Document:

SUPPLY AGREEMENT

 

This
Supply Agreement (this “Agreement”), dated as of 15th of September, 2021 (“Effective Date”),
is by and between by and between Quoin Pharmaceuticals, Inc., a Delaware corporation located at 2127 Pleasant Forest Ct., Ashburn,
VA 20148 (“Quoin”) and AFT Pharmaceuticals Ltd., a company incorporated under the laws of New Zealand located
at Level 1, 129 Hurstmere Road, Takapuna, Auckland, 0622, New Zealand (“Licensee”). Quoin and Licensee are sometimes
referred to herein individually as a “Party,” and together as the “Parties.”

 

WITNESSETH:

 

WHEREAS, Quoin
and Licensee are parties to that certain License and Distribution Agreement, dated the date hereof (“License
Agreement”), pursuant to which Quoin granted to Licensee an exclusive license under the Product Technology for Licensee to
obtain the Regulatory Approvals and Exploit the Product in the Territory, subject to the terms of the License Agreement;

 

WHEREAS,
Section 4.4 of the License Agreement provides that the Parties shall enter into a commercial supply agreement pursuant to which
Quoin will manufacture and supply, or have manufactured and supplied, to Licensee the Product for sale in the Territory; and

 

WHEREAS,
the Parties now desire to enter into this Supply Agreement to establish the terms and conditions under which Quoin will have the Product
manufactured and supplied to Licensee for sale in the Territory.

 

NOW,
THEREFORE, in consideration of the premises and mutual covenants contained herein and for other good and valuable consideration,
the receipt and adequacy of which are hereby acknowledged, the Parties hereto agree as follows:

 

Article I

 

DEFINITIONS

 

Section 1.1         Definitions.
Capitalized terms used in this Agreement have the meanings specified in Schedule 1 to this Agreement. As used herein the words “including”
or “includes” shall be deemed to mean “including, without limitation,” or “includes, without limitation.”

 

Article II

 

MANUFACTURE AND SALE OF PRODUCT

 

Section 2.1         Engagement.
During the Term and upon the terms and subject to the conditions set forth herein, Quoin agrees that it will manufacture and supply the
Product to Licensee, and, in turn, Licensee agrees that it will exclusively purchase one hundred percent (100%) of the Licensee’s
requirements of the Product from Quoin for commercialization solely within the Territory. Quoin shall have the right to subcontract its
obligations under this Agreement to a third party with prior notification to Licensee (it being agreed that, wherever Quoin makes a commitment
under this Agreement with respect to the manufacture and supply of Product, such obligation shall be deemed satisfied if performed by
such subcontractor).

 

Section 2.2         Sale
and Distribution. The Licensee will sell the Product only in the Territory and will not directly or indirectly sell or otherwise
distribute the Product outside of the Territory.

 

     

     

    

 

Section 2.3         Packaging
and Labeling. The Licensee will be responsible for ensuring the accuracy of all information contained in the labels or labeling for
Product and the compliance of all such labels and labeling with applicable Law and the Regulatory Approvals. Licensee will approve all
artwork and labeling information necessary for the packaging and labeling of the Product. Quoin will, or will cause its contractors to,
supply all packaging and labels for Product under this Agreement. Such packaging and labels will be in accordance with the Specifications.
Quoin will make any changes to labeling and packaging Specifications required in writing by the Licensee, at the Licensee’s sole
cost and expense (including the cost of any obsolete labeling inventory), within a reasonable timeframe to be agreed upon in writing
by both Parties. The Licensee will be responsible for submitting any such changes to all applicable Governmental Authorities for approval.

 

Section 2.4         Facility
Maintenance; Inspection; Reports.

 

(a)        Quoin
shall, at all times, maintain and operate, or cause its contractors to maintain and operate, all facilities where Product is manufactured,
packaged, tested, stored, warehoused or shipped in compliance with cGMP. Not more than once every twelve (12) months, Quoin shall permit,
or cause its contractors to permit, quality assurance representatives of the Licensee or designated third parties (subject to appropriate
confidentiality obligations) to inspect such facilities, operations, documents, and records directly related to the handling, manufacture,
testing, inspection, packaging, storage, disposal and transportation of the Product by Quoin or the applicable contractor upon reasonable
notice (which shall not be less than ten (10) days), during normal business hours and on a confidential basis. Quoin shall also
permit, and cause its contractors to permit, representatives of the applicable Governmental Authority to inspect such facilities as requested
by the such Governmental Authority.

 

(b)        Quoin
shall maintain adequate and accurate records consistent with the applicable Specifications, including records covering quality control
testing and release of the Product and all other manufacturing services provided hereunder in material compliance with cGMP.

 

(c)        Quoin
shall notify Licensee as soon as reasonably practicable and in any event within five (5) business days following receipt of notice
of any Governmental Authority inspection of the manufacturing facility if such inspection pertains to the Product.

 

Section 2.5         Adverse
Events. Prior to the launch of Product the Parties shall each assign a representative to negotiate in good faith and agree on a process
and procedure for sharing adverse event information which shall be documented in a safety data exchange (SDEA) agreement which the Parties
shall use commercially reasonable efforts to agree upon and execute prior to commercialization of the Product.

 

Article III

 

FORECASTS, ORDERS AND SHIPMENT

 

Section 3.1         Forecasts.
In order to assist in the planning of production runs for the Product, the Licensee will, at least one hundred and eighty (180) days
prior to the commercial Launch of the Product in the Territory, provide Quoin with a non-binding written forecast of estimated
quantities of Product that the Licensee anticipates ordering from Quoin during the next eighteen (18) month period (the
 “Forecast”). This initial Forecast will be updated at least two (2) business days after the first day of the
month following the first calendar quarter after the date hereof, and at least two (2) business days after the first day of the
month for each successive calendar quarter, and each such updated Forecast will be promptly delivered to Quoin by the Licensee. The
first three (3) months of each such Forecast (the “Firm Order Period”) shall be binding on Licensee. The
remaining fifteen (15) months of each such forecast shall be non-binding estimates for planning purposes. No Forecast shall
be required for any period of time that extends beyond the Term (as in effect at the time of such Forecast). The Licensee will
forecast in amounts comprising full batch and in multiples of batch quantities, as such quantities are set forth on Schedule
6.1. Each Forecast will be made by the Licensee in good faith, taking into account reasonable projections of demand for the
Product including, without limitation, allowing for reasonable safety stock of finished Product.

 

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Section 3.2         Orders.

 

(a)        The
Licensee will place firm purchase orders (“Firm Orders”) for Product in writing for delivery at least ninety
(90) days after the Purchase Order Date. A Firm Order shall only be deemed binding on Quoin upon acceptance in writing by Quoin
provided that Quoin shall accept or reject each Firm Order in writing within seven (7) Business Days after Quoin’s
receipt of each valid order which shall require that such order meets the requirements specified below. Each Firm Order will specify
the quantity and description of each Product ordered, the requested delivery date (which delivery dates will not be on a Saturday,
Sunday or holiday), the delivery address, the transportation method and carrier and any special instructions requested; provided
that no Firm Order shall include a quantity of a Product that is greater than 125% of the quantity of such Product set forth in the
Firm Order Period of the most recent Forecast delivered to Quoin by the Licensee. In the event that the Firm Orders exceed 125% of
the most recent forecast, Quoin is not obligated but shall use commercially reasonable efforts to deliver the additional quantities.
The minimum size of any order placed by the Licensee will be a full batch (or multiples of a full batch) in accordance with Schedule
6.1 hereto, except with the prior approval of Quoin and payment of any additional expenses or fees that are required for split
batches. The Product set forth in Firm Orders will be delivered to such location as the Licensee designates in writing to Quoin from
time to time. The date an order will be deemed placed (the “Purchase Order Date”) will be the date that Quoin
actually receives the purchase order form. The Licensee will be fully responsible for any changes to a Firm Order. Orders will be
deemed accepted by Quoin unless Quoin provides notification of rejection to the Licensee within seven (7) Business Days of
receipt of the Firm Order.

 

(b)       Quoin
will use its commercially reasonable efforts to supply the Product in accordance with each Firm Order placed pursuant to the terms of
this Agreement by the Licensee to the extent accepted by Quoin including the quantities and delivery dates in each Firm Order. Each Firm
Order will set forth a delivery date, not less than ninety (90) days after the date of such order.

 

(c)        In
the event that at any time Quoin foresees that it will be unable to supply to Licensee (or its nominee) in whole or in part an ordered
or forecasted quantity of Product by the delivery date for any reason, including a Force Majeure event, Quoin shall notify Licensee of
such inability as soon as possible, the reasons therefor and the date such inability is expected to end, the quantities of Product available
during such period and the proposed amount of the raw materials and/or resources prioritized to Licensee in the event such inability
is caused by a shortage of raw materials and/or resources required for the Manufacture of Product.

 

(d)        Quoin
shall deliver the Product to Licensee with at least 85% (eighty five percent) of remaining shelf life at the shipment date
in accordance with Section 3.2(b).

 

(e)        The
terms of this Agreement shall prevail over any conflicting, inconsistent or additional terms set forth in any Firm Order, invoice, or
acceptance form.

 

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Section 3.3         Delivery.

 

(a)        All
Product shipped under this Agreement will be shipped EXW the facility where the Product is manufactured. The Licensee shall make
necessary arrangements to pick up the shipment and will pay all freight, insurance charges, taxes, import and export duties,
inspection fees and other charges applicable to the sale and transport of Product purchased by the Licensee. Title and risk of loss
and damages to Product purchased by the Licensee will pass to the Licensee upon pickup of the Product by the Licensee’s
carrier at the facility of manufacture. In the event of damage or loss to the Product after delivery, the Licensee will be
responsible to file claims with the carrier. Quoin shall notify Licensee of the following information concurrently with each
shipment of Product: (i) date of shipment, (ii) quantity and type of Product shipped, and (iii) order number or other
identifying information.

 

(b)        Quoin
shall perform quality assurance testing with respect to the Product sold hereunder, including stability testing, so that the Product
conforms with the Specifications. Quoin shall provide Licensee with a Certificate of Analysis (“COA”) and a Certificate
of Compliance (“COC”) confirming that the Product in such shipment has been tested in accordance with the Regulatory
Approval and meets the Specifications via facsimile transmission. Any deviations and investigations related to such Product shall be
completed in compliance with applicable Regulatory Approval and the Quality Agreement (as defined in Section 5.5 hereof).

 

Article IV

 

REPRESENTATIONS AND WARRANTIES

 

Section 4.1         Representations
and Warranties of Quoin. Quoin hereby represents and warrants to the Licensee as follows:

 

(a)        Product
Compliance. All Product delivered pursuant to this Agreement by Quoin (or any sub-contractor thereof) to the Licensee or its designee
during the Term will at shipment be in compliance in all material respects with this Agreement, the Specifications and the Quality Agreement.
At the time Quoin makes each shipment of Product available for pick-up by Licensee (or Licensee’s carrier), the Product shall be
free of any lien or other encumbrance.

 

(b)       Authorization.
This Agreement has been duly executed and delivered by Quoin and, assuming due execution and delivery by the Licensee, constitutes a
valid and binding obligation, enforceable against Quoin in accordance with its terms, except as enforceability may be limited by bankruptcy,
fraudulent conveyance, insolvency, reorganization, moratorium and other laws relating to creditors’ rights generally and by general
equitable principles. The execution, delivery and performance of this Agreement have been duly authorized by all necessary action on
the part of Quoin and its respective officers and directors.

 

(c)       Absence
of Conflicts. The execution, delivery and performance of this Agreement by Quoin does not conflict with or constitute a default under
any agreement, instrument or understanding, oral or written to which it is a party or by which it may be bound, does not conflict with
any provision of any of its organizational documents and does not conflict with or violate any applicable Law or court order or decree.

 

(d)       Organization
and Standing. Quoin is a corporation, duly organized, validly existing and in good standing under the laws of Delaware.

 

(e)        Power
and Authority. Quoin has the corporate power and authority to execute, deliver and perform this Agreement and to consummate the transactions
contemplated hereby.

 

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(f)        Compliance
With Law. Quoin has and will maintain throughout the Term of this Agreement all permits, licenses, registrations and other forms
of governmental authorization and approval as required in order for Quoin to execute and deliver this Agreement and to perform its obligations
hereunder.

 

(g)       No
Debarment. Quoin is not debarred and has not and will not use in any capacity the services of any person debarred under subsection
306(a) or (b) of the Generic Drug Enforcement Act of 1992. If at any time this representation and warranty is no longer accurate,
Quoin shall promptly notify Licensee of such fact.

 

Section 4.2         Representations
and Warranties of the Licensee. The Licensee hereby represents and warrants to Quoin as follows:

 

(a)        Authorization.
This Agreement has been duly executed and delivered by the Licensee and, assuming due execution and delivery by Quoin, constitutes a
valid and binding obligation, enforceable against the Licensee in accordance with its terms, except as enforceability may be limited
by bankruptcy, fraudulent conveyance, insolvency, reorganization, moratorium and other laws relating to creditors’ rights generally
and by general equitable principles. The execution, delivery and performance of this Agreement have been duly authorized by all necessary
action on the part of the Licensee and its respective officers and directors.

 

(b)       Absence
of Conflicts. The execution, delivery and performance of this Supply Agreement by the Licensee does not conflict with or constitute
a default under any agreement, instrument or understanding, oral or written to which it is a party or by which it may be bound, does
not conflict with any provision of any organizational documents of the Licensee and does not conflict with or violate any applicable
Law or court order or decree.

 

(c)        Organization
and Standing. The Licensee is a corporation, duly organized, validly existing and in good standing under the laws of New Zealand.

 

(d)       Power
and Authority. The Licensee has the corporate power and authority to execute, deliver and perform this Agreement and to consummate
the transactions contemplated hereby.

 

(e)        Product
Compliance in the Territory. Product delivered by Quoin in accordance with this Agreement is and shall be during the Term consistent
in all respects with all Laws applicable to the manufacture, import, sale, use, storage and commercialization of the Product in the Territory.

 

Section 4.3         Disclaimer.
THE REPRESENTATIONS AND WARRANTIES SET FORTH IN THIS AGREEMENT ARE THE PARTIES’ ONLY WARRANTIES AND NO OTHER WARRANTY, EXPRESS, IMPLIED
OR STATUTORY, WILL APPLY. EACH PARTY EXPRESSLY DISCLAIMS ALL OTHER WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY, INCLUDING
WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. FOR THE AVOIDANCE OF DOUBT, EACH PARTY EXPRESSLY DISCLAIMS ANY AND
ALL WARRANTIES OF NON-INFRINGEMENT THAT ARE NOT EXPRESSLY SET FORTH IN THIS AGREEMENT.

 

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Article V

 

QUALITY ASSURANCE

 

Section 5.1         Quoin’s
Covenants. Quoin hereby covenants during the Term that it will:

 

(a)        manufacture,
fill, package, test, handle, store, warehouse and ship the Product in conformity with this Agreement, Quality Agreement (subject to Section 5.5
of this Agreement) and the Specifications;

 

(b)       promptly
(but in any event no later than five (5) Business Days after becoming aware) inform Licensee of any adverse events related to the
Product and any inspections, communications, or material issues raised by the FDA in connection with the Manufacturing of the Product,
and shall provide Licensee with copies of any correspondence (including emails) relating thereto;

 

(c)       obtain
and maintain all permits reasonably necessary to manufacture and supply Product in accordance with this Agreement; and

 

(d)       if
Quoin becomes aware of any Product supplied to Licensee hereunder that have not been manufactured in accordance with the Specifications,
promptly inform Licensee in writing.

 

Section 5.2         The
Licensee’s Covenants. The Licensee hereby covenants during the Term that it will:

 

(a)        hold,
store, handle, ship, deliver, distribute, offer for sale, and/or sell the Product in accordance with applicable Law and the terms of
the License Agreement, and in compliance with the Specifications;

 

(b)       except
as set forth herein or in the Quality Agreement between the Parties, upon delivery of the Product to the Licensee, the Licensee will
be solely responsible for compliance with all quality control testing and other testing requirements set forth in this Agreement and,
further, all applicable Law with respect to the manufacture, import, sale, use, storage and commercialization of the Product in the Territory;

 

(c)       where
appropriate maintain the Regulatory Approvals for the Product in full force and effect throughout the Term.

 

Section 5.3         Rejection
of Delivered Product. Within thirty (30) days of receipt of any shipment of Product and applicable COA and COC by the Licensee at
its applicable warehouse, the Licensee will inspect the Product, COA and COC and advise Quoin of any defect revealed from such inspection
whereby the Product does not conform to the Specifications. Any Product not refused within thirty (30) days will be deemed accepted.
If the Licensee wishes to refuse acceptance, the Licensee will, within such 30-day period, provide written notice to Quoin of its refusal
to accept the defective Product and the reason(s) therefor. In the event a hidden defect (i.e., one which could not have been reasonably
identified during the initial 30-day Licensee inspection period) is discovered at a later date whereby the Product does not conform to
the Specifications, the Licensee shall inform Quoin within fifteen (15) days after Licensee becomes aware of the alleged hidden defect.
In the event that the Licensee refuses acceptance or rejects the Product due to a hidden defect, Quoin, upon confirmation of the reasons
for refusal or rejection of the Product, will replace within ninety (90) days or as soon as reasonably practicable the defective Product
at Quoin’s sole cost and expense (including the cost of shipping) or refund the Transfer Price and reimburse the shipping expense,
at the Licensee’s option. If Quoin and the Licensee do not agree on the refusal or rejection of Product, then either Party may
refer the matter for final analysis to a specialized laboratory of national reputation acceptable to both Parties for the purpose of
determining the results. Any determination by such laboratory will be final and binding upon the Parties. The cost of any such review
by a laboratory shall be borne by the Licensee if it is determined that the Product conforms to the Specifications, and by Quoin if determined
that it does not. Except as set out in this Section 5.3 and Section 10.1, Quoin shall have no liability to Licensee for any
defect for which it has not received notice from the Licensee as specified herein.

 

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Section 5.4         Recall.
Licensee, in consultation with Quoin, shall have the exclusive right to institute a recall and shall be responsible for managing the
recall and communications with customers and Governmental Authorities. The Parties shall cooperate with each other in connection with
any such efforts. In the event that any Product is quarantined or recalled by Licensee, or is subject to stop-sale action, whether voluntary
or by governmental action, it is agreed and understood that any reasonable and documented expenses, including any out-of-pocket administrative
costs and reasonable and documented fees of any experts or attorneys that may be utilized by either Party, government fines or penalties,
related to such recall, quarantine or stop-sale, will be borne by the Licensee unless it is determined that the reason for the quarantine,
recall or stop-sale action is solely the result of the failure by Quoin to manufacture and supply (or have manufactured and supplied)
Product that meets the Specifications therefor under this Agreement, and in such case such expenses will be the responsibility of Quoin.
If the Parties do not mutually agree on which Party is responsible for the recall or other field action, the responsibility for the recall
or field action shall be determined by a mutually acceptable independent qualified third party whose fees shall be shared equally by
the Parties.

 

Section 5.5         Quality
Procedures. Quoin and Licensee shall comply with the terms of the quality requirements set forth in a quality agreement to be negotiated
in good faith by the Parties and entered into by the Parties as soon as practicable after the date hereof (the “Quality Agreement”)
with respect to the manufacture of the Product. To the extent that any inconsistencies or conflicts exist between the Quality Agreement
and this Agreement with regard to quality requirements and compliance with applicable Law, the provisions in this Agreement shall prevail.

 

Section 5.6         Manufacturing
Changes.

 

(a)        Licensee
may unilaterally and in its sole discretion make one or more Required Manufacturing Changes by giving written notice thereof to Quoin,
whereupon the Parties shall cooperate in implementing such Required Manufacturing Changes as promptly as reasonably practicable. Licensee
may request one or more Discretionary Manufacturing Changes by giving at least ninety (90) days written notice thereof to Quoin, whereupon
if Quoin accepts the requested Discretionary Manufacturing Changes (such acceptance not to be unreasonably withheld or delayed), the
Parties shall cooperate in implementing such Discretionary Manufacturing Changes as promptly as reasonably practicable. Quoin shall promptly
provide to Licensee Quoin’s good faith and detailed estimate of the actual and reasonable costs that will be incurred by Quoin
resulting directly from any such Required or Discretionary Manufacturing Changes, including the cost of any obsolete inventory resulting
from the changes. All such reasonable and documented costs shall be borne by Licensee.

 

(b)       Quoin
shall not in any respect amend, modify or supplement the Specifications or the manufacturing process or any materials or sources of materials
used in connection with manufacturing the Product without the prior written consent of Licensee. Quoin may request or recommend one or
more Discretionary Manufacturing Changes by giving at least ninety (90) days written notice thereof to Licensee and shall provide Licensee
with appropriate documentation relating to any such changes to the Specifications or manufacturing process. If Licensee approves any
such Discretionary Manufacturing Change, Quoin may implement such change in accordance with the specifications provided by Quoin to Licensee.
All costs arising out of any Discretionary Manufacturing Changes requested by Quoin shall be borne by Quoin.

 

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Article VI

 

PRICE AND PAYMENTS

 

Section 6.1         Prices.
The price payable by the Licensee for Product will be the price set forth on Schedule 6.1 and will be adjusted pursuant to Section 6.3
(the “Transfer Price”). The price for the Product set forth on Schedule 6.1 shall be equal to the Manufacturing Costs
of Quoin. The method for calculation of the Transfer Price set forth in this Section 6.1 shall be valid for the Initial Term only,
Transfer Price of any agreed upon Extended Term shall be subject to negotiate between the Parties.

 

Section 6.2         Any
additional costs such as stability costs, scale-up expenses, and additional analytical or testing expenses that may be specifically incurred
at the request of Licensee or as required for the Manufacture of the Product in accordance with the Specifications and/or cGMP compliance
in the Territory will be charged at actual cost to the Licensee. Quoin will provide prior information to the Licensee before incurring
any such costs and/or expenses. A separate invoice will be issued to Licensee for such costs and/or expenses.

 

Section 6.3         Adjustment.
Quoin shall be permitted to increase the Transfer Price of Product to the extent of any documented actual increase in the Manufacturing
Costs.

 

Section 6.4         Invoices.
Quoin will send all invoices in respect of any Product to a single address specified in writing by the Licensee to Quoin following
the date that such Product subject to any Firm Order shall have been made available to the Licensee under Section 3.3(a).
Payments for Product sold hereunder will be made by the Licensee to Quoin within sixty (60) days after the date of the
invoice by electronic funds transmission in United States dollars as specified in any invoice, without any offset or deduction of
any nature whatsoever. All payments will be made to such account as Quoin will have specified in writing to the Licensee with
written confirmation of payment sent by email or facsimile to such address as Quoin will have specified in writing to the Licensee.
Licensee shall advise Quoin within ten (10) calendar days of any disputed invoice. If the Licensee fails to pay any undisputed
invoiced amount when due, a service charge will be imposed by Quoin equal to one percent (1%) per month of the outstanding amount
for each month or portion thereof that such undisputed amount is overdue.

 

Section 6.5         Taxes, etc.
The Licensee will bear solely the cost of any taxes, levies, duties or fees of any kind, nature or description whatsoever applicable
to the sale and transportation of Product sold by Quoin to the Licensee (“Licensee Taxes”), and the Licensee will
forthwith pay to Quoin all such sums upon demand. Quoin and Licensee shall cooperate with each other and use their commercially reasonable
efforts to obtain any certificate or other document from any person as may be necessary to mitigate, reduce or eliminate any such Licensee
Taxes.

 

Section 6.6         Separate
Sale. Each shipment of Product to the Licensee will constitute a separate sale, obligating the Licensee to pay therefor, whether
said shipment is in whole or only partial fulfillment of any order or confirmation issued in connection therewith.

 

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Section 6.7         Deductions.
Except as otherwise required by applicable law, the Licensee agrees not to make any deductions of any kind from any payments becoming
due to Quoin unless the Licensee will have received prior written authorization from Quoin authorizing such deduction.

 

Article VII

 

TERM AND TERMINATION

 

Section 7.1         Term. The provisions of this Agreement will commence on the date hereof and will continue in effect until the License Agreement
is terminated or expires pursuant to its terms, and this Agreement shall terminate simultaneously with such termination or expiration
of such License Agreement, unless earlier terminated in accordance with this Article VII (the “Initial Term”).
This Agreement may be extended in the same manner and for the same duration as, and simultaneously with, any extension of the term of
the License Agreement, subject to a mutually agreed upon price increase at the time of the extension, (the “Extended Term”
and together with the Initial Term, the “Term”).

 

Section 7.2         Termination.
Either Quoin, on the one hand, or the Licensee, on the other hand, as applicable, will have the right to terminate this Agreement with
immediate effect (except as otherwise stated below) upon written notice to the other upon the occurrence of the following:

 

(a)        Quoin,
on the one hand, or the Licensee, on the other hand, files a petition in bankruptcy, or enters into an agreement with its creditors,
or applies for or consents to the appointment of a receiver or trustee, or makes an assignment for the benefit of creditors, or becomes
subject to involuntary proceedings under any bankruptcy or insolvency Law;

 

(b)        Quoin,
on the one hand, or the Licensee, on the other hand, fails to cure any noncompliance with any of the terms and conditions hereof within
the time period specified in any prior written notice (which will be at least thirty (30) days) delivered to the non-compliant Party
by another Party; provided; however, that Quoin shall be permitted to terminate immediately upon delivery of written notice to Licensee
in the event that Licensee has failed at least two (2) times in any twelve (12) month period to pay to Quoin any amount invoiced
hereunder when such amount is due, other than where such failure is due to a good faith dispute over the amount owed;

 

(c)        The
termination of the License Agreement.

 

Section 7.3         Effects
of Termination.

 

If this Agreement is terminated
pursuant to Section 7.2:

 

(a)               
The Licensee acknowledges and agrees that Quoin will supply the Product for a period of six (6) months following termination
of this Agreement pursuant to Section 7.2(c) hereof, except where such termination of the License Agreement has been by Quoin pursuant
to Section 11.2.3 or 11.2.4 of the License Agreement. In all other cases, Quoin shall be entitled to cancel any Firm Order accepted prior
to the date of termination. Quoin will not be obligated to supply any Product ordered by the Licensee, with respect to any Product to
be delivered after the effective date of the termination. In addition, Quoin may at its election deliver in accordance with the shipping
terms of this Agreement all quantities of components, materials, APIs and work-in-progress, and finished product in Quoin’s or its
Affiliates’ possession, and to the extent such components, materials, API, work-in-progress, and finished product have not already
been paid for by Licensee and are not reasonably allocable to or usable for other activities being carried out by Quoin or its Affiliates,
then the Licensee shall purchase them from Quoin at Quoin’s actual cost, which amount shall be payable no later than thirty (30)
days after receipt thereof by the Licensee.

  

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(b)       Subject
to Section 7.3(a) hereof, termination or expiration of this Agreement for any reason will not relieve the Parties of any obligation
accruing prior to such termination or expiration (including in respect of any Firm Orders). The rights and obligations of the Parties
under Sections 5.3, 5.4, 5.5, 7.3, Article IX, Article X, and Article XI of this Agreement will survive the expiration
or termination of this Agreement.

 

Article VIII

 

FORCE MAJEURE

 

Section 8.1         Force
Majeure. Neither Party will be deemed to have defaulted under or breached this Agreement for failure or delay in fulfilling or performing
any term or provision of this Agreement (other than the payment of money) when such failure or delay will be caused (directly or indirectly)
by a circumstance beyond the reasonable control of the affected Party, including, without limitation, pandemic, fire; flood; accident;
explosion; terrorism, sabotage; strike, or any labor disturbance (regardless of the reasonableness of the demands of labor); civil commotions;
riots; invasions; wars (present or future); acts, restraints, requisitions, regulations, or directions of any Governmental Authority,
except where such acts, restraints, requisitions, regulations or directions are the result of a Party’s violation of applicable
Law; shortage of labor, fuel, or power; any failure of a third party supplier of the Product or raw materials to deliver timely; inability
to obtain or delays of transportation facilities; any act of God; any act of the other Party or any cause (whether similar or dissimilar
to the foregoing) beyond the reasonable control of such Party (each a “Force Majeure”). Any Party asserting its inability
to perform any obligation hereunder for any such contingency shall promptly notify the other Party of the existence of any such contingency
and shall use commercially reasonable efforts to mitigate such contingency and re-commence its performance of such obligation as soon
as commercially practicable. Neither Party shall suffer penalty or incur any liability for its inability to perform hereunder by reason
of Force Majeure. If a Party fails to perform any of its obligations under this Agreement by reason of Force Majeure and such non-performance
continues for a period of one hundred and eighty (180) days from the first occurrence of the event of Force Majeure, the other Party
may terminate this Agreement by providing written notice to that effect to the non-performing Party. In the event of such termination,
the provisions contained in Section 7.3 shall apply.

 

Article IX

 

CONFIDENTIALITY

 

Section 9.1         Non-disclosure
and Non-use Obligation. Each Party or its Affiliates or contractors may, from time to time, prior to or after the date hereof, disclose
to the other Party information of a technical or non-technical nature that is not generally known to the trade or public. Each Party
agrees that it will not, and will cause its Affiliates, and will use reasonable best efforts to cause its contractors, not to, use for
any purpose other than as necessary to perform its obligations under this Agreement, and will not disclose to anyone in any manner whatsoever,
any such information including, without limitation, information relating in any way to the products, processes, and services of each
Party or its Affiliates or contractors, which becomes known to the other Party on or prior to the date of the termination or expiration
of this Agreement. The obligations of this Section 9.1 will not apply to information (i) that is known to a Party as shown
by written records prior to its disclosure by Quoin or its contractors; (ii) that becomes public information or is generally available
to the public other than by an unauthorized act or omission of the other Party; or (iii) that is received by a Party from third
parties who are in rightful possession of such information and who are lawfully entitled to disclose such information and did not receive
such information from the other Party. Upon the termination or expiration of this Agreement, each Party will return or destroy (with
written confirmation thereof) to the other Party all documents that include confidential information of each Party or its contractors
including all copies of such documents or extracts therefrom, if any, and will make no further use of such information. This Agreement
shall not be deemed to restrict the receiving Party from complying with a lawfully issued governmental order or any other requirement
of applicable Law to produce or disclose confidential information of the other Party; provided that the receiving Party shall
have complied with the requirements of this Section 9.1. With respect to any such governmental order or requirement of applicable
Law, the receiving Party shall promptly notify the disclosing Party of such order so that the disclosing Party may seek to quash such
order or to obtain an appropriate protective order requiring that the confidential information that is the subject of such order or requirement
of applicable Law be held in confidence or, if disclosed, be used only for the purposes for which such order was issued or such requirement
of applicable Law covers. The receiving Party shall reasonably cooperate with the disclosing Party in any such proceeding. With respect
to any such order that is not quashed or any other requirement of applicable Law to disclose confidential information of the disclosing
Party, the receiving Party shall furnish only that portion of such confidential information that the receiving Party is advised by counsel
is legally required to be disclosed and the receiving Party shall, at the disclosing Party’s cost, exercise its reasonable efforts,
in its sole discretion, to obtain a protective order or other reliable assurance that confidential treatment shall be accorded to the
confidential information so disclosed. The receiving Party’s obligations shall be qualified to the extent it is reasonably able
to comply with the terms of this Section 9.1 depending upon the order or other legal requirement and the timing within which the
receiving Party is obligated to comply therewith.

 

     10

     

    

 

Article X

 

INDEMNIFICATION

 

Section 10.1      By Quoin. From and after the Effective Date, Quoin will indemnify, defend and hold harmless, and pay and reimburse, the Licensee,
its Affiliates and their respective officers, directors, employees, agents, advisors, and shareholders from and against any and all liabilities,
losses, claims, damages, costs, and expenses (including reasonable attorneys’ fees) (“Losses”) resulting from
or relating to any claim by a Third Party resulting from or arising out of: (i) Quoin’s or its contractors’ or Affiliate’s
negligence or willful misconduct or violation of applicable laws, or (ii) any breach by Quoin of any of its representations and warranties,
covenants, agreements or obligations contained in this Agreement; except to the extent such Losses arise as a result of the breach of
this Agreement, or the negligence, willful misconduct, violation of applicable laws, or breach of this Agreement by Licensee or its contractors
or Affiliates.

  

Section 10.2       By the Licensee. From and after the Effective Date, the Licensee will indemnify, defend and hold harmless, and pay and reimburse,
Quoin and its Affiliates and their respective officers, directors, employees, agents, advisors and shareholders from and against any
and all Losses resulting from or relating to any claim by a Third Party resulting from or arising out of: (a) the Licensee’s negligence
or willful misconduct or violation of applicable laws, or (b) the Licensee’s breach of any of its representations and warranties,
covenants, agreements or obligations contained in this Agreement; or (c) regarding any Product sold by Licensee or its Affiliates from
and after the Effective Date, including but not limited to (i) any claim for patent infringement, personal injury, death or property
damage or (ii) the use of the Product by any person; provided, however, that the Licensee shall not be liable for any Losses to the extent
arising from Quoin’s or it contractors’ negligence, willful misconduct, violation of applicable laws or breach of its representations
and warranties, covenants, agreements or obligations contained in this Agreement.

 

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

 

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

 

(b)        If a third party action, suit, claim or demand is involved, then, upon receipt of the Indemnification Notice, the Indemnitor shall, at
its expense and through counsel of its choice, promptly assume and have sole control over the litigation, defense or settlement (the
 “Defense”) of the Indemnification Matter, except that (i) the Indemnitee may, at its option and expense and through
counsel of its choice, participate in (but not control) the Defense; and (ii) the Indemnitor shall not consent to any Judgment, or agree
to any settlement that does not unconditionally release the Indemnitee, without the Indemnitee’s prior written consent. The Indemnitee
may not consent to the settlement or entry of judgment in any such action, suit, claim or demand without the Indemnitor’s prior
written consent. The Indemnitee shall fully cooperate with the Indemnitor in the Defense as the Indemnitor may request and at its expense.
In any event, the Indemnitor and the Indemnitee shall fully cooperate with each other in connection with the Defense including by furnishing
all available documentary or other evidence as is reasonably requested by the other.

  

Section 10.4       Insurance.
At all times from the Effective Date through that date which is three (3) years after the termination or expiration of this Agreement,
each of the Licensee and Quoin will maintain general liability insurance in the amount of not less than USD $5,000,000 per occurrence
and USD $5,000,000 in aggregate and product liability insurance (or self-insurance), which is reasonable and customary in the USA pharmaceutical
industry for companies of comparable size, provided that in no event shall the product liability insurance amounts be less than USD $5,000,000
per occurrence and USD $5,000,000 in the aggregate limit of liability per year. Each of the Licensee and Quoin shall add the other party
as additional insured in their general liability and product liability policy and provide written proof of such insurance to the other
Party upon request.

 

Section 10.5       Limitations.

 

(a)     In no event shall either Party be liable by reason of any breach of any representation, warranty, condition or other term of this Agreement
or any duty of common law, for any consequential, special, indirect or incidental or punitive loss or damage (whether for loss of current
or future profits, loss of enterprise value or otherwise); provided, however, that the foregoing does not limit any of the obligations
or liability of either Party or its Affiliates under Sections 10.1 and 10.2 with respect to claims of unrelated third parties or liability
arising from fraud or willful misconduct of a Party or its Affiliates or contractors, or damages caused by a Party’s breach of
Article IX.

     12

     

    

 

(b)        In the event that either Party asserts or claims that the other Party has breached any of its obligations hereunder the other Party’s
maximum liability under or in connection with any such claim herein shall be limited to the amounts paid and payable by Licensee to Quoin
hereunder; provided, however, that the foregoing shall not limit any liability or obligations under Sections 10.1 and 10.2 with respect
to claims of unrelated third parties or arising from fraud or willful misconduct of either Party or its Affiliates or contractors.

 

 

Article XI

 

MISCELLANEOUS

 

Section 11.1       Assignment.
Neither Party may assign its rights or obligations under this Agreement without the prior written consent of the other Party ; provided,
however either Party may assign its rights and obligations under this Agreement, without the prior written consent of the other Party,
to an Affiliate or to a successor of the assigning Party by reason of merger, sale of all or substantially all of its assets or the portion
of its business which relates to a Product, or any similar transaction. Any permitted assignee or successor-in-interest will assume all
obligations of its assignor under this Agreement. No assignment will relieve either Party of its responsibility for the performance of
any obligation. This Agreement will be binding upon and inure to the benefit of the Parties hereto and their respective successors and
permitted assigns.

 

Section 11.2       Severability.
If any provision of this Agreement is held to be illegal, invalid or unenforceable by any Law or public policy, the remaining provisions
of this Agreement will nevertheless remain in full force and effect and will not be affected by the illegal, invalid or unenforceable
provision or by its severance herefrom as long as the economic or legal substance of the transactions contemplated hereby is not affected
in any manner materially adverse to either Party. Upon such determination that any term or other provision is invalid, illegal or unenforceable,
the Parties will negotiate reasonably and in good faith to modify this Agreement so as to effect the original intent of the Parties as
closely as possible in an acceptable manner in order that the transactions contemplated hereby are consummated as originally contemplated
to the greatest extent possible.

 

Section 11.3       Notices.
All notices and other formal or legal communications required or permitted to be given or made pursuant to this Agreement shall be
in writing signed by the sender and shall be deemed duly given (a) on the date delivered, if personally delivered, (b) on
the date sent by telecopier with automatic confirmation by the transmitting machine showing the proper number of pages were
transmitted without error, or (c) on the Business Day after being sent by Federal Express or another recognized overnight mail
service which utilizes a written form of receipt for next day or next Business Day delivery  in each case
addressed to the applicable Party at the address set forth below; provided that a Party may change its address for receiving notice
by the proper giving of notice hereunder:

 

     13

     

    

 

(a)        if
to the Licensee, to:

 

Attention: Hartley Atkinson

 

Level 1

 

129 Hurstmere Road

 

Takapuna

 

Auckland 0622

 

New Zealand

 

With a copy (which shall not constitute
notice) to:

 

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

 

One Financial Center

 

Boston MA 02111

 

Phone: +1 617 348 1834

 

Email: TMTuchin@mintz.com

 

Attention: Tali Tuchin

 

(b)       if
to Quoin, to:

 

with a copy (which shall not constitute
notice) to:

 

Blank Rome LLP 

One Logan Square, 130 N 18th St. 

Philadelphia, PA 19103-6998 

Attention: Peter I Tsoflias, Esq. 

Facsimile: 202.379.9021 

Email: PTsoflias@blankrome.com

 

It is understood and agreed that this Section 11.3
is not intended to govern the ordinary course business communications necessary between the Parties in performing their duties, in due
course, under the terms of this Agreement, including the placement of orders and the delivery of Forecasts.

 

Section 11.4       Applicable
Law. THIS AGREEMENT IS MADE UNDER, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, UNITED
STATES OF AMERICA, APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED SOLELY THEREIN, WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS
OF LAW.

 

     14

     

    

 

Section 11.5       Arbitration.
If a matter cannot be resolved by the Parties, any said dispute shall be submitted to binding arbitration for final decision, and only
through binding arbitration. Any such arbitration shall be held in New York, New York, in the English language in accordance with the
then-existing Rules of Arbitration of the International Chamber of Commerce (the “ICC Rules”), except where those
rules conflict with this Section 11.5, in which case this Section 11.5 controls. Unless otherwise agreed by the Parties, the tribunal
shall be comprised of one (1) arbitrator agreed to by the Parties. The arbitrator shall decide the merits of any dispute in accordance
with the law governing this Agreement, without application of any principle of conflict of laws that would result in reference to a different
law. Judgment upon the award rendered by the arbitrator may be entered or enforced in any court having jurisdiction thereof. The decision
of the arbitrator shall be final and binding on the Parties and shall be accompanied by a written opinion of the arbitrator explaining
the arbitrator’s rationale for his or her decision. The Parties shall equally share in paying all fees and costs of the arbitrator
and the ICC, but each Party shall bear its own attorney and expert fees, except that the arbitrator may award the prevailing Party its
reasonable attorneys’ fees and legal costs. The Parties agree that, notwithstanding any provision of Applicable Law, they will
not request, and the arbitrators shall have no authority to award, punitive or exemplary damages against either Party. Pending the selection
of the arbitrator or pending the arbitrator’s determination of the merits of any dispute, either Party may seek appropriate interim
or provisional relief from any court of competent jurisdiction as necessary to protect the rights or property of that Party. The intent
of the Parties is that except for seeking appropriate interim or provisional relief or the entering of an arbitration order in a court
of competent jurisdiction, disputes shall be resolved finally in arbitration as provided above, without appeal, and without recourse
to litigation in the courts. The Parties acknowledge that the 1958 United Nations Convention on the Recognition and Enforcement of Foreign
Arbitral Awards (the “New York Convention”) applies to this Agreement and to any arbitral award or order resulting
from any arbitration concluded hereunder.  The award may be made a judgment of a court of competent jurisdiction.

  

Section 11.6       Entire
Agreement. This Agreement and the attached Schedules, which are incorporated herein constitute the entire agreement between the
Parties with respect to the subject matter hereof and all prior agreements with respect hereto are superseded. Each Party confirms
that no representations, warranties, covenants or understandings of any kind, nature or description whatsoever are being made or
relied upon by any Party. No amendment or modifications hereof will be binding upon the Parties unless set forth in a writing
specified to be an explicit amendment to this Agreement duly executed by authorized representatives of each of the Parties. The
Parties recognize that, during the Term of this Agreement, a purchase order, acknowledgement form, invoice or similar routine
document (collectively “Forms”) may be used to implement or administer provisions of this Agreement. Therefore,
the Parties agree that the terms of this Agreement, as it may be amended, will prevail in the event of any conflict between this
Agreement and the printed provision of such Forms, or typed provisions of Forms that add to, vary, modify or are in conflict with
the provisions of this Agreement with respect to the Product sold during the Term of this Agreement.

 

Section 11.7       Headings.
The headings used in this Agreement are intended for convenience only and will not be considered part of the written understanding among
the Parties and will not affect the construction of this Agreement.

 

Section 11.8       Independent
Contractors. The relationship between Quoin, on the one hand, and the Licensee, on the other hand, is solely that of Licensee and
seller. It is expressly agreed that Quoin, on the one hand, and the Licensee, on the other hand, will be independent contractors and
that neither the relationship among the Parties nor this Agreement will be construed as creating a partnership, joint venture or agency.
Neither Quoin, on the one hand, nor the Licensee, on the other hand, will have the authority to make any statements, representations
or commitments of any kind, or to take any action or to incur any liability or obligation which will be binding on the other, without
the prior consent of the other Party to do so. All persons employed by a Party will be employees of such Party and not of the other Party
and all costs and obligations incurred by reason of any such employment will be for the account and expense of such Party.

 

     15

     

    

 

Section 11.9       Waiver.
The waiver by either Party of any right hereunder or the failure to perform or of a breach by the other Party will not be deemed a waiver
of any other right hereunder or of any other or subsequent breach or failure by said other Party whether of a similar nature or otherwise.

 

Section 11.10     Counterparts.
This Agreement may be executed in counterparts, each of which will be deemed an original, and all of which together will constitute one
and the same instrument.

 

Section 11.11     No
Benefit to Third Parties. The representations, warranties, covenants and agreements set forth in this Agreement are for the sole
benefit of the Parties and their successors and permitted assigns, and nothing herein, express or implied, is intended to or will confer
upon any person or entity any legal or equitable rights, benefits or remedies, other than to the extent set forth in Sections 10.1 and
10.2.

 

[signature page follows]

 

     16

     

    

 

IN WITNESS WHEREOF, the Parties hereto have caused
this Agreement to be signed by their respective representatives thereunto duly authorized, all as of the date first written above.

 

	By:	 /s/ Hartley Atkinson 	 

Name: Hartley Atkinson 

Title: Managing Director

 

	Witnessed	 
	By:	 /s/ Louise Clayton 	 

Name: Louise Clayton 

Title: Director Internal Business

 

	By:	 /s/ Michael Myers 	 

Name: Michael Myers 

Title: CEO

 

	Witnessed	 
	By:	 /s/ Denise Carter 	 

Name: Denise Carter 

Title: Chief Operating Officer

 

     

     

    

 

Schedule 1.1

 

DEFINITIONS

 

As used in this Agreement,
the following terms will have the meanings ascribed to them below:

 

(a)           “Active
Pharmaceutical Ingredient” or “API” means the active pharmaceutical ingredient for Product.

 

(b)           “Affiliate”
of a Person means any other Person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is
under common control with, such Person. The term "control" (including the terms "controlled by" and "under common
control with") 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 the ownership of voting securities, by contract or otherwise.

 

(c)           “cGMPs”
means current good manufacturing practice requirements of the FDA as promulgated under the Federal Food Drug and Cosmetics Act at 21
C.F.R. (parts 11, 210 and 211), and the European Medicines Agency as set forth in Regulation No. 1252/2014 and Commission Directive
91/356/EEC, as amended by Directive 2003/94/EC.

 

(d)           “COA”
has the meaning set forth in Section 3.3(b).

 

(e)           “COC”
has the meaning set forth in Section 3.3(b).

 

(f)            “Discretionary
Manufacturing Change” means change to the Specifications or manufacturing processes that is not a Required Manufacturing Change.

 

(g)           “Extended
Term” has the meaning set forth in Section 7.1.

 

(h)           “FDA”
means the United States Food and Drug Administration and any successor agency thereto

 

(i)            “Firm
Order” has the meaning set forth in Section 3.2.

 

(j)            “Firm
Order Period” has the meaning set forth in Section 3.1.

 

(k)           “Force
Majeure” has the meaning set forth in Section 8.1.

 

(l)            “Forecast”
has the meaning set forth in Section 3.1.

 

(m)          “Forms”
has the meaning set forth in Section 12.6.

 

(n)           “Governmental
Authority” means any court, tribunal, arbitrator, agency, legislative body, commission, official or other instrumentality of
(i) any government of any country, or (ii) a federal, state, province, county, city or other political, administrative or regulatory
subdivision thereof; in each case, in the jurisdiction where the Product is manufactured and/or in the Territory.

 

(o)           “Initial
Term” has the meaning set forth in Section 7.1.

 

(p)           “Law”
means each federal, state, provincial, municipal, local, or foreign law, statute, ordinance, order, determination, judgment, common law,
code, rule, official standard, or regulation, enacted, enforced, entered, promulgated, or issued by any Governmental Authority.

 

     

     

    

 

(q)           “Manufacturing”
or “Manufactured” means the manufacture and packaging of Product, including, without limitation, mix, fill and finish.

 

(r)            “Manufacturing
Costs” means, with respect to a Product, (x) where Quoin is the actual manufacturer of such Product, the actual cost of
manufacturing the Product (expressed on a per unit manufactured basis), which consists of (i) actual direct cost of any raw
materials, intermediates, packaging materials and labor utilized in such Manufacturing, (ii) an appropriate share of factory overhead
costs allocated to Manufacture of the Product, but excluding any costs related to under-utilized capacity, all calculated in accordance
with GAAP, and (iii) any transportation, freight expenses actually incurred by Quoin to ship the material along with any costs paid
to third parties with respect to any portion of manufacturing or testing the Product, or (y) where Product is manufactured by any
subcontractor for any of the foregoing, the aggregate amount paid to such subcontractor and any other third parties with respect to any
portion of manufacturing or testing the Product.

 

(s)           “Party”
or “Parties” means Quoin and/or the Licensee, as applicable.

 

(t)            “Person”
means any individual, corporation, partnership, limited liability company, limited liability partnership, syndicate, person, trust, association,
organization or other entity, and including and successor, by merger or otherwise, of any of the foregoing.

 

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

 

(v)           “Purchase
Order Date” has the meaning set forth in Section 3.2(a).

 

(w)          “Licensee”
has the meaning set forth in the preamble.

 

(x)           “Licensee
Taxes” has the meaning set forth in Section 6.4.

 

(y)           “Licensee
Trademark” has the meaning set forth in Section 11.1.

 

(z)            “Quality
Agreement” has the meaning set forth in Section 5.6.

 

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

 

(bb)        “Required
Manufacturing Change” means a change to the Specifications or manufacturing process that is required by a Governmental Authority
or applicable Law.

 

(cc)         “Specifications”
means the requirements and standards for the manufacture, packaging, storage and shipment of the Product set forth in the Quality Agreement,
as amended or supplemented in accordance with this Agreement.

 

(dd)        “Term”
has the meaning set forth in Section 7.1.

 

(ee)         “Territory”
means Australia and New Zealand.

 

(ff)          “Third
Party” means any Person, other than Licensee and its Affiliates, and other than Quoin and its Affiliates.

  

(gg)         “Transfer
Price” means the amount to be paid by the Licensee to Quoin pursuant to Section 6.1 and as may be adjusted from time to
time pursuant to Section 6.2.

 

     

     

    

 

Schedule
6.1 

Transfer
Price and Batch Quantities

 

TRANSFER PRICES AND BATCH QUANTITIES FOR DOSAGES AS OF EFFECTIVE DATE:

 

To be confirmed prior to regulatory submission.LICENSE AND DISTRIBUTION AGREEMENT

 

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

 

Recitals

 

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

 

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

 

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

 

Section 1.
Defined Terms

 

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

 

Section 2. license
and exclusivity

 

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

 

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

 

     

     

    

 

2.3             Non-Competition.

 

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

 

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

 

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

 

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

 

Section 3. Regulatory
Approval in the Territory

 

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

 

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

 

    2 

     

    

 

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

 

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

 

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

 

    3 

     

    

 

Section 4. Commercialization

 

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

 

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

 

4.3             Sales
Efforts.

 

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

 

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

 

    4 

     

    

 

Section 5. Financial
Provisions

 

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

 

Section 6. Intellectual
Property

 

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

 

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

 

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

 

    5 

     

    

 

Section 7. Regulatory

 

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

 

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

 

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

 

Section 8. Representations
and Warranties

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    6 

     

    

 

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

 

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

 

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

 

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

 

Section 9.  Confidentiality

 

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

 

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

 

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

 

    7 

     

    

 

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

 

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

 

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

 

Section 10.
Indemnification

 

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

 

    8 

     

    

 

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

 

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

 

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

 

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

 

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

 

    9 

     

    

 

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

 

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

 

Section 11.     Term
and Termination

 

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

 

11.2          Early
Termination.

 

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

 

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

 

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

 

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

 

    10 

     

    

 

11.3          Effects
of Expiration or Termination.

 

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

 

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

 

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

 

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

 

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

 

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

 

Section 12.     Other
Provisions

 

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

 

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

 

	
    If to Licensee:

     

    Attention:
	 	
    Genpharm Services Fz LLC

    Al manara Tower, office 2805

    Business Bay, Dubai

    United Arab Emirates

    Attention: Kamel Ghammachi

    Facsimile: +971.4.4227011

    Email: kamel.ghammachi@genpharmservices.com

    

 

    11 

     

    

 

	With a copy to:		 

 

	If to Quoin:	 	 
	 	 	 
	 	 	 
	
    Attention:

     

     

    With a copy to:
	
     
	Michael Myers, Ph.D

                                42127 Pleasant Forest Court,

                                Ashburn, VA 20148

 

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

 

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

 

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

 

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

 

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

 

    12 

     

    

 

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

 

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

 

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

 

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

 

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

 

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

  

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

 

[Signature page follows]

 

    14 

     

    

 

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

 

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

 

[Signature page to License and Distribution
Agreement]

 

    15 

     

    

 

EXHIBIT 1

 

DEFINED TERMS

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    16 

     

    

 

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

 

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

 

“Including”
means including but not limited to.

 

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

 

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

 

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

 

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

 

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

 

    17 

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Product
Trademark” means [To be provided]

 

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

 

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

 

    18 

     

    

 

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

 

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

 

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

 

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

 

    19 

     

    

 

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

 

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

 

    20

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