Document:

Exhibit 10.3

 

FORM OF

 

TREMONT MORTGAGE TRUST

 

2017 EQUITY COMPENSATION PLAN

 

Tremont Mortgage Trust hereby adopts the Tremont Mortgage Trust 2017 Equity Compensation Plan, effective as of the Effective Date.

 

I.                                        PURPOSE

 

The Plan is intended to advance the interests of the Company and its subsidiaries, if any, by providing a means of rewarding selected officers and Trustees of the Company, employees of the Company or the Manager, and others rendering valuable services to the Company, its subsidiaries or to the Manager, through grants of the Company’s Shares.

 

II.                                   DEFINITIONS

 

Terms that are capitalized in the text of the Plan have the meanings set forth below:

 

(a)                                 “Board” means the Board of Trustees of the Company.

 

(b)                                 “Company” means Tremont Mortgage Trust, a Maryland real estate investment trust.

 

(c)                                  “Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

(d)                                 “Key Person” means an employee, consultant, advisor, Trustee, officer or other person providing services to the Company, to a subsidiary of the Company, or to the Manager or an affiliate of the Manager.

 

(e)                                  “Manager” means a person or entity providing management or administrative services to the Company.

 

(f)                                   “Participant” means a person to whom Shares have been granted, or any other person who becomes owner of the Shares by reason of such person’s death or incapacity.

 

(g)                                  “Plan” means this Tremont Mortgage Trust 2017 Equity Compensation Plan, as it may be amended from time to time.

 

(h)                                 “Securities Act” means the Securities Act of 1933, as amended.

 

(i)                                     “Share Agreement” means an agreement between the Company and a Participant regarding Shares issued to the Participant pursuant to the Plan.

 

(j)                                    “Shares” means the Company’s Common Shares of Beneficial Interest, $0.01 par value per share.

 

 

(k)                                 “Trustee” means a member of the Board.

 

III.                              SHARES SUBJECT TO THE PLAN

 

Subject to the provisions of Article VII, the maximum number of Shares which may be granted under the Plan following the Effective Date shall equal 7.5% of the sum of (1) the aggregate number of Shares which are issued and outstanding as a result of the consummation of the Company’s initial public offering of Shares (not including Shares described in clause (2)), (2) the number of Shares issued pursuant to the underwriters’ exercise of their overallotment option in connection with the initial public offering and (3) the number of Shares issued in the private placement of Shares to Tremont Realty Advisors LLC concurrent with the initial public offering, with such sum being subject to adjustment as set forth herein.  If any Shares subject to an award under the Plan are forfeited, cancelled, repurchased or surrendered (including in satisfaction of tax obligations), the Shares with respect to such award shall, to the extent of any such forfeiture, cancellation, repurchase or surrender, again be available for awards under the Plan.

 

Subject to the terms of any Share Agreement, a holder of Shares granted under the Plan, whether or not vested, shall have all of the rights of a shareholder of the Company, including the right to vote the Shares and the right to receive any distributions, unless the Board shall otherwise determine.  Certificates representing Shares or statements representing Shares in book entry form may be imprinted with a legend to the effect that the Shares represented may not be sold, exchanged, transferred, pledged, hypothecated or otherwise disposed of except in accordance with the terms of the Securities Act and the applicable Share Agreement, if any.  In addition, the Company may hold the certificates representing Shares pending lapse of any applicable vesting, forfeiture, repurchase, transfer or similar restrictions.

 

IV.                               METHOD OF GRANTING SHARES

 

Grants of Shares to any Key Person shall be made by action of the Board, which shall have the sole discretion (subject to the terms of the Plan) to select persons to whom Shares are to be granted, the amount and timing of each such grant, the extent, if any, to which vesting restrictions or other conditions (which may include repurchase rights) shall apply to the award and all other terms and conditions of any award (which terms and conditions need not be the same as between recipients or awards).  If a person to whom such a grant of Shares has been made fails to execute and deliver to the Company a Share Agreement within ten (10) days after it is submitted to him or her, the grant of Shares related to such Share Agreement may be cancelled by the Company, acting by the Board, at its option and in its discretion without further notice to the Participant.  Nothing in this Section IV shall prevent the Board from delegating its authority to make grants to a committee pursuant to Section V.

 

V.                                    ADMINISTRATION OF THE PLAN

 

The Plan shall be administered by the Board or, in the discretion of the Board, a committee of the Board designated by the Board and composed of at least two (2) members of the Board.  All references in the Plan to the Board shall be understood to refer to such committee or the Board, whichever shall be administering the Plan from time to time.  All questions of interpretation and application of the Plan and of grants of Shares shall be determined by the Board in its sole discretion and the Board shall have the authority to do all things necessary to carry out the purposes of the Plan, and its determinations shall be final and binding upon all persons, including the Company and all Participants.  Without limiting the generality of the foregoing, the Board is authorized to: (i) adopt and approve from time to time the forms and,

 

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subject to the terms of the Plan, the terms and conditions of any Share Agreement; (ii) make adjustments to awards in response to changes in applicable laws, regulations or accounting principles; and (iii) prescribe, amend and rescind rules and regulations relating to the Plan.  If it determines to do so, the Board may grant Shares under this Plan that are not subject to vesting, forfeiture, repurchase and transfer restrictions.

 

For so long as Section 16 of the Exchange Act is applicable to the Company, each member of any committee designated to administer the Plan shall qualify as a “non-employee director” within the meaning of Rule 16b-3 under the Exchange Act and its composition shall comply with all other applicable legal requirements.

 

With respect to persons subject to Section 16 of the Exchange Act with respect to the Company, transactions under the Plan are intended to comply with all applicable conditions of Rule 16b-3 or its successor under the Exchange Act.

 

VI.                               ELIGIBLE PERSONS

 

The persons eligible to receive grants of Shares shall be those persons selected by the Board in its discretion from among Key Persons who contribute to the business of the Company and its subsidiaries, if any.

 

VII.                          CHANGES IN CAPITAL STRUCTURE

 

In the event of any stock dividend or other similar distribution (whether in the form of stock or other securities), stock split or combination of shares (including a reverse stock split), conversion, reorganization, consolidation, split-up, spin-off, combination, merger, exchange of stock, extraordinary cash dividend or other similar transaction or event, the Board shall make adjustments to the maximum number of Shares that may be issued under the Plan under Article III and Article IV and shall also make appropriate adjustments to the number and kind of shares of stock, securities or other property (including cash) subject to awards then outstanding under the Plan affected by such change and to the other terms and conditions of such awards. No fractional Shares shall be issued pursuant to any such adjustment, and any fractions resulting from any such adjustment shall be eliminated in each case by rounding downward to the nearest whole Share.

 

VIII.                     EFFECTIVE DATE, DURATION, AMENDMENT AND TERMINATION OF PLAN

 

The Plan shall be effective at the close of business on [..] (the “Effective Date”), subject to its approval by the Company’s shareholders.  Shares may be granted under the Plan from time to time until the close of business on the tenth (10th) anniversary of the Effective Date.  Awards outstanding at Plan termination shall remain in effect according to their terms and the provisions of the Plan.  The Board hereafter may at any time amend or terminate the terms of an award or the Plan in any respect, provided that (without limiting Article VII hereof) the Board may not, without the affected Participant’s consent, amend or terminate the terms of an award or the Plan so as to affect adversely the Participant’s rights under an outstanding award.  Any amendments to the Plan shall be conditioned upon shareholder approval only to the extent, if any, such approval is required by applicable law or listing requirements.

 

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IX.                               MISCELLANEOUS

 

A.                                    Nonassignability of Shares.  Shares subject to a Share Agreement shall not be assignable or transferable by a Participant except in accordance with the terms of the applicable Share Agreement or as may be permitted by the Board.

 

B.                                    No Guarantee of Employment.  Neither the award of Shares nor a Share Agreement shall give any person the right to continue in the employment or service of, or to continue to act as an officer or Trustee of, or to serve in any other capacity with, the Company, any subsidiary or the Manager or any affiliate of the Manager.

 

C.                                    Tax Withholding; Section 409A.  To the extent required by law, the Company shall withhold or cause to be withheld income and other taxes incurred by a Participant by reason of a grant of Shares, and, as a condition to the receipt of any grant of Shares, a Participant agrees that if the amount payable to him or her by the Company in the ordinary course is insufficient to pay such taxes, he or she shall, upon request of the Company, pay the Company an amount sufficient to satisfy its tax withholding obligations. Without limiting the foregoing, the Board may in its discretion permit any Participant’s withholding obligation to be paid in whole or in part in the form of Shares, by withholding from the Shares to be issued to such Participant or by accepting delivery of Shares already owned by him or her.  The fair market value of the Shares for this purpose shall be the closing price of the Shares on the principal securities exchange on which the Shares are listed on the date such Shares are repurchased by the Company, unless otherwise determined by the Board in its discretion. If payment of withholding taxes is made in whole or in part in Shares, the Participant shall deliver to the Company share certificates registered in his name or other evidence of legal and beneficial ownership of Shares owned by him or her, fully vested and free of all liens, claims and encumbrances of every kind, duly endorsed or accompanied by stock powers duly endorsed by the record holder of the Shares represented by such share certificates.  If the Participant is subject to Section 16(a) of the Exchange Act, his ability to pay the withholding obligation in the form of Shares shall be subject to such additional restrictions as may be necessary to avoid any transaction that might give rise to liability under Section 16(b) of the Exchange Act. It is intended that awards granted under the Plan be exempt from the application of Section 409A of the Code, and the Plan and such awards shall be construed in accordance with that intention.

 

D.                                    Conditions to Issuance.  The issuance of Shares under the Plan is subject to compliance with (1) the laws, rules and regulations of all public agencies and authorities applicable to the issuance and distribution of Shares and (2) the listing rules of any stock exchange or national market system on which the Shares are listed.

 

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E.                                     No Fractional Shares.  No fractional Shares shall be issued or delivered pursuant to the Plan.  The Board shall determine whether cash, other Awards, or other property shall be issued or paid in lieu of such fractional Shares or whether such fractional Shares or any rights thereto shall be forfeited or otherwise eliminated.

 

F.                                      Governing Law.  The Plan shall be governed by and construed and enforced in accordance with the laws of the State of Maryland applicable to contracts made and to be performed therein, without reference to the conflicts of law principles thereof.

 

5Exhibit 10.3

 

DEVELOPMENT,
MANUFACTURING AND

COMMERCIALIZATION
AGREEMENT

 

This Development, Manufacturing and Commercialization
Agreement (the “Agreement”) is entered into as of April 27, 2015 (the “Effective Date”) between
Perrigo UK Finco Limited Partnership, a United Kingdom limited partnership (“Perrigo UK”), and Sol-Gel Technologies
Ltd., a limited liability company incorporated in Israel (“Sol-Gel”). Perrigo UK and Sol-Gel are sometimes
each referred to as a “Party” and collectively as the “Parties.”

 

RECITALS

 

WHEREAS, Perrigo UK is an Affiliate
(as defined herein) of Perrigo Company, a Michigan corporation (“Perrigo Company”) and Perrigo Company and its
Affiliates (collectively referred to as “Perrigo”) are in the business of developing, manufacturing and marketing
pharmaceutical products and Perrigo wishes to develop, formulate, manufacture and sell the Product (as defined herein) in accordance
with this Agreement; and

 

WHEREAS, Sol-Gel is in the business
of investing and participating in various businesses in the health care space, and Sol-Gel wishes to work with Perrigo in connection
with the Product (as defined herein) in accordance with this Agreement.

 

NOW THEREFORE, in consideration of the
mutual covenants and promises contained in this Agreement and for other good and valuable consideration, the receipt and sufficiency
of which are acknowledged, the Parties agree as follows:

 

ARTICLE
I - DEFINITIONS

 

For purposes of this Agreement, the following
terms shall have the respective meanings set forth below:

 

		1.01	“Act” shall mean the United States Food, Drug and Cosmetic Act, as amended from time to time, and the regulations
promulgated thereunder.

 

		1.02	“Affiliate” shall mean a corporation or any other entity that directly, or indirectly through one or more
intermediaries, controls, is controlled by, or is under common control with, the designated Party, but only for so long as the
relationship exists. “Control” shall mean: (i) ownership of shares of stock having at least 50% of the voting power
entitled to vote for the election of directors in the case of a corporation; and (ii) ownership of shares of stock having at least
50% of the voting power entitled to vote for the election of directors of the general partner in the case of a limited partnership.

 

		1.03	“Agreement” shall have the meaning set forth in the Preamble.

 

		1.03	“ANDA” shall mean, with respect to the Product, an Abbreviated New Drug Application
(as defined in Title 21 of the U.S Code of Federal Regulations) submitted to the FDA requesting approval to market the Product.

 

    [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

     

    

 

		1.04	“cGMP” shall mean those current Good Manufacturing Practices required by the
FDA to be followed in connection with the manufacture of pharmaceutical products, as defined from time to time by the Act and related
regulations or any successor laws or regulations governing the manufacture, handling, storage and control of the Product in the
United States, in the form of laws, regulations or guidance documents (including but not limited to advisory opinions, compliance
policy guides and guidelines), which guidance documents are being implemented within the pharmaceutical manufacturing industry
for such Product.

 

		1.05	“Commercialization” shall mean the activities undertaken to launch, market,
promote, sell, and service the Product or have it marketed, promoted, sold or serviced in the Territory.

 

		1.06	“Committee” shall have the meaning set forth in Section 2.1.

 

		1.07	“Confidential Information” shall mean information pertaining to each Party’s
business, marketing plans, marketing activities, market projections, products and related matters, including related technical
information, provided by one Party to the other pursuant to or in furtherance of this Agreement. Confidential Information hereunder
shall also include extracts, analyses, compilations, studies or other documents or records prepared by or for a recipient or any
of such recipient’s directors, officers, managers, employees, legal advisors, and financial advisors to the extent that such
extracts, analyses, compilations, studies, documents or records contain or otherwise reflect or are generated from the disclosing
Party’s Confidential Information. The existence of this Agreement shall constitute Confidential Information.

 

		1.08	“Development Costs” shall mean, with respect to a given Product, all costs (determined
in accordance with U.S. GAAP consistently applied) incurred by a Party prior to the Launch Date in connection with the program
for such Product hereunder.

 

		1.09	“Diligent Efforts” shall mean, (i) with respect to the development activities
for the Product contemplated hereunder, a Party’s use of commercially reasonable efforts and resources consistent with the
exercise of prudent business (and/or, if applicable, scientific) judgment, as applied by such Party to other pharmaceutical products
of similar potential, market size and legal and competitive environments, and (ii) with respect to Commercialization of the Product
contemplated hereunder, use of commercially reasonable efforts and resources consistent with the exercise of prudent business judgment
as applied by such Party to other pharmaceutical products of similar potential, market size and legal and competitive environments.

 

		1.11	“Dispute” has the meaning set forth in Section 14.1.

 

		1.12	“Effective Date” shall have the meaning set forth in the Preamble.

 

		1.13	“FDA” shall mean the United States Food and Drug Administration or any successor
United States governmental agency performing similar functions with respect to pharmaceutical products, or any foreign equivalent
agency or entity having jurisdiction over the manufacture, marketing and/or sale of the Product.

 

		1.14	“Fiscal Quarter” shall mean any of the three-month periods corresponding with
Perrigo’s fiscal quarters.

 

		1.15	“Freedom to Operate Analysis” shall have the meaning set forth in Section
7.2(b).

 

    [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

     

    

 

		1.16	“Fully Allocated Costs” shall mean Perrigo’s, actual direct material costs
and labor costs as well as actual and direct fixed and variable overhead costs (including shrinkage, scrap, salvage and obsolescence)
for the production, packaging and labeling of the Product.

 

		1.17	“Gross Profits” shall mean an amount equal to the Net Sales for the applicable
Fiscal Quarter, less Fully Allocated Costs related to such Net Sales, as determined in accordance with GAAP, without any markup
for "transfer pricing" within the Perrigo group or otherwise, less [***] of such Net Sales to cover Perrigo’s sales,
marketing and distributing activities in respect to the Product.

 

		1.18	“Gross Sales” shall mean, , the total amount invoiced by Perrigo or any of its
Affiliates for Sales of the Product in the Territory to any Third Party, including, without limitation, customers, such as wholesalers,
drug chains and pharmacies,, as determined in accordance with GAAP, as well as the total value of any consideration or benefits
received by Perrigo or any of its Affiliates from a Third Party in exchange for Sales of the Product in the Territory; provided
that with respect to Sales in the Territory to any Third Party which are not arm's-length or in the ordinary course of business;
or (ii) for less than the seller is then charging in arm's-length transactions for comparable products, while taking into account
the then prevailing market conditions, the price invoiced and the consideration per Sale, shall be deemed to be no less than the
average Sale price of the Product in arm's-length ordinary course transactions by Perrigo or its Affiliate, as the case may be,
for purpose of determining "Gross Sales" with respect to such Sale.

 

		1.19	“Indemnified Party” shall have the meaning set forth in Section 11.2.

 

		1.20	“Indemnifying Party” shall have the meaning set forth in Section 11.2.

 

		1.21	“Intellectual Property” means (i) patents, patent applications and statutory
invention registrations, (ii) copyrights, including registrations and applications for registration thereof, (iii) trademarks,
including registrations, applications for registration thereof, and common law rights therein, (iv) design rights, and (v) confidential
or proprietary information, including trade secrets, know-how, materials and processes, including but not limited to analytical
methods and reference materials.

 

		1.22	“Launch Date” shall mean the date of first commercial sale of the Product in
the Territory by Perrigo or its Affiliates pursuant to the ANDA.

 

		1.23	“Litigation” shall have the meaning set forth in Section 7.1.

 

		1.24	“Net Sales” shall mean the Gross Sales (for purposes of determining whether
a given sale occurs during a computation period, Product will be considered sold as of the date of shipment by Perrigo to its customers),
less the sum of the following (to the extent actually incurred or accrued):

 

		a.	any and all credits for Product returns in the Territory during such Fiscal Quarter, including,
but not limited to, credits for returned, unsold, or short-dated Product, allowances granted or included in the invoice, cash discounts,
customer program accruals (overbills, administrative fees, Third Party rebates, sales brokerage, and volume rebates), other adjustments
and rebates, including but not limited to Medicaid and other state or governmental rebates, charge backs, floor stock adjustments,
and similar items that may be estimated in accordance with U.S. GAAP;

 

    [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

     

    

 

		b.	shipping costs, sales and excise taxes, other consumption taxes, or other governmental charges
to the extent actually included in Gross Sales;

 

		c.	any receivables which have been included in Gross Sales in the books of Perrigo and are deemed
to be uncollectible according to Perrigo’s internal accounting principles and U.S. GAAP consistently applied. Such bad debt
deduction shall be applied to Net Sales in the period in which such receivables are written off and shall be exclusive of any bad
debt or uncollectible receivables of Perrigo unrelated to the Product. In the event that any such deducted bad debt is subsequently
collected, the amount collected shall be added to the Net Sales.

 

		1.25	“Orange Book” shall
                                         mean the Approved Drug Products book published by the FDA most recently and for subsequent
                                         years during the term of this Agreement, including its printed, monthly supplements,
                                         and on the electronic version of the Electronic Orange Book found at http://www.fda.gov/cder/ob/default.htm,
                                         or as the site address is amended.

 

		1.26	“Party” or “Parties”
                                         shall have the meaning set forth in the Preamble.

 

		1.27	“Perrigo UK” shall have the meaning set forth in the Preamble.

 

		1.28	“Perrigo Intellectual Property” means any and all Intellectual Property of Perrigo
owned by or assigned to Perrigo as of the Effective Date of this Agreement.

 

		1.29	“Post-Launch Litigation” shall have the meaning set forth in Section 7.4.

 

		1.30	“Product” shall mean an A-rated generic version of Soolantra® (Ivermectin
1%) cream.

 

		1.31	“Product Specifications” shall mean the manufacturing, testing, labeling, storage
and quality control specifications for the Product as set forth in the ANDA as approved by the FDA.

 

		1.32	“Product Technology” means all Intellectual Property that specifically relates
to the Product and is conceived or reduced to practice by Perrigo, Sol-Gel and/or their Affiliates in the conduct of the program.

 

		1.33	“Regulatory Filing” shall have the meaning set forth in Section 8.2(b).

 

		1.34	“Raw Materials” shall mean all excipients, components, raw materials and any
other components required to manufacture, package and label the Product.

 

		1.35	“Regulatory Authority” shall mean any division of the FDA (as applicable) and
any other applicable governmental authority in the Territory.

 

		1.36	“Regulatory Filing” shall have the meaning given such term in Section 8.2(b)
hereof.

 

		1.37	“Sale”, shall mean, with respect to the Product,
the sale, distribution and any other arrangement in which monetary or other consideration is to be exchanged for the use of the
Product.

 

		1.38	“Sol-Gel” shall
have the meaning set forth in the Preamble.

 

    [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

     

    

 

		1.39	“Term” shall have the meaning set forth in Section 13.1.

 

		1.40	“Termination Event” shall have the meaning set forth in Section 13.2.

 

		1.41	“Territory” shall mean the United States, its possessions and territories.

 

		1.42	“Third Party” shall mean any entity or person which is not a party to this Agreement
and is also not an Affiliate of a Party to this Agreement.

 

		1.43	“Third Party Manufacturer” shall mean a Third Party which enters into a manufacture
and supply agreement with Perrigo for the manufacture and supply of the Product or Raw Materials.

 

		1.44	“U.S. GAAP” means United States generally accepted accounting principles.

 

ARTICLE
II - STEERING COMMITTEE

 

		2.1	Establishment and Composition.

 

Within 30 days of the Effective Date,
the Parties shall establish the Committee (“Committee”) to oversee Product development and clinical studies,
with Perrigo having the right to appoint up to 2 representatives on the Committee and Sol-Gel having the right to appoint up to
2 representatives of the Committee. One Committee member of each Party shall also be designated as the primary contact person for
his or her respective Party. One of the representatives selected by Sol-Gel shall chair the Committee.

 

		2.2	Responsibilities.

 

		a.	The Committee shall meet and/or confer periodically as needed during the period the program is
being implemented.

 

		b.	The Committee shall perform such other functions relating to the program as the Parties may agree.

 

		c.	All major program decisions or other decisions in connection with the implementation of this Agreement,
such as selecting any material Third Party contractors, including, without limitation, any contract research organization (CRO)
and the material terms of engagement of such contractors shall be decided and approved jointly by the Parties.

 

ARTICLE
III - DEVELOPMENT PROGRAM

 

		3.1	The Program.

 

The Parties shall work towards the
overall objective of Perrigo obtaining all FDA approvals necessary for the Commercialization of the Product. Within the program,
Perrigo shall use its Diligent Efforts to conduct all regulatory, scientific, clinical and technical activities necessary to develop
the Product, and prepare and file with the FDA the ANDA. Perrigo shall use its Diligent Efforts to pursue FDA approval of the ANDA
and gain FDA clearance to market the Product. A program budget shall be approved by the Parties based on their reasonable estimates
of the program costs, including the costs of all Third Party contractors which inter aila details all out-of-pocket clinical
study costs (including material) and the program budget shall be attached hereto as Schedule 3.1.

 

    [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

     

    

 

		a.	Perrigo shall, either directly or through its Third Party contractors, be responsible for the development
activities commencing on the Effective Date through acceptance of the ANDA by the FDA, including formulation, analytical work,
method validation, scale up and validation.

 

		b.	Perrigo shall prepare all appropriate protocols and conduct the required in vitro and in vivo bio-equivalence
studies to be undertaken pursuant to the program, provided however that to the extent that Third Party contractors are engaged,
including any CRO, Sol-Gel shall be consulted and its consent required pursuant to Section 2.2(c).

 

		c.	Perrigo shall use its Diligent Efforts to draft, submit and maintain the ANDA and obtain FDA approval
for the Commercialization of the Product.

 

		d.	Perrigo shall control all Litigation.

 

		e.	Perrigo shall grant Sol-Gel reasonable access to, or provide Sol-Gel with copies of, without additional
charge, cost or expense, any and all documentation, reports, Regulatory Filings and other communications with any Regulatory Authority,
or any Third Party contractor, as reasonably requested by Sol-Gel.

 

		f.	Perrigo shall provide to Sol-Gel periodic updates at Sol-Gel’s request regarding the status
of the program.

 

		3.2	Sharing of Costs.

 

Except as set forth
below, each Party shall bear its own costs in relation to the performance of this Agreement and Sol-Gel and Perrigo shall each
be responsible for [***]% of its internal Development Costs, including all costs related to ANDA submission and maintenance.

 

		a.	Sol-Gel and Perrigo shall [***] of in-vitro and non-clinical out-of-pocket development costs related
to the Product.

 

		b.	Sol-Gel shall be responsible for [***]%, and Perrigo shall be responsible for [***]%, of all out-of-pocket
clinical study costs (including materials) related to the Product as detailed in the program budget.

 

		c.	Sol-Gel and Perrigo [***] of all expenses related to Litigation (subject to Section 7.4 below).

 

		d.	In the event that the out-of-pocket clinical study costs (including materials) related to the Product
exceed the costs detailed in the program budget by more than 10%, then Perrigo and Sol-Gel shall [***] of all such excess costs.

 

    [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

     

    

 

ARTICLE
IV- DISCLOSURE OF INFORMATION; PERFORMANCE OF DUTIES

 

		4.1	Disclosure. Upon execution of this Agreement and during the Term, each Party shall disclose
to the other Party (and such Party’s Affiliates and designated representatives) such Confidential Information as is reasonably
requested regarding the program and Commercialization.

 

		4.2	Confidentiality. Except as specifically authorized by this Agreement, each Party shall,
for the Term and for 7 years after the expiration or termination of this Agreement, keep confidential, not disclose to others and
use only for the purposes provided for or permitted under this Agreement, the other Party’s Confidential Information. Notwithstanding
the foregoing, such Confidential Information may be (i) disclosed to Regulatory Authorities or other governmental agencies and
others where such Confidential Information is required to be included in Regulatory Filings permitted under the terms of this Agreement
or in patent applications filed within the United States Patent and Trademark Office or corresponding international patent offices;
(ii) provided to Third Parties under appropriate terms and conditions including confidentiality provisions substantially equivalent
to those in this Agreement, in connection with the receiving Party’s clinical or bioequivalence testing, consulting, regulatory
activities, manufacturing and marketing activities with respect to the Product undertaken pursuant to or as permitted by this Agreement;
(iii) published, if and to the extent such publication has been approved by both Parties; or (iv) disclosed to the extent required
by applicable laws or regulations or as ordered by a court or other regulatory body having competent jurisdiction. In each of the
foregoing cases (i) through (iv), the receiving Party shall disclose only the minimum of information required to be published or
disclosed. In the case of a required disclosure under clause (iv) above, the Party required to make the disclosure shall promptly
notify the original disclosing Party and shall provide reasonable assistance, if requested by the original disclosing Party and
at such disclosing Party’s expense, to assist the original disclosing Party in its attempts to prevent or limit the disclosure
or obtain confidential treatment of the Confidential Information.

 

		4.3	Exclusions. The obligations contained herein governing the use and disclosure of Confidential
Information shall not apply to any information which is (i) already known to the receiving Party prior to the date of disclosure
as evidenced by its written records made prior to such date; (ii) publicly known prior to or after disclosure other than through
unauthorized acts or omissions of the recipient; (iii) disclosed in good faith to the recipient by a Third Party lawfully and contractually
entitled to make such disclosure; or (iv) developed by or for the receiving Party without the use of any Confidential Information
of the disclosing Party, as evidenced by the receiving Party’s written records.

 

		4.4	Ownership. Ownership of Confidential Information shall remain with the disclosing Party.
Nothing herein is intended to transfer the ownership of any Confidential Information. All Confidential Information furnished to
the receiving Party hereunder (and all copies made by the receiving Party) will be returned to the disclosing Party or destroyed
immediately upon request. As an exception to the requirement to return or destroy materials incorporating Confidential Information,
the receiving Party may retain one copy of the Confidential Information in its legal files solely for the purposes of monitoring
its ongoing obligations under this Agreement.

 

		4.5	Compliance with Laws. Each Party shall comply with all laws and regulations applicable to
it in carrying out its responsibilities and duties as described in this Agreement. Each Party represents that neither it nor any
of its employees has been debarred or is subject to debarment proceedings by the FDA. If any such proceedings are commenced against
a Party hereto (or any of its employees) during the Term, such Party shall as promptly as practicable, but in no event later than
5 business days following the commencement of such proceedings, notify the other Party in writing and shall keep the other Party
informed, on a regular basis, of the status of such proceedings.

 

    [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

     

    

 

ARTICLE
V - LICENSE AND OWNERSHIP

 

		5.1	[***] Intellectual Property. Except as otherwise provided in this Agreement, [***] shall
be and remains the property of [***]. [***] shall acquire no right, title or interest in the [***].

 

		5.2	Product Technology. [***] shall solely own [***]. [***] hereby assigns to [***]. [***] shall
perform, during and after the Term, [***] reasonably deems necessary or desirable to permit and assist [***], at [***] expense,
in obtaining, perfecting and enforcing the full benefits, enjoyment, rights and title throughout the world in the [***]. [***]
shall have the [***].

 

ARTICLE
VI - MANUFACTURE OF THE PRODUCT

 

		6.1	Manufacturing Responsibility.

 

		a.	Prior to the Launch Date, Perrigo shall use Diligent Efforts to manufacture the Product for the
pivotal in vitro and in vivo bioequivalence studies and the Product process validation batches. Manufacturing shall be designed
to enable Perrigo to lawfully market the Product in the Territory in accordance with the approved ANDA.

 

		b.	After the Launch Date and during the Term, Perrigo shall manufacture, test, release, sell, market
and distribute the Product in the Territory in accordance with this Agreement.

 

		6.2	Obligations of Perrigo. Without limiting the foregoing, Perrigo shall be responsible for:

 

		a.	filing and qualifying with the FDA the manufacturing site of Perrigo;

 

		b.	filing and maintaining distribution shipping records for the Product;

 

		c.	procuring the active pharmaceutical ingredient for the Product that, to the best of its knowledge,
does not violate, infringe, or otherwise conflict or interfere with the Intellectual Property of any Third Party in the Territory;

 

		d.	conducting all required testing including, without limitation, stability testing for each batch
of Product manufactured for use in bioequivalence studies contemplated under this Agreement; and conducting, as required by the
ANDA, cGMPs, and FDA regulations, as amended, any and all such testing for all validation batches and all commercial batches of
Product; and

 

		e.	manufacturing, packaging and labeling the Product according to applicable FDA regulations, and
all other applicable laws and regulations. Perrigo shall have the exclusive right to define (i) the shape, color, size, embossing
and imprinting of each unit or Product, and (ii) packaging and labeling, including package inserts, and all related artwork for
containers and any advertising.

 

    [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

     

    

 

		6.3	Quality Control. Perrigo shall manufacture, test, label, package, and ship all Product,
or cause the Product to be manufactured, tested, labeled, packaged, and shipped in accordance with the ANDA, Product Specifications,
cGMPs, this Agreement, and applicable law.

 

		6.4	Notice of Inspections. Perrigo shall notify Sol-Gel promptly of any inspection of its Affiliates’
facilities (or of any facilities of its licensees, distributors, contractors or agents), related to the Product by any Regulatory
Authority, including the FDA, and shall upon Sol-Gel’s request, send Sol-Gel copies of any written reports or correspondence
to or from any Regulatory Authority relating to such inspection.

 

		6.5	Recalls. Subject to Section 11.1 below, in the event that the FDA or any other Regulatory
Authority issues or requests a recall or takes similar action in connection with the Product, or in the event Perrigo determines
an event, incident or circumstance has occurred that may result in the need for a recall or market withdrawal, Perrigo shall promptly
advise Sol-Gel thereof. Any such market recall or withdrawal shall be controlled by Perrigo. Perrigo shall bear the expenses of
any recall including, without limitation and without duplication, the expenses of notification and destruction or return of the
recalled Product, the sum paid for the manufacture of the recalled Product, and costs relating to the testing, packaging, shipping
and retail trade related costs of the recalled Product. In the event that the recall is based upon acts whose fault cannot be attributed
to Perrigo (for example, if the FDA withdraws the entire product (brand and generic) from the market) or any of Perrigo’s
facilities (or of any facilities of its licensees, distributors, contractors or agents), including, if applicable, its Third Party
Manufacturer, the costs shall be allocated based upon the profit split set forth in Section 9.1.

 

ARTICLE
VII - IP LITIGATION

 

		7.1	Cooperation.

 

Subject to assuring that any and
all defense and/or legal privileges remain intact, each Party shall provide reasonable cooperation to the other Party in its efforts
to defend against any patent litigation in the United States alleging infringement by the Product. In the event that such litigation
is threatened or actually filed prior to the Launch Date, such lawsuit or threat of such lawsuit shall be defined as “Litigation.”
To this end, the Parties have entered into a Common Legal Interest/Joint Defense Agreement dated as of March 6, 2015.

 

		7.2	Intellectual Property Review.

 

		a.	[***] shall control any Intellectual Property issues that may arise regarding the Product, including
without limitation, the selection and retention of outside legal counsel. Nonetheless, the Parties shall reasonably cooperate to
ensure that the development, manufacture, marketing and sale of the Product does not infringe the Intellectual Property rights
of any Third Party, each using commercially reasonable efforts to recommend and implement measures to avoid infringement and/or
develop evidence to invalidate or render unenforceable Intellectual Property owned by a Third Party.

 

		b.	[***] shall be responsible for obtaining from outside legal counsel opinions as to whether the
Product as developed and manufactured by Perrigo, including Perrigo’s formulation, process and/or active pharmaceutical ingredient,
would infringe any Third Party Intellectual Property (such determination of outside counsel the “Freedom to Operate Analysis”).
[***] shall be responsible for (i) analyzing such Freedom to Operate Analysis as it pertains to the development, manufacture, marketing
and/or sale of the Product in the Territory; and for (ii) analyzing the infringement, validity, and/or enforceability of Intellectual
Property identified in the Freedom to Operate Analysis.

 

    [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

     

    

 

		7.3	Patent Certification. The Parties agree that as of the Effective Date there are several
patents listed in the Orange Book for the Product for which a Paragraph IV certification is expected to be filed and may have to
be litigated.

 

		7.4	Litigation and Settlement. In the event the Product is the subject of Litigation or any
actual or threatened litigation based on alleged infringement of a patent, whether listed in the Orange Book subsequent to the
Launch Date or of a patent asserted by any Third Party after the Launch Date (collectively “Post-Launch Litigation(s)”)
in the United States, [***] shall direct and control any such Litigation and/or Post-Launch Litigation and shall make Diligent
Efforts to conduct any such Litigation and/or Post-Launch Litigation to a successful conclusion, including settlement. [***] shall
notify [***] and seek [***] input prior to ceasing to defend, settling or otherwise disposing of Litigation and/or Post-Launch
Litigation or a claim in the Litigation and/or Post-Launch Litigation, but the final decision in that regard shall be made by [***].
[***].

 

ARTICLE
VIII - COMMERCIALIZATION AND SUPPLY

 

		8.1	Commercialization.

 

		a.	As soon as reasonably practical after final approval by the FDA of the ANDA, Perrigo shall use
Diligent Efforts to Commercialize the Product in the Territory and to maximize the Gross Profits. Perrigo shall not engage any
Third Party as a distributor or reseller of the Products in the Territory or permit a Third Party to engage directly or indirectly
in the Sale of the Product (by way of license or otherwise), but shall itself engage in all the required sales, marketing and distributing
activities in respect to the Product. [***].

 

		8.2	Regulatory Responsibilities.

 

		a.	Following the approval by the FDA of the ANDA, Perrigo shall be solely responsible for maintaining
the ANDA including any necessary periodic reporting requirements. Furthermore, Perrigo shall be responsible for all adverse-event
reporting as required by the Act and related regulations, or any successor laws or regulations and any and all other applicable
laws in the Territory. Perrigo shall use Diligent Efforts to perform, or cause to be performed, these activities in accordance
with this Agreement and in compliance in all material respects with the requirements of any applicable law, and the Product Specifications.

 

		b.	Perrigo shall own all right, title and interest in and to any and all regulatory filings, applications,
permits and authorizations, including, but not limited to the ANDA, relating to the approval, manufacture, marketing, sale or licensing
of the Product or ingredients for inclusion therein as may be required or useful in the Territory (a “Regulatory Filing”).
Perrigo shall also be responsible for filing, obtaining, maintaining, and shall retain the exclusive control of and responsibility
for, each such Regulatory Filing including all amendments, supplements and all other communications with the applicable Regulatory
Authority.

 

    [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

     

    

 

ARTICLE
IX - PAYMENTS

 

		9.1	Payments by Perrigo to Sol-Gel. Within 45 days after the end of each Fiscal Quarter in which
the Product is sold in the Territory, Perrigo shall pay Sol-Gel 50% of Perrigo’s Gross Profits accruing during the immediately-preceding
Fiscal Quarter. Payment shall be accompanied by a report detailing Gross Sales, Net Sales (along with sufficient details on adjustments),
and Gross Profits (along with sufficient details on the Fully Allocated Costs).

 

		9.2	Manner of Payment. All payments due hereunder shall be made in United States dollars and,
unless otherwise agreed in writing, shall be made by wire transfer to such bank as the Parties may designate in writing. Both Parties
shall pay all taxes and levies that by applicable law (including existing treaties for bilateral taxation) they are required to
pay on all payments accruing under this Agreement and shall withhold from sums otherwise payable to the other Party all such taxes
and levies and shall pay the amount of such withholding taxes to the proper governmental authority in a timely manner. Each Party
shall notify the other Party of its intention to withhold in advance of payment being made and shall promptly transmit to the other
Party an official tax certificate or other evidence of such tax obligations together with proof of payment from the relevant governmental
authority of all amounts deducted and withheld sufficient to enable such Party to claim such payment of taxes. To the extent that
either Party withholds any taxes or levies on payments to the other Party pursuant to applicable law, both Parties agree that such
expense shall be an expense of, and borne solely by, the payee and the withholding Party shall not be obligated to gross-up any
such amounts; provided that the withholding Party shall provide the other Party with reasonable assistance to enable such Party
to recover such withholding taxes as permitted by applicable law.

 

		9.3	Books of Account; Audit. Each Party shall maintain true and complete books of account containing
an accurate record of all data necessary for the proper computation of amounts costs incurred by it during the program and payments
due from it under this Agreement and shall cause its Affiliates, to maintain such records. Each Party shall have the right, through
an independent certified public accounting firm mutually and reasonably agreed to by the Parties, to audit the books and records
of the other Party as such books and records relate to this Agreement, at any time within 3 years after the date of the payment
or charges to which they relate (but not more than once in each calendar year or once with regard to any period unless a material
discrepancy or error is found, in which case the number of audits shall be in the reasonable discretion of the auditing Party)
for the purpose of verifying the amount of such payments or charges and the accuracy of such books and records. Audits shall be
made during normal business hours (and without undue disruption to the business or personnel of the Party being audited) at the
place of business of the Party being audited. The Parties agree that information furnished as a result of any such audit shall
be limited to a written statement by such certified public accounting firm to the effect that it has reviewed the books and records
of the Party being audited (or of any Affiliate thereof if applicable) and either (i) the amounts paid or charged under this Agreement
are in conformity with such books and records and the applicable provisions of this Agreement, or (ii) setting forth any required
adjustments. The fees and expenses of the accounting firm performing such verification shall be borne by auditing Party. If any
such examination shows any underpayment or overpayment, or overcharge or undercharge, a correcting payment or refund shall be made
within 30 clays after receipt of the written statement described above provided the Party being audited agrees with the findings
of the certified public accounting firm performing the audit. If the Party being audited disagrees with such findings, the
Parties will attempt, in good faith, to resolve the difference. If after 30 days the Parties fail to settle the difference, the
dispute resolution provisions of Article XIV will be followed. Notwithstanding the foregoing, if any such examination indicates
that the Party being audited has either overpaid or been overpaid by more than 5% of the total amount owing for such audited period,
then the Party being audited shall promptly pay the auditing Party the reasonable out-of-pocket costs and expenses actually incurred
in conducting such audit.

 

    [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

     

    

 

ARTICLE
X - REPRESENTATIONS AND WARRANTIES

 

		10.1	Warranties.

 

		a.	Each Party represents and warrants that neither the execution and delivery of this Agreement by
such Party nor its performance hereunder conflicts with or results in any violation or breach of, or constitutes (with or without
due notice or lapse of time or both) a default under any of the terms or conditions of any note, bond, mortgage, indenture, license,
agreement or other instrument or obligation to which it is a party or by which it or any of its properties or assets may be bound,
or violates any statute, law, rule, regulation, writ, injunction, judgment, order or decree of any court, administrative agency
or governmental authority binding on it or any of its properties or assets, excluding any such breaches or defaults that, individually
or in the aggregate, would not have a material adverse effect on its business or financial condition or its ability to perform
its obligations hereunder.

 

		b.	Perrigo represents and warrants that all Products manufactured and sold under this Agreement in
the Territory shall be manufactured, packaged, labeled, stored and sold according to the ANDA, cGMPs, and all applicable laws and
regulations.

 

ARTICLE
XI - INDEMNIFICATION/INSURANCE

 

		11.1	Mutual Indemnity. Each Party shall indemnify, defend and hold harmless the other Party and
its Affiliates, employees or directors from any and all costs, expenses, damages, judgments and liabilities (including reasonable
attorneys’ fees and the cost of any recalls) incurred by or rendered against the other Party or its Affiliates, employees
or directors in any Third Party claim made or suit brought to the extent resulting from any of the following: (i) a breach by such
Party or any of the subcontractors retained by such Party of its obligations, representations and warranties pursuant to this Agreement
(except to the extent that such claim or suit is based on the other Party’s negligence or breach of its representations and
warranties, or its other obligations under this Agreement); (ii) the breach by such Party of its obligations under this Agreement;
(iii) the negligence or willful misconduct of such Party or its subcontractors in connection with the Product; or (iv) solely with
respect to Perrigo, Perrigo's or its Affiliate's manufacture outside of the Product Specifications, use or sale of the Product.

 

    [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

     

    

 

		11.2	Indemnification Process. Upon the occurrence of an event giving rise to indemnification
hereunder, the Party entitled to indemnification hereunder (the “Indemnified Party”) shall (i) give prompt notice
to the Party providing indemnification (the “Indemnifying Party”), (ii) permit the Indemnifying Party’s
attorneys to handle and control the defense of such claims, at the Indemnifying Party’s expense, and (iii) shall cooperate
in the defense thereof. There shall be no settlements, whether agreed to in court or out of court, without the prior written mutual
consent of the Parties, except that the Indemnifying Party may settle a claim without the consent of the Indemnified Party if (i)
the settlement is purely monetary, (ii) the Indemnifying Party hereunder admits in writing its liability to the Indemnified Party
hereunder, and (iii) concurrently with such settlement, the Indemnifying Party pays the full amount owed hereunder. Notwithstanding
the foregoing, in the event the Indemnifying Party does not assume the defense of any such claim or litigation in accordance with
the terms hereof within the earlier of (i) 90 days following written notice from the Indemnified Party or (ii) the 15th day preceding
the due date for response to any complaint filed, then the Indemnified Party may defend against such claim or litigation in such
manner as it may deem appropriate, including, but not limited to, settling such claim or litigation, after giving notice of the
same to the Indemnifying Party, on such terms as the Indemnified Party may deem appropriate. In any action by the Indemnified Party
seeking indemnification from the Indemnifying Party in accordance with the provisions hereof, the Indemnifying Party shall not
be entitled to object to the manner in which the Indemnified Party defended such claim or the amount of or nature of any such settlement.

 

		11.3	Mitigation. In the event of any occurrence which may result in either Party becoming required
to indemnify the other Party under this Article 11, the Indemnified Party shall, to the extent the Indemnified Party is
aware of any mitigating measures that are available to it and commercially reasonable, attempt in good faith to mitigate the damages
that may be payable by the Indemnifying Party hereunder.

 

		11.4	Apportionment of Damages and Post-Launch Litigation Costs. In the event of a Third Party
claim relating to [***] Perrigo does not have an obligation of indemnification in accordance with Section 11.1 even if Sol-Gel
had been added as a defendant to such Third Party claim, [***] to the extent such Third Party claim is not covered by the Parties’
insurance.

 

		11.5	Insurance.

 

		a.	General Requirements. Perrigo shall obtain and maintain at its expense during the Term and
for a period of at least five (5) years after the termination or expiration of this Agreement, all insurance coverage required
by law as well as appropriate insurance coverage to protect against any and all claims or liabilities that may arise directly or
indirectly as a result of its performance of its obligations under this Agreement. Insurance shall be placed with a carrier with
an A.M. Best rating of at least A- for financial strength and a size rating of at least VIII. Coverage shall be occurrence based,
unless occurrence coverage is unavailable, in which case “claims made” coverage is acceptable, provided retroactive
coverage is provided prior to the inception of the business relationship between Perrigo and Sol-Gel. None of the requirements
contained herein as to coverage types or limits of insurance required to be maintained by the Parties shall be construed to limit
in any manner the liability of either Party to the other Party hereunder.

 

		b.	Subcontractors. In the event that Perrigo subcontracts any of its obligations, then it shall
require the same insurance coverage and limits from its subcontractors, and require said subcontractors to so certify insurance
coverage to such Party prior to the commencement of any work.

 

		c.	Proof of Insurance. Perrigo shall deliver to Sol-Gel, upon request, Certificates of Insurance
evidencing the following: (i) the effective and expiration dates of the policies; (ii) for each of the policies, the limits of
liability per occurrence and in the aggregate; (iii) that Sol-Gel has been named as an additional insured under each of the policies;
and (iv) that Sol-Gel shall be given thirty (30) calendar days advance written notice prior to any cancellation, non-renewal or
material change of any of the policies. Perrigo shall provide to Sol-Gel current Certificates of Insurance evidencing renewal of
insurance throughout the Term promptly after any change or renewal of the policies.

 

    [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

     

    

 

		d.	Specific Minimum Coverages. At a minimum, each Party shall keep the following policies in
place during the Term:

 

	Required Coverages and Minimum Policy Limit
	 	 	 
	Required Coverage	 	Policy Limit
	 	 	 
	Worker’s Compensation	 	Statutory
	Employer’s Liability	 	
        $1,000,000 (U.S.)

         

	Bodily Injury & Property Damage	 	
        $2,000,000

        (U.S. Combined Single Limit,

        per occurrence)

         

	Automobile Liability	 	
        $1,000,000

        (U.S. Combined Single Limit,

        per occurrence)

         

	Products Liability	 	
        $10,000,000

        (U.S. Combined Single Limit,

        per occurrence)

         

	Umbrella/Excess Liability	 	
        $5,000,000

        (U.S. Combined Single Limit,

        per occurrence)

 

ARTICLE
XII- LIMITATION OF LIABILITY

 

		12.1	EXCEPT FOR THE PARTIES’ INDEMNIFICATION OBLIGATIONS UNDER ARTICLE XI, IN NO EVENT
SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR SPECIAL, INCIDENTAL, CONSEQUENTIAL OR INDIRECT DAMAGES, WHETHER THE CLAIM IS
BASED UPON CONTRACT, WARRANTY, NEGLIGENCE OR STRICT LIABILITY THEORIES OR OTHERWISE RELATES TO THE FAILURE TO PERFORM ANY OBLIGATIONS
SET FORTH HEREIN.

 

ARTICLE
XIII - TERM AND TERMINATION: MODIFICATION OF RIGHTS

 

		13.1	Term. The term of this Agreement shall commence on the Effective Date and shall continue
until the lapse of a twenty (20) year period from the Launch Date or until the occurrence of a Termination Event pursuant to Section
13.2 (the “Term”).

 

		13.2	Termination Events. This Agreement shall only be terminated prior to its scheduled expiration
upon the occurrence of any of the events set forth in this Section 13.2 (each a “Termination Event”):

 

    [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

     

    

 

		a.	The Parties may terminate this Agreement at any time by written mutual agreement.

 

		b.	Either Party may terminate this Agreement upon a material breach by the other Party; provided that
the terminating Party shall provide the breaching Party with a written notice reasonably detailing such breach and such breach
or default is not cured within 30 days after receipt of such notice.

 

		c.	Sol-Gel may terminate this Agreement upon 10 days written notice to Perrigo, in the event that
prior to the Launch Date, Sol-Gel in its good faith judgment determines that a significant adverse change has occurred and that
Perrigo’s potential market for the Product envisaged at the time of entering into this Agreement has been reduced by [***],
including without limitation, a reduction in the market due to regulatory changes, or the entering into the market of two generic
competitors, including an authorized generic. It is clarified that in the event of such termination, Perrigo may continue the program
and may Commercialize the Product without payment to Sol-Gel and Perrigo shall assume all development costs related to the program
that are due and payable following the termination of this Agreement. If however, Perrigo determines to terminate the program,
then any expenses, or future cancellation fees, which were approved by the Committee prior to the termination date and which cannot
be cancelled or mitigated, shall be reimbursed by Sol-Gel in accordance with Section 3.2.

 

		d.	Either Party may terminate this Agreement upon 10 days written notice to the other Party, in the
event that Perrigo’s external counsel determines that Perrigo’s Product formulation or manufacturing process [***].

 

		e.	Without prior written notice, a Party may terminate in the event that: (i) the other Party is declared
insolvent or bankrupt by a court of competent jurisdiction; (ii) a voluntary petition of bankruptcy is filed in any court of competent
jurisdiction by such other Party; or (iii) this Agreement is assigned by such other Party for the benefit of creditors. It is clarified
however that once Sol-Gel has completed its investment in the Product development, Perrigo shall not be entitled to terminate the
Agreement pursuant to this section.

 

		f.	Either Party may terminate this Agreement upon 30 days written notice to the other Party, in the
event that Gross Profits relating to sales of the Product do not exceed [***].

 

		13.3	Rights on Termination. Termination of this Agreement for any reason shall be without prejudice
to (i) either Party’s rights under this Agreement with respect to claims arising out of events occurring prior to such termination;
(ii) either Party’s right to receive all payments owed or accrued to it under this Agreement for periods prior to the date
of termination; and (iii) any other remedies which either Party may otherwise have. In the event of termination based on Sections
13.2 (b), 13.2(d) or 13.2 (e) (with Perrigo being the breaching in the case of Section 13.2(b), the terminating Party
(in the case of Section 13.2(d), or the insolvent Party (in the case of Section 13.2 (e)), Perrigo shall grant to
Sol-Gel an exclusive license to all rights, title and interest in and to the Perrigo Intellectual Property and to Product Technology
for the purpose of allowing Sol-Gel to commercialize the applicable Product in the Territory. If Sol-Gel does commercialize the
Product, Sol-Gel will pay Perrigo [***]. In case of termination based on Section 13.2(b) with Perrigo being the breaching
Party or if Perrigo terminates under Section 13.2(d), Perrigo will (if so elected by Sol-Gel) manufacture the Product for
Sol-Gel until the expiration of the conclusion of the last day of the 20th full calendar year following the Launch Date of the
Product and charge the Fully Allocated Costs plus a [***]. In the event of termination based on Section 13.2(e), with Perrigo
being the insolvent Party, the license to the Perrigo Intellectual Property and the Product Technology granted herein will be deemed
a license of rights to Intellectual Property for purposes of Section 365(n) of the U.S. Bankruptcy Code and Sol-Gel will retain
and may fully exercise all of its rights and elections under and in accordance with the U.S. Bankruptcy Code.

 

    [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

     

    

 

ARTICLE
XIV - DISPUTE RESOLUTION

 

		14.1	Dispute Resolution.

 

		a.	Except as otherwise provided in subsection (b) of this Section 14.1, all disputes or claims
which may arise under, out of or in connection with this Agreement (each, a “Dispute”) will be referred in writing
by the Party raising the Dispute to the Committee for attempted resolution by good faith negotiations. If the Dispute remains unresolved
for more than 10 business days after the notice of such Dispute, the Parties will submit the Dispute to the next step in the dispute
resolution process set forth in subsection (b).

 

		b.	If any Dispute is not resolved in accordance with subsection (a), the Dispute will be referred
in writing to Sol-Gel’s executive responsible for the business unit for which this Agreement pertains and to Perrigo’s
executive responsible for the business unit for which this Agreement pertains for attempted resolution by good faith negotiations.
If they are unable to resolve any Dispute within 10 business days after the referral of such Dispute to them, the Parties shall
be allowed to utilize any dispute resolution process.

 

ARTICLE
XV - MISCELLANEOUS

 

		15.1	Waiver and Amendment. Failure of any Party to require, in one or more instances, performance
by the other Party in strict accordance with the terms and conditions of this Agreement shall not be deemed a waiver or relinquishment
of the future performance of any such terms or conditions or of any other terms and conditions of this Agreement. A waiver by either
Party of any term or condition of this Agreement shall not be deemed or construed to be a waiver of any other term or condition
of this Agreement. All rights, remedies, undertakings, obligations and agreements contained in this Agreement shall be cumulative
and none of them shall be a limitation of any other remedy, right, undertaking, obligation or agreement of either Party. This Agreement
may not be amended except in writing, signed by both Parties.

 

		15.2	Relationship of the Parties. For all purposes of this Agreement, Perrigo and Sol-Gel shall
be deemed to be independent entities and anything in this Agreement to the contrary notwithstanding, nothing herein shall be deemed
to constitute Perrigo and Sol-Gel as partners, joint ventures, co-owners, an association or any entity separate and apart from
each Party itself, nor shall this Agreement constitute any Party hereto (or any of such Party’s personnel) an employee or
agent, legal or otherwise, of the other Party for any purposes whatsoever. Neither Party hereto is authorized to make any statements
or representations on behalf of the other Party or in any way obligate the other Party, except as expressly authorized in writing
by said other Party. Anything in this Agreement to the contrary notwithstanding, no Party hereto shall assume nor shall be liable
for any liabilities or obligations of the other Party, whether past, present or future.

 

    [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

     

    

 

		15.3	Headings. The headings set forth at the beginning of the various Articles of this Agreement
are for reference and convenience and shall not affect the meanings of the provisions of this Agreement.

 

		15.4	Notices. All notices hereunder shall be delivered by facsimile (confirmed by overnight delivery),
or by overnight delivery with a reputable overnight delivery service, to the following address of the respective Parties:

 

	If to Sol-Gel:	
        Sol-Gel Technologies Ltd.

         

        Weizmann Science Park

        7 Golda Meir St.

        Ness Ziona 74036, Israel

        Attn: Chief Executive Officer

        Phone: +972-8-9313433

        Fax: +972-8-93134346

	 	 
	If to Perrigo:	
        Perrigo UK Finco Limited Partnership

         

        Wrafton, Braunton

        Devon EX33 2DL

        England

        Attn: Perrigo International Holdings II, Inc.

        General Partner

         

        and

         

        c/o Perrigo Company

        515 Eastern Avenue

        Allegan, Michigan 49010

        Attn: Chief Executive Officer

        Facsimile: 269-673-1386

	 	 
	With a copy to:	
        Perrigo Company

        515 Eastern Avenue

        Allegan, Michigan 49010

        Attn: General Counsel

        Facsimile: 269-673-1386

 

All notices shall be deemed to be effective
on the day of receipt. Either Party may change the address at which notice is to be received by written notice pursuant to this
Section 15.4.

 

		15.5	Severability. If any provision of this Agreement is held by a court of competent jurisdiction
to be invalid or unenforceable, it shall be stricken and the remaining provisions shall remain in full force and effect. However,
if a provision is stricken so as to significantly alter the economic arrangements of this Agreement, the Parties agree to negotiate
in good faith modifications to this Agreement to effectuate the initial intent of this Agreement.

 

    [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

     

    

 

		15.6	Assignment. This Agreement shall not be assigned by either Party without the prior written
consent of the other Party, which consent shall not be unreasonably withheld, except that either Party may assign this Agreement,
in whole or in part, to any successor (including the surviving company in any consolidation, reorganization or merger) or successor
in interest to such Party’s Product-related business or to an Affiliate of such Party. This Agreement will be binding upon
any permitted assignee of either Party. No assignment shall have the effect of relieving any Party to this Agreement of any of
its obligations hereunder.

 

		15.7	Event of Force Majeure. Neither Party shall be responsible or liable to the other hereunder
for the failure or delay in the performance of this Agreement due to any civil unrest, war, fire, earthquake, act of terrorism,
hurricane, accident or other casualty, or any labor disturbance or act of God or the public enemy, or any other contingency beyond
the Party’s reasonable control. In the event of the applicability of this Section 15.7, the Party failing or delaying
performance shall use its Diligent Efforts to eliminate, cure and overcome any of such causes and resume the performance of its
obligations. Upon the occurrence of an event of force majeure, the Party failing or delaying performance shall promptly notify
the other Party, in writing, setting forth the nature of the occurrence, its expected duration and how such Party’s performance
is affected. The failing or delaying Party shall resume performance of its obligations hereunder as soon as practicable after the
force majeure event ceases.

 

		15.8	Limitation of Disclosure. Except as otherwise may be required by applicable laws, regulations,
rules or orders, including without limitation the rules and regulations promulgated by the United States Securities and Exchange
Commission, and except as may be authorized in Section 15.9, no information concerning this Agreement and the transactions
contemplated herein shall be made public by either Party without the prior written consent of the other.

 

		15.9	Publicity. Neither Party shall make any publicity releases, interviews or other dissemination
of information concerning this Agreement or its terms, or either Party’s performance hereunder, to communication media, financial
analysts or others without the prior written approval of the other Party. Notwithstanding anything to the contrary in this Agreement,
the Parties understand and agree that either Party, may, if so required, disclose some or all of the information included in this
Agreement or other Confidential Information of the other Party (a) in order to comply with its obligations under the law, including
the United States Securities Act of 1933, as amended, and the United States Securities Exchange Act of 1934, as amended; (b) in
order to comply with the listing standards or agreements of any national or international securities exchange, including the Tel
Aviv Stock Exchange, the NASDAQ Stock Market or the New York Stock Exchange or other similar laws of a governmental authority;
(c) to respond to an inquiry of a governmental authority or Regulatory Authority as required by law; or (d) in a judicial, administrative
or arbitration proceeding. In any such event referred to in clause (c) or (d) the Party making such disclosure shall to the extent
legally permitted (i) provide the other Party with as much advance notice as reasonably practicable of the required disclosure,
(ii) reasonably cooperate with the other Party in any attempt to prevent or limit the disclosure, and (iii) limit any disclosure
to the specific purpose at issue.

 

		15.10	Survival. Articles IV, V, VII, X, XI and XII and Sections 6.5, 9.3 and this
Section 15.10 shall survive the termination for any reason of this Agreement.

 

    [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

     

    

 

		15.11	Power; Authorization. Each Party represents that is has all requisite power and corporate
authority to enter into and perform its obligations in accordance with this Agreement. Perrigo Company guarantees to Sol-Gel the
performance of Perrigo under this agreement. The above obligation of the Perrigo Company constitutes a continuing guarantee of
performance to the extent that Perrigo has failed to cure (within 30 days) any default of its obligations and shall be absolute
and unconditional.

 

		15.12	Entire Agreement. This Agreement, including the appendices hereto, sets forth the entire
understanding between the Parties hereto as to the subject matter hereof and supersedes all other documents, agreements, verbal
consents, arrangements and understandings by or between the Parties with respect to the subject matter hereof.

 

		15.13	Limitation of Grant. Nothing in this Agreement shall be construed as granting by implication,
estoppel, or otherwise, any license or rights than otherwise set forth herein.

 

		15.14	Governing Law. This Agreement shall he governed by, and construed, and enforced in accordance
with the substantive laws of the State of New York, without giving effect to its rules concerning conflicts of laws.

 

    [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

     

    

 

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

 

	PERRIGO UK FINCO

LIMITED PARTNERSHIP	 	SOL-GEL TECHNOLOGIES LTD.
	 	 	 
	 	 	 	 	 
	By:	Perrigo International Holdings II, Inc.	 	 	 
	 	General Partner	 	 	 
	 	 	 	 	 
	Signature:	/s/ John T. Hendrickson	 	Signature:	/s/ Alon Seri-Levy
	 	 	 	 	 
	Name:	John T. Hendrickson	 	Name:	Alon Seri-Levy
	 	 	 	 	 
	Title:	Executive Vice President	 	Title:	Chief Financial Officer
	 	 	 	 	 
	Date:	April 29, 2015	 	Date:	April 29, 2015

 

We hereby agree to that stated in Section
15.11 above and undertake to act accordingly.

 

PERRIGO COMPANY

 

	Signature:	/s/ John T. Hendrickson	 
	 	 	 
	Name:	John T. Hendrickson	 
	 	 	 
	Title:	Executive Vice President	 
	 	 	 
	Date:	April 29, 2015	 

 

    [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

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