and may be subject to significant change:[***] 
 Note: The above are draft estimates for the clinical trials expected to be conducted. The
long term follow up will be based on the same patients as the Confirmatory Trial. The Human Factor study is still to be clarified, and may or may not be included in the Confirmatory Trial. 

Main assumptions used for above estimates: 
 [***] 

  

			
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amended”

  

 LEO CONFIDENTIAL 
  

 Schedule 2 

Core Country List 
 The following countries
shall be included in the Core Country List: 
  

			
	[***]	  	[***]
	Canada	  	USA

  

			
	“[***] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 406 under the Securities Act of 1933, as
amended”

  

 LEO CONFIDENTIAL 
  

 Schedule 3 

First Licensed Product 
  

			
	 

	  	
KLOX Multi-LED Light (TheraTM lamp)

 
 primary device of:

KLOX Biophotonic System
 for the
treatment of Acne Vulgaris

 KLOX LumiCleanseTM System is composed of two medical devices: A primary
device, the multi-LED lamp (TheraTM lamp) and a secondary device, the LumiCleanseTM gel. 

The KLOX Multi-LED Light (TheraTM lamp) is Medical Electrical Equipment compliant with IEC 60601-1 3rd Edition: 2005 and IEC60601-2-57 (2011-01-31) and is verified to be functional at an altitude not greater than [***] meters. It emits [***] blue light with a peak wavelength between [***] nm. 

The KLOX Multi-LED Light is an electrical device designed for indoor use only. The irradiance or power density of the KLOX Multi-LED light is between [***]
and [***] mW/cm2 at a distance of 5 cm from the light source with a radiant fluency (or dose) during a 5 minute single treatment of [***]
J/cm2. This is within acceptable safety limits according to the ANSI Z.136 International Standard Regulations on optical exposure to skin, which specifies that continuous light exposure on human
skin between 400-700 nm cannot exceed 200 mw/cm2. 
 The KLOX Multi-LED Light (TheraTM Lamp) has a current CE Mark with a field of use for dermatological applications, excluding cosmetics. 

  

			
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amended”

  

 CONFIDENTIAL 
  

			
	 

	  	
KLOX Photo Converter LumiCleanseTM Gel

 
 secondary device of:

KLOX Biophotonic System
 for the
treatment of Acne Vulgaris

 KLOX LumiCleanseTM System is composed of two medical devices: A primary
device, the multi-LED lamp (TheraTM lamp) and a secondary device, the LumiCleanseTM gel. 

The LumiCleanseTM gel is a topical, single use gel containing chromophore (light-trapping
acceptor) which is used with the multi-LED lamp delivering [***] blue light. The LumiCleanseTM gel is presented in two jars, Jar A and Jar B which have to be mixed together just before
application. Jar A contains the clear carrier gel and Jar B (smaller) contains the orange colored chromophore gel. All content of Jar B shall be transferred using a spatula and mixed in Jar A. 

The current LumiCleanseTM gel label claims the gel is to be used in conjunction with the Multi-LED lamp
(TheraTM lamp) in the treatment of acne vulgaris in patients aged 16 years and over. The treatment has been studied in a randomized, multi-center clinical trial where it was administered twice a
week for six weeks. 
 The LumiCleanseTM gel has obtained a CE Mark for the treatment of acne vulgaris.

  
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KLOX Multi-LED Light (CosmoTM lamp)

 
 Product part of:

KLOX LumiBelTM System

for reduction of wrinkles, embellishment and rejuvenation of the skin

 The LumiBelTM System is composed of two products: the multi-LED lamp
(CosmoTM lamp) and the LumiBelTM gel. 
 The KLOX
Multi-LED Light (CosmoTM lamp) is a class I Medical Electrical equipment. It is compliant with IEC60601-1 3rd Edition: 2005 and IEC60601-2-57
(2011-01-31) and is verified to be functional at an altitude no greater than [***] meters. 
 The KLOX Multi-LED Light is an electrical device designed for
indoor cosmetic use only. The irradiance or power density of the KLOX Multi-LED light is between [***] and [***] mW/cm2 at a distance of 5 cm from the light source with a radiant fluency (or dose)
during a 5 minute single treatment of [***] J/cm2. If used as suggested, the light power emitted by this product is within acceptable safety limits according to International Standard Regulations
on optical exposure to skin and eyes. 
 The KLOX Multi-LED Light is intended to be used in conjunction with the KLOX LumiBelTMgel for the reduction or wrinkles and the embellishment of the skin, resulting in skin rejunevation. 

The KLOX Multi-LED Light (CosmoTM lamp) has completed product Notification in the EU. 

  
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KLOX LumiBelTM Gel

 
 Product part of:

KLOX LumiBelTM System

for reduction of wrinkles, embellishment and rejuvenation of the skin

 The LumiBelTM System is composed of two products: the multi-LED lamp
(CosmoTM lamp) and the LumiBelTM gel. 
 The
LumiBelTM gel is a topical, single use gel containing chromophore (light-trapping acceptor) which is used with the multi-LED lamp delivering [***] blue light. The LumiBelTM gel is presented in two jars, Jar A, containing the clear carrier gel and Jar B, smaller, containing the orange colored chromophore gel. The two gels have to be mixed together just before
application: All content of Jar B shall be transferred using a spatula and mixed in Jar A. 
 The KLOX
LumiBelTM gel is intended to be used in conjunction with the multi-LED lamp (CosmoTM lamp) for the reduction of wrinkles and the embellishment
of the skin, resulting in skin rejuvenation. The safety and efficacy of the KLOX LumiBelTM System have been demonstrated in a clinical trial where it was applied once a week for 4 weeks. 

The LumiBelTM gel has completed product Notification in the EU. 

  
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KLOX Multi-LED Light (KT-DTM lamp)

 
 primary device of:

KLOX Biophotonic System
 for the
treatment of Acne Vulgaris
 AND

Product part of:
 KLOX LumiBelTM System
 for reduction of wrinkles, embellishment and rejuvenation of the
skin

 The LumiCleanseTM and LumiBelTM Systems are composed of two products: the Multi-Panel LED lamp (commercial name:
KT-DTM Lamp) and the LumiCleanseTM or LumiBelTM gel. 
 The KT-DTM Lamp is a class I
Medical Electrical Equipment. It is compliant with IEC60601-1 3rd edition: 2005 and IEC60601-2-57 (2011-01-31) and is verified to be functional at an altitude no greater than [***] meters. It
emits [***] blue light with a peak wavelength between [***] nm. 
 The KT-DTM Lamp contains three large LED panels, secured by hinges that allow the
panels to fold around the areas to be treated such as the face or to lay flat to treat larger surfaces such as the back or chest. The patient can be treated in a sitting or lying position depending on preference and area to be treated. 

The KT-DTM Lamp is an electrical device designed for indoor use only. The irradiance or power density of the KT-DTM Lamp is within acceptable safety
limits defined in ANSI Z.136 International Standard Regulations on optical exposure to skin, which specifies that continuous light exposure on human skin between 400–700 nm cannot exceed 200
mW/cm2. 
 INTENDED USES 

The KT-DTM Lamp is intended to be used in conjunction with the LumiCleanseTM gel in the treatment of
acne vulgaris in patients aged 16 years and over. The treatment has been studied in a randomized, multi-centre clinical trial, with a single-paneled version of the lamp and the LumiCleanse Gel device, administered twice a week for six weeks. 

  
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 The KT-DTM Lamp is intended to be used in conjunction with the KLOX LumiBelTM gel for the reduction
of wrinkles and the embellishment of the skin, resulting in skin rejuvenation. The safety and efficacy of the KLOX LumiBelTM System have been demonstrated in a clinical trial with a single-paneled version of the lamp where it was applied once a
week for four weeks. 

  

			
	“[***] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 406 under the Securities Act of 1933, as
amended”

  

 LEO CONFIDENTIAL 
  

 Schedule 4 

Product Marks 
 Part A- KTI Trade Marks
– See below 
 [***] 
 Part B- Trade Marks
used by LEO 

  

			
	“[***] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 406 under the Securities Act of 1933, as
amended”

  

 CONFIDENTIAL 
  

 Part C- KTI House Mark – See below 

 

	[***]	

  
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 Schedule 5 

KTI Patent Rights 
  

	[***]	[3 pages redacted] 

  

			
	“[***] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 406 under the Securities Act of 1933, as
amended”

  

 LEO CONFIDENTIAL 
  

 Schedule 6 

Regions 
 PART A [***] [6 pages
redacted] 

  

			
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amended”

  

 LEO CONFIDENTIAL 
  

 PART B 

Region Evaluation. The following shall constitute the conceptual principles for evaluating a Region as potentially being discontinued for the purposes
of Clause 10.2(a) or 10.2(b) of the Agreement, as a result of discontinuance of individual countries: 
  

	1)	The selection of applicable countries must follow the Annual Marketing Plan for the Licensed Product. 

  

	2)	Countries set out in the Annual Marketing Plan as not being included (for Commercial Reasonable Principles) should not count in determining whether a Licensed Product is a Discontinued Product in the Region, and should
be considered a “sole discretion” country for such Licensed Product. 

  

	3)	“Sole discretion” countries (listed as sub-set of each Region in Part A of this Schedule 6) should not be factored into the evaluation of an entire Region for the purpose of such Clause 10.2(a) or 10.2(b), but
nonetheless continues to form part of the Region “without counting in”. 

  

	4)	Any reference to country(ies) below excludes “sole discretion countries”. 

  

	5)	The discontinuance in a single country does not necessarily trigger a Licensed Product becoming a Discontinued Product. 

  

	6)	However: 

  

	 	a.	If a country, which has been included in the Annual Marketing Plan for the Licensed Product is discontinued, the evaluation of whether such discontinuance may be considered a discontinuance of the Region should be based
on the remaining “value” of the other countries intended for launch according to the applicable Annual Marketing Plan; 

  

	 	b.	The GDP of the respective countries are used as the basis for their value; 

  

	 	c.	If the remaining accumulated GDP value of countries still remaining to be launched in accordance with overall timelines in the Annual Marketing Plan, or which remain as active commercial countries, falls below [***]% of
the total accumulated GDP value of the original countries determined in the Annual Marketing Plan as reasonable countries for launch, the Parties shall discuss in good faith the reasons for such discontinuance; 

 

	 	d.	If found acceptable, the Region shall not be considered a discontinued Region. 

  

	 	e.	If not found acceptable by KTI to fall below above threshold, then the affected Region shall be deemed to be discontinued and the Licensed Products in question shall be deemed to be Discontinued Products.

  

			
	“[***] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 406 under the Securities Act of 1933, as
amended”

  

 LEO CONFIDENTIAL 
  

 Schedule 7 

Distributors 
 The following partners are
respectively considered current LEO Distributors and/or Authorized Wholesalers, as the case may be, utilized by LEO in their ordinary course of business, and are provided herein for reference and to avoid a potential misunderstanding in the use the
respective definitions provided for in this Agreement 
  

	[***]	[6 pagesd redacted] 

  

 LEO CONFIDENTIAL 
  

 Schedule 8 

LEO Pharma Animal Welfare requirements 

LEO Pharma Animal Welfare Policy 
 LEO Pharma Animal
Welfare Policy applies for in vivo work at LEO as well as for in vivo work carried out by a contractor for LEO either by itself or by using sub-contractors in connection with activities covered by such service agreement. The same
applies in connection with a research collaboration if the partner either by itself or by using sub-contractor carries out in vivo work in connection with such research collaboration. For the purpose of this Policy contractor and partner are
referred to as “Contractor”. 
 The policy states that animal welfare standards and performance criteria at Contractor’s and
sub-contractor’s premises must be at least on the same level as if the in vivo work would have been carried out at the premises of LEO. 
 If
these standards are not met (based on LEO Pharma Animal Welfare Officer’s decision) effective arrangements must be undertaken by the Contractor to assure compliance within a specified timeframe, as agreed between LEO and Contractor in writing.

 Contractor is required to follow the animal welfare requirements as described in the European Convention for the Protection of Vertebrate Animals used
for Experimental and other Scientific Purposes (ETS No. 123); (http://conventions.coe.int/Treaty/en/Treaties/Html/123.htm). All animals must be accommodated and taken care of as set forth in the Guidelines for accommodation and care of animals
attached to the European Convention as Appendix A with the addition of the specific LEO requirements listed below regardless where the in vivo work is carried out. 

Contractor is also required to comply with the principles of animal welfare as set forth in EU Directive 2010/63/EU regardless where the in vivo work
is carried out. 
 The following species specific sections address areas where LEO has additional requirements to the above mentioned guideline and
legislation. 
  

	1	General additional requirements 

  

	 	•	 	Unless justified on veterinary or scientific grounds, animals must not be single housed 

  

	 	•	 	Unless justified on veterinary or scientific grounds, animals must be housed in environmental enriched cages/pens allowing them to express a variety of natural behaviours 

 

	2	Mice (Mus musculus) 

  

	 	•	 	LEO requirements for environmental enrichment for mice are: 

  

	 	•	 	a shelter (preferably made of cardboard) 

  

	 	•	 	a gnawing stick 

  

 LEO CONFIDENTIAL 
  

	 	•	 	a cardboard tube 

  

	 	•	 	nesting material 

  

	 	•	 	solid bottom cages with bedding – no wire/grid floors 

  

	3	Rats (Rattus norvegicus)  

  

	 	•	 	The height of the rat cage must allow the rats in the particular cage to rear on its hind legs. The requirements at LEO are that rats are housed in type IV cages (or equivalent) with raised lids. Rats < 200 grams (at
the end of the study) can be kept in type III cages with raised lids 

  

	 	•	 	LEO requirements for environmental enrichment for rats are: 

  

	 	i)	a shelter (preferably cardboard tube(s)) 

  

	 	ii)	a gnawing stick 

  

	 	iii)	a ‘Jolly Ball’ (spatial and tactile stimulus) 

  

	 	iv)	nesting material 

  

	 	v)	solid bottom cages with bedding – no wire/grid floors 

  

	4	Guinea-pigs (Cavia porcellus) 

  

	 	•	 	All guinea-pigs in one cage must have the possibility to seek shelter simultaneously 

  

	 	•	 	Guinea-pigs must have access to manipulable and chewable materiel 

  

	5	Gerbils and ferrets (Merinos sp. and Putorius putorius ) 

  

	 	•	 	Nesting material must be provided for gerbils 

  

	 	•	 	Gerbils must have deep layers of bedding to dig tunnels 

  

	 	•	 	Ferrets cages/pens must be divided into sections for different activities, e.g. by raised platforms/shelves and spatial dividers 

  

	 	•	 	Environmental enrichment must be provided e.g. as tubes, containers, little water troughs 

  

	6	Rabbits (Oryctolagus cuniculus)  

  

	 	•	 	Rabbits must have access to environmental enrichment such as straw, straw blocks, gnawing sticks A raised platform/shelf with a size allowing the rabbit to lie down must be provided. The platform/shelf must have a
height allowing the rabbit to lie under this using it as a shelter. The platform/shelf must not cover more than 40 % of the cage/pen surface area 

  

 LEO CONFIDENTIAL 
  

	 	•	 	When group housing rabbits, the cage/pen must have visible sections/dividers 

  

	 	•	 	The height of the cage/pen must allow for the rabbit to sit upright 

  

	7	Minipigs (Sus scrofa) 

  

	 	•	 	Minipigs must have access to straw or other manipulable material. This material must be changed regularly in order to have novelty value 

 

	 	•	 	Minipigs must be housed in pens with the possibility to divide it for different functions (foraging, lying down, urination and defecation) 

 

	8	Dogs (Canis familiaris) 

  

	 	•	 	Dogs must have access to raised platforms or equivalent placed in a height that allows the dog to stand on the platform and to stand and rest under it. 

 

	 	•	 	Dogs should daily be allowed to exercise in a separate area, if possible with other dogs and under staff supervision. 

  

	9	Non-human primates 

  

	 	•	 	Marmosets (Callithrix spp) and Tamarins (Sanguinus spp): the minimum cage height must be 1.8 meters (not 1.5 m with the top of the enclosure at least 1.8 from the floor) 

Health monitoring 
 Health monitoring at LEO Pharma
follows the principles of FELASA (Recommendations for the health monitoring of rodent and rabbit colonies in breeding and experimental units) (http://www.lal.org.uk/pdffiles/LAfel2.PDF). 

Animals used in in vivo studies for LEO should be procured from vendors able to demonstrate the absence of these and potentially additional pathogens.
A sentinel programme including testing for the full FELASA list should be carried out in the animal room where in vivo studies for LEO are carried out. If a sentinel programme is not in place, Contractor and LEO must agree on how health
monitoring is assured. 
 LEO is willing to enter into a dialogue with the Contractor in order to assist in finding the best possible solutions/equipment
for meeting our requirements. 
 LEO Pharma Animal Welfare Officer: 

Thomas Bertelsen, D.M.V 
 Chief Animal Welfare Officer 

Disease Pharmacology - Animal Facility 
 LEO Pharma A/S 

55, Industriparken · 2750 Ballerup · Denmark 

  

 LEO CONFIDENTIAL 
  

 Phone +45 7226 3539 

Mobile +45 2099 4012 
 E-mail thomas.bertelsen@leo-pharma.com 

  

 LEO CONFIDENTIAL 
  

 Schedule 9 

Form of Quarterly Statement 
  

	TO:	KLOX Technologies inc. 

 275 Armand-Frappier 

Montreal, Quebec, Canada H7V 4A7 

Fax: 450-680-4549 
 Attention:
CFO 
  

	RE:	License and Joint Venture Agreement made and entered into as of the [ • ] day of [ • ], 2014 by and between KLOX Technologies Inc. and LEO Pharma A/S (the “Agreement”)

 With reference to Section 13.6 (c) of the Agreement, I, [ • ], hereby declare to you as follows: 

 

	1.	I am the [ • ] of LEO and as such, I have actual knowledge of the matters herein certified; 

  

	2.	This Quarterly Statement constitutes the Quarterly Statement for the Quarter ending [ • ]; 

  

	3.	Attached hereto as Appendix 1 is a true, complete and correct calculation of the share of the Net Proceeds payable by LEO to KTI pursuant to Clause 13.2, including (i) the details of each arrangement giving rise to
any and all Net Proceeds, (ii) the calculations showing how such share was calculated, and (iii) the details of all consideration received by LEO included as a Net Proceed; 

 

	4.	Attached hereto as Appendix 2 is a true, complete and correct calculation of the share of the Adjusted Net Sales payable by LEO to KTI pursuant to Clause 13.4, including, on a Licensed Product-by-Licensed Product and
country-by-country basis, (i) calculations showing how such share was determined, (ii) the details of all Net Sales and all customary deductions authorized pursuant to the definition of Net Sales, and (iii) the details of the
Permitted Deductions; 

  

 LEO CONFIDENTIAL 
  

	5.	Attached hereto as Appendix 3 is a true, complete and correct summary of any Licensed Products distributed free of charge or used for clinical or pre-clinical trials, samples or compassionate use; 

 

	6.	Details with respect to all applicable taxes withheld and exchange rates used in determining such payments due by LEO to KTI have been included in the above mentioned accountings, as well as any prior period adjustments
required in accordance with DK-GAAP; 

  

	7.	Save and except as set forth above, no other information is required to confirm the correctness or accuracy of the amounts payable for this Quarter; and 

 

	8.	Any and all information provided to KTI, either electronically or in any other acceptable format and whether signed or not, shall be final and binding upon LEO, subject to the annual reconciliation and to the audit
rights of KTI. 

  

			
	“[***] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 406 under the Securities Act of 1933, as
amended”

  

 LEO CONFIDENTIAL 
  

 Schedule 10 

No Fly Zone 
 “LEO Competitor”
means each entity [***] or [***]. 
 In the event a LEO Competitor [***] are acquired by another entity, such acquiring entity shall become a LEO Competitor
automatically. Conversely, should any of the listed entities cease to meet the criteria as set forth above, such entity would no longer be deemed to be a LEO Competitor. 

LEO Competitors specifically include as of the Effective Date the following: 

[***] [2 pages redacted]

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