Document:

Exhibit 10.1

 

Execution Version

 

Portions of this exhibit have been omitted
and filed separately with the Secretary of the Securities and Exchange Commission (the “Commission”) pursuant to an
application for confidential treatment filed with the Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934,
as amended. Such portions are marked as indicated below.

 

CLINICAL DEVELOPMENT AND OPTION AGREEMENT

 

This Clinical Development
and Option Agreement (this “Agreement”) is made and entered into effective as of this 6th day of June,
2016 (the “CDOA Effective Date”), by and between Kyowa Hakko Kirin Co., Ltd. (“KHK”),
having a place of business at 1-6-1, Otemachi, Chiyoda-ku, Tokyo 100-8185, Japan, and Medgenics, Inc. (“Medgenics”),
having an address at 435 Devon Park Drive, Building 700, Wayne, PA 19087, U.S.A. Each of KHK and Medgenics may be referred to herein
individually as a “Party” and together as the “Parties.”

 

INTRODUCTION

 

WHEREAS, KHK possesses a
quantity of Anti-LIGHT mAb (as defined in Section 1.7 of the license agreement attached hereto as Exhibit B) and certain
materials, Confidential Information (as defined in Section 5.2.1) and proprietary cell lines relating to thereto; and

 

WHEREAS, KHK has provided
to Medgenics certain quantities of Anti-LIGHT mAb (the “Existing Clinical Material”) in accordance with
a Material Transfer Agreement, dated April 5, 2016 (the “Material Transfer Agreement”), and will transfer
to Medgenics the recombinant CHOK1SV stable cell line expressing Anti-LIGHT mAb, which cell line is designated as ***** (the “Master
Cell Line”) and certain Existing INDs (as defined in Section 1.1.3); and

 

WHEREAS, Medgenics desires
to use the Existing Clinical Materials, the Master Cell Line, the Confidential Information and the Existing INDs (collectively,
the “Materials”) for the conduct of a clinical study and potentially non-GMP process development of Anti-LIGHT
mAb, as described in Article 2; and

 

WHEREAS, Medgenics desires
to obtain an exclusive option to obtain a license under certain intellectual property controlled by KHK to develop, manufacture
and commercialize products containing Anti-LIGHT mAb (“Licensed Products”); and

 

WHEREAS, KHK desires to
allow Medgenics to use the Materials solely as permitted under this Agreement and to grant such exclusive option to Medgenics,
all under the terms and conditions of this Agreement.

 

NOW, THEREFORE, in consideration
of the mutual promises and covenants set forth below and other good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the Parties hereby agree as follows:

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

     

     

    

 

Article
1

TRANSFER 

 

1.1           Information
and Materials Transfer.

 

1.1.1           Remaining
Material Transfer. Subject to (a) KHK obtaining any necessary consents as set forth in Section 2.7 and (b) Lonza agreeing to
perform the activities contemplated by Section 2.4 on behalf of Medgenics or the Lonza Technology being sublicensed to another
contract manufacturer such that such contract manufacturer can perform the activities contemplated by Section 2.4 on behalf of
Medgenics, KHK will deliver to Medgenics or its designee the Master Cell Line. Delivery will be made FCA (INCOTERMS 2010) KHK’s
Takasaki Plant at an address of 100-1 Hagiwara-machi, Takasaki-shi, Gunma 370-0013. The FCA shipment terms are incorporated into
this Agreement.

 

1.1.2           Information
Transfer. Promptly after the CDOA Effective Date and during the CDOA Term (as defined in Section 7.1), KHK will allow Medgenics
to access (and subject to Section 2.6, such access will extend to such employees, advisors, consultants, contractors and other
representatives of Medgenics as Medgenics specifies) a virtual data room and to use all of the information contained therein, which
will include but not be limited to information relating to the Materials, such as clinical study reports, investigator’s
brochures, and the Existing INDs (as defined in Section 1.1.3), free of charge. Any and all such information contained in the virtual
data room will be ‘Confidential Information’
of KHK and will be subject to Section 5.2. Medgenics acknowledges that the virtual data room and the Confidential Information contained
therein includes information owned by one or more of (a) La Jolla Institute for Allergy and Immunology (“LJI”),
(b) Lonza Sales AG, a company incorporated and registered in Switzerland (“Lonza”),
(c) Sanofi, as successor in interest to Sanofi-Aventis, a corporation organized under the laws of France, (“Sanofi”),
and (d) Bristol-Myers Squibb Company (“BMS”),
and/or their respective successors and assigns (LJI, Lonza, Sanofi, and BMS and/or their respective successors and assigns, collectively,
the “KHK Licensors”).
Medgenics agrees that KHK or the KHK Licensors, as applicable, will retain any and all of their respective rights in the Confidential
Information.

 

1.1.3           Existing
IND Transfer. KHK hereby transfers and assigns, and will cause its Affiliates (including Kyowa Kirin Pharmaceutical Development,
Inc.) to transfer and assign, to Medgenics all of KHK’s
and its Affiliates’ rights in and to IND #***** and IND
#***** (the “Existing INDs”).
No later than ***** after the CDOA Effective Date, KHK will deliver to the United States Food and Drug Administration or a successor
agency in the United States with responsibilities comparable to those of the United States Food and Drug Administration (“FDA”)
the letter required by 21 CFR Part 314.72 notifying FDA of the transfer of the Existing INDs to Medgenics. If this Agreement expires
or terminates other than as a result of the exercise of the Option prior to the expiration of the Option Period, Medgenics will
transfer and assign to KHK or KHK’s designee the Existing
INDs and all amendments or supplements thereto submitted to FDA by or on behalf of Medgenics within ***** after such expiration
or termination of this Agreement. If this Agreement expires pursuant to Section 7.1(b) as a result of Medgenics’
exercise of the Option during the Option Period, Medgenics will retain title to the Existing INDs and all amendments or
supplements thereto submitted to FDA by or on behalf of Medgenics pursuant to the License Agreement (as defined below). In this
Agreement, a Party’s “Affiliate”
means, with respect to any person or entity, any other person or entity which controls, is controlled by, or is under common
control with such person or entity. A person or entity will be regarded as in control of another entity if it owns or controls
more than fifty percent (50%) of the equity securities of the subject entity entitled to vote in the election of directors (or,
in the case of an entity that is not a corporation, for the election of the corresponding managing authority).

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	-2-	 

     

    

 

1.2           Third
Party Technology. Medgenics acknowledges and agrees that the Materials, including without limitation the Confidential Information,
may contain some material, patent and other technologies owned or otherwise controlled by Lonza (the “Lonza
Technology”) or Sanofi (the “Sanofi
Technology”). Medgenics agrees that KHK or Lonza
or Sanofi, as applicable, will retain any and all of their respective rights in the Lonza Technology and the Sanofi Technology.

 

1.3           No
Modifications. Medgenics will use the Materials solely for the purpose of conducting the Initial Development (as defined below)
and deciding whether to exercise the Option, as described below. Medgenics will not modify the Materials under any circumstances,
and will not use or disclose any of the Materials, including without limitation any of the Lonza Technology or the Sanofi Technology,
unless such use or disclosure is expressly permitted hereunder.

 

Article
2

INITIAL DEVELOPMENT

 

2.1           Overview.
Medgenics will be permitted to conduct (a) requalification of the Existing Clinical Material (as set forth in Section 2.2), (b)
a Signal Finding Study (as set forth in Section 2.3), and (c) non-GMP process development of the Licensed Products (as set forth
in Section 2.4) ((a), (b), and (c) are collectively referred to as the “Initial
Development”). Medgenics will use commercially reasonable
efforts to conduct and complete the Initial Development.

 

2.2           Requalification.

 

2.2.1           Requalification
Activities Prior to CDOA Effective Date. The Parties understand and agree that Medgenics has performed certain activities related
to the requalification of the Existing Clinical Material prior to the CDOA Effective Date pursuant to the Material Transfer Agreement,
including certain “Testing”
and “Requalification”
(as each term is defined in the Material Transfer Agreement). Any such work performed under the Material Transfer Agreement will,
following the CDOA Effective Date, be governed by and subject to the terms of this Agreement.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	-3-	 

     

    

 

2.2.2           Requalification
Activities Following the CDOA Effective Date. Following the CDOA Effective Date, Medgenics will use commercially reasonable
efforts to requalify the Existing Clinical Material for use in the Signal Finding Study in accordance with a plan to be mutually
agreed upon by the Parties, performing such activities as are commercially reasonable to obtain the permission of the FDA to perform
the Signal Finding Study using the Existing Clinical Material. Medgenics will be solely responsible for and will bear all costs
incurred in requalifying the Existing Clinical Material. Medgenics may transfer the Existing Clinical Material to its Affiliates
and KHK Authorized CRO and CMOs (as defined in Section 2.6) as necessary or desirable to requalify the Existing Clinical Material,
subject to Section 2.6.

 

2.3           Signal
Finding Study.

 

2.3.1           Study
Protocol. Medgenics will use commercially reasonable efforts to conduct a signal finding study (the “Signal
Finding Study”) in accordance with a protocol titled
“Phase IB Escalating Dose, Open-label, Signal Finding Study
to Evaluate the Safety, Tolerability, and Short Term Efficacy of the anti-LIGHT monoclonal KHK252067 in Adolescents (12-18 years
of age) with Crohn’s disease resistant to anti-TNF alpha
monoclonal antibodies , with and without loss of function mutations in decoy receptor 3 (DcR3) (anti-LIGHT in anti-TNFalpha
resistant Crohn’s disease (TRaCk LIGHT)”,
which will be substantially in the form of the protocol summary attached hereto in Exhibit A, subject to KHK’s
internal review and then incorporating feedback to be received from the principal investigator and FDA (the “Study
Protocol”). The Signal Finding Study is intended
to preliminarily assess (but without sufficient statistical power) whether a certain genetic mutation may identify a pediatric
orphan population that may be treatable with a Licensed Product. As further set forth in Section 3.1, Medgenics will bear all costs
and expenses, including but not limited to FTE costs and out-of-pocket costs, incurred by or on behalf of Medgenics or its Affiliates
and their contractors relating to the conduct of the Signal Finding Study and the analysis of the results of the Signal Finding
Study.

 

2.3.2           Conduct
of the Study. The Signal Finding Study will be conducted under the Existing INDs. Medgenics will act as the sponsor of the
Signal Finding Study and conduct the Signal Finding Study subject to and in accordance with the terms and conditions of this Agreement,
the Study Protocol and all Applicable Law, including but not limited to applicable Good Clinical Practices and Good Laboratory
Practices. “Applicable Law”
means the laws, rules and regulations, including any rules, regulations, guidelines or other requirements of the regulatory authorities
applicable to the Initial Development or other activities conducted by the Parties under this Agreement, that may be in effect
from time to time in the applicable jurisdiction. “Good
Clinical Practices” means the then-current standards,
practices and procedures promulgated or endorsed by the FDA as set forth in the guidelines entitled “Guidance
for Industry E6 Good Clinical Practice: Consolidated Guidance,”
including without limitation related regulatory requirements imposed by the FDA and comparable regulatory standards, practices
and procedures promulgated by any other applicable regulatory authority, as they may be updated from time to time. “Good
Laboratory Practices” means the then-current good
laboratory practice standards promulgated or endorsed by the FDA as defined in 21 C.F.R. Part 58, and comparable regulatory standards
promulgated by any other applicable regulatory authority, as they may be updated from time to time. “GMP”
means current Good manufacturing practices for the manufacture of products as are required by applicable regulatory authorities
and Applicable Law. In the United States, GMP will be defined under the rules and regulations of the FDA, as the same may be amended
from time to time.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	-4-	 

     

    

 

2.3.3           Regulatory
Matters. Medgenics will formulate the regulatory strategy to allow the Signal Finding Study to be conducted in the United States
and lead all communications with the FDA and any independent body comprising medical, scientific, and nonscientific members, whose
responsibility is to ensure the protection of the rights, safety, and well-being of any human subjects involved in the Signal Finding
Study (each an “IRB”)
regarding the same; provided that Medgenics will inform KHK of the regulatory strategy regarding the Signal Finding Study before
any interaction is made with the FDA and will inform KHK of the results of all FDA regulatory correspondence within ***** after
such regulatory meetings, and will provide KHK with written minutes of such regulatory meetings within ***** after they are received
by Medgenics. Notwithstanding any provision of this Agreement, Medgenics may disclose information relating to the Materials to
FDA and any IRB as required or as believed necessary to obtain approval for conducting the Signal Finding Study in the United States.
Medgenics will disclose to KHK any and all material correspondence between Medgenics and the FDA regarding the Initial Development,
including without limitation any information discussed with the FDA in the FDA Meeting (as defined in Section 2.5.2) and FDA minutes
concerning the Initial Development, within ***** after receipt or transmission thereof. Medgenics will keep KHK informed of any
planned or actual communications with the FDA regarding the Initial Development.

 

2.3.4           Material
Safety Issues. If either Party believes that the Signal Finding Study should be terminated because it is necessary to protect
the safety, health or welfare of subjects enrolled in the Signal Finding Study due to the existence of a Material Safety Issue
(as defined below), then the Parties will promptly meet and discuss in good faith the safety concerns raised by such Party and
consider in good faith the input, questions and advice of the other Party. “Material
Safety Issue” means a Party’s
good faith belief that there is an unacceptable risk for harm in humans based upon the observation of serious adverse effects in
humans after the Material has been administered to or taken by humans.

 

2.4           Non-GMP
Process Development. Subject to (a) KHK obtaining any necessary consents as set forth in Section 2.7, (b) Lonza agreeing to
perform the activities contemplated by this Section 2.4 on behalf of Medgenics or the Lonza Technology being sublicensed to another
contract manufacturer such that such contract manufacturer can perform the activities contemplated by this Section 2.4 on behalf
of Medgenics, and (c) the successful requalification of the Existing Clinical Material (as set forth in Section 2.2), Medgenics
will use commercially reasonable efforts to conduct or have conducted the non-GMP process development for the purpose of demonstrating
that Medgenics can manufacture Licensed Products that are biologically equivalent to the Existing Clinical Materials. As soon as
reasonably practicable following the CDOA Effective Date, Medgenics will provide to KHK a plan to effect the foregoing, which will
include the identity of any person other than a Party or any of its Affiliates (each, a “Third
Party”) that Medgenics proposes to use in the conduct
of such non-GMP process development.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	-5-	 

     

    

 

2.5           Initial
Development Data.

 

2.5.1           Records
and Reporting. Medgenics will maintain complete and accurate records of all work conducted with respect to the Initial Development,
which, for clarity, includes records for work performed pursuant to the Material Transfer Agreement, including without limitation
the “Testing Data”
and “Requalification Data”
(each as defined in the Material Transfer Agreement), and all other results, information, data, data analyses, reports, records,
methods, processes, practices, formulae, instructions, skills, techniques, procedures, experiences and developments made by or
on behalf of Medgenics in the course of conducting the Initial Development (collectively, “Initial
Development Data”). For clarity, the SAS dataset
from the Signal Finding Study will be included in the Initial Development Data. The Parties will hold a telephonic or in person
meeting at least once each calendar quarter for sharing updates and discussing action plans on issues related to the Initial Development,
including, but not limited to, the requalification of the Existing Clinical Material, the Signal Finding Study, and non-GMP process
development. Medgenics will disclose to KHK any clinical trial data from the Signal Finding Study received from the Children’s
Hospital of Philadelphia (“CHOP”)
promptly after Medgenics receives such data. Medgenics will maintain the Initial Development Data in its database and will upon
KHK’s request, use good faith efforts to provide KHK with
a copy or an electronic file of the Initial Development Data for KHK’s
use within ***** of receipt of such request. Additionally, upon KHK’s
reasonable request, Medgenics will provide to KHK a copy or an electronic file of the topline data from the completed Signal Finding
Study in its possession within ***** following receipt of such request. The topline data will consist of the summary tables of
efficacy and safety, as defined in the Study Protocol, and will be compiled and prepared following database lock and all necessary
QA/QC activities.

 

2.5.2           Initial
Study Report. No later than ***** after the date of database lock for the Signal Finding Study, Medgenics will provide KHK
with a preliminary study report, including without limitation tables, figures, and listings (the “Initial
Study Report”). Upon delivery of the Initial Study
Report, Medgenics will notify KHK whether Medgenics will seek a meeting (such as an end of phase (“EOP”)
1, EOP2a, EOP2 or Type C meeting, as applicable) with the FDA regarding the Signal Finding Study and continued development of Anti-LIGHT
mAb (“FDA Meeting”).

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	-6-	 

     

    

 

2.6           Subcontracting.
Medgenics may transfer the Existing Clinical Material to its Affiliates, contract manufacturers, contract laboratories, contract
research organizations and clinical sites as necessary or desirable to conduct the Initial Development on behalf of Medgenics,
subject to this Section 2.6. The Parties agree that one of the sites for the Signal Finding Study may be CHOP and that ***** is
one of the contract research organizations that will be performing the requalification activities set forth in Section 2.2. Medgenics
will not use any other trial site for the Signal Finding Study without obtaining KHK’s
prior written consent, not to be unreasonably withheld, conditioned or delayed. In addition, Medgenics will not use any other contract
research organization or contract manufacturing organization in connection with the Initial Development without obtaining KHK’s
prior written consent, not to be unreasonably withheld, conditioned or delayed (any such approved contractor, a “KHK
Authorized CRO and CMO”). Medgenics will only be
permitted to transfer any of the Materials to a KHK Authorized CRO and CMO. For the avoidance of doubt, ***** is a KHK Authorized
CRO and CMO for purposes of performing the requalification activities set forth in Section 2.2, but Medgenics requires the consent
of KHK pursuant to Section 2.7 to use ***** to perform the non-GMP process development activities set forth in Section 2.4. Notwithstanding
any such subcontracting, Medgenics will remain at all times fully responsible for its obligations under this Agreement. Any agreement
with a Third Party to perform Medgenics’ responsibilities under this Agreement will include confidentiality and non-use provisions
which are no less stringent than those set forth in Article 5.

 

2.7           Required
Consents.

 

2.7.1           Following
KHK’s receipt of Medgenics’
proposed plan for the applicable Initial Development, including without limitation under Sections 2.2.2 and 2.4, and including
the identity of any and all proposed subcontractors, KHK will use commercially reasonable efforts to obtain any additional consents
or permissions, in form and substance reasonably acceptable to Medgenics, from any Third Party with whom KHK has a contractual
relationship that are reasonably necessary for Medgenics to conduct such Initial Development.

 

2.7.2           Notwithstanding
the foregoing, Medgenics acknowledges that Lonza does not permit tiered sublicensing of its technology. With respect to the Lonza
Technology and activities contemplated by Section 2.4, Medgenics will negotiate with Lonza in an attempt to obtain Lonza’s
agreement to (a) perform the activities contemplated by Section 2.4 on behalf of Medgenics under terms acceptable to Medgenics,
it being understood that such terms include, but are not limited to, price, facility and resource availability and commitments
for commercial scale manufacturing using Medgenics’ preferred
technology platform (the “Medgenics Lonza Supply Agreement”)
or (b) license the Lonza Technology directly to Medgenics, including the right to sublicense to another contract manufacturer such
that such contract manufacturer can perform the activities contemplated by Section 2.4 on behalf of Medgenics as well as commercial
supply (the “Medgenics Lonza License Agreement”).
If such negotiations do not result in a mutually agreed upon Medgenics Lonza Supply Agreement or Medgenics Lonza License Agreement,
then *****.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	-7-	 

     

    

 

2.8           No
Further Obligations. The Parties understand and agree that, except for the obligations expressly set forth herein, KHK will
have no other obligations or liability under this Agreement with respect to the conduct of the Initial Development.

 

2.9           Defined
Terms. Any capitalized terms that are not defined in this Agreement will have their respective meanings set forth in the license
agreement attached hereto as Exhibit B.

 

Article
3

COSTS

 

3.1           Initial
Development Costs. Medgenics will bear all costs and expenses, including but not limited to FTE costs and out-of-pocket costs,
incurred by or on behalf of Medgenics or its Affiliates and their contractors relating to the conduct of the Initial Development.
For the avoidance of doubt, neither KHK nor any of its Affiliates will be responsible for any cost incurred by or on behalf of
Medgenics in connection to its activities conducted under this Agreement or the Initial Development.

 

3.2           Lonza
Costs. The Parties do not anticipate that any manufacture of Anti-LIGHT mAb will occur under this Agreement. However, if during
the CDOA Term (as defined in Section 7.1) Medgenics contracts with a KHK Authorized CRO and CMO for the manufacture of Anti-LIGHT
mAb or for the non-GMP process development work contemplated by Section 2.4, and the entry into such contract triggers any payment
obligation by KHK to Lonza, then Medgenics will reimburse KHK any and all such payments that KHK makes to Lonza, provided that
any such reimbursement obligations of Medgenics will not exceed *****. Alternatively, if Medgenics enters into the Medgenics Lonza
Supply Agreement or Medgenics Lonza License Agreement, Medgenics may deduct ***** of the upfront payments and milestone payments
(but not annual fees) made by Medgenics to Lonza from the initial license fee and milestone payments to be paid to KHK by Medgenics
under the License Agreement (as defined in Section 4.1.4(b)), such deduction not to exceed *****. For clarity, if Lonza and Medgenics
enter into the Medgenics Lonza License Agreement and Medgenics has an obligation to pay an annual fee to Lonza pursuant to the
Medgenics Lonza License Agreement during the CDOA Term, as between the Parties, Medgenics will solely bear such annual fee, and
such payment will not be subject to the deduction set forth in this Section 3.2.

 

Article
4

OPTION

 

4.1           Option
and Exclusivity.

 

4.1.1        Option
Grant. Subject to the terms and conditions of this Agreement, KHK hereby grants to Medgenics an exclusive (even as to KHK and
its Affiliates) option to obtain an exclusive (even as to KHK and its Affiliates) license to develop and commercialize Licensed
Products in accordance with the terms and conditions specified in Exhibit B or Exhibit C attached hereto, as elected
by KHK and as more fully described in Section 4.1.4 (the “Option”).

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	-8-	 

     

    

 

4.1.2        Updates
to Medgenics’ Representations and Warranties in License Agreements;
Notice of Changes to Medgenics In-License. On the date on which Medgenics provides the Initial Study Report to KHK pursuant
to Section 2.5.2, Medgenics will provide KHK with written updates to Section 12.4 of the license agreement attached hereto as Exhibit
B and Section 12.4 of the license agreement attached hereto as Exhibit C concerning any event, condition, fact or circumstance
occurring after the CDOA Effective Date that would make Medgenics’
representations and warranties set forth in Section 12.4 of the license agreement attached hereto as Exhibit B and Section
12.4 of the license agreement attached hereto as Exhibit C untrue or incorrect when made as of the date on which Medgenics
provides such update to KHK. All such written updates are collectively referred to as the “Medgenics
Disclosure Schedule Updates.” On the date on which
Medgenics provides the Initial Study Report to KHK pursuant to Section 2.5.2, Medgenics will also provide KHK with written notice
of any amendment to the Medgenics In-License that would have a material impact on this Agreement, which notice will provide the
substance of any such amendment.

 

4.1.3        Updates
to KHK’s Representations and Warranties in License Agreements;
Notice of Changes to any KHK In-License. No later than ***** after the date on which Medgenics provides the Initial Study Report
to KHK pursuant to Section 2.5.2, KHK will provide Medgenics with written updates to Section 12.2 of the license agreement attached
hereto as Exhibit B and Section 12.2 of the license agreement attached hereto as Exhibit C concerning any event,
condition, fact or circumstance occurring after the CDOA Effective Date that would make KHK’s
representations and warranties set forth in Section 12.2 of the license agreement attached hereto as Exhibit B and Section
12.2 of the license agreement attached hereto as Exhibit C untrue or incorrect when made as of the date on which KHK provides
such update to Medgenics. All such written updates are collectively referred to as the “KHK
Disclosure Schedule Updates.” No later than *****
after the date on which Medgenics provides the Initial Study Report to KHK pursuant to Section 2.5.2, KHK will also provide KHK
with written notice of any amendment to any KHK In-License that would have a material impact on this Agreement, which notice will
provide the substance of any such amendment.

 

4.1.4        Option
Exercise.

 

(a)          Medgenics
may exercise the Option by giving KHK written notice (the “Option
Exercise Notice”) at any time beginning ***** and
ending *****:

 

(i)          *****,
or

 

(ii)         *****
(such period, the “Option Period”).

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	-9-	 

     

    

 

(b)          If
Medgenics provides KHK with the Option Exercise Notice during the Option Period, then on or before *****, KHK will notify Medgenics
in writing as to whether it elects for the license agreement attached hereto as Exhibit B to become effective (the “Plan
A Election”) or for the license agreement attached
hereto as Exhibit C to become effective (the “Plan
B Election”), with the election between the two being
in KHK’s sole discretion. If KHK fails to notify Medgenics
as to whether it has elected the Plan A Election or the Plan B Election on or before the expiration of *****, KHK will be deemed
to have elected the Plan B Election as of the expiration of *****. As of the date KHK provides notice to Medgenics as to whether
KHK has elected the Plan A Election or the Plan B Election or KHK being deemed to have elected the Plan B Election (the “License
Agreement Effective Date”), the applicable license
agreement (i.e., the license agreement attached hereto as Exhibit B if KHK elects the Plan A Election or the license
agreement attached hereto as Exhibit C if KHK elects or is deemed to have elected the Plan B Election) will become fully
effective (such fully effective license agreement, the “License
Agreement”) and the other license agreement will
not become effective and will be null and void. For the avoidance of doubt, the Plan A Election and the Plan B Election will result
in different rights and obligations accruing to the Parties.

 

4.2           License
Terms. The Parties acknowledge and agree that the terms and conditions specified in the license agreements attached hereto
as Exhibit B and Exhibit C, respectively, reflect the agreed upon terms of the Parties with respect to any potential
license to Medgenics under the Plan A Election or the Plan B Election, respectively. Exhibit B and Exhibit C will
not, unless otherwise expressly agreed in writing by both Parties, be subject to further negotiation except that (a) Schedule
12.4 to the license agreement attached hereto as Exhibit B and Schedule 12.4 to the license agreement attached
hereto as Exhibit C will be deemed updated by the Medgenics Disclosure Schedule Updates and (b) Schedule 12.2 to the license
agreement attached hereto as Exhibit B and Schedule 12.2 to the license agreement attached hereto as Exhibit C will
be deemed updated by the KHK Disclosure Schedule Updates.

 

4.3           Exclusivity.

 

4.3.1        During
the CDOA Term, neither KHK nor any of its agents will (a) continue or enter into discussions, negotiations or agreements with any
entity or individual other than Medgenics or its Affiliates for the purpose of discussing or evaluating a possible license, collaboration,
joint venture, partnership, asset sale or other business relationship that would conflict with the Option or the rights to be granted
under the License Agreement (if Medgenics exercises the Option) or (b) furnish any information with respect to, assist or participate
in, or in any other manner facilitate any effort or attempt by any Third Party to do or seek to do any of the foregoing. During
the CDOA Term, KHK will not modify or amend any KHK In-License in any way that would materially adversely affect Medgenics’
rights or economic interest under this Agreement or the license agreements attached to Exhibits B and C hereto without
Medgenics’ prior written consent.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	-10-	 

     

    

 

4.3.2        During
the CDOA Term, Medgenics will not modify or amend any Medgenics In-License in any way that would materially adversely affect KHK’s
rights or economic interest under this Agreement or the license agreements attached to Exhibits B and C hereto without
KHK’s prior written consent.

 

Article
5

DATA; CONFIDENTIAL INFORMATION

 

5.1           Initial
Development Data.

 

5.1.1        The
Parties will jointly own any and all Initial Development Data. KHK or Medgenics, or their respective Affiliates, will use the Initial
Development Data only to conduct Initial Development as contemplated hereunder or to analyze the results of the Initial Development.
During the CDOA Term (as defined in Section 7.1), neither Party will, without the other Party’s
prior written consent, use or cause any Third Party to access or use the Initial Development Data for any other purpose.

 

5.1.2        The
Parties will jointly own any intellectual property arising from the Initial Development or the Initial Development Data (“Initial
Development IP”), except for patents and patent applications,
where ownership will follow inventorship. For clarity, Medgenics will own patents and patent applications solely invented by Medgenics
inventors, KHK will own patents and patent applications solely invented by KHK inventors, and Medgenics and KHK will jointly own
patents and patent applications invented by one or more Medgenics inventor and one or more KHK inventor. Inventorship will be resolved
in accordance with US patent laws. Each Party will provide the other Party, during the CDOA Term, with a non-exclusive, royalty
free, perpetual, fully paid up license to the Initial Development IP with a right to sublicense only with the other Party’s
consent, for any purpose. During the CDOA Term, unless expressly provided herein, the intellectual property provisions in the license
agreement attached to Exhibit B will apply to any Initial Development IP. Upon exercise of the Option, the intellectual
property provisions in the applicable license agreement attached to Exhibit B or Exhibit C will apply to any such
Initial Development IP. If this Agreement expires or terminates other than as a result of the exercise of the Option, then all
rights in the Initial Development Data and any Initial Development IP (including any patents or patent applications contained therein)
will revert to KHK, and Medgenics, at Medgenics’ cost and
expense, will and hereby does assign to KHK, effective as of the effective date of such expiration or termination, Medgenics’
entire right title and interest in and to the Initial Development Data and any Initial Development IP (including without limitation
any patents or patent applications contained therein).

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	-11-	 

     

    

 

5.1.3        During
the CDOA Term, unless explicitly authorized in this Agreement, Medgenics and KHK will not, without the prior written consent of
the other Party, which consent will not be unreasonably withheld, conditioned or delayed, file any patent application, issue any
scientific publications, or conduct further clinical studies with respect to the Initial Development Data, except that the foregoing
will not be construed to prohibit the clinical investigators of the Signal Finding Study (including, without limitation, CHOP)
from making scholarly publications of the clinical data included in the Initial Development Data (“Publications”);
provided that Medgenics will ensure that (a) any such clinical investigator must agree to submit to KHK for its review and comment,
a copy of any proposed Publication, abstract or other disclosure resulting from such activities, simultaneous with submission of
the same to Medgenics and at least ***** prior to any such presentation or publication, (b) such publication will not contain any
references to, or otherwise disclose any of, the Confidential Information (other than such clinical data included in the Initial
Development Data) without KHK’s prior written consent, and
(c) that at KHK’s request, such clinical investigator will, for a reasonable period of up to ***** from initial delivery
to KHK, delay revealing any subject matter included in the Initial Development Data in any publication or disclosure in order to
permit the filing of patent applications.

 

5.2           Confidential
Information.

 

5.2.1        Definition
of Confidential Information. “Confidential Information”
means, any information that is disclosed by or on behalf of a Party (together with its Affiliates, the “Disclosing
Party”) to the other Party (together with its Affiliates,
the “Receiving Party”)
that is (a) identified as confidential or some other similar designation either in writing or orally, provided that any orally
disclosed information is described in reasonable detail in a written notice sent by the Disclosing Party to the Receiving Party
within thirty (30) days of the oral disclosure requesting that such information be treated as ‘Confidential
Information’ hereunder, (b) manifestly confidential, whether
or not marked as such, and (c) proprietary data or information of such Disclosing Party or its sublicensees, including without
limitation, (i) the existence and content of this Agreement (including the Exhibits attached hereto), (ii) the Initial Development
Data, (iii) the information transferred under Section 1.1, and (iv) any ‘KHK
Confidential Information’ as defined by the “CONFIDENTIALITY
AND NONDISCLOSURE AGREEMENT” made and entered into on May
22, 2015 among the Parties, ***** and CHOP, as amended through the date hereof, and, for clarity, KHK will be deemed to be the
Disclosing Party for purposes of this Agreement with respect to such ‘KHK
Confidential Information’. Notwithstanding anything to the
contrary in this Article 5, the Initial Development Data will be deemed to be Confidential Information of both Parties during the
CDOA Term, and if this Agreement expires or terminates other than as a result of the exercise of the Option prior to the expiration
of the Option Period then the Initial Development Data will be deemed to be Confidential Information of KHK.

 

5.2.2       
Use and Disclosure. All Confidential Information of the Disclosing Party will be used by the Receiving Party solely in connection
with the activities contemplated by this Agreement, will be maintained in confidence by the Receiving Party and will not otherwise
be disclosed by the Receiving Party to any Third Party, without the prior written consent of the Disclosing Party, except to the
extent that the Confidential Information (as determined by competent documentation):

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	-12-	 

     

    

 

(a)          was
known or used by the Receiving Party without restriction as to its use or disclosure prior to its date of disclosure to the Receiving
Party; or

 

(b)          either
before or after the date of the disclosure to the Receiving Party is lawfully disclosed to the Receiving Party without restriction
as to its use or disclosure by sources other than the Disclosing Party rightfully in possession of the Confidential Information;
or

 

(c)          either
before or after the date of the disclosure to the Receiving Party becomes published or generally known to the public (including
without limitation information known to the public through the sale of products in the ordinary course of business) through no
fault or omission on the part of the Receiving Party; or

 

(d)          is
independently developed by or for the Receiving Party without reference to or reliance upon the Confidential Information.

 

5.2.3        Permitted
Disclosures. Notwithstanding anything to the contrary in this Agreement, the provisions of this Article 5 will not preclude
the Receiving Party from disclosing Confidential Information pursuant to Section 5.1.3 or to the extent such Confidential Information
is required to be disclosed by the Receiving Party (i) in any filings made to the FDA or other similar regulatory authority in
the United States or any other country, provided that such filings are directly related to the Initial Development, (ii) to defend
or prosecute litigation or comply with governmental regulations, (iii) in connection with a valid order from a court or other governmental
authority or (iv) in compliance with Section 5.3, provided that in each such case, the Party disclosing such information will disclose
no more Confidential Information than is necessary and will provide the other Party with as much prior notice of the pendency of
any such disclosure as is reasonably possible to allow such other Party sufficient opportunity to object to such disclosure or
to exercise its rights to seek a protective order or request for confidential treatment for any such Confidential Information.
KHK and Medgenics each agree that they may provide Confidential Information received from the other Party only to their respective
directors, officers, employees, or permitted subcontractors under and in accordance with Section 2.6, collaborators and advisors,
and to those of such Party’s Affiliates, who have a need
to know for the purposes of the Initial Development and who are bound by confidentiality obligations at least as strict as this
Article 5. In addition, each Party may disclose the terms of this Agreement (to the extent such terms are confidential) to its
actual or prospective lenders, investors, acquirers, licensees/sublicensees or strategic partners or to a Party’s
accountants, attorneys and other professional advisors; provided that such disclosures will be subject to continued confidentiality
obligations at least as strict as those contained in this Article 5.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	-13-	 

     

    

 

5.2.4        Duration.
If this Agreement expires pursuant to Section 7.1(a) or is terminated pursuant to Section 7.2, 7.3, 7.4 or 7.5, all obligations
of confidentiality imposed under this Article 5 will expire five (5) years following such expiration or termination, except with
respect to a trade secret, for which such obligations of confidentiality shall expire when such trade secret is no longer a trade
secret. If this Agreement expires pursuant to Section 7.1(b), then the License Agreement supersedes this Article 5 and will govern
matters concerning Confidential Information, and any and all Confidential Information will be deemed to be “Confidential
Information” as such term is defined in the License Agreement.

 

5.3           Publicity.
Except for public disclosures (a) resulting from the issuance of the press release agreed upon by the Parties and attached
to this Agreement as Exhibit D, (b) otherwise permitted under Section 5.1.3 or 5.2.3 or (c) required by Applicable Law or by the
rules and regulations of any securities exchange on which any of a Party’s
securities is listed, neither Party will disclose any publicity, news release or public announcements, written or oral, whether
to the public or press, stockholders or otherwise, relating to the execution of this Agreement, the subject matter of this Agreement
(including the results of the Signal Finding Study), any of the terms of this Agreement, or any amendment hereto without the prior
written consent of the other Party. If a public disclosure is required by any Applicable Law, including, without limitation, in
a filing with the Securities and Exchange Commission or submission to an exchange on which any securities of a Party is listed,
the disclosing Party shall provide copies of the disclosure (omitting portions of any filing, submission or disclosure not relevant
to this provision) reasonably in advance of such filing or other disclosure, for the non-disclosing Party’s
prior review and comment and to allow the other Party a reasonable time to object to any such disclosure or to request confidential
treatment thereof. The disclosing Party will negotiate in good faith with the applicable Regulatory Authority concerning the confidential
treatment request. If the disclosure is substantially similar to prior disclosures made by the Party and for which the obligations
of this provision have been satisfied, the disclosing Party need not share such disclosure ahead of it being made.

 

5.4           Use
of Names and Trademarks. Neither Party may use the name, trademark, trade name or logo of the other Party in any publicity,
news release or public disclosure relating to this Agreement or its subject matter without the prior express written permission
of the other Party, except as otherwise permitted under Sections 5.1.3 or 5.2.3.

 

Article
6

LICENSE

 

6.1           License
Grant. Subject to the terms and conditions of this Agreement, KHK hereby grants Medgenics an exclusive (even as to KHK and
its Affiliates), sublicensable (to its Affiliates and, subject to Section 6.4, Third Parties approved by KHK), milestone-free and
royalty-free right and license, under the KHK Technology, solely for the purpose of conducting the Initial Development during the
CDOA Term.

 

6.2           Sanofi
Technology. Subject to the terms and conditions of this Agreement, KHK hereby grants Medgenics a non-exclusive, sublicensable
(to its Affiliates and, subject to Section 6.4, Third Parties approved by KHK), milestone-free and royalty-free right and license
to use the Sanofi Technology solely for the purpose of conducting the Initial Development in the European Union, Switzerland, the
United States, Canada, Australia or South Korea during the CDOA Term. Medgenics will use the Sanofi Technology only as described
in the letters from Sanofi to KHK *****.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	-14-	 

     

    

 

6.3           Lonza
Technology. Subject to the terms and conditions of this Agreement and subject to obtaining Lonza’s
written consent as set forth in Section 2.7, KHK will grant to Medgenics a non-exclusive, sublicensable (to its Affiliates and,
subject to Section 6.4, Third Parties approved by KHK), milestone-free and royalty-free right and license to use the Lonza Technology
solely for the purpose of conducting the Initial Development in the United States during the CDOA Term. The Parties understand
and agree that terms and conditions of such sublicense of the Lonza Technology to Medgenics will be discussed and determined by
the Parties separately from this Agreement.

 

6.4           No
Sublicensing. Medgenics will not sublicense any of the rights granted to it under Section 6.1, 6.2 or 6.3 to any Third Party
except to the extent required in connection with subcontracting the Initial Development to CHOP, or to another clinical site or
to a KHK Authorized CRO and CMO as set forth in Section 2.6, and only upon KHK’s
prior written consent, which consent will not be unreasonably withheld, delayed or conditioned; provided, however, that KHK’s
denial of a consent will not be considered to be unreasonable if after compliance with Section 2.7, KHK is not able to obtain the
applicable consent.

 

6.5           No
Other Rights. Except as otherwise expressly provided in this Agreement, under no circumstances will a Party, as a result of
this Agreement, obtain any ownership interest or other right in any intellectual property rights of the other Party, including
without limitation items controlled or developed by the other Party, or provided by the other Party to the receiving Party at any
time pursuant to this Agreement.

 

Article
7

TERM AND TERMINATION

 

7.1           Term.
This Agreement will become effective on the CDOA Effective Date and, unless earlier terminated pursuant to Section 7.2, 7.3, 7.4
or 7.5, will expire on the earlier of (a) the expiration of the Option Period if Medgenics does not exercise the Option or (b)
the License Agreement Effective Date if Medgenics does exercise the Option (the “CDOA
Term”).

 

7.2           Termination
for Breach. If a Party (the “Breaching Party”)
is in breach of this Agreement, the other Party (the “Non-Breaching
Party”) will have the right to give the Breaching
Party notice specifying the nature of such breach. The Breaching Party will have a period of thirty (30) calendar days after receipt
of such notice to cure such breach (the “Cure Period”)
in a manner reasonably acceptable to the Non-Breaching Party. The Non-Breaching Party will have the right to terminate this Agreement,
effective immediately upon delivery of written notice to the Breaching Party, in the event that the Breaching Party has not cured
such breach within the Cure Period, provided that, if such breach is capable of cure but cannot be cured within the Cure Period,
and the Breaching Party commences actions to cure such breach within the Cure Period and thereafter diligently continues such actions,
the Non-Breaching Party may only terminate this Agreement if the Breaching Party stops using diligent efforts to cure such breach.
For the avoidance of doubt, this Section 7.2 is not intended to restrict in any way either Party’s
right to notify the other Party of any other breach or to demand the cure of any other breach.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	-15-	 

     

    

 

7.3           Termination
for Insolvency. To the extent permitted under Applicable Law, either Party will have the right to terminate this Agreement
in its entirety, at its sole discretion, upon delivery of written notice to the other Party upon the filing by such other Party
in any court or agency pursuant to any statute or regulation of the United States or any other jurisdiction of a petition in bankruptcy
or insolvency or for reorganization or similar arrangement for the benefit of creditors or for the appointment of a receiver or
trustee of such Party or its assets, upon the proposal by such Party of a written agreement of composition or extension of its
debts, or if such Party is served by a Third Party (and not by the other Party) with an involuntary petition against it in any
insolvency proceeding, upon the ninety-first (91st) day after such service if such involuntary petition has not previously been
stayed or dismissed, or upon the making by such other Party of an assignment for the benefit of its creditors.

 

7.4           Termination
for Safety Reasons. If KHK and Medgenics do not agree on whether the Signal Finding Study must be terminated because of a Material
Safety Issue pursuant to Section 2.3.4, Medgenics will have the right to terminate this Agreement. In the event KHK wishes to terminate
this Agreement because of a Material Safety Issue related to the Signal Finding Study but Medgenics does not agree, Medgenics will
have the right to continue the Signal Finding Study, provided that it will assume all liability for any such decision and indemnify
KHK for any liability resulting in such continuation, as set forth in Section 9.4.

 

7.5           Termination
by KHK. If the Initial Study Report is not provided to KHK within ***** for reasons other than reasons that are outside of
Medgenics’ control, then KHK will have the right to terminate
this Agreement effective immediately upon written notice to Medgenics. KHK may also terminate this Agreement effective immediately
upon written notice to Medgenics as set forth in Section 8.6.2.

 

7.6           Effects
of Expiration or Termination.

 

7.6.1        Upon
expiration (other than pursuant to clause (b) of Section 7.1) or termination of this Agreement or if requested by KHK, Medgenics
will return or destroy unused supplies of the Materials, including without limitation any Confidential Information of KHK, upon
the direction of KHK and at Medgenics’ expense. In the event
Medgenics destroys the unused Materials, Medgenics will provide KHK with a certificate regarding compliance with this provision.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	-16-	 

     

    

 

7.6.2           Upon
expiration of this Agreement pursuant to Section 7.1(a) or termination of this Agreement pursuant to Section 7.2, 7.3, 7.4 or 7.5,
the license agreements attached hereto as Exhibit B and Exhibit C will not become effective and will be null and
void. Upon expiration of this Agreement pursuant to Section 7.1(b), the License Agreement that became effective pursuant to Section
4.1.4(b) shall remain fully effective notwithstanding that it is not separately executed by the Parties and notwithstanding expiration
of this Agreement.

 

7.7           Survival.
Claims accrued prior to expiration or termination of this Agreement for any reason will survive expiration or termination of this
Agreement. Sections 1.1.2 (last two sentences only), 1.1.3 (third sentence only upon expiration of this Agreement pursuant to Section
7.1(a) or termination of this Agreement pursuant to Section 7.2, 7.3, 7.4 or 7.5), 1.1.3 (fourth sentence only upon expiration
of this Agreement pursuant to Section 7.1(b)), 1.2, 3.1, 3.2, 5.1.2, 5.1.3 (with respect to publication review rights), 5.2, 5.3,
5.4, 6.5, 7.6 and this 7.7 and Article 9 and Article 10 will survive any expiration or termination of this Agreement for any reason
in accordance with their respective terms; provided that if the License Agreement becomes fully effective in accordance with Section
4.1.4(b), to the extent there is any inconsistency between such surviving terms and the terms of the License Agreement, the terms
of the License Agreement will control.

 

Article
8

REPRESENTATIONS, WARRANTIES AND COVENANTS

 

8.1           Mutual
Representations and Warranties. Each Party represents, warrants and covenants to the other Party
that as of the CDOA Effective Date of this Agreement:

 

(a)          Corporate
Existence and Authority. It is a company duly organized, validly existing and in good standing under the laws of its jurisdiction
of organization, and has full corporate or other power and authority to enter into this Agreement and to carry out the provisions
hereof.

 

(b)          Authorized
Execution; Binding Obligation.

 

(i)          The
execution, delivery, and performance of this Agreement and the consummation of the transactions contemplated hereby have been duly
authorized and approved by all necessary corporate action on its part.

 

(ii)         This
Agreement has been duly executed and delivered by it and constitutes a legal, valid, and binding obligation enforceable against
it in accordance with this Agreement’s terms, except as the
same may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws relating to or affecting creditors’
rights generally and by general equity principles, including judicial principles affecting the availability of injunction and specific
performance.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	-17-	 

     

    

 

(c)          No
Conflicts. 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 and by which it may be bound.

 

(d)          All
Consents and Approvals Obtained. Except with respect to any consent required from Lonza or Sanofi, (i) all necessary consents,
approvals and authorizations of, and (ii) all notices to, and filings by such Party with, all governmental authorities and other
persons or entities required to be obtained or provided by such Party in connection with the execution, delivery and performance
of this Agreement have been obtained and provided, except for those government approvals, if any, not required at the time of execution
of this Agreement.

 

(e)          Compliance
with Law. It will at all times comply with Applicable Laws in all material respects. Neither such Party, nor any of its employees,
officers, subcontractors, or consultants who have rendered services relating to the Licensed Products: (i) has ever been debarred
or is subject to debarment or convicted of a crime for which an entity or person could be debarred by the FDA (or subject to a
similar sanction of a Regulatory Authority) or (ii) has ever been under indictment for a crime for which a person or entity could
be so debarred.

 

8.2           Mutual
Covenants. Each Party hereby covenants to the other Party that during the CDOA Term:

 

(a)          all
employees and officers of such Party or its Affiliates working under this Agreement will be under the obligation to assign all
right, title and interest in and to their Inventions, whether or not patentable, if any, to such Party as the sole owner thereof,
and under the obligation to maintain as confidential the Confidential Information of such Party;

 

(b)          such
Party will perform its activities pursuant to this Agreement in compliance with good clinical practices and good manufacturing
practices, in each case as applicable under the Applicable Laws and regulations of the country and the state and local government
wherein such activities are conducted, and also with the standards in the pharmaceutical industry for the development and commercialization
of pharmaceutical products;

 

(c)          neither
Party will employ (or, to its knowledge, use any contractor or consultant that employs) any individual or entity debarred by the
FDA (or subject to a similar sanction of a Regulatory Authority), or, to its knowledge, any individual who or entity which is the
subject of an FDA debarment investigation or proceeding (or similar proceeding of a Regulatory Authority), in the conduct of its
activities under this Agreement, and each contractor or consultant used by a Party in connection with the conduct of clinical trials
under this Agreement will be subject to a covenant that is the same or substantially the same as the foregoing covenant;

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	-18-	 

     

    

 

(d)          neither
Party will, during the CDOA Term, practice or exploit the intellectual property licensed to such Party under this Agreement except
to the extent expressly permitted under the terms and conditions of this Agreement; and

 

(e)          neither
Party will, during the CDOA Term, grant any right or license to any Third Party relating to any of the intellectual property rights
it Controls which would conflict or interfere with any of the rights or licenses granted to the other Party hereunder.

 

8.3           KHK
Representations and Warranties. KHK represents and warrants to Medgenics that as of the CDOA
Effective Date:

 

(a)          KHK
Controls the KHK Patent Rights existing as of the CDOA Effective Date and is entitled to grant the rights and licenses specified
herein. The KHK Technology existing as of the CDOA Effective Date constitute all of the Patent Rights, Know-How and Inventions
Controlled by KHK as of the CDOA Effective Date that are necessary or useful to Develop, Manufacture and Commercialize the Licensed
Product. KHK has not previously assigned, transferred, conveyed or otherwise encumbered its right, title and interest in the KHK
Technology in a manner that conflicts with any rights granted to Medgenics hereunder.

 

(b)          To
the knowledge of KHK, there is no actual or threatened infringement of the KHK Patent Rights in the Field by any Third Party that
would adversely affect Medgenics’ rights under this Agreement.

 

(c)          To
the knowledge of KHK, the KHK Patent Rights existing as of the CDOA Effective Date are subsisting and are not invalid or unenforceable,
in whole or in part; there are no claims, judgments or settlements against or amounts with respect thereto owed by KHK or any of
its Affiliates relating to the KHK Patent Rights; and no claim or litigation has been brought or threatened by any Third Party
alleging, and KHK is not aware of any reasonable basis for a claim alleging that (i) the
KHK Patent Rights are invalid or unenforceable, (ii) the KHK
Patent Rights or the licensing or exploiting of the KHK Patent Rights violates, infringes or otherwise conflicts or interferes
with any intellectual property or proprietary right of any Third Party or (iii) any Third Party other than a KHK Licensor has any
right, title, or interest in, to, and under any KHK Patent Rights.

 

(d)          To
the knowledge of KHK, KHK is not in default, and to KHK’s
knowledge, none of the KHK Licensors is in default, with respect to a material obligation under, and neither such party has claimed
or has grounds upon which to claim that the other party is in default with respect to a material obligation under, any KHK In-License,
and KHK has not waived or allowed to lapse any of its rights under any KHK In-License, and no such rights have lapsed or otherwise
expired or been terminated.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	-19-	 

     

    

 

(e)          There
are no claims, judgments or settlements against or owed by KHK or its Affiliates or pending or threatened claims or litigation
relating to the KHK Technology.

 

8.4           KHK
Covenants. KHK covenants that during the CDOA Term:

 

(a)          KHK
will use Commercially Reasonable Efforts to fulfill its obligations under the KHK In-Licenses to the extent such obligations have
not been delegated to Medgenics and to the extent that failure to do so would materially adversely affect Medgenics or its rights
hereunder.

 

(b)          KHK
will not assign, transfer, convey or otherwise encumber its right, title and interest in the KHK Technology in a manner that conflicts
with any rights granted to Medgenics hereunder.

 

(c)          KHK
will not enter into any subsequent agreement with any KHK Licensor that modifies or amends any KHK In-License in any way that would
materially adversely affect Medgenics’ rights or economic
interest under this Agreement without Medgenics’ prior written
consent.

 

(d)          KHK
will not terminate any KHK In-License in whole or in part, directly or indirectly, without Medgenics’
prior written consent if such termination would materially affect Medgenics’
license granted hereunder; for clarity KHK may (i) terminate
any KHK In-License by acquiring all of the intellectual property licensed thereunder, or (ii) terminate
its obligation to make royalty and milestone payments by making a lump-sum payment, and KHK will promptly notify Medgenics after
the occurrence of each such event.

 

(e)          KHK
will furnish Medgenics with copies of all notices received by KHK relating to any alleged breach or default by KHK under any KHK
In-License within ***** after KHK’s receipt thereof and,
if KHK cannot or chooses not to cure or otherwise resolve any such alleged breach or default, KHK will so notify Medgenics within
***** thereafter.

 

8.5           Medgenics
Representations and Warranties. Medgenics represents and covenants to KHK that as of the CDOA Effective Date:

 

(a)          It
is not constrained by any existing agreements in providing complete disclosure to KHK concerning the Initial Development.

 

(b)          Its
facilities and those of its contractors, including without limitation any contract manufacturers, contract laboratories, contract
research organizations and clinical sites, are adequate to perform the Initial Development.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	-20-	 

     

    

 

(c)          It
will use commercially reasonable efforts to ensure that any contractors, including without limitation any contract manufacturers,
contract laboratories, contract research organizations, clinical sites, and clinical investigators, conducting the Signal Finding
Study will be, at all times during the CDOA Term, (i) in good professional standing; (ii) in possession of all requisite professional
licenses; (iii) fully qualified to conduct the Signal Finding Study; and (iv) fully experienced and knowledgeable with respect
to all matters pertaining to the Signal Finding Study.

 

(d)          Medgenics
Controls the Medgenics Patent Rights existing as of the CDOA Effective Date and is entitled to grant the rights and licenses specified
herein. The Medgenics Technology existing as of the CDOA Effective Date constitute all of the Patent Rights, Know-How and Inventions
Controlled by Medgenics as of the CDOA Effective Date that are necessary or useful to Develop, Manufacture and Commercialize the
Licensed Product. Medgenics has not previously assigned, transferred, conveyed or otherwise encumbered its right, title and interest
in the Medgenics Technology in a manner that conflicts with any rights granted to KHK hereunder.

 

(e)          To
the knowledge of Medgenics, there is no actual or threatened infringement of the Medgenics Patent Rights in the Field by any Third
Party that would adversely affect KHK’s rights under this
Agreement.

 

(f)          To
the knowledge of Medgenics, the Medgenics Patent Rights existing as of the CDOA Effective Date are subsisting and are not invalid
or unenforceable, in whole or in part; there are no claims, judgments or settlements against or amounts with respect thereto owed
by Medgenics or any of its Affiliates relating to the Medgenics Patent Rights; and no claim or litigation has been brought or threatened
by any Third Party alleging, and Medgenics is not aware of any reasonable basis for a claim alleging that (i) the
Medgenics Patent Rights are invalid or unenforceable or (ii) the
Medgenics Patent Rights or the licensing or exploiting of the Medgenics Patent Rights violates, infringes or otherwise conflicts
or interferes with any intellectual property or proprietary right of any Third Party, or (iii) any Third Party other than the Medgenics
Licensor has any right, title, or interest in, to, and under any Medgenics Patent Rights.

 

(g)          To
the knowledge of Medgenics, the Development activities set forth in the initial Development Plan do not infringe any third party
intellectual property rights.

 

(h)          To
the knowledge of Medgenics, Medgenics is not in default, and to Medgenics’
knowledge, the Medgenics Licensor is not in default, with respect to a material obligation under, and neither such party has claimed
or has grounds upon which to claim that the other party is in default with respect to a material obligation under, the Medgenics
In-License, and Medgenics has not waived or allowed to lapse any of its rights under any Medgenics In-License, and no such rights
have lapsed or otherwise expired or been terminated.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	-21-	 

     

    

 

(i)          There
are no claims, judgments or settlements against or owed by Medgenics or its Affiliates or pending or threatened claims or litigation
relating to the Medgenics Technology.

 

8.6           Medgenics
Covenants.

 

8.6.1        General.
Medgenics covenants that during the CDOA Term:

 

(a)          Medgenics
will not engage in any activities that use the KHK Technology in a manner that is outside the scope of the rights granted to it
hereunder.

 

(b)          All
of Medgenics’ activities related to its use of the KHK Technology
pursuant to this Agreement will comply with all Applicable Laws.

 

(c)          Medgenics
will use Commercially Reasonable Efforts to fulfill its obligations under the Medgenics In-License to the extent such obligations
have not been delegated to KHK and to the extent that failure to do so would materially adversely affect KHK or its rights hereunder.

 

(d)          Medgenics
will not assign, transfer, convey or otherwise encumber its right, title and interest in the Medgenics Technology in a manner that
conflicts with any rights granted to KHK hereunder.

 

(e)          Medgenics
will not enter into any subsequent agreement with the CHOP that modifies or amends the Medgenics In-License in any way that would
materially adversely affect KHK’s rights or economic interest
under this Agreement without KHK’s prior written consent.

 

(f)          Medgenics
will not terminate the Medgenics In-License in whole or in part, directly or indirectly, without KHK’s
prior written consent if such termination would materially affect KHK’s
license granted hereunder; for clarity Medgenics may (i) terminate
the Medgenics In-License by acquiring all of the intellectual property licensed thereunder, or (ii) terminate
its obligation to make royalty and milestone payments by making a lump-sum payment, and Medgenics will promptly notify KHK after
the occurrence of each such event.

 

(g)          Medgenics
will furnish KHK with copies of all notices received by Medgenics relating to any alleged breach or default by Medgenics under
the Medgenics In-License within ***** after Medgenics’ receipt
thereof and, if Medgenics cannot or chooses not to cure or otherwise resolve any such alleged breach or default, Medgenics will
so notify KHK within ***** thereafter.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	-22-	 

     

    

 

8.6.2           Debarment.
Neither Medgenics nor its Affiliates will employ (or, to its knowledge, use any contractor or consultant that employs) any individual
or entity debarred by the FDA (or subject to a similar sanction of a regulatory authority), or, to its knowledge, any individual
who or entity which is the subject of an FDA debarment investigation or proceeding (or similar proceeding of a regulatory authority),
in the conduct of its activities under this Agreement, and each contractor or consultant used by a Party in connection with the
conduct of clinical trials under this Agreement will be subject to a covenant that is the same or substantially the same as the
foregoing covenant. If, during the CDOA Term, Medgenics or any person employed or retained by it to perform the Initial Development:
(i) comes under investigation by the FDA for a debarment action or disqualification; (ii) is debarred or disqualified; or (iii)
engages in any conduct or activity that could lead to any of the above-mentioned disqualification or debarment actions, Medgenics
will immediately notify KHK of same and address the issue as mutually agreed upon by the Parties, provided that, if, following
good faith discussions, the Parties are unable to mutually agree on a resolution to address an issue described in subsections (i)-(iii)
above so that the Licensed Products are not adversely affected by such issue, then KHK may immediately terminate this Agreement
on written notice to Medgenics.

 

Article
9

LIMITATION ON LIABILITY; INDEMNIFICATION

 

9.1           NO
WARRANTY. The Parties acknowledge and agree that nothing in this Agreement (including, without limitation, any exhibits or
attachments hereto) will be construed as representing an estimate or projection of either (a) the extent to which Licensed Products
will be successfully Developed or Commercialized or (b) the anticipated sales or the actual value of any Licensed Product. NEITHER
PARTY MAKES ANY REPRESENTATION OR WARRANTY, EITHER EXPRESS OR IMPLIED, THAT IT WILL BE ABLE TO SUCCESSFULLY DEVELOP OR COMMERCIALIZE
ANY LICENSED PRODUCT OR, IF COMMERCIALIZED, THAT IT WILL ACHIEVE ANY PARTICULAR SALES LEVEL OF SUCH LICENSED PRODUCT(S). EXCEPT
AS OTHERWISE EXPRESSLY PROVIDED IN THIS AGREEMENT, NEITHER PARTY MAKES ANY REPRESENTATION OR EXTENDS ANY WARRANTY OF ANY KIND,
EITHER EXPRESS OR IMPLIED, TO THE OTHER PARTY WITH RESPECT TO ANY TECHNOLOGY OR OTHER SUBJECT MATTER OF THIS AGREEMENT AND HEREBY
DISCLAIMS ALL IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT WITH RESPECT TO ANY AND
ALL OF THE FOREGOING. EACH PARTY HEREBY DISCLAIMS ANY REPRESENTATION OR WARRANTY THAT THE DEVELOPMENT, MANUFACTURE OR COMMERCIALIZATION
OF ANY LICENSED PRODUCT UNDER THIS AGREEMENT WILL BE SUCCESSFUL. MEDGENICS ACKNOWLEDGES THAT THE MATERIALS ARE IN THE EXPERIMENTAL
STAGE AND MAY HAVE HAZARDOUS PROPERTIES AND ARE PROVIDED BY KHK “AS
IS”. KHK MAKES NO REPRESENTATION AND EXTENDS NO WARRANTY
OF ANY KIND FOR THE MATERIALS, EITHER EXPRESS OR IMPLIED, EITHER IN FACT OR BY OPERATION OF LAW, STATUTORY OR OTHERWISE AND KHK
SPECIFICALLY DISCLAIMS ANY IMPLIED WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR NON-INFRINGEMENT.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	-23-	 

     

    

 

9.2           LIMITATION
ON LIABILITY. EXCEPT FOR BREACHES OF A PARTY’S CONFIDENTIALITY
OBLIGATIONS HEREUNDER, OR WITH RESPECT TO ANY CLAIMS SUBJECT TO INDEMNIFICATION HEREUNDER NEITHER PARTY WILL BE LIABLE TO THE OTHER
WITH RESPECT TO ANY SUBJECT MATTER OF THIS AGREEMENT, WHETHER UNDER ANY CONTRACT, NEGLIGENCE, STRICT LIABILITY OR OTHER LEGAL OR
EQUITABLE THEORY, FOR ANY INCIDENTAL, INDIRECT, SPECIAL, EXEMPLARY, PUNITIVE, MULTIPLE, OR CONSEQUENTIAL DAMAGES (INCLUDING WITHOUT
LIMITATION LOST PROFITS, LOSS OF USE, DAMAGE TO GOODWILL, OR LOSS OF BUSINESS).

 

9.3           Medgenics
Indemnity. Medgenics will indemnify, defend and hold harmless KHK and its Affiliates, and their respective officers, directors,
employees, agents, licensors, and their respective successors, heirs and assigns and representatives (the “KHK
Indemnitees”), from and against any and all damages,
losses, liabilities, costs (including without limitation reasonable legal expenses, costs of litigation and reasonable attorney’s
fees) or judgments of any kind (collectively “Losses”),
arising out of any Third Party claim, suit or proceeding, whether for money or equitable relief, (each a “Third
Party Claim”) to the extent arising out of or relating
to, directly or indirectly: (a) the negligence, recklessness or wrongful intentional acts or omissions of Medgenics or its Affiliates
or their respective directors, officers, employees, contractors, and agents, in connection with Medgenics’
performance of its obligations or exercise of its rights under this Agreement during the CDOA Term; (b) any breach by Medgenics
of this Agreement, including without limitation any representation, warranty, or covenant set forth in this Agreement, during the
CDOA Term; or (c) the use, transfer, importation or exportation,
manufacture, labeling, handling or storage, or use or disposal of, or exposure to the Materials, or the conduct of the Initial
Development, including without limitation for each of clauses (a), (b) and (c) above, claims and threatened claims based on (i)
product liability, bodily injury, risk of bodily injury, death or property damage and (ii) the failure to comply with Applicable
Law except in any such case for Losses and Third Party Claims to the extent reasonably attributable to any KHK Indemnitee having
committed an act or acts of negligence, recklessness or willful misconduct. In addition, Medgenics will indemnify, hold harmless,
and defend the KHK Indemnitees against any and all Losses to the extent arising out of Third Party Claims related to, directly
or indirectly, any activities performed by or on behalf of Medgenics or a KHK Authorized CRO and CMO, if, pursuant to Section 2.7.2,
KHK sublicenses its rights under such KHK Technology to Medgenics or a KHK Authorized CRO and CMO.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	-24-	 

     

    

 

9.4           Indemnity
for Material Safety Issue. Without limiting any remedy otherwise available, or the indemnity obligations contained in Section
9.3 (but only to the extent not otherwise covered by Section 9.3), if, pursuant to Section 7.4, KHK believes that there is a Material
Safety Issue and wishes to terminate this Agreement as a result, but Medgenics does not agree and elects instead to continue the
Signal Finding Study, then Medgenics will defend, indemnify and hold harmless the KHK Indemnitees against any and all any Losses
arising from any claim, suit or proceeding brought either directly by KHK or its Affiliates or by any Third Party, in each case,
to the extent that such claim, suit or proceeding or related Losses arise out of or relate to, directly or indirectly, any activities
performed by or on behalf of Medgenics in connection with the Signal Finding Study following Medgenics’
decision to continue the Signal Finding Study after KHK notifies Medgenics pursuant to Section 2.3.4 that KHK believes the Signal
Finding Study should be terminated.

 

9.5           KHK
Indemnity. KHK will indemnify, defend and hold harmless Medgenics and its Affiliates, and their respective officers, directors,
employees, agents, licensors, and their respective successors, heirs and assigns and representatives (the “Medgenics
Indemnitees”), from and against any and all Losses
arising out of any Third Party Claim to the extent arising out of or relating to, directly or indirectly: (a) the negligence, recklessness
or wrongful intentional acts or omissions of KHK or its Affiliates or their respective directors, officers, employees, contractors
and agents, in connection with KHK’s performance of its obligations
or exercise of its rights under this Agreement during the CDOA Term; or (b) any breach by KHK of this Agreement, including without
limitation any representation, warranty, or covenant set forth in this Agreement, during the CDOA Term, including without limitation
for each of clauses (a) and (b) above, claims and threatened claims based on the failure to comply with Applicable Law; except
in any such case for Losses and Third Party Claims to the extent reasonably attributable to any Medgenics Indemnitee having committed
an act or acts of negligence, recklessness or willful misconduct.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	-25-	 

     

    

 

9.6           Indemnification
Procedure. A claim to which indemnification applies under Section 9.3, 9.4 or 9.5 will be referred to herein as an “Indemnification
Claim”. If any KHK Indemnitee or Medgenics Indemnitee
(either, an “Indemnitee”)
intends to claim indemnification under this Article 9, the Indemnitee will notify the other Party (the “Indemnitor”)
in writing promptly upon becoming aware of any claim that may be an Indemnification Claim (it being understood and agreed, however,
that the failure by an Indemnitee to give such notice will not relieve the Indemnitor of its indemnification obligation under this
Agreement except and only to the extent that the Indemnitor is actually prejudiced as a result of such failure to give notice).
The Indemnitor will have the right to assume and control the defense of the Indemnification Claim at its own expense with counsel
selected by the Indemnitor and reasonably acceptable to the Indemnitee; provided, however, that an Indemnitee will have the right
to retain its own counsel, with the fees and expenses to be paid by the Indemnitee, if representation of such Indemnitee by the
counsel retained by the Indemnitor would be inappropriate due to actual or potential differing interests between such Indemnitee
and any other party represented by such counsel in such proceedings. If the Indemnitor does not assume the defense of the Indemnification
Claim as described in this Section 9.6, the Indemnitee may defend the Indemnification Claim, but will have no obligation to do
so. The Indemnitee will not settle or compromise the Indemnification Claim without the prior written consent of the Indemnitor,
and the Indemnitor will not settle or compromise the Indemnification Claim in any manner which would have an adverse effect on
the Indemnitee’s interests (including without limitation
any rights under this Agreement or the scope or enforceability of the either Party’s
intellectual property, or Confidential Information or patent or other rights licensed to Medgenics by KHK hereunder), without the
prior written consent of the Indemnitee, which consent, in each case, will not be unreasonably withheld, conditioned or delayed.
The Indemnitee will reasonably cooperate with the Indemnitor at the Indemnitor’s
expense and will make available to the Indemnitor all pertinent information under the control of the Indemnitee, which information
will be considered Confidential Information and subject to Article 5.

 

9.7           Insurance.
Medgenics will maintain insurance with respect to its activities to be performed in connection with the Initial Development. Such
insurance will be in such amounts and subject to such deductibles as the Parties may agree based upon standards prevailing in the
industry at the time.

 

Article
10

MISCELLANEOUS

 

10.1         Entire
Agreement. This Agreement, together with the Exhibits attached hereto constitutes the entire agreement between the Parties
relating to the Materials, and supersedes all prior and contemporaneous negotiations and discussions between the Parties concerning
its subject matter, including, without limitation, the Material Transfer Agreement. The Exhibits hereto are an integral part of
this Agreement and are deemed incorporated by reference herein.

 

10.2         Modification
and Waiver. This Agreement may be amended or waived only in a writing signed by an authorized representative of the Party against
whom enforcement of the Agreement is sought.

 

10.3         Notices.
Any consent or notice required to be given or made under this Agreement by one of the Parties to the other will be in writing and
(a) delivered by hand, (b) sent by internationally recognized overnight delivery service or (c) sent by facsimile transmission
and confirmed by sender by prepaid, registered or certified mail letter, and will be deemed to have been properly served to the
addressee upon delivery, in any event to the following addresses:

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	-26-	 

     

    

 

For Medgenics:

Medgenics, Inc.

435 Devon Park Drive - Bldg 700

Wayne, PA 19087, USA

Attention: Scott Applebaum, Chief Legal Officer

 

For KHK:

KYOWA HAKKO KIRIN CO., LTD.

1-6-1, Otemachi Chiyoda-ku

Tokyo 100-8185, Japan

Attention: Director of Business Development Department

 

or to such other address as the Party to whom notice is to be given
may have furnished to the other Party in writing in accordance herewith. Any such notice will be deemed to have been given: (a)
if personally delivered, when delivered; (b) if sent by internationally-recognized overnight courier, on the Business Day of the
sender during which the sender delivers the notice to the courier; or (c) if sent by facsimile, when all pages of the notice are
successfully transmitted (as shown by a report generated by the sender’s facsimile machine) during a Business Day of the
sender.         

 

10.4         Severability.
If any provision hereof should be held invalid, illegal or unenforceable in any respect in any jurisdiction, the Parties will substitute,
by mutual consent, valid provisions for such invalid, illegal or unenforceable provisions, which valid provisions in their economic
effect are sufficiently similar to the invalid, illegal or unenforceable provisions that it can be reasonably assumed that the
Parties would have entered into this Agreement with such valid provisions. In case such valid provisions cannot be agreed upon,
the invalidity, illegality or unenforceability of one (1) or several provisions of this Agreement will not affect the validity
of this Agreement as a whole, unless the invalid, illegal or unenforceable provisions are of such essential importance to this
Agreement that it is to be reasonably assumed that the Parties would not have entered into this Agreement without the invalid,
illegal or unenforceable provisions.

 

10.5         Independent
Contractors. It is understood and agreed that the relationship between the Parties is that of independent contractors and that
nothing in this Agreement will be construed as authorization for either KHK or Medgenics to act as agent for the other. Nothing
herein contained will be deemed to create an employment, agency, joint venture or partnership relationship between the Parties
or any of their agents or employees for any purpose, including tax purposes, or to create any other legal arrangement that would
impose liability upon one Party for the act or failure to act of the other Party. Neither Party will have any express or implied
power to enter into any contracts or commitments or to incur any liabilities in the name of, or on behalf of, the other Party,
or to bind the other Party in any respect whatsoever.

 

10.6         No
Third Party Beneficiaries. No person or entity other than Medgenics, KHK and their respective Affiliates and permitted assignees
hereunder will be deemed an intended beneficiary hereunder or have any right to enforce any obligation of this Agreement.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	-27-	 

     

    

 

10.7         Further
Assurances. Each Party hereto agrees to execute, acknowledge and/or deliver such further instruments, and to do all other acts,
as may be necessary or appropriate in order to carry out the purposes and intent of this Agreement.

 

10.8         No
Strict Construction. This Agreement has been prepared jointly and will not be strictly construed against either Party.

 

10.9         Headings.
The captions or headings of the sections or other subdivisions hereof are inserted only as a matter of convenience or for reference
and will have no effect on the meaning of the provisions hereof.

 

10.10       No
Implied Waivers; Rights Cumulative. No failure on the part of KHK or Medgenics to exercise, and no delay in exercising, any
right, power, remedy or privilege under this Agreement, or provided by statute or at law or in equity or otherwise, will impair,
prejudice or constitute a waiver of any such right, power, remedy or privilege or be construed as a waiver of any breach of this
Agreement or as an acquiescence therein, nor will any single or partial exercise of any such right, power, remedy or privilege
preclude any other or further exercise thereof or the exercise of any other right, power, remedy or privilege.

 

10.11       Counterparts.
This Agreement may be executed in two or more counterparts, each of which will be deemed an original but all of which together
will constitute one and the same instrument. Delivery of executed copies (including by PDF) of this Agreement or counterparts thereof
by facsimile, email or other electronic means will have the same legal validity as delivery of ink-signed copies.

 

10.12       Governing
Law. This Agreement will be construed and the respective rights of the Parties determined according to the substantive laws
of the State of New York, New York, U.S.A., notwithstanding the provisions governing conflict of laws of any jurisdiction to the
contrary.

 

10.13      Dispute
Resolution.  

 

10.13.1         Escalation.
With respect to any disputes between the Parties concerning this Agreement, the dispute will be submitted to escalating levels
of Medgenics and KHK senior management for review. If the dispute cannot be resolved despite such escalation, then the matter will
be referred to the Chief Executive Officer of Medgenics (or an executive of Medgenics designated by such Chief Executive Officer)
and the Chief Executive Officer of KHK (or an executive of KHK designated by such Chief Executive Officer) (the “Executive
Officers”) to be resolved by negotiation
in good faith as soon as practicable but in no event later than thirty (30) days after referral. Such resolution, if any, by the
Executive Officers will be final and binding on the Parties. If the Executive Officers are unable to resolve such dispute within
such thirty (30) day period, each Party may submit such dispute for arbitration pursuant to Section 10.13.2.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	-28-	 

     

    

 

10.13.2         Arbitration.

 

(a)          If
any dispute will arise between KHK and Medgenics in connection with or relating to this Agreement and is referred for arbitration
pursuant to Section 10.13.1, then such dispute will be resolved exclusively by and through an arbitration proceeding to be conducted
under the auspices of, and pursuant to, the Commercial Rules of the International Chamber of Commerce (together with any successor
organization thereto, the “ICC”)
in New York, New York, U.S.A.. Such arbitration proceeding will be conducted in the English language applying the law provided
in Section 10.12 and in such an expedited manner as is then permitted by the ICC’s
commercial arbitration rules. The Parties also agree to take reasonable discovery, with reasonableness to be determined by the
arbitrators. Each of the foregoing agreements to arbitrate all disputes and the results, determinations, findings, judgments and
awards rendered through such arbitration will be final, non-appealable and legally binding on KHK and Medgenics and may be entered
and enforced by any court or tribunal of competent jurisdiction. Notwithstanding anything to the contrary in this Section 10.13,
a Party may seek injunctive relief in any court of competent jurisdiction.

 

(b)          Any
arbitration proceeding will be initiated by written notice from either KHK or Medgenics to the other Party. The arbitration will
be conducted before a panel of three (3) arbitrators. Each of KHK and Medgenics will have the right to select one (1) arbitrator.
The third arbitrator will be selected by the mutual agreement of the arbitrators appointed by the Parties. The Party initiating
the arbitration proceeding will appoint its arbitrator within ten (10) days following service of the demand for arbitration to
the other Party, who will in turn appoint its arbitrator within thirty (30) days of receiving service of the demand. The two appointed
arbitrators will agree upon an arbitrator within thirty (30) days of the date of the appointment by the Parties of the second arbitrator.
If either Party or their appointees fail to appoint an arbitrator within the specified time period, the ICC will exercise its powers
pursuant to Article 9 of the ICC Rules of Arbitration to appoint such arbitrator. The ICC’s
appointment will be binding on the Parties. Each arbitrator will be an attorney in good standing in the Bar of New York and experienced
in commercial disputes involving pharmaceutical companies. Time is of the essence as regards this arbitration procedure, and KHK
and Medgenics will instruct the arbitrators to render their decision within ninety (90) days of the arbitration’s
completion. The cost of the arbitration (including, without limitation, reasonable attorneys’
fees, expenses and disbursements) will be borne as the arbitrators will decide; otherwise such costs (including, without limitation,
the prevailing Party’s reasonable attorneys’
and accountants’ fees, expenses and disbursements) will be
borne by the Party against which the judgment of the arbitrator is to be enforced.

 

10.14         Assignment.
Each Party may, without the consent of the other Party, assign or transfer all of its rights and obligations hereunder to an Affiliate,
or to its successor in interest by reason of merger or consolidation or sale of all or substantially all of the assets of such
Party relating to the subject matter of this Agreement. Any assignment or transfer in violation of the foregoing will be null and
void and wholly invalid. This Agreement will inure to the benefit of and be binding on the Parties’
successors and assigns.

 

[Signature Page Follows]

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	-29-	 

     

    

  

IN WITNESS WHEREOF, the
Parties have caused this Agreement to be executed by their respective duly authorized officers as of the CDOA Effective Date.

 

	Kyowa Hakko Kirin Co., Ltd.	 	Medgenics, Inc.
	 	 	 
	By:	/s/ Nobuo Hanai, Ph.D.	 	By:	/s/ Michael F. Cola
	 	 	 	 	 
	Name:	Nobuo Hanai, Ph. D.	 	Name:	Michael F. Cola
	 	 	 	 	 
	Title:	President and CEO	 	Title:	President and CEO

 

[Signature Page to Clinical Development and
Option Agreement]

 

     

     

    

 

EXHIBIT A

STUDY PROTOCOL

 

See Attached

 

     

     

    

 

Information in this document is the property
of Medgenics, Inc. and is confidential. Neither the document nor the information contained herein should be disclosed or reproduced
without written authorization from Medgenics, Inc.

 

 

	Protocol No.:	MDGN-XXXX
	Protocol Titles:	
        Phase IB Escalating Dose, Open-label, Signal Finding
        Study to Evaluate the Safety, Tolerability, and Short Term Efficacy of the anti-LIGHT monoclonal KHK252067 in Adolescents (12-18
        years of age) with Crohn’s disease resistant to anti-TNF alpha

        mo oclonal antibodies , with and without loss of function
        mutations in decoy receptor 3 (DcR3) (anti- LIGHT in anti-TNFalpha resistant
        Crohn’s disease (TRaCk LIGHT).

	Drug:	KHK252067
	Sponsor:	Medgenics, Inc

 

*****

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	A-1	 

     

    

 

ii                                  Protocol No.MDGN-XXXX
2015

 

Title:                                  Phase IB Escalating Dose, Open-label,
Signal Finding Study to Evaluate the Safety, Tolerability, and Short Term Efficacy of the anti-LIGHT monoclonal KHK252067 in Adolescents
(12-18 years of age) with Crohn’s disease resistant to anti-TNF alpha monoclonal antibodies , with and without loss of function
mutations in decoy receptor 3 (DcR3) (anti- LIGHT in anti-TNFalpha resistant Crohn’s disease.

 

Short Title                       TRaCk LIGHT (TNFalpha Resistant Chrohn’s disease
Treated with anti-LIGHT MAb

 

	Protocol Number:	MDGN-XXX
	 	 
	Drug:	KHK252067, human anti-LIGHT IgG4
	 	 
	FDA IND No.	XXXXX
	 	 
	Sponsor	Medgenics, Inc
	 	
        435 Devon Park Drive

        Wayne, PA 19087 (610)

        254-4201

	 	 
	Sponsor Medical	 
	Monitor	Garry A. Neil, MD
	 	CSO Medgenics, Inc
	 	 
	Principal Investigator	Robert Baldassano, MD 
	 	
        Professor & Head IBD Units

        Children’s Hospital of Philadelphia

	 	 
	Date of Issue	7/31/2015-V1.0
	 	4/14/2016 – V2.0

 

*****

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	A-2	 

     

    

 

EXHIBIT B

PLAN A LICENSE AGREEMENT

 

See Attached

 

     

     

    

 

Execution Version

 

Portions of this exhibit have been omitted
and filed separately with the Secretary of the Securities and Exchange Commission (the “Commission”) pursuant to an
application for confidential treatment filed with the Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934,
as amended. Such portions are marked as indicated below.

 

LICENSE AGREEMENT

 

by and between

 

KYOWA HAKKO KIRIN CO., LTD.

 

and

 

MEDGENICS, INC.

 

    	 	B-1	 

     

    

  

	Article 1. DEFINITIONS	3
	 	 
	Article 2. EFFECTIVENESS OF THIS AGREEMENT	19
	 	 
	Article 3. GOVERNANCE	19
	 	 
	Article 4. DEVELOPMENT	24
	 	 
	Article 5. COMMERCIALIZATION	30
	 	 
	Article 6. DILIGENCE	33
	 	 
	Article 7. LICENSES	35
	 	 
	Article 8. FINANCIAL PROVISIONS	39
	 	 
	Article 9. INTELLECTUAL PROPERTY	48
	 	 
	Article 10. CONFIDENTIALITY	57
	 	 
	Article 11. TERM AND TERMINATION	59
	 	 
	Article 12. REPRESENTATIONS, WARRANTIES, AND COVENANTS; DISCLAIMERS; INDEMNIFICATION	67
	 	 
	Article 13. MISCELLANEOUS PROVISIONS	74

 

Schedules

 

Schedule 1.7 – Amino Acid Sequence of Anti-LIGHT mAb

Schedule 1.16 – Commercialization Costs

Schedule 1.38 – FTE Rates

Schedule 1.43 – KHK In-Licenses

Schedule 1.47 – KHK Patent Rights

Schedule 1.58 – Medgenics In-License

Schedule 1.62 – Medgenics Patent Rights

Schedule 4.2.1 – Initial Development Plan

 

    	 	B-2	 

     

    

 

LICENSE AGREEMENT

 

This License Agreement
(this “Agreement”), effective as of the Effective Date (as defined in Section 2.1), is by and
between Kyowa Hakko Kirin Co., Ltd., a company organized and existing under the laws of the Japan and having its principal office
at 1-6-1, Otemachi, Chiyoda-ku, Tokyo 100-8185, Japan (“KHK”), and Medgenics, Inc., having its address
at 435 Devon Park Drive, Building 700, Wayne, PA 19087, U.S.A. (“Medgenics”). KHK and Medgenics may each
be referred to herein individually as a “Party” and collectively as the “Parties.”

 

INTRODUCTION

 

WHEREAS, the Parties have
entered into the Clinical Development and Option Agreement, effective as of June 6, 2016 (the “Clinical Development
and Option Agreement”); and

 

WHEREAS, pursuant to the
Clinical Development and Option Agreement, KHK granted Medgenics the right to conduct the Initial Development (as defined in the
Clinical Development and Option Agreement) with respect to Anti-LIGHT mAb (as defined in Section 1.7); and

 

WHEREAS, pursuant to the
Clinical Development and Option Agreement, KHK granted Medgenics an option to obtain an exclusive license to Develop and Commercialize
products containing Anti-LIGHT mAb at KHK’s election either under the terms and conditions of this Agreement (the “Plan
A Election”) or under the terms and conditions of the license agreement attached to Exhibit C to the Clinical
Development and Option Agreement (the “Plan B Election”); and

 

WHEREAS, this Agreement
will become fully effective in accordance with Section 2.1 of this Agreement only upon KHK making the Plan A Election pursuant
to the terms and conditions of the Clinical Development and Option Agreement; and

 

WHEREAS, this Agreement
will not become effective and be rendered null and void in accordance with Section 2.2 of this Agreement.

 

NOW, THEREFORE, in consideration
of the mutual promises and covenants set forth below and other good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the Parties hereby agree as follows:

 

Article
1.

DEFINITIONS

 

When used in this Agreement,
each of the following terms will have the meanings set forth in this Article 1:

 

1.1           “Accounting
Standards” means with respect to a Party, as applicable, (a) United States generally accepted accounting principles
(“GAAP”), (b) Japanese generally accepted accounting standards, or (c) International Financial Reporting
Standards, in each case consistently applied.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-3	 

     

    

 

1.2           “Acquirer
Intellectual Property” means the Patent Rights and Know-How owned or controlled by a Third Party acquirer of Medgenics
or KHK, as the case may be, immediately prior to a Change of Control transaction, and Inventions thereto following the effective
date of such Change of Control.

 

1.3           “Administrative
Contact” means any contact to or from a Regulatory Authority that is general or administrative in nature (e.g., notification
by a Regulatory Authority of the assignment of a new reviewer or a notification of a new address or new contact information).

 

1.4           “Affiliate”
means, with respect to any person or entity, any other person or entity which controls, is controlled by, or is under common control
with such person or entity. A person or entity will be regarded as in control of another entity if it owns or controls more than
fifty percent (50%) of the equity securities of the subject entity entitled to vote in the election of directors (or, in the case
of an entity that is not a corporation, for the election of the corresponding managing authority).

 

1.5           “Allowable
Expenses” means, with respect to Profit-Share Products and each Contract Quarter, all FTE Costs and Out-of-Pocket
Costs incurred by Medgenics or its Related Parties that are specifically identifiable and allocable to the Commercialization of
such Profit-Share Products in the Field in the Territory, and Manufacture of such Profit-Share Products for Commercialization,
during the applicable Contract Quarter, including such FTE Costs and Out-of-Pocket Costs which are: (a) Manufacturing Costs; (b)
Commercialization Costs; and (c) Third Party Technology Costs, in each case determined from the books and records of Medgenics
or its Related Parties maintained in accordance with Accounting Standards and in each case of (a)-(c) as are specifically identifiable
and allocable to the Commercialization of such Profit-Share Products in the Field in the Territory during the applicable Contract
Quarter. For clarity, no milestone payment made to KHK or its Affiliates pursuant to Section 8.3 will be an Allowable Expense.
For purposes of clarity, it is understood that there will be no double-counting of expenses within the definition of Allowable
Expenses.

 

1.6           “Applicable
Law” means the laws, rules and regulations, including without limitation any rules, regulations, guidelines or other
requirements of the Regulatory Authorities applicable to the Development, Manufacturing or Commercialization of Licensed Products
or other activities conducted by the Parties under this Agreement, that may be in effect from time to time in the applicable territory.

 

1.7           “Anti-LIGHT
mAb” means the fully human monoclonal antibody targeting LIGHT (TNFSF14) consisting of the amino acid
sequence set forth on Schedule 1.7.

 

1.8           “Bankruptcy
Code” means Title 11, United States Code, as amended, or analogous provisions of Applicable Law outside the United
States.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-4	 

     

    

 

1.9           “Biosimilar”
means, with respect to a reference brand biologic product and a particular jurisdiction, a biologic product: (a) that is highly
similar to such reference brand biologic product notwithstanding minor differences in clinically inactive components; (b) has no
clinically meaningful differences from such reference brand biologic product in terms of safety, purity and potency; and (c) for
which a Biosimilar Application is approved by the relevant Regulatory Authority of such jurisdiction. Notwithstanding anything
to the contrary in this Agreement, a “Biosimilar” does not include any biologic product sold under a BLA or approved
Biosimilar Application of any Party or any of its Related Parties or manufactured or produced by or on behalf of a Party or any
of its Related Parties.

 

1.10         “Biosimilar
Application” means a Regulatory Approval Application for a product claimed to be biosimilar or interchangeable to
any Licensed Product, or otherwise relying on the approval of such Licensed Product, in each case in accordance with Applicable
Law in the jurisdiction in which the product is sought to be marketed and sold.

 

1.11         “BLA”
means a Biologics License Application filed with FDA or the equivalent thereof filed with any other Regulatory Authority.

 

1.12         “BMS”
means Bristol-Myers Squibb Company.

 

1.13         “Business
Day” means, with respect to KHK, a KHK Business Day, and, with respect to Medgenics, a Medgenics Business Day.

 

1.14         “Change
of Control” means, with respect to a Party, (a) a merger or consolidation of such Party with a Third Party which
results in the voting securities of such Party outstanding immediately prior thereto ceasing to represent at least fifty percent
(50%) of the combined voting power of the surviving entity immediately after such merger or consolidation, (b) except in the case
of a bona fide equity financing in which a Party issues new shares of its capital stock, a transaction or series of related transactions
in which a Third Party, together with its Affiliates, becomes the beneficial owner of fifty percent (50%) or more of the combined
voting power of the outstanding securities of such Party, or (c) the sale or other transfer to a Third Party of all or substantially
all of such Party’s business to which the subject matter of this Agreement relates.

 

1.15         “Commercialization”
means importing, exporting, marketing, promoting, distributing, offering for sale and selling a Licensed Product and, solely with
respect to Sections 7.5.1 and 7.5.2, a Competing Product in the Field and will include activities required to fulfill
ongoing post-approval regulatory obligations, including adverse event reporting and sales force training but excluding any Phase
4 Clinical Trial (as defined in Section 1.26). When used as a verb, “Commercialize” will mean
to engage in Commercialization.

 

1.16         “Commercialization
Costs” means all costs and expenses, including FTE Costs and Out-of-Pocket Costs, incurred by or on behalf of Medgenics
or its Related Parties in accordance with this Agreement and attributable to, or reasonably allocable to, the Commercialization
of the Licensed Products in the Field in the Territory, including marketing costs, sales costs, distribution costs, importing and
exporting costs, Phase 5 Clinical Trial costs, insurance costs incurred in connection with Commercialization activities, medical
affairs costs and certain general and administrative costs (but excluding Development Costs) as further defined in Schedule
1.16. In this Agreement, “Phase 5 Clinical Trial” means a post-registration clinical trial that is
not required as a condition to, or for the maintenance of, any Regulatory Approval or pricing and/or reimbursement approval for
a Licensed Product.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-5	 

     

    

 

1.17         “Commercialization
Party” means the Party responsible for Commercialization of a Licensed Product in a jurisdiction under this Agreement.

 

1.18         “Commercially
Reasonable Efforts” means, with respect to a Party, the carrying out of obligations in a diligent and sustained manner
using such effort and employing such resources as would normally be exerted or employed by a similarly situated biopharmaceutical
company for a product of similar commercial or strategic importance, and at a similar stage of its product life, based on conditions
then prevailing, taking into consideration safety and efficacy, development costs, the anticipated prescription label, the nature
of the Licensed Product, the clinical setting in which it is expected to be used and all other relevant factors. Commercially Reasonable
Efforts will be determined on a country-by-country basis.

 

1.19         “Competing
Product” means *****, other than a Licensed Product, *****.

 

1.20         “Confidential
Information” means, with respect to each Party, proprietary data or information of such Party or its Affiliates or
sublicensees, including, without limitation, (a) with respect to KHK, all KHK Technology, and, with respect to Medgenics, all Medgenics
Technology, (b) any information designated as Confidential Information of such Party hereunder, in all cases that is identified
as confidential either in writing or orally, provided that any orally disclosed information is described in reasonable detail in
a written notice sent by the Disclosing Party to the Receiving Party within thirty (30) days of the oral disclosure requesting
that such information be treated as Confidential Information hereunder, and (c) all information that is manifestly confidential,
whether or not marked as such.

 

1.21         “Contract
Quarters” means the successive three (3) month periods in each Contract Year ending on March 31, June 30, September
30 or December 31.

 

1.22         “Contract
Year” means the twelve (12) month period beginning on January 1 and ending on December 31 of each calendar year,
provided, however, that the first Contract Year will be the period of time beginning on the Effective Date and ending on December
31, 2016. Each Contract Year, except the first Contract Year, will be divided into four (4) Contract Quarters.

 

1.23         “Control”
or “Controlled” means with respect to any (a) material, item of information, method, data or other Know-How,
or (b) intellectual property right, the possession (whether by ownership or license, other than pursuant to this Agreement) by
the referenced Party or its Affiliates of the ability to grant to the other Party access and/or a license as provided herein under
such item or right without violating the terms of any agreement or other arrangement with any Third Party existing before or after
the Effective Date.

 

1.24         “Data
Exclusivity Period” means, with respect to a particular jurisdiction, the time period of legal protection and confidential
treatment provided for clinical test data required to be submitted to a Regulatory Authority for such jurisdiction in order to
demonstrate safety and efficacy of a new drug or biologic, and all similar protections on such clinical test data intended to prevent
generic drug manufacturers or biosimilar manufacturers from relying on this data in their own Biosimilar applications.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-6	 

     

    

 

1.25         “Development”
means, with respect to a Licensed Product and, solely with respect to Sections 7.5.1 and 7.5.2, a Competing Product
in the Field, non-clinical and clinical drug development activities performed on or after the Effective Date, including without
limitation the conduct of clinical trials, test method development, toxicology, pharmacology, pharmacokinetics formulation, data
management, statistical analysis and report writing and clinical studies, and regulatory affairs and all activities associated
with obtaining and maintaining Regulatory Approvals. When used as a verb, “Develop” means to engage in Development.

 

1.26         “Development
Costs” means all costs and expenses, including FTE Costs and Out-of-Pocket Costs, incurred by or on behalf of a Party
in accordance with this Agreement and attributable to, or reasonably allocable to, the Development of the Licensed Products in
the Field in the Territory and European Union and that are materially consistent, as applicable, with the Development Plan, including
costs and expenses for Regulatory Approvals and pricing and/or reimbursement approvals, and costs incurred after Regulatory Approval,
including Phase 4 Clinical Trial costs, costs of non-clinical studies, costs of clinical studies for additional Indications in
the Field, insurance costs incurred in connection with Development activities (but excluding costs that are allocable to Commercialization
Costs and the costs of general company management, financial, legal or business development personnel). Development Costs will
not include any costs incurred by either Party prior to the Effective Date, including, without limitation, costs for purchasing
raw materials, for manufacturing clinical supplies of Licensed Product or for any labeling or packaging materials, whether or not
such raw materials, clinical supplies or labeling or packaging materials are used by the Parties for Development activities after
the Effective Date. In this Agreement, “Phase 4 Clinical Trial” means a post-registration clinical trial
or post-marketing surveillance study performed in accordance with Applicable Laws and required as a condition to, or for the maintenance
of, any Regulatory Approval or pricing and/or reimbursement approval for a Licensed Product.

 

1.27         “Development
Plan” means (a) the written comprehensive plan for (i) the Development of any Licensed Product in the Field
in the Territory and the European Union, including, but not limited to, activities designed to generate the preclinical, process
development/manufacturing scale-up, clinical and regulatory information required for filing Regulatory Approval Applications in
the Territory and the European Union and (ii) the preparation and submission of related Regulatory Approval Applications in
the Territory and the European Union and (b) an annual budget for Development Costs setting forth both internal and external resources
and expenses for the then-current Contract Year.

 

1.28         “EMA”
means the European Medicines Agency and any successor agency having substantially the same functions.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-7	 

     

    

 

1.29         “European
Union” means all countries over which EMA has jurisdiction from time to time and all countries that exit the jurisdiction
of the EMA from time to time.

 

1.30         “Executive
Officers” means the Chief Executive Officer of Medgenics (or an executive of Medgenics designated by such Chief Executive
Officer) and the Chief Executive Officer of KHK (or an executive of KHK designated by such Chief Executive Officer).

 

1.31         “Fair
Market Value” means (a) with respect to investment by a Third Party in exchange for equity securities of Medgenics,
(i) for so long as Medgenics’ common stock is publicly traded on a securities exchange, the volume weighted average closing
price of a share of Medgenics’ common stock on the principal exchange on which such stock is then trading for the ten (10)
trading days ending on the date that is twenty (20) trading days on such exchange prior to the first public announcement of such
equity investment, and (ii) if Medgenics’ common stock is no longer publicly traded on a securities exchange, the fair market
value of a share of common stock of Medgenics as of the date of closing such investment as determined in good faith by the board
of directors of Medgenics, taking into account such factors and for such time period as the board of directors of Medgenics reasonably
deems is appropriate, and agreed to by KHK, such agreement not to be unreasonably withheld, delayed, or conditioned, and (b) with
respect to any non-cash consideration (other than equity securities), the fair market value
of such consideration as determined in good faith by the board of directors of Medgenics and agreed to by KHK, such agreement not
to be unreasonably withheld, delayed, or conditioned.

 

1.32         “FD&C
Act” means the US Federal Food, Drug, and Cosmetic Act, as amended from time to time (21 U.S.C. Section 301 et seq.),
together with any rules and regulations promulgated thereunder.

 

1.33         “FDA”
means the United States Food and Drug Administration, or a successor agency in the United States with responsibilities comparable
to those of the United States Food and Drug Administration.

 

1.34         “Field”
means treatment, prevention, and diagnosis ***** of pediatric (18 and below) onset rare and orphan disease ***** Crohn Disease,
Ulcerative Colitis, ***** Juvenile Idiopathic Arthritis, Psoriasis, *****. Pediatric onset patients who survive into adulthood
will be included in the scope of the Field.

 

1.35         “First
Commercial Sale” means, with respect to a given Licensed Product in a country, the first commercial sale in an arms-length
transaction of such Licensed Product to a Third Party by or on behalf of a Party, its Affiliate or its sublicensee in such country
following receipt of applicable Regulatory Approval of such Licensed Product in such country.

 

1.36         “FTE”
means a full time equivalent person year (consisting of a total of two thousand (2,000) hours per Contract Year, subject to
a proportionate reduction in the first Contract Year) of scientific, technical, marketing, sales, distribution and certain general
and administrative activities related to the Development of Licensed Products and/or the Commercialization of the Licensed Products
in the Field in accordance with this Agreement. For the avoidance of doubt, no individual will count as more than one (1) FTE,
and any individual who works less than two thousand (2,000) hours in a given Contract Year performing activities under this Agreement
will be counted as a fraction of one (1) FTE, the numerator of which is the number of hours such individual performs activities
under this Agreement and the denominator of which is two thousand (2,000) hours.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-8	 

     

    

 

1.37         “FTE
Costs” means all costs for FTEs calculated by multiplying (a) the actual number of FTEs utilized by KHK or Medgenics
in performing activities in accordance with any Development Plan and/or Commercialization Plan by (b) the applicable FTE Rate,
provided that, to the extent either Party is unable to fully track the number of FTEs utilized, the Parties will agree on a mechanism
for estimating such number.

 

1.38         “FTE
Rate” means, with
respect to an FTE, the applicable amount set forth on Schedule 1.38, as such amount may be adjusted pursuant to Section
8.7.

 

1.39         “IND”
means an Investigational New Drug Application, as defined in the FD&C Act, or similar application or submission that is required
to be filed with any Regulatory Authority before beginning clinical testing of a Licensed Product in human subjects.

 

1.40         “Inventions”
means any and all ideas, information, Know-How, data research results, writings, inventions, discoveries, modifications, enhancements,
derivatives, new uses, developments, techniques, materials, compounds, products, designs, processes or other technology or intellectual
property, whether or not patentable or copyrightable, and all Patent Rights and other intellectual property rights in any of the
foregoing.

 

1.41         “Joint
Inventions” means any and all Inventions made or generated hereunder jointly by at least one employee or contractor
of each Party (or its respective Affiliates), as determined by United States patent laws for inventorship, in each case while performing
activities under this Agreement.

 

1.42         “KHK
Business Day” means a day on which banking institutions in Tokyo, Japan are open for business other than a Saturday
or Sunday.

 

1.43         “KHK
In-Licenses” means the Third Party agreements listed on Schedule 1.43.

 

1.44         “KHK
Inventions” means any and all Inventions made or generated hereunder solely by employees or contractors of KHK (or
its Affiliates), as determined by the United States patent laws for inventorship, in each case while performing activities under
this Agreement.

 

1.45         “KHK
Know-How” means Know-How that is (a) Controlled by KHK on the Effective Date or during the Term (other than Medgenics
Know How pursuant to the licenses granted hereunder) and (b) is reasonably necessary or useful in connection with the Development,
Manufacture, use or Commercialization of Licensed Products in the Field in the Territory or the European Union.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-9	 

     

    

 

1.46         “KHK
Licensor” means LJI, BMS, Lonza, and Sanofi, respectively defined in this Article 1, and its respective successor
and assigns, which has licensed rights to KHK pursuant to the KHK In-Licenses.

 

1.47         “KHK
Patent Rights” means (a) the United States and foreign patents and patent applications listed on Schedule 1.47
and any Patent Rights arising from those patents and patent applications prior to the completion of the Term, (b) the United States
and foreign patents and patent applications licensed to KHK under the KHK In-Licenses but not listed on Schedule 1.47 and
any Patent Rights arising from those patents and patent applications prior to the completion of the Term, (c) any Patent Rights
included within KHK Inventions prior to the completion of the Term that are reasonably necessary or useful in connection with the
Development, Manufacture, use or Commercialization of Licensed Products in the Field in the Territory or the European Union and
(d) any Patents Rights included in Third Party Technology prior to the completion of the Term (i) in respect of which KHK obtains
Control after the Effective Date and (ii) are reasonably necessary or useful in connection with the Development, Manufacture, use
or Commercialization of Licensed Products in the Field in the Territory or the European Union.

 

1.48         “KHK
Technology” means KHK Patent Rights, KHK Know-How and KHK Inventions other than Acquirer Intellectual Property.

 

1.49         “Know-How”
means any non-public, proprietary invention, discovery, process, method, composition, formula, procedure, protocol, technique,
result of experimentation or testing, information, data, material, technology or other know-how, whether or not patentable or copyrightable.

 

1.50         “Licensed
Product” means any product containing as an active ingredient the Anti-LIGHT mAb.

 

1.51         “LIGHT”
means TNFSF14 (Unigene cluster number: Hs. 129708).

 

1.52         “LJI”
means La Jolla Institute for Allergy and Immunology and its respective successor and assigns, which has licensed rights to KHK
pursuant to the LJI Agreement.

 

1.53         “LJI
Agreement” means License Agreement between La Jolla Institute for Allergy and Immunology and Kyowa Hakko Kirin Co.,
Ltd. *****.

 

1.54         “Lonza”
means Lonza Sales AG and its Affiliates.

 

1.55         “Manufacturing”
means, as applicable, all activities associated with the production, manufacture, processing, filling, finishing, packaging, labeling,
shipping, and storage of Licensed Products and, solely with respect to Sections 7.5.1 and 7.5.2, a Competing Product,
including without limitation process and formulation development, process validation, stability testing, process development, manufacturing
scale-up, pre-clinical, clinical and commercial manufacture and analytical development, product characterization, quality assurance
and quality control, whether such activities are conducted by a Party, its Affiliates or a Third Party contractor of such Party.
When used as a verb, “Manufacture” will mean to engage in Manufacturing.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-10	 

     

    

 

1.56         “Manufacturing
Costs” means:

 

(a)          With
respect to Licensed Product manufactured by Medgenics, its fully-burdened costs (including the costs associated with product testing
and release activities) of producing (including startup and validation but excluding what will be covered under Section 4.3.3)
and packaging Licensed Product for sale in a given country, determined in accordance with the applicable Accounting Standard, based
on the sum of the following components: (i) direct costs, including manufacturing labor and materials directly incurred in producing
and packaging such Licensed Product; (ii) manufacturing and accounting personnel costs incurred by Medgenics and attributable and
reasonably allocable to the manufacture of Licensed Product, including quality labor and manufacturing and quality supervisory
services, depreciation, and other operating and administrative costs which of the manufacturing, quality and accounting departments
and associated occupancy costs which are allocable to such company departments based on space occupied or headcount, or other activity
based method of allocation; (iii) any other reasonable and customary Out-of-Pocket Costs incurred by Medgenics for the testing,
transport, customs clearance, duty, insurance and/or storage of such Licensed Products, including payments made by Medgenics to
Third Parties for filing, finishing, packaging, labeling, testing, storage and shipment of such Licensed Product and Medgenics’
handling cost with respect thereto, as applicable; and (iv) Medgenics’ reasonably allocated share of cost of Licensed Product
process improvements developed by Medgenics or a Third Party on behalf of Medgenics. For Licensed Products manufactured by Medgenics,
Manufacturing Cost will not include any general corporate overhead, any excess capacity cost or charges or cost for process development
(except to the extent expressly provided above).

 

(b)          With
respect to Licensed Product manufactured for a Party by one or more Third Parties and supplied to the other Party hereunder amounts
actually paid (net of any discounts, credits or refunds) by such Party to such Third Parties for the manufacture and supply of
such Licensed Product.

 

(c)          With
respect to Licensed Product manufactured by KHK in Japan and exported to the Territory pursuant to Section 4.3.3, one hundred
ten percent (110%) of KHK’s fully burdened manufacturing cost (including the costs associated with product testing and release
activities) of producing (including startup and validation) and packaging Licensed Product for sale in a given country, determined
in accordance with the applicable Accounting Standard, based on the sum of the following components: (i) direct costs, including
manufacturing labor and materials directly incurred in producing and packaging such Licensed Product; (ii) manufacturing and accounting
personnel costs incurred by KHK and attributable and reasonably allocable to the manufacture of Licensed Product, including quality
labor and manufacturing and quality supervisory services, depreciation, and other operating and administrative costs which of the
manufacturing, quality and accounting departments and associated occupancy costs which are allocable to such company departments
based on space occupied or headcount, or other activity based method of allocation; (iii) any other reasonable and customary Out-of-Pocket
Costs incurred by KHK for the testing, transport, customs clearance, duty, insurance and/or storage of such Licensed Products,
including payments made by KHK to Third Parties for filing, finishing, packaging, labeling, testing, storage and shipment of such
Licensed Product and KHK’s handling cost with respect thereto, as applicable; and (iv) KHK’s reasonably allocated share
of cost of Licensed Product process improvements developed by KHK or a Third Party on behalf of KHK. For Licensed Products manufactured
by KHK, Manufacturing Cost will not include any general corporate overhead, any excess capacity cost or charges or cost for process
development (except to the extent expressly provided above). 

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-11	 

     

    

 

Notwithstanding the foregoing, if the Licensed
Product is Manufactured by a Third Party other than Lonza, then the portion of the annual fee payable to Lonza payable by Medgenics
pursuant to Section 8.6.4(c) will be excluded from Manufacturing Costs.

 

1.57         “Medgenics
Business Day” means a day on which banking institutions in New York, New York are open for business other than Saturday
or Sunday.

 

1.58         “Medgenics
In-License” means each Third Party agreement listed on Schedule 1.58.

 

1.59         “Medgenics
Inventions” means any and all Inventions made or generated hereunder solely by employees or contractors of Medgenics
(or its Affiliates), as determined by United States patent laws for inventorship, in each case while performing activities under
this Agreement.

 

1.60         “Medgenics
Know-How” means Know-How that is (a) Controlled by Medgenics or any of its Affiliates on the Effective Date or during
the Term (other than KHK Know-How pursuant to the licenses granted hereunder) and (b) reasonably necessary or useful in connection
with Development, Manufacture, use or Commercialization of Licensed Products.

 

1.61         “Medgenics
Licensor” means The Children’s Hospital of Philadelphia (“CHOP”).

 

1.62         “Medgenics
Lonza License Agreement” means an agreement between Medgenics and Lonza that licenses to Medgenics the intellectual
property rights subject to the ***** Agreement between Lonza and KHK *****, to the extent related to the Licensed Product in the
Field in the Territory and the European Union, including the right to sublicense to another contract manufacturer such that such
contract manufacturer can perform process development and supply of anti-LIGHT-mAb.

 

1.63         “Medgenics
Patent Rights” means (a) the United States and foreign patents and patent applications listed on Schedule 1.62
and any Patent Rights arising from those patents and patent applications prior to the completion of the Term, (b) any Patent Rights
included within Medgenics Inventions prior to the completion of the Term that are reasonably necessary or useful in connection
with the Development, Manufacture, use or Commercialization of Licensed Products and (c) any Patents Rights included in Third Party
Technology prior to the completion of the Term (i) in respect of which Medgenics obtains Control after the Effective Date and (ii)
are reasonably necessary or useful in connection with the Development, Manufacture, use or Commercialization of Licensed Products.

 

1.64         “Medgenics
Technology” means Medgenics Know-How, Medgenics Patent Rights and Medgenics Inventions other than Acquirer Intellectual
Property.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-12	 

     

    

 

1.65         “Medical
Affairs Activities” means, with respect to a Licensed Product, activities designed to ensure or improve appropriate
medical use of, conduct medical education of, or further research regarding, such Licensed Product, including, with respect to
such Licensed Product: (a) conducting service based medical activities including providing input and assistance with consultancy
meetings, recommending investigators for clinical trials and providing input in the design of such trials and other research related
activities, and delivering non-promotional communications and conduct non-promotional activities including presenting new clinical
trial data and other scientific information; (b) grants to support continuing medical education, symposia, or Third Party research
specifically related to such Licensed Product; (c) development, publication and dissemination of publications relating to such
Licensed Product and relevant disease states; (d) medical information services provided in response to inquiries communicated via
sales representatives or received by letter, phone call or email; (e) conducting advisory board meetings or other consultant programs;
(f) support of investigator-initiated clinical trials; (g) managing relationships with cooperative groups, physician/hospital networks
and advocacy groups; and (h) establishing and implementing risk, evaluation and mitigation strategies.

 

1.66         “Net
Sales” means the gross invoiced sales by a Party and/or its Related Parties to Third
Parties for Licensed Products sold, less deductions, consistent with applicable Accounting Standards used in the applicable reporting
period for such Party’s consolidated financial reporting purposes, which will be limited to: (a) price adjustments, chargeback
payments, credits, or rebates (or the equivalent thereof), allowances allowed and taken, quantity or other trade discounts
and other amounts paid on sale of Licensed Products, including those granted to and actually used by group purchasing organizations
or other buying groups, managed healthcare organizations, pharmacy benefit management companies, health maintenance organizations
and any other providers of health insurance coverage, health care organizations or other healthcare institutions (including hospitals),
Third Party health care administrators or patient assistance or other similar program, or to federal, state/provincial, local and
other governments, including their agencies, or to wholesalers, distributors and other trade customers; (b) sales, use, tariffs,
value-add, and/or excise taxes, or other governmental charges and tariffs incurred in connection with exportation or importation
directly imposed and with reference to particular sales; (c) reasonable and customary freight, postage, shipping, insurance and
other transportation expenses and delayed ship order credits reflected in the applicable invoice and paid by the customer; and
(d) amounts allowed, repaid or credited due to defects, returns, rejections, recalls, rebates and replacements and allowances of
goods or because of retroactive price reductions; (e) normal and customary rebates, trade, cash or quantity discounts; billing
errors; coupons for price reductions; (f) required distribution commissions/fees payable to Third Party wholesalers for distribution
of the Licensed Products; (g) allowance and write-offs for bad debt made in accordance with generally accepted accounting principles,
consistently applied to all of such Party’s products; (h) discounts pursuant to indigent patient programs and patient discount
programs including coupon discounts; and (i) any item, substantially similar in character or substance to any of the foregoing
permitted by the applicable Accounting Standards and customary in the pharmaceutical industry.  Net Sales also includes the
Fair Market Value of any non-cash consideration received in connection with the sale of the Licensed Products.  In the case
of any sale of Licensed Product for value other than in an arm’s length transaction exclusively for cash, Net Sales will
be determined by referencing Net Sales at which substantially similar quantities of such Licensed Product are sold in an arm’s
length transaction for cash. For purposes of calculating Net Sales, transfers of Licensed Product between a Party and its
Related Parties, whether or not value is exchanged therefor, will not be booked as sales.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-13	 

     

    

 

1.67         “Out-of-Pocket
Costs” means, with respect to specified activities hereunder, direct expenses paid or payable by a Party or its Related
Parties to Third Parties (other than employees of such Party or its Related Parties) that are specifically identifiable and incurred
to conduct such activities.

 

1.68         “Patent
Rights” means all patents (including all reissues, extensions, substitutions, confirmations, re-registrations, re-examinations,
revivals or revalidations, supplementary protection certificates and patents of addition) and patent applications (including all
provisional applications, continuations, continuations-in-part and divisions).

 

1.69         “PHS
Act” means the Public Health Services Act (Title 42, U.S.C., Chapter 6A). As used herein the PHS Act will refer,
more specifically, to 42 USC § 262, which governs the regulation of biological products.

 

1.70         “Planned
Agency Contact” means (a) all communications (whether an Administrative Contact or Substantive Contact) initiated
from either Party to a Regulatory Authority or (b) pre-arranged contacts from a Regulatory Authority to a Party, in each case that
reasonably relate to or may impact the Manufacture, Development or Commercialization of Licensed Products.

 

1.71         “Product
Labels and Inserts” means (a) all labels and other written, printed or graphic matter affixed to any container, packaging
or wrapper utilized with Licensed Product, or (b) any written material physically accompanying Licensed Product, including product
package inserts.

 

1.72         “Product
Trademarks” means the trademark(s), service mark(s), accompanying logos, trade dress and/or indicia of origin used
in connection with the Commercialization of each Licensed Product in the Territory. For purposes of clarity, the term Product Trademark(s)
will not include, without limitation, the corporate names and logos of either Party, and will include any internet domain names
incorporating such Product Trademarks.

 

1.73         “Profit”
means with respect to all Profit-Share Products with respect to a Contract Quarter and a country in the Territory: (a) Net Sales
of such Profit-Share Products in the Field in the Territory by Medgenics and its Affiliates, plus (b) Profit-Share Product Proceeds,
minus (c) Allowable Expenses, to the extent such deductions have not already or otherwise been deducted in calculating the
amounts described in (a) and (b) above. If a calculation of Profit for a given Contract Quarter pursuant to the preceding sentence
would result in a negative number, the amount of such Profit for such Contract Quarter will be zero (0).

 

1.74         “Profit-Share
Product” means a Licensed Product Commercialized by Medgenics or its Related Parties in the Territory.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-14	 

     

    

 

1.75         “Profit-Share
Product Proceeds” means, with respect to Profit-Share Products, any proceeds received by Medgenics or its Affiliates
from Third Parties with respect to the Development, Manufacture, supply, or Commercialization of such Profit-Share Products in
the Field in the Territory, including proceeds attributable to a grant of a license or sublicense, or a grant of distribution rights,
to permitted sublicensees and distributors under this Agreement, to Develop, Manufacture or Commercialize such Profit-Share Products
(or, if rights in addition to such rights to such Profit-Share Products are granted to such Third Party, then reasonably allocated
to the rights granted to such Third Party with respect to such Profit-Share Products). In the event any Third Party sublicensee
makes a bona fide investment in any equity securities issued by Medgenics or any of its Affiliates, the cash consideration and
the Fair Market Value of any non-cash consideration received by Medgenics and its Affiliates in exchange therefor will be excluded
from the calculation of Profit-Share Product Proceeds, up to the Fair Market Value of such equity securities, and the sum of any
cash consideration and the Fair Market Value of any non-cash consideration received by Medgenics and its Affiliates in excess of
the Fair Market Value of such equity securities will be included in the calculation of Profit-Share Product Proceeds.

 

1.76         “Regulatory
Approval” means the approval of the applicable Regulatory Authority necessary for the commercial manufacture, distribution,
marketing, promotion, offer for sale, use, import, export and sale of a Licensed Product in a regulatory jurisdiction, including,
where required, separate pricing and/or reimbursement approvals.

 

1.77         “Regulatory
Approval Application” means an application submitted to the appropriate Regulatory Authority seeking Regulatory Approval
of a Licensed Product in a regulatory jurisdiction, including without limitation a BLA.

 

1.78         “Regulatory
Authority” means any applicable supranational, national, regional, state or local regulatory agency, department,
bureau, commission, council or other government entity involved in granting of Regulatory Approval for a Licensed Product in a
regulatory jurisdiction, including without limitation the FDA and the EMA.

 

1.79         “Regulatory
Materials” means any regulatory submissions, notifications, registrations, approvals and/or other filings and correspondence
made to or with a Regulatory Authority, and any other records required to be maintained for possible audit by a Regulatory Authority,
that may be necessary or reasonably desirable to Develop, Manufacture, or Commercialize Licensed Products in the Territory and/or
the European Union.

 

1.80         “Related
Party” means, with respect to a Party, such Party’s Affiliates and permitted licensees and sublicensees, which
term does not include wholesale distributors of such Party or its Affiliates, which distributors purchase a Licensed Product from
such Party or its Affiliates in an arm’s-length transaction.

 

1.81         “Royalty-Bearing
Sales” means Net Sales by KHK and its Affiliates of Licensed Products worldwide.

 

1.82         “Sanofi”
means Sanofi, successor in interest to Sanofi-Aventis.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-15	 

     

    

 

1.83         “Significant
Impact” means a decrease in Medgenics’ and its Related Parties’ Net Sales of Licensed Products *****.

 

1.84         “Substantive
Contact” means any contact to or from a Regulatory Authority that is not an Administrative Contact.

 

1.85         “Sublicensing
Royalties” means royalties and sales milestones received by KHK from its licensees or sublicensees on Net Sales by
such licensees or sublicensees of Licensed Products worldwide.

 

1.86         “Territory”
means the United States and its territories and possessions and Canada.

 

1.87         “Third
Party” means any person or entity other than a Party or any of its Affiliates.

 

1.88         “Third
Party Technology” means any Patent Rights, Know-How, inventions, or other intellectual property owned, in whole or
in part, by or licensed to a Third Party.

 

1.89         “Third
Party Technology Costs” means, with respect to a Profit-Share Product, royalties, license fees or other payments,
as applicable, that are made to any Third Party for the use of any Third Party Technology and are reasonably allocable to and reasonably
necessary or useful for, the Development, Manufacturing or Commercialization of such Licensed Product in the Field in the Territory.
For the avoidance of doubt:

 

(a)          the
amounts payable to the KHK Licensors under the KHK In-Licenses are Third Party Technology Costs, provided however that:

 

(i)          with
respect to payments paid by KHK to LJI *****, only payments stipulated in paragraphs (1) and (3) of Section 12 of such addendum
will be included in the Third Party Technology Costs and all other costs such as milestone payments will be solely borne by KHK
and not included in Third Party Technology Costs;

 

(ii)         with
respect to payments paid by KHK to Lonza *****, only payments stipulated in Section 5.2 of such agreement will be included in the
Third Party Technology Costs and all other costs except for annual maintenance fee which is stipulated in Section 8.6.4(c)
in this Agreement, will be solely borne by KHK and not included in Third Party Technology Costs;

 

(iii)        with
respect to payments paid by KHK to BMS *****, only payments stipulated in Section 10.6.1(a)(i) of such agreement will be included
in the Third Party Technology Costs and all other costs will be solely borne by KHK and not included in Third Party Technology
Costs;

 

(b)          the
amounts payable by Medgenics:

 

(i)          to
the Medgenics Licensor pursuant to Section 6.4.1 and, with respect to amounts payable after receipt of the first Regulatory Approval
for a Licensed Product in the Field in the Territory or the European Union, pursuant to Section 6.2 under the Medgenics In-License
will be included in the Third Party Technology Costs, and payments paid by Medgenics to CHOP with respect of all other costs under
the Medgenics In-License, including but not limited to milestone payments, will be solely borne by Medgenics and not included in
Third Party Technology Costs; and

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-16	 

     

    

 

(ii)         as
royalties under the Medgenics Lonza License Agreement shall be treated as Third Party Technology Costs; and

 

(c)          the
amounts payable for obtaining rights to Third Party Technology for the Territory under Section 9.5 are Third Party Technology
Costs.

 

1.90         “Unplanned
Agency Contact” means all communications (whether an Administrative Contact or Substantive Contact) from a Regulatory
Authority to a Party without advance notice that reasonably relate to or may impact the manufacture, development of commercialization
of Licensed Products, including without limitation e-mails, faxes, telephone calls or unplanned face-to-face meetings.

 

1.91         Additional
Definitions. The following terms have the meanings set forth in the corresponding Sections
of this Agreement:

 

	Term	 	Section
	“Agreement”	 	Preamble
	“Audited Party”	 	8.6.6
	“BPCIA”	 	9.6.2
	“Challenge”	 	11.2.4
	“CHOP”	 	1.61
	“Clinical Development and Option Agreement”	 	Introduction
	“Commercialization Plan”	 	5.2
	“Commercial Team Leader”	 	3.3.1(a)
	“Co-Chairperson”	 	3.1.1(b)
	“Controlling Party”	 	9.3.3
	“Cooperating Party”	 	9.3.3
	“Defending Party”	 	9.4.2(a)
	“Defensive Actions”	 	9.3.2
	“Development Team Leader”	 	3.2.1(a)
	“Disclosing Party”	 	10.1.1
	“Effective Date”	 	2.1
	“Enforcement Expense”	 	9.3.3
	“EU Royalty Rate”	 	8.5.1
	“EU5 Countries”	 	6.2
	“GAAP”	 	1.1
	“Global Clinical Study”	 	4.2.4
	“ICC”	 	13.2.2(a)
	“Indemnitee”	 	12.10.3

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-17	 

     

    

  

	“Infringement Claim”	 	9.4.1
	“Inspecting Party”	 	5.3.4
	“IP”	 	11.7
	“Joint Commercialization Committee” or “JCC”	 	3.3.1
	“Joint Development Committee” or “JDC”	 	3.2.1
	“Joint Patent”	 	9.2.2
	“Joint Steering Committee” or “JSC”	 	3.1.1
	“KHK”	 	Preamble
	“KHK Indemnitees”	 	12.10.1
	“KHK Managed Patent Rights”	 	9.2.1
	“KHK Manufacture Option”	 	5.3.3
	“KHK Territory Royalty Rate”	 	8.5.1
	“Losses”	 	12.10.1
	“Manufacturing Responsibility Transition Plan”	 	5.3.3
	“Medgenics”	 	Preamble
	“Medgenics Indemnitees”	 	12.10.2
	“Other Royalty Rate”	 	8.5.1
	“Party” or “Parties”	 	Preamble
	“Phase 3 Clinical Trial”	 	4.2.4
	“Phase 4 Clinical Trial”	 	1.26
	“Phase 5 Clinical Trial”	 	1.16
	“Plan A Election”	 	Introduction
	“Plan B Election”	 	Introduction
	“Prosecuting Party”	 	9.2.2
	“Publications”	 	10.2.2
	“Receiving Party”	 	10.1.1
	“Recoveries”	 	9.3.3
	“Reference Product Sponsor”	 	9.6.2
	“Requesting Party”	 	8.6.6
	“ROFR Period”	 	7.5.2(b)
	“Section 351(k) Applicant”	 	9.6.1
	“SPC”	 	9.8
	“Supply Agreement”	 	5.3.2
	“Term”	 	11.1
	“Territory Royalty Rate”	 	8.5.1
	“Third Party Claim”	 	12.10.1
	“True-up Payment”	 	8.2.3

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-18	 

     

    

 

Article
2.

EFFECTIVENESS OF THIS AGREEMENT 

 

2.1           Effectiveness
of this Agreement upon the Plan A Election. This Agreement is not and will not become
effective except as set forth in this Section 2.1. As of the date on which KHK provides notice to Medgenics that KHK has
elected the Plan A Election in accordance with Section 4.1.4 of the Clinical Development and Option Agreement, this Agreement
shall automatically become effective. Such date is referred to in this Agreement as the “Effective Date.”

 

2.2           Non-Effectiveness
of this Agreement. Upon the earliest to occur of (a) the termination of the Clinical
Development and Option Agreement pursuant to any of Section 7.2, 7.3, 7.4 or 7.5 thereof, (b) KHK making or being deemed to make
the Plan B Election in accordance with Section 4.1.4 of the Clinical Development and Option Agreement or (c) the expiration of
the Clinical Development and Option Agreement pursuant to Section 7.1(a) thereof, this Agreement will not become effective and
be rendered null and void.

 

Article
3.

GOVERNANCE

 

3.1           Joint
Steering Committee.

 

3.1.1           Establishment
of JSC. As soon as practicable and no later than ***** after the Effective Date, the Parties will establish a committee to
facilitate the Development and Commercialization of Licensed Products under this Agreement (the “Joint Steering Committee”
or “JSC”) as follows:

 

(a)          Composition
of the Joint Steering Committee. The JSC will be comprised of two (2) representatives designated by each of the Parties. Each
representative will be an individual of suitable authority and seniority with significant experience or expertise in biopharmaceutical
drug development. Each Party will appoint its respective initial representatives to the JSC ***** after the Effective Date, and
may from time to time substitute its representatives, in its sole discretion, effective upon notice to the other Party of such
change. Additional representatives or consultants may from time to time be invited to attend JSC meetings, subject to such representatives’
and consultants’ written agreement to comply with the requirements of Article 10. Each Party will bear its own expenses
relating to attendance at such meetings by its representatives and consultants.

 

(b)          Chairperson.
Each Party will designate one (1) of its representatives to be a co-chairperson (“Co-Chairperson”). Each
Co-Chairperson or its designee will conduct the following activities of the Joint Steering Committee cooperatively: (i) scheduling
meetings at least once per Contract Quarter, but more frequently if the JSC determines it necessary; (ii) setting agendas
for meetings with solicited input from representatives of each Party; (iii) preparing and confirming minutes of the meetings,
which will provide a description in reasonable detail of the discussions held at the meeting and a list of any actions, decisions
or determinations made by the JSC, and delivering minutes to each Party’s senior management for review and final approval;
and (iv) conducting effective meetings, including ensuring that objectives for each meeting are set and achieved.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-19	 

     

    

 

(c)          Meetings.
The JSC will meet in accordance with a schedule established by mutual written agreement of the Parties, but no less frequently
than once per Contract Quarter. The JSC may meet by means of teleconference, videoconference or other similar communications equipment;
provided that there will be at least one (1) in-person meeting in each Contract Year. In-person meetings will alternate between
a KHK facility in Japan and a Medgenics facility in the United States.

 

(d)          Responsibilities.
Subject to Section 3.1.3, the JSC will have the following responsibilities:

 

(i)          reviewing
and approving all Development Plans (including Development budgets contained therein) and amendments and updates thereto, in each
case within thirty (30) days after submission to the JSC;

 

(ii)         reviewing
and approving the regulatory strategy, clinical development strategy, and clinical supply strategy developed by the JDC for the
Territory and the European Union for the initial indication and additional indications in the Field;

 

(iii)        reviewing
and approving a recommendation from the JDC to Develop any additional indications in the Field in the Territory and the European
Union;

 

(iv)        monitoring
Development activities for Licensed Products undertaken by each Party in the Territory and the European Union, including, without
limitation, monitoring the progress of each Party in its conduct of each Development Plan against the timelines and budgets contained
therein; reviewing relevant data; and considering issues of priority;

 

(v)         resolving
any disputes that cannot be resolved by the JDC, including, but not limited to the disputes relating to Development budgets and
Development Costs; and

 

(vi)        performing
such other activities as are contemplated under this Agreement and that the Parties mutually agree will be the responsibility of
the JSC.

 

3.1.2       Appointment
of Subcommittees and Project Teams. The JSC will be empowered to create such subcommittees of
itself and other additional project teams as it may deem appropriate or necessary (e.g., CMC, technology transfer, preclinical,
clinical) and may elect to delegate responsibilities to such subcommittees or additional project teams as it may from time to
time deem appropriate. Each such subcommittee and project team will report to the JSC and the JSC will approve or reject recommendations
or actions proposed thereby, subject to the terms of this Agreement. Notwithstanding the foregoing, no subcommittee or project
team will have authority to make any decision binding upon the JSC, other committee, or the Parties.

 

3.1.3           Decision-Making.
With respect to any matter over which the JSC has authority pursuant to Section 3.1.1(d), the JSC will use reasonable best
efforts to reach unanimous agreement on a proposed action, approval or resolution with each Party (regardless of the number of
attendees from the Party at a given meeting) having only one (1) vote, which vote will be cast by the Party’s Co-Chairperson
or its designee. If the JSC is unable to reach unanimous agreement, such matter will be referred to the Executive Officers to be
resolved by negotiation in good faith as soon as is practicable but in no event later than thirty (30) days after referral. If
the Executive Officers are unable to resolve such dispute within such thirty (30) day period, then:

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-20	 

     

    

 

(a)          Medgenics
will have final decision-making authority with respect to all matters concerning Development of the Licensed Product for the initial
indication in the Field in the Territory and the European Union, subject to Section 8.2.1; provided that the performance
of such activities under the Development Plan (or portions thereof) for the initial indication in the Field in the Territory or
European Union cannot be assigned to KHK except with KHK’s consent;

 

(b)          Development
of indications in the Field for the Licensed Product in the Territory and/or European Union beyond the initial indication will
require the unanimous consent of the JSC on all matters relating to Development Plans and Development budgets; and

 

(c)          final
decision-making authority with respect to Commercialization of Licensed Products in a given territory, including but not limited
to Commercialization Plans, Commercialization budgets, manufacturing of commercial supply and decisions on pricing and reimbursement,
will not be subject to approval by the JSC (or any other committee created pursuant to this Agreement) and will be subject to the
final decision-making authority of the Party who holds the Commercialization rights in such territory.

 

3.2           Joint
Development Committee.

 

3.2.1           Establishment
of JDC. As soon as practicable and no later than ***** after the establishment of the JSC, the JSC will establish a committee
to facilitate Development of Licensed Products (the “Joint Development Committee” or “JDC”)
as follows:

 

(a)          Composition
of the JDC. The JDC will be comprised of not less than two (2) and not more than five (5) representatives from each Party.
One (1) such representative from each Party will be designated as that Party’s “Development Team Leader”
to act as the primary JDC contact for that Party. Medgenics’ Development Team Leader will be the chairperson of the JDC.
Each Development Team Leader will be responsible for ensuring that his/her Party’s JDC members carry out the activities assigned
to them under any Development Plan. Each Party will appoint its respective representatives to the JDC within ***** after the establishment
of the JSC and may from time to time substitute its representatives, in its sole discretion, effective upon notice to the other
Party of such change. Any member of the JDC may designate a substitute to attend and perform the functions of that member at any
meeting of the JDC. Additional representatives or consultants may from time to time be invited to attend JDC meetings, subject
to such representatives’ and consultants’ written agreement to comply with the requirements of Article 10. Each
Party will bear its own expenses relating to attendance at such meetings by its representatives and consultants.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-21	 

     

    

 

(b)          Meetings.
The JDC will meet monthly, or at such other frequency as is necessary, as agreed by the JDC based on the volume of Development
activity. The JDC may meet by means of teleconference, videoconference or other similar communications equipment unless the Development
Team Leaders agree to an in-person meeting. In-person meetings will alternate between a KHK facility in Japan and a Medgenics facility
in the United States.

 

(c)          Secretary.
Medgenics’ Development Team Leader will appoint a secretary from among the Medgenics representatives on the JDC to act as
secretary of the JDC meeting. The secretary will record in sufficient detail the discussion and decisions of the JDC. Such minutes
will be circulated to the Parties promptly following the meeting for review, comment and distribution. Such minutes will then be
distributed to the JSC for information only. The Parties will endeavor to manage the business and meetings of the JDC in the most
cost-effective way possible.

 

(d)          Responsibilities.
The JDC will have the following responsibilities:

 

(i)          preparing
Development Plans and Development budgets set forth therein, including amendments and updates thereto, and submitting such Development
Plans and Development budgets to the JSC for approval; provided that (1) the Medgenics representatives on the JDC will be primarily
responsible for preparing the portions of the Development Plan containing the operational activities of Medgenics and all amendments
and updates thereto and (2) the KHK representatives on the JDC will be primarily responsible for preparing the portions of the
Development Plan containing the operational activities of KHK and all amendments and updates thereto;

 

(ii)         developing
a regulatory strategy, clinical development strategy and clinical supply strategy for the Territory and the European Union and
submitting such strategies to the JSC for approval;

 

(iii)        reviewing
Development progress and a comparison of actual Development Costs to the applicable annual Development budget for the Contract
Year-to-date;

 

(iv)        making
Development recommendations to the JSC for approval;

 

(v)         facilitating
the transfer of Know-How and Confidential Information between the Parties for purposes of facilitating the Development activities
of the Parties under this Agreement

 

(vi)        reviewing
requests from clinical investigators on investigators’ sponsored trials and making recommendations to the JSC for approval;
and

 

(vii)       performing
such other activities as are contemplated under this Agreement and that the Parties mutually agree will be the responsibility of
the JDC.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-22	 

     

    

 

(e)          JDC
Decision-Making. With respect to any matter over which the JDC has authority pursuant to Section 3.2.1(d), the JDC will
use reasonable best efforts to reach unanimous agreement on a proposed action, approval or resolution with each Party (regardless
of the number of attendees from the Party at a given meeting) having only one (1) vote, which vote will be cast by the Party’s
Development Team Leader or its designee. If the JDC is unable to reach unanimous agreement, such matter will be referred to the
JSC for resolution in accordance with Sections 3.1.1(d)(v) and 3.1.3.

 

3.3           Joint
Commercialization Committee.

 

3.3.1           Establishment
of JCC. As soon as practicable and no later than ***** prior to the projected First Commercial Sale of a Licensed Product in
the Territory or the European Union, the JSC will establish a committee to facilitate Commercialization of Licensed Products (the
“Joint Commercialization Committee” or “JCC”) as follows:

 

(a)          Composition
of the JCC. The JCC will be comprised of not less than two (2) and not more than five (5) representatives from each Party.
One (1) such representative from each Party will be designated as that Party’s “Commercial Team Leader”
to act as the primary JCC contact for that Party. Each Commercial Team Leader will be responsible for ensuring that his/her Party’s
JCC members carry out the activities assigned to them under any Commercialization Plan. Each Party will appoint its respective
representatives to the JCC within ***** after the establishment of the JCC and may from time to time substitute its representatives,
in its sole discretion, effective upon notice to the other Party of such change. Any member of the JCC may designate a substitute
to attend and perform the functions of that member at any meeting of the JCC. Additional representatives or consultants may from
time to time be invited to attend JCC meetings, subject to such representatives’ and consultants’ written agreement
to comply with the requirements of Article 10. Each Party will bear its own expenses relating to attendance at such meetings
by its representatives and consultants.

 

(b)          Meetings.
The JCC will meet monthly, or at such other frequency as is necessary, as agreed by the JCC based on the volume of Commercialization
activity. The JCC may meet by means of teleconference, videoconference or other similar communications equipment unless the Commercial
Team Leaders agree to an in-person meeting. In-person meetings will alternate between a KHK facility in Japan and a Medgenics facility
in the United States.

 

(c)          Secretary.
Medgenics’ Commercial Team Leader will appoint a secretary from among the Medgenics representatives on the JCC to act as
secretary of the JCC meeting. The secretary will record in sufficient detail the discussion and decisions of the JCC. Such minutes
will be circulated to the Parties promptly following the meeting for review, comment and distribution. Such minutes will then be
distributed to the JSC for information only. The Parties will endeavor to manage the business and meetings of the JCC in the most
cost-effective way possible.

 

(d)          Responsibilities.
The JCC will have the following responsibilities:

 

(i)          overseeing
the Commercialization of the Licensed Products;

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-23	 

     

    

 

(ii)         setting
overall strategic objectives and plans (including pricing and reimbursements) relating to Commercialization of the Licensed Products
in the Field in the Territory and the European Union;

 

(iii)        reviewing
the Commercialization Plans and Commercialization budgets for the Territory and proposed material amendments or updates thereto
submitted to the JCC by Medgenics;

 

(iv)        reviewing
the Commercialization Plan and Commercialization budgets for the European Union and proposed material amendments or updates thereto
submitted to the JCC by KHK;

 

(v)         monitoring
Commercialization activities for Licensed Products undertaken by the Parties in the Territory and the European Union;

 

(vi)        reviewing
Commercialization issues in the Field in the Territory and the European Union;

 

(vii)       providing
a forum for the Parties to discuss the Commercialization of the Licensed Products in the Field in the Territory and the European
Union;

 

(viii)      facilitating
the transfer of Confidential Information between the Parties for purposes of facilitating the Commercialization activities of the
Parties hereunder; and

 

(ix)         performing
such other activities as are contemplated under this Agreement and that the Parties mutually agree will be the responsibility of
the JCC.

 

(e)          JCC
Decision-Making. The JCC is a consultative body only and has no decision making power.

 

Article
4.

DEVELOPMENT

 

4.1           Overview.
Medgenics will take the lead for (a) all Development of the Licensed Product in the Field in the Territory (subject to Section
6.1.2 in the case of Canada) for the initial indication and, if additional Development is approved by the JSC, additional indications
in the Field beyond the initial indication, and (b) all Development of the Licensed Product in the Field in the European Union
(subject to Section 6.1.1 in the case of terminated countries in the European Union) for the initial indication before
the first Regulatory Approval for a Licensed Product in the European Union is transferred from Medgenics to KHK, in each of (a) and
(b) as more fully set forth in this Article 4. After receipt of the first Regulatory Approval for a Licensed Product
in the Field in the United States and after the transfer of the first Regulatory Approval to KHK, pursuant to Section 4.3.1(c),
further Development in the given jurisdiction is subject to Section 4.2.2.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-24	 

     

    

 

4.2           Development
Plans.

 

4.2.1           Development
Plans. The initial Development Plan for the initial indication in the Field in the United States and the European Union is
attached hereto as Schedule 4.2.1. The initial Development Plan is a non-binding understanding of Medgenics’ current
plans for the Development of Licensed Products for the initial indication in the Field in the United States and the European Union
and is included for informational purposes only. Medgenics will update the initial Development Plan within ***** after the Effective
Date.

 

4.2.2           Additional
Indications. At any time, either Party may propose to Develop in the Territory and/or the European Union Licensed Products
for additional indications in the Field (i.e., in addition to the first indication) by submitting to the JDC a written proposal
for the Development thereof, including a proposed work plan, budget and timeline. Upon unanimous agreement by the JDC members to
Develop Licensed Products for such additional indication(s), the JDC will update the Development Plan to include such Development
and submit the updated Development Plan for approval by the JSC. Neither Party will initiate such Development activities in the
Territory and/or the European Union with respect to any additional indication in the Field without the unanimous approval by JSC.

 

4.2.3           Updates.
As early as necessary and no later than ***** prior to the beginning of the next Contract Year, the JDC will update each Development
Plan and submit such updated Development Plans to the JSC for approval, which approval will occur no later than ***** prior to
the beginning of the next Contract Year. Each Development Plan will contain the specific Development objectives to be achieved
by each Party during the then-current Contract Year and the annual budget for such Contract Year, the specific Development activities
to be performed by each Party and the timeline for performing such Development activities. Each Party will use its Commercially
Reasonable Efforts to perform the activities designated to be performed by such Party pursuant to each Development Plan.

 

4.2.4           Global
Clinical Study. If Medgenics conducts a Global Clinical Study in the Field in any country in the Territory, at KHK’s
request Medgenics will in good faith discuss with KHK including sites in countries outside of the Territory for such Global Clinical
Study in order for KHK to join such Global Clinical Study. In order for Medgenics to include such sites in the Global Clinical
Trial, such discussions must result in a mutually satisfactory amendment to this Agreement that addresses all relevant matters
including operational matters (such as allocation of responsibilities between the Parties), regulatory matters (such as preparation
of any required IND, management of communications with Regulatory Authorities and which Party will be the holder of the IND/sponsor
of the trial), risk matters (including KHK indemnifying Medgenics for Losses resulting from Third Party Claims arising from the
trial at such sites including product liability and from Medgenics’ performance of its allocated responsibilities) and KHK
bearing all costs associated with all of the foregoing. In this Agreement, “Global Clinical Study” means,
with respect to Development of Licensed Products, a study with a unique protocol, the results of which are designed to be submitted
to Regulatory Authorities of the United States and European Union and other countries as mandatory for obtaining Regulatory Approval
of such Licensed Products in the respective countries.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-25	 

     

    

 

4.2.5           Development
Event Notices. Medgenics will inform KHK of the occurrence of each of the following events in writing within ***** after such
occurrence: (a) commencement of the first Phase 3 Clinical Trial for any Licensed Product in the Territory and/or the European
Union; and (b) receipt of the first Regulatory Approval for any Licensed Product in the Territory. In this Agreement, “Phase
3 Clinical Trial” means a registration or pivotal clinical trial performed in accordance with applicable laws and
conducted in subjects with a particular disease or condition which is designed to establish the efficacy and safety of a Licensed
Product given its intended use and to define warnings, precautions and adverse events that are associated with such Licensed Product
in the dosage range intended to be prescribed.

 

4.3           Development
Responsibilities for Licensed Products. The Parties will share responsibility for Development activities for Licensed
Product for the Field for Territory and the European Union as follows:

 

4.3.1           Regulatory
Matters.

 

(a)          Strategy.
The JDC will develop, and the JSC will review and approve, a regulatory strategy for the Field for the United States, the
European Union and Canada (subject to Section 6.1.2), that is consistent with the terms of this Agreement. Pursuant to and
in accordance with such regulatory strategy, Medgenics will use Commercially Reasonable Efforts to prepare Regulatory Approval
Applications or other submissions to Regulatory Authorities that Medgenics is responsible for preparing under this Agreement that
are suitable in content and format for use in all geographies in the applicable Territory and the European Union (e.g., use of
ICH eCTD format).

 

(b)          Communications
with Regulatory Authorities.

 

(i)          The
Parties will jointly participate in the following, as set forth in Section 4.3.1(b)(ii): (w) all material communications
with any Regulatory Authority in the Territory and the European Union; (x) label development, including negotiations with any Regulatory
Authority in the Territory and the European Union; (y) advisory committee meetings in the Territory and the European Union; and
(z) negotiation with any Regulatory Authority in the Territory and the European Union regarding post-approval commitments.

 

(ii)         The
Parties will comply with the following procedures for effecting joint participation in communications with Regulatory Authorities
with respect to Licensed Products in the Field in the Territory and the European Union as follows:

 

(1)         Medgenics
will lead communications with Regulatory Authorities in the Territory. Medgenics will lead communications with Regulatory Authorities
in the European Union until the first Regulatory Approval for a Licensed Product in the Field in the European Union is transferred
from Medgenics to KHK. KHK will lead communications with Regulatory Authorities in the European Union after the first Regulatory
Approval for a Licensed Product in the Field in the European Union is transferred from Medgenics to KHK. Medgenics will assist
KHK in communications with Regulatory Authorities in the European Union.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-26	 

     

    

 

(2)         In
this regard, in the event of a Planned Agency Contact from a Regulatory Authority in the Territory or the European Union to Medgenics
that is a Substantive Contact, Medgenics will notify KHK in advance of the contact in order to allow adequate time for KHK’s
participation or review. If the Substantive Contact is required urgently and is imminent, every reasonable attempt should still
be made to notify KHK to enable comment or participation;

 

(3)         In
the event of an Unplanned Agency Contact from a Regulatory Authority in the Territory or the European Union to a Party that is
a Substantive Contact, such Party will communicate the substance of such Substantive Contact to the other Party as soon as possible.
In the rare case that an immediate response is required by the Regulatory Authority, the responding Party will capture the response
provided to the Regulatory Authority in writing and communicate the response to the other Party within twenty-four (24) hours;

 

(4)         In
the event of Planned Agency Contacts or Unplanned Agency Contacts that are Administrative Contacts, Medgenics, KHK or the contacted
Party, as applicable, will communicate such contact with the other Party no later than forty-eight (48) hours after such contact
is made;

 

(5)         Each
Party will provide to the other Party, as soon as reasonably practicable, copies of any documents or other correspondence received
from such Regulatory Authorities in the Territory or the European Union (including without limitation any meeting minutes); and

 

(c)          Regulatory
Approvals.

 

(i)          Medgenics
will be responsible for preparing and filing Regulatory Approval Applications for the Licensed Products in the Field for the United
States and Canada (subject to Section 6.1.2). Regulatory Approval Applications for which Medgenics is responsible and any
resulting Regulatory Approvals of the Licensed Products in the Field in the Territory will be made and issued in the name of Medgenics
or its Related Parties. Medgenics will provide KHK with drafts of any Regulatory Approval Applications for which Medgenics is responsible
to be submitted to the applicable Regulatory Authorities in the Territory sufficiently in advance of submission to allow KHK to
exercise its right to review and comment on such documents.

 

(ii)         Medgenics
will be responsible for preparing and filing the first Regulatory Approval Application for the Licensed Products in the Field for
the European Union. Medgenics will apply for such first Regulatory Approval for the Licensed Products in the Field in the European
Union by submitting the Regulatory Approval Applications with Medgenics (or its local agent) as the applicant and KHK or KHK’s
designee as the proposed Regulatory Approval holder to EMA. Medgenics will provide KHK with drafts of any Regulatory Approval Applications
to be submitted to EMA sufficiently in advance of submission to allow KHK to exercise its right to review and comment on such documents.
After receipt of the Regulatory Approval for the Licensed Product in the first indication in the Field in the European Union, the
JSC will determine which Party shall be responsible for preparing and filing Regulatory Approval Applications for (a) the Licensed
Products in the Field in any country in the European Union in which Medgenics fails to obtain Regulatory Approval in the first
indication, if any, and (b) the Licensed Products in the second indication in the Field in the European Union. All Regulatory Approval
Applications and any resulting Regulatory Approvals of the Licensed Products for the European Union after the Regulatory Approval
for the first indication will be issued in the name of KHK or its Related Parties. In countries/regions in the European Union where
a Regulatory Approval is only given to a party who has filed the Regulatory Approval Application therefor, the Parties will discuss
in good faith and decide on the method how to file the Regulatory Approval Applications and the timing to transfer the title to
the Regulatory Approval Applications and/or Regulatory Approval from Medgenics to KHK such that KHK will hold title to such Regulatory
Approval as soon as practicable after such Regulatory Approval is obtained.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-27	 

     

    

 

(iii)        Medgenics
grants KHK a right of reference to Regulatory Approval Applications filed by Medgenics in the Territory for purposes of KHK obtaining
Regulatory Approval (a) outside the Field in the Territory and (b) outside the Territory and will provide the FDA with any required
document to effect such right of reference. In addition, Medgenics will provide KHK manufacturing information for the CMC section
of KHK’s Regulatory Approval Applications for the Licensed Product outside the Territory where applicable.

 

(d)          Assistance.
Each Party will cooperate with the other Party to provide all reasonable assistance and take all actions reasonably requested by
the other Party that are necessary or desirable to enable the other Party to comply with any Applicable Law, including, but not
limited to, reporting adverse drug experiences (and serious adverse drug experiences) to the applicable Regulatory Authorities.

 

4.3.2       Clinical
Development. Subject to Sections 3.1.3 and 4.2.2, the JDC will develop, and the JSC will review and approve,
a clinical development strategy for the Field for the Territory and the European Union. Each Development Plan will be consistent
with such clinical development strategy. Medgenics will lead the day-to-day clinical Development for Licensed Product in the Field
for the Territory as necessary for preparing and submitting Regulatory Approval Applications in the Territory and, subject to the
following sentence, with EMA. After the first Regulatory Approval for a Licensed Product in the Field in the European Union is
obtained by KHK, any such Development will be performed by the Parties as determined by the JSC, subject to Sections 3.1.3(b)
and 4.2.2. Medgenics will take the lead for any Phase 4 Clinical Trial, and will provide assistance with respect to any
other activity, that is required by the applicable Regulatory Authority to be conducted in the Territory and/or European Union
for the initial indication in the Field. Medgenics will provide reasonable consultation to KHK upon KHK’s request in connection
with Development of the Licensed Product outside the Territory.

 

4.3.3       CMC.
Medgenics will be solely responsible for all chemistry, manufacturing and control activities for the Licensed Product to support
Regulatory Approval for the initial indication in the Field in the Territory and the European Union, which, for clarity includes
all CMC activities up to and including manufacturing process development, commercial scale-up and validation. Medgenics will bear
all costs and expenses incurred in connection with the Manufacture of clinical supplies of Licensed Product for Development for
the initial indication in the Field in the Territory and the European Union (including failed batches and any batches, or parts
thereof, that are Manufactured after the Effective Date, in anticipation of clinical studies but which are not actually used),
and disposal of clinical samples, and, for clarity, none of such costs will be included in Allowable Expenses.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-28	 

     

    

 

4.3.4       Preclinical
Development. If the JSC so tasks the JDC, the JDC will develop, and the JSC will review and approve, a preclinical strategy
for the Territory and the European Union, which strategy will provide for the roles and responsibilities of the Parties in (a)
preparing and reviewing the preclinical sections of all Regulatory Approval Applications and other submissions to any Regulatory
Authorities for the Territory and the European Union, and (b) providing pharmacokinetic, pathology, toxicology and bioanalytical
support for the clinical program.

 

4.4           Drug
Safety.

 

4.4.1       Responsibility
Before First Commercial Sale. Prior to the First Commercial Sale of a Licensed Product in the Field in the Territory or the
European Union, Medgenics will hold and manage the safety database and will lead safety monitoring and reporting in the Territory
and the European Union, and KHK will hold and manage the safety database during clinical development and will lead safety monitoring
and reporting outside the Territory and outside the European Union. Each Party will allow the other Party and its Affiliates and
sublicensees or Third Parties acting on their respective behalf, to:

 

(a)          review
all serious adverse events within time frames that comply with 21 CFR 312.32;

 

(b)          review
IND safety reports, investigator brochure amendments, patient consent forms and clinical protocols;

 

(c)          review
monthly line listings;

 

(d)          read
and write to the database;

 

(e)          participate
in signaling discussions; and

 

(f)          review
all periodic reporting required by Regulatory Authorities (e.g., IND Annual Reports, EU Annual Safety Reports, etc.).

 

The Parties agree to jointly
develop and enter into a global safety data exchange and pharmacovigilance agreement to facilitate this exchange of information
no later than ***** prior to the date of initiation of the first clinical study sponsored by KHK if and when KHK decides to Develop
the Licensed Product in its jurisdiction. In such case, Medgenics will be responsible for holding and maintaining the global safety
database for the Licensed Product.

 

4.4.2       After
First Commercial Sale. In case the Parties have not entered in to a global safety data exchange and pharmacovigilance agreement
according to Section 4.4.1, not later than ***** prior to the anticipated First Commercial Sale of a Licensed Product in
the Territory or the European Union, Medgenics and KHK will jointly develop and enter into a global safety data exchange and pharmacovigilance
agreement. In such case, Medgenics will be responsible for holding and maintaining the global safety database for the Licensed
Product.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-29	 

     

    

 

4.5           Records.
Each Party will maintain scientific records, in sufficient detail and in good scientific manner appropriate for patent and regulatory
purposes, which will fully and properly reflect all work done and results achieved in the performance of Development under this
Agreement by such Party. Each Party will have the right, during normal business hours and upon reasonable notice, to inspect and
copy (or request the other Party to copy) all records of the other Party maintained in connection with the work done and results
achieved in the performance of Development under this Agreement. All such records and the information disclosed therein will be
maintained in confidence by the recipient in accordance with Article 10.

 

4.6           Know-How
Transfer. In order to facilitate Development of Licensed Products, from time to time during the Term, each Party will
disclose or transfer to the other Party any applicable KHK Know-How or Medgenics Know-How, as the case may be, existing as of the
Effective Date or developed after the Effective Date that is reasonably necessary or useful for the Development or Manufacture
of the Licensed Products. Except as otherwise provided under this Agreement or explicitly authorized in writing by a Party, all
Know-How delivered by such Party to the other Party will remain the sole property of such Party.

 

Article
5.

COMMERCIALIZATION

 

5.1           Commercialization.
Medgenics will be solely responsible for all Commercialization activities relating to the Licensed Products in the Field in the
Territory, and as between Medgenics and KHK, Medgenics will record all revenues in connection with the Commercialization of Licensed
Products in Field in the Territory. KHK will be solely responsible for all Commercialization activities relating to the Licensed
Products (a) outside the Field in the Territory and (b) outside the Territory, and as between Medgenics and KHK, KHK will
record all revenues in connection with the Commercialization of Licensed Products (i) outside the Field in the Territory and
(ii) outside the Territory. Medgenics will provide reasonable consultation to KHK upon KHK’s request in connection with
Commercialization of the Licensed Product outside the Territory.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-30	 

     

    

 

5.2           Commercialization
Plans and Budgets. Commencing at least ***** prior to the projected First Commercial Sale of a Licensed Product in the
Field in the Territory or the European Union, as applicable, the Commercialization Party will commence preparing a commercialization
plan (each, a “Commercialization Plan”) for such Licensed Product in the Field in the Commercialization
Party’s territory (i.e., Medgenics is the Commercialization Party with respect to the Territory and KHK is the Commercialization
Party with respect to the European Union), including but not limited to marketing strategies and materials, and patient advocacy,
and a proposed annual budget estimating with reasonable detail Allowable Expenses expected to be incurred by Medgenics in connection
with the Commercialization of Profit-Share Products. No later than ***** prior to the projected First Commercial Sale of such Licensed
Product in the Commercialization Party’s territory, the Commercialization Party will submit a Commercialization Plan to the
JCC for information only. After the launch of such Licensed Product, no later than ***** prior to the beginning of the next Contract
Year, the Commercialization Party will update the Commercialization Plan for the Field in the Commercialization Party’s territory
for such Licensed Product and submit such proposed updates to the JCC for information only. During the course of the Commercialization
Party’s initial preparation of the Commercialization Plan and any subsequent updates, the other Party may, through its representatives
on the JCC, provide input on Commercialization strategies for the Field for the Territory and the European Union. The Commercialization
Party will give reasonable consideration to the other Party’s input, but the other Party acknowledges that the Commercialization
Party has the final decision-making authority over Commercialization activities in the Field in the Commercialization Party’s
territory.

 

5.3           Manufacturing
and Supply.

 

5.3.1       Responsibility.
The JCC will develop a manufacturing and supply strategy for the Territory. Pursuant to this strategy, Medgenics will be solely
responsible for and will lead day-to-day operational management of Manufacturing and supplying any Licensed Product for Commercialization
in the Field in the Territory.

 

5.3.2       Supply
by Medgenics. Subject to Section 5.3.3, Medgenics will Manufacture and supply all of KHK’s requirements of Licensed
Product for Commercialization and/or Development outside the Field in the Territory and outside the Territory. Medgenics will supply
KHK with unlabeled vialed Licensed Product for clinical trials conducted (a) outside the Territory, and (b) outside of
the Field in the Territory and unlabeled vialed Licensed Product for Commercialization (i)  outside the Territory or (ii) outside
the Field in the Territory, in each case at *****. Medgenics’ distribution of Licensed Product will be to a single distributor
or Affiliate of KHK, as directed by KHK. Medgenics will ship all Licensed Product FCA (INCOTERMS 2010) Medgenics’ point of
destination. The Parties will use Commercially Reasonable Efforts to complete within ***** after the Effective Date a supply agreement
governing the terms of such supply by Medgenics to KHK containing reasonable and customary terms contained herein and those additional
terms typically associated with supply of pharmaceutical products (the “Supply Agreement”).

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-31	 

     

    

 

5.3.3       KHK
Manufacture Option. KHK will have the right to assume the right and responsibility to Manufacture or have Manufactured the
Licensed Product for the jurisdictions designated in writing by KHK by notifying Medgenics (“KHK Manufacture Option”).
KHK may exercise the KHK Manufacture Option at any time on or before *****. Within ***** after such notice, the JCC will begin
working on a transition plan for transferring responsibility for such Manufacturing from Medgenics to KHK within a commercially
reasonable timeframe, which transition plan will ensure the continuous, uninterrupted supply of the Licensed Product in the Territory,
a process for ensuring that the transfer of the Manufacturing process and KHK’s Manufacturing activities will comply with
all Applicable Law (including without limitation obtaining all required permits and licenses from FDA) and the assignment to, and
assumption by, KHK of any manufacturing agreement entered into between Medgenics or any of its Related Parties and any Third Party
for the Manufacture of the Licensed Product (the “Manufacturing Responsibility Transition Plan”). In
the event that KHK determines not to assume any contract for the Manufacture of the Licensed Product, Medgenics and KHK will each
be responsible for the payment of fifty percent (50%) of any fees and expenses attributable to the early termination of such agreement.
The Manufacturing Responsibility Transition Plan will be subject to the unanimous approval of the JSC. Each Party will use Commercially
Reasonable Efforts to perform its responsibilities under the Manufacturing Responsibility Transition Plan. Under the Manufacturing
Responsibility Transition Plan, Medgenics will transfer to KHK all Medgenics Know-How that is reasonably necessary or useful for
Manufacturing of the Licensed Product. Upon transfer of Manufacturing to KHK in accordance with the Manufacturing Responsibility
Transition Plan, as between the Parties, KHK will assume the right and responsibility to Manufacture Licensed Products for the
jurisdictions designated by KHK, itself or through Third Parties. For the avoidance of doubt, none of Medgenics or any of its Related
Parties will be required to cease Manufacturing of the Licensed Product or to terminate any manufacturing agreement entered into
between Medgenics or any of its Related Parties and any Third Party for the Manufacture of the Licensed Product, in each case,
until (a) KHK enters into a supply agreement with Medgenics or its Related Parties (as designated by Medgenics) governing the terms
of supply by KHK to Medgenics containing reasonable and customary terms contained herein and those terms typically associated with
supply of pharmaceutical product and (b) the transition of Manufacturing to KHK has been successfully completed including KHK receiving
all required permits and licenses from FDA and KHK demonstrating its ability to Manufacture Licensed Product for the Field in the
Territory that meets all relevant quality standards and specifications and in quantities sufficient to meet Medgenics’ and
its Related Parties requirements. The Out-of-Pocket Costs for the transfer will be shared equally by both Parties. After the transition
is completed, Medgenics will have the right to purchase the unlabeled vialed Licensed Product from KHK at *****.

 

5.3.4        Inspection
Rights. Not more than once per year, if either Party (the “Inspecting Party”) has any reasonable
concerns regarding the other Party’s or its Related Parties’ Manufacturing of any Licensed Products or any other reasonable
necessities for inspection or audit, the Inspecting Party will have the right, at the Inspecting Party’s expense and on not
less than ***** prior notice, to inspect the facilities where the other Party or its Related Parties Manufacture, or have Manufactured,
any Licensed Products and to audit the procedures of such other Party or its Related Parties for the Manufacturing of Licensed
Products for purposes of quality control.

 

5.4           Medical
Affairs Activities. Medgenics will be solely responsible for Medical Affairs Activities with the Licensed Products in
the Field in the Territory, and KHK will be solely responsible for Medical Affairs Activities with the Licensed Products outside
the Territory. The Commercialization Party will have the exclusive right to respond to all questions or requests for information
about the Licensed Products made by any medical professionals or any other Person in its respective territory and field that are
beyond the scope of the Product Labels and Inserts.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-32	 

     

    

 

5.5           Cross
Territory Sales.

 

5.5.1           KHK
Restrictions. KHK will not Commercialize or authorize the Commercialization of any Licensed Product in the Field in the Territory.
KHK will not, itself or through any of its Affiliates or any Third Party, directly solicit, advertise, sell, distribute, ship,
consign, or otherwise transfer any Licensed Products in the Field in the Territory; provided that KHK may ship, consign, or otherwise
transfer any Licensed Product inside Territory for purposes of Manufacturing the Licensed Products for Development and Commercialization
of the Licensed Products outside Territory or outside the Field in the Territory. KHK will use Commercially Reasonable Efforts
to ensure that Licensed Products sold by or on behalf of KHK outside the Territory are not Commercialized in the Field in the Territory,
including use via re-importation from a country or jurisdiction outside the Territory. Without limiting the generality of the foregoing,
KHK will not, and will not permit any of its Related Parties to, sell any Licensed Product to a purchaser if it knows that such
purchaser does, or intends to, promote the use of such Licensed Product in the Field in the Territory. KHK will use Commercially
Reasonable Efforts to ensure that its Related Parties comply with all of the foregoing obligations, including via the enforcement
of KHK’s contracts with any of the foregoing.

 

5.5.2           Medgenics
Restrictions. Medgenics will not Commercialize or authorize the Commercialization of any Licensed Product outside the Territory
or outside the Field in the Territory. Medgenics will not, itself or through any of its Affiliates or any Third Party, directly
solicit, advertise, sell, distribute, ship, consign, or otherwise transfer any Licensed Product outside the Territory or outside
the Field in the Territory; provided that Medgenics may ship, consign, or otherwise transfer any Licensed Product outside the Territory
for purposes of Manufacturing the Licensed Products and/or Developing the Licensed Products for Commercialization in the Field
in the Territory. Medgenics will use Commercially Reasonable Efforts to ensure that Licensed Products sold by or on behalf of Medgenics
in the Territory are not Commercialized outside the Territory. Without limiting the generality of the foregoing, Medgenics will
not, and will not permit any of its Related Parties to, sell any Licensed Product to a purchaser if it knows that such purchaser
does, or intends to, promote the use of such Licensed Product outside the Field in the Territory or facilitate the use of such
Licensed Product outside the Territory. Medgenics will use Commercially Reasonable Efforts to ensure that its Related Parties comply
with all of the foregoing obligations, including via the enforcement of Medgenics’ contracts with any of the foregoing.

 

Article
6.

DILIGENCE

 

6.1           Diligence
in Development. 

 

6.1.1           Generally.
Medgenics will use Commercially Reasonable Efforts to Develop a Licensed Product in the Field in the Territory (subject, with respect
to Canada, to Section 6.1.2) and the European Union and to obtain Regulatory Approvals for the Licensed Product in the Field
in the Territory (subject, with respect to Canada, to Section 6.1.2) and the European Union. For clarity, in the European
Union, Medgenics will apply to obtain the Regulatory Approval for a Licensed Product for the initial indication in the Field, provided
that such Regulatory Approval will be owned by KHK or KHK’s designee and will designate KHK or KHK’s designee as the
marketing authorization holder as described in Section 4.3.1(c)(ii). For clarity, Medgenics will take the lead for the Phase
4 Clinical Trial in the European Union and provide KHK or KHK’s designee all the Regulatory Materials with respect to such
Phase 4 Clinical Trial for the initial indication. Subject to Section 6.1.2, if, with respect to any country in the Territory
or the European Union, Medgenics (a) does not *****, or (b) ***** files a Regulatory Approval Application but does not
obtain Regulatory Approval and no additional clinical Development or Manufacturing activities are being conducted ***** in such
country for such Licensed Product, then KHK will have the right to terminate this Agreement with respect to such country. For the
avoidance of doubt, the filing of a Regulatory Approval Application with the EMA is considered a filing of a Regulatory Approval
Application in all countries of the European Union.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-33	 

     

    

 

6.1.2           Canada.
With respect to Canada, the Parties acknowledge that Development of a Licensed Product in the Field in Canada is a matter for discussion
in the JDC and the JSC at an appropriate time after Development of the Licensed Product for the initial indication in the Field
in the Territory and the European Union is substantially advanced. Such discussion should take place no later than when the JSC
decides to file the first Regulatory Approval Application for the Licensed Products in the Field in the United States, following
the data readout of the Phase 3 Clinical Trial. If the JSC unanimously agrees not to proceed with the Development of a Licensed
Product in the Field in Canada and not to obtain Regulatory Approval for the Licensed Product in the Field in Canada, then Medgenics
will not be required to use Commercially Reasonable Efforts to Develop a Licensed Product and to obtain Regulatory Approvals for
the Licensed Product in the Field in Canada. If Medgenics elects not to proceed with the Development of a Licensed Product in the
Field in Canada and not to obtain Regulatory Approval for the Licensed Product in the Field in Canada, and the JSC does not unanimously
agree to the foregoing, then KHK may terminate this Agreement pursuant to Section 11.2.3 solely with respect to Canada,
and Medgenics will not be required to use Commercially Reasonable Efforts to Develop a Licensed Product in the Field in Canada
and to obtain Regulatory Approvals for the Licensed Product in the Field in Canada.

 

6.2           Diligence
in Commercialization. Medgenics will use Commercially Reasonable Efforts to Commercialize
each Licensed Product in each country of the Territory in which Regulatory Approval is obtained, including identifying and committing
sufficient resources for pre-launch, launch and subsequent Commercialization activities. KHK will use Commercially Reasonable
Efforts to Commercialize each Licensed Product in the United Kingdom, France, Germany, Spain, and Italy (“EU5 Countries”);
provided that Regulatory Approval is obtained for such country, including identifying and committing sufficient resources for
pre-launch, launch and subsequent Commercialization activities. Both Parties acknowledge and agree that there may be cases that
KHK may use Commercially Reasonable Efforts and choose not to Commercialize the Licensed Product in some of the EU5 Countries
due to reimbursement pricing or for some other reasons, and in such cases KHK will not be liable for a breach of the diligence
obligation set forth in this Section 6.2 in respect of such country.

 

6.3           Reports.
On a semiannual basis but not later than June 30 and December 31 of each Contract Year, (a) each Party will provide to the JSC
a written report summarizing its Development (including the status of any Regulatory Approval process) activities in the Territory
and the European Union and (b) each Commercialization Party will provide other Party with a written report summarizing its Commercialization
activities with respect to the Licensed Products in its territory on a Licensed Product-by-Licensed Product and country-by-country
basis during the just-ended semiannual period.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-34	 

     

    

 

Article
7.

LICENSES 

 

7.1           License
Grants to Medgenics.

 

(a)          Subject
to the terms and conditions of this Agreement, KHK grants to Medgenics, under the KHK Technology, an exclusive, non-transferable
(except in accordance with Section 13.3) license, with the right to grant sublicenses solely as provided in Section 7.4,
to:

 

(i)          Develop
Licensed Products (1) in the Field in the Territory, and (2) in the Field in the European Union, in the case of this clause
(2) on behalf of KHK;

 

(ii)         Manufacture
or have Manufactured (subject to Sections 7.4.4 and 7.6) Licensed Products, unless and until KHK assumes Manufacturing
after KHK exercises the KHK Manufacture Option; and

 

(iii)        use,
offer for sale, sell, have sold and otherwise Commercialize Licensed Products in the Field in the Territory; in each of clause
(i), (ii), and (iii) in accordance with this Agreement.

 

(b)          KHK
hereby grants Medgenics a non-exclusive, royalty-free, perpetual, worldwide, fully paid-up license, with the right to sublicense
as provided in Section 7.4 without a duty of accounting or the obligation to obtain consent, under the KHK Inventions for
which the costs of generating such KHK Invention was borne by both Parties pursuant to Section 8.2 and/or accounted as an
Allowable Expense pursuant to Section 8.4, for any and all purposes. 

 

7.2           License
Grants to KHK.

 

(a)          Subject
to the terms and conditions of this Agreement, Medgenics grants KHK, under the Medgenics Technology, a non-exclusive license, royalty-free
(except as to the Medgenics In-License as set forth in Section 8.6.4(b)) license, with the right to sublicense solely as
provided in Section 7.4, to:

 

(i)          
Develop, have Developed, Manufacture, have Manufactured, use, offer for sale, sell, have sold and otherwise Commercialize and have
Commercialized Licensed Products outside the Field in the Territory and in any and all fields outside the Territory; and

 

(ii)         Develop,
have Developed, Manufacture, have Manufactured, use, offer for sale, sell, have sold and otherwise Commercialize and have Commercialized
any diagnostic product that is reasonably necessary or useful in connection with the Manufacture, use, offer for sale, and/or sale
of the Licensed Product outside the Field in the Territory and in any and all fields outside the Territory.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-35	 

     

    

 

(b)          Medgenics
hereby grants KHK a non-exclusive, royalty-free, perpetual, worldwide, fully paid-up license, with the right to sublicense as provided
in Section 7.4 without a duty of accounting or the obligation to obtain consent, under any Medgenics Inventions for which
the costs of generating such KHK Invention was borne by both Parties pursuant to Section 8.2 and/or accounted as an Allowable
Expense pursuant to Section 8.4, for any and all purposes. 

 

7.3           Rights
of Reference. Each Party hereby grants to the other Party the right to reference any and all Regulatory Approval Applications
and Regulatory Approvals filed or obtained by the other Party in respect of a Licensed Product solely for use in connection with
exercising such Party's rights under Section 7.1 or 7.2, as applicable.

 

7.4           Sublicenses.

 

7.4.1           Right
to Sublicense. Medgenics may not sublicense the rights granted to it under Section 7.1 to its Related Parties or Third
Parties without the prior written consent of KHK, which consent will not be unreasonably withheld, conditioned or delayed. KHK
may not sublicense the rights granted to it under Section 7.2 to its Related Parties or Third Parties without the prior
written consent of Medgenics, which consent will not be unreasonably withheld, conditioned or delayed. The sublicensing Party will
remain responsible for the performance of its sublicensees under this Agreement, including for all payments due hereunder. The
sublicensing Party will provide the other Party with notice of each sublicense granting rights to Commercialize Licensed Products
promptly after execution of such sublicense. In addition, each Party will provide a copy of any such sublicense to the other Party
after execution of such sublicense. All such notices of sublicenses provided by the sublicensing Party under this Section 7.4.1
will be deemed to be Confidential Information of the sublicensing Party subject to the provisions of Article 10 whether
or not so marked. ***** for nominal consideration to the extent reasonably necessary or useful for the Manufacture of Licensed
Products *****.

 

7.4.2           Terms.
Each sublicense granted by a Party pursuant to Section 7.4.1 will be subject and subordinate to the terms and conditions
of this Agreement and will contain terms and conditions consistent with those in this Agreement. Agreements with any sublicensee
that include the right to Commercialize any Licensed Product(s) will contain the following provisions: (a) the requirement set
forth in Section 8.6.4(c); and (b) a requirement that such sublicensee comply with the confidentiality and non-use provisions
of Article 10 with respect to both Parties’ Confidential Information.

 

7.4.3           Effect
of Termination on Sublicenses. If this Agreement terminates for any reason, each Party agrees to use Commercially Reasonable
Efforts to enter into direct licenses with the other Party’s sublicensees; provided that the sublicensee is not in breach
of its sublicense agreement and such sublicensee agrees to comply with all of the terms of this Agreement to the extent applicable
from the rights originally sublicensed to it by the sublicensing Party.

 

7.4.4           Subcontracting.
The Parties will be entitled to utilize the services of Third Parties, including Third Party contract research organizations and
service providers to perform their respective Development activities; provided that each Party will remain at all times fully liable
for its respective responsibilities under each Development Plan and this Agreement. Any agreement with a Third Party to perform
a Party’s responsibilities under this Agreement will include confidentiality and non-use provisions which are no less stringent
than those set forth in Article 10 and intellectual property provisions that will allow such Party to comply with Article
9. Notwithstanding the foregoing, Medgenics will not have the right to have the Licensed Product Manufactured by any Third
Party without the prior written consent of KHK, which consent will not be unreasonably withheld, conditioned or delayed.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-36	 

     

    

 

7.5           Exclusivity.

 

7.5.1           Exclusivity
Generally. Until expiration of all Data Exclusivity Periods for the Licensed Product in a jurisdiction in the Territory, Medgenics
and its Affiliates will not Commercialize, directly or indirectly, or in-license or otherwise acquire any product that is a Competing
Product in the Field in such jurisdiction, except for a Competing Product acquired pursuant to Section 7.5.2; provided,
however, if Medgenics or its Affiliates obtains such a Competing Product through a Change of Control or other acquisition or merger
with, a Third Party, then Medgenics or its Affiliate *****. Subject to Section 7.5.2, KHK has the right to Develop, Manufacture
or Commercialize, directly or indirectly, or in-license or otherwise acquire any product that is a Competing Product.

 

7.5.2           Medgenics
Rights to KHK Competing Product.

 

(a)          Until
expiration of all Data Exclusivity Periods for the Licensed Product in a jurisdiction in the Territory, if KHK acquires or Develops
a Competing Product in the Field, then KHK will notify Medgenics *****. KHK will include with such notification the terms on which
it is willing to grant to Medgenics the exclusive or semi-exclusive (exercised with Medgenics and KHK jointly, to the exclusion
of any Third Parties) right and license to Develop and Commercialize such Competing Product in the Field in the Territory. If Medgenics
notifies KHK of Medgenics’ interest in obtaining such right and license *****, the Parties will proceed promptly to negotiate
the terms of a definitive agreement, and will use Commercially Reasonable Efforts to do so *****. Such negotiations will be conducted
on an exclusive basis between the Parties, and KHK may not offer to grant any Third Party any rights with respect to the Competing
Product while such negotiations are ongoing or disclose to any Third Party any Confidential Information regarding the Competing
Product, including the existence of such negotiations. If the Parties are unable to execute a mutually agreeable license agreement
*****, then KHK may proceed to Develop and Commercialize such Competing Product by itself or through or with its Affiliates but
not with a Third Party other than after compliance with Section 7.5.2(b).

 

(b)          Until
expiration of all Data Exclusivity Periods for the Licensed Product in a jurisdiction in the Territory, if KHK wishes to enter
into an agreement granting to a Third Party the exclusive or semi-exclusive right and license to Develop or Commercialize a Competing
Product in the Field in such jurisdiction, including without limitation by way of license, partnership, joint venture, collaboration,
distribution or other similar relationship, Medgenics will have a right of first offer to obtain an exclusive or semi-exclusive
right and license to Develop and Commercialize such Competing Product in the Field in such jurisdiction. KHK will present to Medgenics
a complete data package summarizing all available data with respect to such Competing Product program and a good faith proposal
of terms and conditions for Medgenics to obtain an exclusive or semi-exclusive right and license to Develop and Commercialize such
Competing Product in the Field in such jurisdiction, and the Parties will comply with the procedure set forth in this Section
7.5.2(b). The Parties will proceed promptly to negotiate the terms of a definitive agreement, and will use Commercially Reasonable
Efforts to do so *****. Such negotiations will be conducted on an exclusive basis between the Parties, and KHK may not offer to
grant any Third Party any rights with respect to the Competing Product prior to presenting the opportunity to Medgenics and for
so long as such negotiations are ongoing or disclose to any Third Party any Confidential Information regarding the Competing Product,
including the existence of the negotiations. If Medgenics and KHK have not agreed upon the material terms and conditions pursuant
to which Medgenics would receive such a right and license to such Competing Product ***** (the “ROFR Period”),
KHK will be free to discuss terms and conditions for the grant of rights and license with respect to such Competing Product with
any Third Party and, subject to Section 7.5.2(c), enter into an agreement with a Third Party with respect thereto.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-37	 

     

    

 

(c)          KHK
will provide Medgenics notice of the final material terms and conditions of any proposed license, partnership, joint venture, collaboration,
distribution or other similar relationship with a Third Party granting rights relating to the Development and/or Commercialization
of a Competing Product in the Field in the Territory. Upon receipt of such notice, Medgenics will have the right, but not the obligation,
to enter into an agreement with KHK granting rights relating to the Development and/or Commercialization in the Field in the Territory
upon the same terms and conditions as the proposed transaction described in the notice described above in this Section 7.5.2(c)
by notifying KHK *****. KHK may not enter into any agreement granting a Third Party any rights and license with respect to a Competing
Product in the Field in the Territory without providing Medgenics with the notice and opportunity to match the offer described
in this Section 7.5.2(c).

 

7.6           In-Licenses.

 

7.6.1           KHK
In-Licenses. All licenses and other rights granted to Medgenics by KHK under this Article 7 are subject to the rights
and obligations of KHK under the KHK In-Licenses. For the avoidance of doubt, if KHK Controls only a non-exclusive license under
a KHK In-License, KHK’s grant of exclusive license rights pursuant to Section 7.1 means that KHK and its Affiliates
will not exercise and will not sublicense such rights with respect to Licensed Products in the Field in the Territory. Medgenics
and its Related Parties, and the applicable rights and licenses granted to Medgenics hereunder, shall be subject to the rights
retained, and obligations imposed, by the US government pursuant to the Bayh-Dole Act, Chapter 18 of Title 35 of the United Stated
Code, Sections 200-212 with respect to the KHK Patent Rights solely owned by LJI. Medgenics agrees to be bound by the pertinent
sections of Section 1 of, and Sections 2.2, 2.3, 2.4, 2.5, 3.1, 5.3, 7.3, 7.4, 7.6, 7.9, 8.4, 8.5, 8.6, 10.4, 10.5, 10.6, 11.1,
12.6, 12.7 and 12.10 of, the LJI Agreement to the same extent that KHK is bound thereby.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-38	 

     

    

 

7.6.2           Medgenics
In-Licenses. All licenses and other rights granted to KHK by Medgenics under this Article 7 are subject to the rights
and obligations under the Medgenics In-License. KHK and its Related Parties, and the applicable rights and licenses granted to
KHK hereunder, shall be subject to the rights retained, and obligations imposed, by the US government pursuant to the Bayh-Dole
Act, Chapter 18 of Title 35 of the United Stated Code, Sections 200-212 with respect to the Medgenics Patent Rights described in
clause (a) of Section 1.62. KHK agrees to be bound by the pertinent sections of Sections 2, 3.6, 8.1, 9.2 and 12,3 of the
Medgenics In-License to the same extent that Medgenics is bound thereby. In addition, the sublicense to KHK of the Medgenics Technology
licensed to Medgenics under the Medgenics In-License automatically terminates if and to the extent of termination of the Medgenics
In-License, subject to the right of KHK to request a direct license from CHOP.

 

7.7           No
Other Rights. Except as otherwise expressly provided in this Agreement, under no circumstances will a Party, as a result
of this Agreement, obtain any ownership interest or other right in any intellectual property rights of the other Party, including
items Controlled or developed by the other Party, or provided by the other Party to such Party at any time pursuant to this Agreement.
Unless expressly provided otherwise in this Agreement, KHK will retain all rights (including but not limited to Development and
Commercialization rights) to the Licensed Products outside the Territory and outside the Field in the Territory.

 

Article
8.

FINANCIAL PROVISIONS

 

8.1           Initial
License Fee. Within ***** after the Effective Date, Medgenics will pay to KHK an initial license fee of *****.

 

8.2           Sharing
of Development Costs.

 

8.2.1       Development
Costs.

 

(a)          The
responsibility for payment of the Development Costs incurred during the Term will be shared between Medgenics and KHK as set forth
below:

 

(i)          with
respect to the Development of the initial indication for the Licensed Product in the Field in the Territory and in the European
Union, the Parties will equally split the Development Costs incurred in accordance with a JSC-approved Development Plan up to aggregate
Development Costs of *****; provided, that the Parties acknowledge that the initial Development Plan attached to Schedule 4.2.1
currently budgets *****; and further provided, for clarity, that increasing the Development budget for the initial indication in
the Field in the Territory and the European Union requires compliance with the JDC, JSC, escalation and decision-making process
set forth in Article 3;

 

(ii)         except
for Development Costs incurred for Phase 4 Clinical Trials, if Development Costs for the initial indication in the Territory and
the European Union exceeds ***** for any reason, then Medgenics will be solely responsible to fund such excess;

 

(iii)        the
Parties will equally split the Development Costs incurred for Phase 4 Clinical Trials; and

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-39	 

     

    

 

(iv)        the
allocation of Development Costs between the Parties with respect to Development of the Licensed Product for indications beyond
the initial indication in the Field in the Territory and the European Union will be a matter for written agreement of the Parties
if the JSC approves Development of such additional indication(s).

 

(b)          Development
Costs will not include any Manufacturing-related development costs, including but not limited to the process and analytical method
developments, the comparability studies, stability program, process characterization and validation, method qualifications and
validations, or the cost incurred in connection with the Manufacture of clinical supplies of Licensed Product for Development in
the Territory and the European Union, which costs will be borne solely by Medgenics pursuant to Section 4.3.3. All payments
made by a Party to a Third Party in connection with the performance of its activities under the applicable Development Plan will
be charged as Development Costs at such Party’s actual Out-of-Pocket Costs. For the avoidance of doubt, the cost for Phase
4 Clinical Trial conducted in Territory and/or European Union will be included in Development Costs.

 

8.2.2       Reporting
of Development Costs. Within ***** after the end of each Contract Quarter, each Party will submit to the other Party a reasonably
detailed report of all actual Development Costs incurred by such Party during the prior Contract Quarter. The payee, description
of the services to which the payment relates and amount paid will be included in the report. Each Party will capture Development
Costs in its respective accounting systems.

 

8.2.3       Payment
of Development Costs. Within ***** after the delivery of both reports described in the preceding sentence, the Parties or their
respective Affiliates will make payments to each other to the extent necessary to effect the division of the Development Costs
described in Section 8.2.1 (the “True-up Payment”). An illustrative, non-binding example of the
payment required by this Section 8.2.3 is as follows: if the aggregate Development Costs incurred by both Parties in a Contract
Quarter is $5,000,000, with Medgenics having paid $3,000,000 and KHK having paid $2,000,000, then KHK will pay to Medgenics a $500,000
True-up Payment so that Medgenics will have paid $2,500,000 in Development Costs and KHK will have paid $2,500,000 in the Development
Costs for such Contract Quarter. Notwithstanding the foregoing, in no event will a Party incur Development Costs greater than the
amounts set forth in the applicable Development Plan, without the prior approval of the JSC. Medgenics consents to the payment
by an Affiliate of KHK of any and all payments payable by KHK under this Section 8.2.3.

 

8.2.4       Other
Development Costs. Except for Development Costs allocated to Medgenics in respect of the initial indication in the Field for
the Licensed Product in the European Union or that Medgenics and KHK agree to incur in respect of additional indications as set
forth in Section 8.2.1(a)(iii), KHK will be solely responsible for Development Costs incurred in Developing any Licensed
Product (a) outside the Field in the Territory and (b) outside the Territory.

 

8.3           Milestones.

 

8.3.1       Milestone
Payments. Medgenics will pay to KHK the amounts set forth below no later than ***** after the earliest date on which Medgenics
or any of its Related Parties receives written notification that the corresponding milestone event has first been achieved with
respect to a Licensed Product:

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-40	 

     

    

  

	Milestone Event	 	Payment
	***** for a Licensed Product by Medgenics or its Related Party 	 	*****
	***** for a Licensed Product by Medgenics or its Related Party 	 	*****
	***** for a Licensed Product filed with FDA by Medgenics or its Related Party	 	*****
	***** for a Licensed Product filed with EMA by Medgenics or its Related Party	 	*****

 

8.3.2           One
Time Milestone Payments. Once Medgenics has made any particular milestone payment under Section 8.3.1, Medgenics will
not be obligated to make any payment under Section 8.3.1 with respect to the re-occurrence of the same milestone, whether
or not such re-occurrence is with respect to a different or the same Licensed Product.

 

8.4           Sharing
of Profit.

 

8.4.1       Allocation.
Profit will be allocated fifty percent (50%) to each of Medgenics and KHK, such that Medgenics and KHK will each share fifty percent
(50%) of Profit with respect to Profit-Share Products.

 

8.4.2       Reconciliation.
From and after the First Commercial Sale of a Licensed Product in the Field in the Territory, the Parties will conduct a quarterly
reconciliation of Profit as follows:

 

(a)          Within
***** after the end of each Contract Quarter, Medgenics will submit to KHK a preliminary written report setting forth the following
information, estimated where necessary, revenues and expenses included in Profit for Profit-Share Products for the first two (2)
months of such Contract Quarter, including, as applicable:

 

(i)          all
sales in units and in Net Sales value of such Profit-Share Products in the Territory made by Medgenics and its Related Parties
during such two (2) month period, together with an accounting of the itemized deductions from gross invoice price to Net Sales;

 

(ii)         all
Profit-Share Product Proceeds for Profit-Share Products received from Third Parties in the Territory during such two (2) month
period;

 

(iii)        the
relevant Allowable Expenses incurred by Medgenics or its Affiliates with respect to such Profit-Share Products during such two
(2) month period; and

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-41	 

     

    

  

(iv)        good
faith estimate of revenues and expenses included in Profit for Profit-Share Products for the last month of such Contract Quarter,
for financial reporting purposes.

 

(b)          Within
***** after the end of each Contract Quarter, Medgenics will submit to KHK a final written report setting forth, as applicable:

 

(i)          all
sales in units and in Net Sales value of Profit-Share Products in the Territory made by Medgenics and its Related Parties during
such Contract Quarter, together with an accounting of the itemized deductions from gross invoice price to Net Sales;

 

(ii)         all
Profit-Share Product Proceeds for Profit-Share Products received from Third Parties in the Territory during such Contract Quarter,
and

 

(iii)        the
relevant Allowable Expenses incurred by Medgenics or its Affiliates with respect to Profit-Share Products during such Contract
Quarter.

 

8.4.3       Tax
Reporting. Together with the report submitted by Medgenics pursuant to Section 8.4.2(b), Medgenics will submit to KHK
the calculation of Profit, the amount of any taxes required to be withheld and the calculation of the net amount owed by Medgenics
to KHK in order to ensure the sharing of Profit set forth in Section 8.4.1 and the proper allocation of withholding taxes
pursuant to Section 8.6.1. The net amount payable with respect to Profit, after appropriate adjustment for any withholding
taxes, will be paid by Medgenics within ***** following receipt of invoice for such amount.

 

8.4.4       Supporting
Documents. In addition to providing the information set forth in Section 8.4.2, Medgenics will provide reasonable supporting
documentation of Allowable Expenses included in the calculation of Profit.

 

8.5           KHK
Royalties.

 

8.5.1       Royalty
Percentages. During the Term, but subject to any applicable offsets contained herein, KHK will pay to Medgenics royalties on
Royalty-Bearing Sales or Sublicensing Royalties, as applicable, on a country-by-country basis, subject to any applicable offsets
or reductions pursuant to Section 8.5.2, 8.5.3, and/or 8.5.4, at the rate of: (a) ***** (the “EU
Royalty Rate”) of (i) Royalty-Bearing Sales by KHK and its Affiliates in the Field in the European Union and
(ii) Sublicensing Royalties resulting from sales in the Field in the European Union; (b) ***** (the “KHK Territory
Royalty Rate”) of (i) Royalty-Bearing Sales by KHK and its Affiliates in the Field outside of the Territory
and outside of the European Union and (ii) Sublicensing Royalties resulting from sales in the Field outside of the Territory
and outside of the European Union; (c) ***** (the “Other Royalty Rate”) of (i) Royalty-Bearing Sales
by KHK and its Affiliates outside of the Field outside of the Territory and (ii) Sublicensing Royalties resulting from sales
outside of the Field outside of the Territory; and (d) ***** (as adjusted, if applicable, pursuant to the following sentence, the
“Territory Royalty Rate”) of Royalty-Bearing Sales by KHK and/or its Affiliates in the Territory and
Sublicensing Royalties resulting from sales in the Territory. In the event that Medgenics’ Net Sales of Licensed Products
in a country in the Territory experience a Significant Impact as a result of KHK or any of its Related Parties commercializing
Licensed Product in the Territory, the Parties will negotiate in good faith to increase the Territory Royalty Rate for such country
to offset the Significant Impact, which Territory Royalty Rate will not exceed ***** in any country.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-42	 

     

    

 

8.5.2       Third
Party License Offsets. If KHK enters into an agreement with a Third Party (other than a KHK Licensor) to obtain a license under
Third Party Technology (including without limitation under Section 9.5) that KHK reasonably believes or expects to be necessary
to Commercialize one or more Licensed Products outside the Territory or outside of the Field, then KHK may offset ***** of the
amount of commercially reasonable royalties or other payments payable by KHK to such Third Party with respect to a particular Licensed
Product against amounts KHK is obligated to pay Medgenics under Section 8.5.1 for Royalty-Bearing Sales by KHK and/or its
Affiliates and Sublicensing Royalties, provided that in no event will any such offset (a) with respect to sales in the Field
in the European Union, reduce the payments otherwise due to Medgenics pursuant to Section 8.5.1(a) in particular Contract
Years below ***** of Royalty-Bearing Sales and Sublicensing Royalties in the Field in the European Union, (b) with respect
to sales in the Field outside of the Territory and outside of the European Union, reduce the payments otherwise due to Medgenics
pursuant to Section 8.5.1(b) in particular Contract Years below ***** of Royalty-Bearing Sales and Sublicensing Royalties
in the Field outside of the Territory and outside of the European Union, (c) with respect to sales outside of the Field outside
of the Territory, reduce the payments otherwise due to Medgenics pursuant to Section 8.5.1(c) in particular Contract Years
below ***** of Royalty-Bearing Sales and Sublicensing Royalties outside of the Field outside of the Territory, and (d) with
respect to sales in the Territory, reduce the payments otherwise due to Medgenics pursuant to Section 8.5.1(d) in particular
Contract Years below ***** of Royalty-Bearing Sales and Sublicensing Royalties in the Territory; provided further that, if such
***** offset of such Third Party royalties or other payments exceeds the amount of payments withheld by KHK under this Section
8.5.2 in any Contract Quarter, the excess may be carried over as a credit on the same basis into succeeding Contract Quarters.

 

8.5.3       Claimed
Infringement of Third Party Rights Offsets. If costs and expenses and damages are incurred by the Parties in connection with
the defense of an Infringement Claim outside the Field or outside the Territory pursuant to Section 9.4, then KHK may offset
***** of such costs and expenses and damages with respect to a particular Licensed Product against amounts KHK is obligated to
pay Medgenics under Sections 8.5.1 and 8.5.2 on sales of such Licensed Product, provided that in no event will any
such offset (a) with respect to sales in the Field in the European Union, reduce the payments otherwise due to Medgenics pursuant
to Section 8.5.1(a) in particular Contract Years below ***** of Royalty-Bearing Sales and Sublicensing Royalties in the
Field in the European Union, (b) with respect to sales in the Field outside of the Territory and outside of the European Union,
reduce the payments otherwise due to Medgenics pursuant to Section 8.5.1(b) in particular Contract Years below ***** of
Royalty-Bearing Sales and Sublicensing Royalties in the Field outside of the Territory and outside of the European Union, (c) with
respect to sales outside of the Field outside of the Territory, reduce the payments otherwise due to Medgenics pursuant to Section
8.5.1(c) in particular Contract Years below ***** of Royalty-Bearing Sales and Sublicensing Royalties outside of the Field
outside of the Territory, and (d) with respect to sales in the Territory, reduce the payments otherwise due to Medgenics pursuant
to Section 8.5.1(d) in particular Contract Years below ***** of Royalty-Bearing Sales and Sublicensing Royalties in the
Territory; provided further that, if such ***** offset of such costs and expenses and damages incurred by the Parties exceeds the
amount of payments withheld by KHK under this Section 8.5.3 in any Contract Quarter, the excess may be carried over as a
credit on the same basis into succeeding Contract Quarters.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-43	 

     

    

 

8.5.4           Royalty
Reduction for Biosimilars.

 

(a)          If
a Biosimilar version(s) of any Licensed Product is commercialized in any country in which there are Royalty-Bearing Sales, then
the royalty rate payable to Medgenics pursuant to Sections 8.5.1, 8.5.2 and 8.5.3 applicable for the sale
of Licensed Products in such country will be reduced by (i) ***** applicable for the first Contract Quarter during which the market
share of such Biosimilars is ***** in such country, (ii) ***** applicable for the first Contract Quarter during which the market
share of such Biosimilars is ***** in such country, (iii) *****applicable for the first Contract Quarter during which the market
share of such Biosimilars is ***** in such country, (iv) ***** applicable for the first Contract Quarter during which the market
share of such Biosimilars is ***** in such country; and (v) ***** applicable for the first Contract Quarter during which the market
share of such Biosimilars is ***** in such country. For clarity, the reduction in royalty rates permitted pursuant to this Section
8.5.4 will be taken after any reduction taken pursuant to Section 8.5.2 and Section 8.5.3. For the avoidance
of doubt, the minimum EU Royalty Rate will be *****, each of the minimum KHK Territory Royalty Rate and the minimum Other Royalty
Rate will be ***** and the minimum Territory Royalty Rate (on a country-by-country basis) will be no less than ***** of the Territory
Royalty Rate (on a country-by-country basis) then in-effect prior to the adjustments permitted by this Section 8.5.4; provided
that, if such reduction permitted under this Section 8.5.4 exceeds the amount of payments withheld by KHK under this Section
8.5.4 in any Contract Quarter, the excess may be carried over as a credit on the same basis into succeeding Contract Quarters.

 

(b)          The
Parties will utilize a mutually-agreed (such agreement not to be unreasonably withheld, delayed, or conditioned) measure of the
market share of any relevant Biosimilars in each country where a Biosimilar version(s) of a Licensed Product is being commercialized
and will adjust the royalty rate payable to Medgenics for the sale of Licensed Products in such country every *****, to the extent
permitted pursuant to Section 8.5.4(a). If the royalty rate payable to Medgenics for the sale of Licensed Products has been
adjusted pursuant to Section 8.5.4(a), then such royalty rates in such country may not thereafter be adjusted upwards.

 

8.5.5           Reports
and Royalty Payments. Within ***** after the end of each Contract Quarter during the Term, KHK will deliver to Medgenics
a report setting forth for the previous Contract Quarter the following information on a Licensed Product-by-Licensed Product and
country-by-country basis: (a) the gross sales and Royalty-Bearing Sales of each Licensed Product, (b) the number of units sold
by KHK or its Affiliate, (c) the Sublicensing Royalty received by KHK, (d) the basis for any adjustments to the royalty payable
for the sale of each Licensed Product, (e) the royalty due hereunder for the sales of each Licensed Product, and (f) the applicable
exchange rate as determined pursuant to Section 8.6.2. The total royalty due for the sale of Licensed Products during such
Contract Quarter will be remitted at the time such report is made but no later than ***** after the end of each Contract Quarter
during the Term. Along with such reports, KHK will also provide the Sales Tracking Methodologies used to determine Royalty-Bearing
Sales outside the Field in the Territory.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-44	 

     

    

 

8.6           Payment
Provisions Generally.

 

8.6.1       Taxes
and Withholding. If Applicable Laws require withholding of income taxes or other taxes imposed upon payments set forth in Article
8, the paying Party will make such withholding payments as required and subtract such withholding payments from the payments
set forth in Article 8. The paying Party will submit appropriate proof of payment of the withholding taxes to the payee
Party within a reasonable period of time. At the request of the payee Party, the paying Party will, at the payee Party’s
cost, give the payee Party such reasonable assistance, which will include the provision of appropriate certificates of such deductions
made together with other supporting documentation as may be required by the relevant tax authority, to enable the payee Party to
claim exemption from such withholding or other tax imposed or obtain a repayment thereof or reduction thereof and will upon request
provide such additional documentation from time to time as is reasonably required to confirm the payment of tax.

 

8.6.2       Payment
and Currency Exchange. All amounts payable and calculations hereunder will be in United States dollars and will be paid by
bank wire transfer in immediately available funds to such bank account as may be designated in writing by the payee Party from
time to time. Whenever for the purposes of calculating the Profit or royalties payable under Section 8.4 or 8.5,
conversion from any foreign currency will be required, all amounts will first be calculated in the currency in which the activity
was paid or sale was recorded and then converted into United States dollars by applying the rate of exchange quoted in the New
York edition of The Wall Street Journal on the last Business Day of the paying Party of the applicable Contract Quarter.

 

8.6.3       Overdue
Payments. If any payment due under this Agreement (other than payments that are the subject of a good faith dispute between
the Parties) is overdue by more than thirty (30) days, the paying Party will pay interest to the payee Party at a rate per annum
equal to the lesser of the prime rate of interest, as reported by New York edition of The Wall Street Journal on
the last Business Day of the paying Party of the applicable Contract Quarter, or the highest rate permitted by applicable law,
calculated on the number of days such payments are paid after the date such payments are due.

 

8.6.4       Financial
Matters Relating to Existing In-Licenses.

 

(a)          All
amounts payable in respect of Profit-Share Products under the KHK In-Licenses will be paid directly by KHK or its Related Parties
to the KHK Licensor, Medgenics will reimburse KHK such amounts as defined in Section 1.89(a), and any such amounts reimbursed
by Medgenics will be treated as Allowable Expenses.

 

(b)          All
amounts payable in respect of Profit-Share Products under Medgenics In-Licenses will be paid directly by Medgenics or its Related
Parties to the applicable Medgenics Licensor and such amounts as defined in Section 1.89(b) will be treated as Allowable
Expenses to the extent paid by Medgenics or any of its Related Parties. All amounts required to be paid pursuant to Section 6.4.1
of the Medgenics In-License as a direct result of sales of any Licensed Product sold by KHK or its Related Parties will be paid
and borne solely by KHK and its Related Parties. In addition, all amounts required to be paid pursuant to Section 6.4.2 of the
Medgenics In-License as a direct result of sales of any diagnostic sold by KHK or its Related Parties will be paid and borne solely
by KHK and its Related Parties and will not be a part of Third Party Technology Costs described in Section 1.89(b).
 For avoidance of doubt, all amounts required to be paid pursuant to Section 6.4.2 of the Medgenics In-License as a direct
result of sales of any diagnostic sold by Medgenics or its Related Parties will be paid and borne solely by Medgenics and its Related
Parties and will not be a part of Third Party Technology Costs described in Section 1.89(b).

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-45	 

     

    

 

(c)          If
Medgenics or any of the Related Parties contracts with a Third Party other than Lonza, or if KHK grants a sublicense under
the KHK Technology to Medgenics’ preferred contract manufacturer pursuant to Section 7.4.1, for the supply of
the Licensed Product, and the entry into such contract triggers any payment obligation by KHK to Lonza, then Medgenics will
reimburse KHK ***** provided that any such reimbursement obligations of Medgenics will not exceed ***** per calendar year.
Such payment to Lonza will be first payable within ***** of signature of a manufacturing agreement with such Third Party or
grant of sublicense to such contract manufacturer and will continue for the duration of such manufacture by such Third Party
or sublicense. No payment made by Medgenics under this Section 8.6.4(c) will be included in Allowable Expenses.

 

(d)          Notwithstanding
anything to the contrary in Section 8.6.4(c), if Medgenics has entered into the Medgenics Lonza License Agreement prior
to the Effective Date, Medgenics may deduct ***** from the initial license fee and milestone payments payable to KHK
by Medgenics under Sections 8.1 and 8.3, *****.

 

(e)          If
Medgenics has entered into the Medgenics Lonza License Agreement prior to the Effective Date and Medgenics has an obligation to
pay an annual fee to Lonza pursuant to such agreement for conducting the process development or Manufacture of the Licensed Product
using a contract manufacturer that is not Lonza, KHK will reimburse Medgenics an amount equal to *****. For clarity, no portion
of ***** pursuant to this Section 8.6.4(e) will be subject to the deduction set forth in Section 8.6.4(d) or will
be included in Allowable Expenses.

 

8.6.5       Record-Keeping.
Each Party will keep, and will cause their respective Related Parties to keep, books and accounts of record in connection this
Agreement in sufficient detail to permit accurate determination of all figures necessary for any and all financial calculations
required by this Agreement, including without limitation all elements of Allowable Expense, Developments Costs, Net Sales, Royalty-Bearing
Sales, and Profit. Each Party will maintain, and will cause their respective Related Parties to maintain, such records for a period
of at least five (5) years after the end of the Contract Year in which they were generated.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-46	 

     

    

 

8.6.6       Audits.
Upon thirty (30) days’ prior written notice from a Party (the “Requesting Party”), the Party receiving
the written notice (the “Audited Party”) will permit an independent certified public accounting firm
of nationally recognized standing selected by the Requesting Party and reasonably acceptable to the Audited Party, to examine,
at the Requesting Party’s sole expense, the relevant books and records of the Audited Party and its Affiliates as may be
reasonably necessary to verify the amounts reporting or payable by the Audited Party to the Requesting Party. An examination by
a Requesting Party under this Section 8.6.6 will occur not more than once in any Contract Year and will be limited to the
pertinent books and records for any Contract Year ended not more than five (5) years before the date of the request. The accounting
firm will be provided access to such books and records at the Audited Party’s facility(ies) where such books and records
are normally kept and such examination will be conducted during the Audited Party’s normal business hours. The Audited Party
may require the accounting firm to sign a standard non-disclosure agreement before providing the accounting firm access to the
Audited Party’s facilities or records. Upon completion of the audit, the accounting firm will provide both the Audited Party
and the Requesting Party a written report disclosing any discrepancies in the reports submitted by the Audited Party or, as applicable,
the amounts payable under this Agreement, and in each case, the specific details concerning any discrepancies. No other information
will be provided to the Requesting Party.

 

8.6.7       Underpayments/Overpayments.
If such accounting firm concludes that additional amounts were due to the Requesting Party, the Audited Party will make such payments
as is necessary for the Requesting Party to have been paid the correct amount due under this Agreement for the audited periods.
If such underpayment exceeds five percent (5%) of the amounts that were to be paid, the Audited Party also will reimburse the Requesting
Party for all Out-of-Pocket Costs incurred in conducting the audit. If such accounting firm correctly concludes that the Audited
Party overpaid amounts due to the Requesting Party, the Requesting Party will refund such overpayments to the Audited Party within
sixty (60) days of the date the Requesting Party receives such accountant’s report so correctly concluding.

 

8.6.8       Confidentiality.
All financial information of a Party that is subject to review under this Section 8.6 will be deemed to be Confidential
Information of such Audited Party subject to the provisions of Article 10, and the Requesting Party will not disclose such
Confidential Information to any Third Party or use such Confidential Information for any purpose other than verifying payments
to be made by the Audited Party to the Requesting Party hereunder.

 

8.7           Adjustment
of FTE Rates. Effective upon each anniversary of the Effective Date, the FTE Rates will increase by the percentage increase,
if any, in the Consumer Price Index published by the United States Bureau of Labor Statistics during the most recent preceding
one (1) year period for which final data is available, and such increase will be effective for the then-current and all subsequent
FTE Costs hereunder unless and until further modified under this Section 8.7. In addition, within sixty (60) days after
the third anniversary of the Effective Date and every three (3) years thereafter, each Party will have the right to require the
other Party to conduct a salary survey in respect of FTEs and provide the result of such survey. In addition, a Party may conduct
a salary survey at its own discretion in respect of FTEs and provide such survey to the other Party. Following receipt of such
survey from each Party, the Parties may agree in writing to adjust one or more of the FTE Rates.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-47	 

     

    

 

Article
9.

INTELLECTUAL PROPERTY 

 

9.1           Ownership
of and Rights to Intellectual Property.

 

9.1.1       Medgenics
Technology. As between the Parties, Medgenics is and will remain the sole owner of the Medgenics Technology. KHK acknowledges
that certain of the Medgenics Patent Rights have been licensed to Medgenics from the Medgenics Licensor pursuant to the Medgenics
In-License.

 

9.1.2       KHK
Technology. As between the Parties, KHK is and will remain the sole owner of the KHK Technology. Medgenics acknowledges that
certain of the KHK Patent Rights have been licensed to KHK from the KHK Licensors pursuant to the KHK In-Licenses.

 

9.1.3       Joint
Inventions. The Parties will jointly own all Joint Inventions, and each will have an undivided interest in the Joint Inventions
subject to the licenses granted under this Agreement.

 

9.1.4       Inventorship.
For purposes of determining whether an invention is solely invented by Medgenics or solely invented by KHK, or a Joint Invention,
questions of inventorship will be resolved in accordance with United States patent laws.

 

9.2           Filing,
Prosecution and Maintenance of Patent Rights.

 

9.2.1       KHK
Patent Rights. This Section 9.2 will not apply to the KHK Patent Rights over which KHK has no right to control the filing,
prosecution or maintenance thereof, and, for purposes of this Section 9.2, the KHK Patent Rights over which KHK has the
right to control the filing, prosecution and maintenance thereof, including those described in clauses (a) and (c) of Section
1.47, but excluding those described in clause (b) of Section 1.47, are referred to as the “KHK Managed Patent
Rights.”

 

(a)          As
between KHK and Medgenics, KHK, through counsel of its choosing, will control (but not be obligated to control) the prosecution
(including any interferences, reissue proceedings and re-examinations) and maintenance of the KHK Patent Rights in the Territory.
Medgenics will provide all reasonable assistance required to prosecute the KHK Patent Rights in the Territory. Medgenics will have
the right to review and comment upon any substantive communications received from the applicable patent offices with respect to
the KHK Managed Patent Rights, including, but not limited to, official actions, examination reports, documents relating to patentability
and/or amendment or cancellation of the claims, and documents related to patent term adjustment and patent term extension. KHK
will consider all comments received from Medgenics with respect to the KHK Managed Patent Rights and will comply with all reasonable
requests. In addition, Medgenics will have the right to review and comment upon any substantive communications that KHK plans to
make to an applicable patent office in the Territory with respect to the KHK Managed Patent Rights, including, but not limited
to, draft responses to official actions, draft responses to examination reports, drafts relating to amendment or cancellation of
the claims, and drafts relating to patent term adjustment and/or extension. KHK will provide Medgenics with a copy of each such
communication or filing reasonably in advance of submitting such communication or filing to the relevant patent authority. KHK
will consider all comments received from Medgenics and will comply with all reasonable requests. In addition to the above, KHK
will keep Medgenics reasonably informed with respect to all such prosecution and maintenance activities to which KHK has access,
including written communications with patent office officials, and consult with Medgenics regarding such matters, including the
planned abandonment of claims thereof.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-48	 

     

    

 

(b)          At
Medgenics’ sole cost and expense, KHK will keep Medgenics reasonably informed with respect to all prosecution and maintenance
activities concerning Patent Rights outside the Territory that correspond to the KHK Patent Rights. Medgenics will have the right
to review any substantive communications received from the applicable patent offices with respect to the KHK Managed Patent Rights,
including, but not limited to, official actions, examination reports, documents relating to patentability and/or amendment or cancellation
of the claims, and documents related to patent term adjustment and patent term extension. In addition, Medgenics will have the
right to review any substantive communications that KHK plans to make to an applicable patent office outside of the Territory with
respect to the KHK Managed Patent Rights, including, but not limited to, draft responses to official actions, draft responses to
examination reports, drafts relating to amendment or cancellation of the claims, and drafts relating to patent term adjustment
and/or extension.

 

(c)          If
KHK determines in its sole discretion to abandon or not maintain any KHK Managed Patent Rights, in one or more country(ies) or
in the entire Territory, then KHK will provide Medgenics with at least sixty (60) days prior written notice of such determination
to abandon or cease maintenance (or such other longer period of time reasonably necessary to allow Medgenics to assume such responsibilities).
If KHK provides such a notification, then Medgenics will have the right (but not the obligation), to control the prosecution and
maintenance of any such KHK Managed Patent Rights in its sole discretion and at Medgenics’ sole cost and expense by providing
KHK with notice thereof within such sixty (60) day period. In the event that Medgenics so elects to control the prosecution and
maintenance of any KHK Managed Patent Rights, then in the concerned country(ies) or in the entire Territory, as applicable, KHK
will provide all reasonable assistance required to prosecute such KHK Managed Patent Rights in the concerned country(ies) or in
the entire Territory, at Medgenics’ sole cost and expense, including allowing Medgenics to exercise all rights of KHK under
the KHK In-License with LJI relevant to prosecution and maintenance of the KHK Managed Patent Rights. KHK will have the right to
review and comment upon any substantive communications and filings made by Medgenics with respect to the prosecution of such KHK
Managed Patent Rights before they are sent to any patent offices in the entire Territory. Medgenics will provide KHK with a copy
of each such communication or filing reasonably in advance of submitting such communication or filing to the relevant patent authority.
With respect to all such prosecution and maintenance Medgenics will keep KHK reasonably informed with respect to such activities
(including by providing KHK with access to all filings and correspondence with and from any patent offices or officials upon request
by KHK), and consult with KHK regarding such matters, including the abandonment of claims thereof

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-49	 

     

    

 

(d)          Notwithstanding
anything to the contrary in this Agreement (including Section 9.3.1(a)), the following terms and conditions will apply with
respect to the KHK Patent Rights: (i) with respect to those KHK Patent Rights solely owned by LJI, LJI and KHK will have the
joint right to control the filing, prosecution and maintenance of such KHK Patent Rights, including the extension of the patent
term(s) of such KHK Patent Rights, and if both LJI and KHK determine in their sole discretion to abandon or not maintain such KHK
Patent Rights, then Medgenics will have the right, subject to Section 9.3.1(a) and the other applicable terms and conditions
of this Agreement, to control the prosecution and maintenance of any such KHK Patent(s) and KHK will request LJI to provide all
reasonable assistance required to prosecute and maintain such KHK Patent Rights; and (ii) with respect to those KHK Patent
Rights jointly owned by LJI, on the one hand, and KHK and/or its Affiliates, on the other hand, in the event that both KHK and
Medgenics determine in their sole discretion to abandon or not maintain any such KHK Patent(s), then (A) LJI will have the right
to control the filing, prosecution and maintenance (including, without limitation, the extension of the patent term(s)) of such
KHK Patents, and (B) all rights and licenses granted to KHK under the LJI Agreement (and therefore the sublicense to Medgenics
under this Agreement) in and to such KHK Patent(s) will immediately terminate.

 

(e)          Notwithstanding
anything to the contrary in this Agreement, to the extent that KHK does not have the right to control or participate in the prosecution
or maintenance of Patent Rights under a KHK In-License, no right to prosecute or maintain such Patent Rights are granted to Medgenics
by this Agreement.

 

(f)          All
information, if any, exchanged between the Parties or between KHK’s outside patent counsel and Medgenics regarding preparation,
filing, prosecution or maintenance of the KHK Patent Rights will be deemed Confidential Information of KHK. In addition, the Parties
acknowledge and agree that, with regard to such preparation, filing, prosecution and maintenance of the KHK Patent Rights, the
interests of the Parties as licensor and licensee are to obtain the strongest patent protection possible, and as such, are aligned
and are legal in nature. The Parties agree and acknowledge that they have not waived, and nothing in this Agreement constitutes
a waiver of, any legal privilege concerning the KHK Patent Rights including without limitation, privilege under the common interest
doctrine and similar or related doctrines.

 

9.2.2       Joint
Inventions. With respect to any potentially patentable Joint Invention, the Parties will meet and agree upon which Party will
lead (in a joint effort with the other Party) the preparation, filing, prosecution (including any interferences, reissue proceedings
and reexaminations) and maintenance of patent applications covering such Joint Invention (any such patent application and any patents
issuing therefrom a “Joint Patent”) in any jurisdiction. Joint Patents are included within both the KHK
Technology and Medgenics Technology and within the licenses granted to each Party hereunder. The Party that leads prosecution of
a patent application in the Joint Patents (the “Prosecuting Party”) will provide the other Party reasonable
opportunity to review and comment on such prosecution efforts regarding the applicable Joint Patents in the particular jurisdictions,
and such other Party will provide the Prosecuting Party reasonable assistance in such efforts, including providing any necessary
powers of attorney and executing any other required documents or instruments for such prosecution. The Prosecuting Party will provide
the other Party with a copy of all material communications from any patent authority in the applicable jurisdictions regarding
the Joint Patent being prosecuted by such Party, and will provide drafts of any material filings or responses to be made to such
patent authorities a reasonable amount of time in advance of submitting such filings or responses. In particular, each Party agrees
to provide the other Party with all information necessary or desirable to enable the other Party to comply with the duty of candor/duty
of disclosure requirements of any patent authority. Either Party may determine that it is no longer interested in supporting the
continued prosecution or maintenance of a particular Joint Patent in a country or jurisdiction, in which case: (i) the disclaiming
Party will no longer be obligated to pay any costs for filing, prosecution or maintenance thereof; (ii) the disclaiming Party
will, if requested in writing by the other Party, assign its ownership interest in such Joint Patent in such country or jurisdiction
to the other Party for no additional consideration and (iii) if such assignment is effected, any such Joint Patent would thereafter
be deemed a patent of Medgenics in the case of assignment to Medgenics, or a patent of KHK in the case of assignment to KHK.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-50	 

     

    

 

9.2.3       New
Inventions. Medgenics will retain ownership of, and be entitled to file patents (in its sole discretion) in its name, on all
Medgenics Inventions, and KHK will retain ownership of, and be entitled to file patents (in its sole discretion) in its name, on
all KHK Inventions. All the foregoing will be included in the license granted by each Party to the other Party in Article 7.
Each Party will disclose any such inventions or improvements to the other Party within ***** of filing a patent application claiming
the Invention.

 

9.2.4       Cooperation.
Each Party hereby agrees: (a) to make its employees, agents and consultants reasonably available to the other Party (or to the
other Party’s authorized attorneys, agents or representatives), to the extent reasonably necessary to enable such Party to
undertake patent prosecution as contemplated by this Agreement; (b) to cooperate, if necessary and appropriate, with the other
Party in gaining patent term extensions wherever applicable to Patent Rights that are subject to this Agreement; and (c) to endeavor
in good faith to coordinate its efforts with the other Party to minimize or avoid interference with the prosecution and maintenance
of the other Party’s patent applications that are subject to this Agreement.

 

9.2.5       Patent
Costs. The Parties will each be responsible for paying fifty percent (50%) of the costs and expenses of filing, prosecuting
and maintaining the KHK Patent Rights, the Medgenics Patent Rights described in clause (a) of Section 1.62, and the Joint
Patents, in the Territory and in the European Union. During the Term, if KHK agrees in writing, the Parties will add to Schedule
1.62 the patents described in clauses (b) and (c) of Section 1.62, and thereafter, the costs and expenses of filing,
prosecuting and maintaining of each such patent will be shared by the Parties. For clarity, costs and expenses outside of the Territory
and outside of the European Union will be borne solely by KHK for the KHK Patent Rights, solely by Medgenics for the Medgenics
Patent Rights, and equally by each Party for the Joint Patents.

 

9.3           Enforcement
of Patent Rights.

 

9.3.1       Notification.
Each Party will promptly report in writing to the other Party during the Term any (a) known or suspected infringement by a Third
Party of any KHK Patent Rights, Medgenics Patent Rights or Patent Rights covering Joint Inventions or (b) unauthorized use or misappropriation
by a Third Party of any Confidential Information, including KHK Know-How or Medgenics Know-How, of which it becomes aware, and
will provide the other Party with all available evidence supporting such infringement or unauthorized use or misappropriation.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-51	 

     

    

 

9.3.2       Rights
to Enforce. KHK will have the right, but not the obligation, to take any reasonable measures it deems appropriate to: (a) stop
infringing activities described in Section 9.3.1 in respect of the KHK Technology in the Territory including initiating
or prosecuting an infringement or other appropriate suit or action against the alleged infringer, but not granting adequate rights
and licenses necessary for continuing such activities by the alleged infringer or (b) defend the KHK Technology in the Territory
against any declaratory judgment, opposition, patentability or invalidity actions (“Defensive Actions”).
KHK may request that Medgenics grant such adequate rights and licenses; provided that Medgenics will have no obligation to grant
any such rights or licenses; and provided further that upon making such request, Medgenics will have the right to participate in
all negotiations with the alleged infringer concerning such adequate rights and licenses. Before KHK takes any action to stop the
infringing activity against an alleged infringer of the KHK Technology in the Territory, KHK will consult in good faith with Medgenics
concerning the alleged infringement, including selection of counsel, litigation strategy, litigation risks, the damage being caused
to KHK and/or Medgenics and any other matter relevant to enforcement of the KHK Technology against the alleged infringer in the
Territory. In particular, KHK will consider in good faith a request from Medgenics to not take any actions to enforce the KHK Technology
against the alleged infringer in the Territory and only take such actions, in light of such request from Medgenics, if KHK is suffering
material harm from the infringement in the Territory. Subject to the provisions of the LJI Agreement, in the event that KHK elects
to not take action or cease action with respect to the KHK Managed Patent Rights pursuant to this Section 9.3.2 with respect
to the Territory, including declining or ceasing to defend Defensive Actions, KHK will so notify Medgenics in writing of its intention
***** prior to any deadlines by which an action must be taken to establish, preserve or maintain any enforcement rights or defend
or continue to defend the Defensive Action, and, subject to Section 9.3.4, Medgenics will have the right, but not the obligation,
to take any such reasonable measures to stop such infringing activities by such alleged infringer or defend the Defensive Action,
in which event, upon Medgenics’ request, KHK will exercise its rights under the LJI Agreement to the extent necessary for
the enforcement or defense of KHK Managed Patent Rights that are subject to the LJI Agreement.

 

9.3.3       Procedures;
Expenses and Recoveries. The Party having the right to initiate any infringement suit or defend a Defensive Action under Section
9.3.2 (the “Controlling Party”) will have the sole and exclusive right to select counsel for and
control any such suit or Defensive Action. The expenses of the suit or the Defensive Action, including attorneys’ fees and
court costs and reasonable Out-of-Pocket Costs of the other Party (the “Cooperating Party”) in rendering
assistance requested by the Controlling Party (“Enforcement Expense”) will be *****. If required under
Applicable Law in order for the Controlling Party to initiate and/or maintain such suit or to defend the Defensive Action, or if
either Party is unable to initiate or prosecute such suit or defend the Defensive Action solely in its own name or it is otherwise
advisable to obtain an effective legal remedy, in each case, the other Party will join as a party to the suit or Defensive Action
and will execute and cause its Affiliates to execute all documents necessary for the Controlling Party to initiate litigation to
prosecute and maintain such action or defend the Defensive Action. In addition, at the Controlling Party’s request, the Cooperating
Party will provide reasonable assistance to the Controlling Party in connection with an infringement suit *****. The Cooperating
Party will have the right to participate and be represented in any such suit by its own counsel at its own expense. If the Parties
obtain from a Third Party, in connection with such suit, any damages, license fees, royalties or other compensation (including
any amount received in settlement of such litigation) (“Recoveries”) in the Territory, such amounts will
be *****. A Cooperating Party may choose not to share the Enforcement Expense, provided however that in such case such Cooperating
Party will not be entitled to receive any of the Recoveries. For clarity, (a) KHK will offer Medgenics the opportunity to
fund its share of the Enforcement Expense with respect to any suit initiated by KHK in the European Union and, if Medgenics elects
to fund such Enforcement Expense, Medgenics will be entitled to an equal share in the Recovery received in respect of any such
suit, and (b) KHK will have the sole right to take action and earn all Recoveries outside of the Territory and the European Union.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-52	 

     

    

 

9.3.4       LJI
Enforcement Rights. The Parties acknowledge and agree that in the event that *****, LJI will have the right but not the obligation
under the LJI Agreement to bring, defend, or maintain any appropriate suit or action involving such infringement or Defensive Action
at its own cost and expense against alleged infringers and to defend such KHK Patent Rights from Defensive Actions. Subject to
the foregoing, if LJI finds it necessary or reasonably desirable to join Medgenics and/or KHK into such suit or action, Medgenics
and/or KHK will execute all papers and perform such other acts as may be reasonably required, and Medgenics and/or KHK, at their
respective options, may be represented by respective counsel(s) of their own choice, provided that (a) *****, and (b) if
any amount is recovered on any such action or suit, whether by judgment or settlement (any such settlement requiring the consent
of KHK), the balance of any such recovery will be paid to or retained ***** (including, for clarity, the LJI ***** set forth on
Schedule 1.43) in respect of the applicable KHK Patent Right(s) and Licensed Product(s), after reimbursement for the reasonable
attorneys’ fees incurred with respect to such suit or action by LJI, KHK and Medgenics.

 

9.4           Claimed
Infringement of Third Party Rights.

 

9.4.1       Notice.
In the event that a Third Party at any time provides written notice of a claim to, or brings an action, suit or proceeding against,
any Party, or any of such Party’s respective Related Parties, claiming infringement of such Third Party’s Patent Rights
or unauthorized use or misappropriation of such Third Party’s Know-How, based upon an assertion or claim arising out of the
Development, Manufacture or Commercialization of a Licensed Product (each, an “Infringement Claim”),
such Party will promptly notify the other Party of the Infringement Claim or the commencement of such action, suit or proceeding,
enclosing a copy of the Infringement Claim and all papers served. Each Party agrees to make available to the other Party its advice
and counsel regarding the technical merits of any such claim at no cost to the other Party and to offer reasonable assistance to
the other Party at no cost to the other Party.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-53	 

     

    

 

9.4.2       Right
to Defend. Medgenics will have the right, but not the obligation, to defend any Infringement Claim brought against either Party
or any of its Related Parties arising out of the Development, Manufacture or Commercialization of a Licensed Product in the Field
in the Territory. KHK will have the right, but not the obligation, to defend any Infringement Claim brought against either Party
or any of its Related Parties arising out of the Development, Manufacture or Commercialization of a Licensed Product outside the
Field and outside the Territory.

 

(a)          Procedure.
The Party having the obligation or first right to defend an Infringement Claim
in which either Party is named as defendant will be referred to as the “Defending Party.”
The Defending Party will have the sole and exclusive right to select counsel for any Infringement Claim; provided that it will
consult with the other Party with respect to selection of counsel for such defense. The Defending Party will keep the other Party
informed, and will from time to time consult with the other Party regarding the status of any such claims and will provide the
other Party with copies of all documents filed in, and all written communications relating to, any suit brought in connection with
such claims. The other Party will also have the right to participate and be represented in any such claim or related suit, at its
own expense. The other Party will have the sole and exclusive right to control the defense of an Infringement Claim in the event
the Defending Party fails to exercise its right to assume such defense within ***** following written notice from the other Party
of such Infringement Claim. No Party will settle any claims or suits involving rights of another Party without obtaining the prior
written consent of such other Party, which consent will not be unreasonably withheld. Any recoveries by the Defending Party of
attorneys’ fees or costs in defense of a claim in the Territory under this Section 9.4, and any sanctions awarded
to Defending Party and against a party asserting a claim in the Territory being defended under this Section 9.4, will be
*****. The Parties will ***** be responsible for paying ***** of the costs and expenses and damages incurred by the Parties in
connection with defense of such Infringement Claim in the Territory. The costs and expenses and damages incurred by the Parties
in connection with defense of such Infringement Claim outside the Field or outside the Territory will be allocated between the
Parties as follows: *****. Medgenics and KHK will have the right to take action to invalidate Third Party’s patents which
would be infringed by the activity under this Agreement. The cost and expenses of such action will be shared in the same way as
set forth above.

 

9.4.3       Limitations.
EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN SECTION 12.10, THE FOREGOING STATES THE ENTIRE RESPONSIBILITY OF KHK AND MEDGENICS,
AND THE SOLE AND EXCLUSIVE REMEDY OF KHK OR MEDGENICS, AS THE CASE MAY BE, IN THE CASE OF ANY CLAIMED INFRINGEMENT OF ANY THIRD
PARTY PATENT RIGHTS OR UNAUTHORIZED USE OR MISAPPROPRIATION OF ANY THIRD PARTY’S KNOW-HOW.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-54	 

     

    

 

9.5           Third
Party Technology. If either Party reasonably determines that any Third Party Technology is reasonably necessary for
the Development, Manufacture, or Commercialization of a Licensed Product in the Field, then such Party will notify the JSC. If
the JSC determines that it needs to obtain one or more licenses from one or more Third Parties for such activities, the JSC will
determine which Party will negotiate the most favorable license. The chosen Party will obtain a license to such Third Party Technology,
with the right to sublicense, in order to permit both Parties to conduct such activities. Subject to the foregoing, the terms and
conditions involved in obtaining such rights will be determined at such chosen Party’s sole discretion. If such chosen Party
elects not to obtain rights to such Third Party Technology, or is unsuccessful in obtaining such Third Party Technology, then the
other Party will have the right (but not the obligation) to negotiate and obtain rights from such Third Party at its sole discretion
and expense. Notwithstanding anything to the contrary in this Section 9.5, Medgenics will pay to a Third Party any and all
royalties and other payments pursuant to any agreement under which a Party acquires rights to intellectual property that would
otherwise block the Development and/or Commercialization of a Profit-Share Product in the Field in the Territory. Any such payments
will be included in Third Party Technology Costs and, for clarity, will be included in Allowable Expenses for the applicable Profit-Share
Product. The costs outside the Field will be borne solely by KHK, provided that such costs will be subject to royalties reduction
to Medgenics in accordance with Section 8.5.2. Notwithstanding the foregoing, with respect to any lump sum payment under
any such agreement that is made with respect to a license covering countries or jurisdictions both inside and outside of the Territory,
the Parties will negotiate and decide in good faith the allocation of the payment based on the scope and territory of the acquired
rights.

 

9.6           Other
Infringement Resolutions.

 

9.6.1       Notice
of Third Party Applications. In the event of a dispute or potential dispute that has not ripened into a demand, claim or suit
of the type described in Sections 9.3 and 9.4, the same principles governing control of the resolution of the dispute,
consent to settlements of the dispute, and implementation of the settlement of the dispute (including sharing in and allocating
the payment or receipt of damages, license fees, royalties and other compensation) will apply. Notwithstanding anything herein
to the contrary, within ***** after Regulatory Approval is achieved with respect to a BLA for a Licensed Product in the Territory
(or such shorter time as the Parties agree in the case of a Licensed Product in the Territory that does not earn reference product
exclusivity under the PHS Act), the Parties will consult as to potential strategies with respect to unexpired Patent Rights Controlled
by either Party that potentially could be asserted if an unlicensed person engaged in the making, using, offering to sell, selling,
or importing into the United States of a product described in a Biosimilar Application filed by a Third Party applicant (a “Section
351(k) Applicant”).

 

9.6.2       Cooperation
and Enforcement. If either Party who is the reference product sponsor of the Licensed Product within the meaning of section
351(l)(1)(A) of the PHS Act (“Reference Product Sponsor”) receives notice of a Biosimilar Application
filed by a Section 351(k) Applicant that references such Licensed Product and related manufacturing information in accordance with
section 351(l)(2)(A) of the PHS Act or receives a notice of commercial marketing in accordance with section 351(l)(8)(A) of the
PHS Act, then such Party will provide notice to the other Party, and the Parties will discuss and cooperate with each other in
determining the Reference Product Sponsor’s course of action with regard to (a) engaging in the information exchange
provisions of the Biologics Price Competition and Innovation Act of 2009, Section 351(k) of the Public Health Service Act, as may
be amended, supplemented, or replaced (the “BPCIA”), including providing a list of patents that relate
to the relevant Licensed Product, (b) engaging in the patent resolution provisions of the BPCIA, and (c) determining
which patents will be the subject of immediate patent infringement action under Section 351(l)(6) of the BPCIA. In the event that
the Parties do not agree with respect to the exercise of any such rights, KHK will make the final determination with respect thereto,
including without limitation with respect to (a), (b) and (c) above. If any patent litigation commences with respect to a
Biosimilar Application filed by a Section 351(k) Applicant that references such Licensed Product, then the provisions of Section
9.3 will thereafter apply as if such Section 351(k) Applicant were an infringer or suspected infringer.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-55	 

     

    

 

9.7          Product
Trademarks.

 

9.7.1       Product
Trademarks in the Territory. Medgenics will own the Product Trademarks for each Licensed Product in the Territory and will
be solely responsible for filing and maintaining the Product Trademarks in the Territory (including payment of costs associated
therewith). Medgenics hereby grants to KHK a non-exclusive, nontransferable (except as provided in Section 13.3) license,
with the right to grant sublicenses solely in accordance with Section 7.4, under the Product Trademarks, to use and display
the Product Trademarks in connection with Commercialization outside the Territory.

 

9.7.2       Product
Trademarks Outside the Territory. KHK will own the Product Trademarks for each Licensed Product outside the Territory and will
be solely responsible for filing and maintaining the Product Trademarks outside the Territory (including payment of costs associated
therewith).

 

9.7.3       Each
Party agrees to (a) conduct its business in a manner that will not damage the reputation or integrity of the Trademarks of the
other Party, (b) conduct its business in a manner that will not damage in any way the goodwill associated with the Trademarks of
the other Party, (c) use the Trademarks of the other Party in a manner that will not cause a negative impact upon the good name
of such other Party, (d) conduct its business in compliance with all applicable trademark Laws and (e) use the other Party’s
Trademarks only in accordance with this Agreement.

 

9.8           Patent
Term Extensions. The Parties will use reasonable efforts to obtain all available supplementary protection certificates
(“SPC”) and other extensions of Patent Rights. Each Party will execute such authorizations and other
documents and take such other actions as may be reasonably requested by the other Party to obtain such extensions. The Parties
will cooperate with each other in gaining patent term restorations, extensions and/or SPCs wherever applicable to Patent Rights.
The Party first eligible to seek patent term restoration or extension of any such Patent Rights or any SPC related thereto will
have the right to do so; provided that if in any country the first Party has an option to extend the patent term for only one of
several patents, the first Party will consult with the other Party before making the election. If more than one patent is eligible
for extension or patent term restoration, KHK will select in good faith a strategy that will maximize patent protection and commercial
value for each Licensed Product. All filings for such extensions and certificates will be made by the Party to whom responsibility
for prosecution and maintenance of the Patent Rights are assigned, provided that in the event that the Party to whom such responsibility
is assigned elects not to file for an extension or SPC, such Party will (a) inform the other Party of its intention not to file
and (b) grant the other Party the right to file for such extension or SPC in the patentee’s name, and (c) provide all necessary
assistance in connection therewith.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-56	 

     

    

 

9.9           Patent
Marking. Medgenics (and its Related Parties) will mark Licensed Products marketed and sold by Medgenics (and/or its
Related Parties, as applicable) with appropriate numbers of the KHK Patent Rights printed on the appropriate portion of the packaging.
Without limiting the foregoing, Medgenics shall mark each Licensed Product sold or offered for sale by or on behalf of Medgenics
with the patent number or numbers of any issued patents encompassed within the KHK Patent Rights solely owned by LJI, if applicable,
and Medgenics shall ensure that the content, form, location and language of such markings is in accordance with the applicable
laws and practices of each jurisdiction in which the Licensed Products are made, used or sold.

 

Article
10.

CONFIDENTIALITY

 

10.1         Confidentiality.

 

10.1.1     Confidential
Information. All Confidential Information disclosed by or on behalf of a Party (together with its Affiliates, the “Disclosing
Party”) to the other Party (together with its Affiliates, the “Receiving Party”) during
the Term will be used by the Receiving Party solely in connection with the activities contemplated by this Agreement, will be maintained
in confidence by the Receiving Party and will not otherwise be disclosed by the Receiving Party to any other person, firm, or agency,
governmental or private (other than a Party’s Affiliates or as set forth in Section 10.1.2), without the prior written
consent of the Disclosing Party, except to the extent that the Confidential Information (as determined by competent documentation):

 

(a)          was
known or used by the Receiving Party without restriction as to its use or disclosure prior to its date of disclosure to the receiving
Party; or

 

(b)          either
before or after the date of the disclosure to the Receiving Party is lawfully disclosed to the Receiving Party without restriction
as to its use or disclosure by sources other than the Disclosing Party rightfully in possession of the Confidential Information;
or

 

(c)          either
before or after the date of the disclosure to the Receiving Party becomes published or generally known to the public (including
information known to the public through the sale of products in the ordinary course of business) through no fault or omission on
the part of the Receiving Party or its sublicensees; or

 

(d)          is
independently developed by or for the Receiving Party without reference to or reliance upon the Confidential Information.

 

All obligations of confidentiality
imposed under this Article 10 will expire five (5) years following termination of this Agreement.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-57	 

     

    

 

10.1.2     Required
Disclosures. Section 10.1.1 will not preclude the Receiving Party from disclosing Confidential Information to the extent
such Confidential Information is required to be disclosed by the Receiving Party to comply with Applicable Laws, to defend or prosecute
litigation or to comply with governmental regulations, provided that the Receiving Party provides prior written notice of such
disclosure to the Disclosing Party and takes reasonable and lawful actions to avoid and/or minimize the degree of such disclosure.
If a public disclosure is required by any Applicable Laws, including, without limitation, in a filing with the Securities and Exchange
Commission or submission to an exchange on which any securities of a Party is listed, the disclosing Party will provide copies
of the disclosure (but shall be permitted to redact or omit portions of any filing, submission or disclosure not relevant to this
Agreement) reasonably in advance of such filing or other disclosure, for the non-disclosing Party’s prior review and comment
and to allow the other Party a reasonable time to object to any such disclosure or to request confidential treatment thereof. The
disclosing Party will negotiate in good faith with the applicable Regulatory Authority concerning the confidential treatment request.
If the disclosure is substantially similar to prior disclosures made by the Party and for which the obligations of this provision
have been satisfied, the disclosing Party need not share such disclosure ahead of it being made.

 

10.1.3     Permitted
Disclosures. KHK and Medgenics each agree that they will provide Confidential Information received from the other Party only
to their respective directors, officers, employees, consultants, suppliers, sublicensees, collaborators and advisors, and to those
of such Party’s Related Parties, who have a need to know for such Party’s development, manufacture, and commercialization
of Licensed Products in accordance with this Agreement, including in connection with Regulatory Filings and obtaining Regulatory
Approvals, provided that such Third Parties are bound by confidentiality obligations at least as strict as this Article 10.
In addition, each Party may not disclose the terms of this Agreement (to the extent such terms are confidential) to any Third Party
except to actual or prospective lenders, investors, acquirers, licensees/sublicensees or strategic partners (including the KHK
Licensors and Medgenics Licensor) or to a Party’s accountants, attorneys and other professional advisors; provided that such
disclosures will be subject to continued confidentiality obligations at least as strict as this Article 10.

 

10.2         Publication
Review.

 

10.2.1     Publications
by the Parties. Subject to Section 10.2.2 and except as required by Applicable Law, during the Term, each Party agrees
that, unless explicitly authorized in this Agreement, it will not without the prior written consent of the other Party, which consent
will not be unreasonably withheld, conditioned or delayed, file patent application, issue any press release, make any public announcement,
or issue any scientific or other presentations or publications, with respect to the results of any Development work relating to
this Agreement without the opportunity for prior review by the other Party. With respect to any such proposed publications or presentations
by one of the Parties, each Party will provide to the other Party for information and review any (a) abstracts, posters and slide
presentations that the Party proposes prior to any scientific meetings and the other Party will provide feedback to the publishing
Party within ten (10) of its Business Days of its receipt of such abstracts, posters and slide presentations, and (b) primary and
final manuscripts and review articles that the Party proposes prior to journal submission and the other Party will provide feedback
within fifteen (15) of its Business Days of its receipt of such manuscript or article. Each Party agrees, upon request from the
other Party, not to submit any abstract or manuscript for publication or to make any scientific presentation until the other Party
is given up to forty-five (45) days from the date of such written request to seek appropriate patent protection for any material
in such publication or presentation which it reasonably believes is patentable. Once such abstracts, manuscripts or presentations
have been reviewed by the other Party and have been approved for publication, the same abstracts, manuscripts or presentations
do not have to be provided again to the other Party for review for a later submission for publication. Expedited reviews for abstracts
or poster presentations may be arranged if mutually agreeable to the Parties. The other Party also will have the right to require
that its Confidential Information that may be disclosed in any such proposed publication or presentation be deleted prior to such
publication or presentation.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-58	 

     

    

 

10.2.2     Publications
by Third Parties. Notwithstanding Section 10.2.1, the Parties understand and agree that any restrictions on scientific
or other presentations or publications will not be construed to prohibit the clinical investigators of any clinical trials conducted
under this Agreement (including without limitation CHOP), from making scholarly publications, manuscripts, abstracts, oral presentations
or other disclosures with respect to the results of any Development work, including without limitation clinical data resulting
from such clinical trials (“Publications”); provided that Medgenics will ensure that (a) any such
clinical investigator must agree to submit to KHK for its review and comment, a copy of any proposed Publication, abstract or other
disclosure resulting from such activities, simultaneous with submission of the same to Medgenics and at least forty-five (45) days
prior to any such presentation or publication, (b) such publication will not contain any references to, or otherwise disclose
any of, the Confidential Information (other than clinical data) without KHK’s prior written consent, and (c) at KHK’s
request, such clinical investigator will, for a reasonable period of up to ninety (90) days from initial delivery to KHK, delay
revealing any subject matter included in the clinical data in any publication or disclosure in order to permit the filing of patent
applications.

 

10.3         Public
Announcements and Use of Names. Except for public disclosures (a) resulting from the
issuance of one or more press releases to be mutually-agreed upon by the Parties, (b) otherwise permitted under this Article
10 or (c) required by Applicable Law or by the rules and regulations of any securities exchange on which a Party’s
securities are traded, neither Party will disclose any publicity, news release or public announcements,
written or oral, whether to the public or press, stockholders or otherwise, relating to the execution of this Agreement, the subject
matter of this Agreement, any of the terms of this Agreement, or any amendment hereto without the prior written consent of the
other Party.

 

Article
11.

TERM AND TERMINATION

 

11.1         Term.
This Agreement will commence on the Effective Date and will remain in full force and effect for as long as any Licensed Product(s)
is Commercialized by either Party and/or its Related Parties, unless terminated earlier pursuant to Section 11.2 or 11.3
(the “Term”).

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-59	 

     

    

 

11.2         Termination
by KHK.

 

11.2.1     Insolvency.
To the extent permitted under Applicable Laws, KHK will have the right to terminate this Agreement in its entirety, at KHK’s
sole discretion, upon delivery of written notice to Medgenics upon the filing by Medgenics in any court or agency pursuant to any
statute or regulation of the United States or any other jurisdiction a petition in bankruptcy or insolvency or for reorganization
or similar arrangement for the benefit of creditors or for the appointment of a receiver or trustee of Medgenics or its assets,
upon the proposal by Medgenics of a written agreement of composition or extension of its debts, or if Medgenics is served by a
Third Party (and not by KHK) with an involuntary petition against it in any insolvency proceeding, upon the ninety-first (91st)
day after such service if such involuntary petition has not previously been stayed or dismissed, or upon the making by Medgenics
of an assignment for the benefit of its creditors.

 

11.2.2     Breach.
KHK will have the right to terminate this Agreement in its entirety, at KHK’s sole discretion, subject to Section 11.2.5,
upon delivery of written notice to Medgenics in the event of any material breach by Medgenics of this Agreement, provided that
such breach has not been cured within ***** after written notice of such breach and KHK’s intention to terminate is given
by KHK to Medgenics; provided, however, that if such breach relates to the failure to make a payment when due, such breach must
be cured within ***** after written notice thereof is given by KHK (except that in the case of a bona fide dispute over whether
or to what extent a payment by Medgenics to KHK is due, this Section 11.2.2 will not be triggered provided that Medgenics
will pay the amount in dispute into escrow until such dispute is resolved). Such termination will be effective upon expiration
of the applicable time period set forth in this Section 11.2.2. Subject to Section 11.2.5, any such termination of
this Agreement will become effective at the end of the applicable cure period, unless Medgenics has cured any such breach or default
prior to the expiration of such cure period, or, if such breach is not susceptible to cure within the cure period, then, KHK’s
right of termination will be suspended only if and for so long as Medgenics has provided to KHK a written plan that is reasonably
calculated to effect a cure within ***** thereafter and such plan is acceptable to KHK (such acceptance not to be unreasonably
withheld, conditioned, or delayed), and Medgenics commits to and carries out such plan as provided to KHK.

 

11.2.3     Termination
as to a Country.

 

(a)          European
Union. KHK will have the right to terminate this Agreement, solely as it relates to a particular country in the European Union
if Medgenics fails to satisfy its obligations set forth in Section 6.1.1 with respect to such country.

 

(b)          Canada.
KHK will have the right to terminate this Agreement, solely as it relates to Canada, if (a) the JSC unanimously decides to not
proceed with Development in the Field in Canada and not to obtain Regulatory Approval for the Licensed Product in the Field in
Canada or (b) Medgenics declines to proceed with Development in the Field in Canada and not to obtain Regulatory Approval for the
Licensed Product in the Field in Canada, and the JSC does not unanimously agree, in each case as set forth in Section 6.1.2.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-60	 

     

    

 

11.2.4     Termination
for Patent Challenge. If Medgenics or any of its Affiliates directly claim, or cause a Third Party to claim, or knowingly supports
(other than as may be necessary or reasonably required to assert a cross-claim or a counter-claim, or in response to a subpoena
or court or administrative law request or order), including by providing information, documents, and/or funding, a claim (a) to
the validity, scope, enforceability or patentability of any of the KHK Patent Rights in any formal legal or administrative action
or proceeding, or (b) that no Earned Royalties, Sublicense Royalties, Net Receipts, milestone payments, Patent Costs or other payments
(as such capitalized terms are defined under the LJI Agreement) are due or required to be paid to LJI under the LJI Agreement because
the applicable KHK Patents licensed by LJI to KHK under the LJI Agreement covering or claiming a Licensed Product are invalid or
unenforceable except where such KHK Patent Rights have been found to be unpatentable, invalid or unenforceable by a court or other
authority of competent jurisdiction, from which decision no appeal is taken or can be taken, or have been admitted or determined
to be invalid or unenforceable through reissue, re-examination, disclaimer or similar formal proceeding, or where a pending application
within the KHK Patent Rights has been abandoned or finally rejected (in each case, other than pursuant to a claim by KHK, Medgenics
or their respective Affiliates or by a Third Party caused by any of the foregoing entities) in any Challenge, then (x) if and to
the extent permitted by Applicable Law, ***** during and after the pendency of such Challenges from the date KHK, Medgenics, or
any of their respective Affiliates first institute or make such challenges. In such event, notwithstanding anything to the contrary
in this Agreement, (i) Medgenics will not be obligated to ***** in case such Challenges are initiated or conducted solely by or
on behalf of KHK or any of its Affiliates (in which case, KHK will be responsible for *****), and (ii) KHK will not be obligated
to ***** in case such Challenges are initiated or conducted solely by or on behalf of Medgenics or any of its Affiliates (in which
case, Medgenics will *****). ***** under this Section 11.2.4 (x) may be exercised at any time after Medgenics (or any of its Affiliates)
may have Challenged or knowingly supports (other than in response to a subpoena or court order) a Challenge to the validity, enforceability
or patentability of any of the KHK Patent Rights. If a sublicensee of Medgenics Challenges the validity, scope or enforceability
of or otherwise opposes any of the KHK Patent Rights under which such sublicensee is sublicensed, then Medgenics will, upon written
notice from KHK, promptly terminate such sublicense. “Challenge” under this Section 11.2.4 will
refer to a legal action or filing with a patent authority or tribunal or a court that could, if successful, result in a holding
of invalidity, unenforceability, or unpatentability of a patent or application within the KHK Patent Rights.

 

11.2.5     Dispute.
If Medgenics reasonably and in good faith disagrees as to whether KHK has a basis for terminating this Agreement pursuant to Section
11.2.2, Medgenics may contest the allegation in accordance with Section 13.2. It is understood and acknowledged that,
during the pendency of such a dispute, all of the terms and conditions of this Agreement will remain in effect, and the Parties
will continue to perform all of their respective obligations under this Agreement. No termination by KHK pursuant to Section
11.2.2 will be effective unless and until KHK’s right to terminate this Agreement under Section 11.2.2 has been
finally determined by arbitration in accordance with Section 13.2. Any payments that are owed one Party to the other Party
pursuant to this Agreement affected by such dispute may be paid into escrow pending resolution of the dispute, and then paid or
refunded to the appropriate party as determined pursuant to Section 13.2.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-61	 

     

    

 

11.2.6           Abandonment.
If Medgenics, in its discretion, decides to abandon all of its Development and/or Commercialization efforts with respect to the
Licensed Product, Medgenics will promptly notify KHK in writing of its intent to do so. KHK will have the right to terminate this
Agreement immediately upon receipt of such notice.

 

11.3         Termination
by Medgenics.

 

11.3.1     Insolvency.
To the extent permitted under Applicable Law, Medgenics will have the right to terminate this Agreement in its entirety, at Medgenics’
sole discretion, upon delivery of written notice to KHK upon the filing by KHK in any court or agency pursuant to any statute or
regulation of the United States or any other jurisdiction a petition in bankruptcy or insolvency or for reorganization or similar
arrangement for the benefit of creditors or for the appointment of a receiver or trustee of KHK or its assets, upon the proposal
by KHK of a written agreement of composition or extension of its debts, or if KHK is served by a Third Party (and not by Medgenics)
with an involuntary petition against it in any insolvency proceeding, upon the ninety-first (91st) day after such service if such
involuntary petition has not previously been stayed or dismissed, or upon the making by KHK of an assignment for the benefit of
its creditors.

 

11.3.2     Breach.
Medgenics will have the right to terminate this Agreement in its entirety, at Medgenics’ sole discretion, subject to Section
11.3.4, upon delivery of written notice to KHK in the event of a material breach by KHK of this Agreement, provided that such
breach has not been cured within ***** after written notice of such breach and Medgenics’ intention to terminate is given
by Medgenics to KHK; provided, however, that if such breach relates to the failure to make a payment when due, such breach must
be cured within ***** after written notice thereof is given by Medgenics (except that in the case of a bona fide dispute over whether
or to what extent a payment by KHK to Medgenics is due, this Section 11.3.2 will not be triggered provided that KHK will
pay the amount in dispute into escrow until such dispute is resolved). Such termination will be effective upon expiration of the
applicable time period set forth in this Section 11.3.2. Subject to Section 11.3.4, any such termination of this
Agreement will become effective at the end of the applicable cure period, unless KHK has cured any such breach or default prior
to the expiration of such cure period, or, if such breach is not susceptible to cure within the cure period, then, Medgenics’
right of termination will be suspended only if and for so long as KHK has provided to Medgenics a written plan that is reasonably
calculated to effect a cure within ***** thereafter and such plan is acceptable to Medgenics (such acceptance not to be unreasonably
withheld, conditioned, or delayed), and KHK commits to and carries out such plan as provided to Medgenics.

 

11.3.3     Convenience.
*****, such termination to be effective at the end of such notice period, Medgenics may terminate this Agreement as to such Licensed
Product and/or such jurisdiction for any reason or no reason, including if Medgenics, in its reasonable discretion, decides to
cease all of its Development and/or Commercialization efforts with respect to such Licensed Product in such jurisdiction.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-62	 

     

    

 

11.3.4     Dispute.
If KHK reasonably and in good faith disagrees as to whether Medgenics has a basis for terminating this Agreement pursuant to Section
11.3.2, KHK may contest the allegation in accordance with Section 13.2. It is understood and acknowledged that, during
the pendency of such a dispute, all of the terms and conditions of this Agreement will remain in effect, and the Parties will continue
to perform all of their respective obligations under this Agreement. No termination by Medgenics pursuant to Section 11.3.2
will be effective unless and until KHK’s right to terminate this Agreement under Section 11.3.2 has been finally determined
by arbitration in accordance with Section 13.2. Any payments that are owed one Party to the other Party pursuant to this
Agreement affected by such dispute may be paid into escrow pending resolution of the dispute, and then paid or refunded to the
appropriate party as determined pursuant to Section 13.2.

 

11.4         Consequences
of Termination. Upon termination of this Agreement in its entirety or with respect to a country in the Territory or
the European Union pursuant to Section 11.2.3(a) and in case of Canada pursuant to Section 11.2.3(b) (in which event
the following will apply only with respect to such country):

 

11.4.1     Reversion.
All rights and licenses granted to Medgenics in Article 7 will terminate, all rights of Medgenics under the KHK Technology
will revert to KHK, and Medgenics and its Affiliates will cease all use of the KHK Technology. Except as set forth in Sections
11.4.2 through 11.4.9, all rights and licenses granted to KHK in Article 7 will terminate, all rights of KHK
under the Medgenics Technology will revert to Medgenics, and KHK and its Affiliates will cease all use of the Medgenics Technology.

 

11.4.2     Regulatory
Filings. Medgenics will assign, and hereby does assign effective as of the effective date of such termination, to KHK all Regulatory
Filings (including all INDs and NDAs) and Regulatory Approvals and all other documents necessary to further Develop, Manufacture,
and Commercialize the Licensed Products, as they exist as of the date of such termination, (and all of Medgenics’ right,
title and interest therein and thereto). Medgenics will provide to KHK one (1) copy of the foregoing documents and Regulatory Filings,
all documents and filings contained in or referenced in any such Regulatory Filings, together with the raw and summarized data
for any preclinical and clinical studies of the Licensed Product. For clarity, KHK will have the right to use the foregoing material
information, materials and data developed by Medgenics solely in connection with KHK’s development, manufacture and commercialization
of Licensed Products. KHK will have the right to seek specific performance of Medgenics’ obligations referenced in this Section
11.4.2 and/or in the event of failure to obtain assignment, Medgenics hereby consents and grants to KHK the right to access
and reference (without any further action required on the part of Medgenics, whose authorization to file this consent with any
Regulatory Authority is hereby granted) any and all such regulatory filings for any regulatory or other use or purpose. Without
limiting the foregoing in this paragraph, to the extent applicable, Medgenics’ obligations under this Section 11.4.2
will continue with respect to all countries in the Territory and the European Union for which there is a failure to obtain assignment
of all regulatory filings and Regulatory Approvals.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-63	 

     

    

 

11.4.3     Know-How
Transfer. Medgenics will provide to KHK all data and information generated during the Term necessary for the development and/or
commercialization of the relevant Licensed Products and assign (or, if applicable, cause its Affiliate to assign) to KHK all of
Medgenics’ (and such Affiliate’s) entire right, title and interest in and to all such data and information. Medgenics
will provide to KHK the tangible embodiments of all other Know-How Controlled by Medgenics and its Affiliates in existence as of
the effective date of such termination relating to the Development, Manufacturing, and Commercialization of the Licensed Products,
including without limitation Medgenics’ manufacturing processes, techniques and trade secrets necessary for and used in the
manufacture of such Licensed Products as of the effective date of such termination and all Know-How specifically relating to any
composition, formulation, method of use or manufacture of such Licensed Products. Medgenics will grant, and hereby does grant effective
as of the effective date of such termination, to KHK a non-exclusive, irrevocable, royalty-free, transferable, sublicensable, worldwide
right and license under such Know-How for developing, making, using, importing, selling and offering for sale Licensed Products.
Medgenics will reasonably cooperate with KHK to assist KHK with understanding and using the Know How provided to KHK under this
Section 11.4.3. If Medgenics has decided to abandon all of its Development and/or Commercialization efforts with respect
to the Licensed Product, and this Agreement is terminated pursuant to Section 11.2.6, Medgenics will provide to KHK all
technology resulting from such abandoned Development and/or Commercialization efforts. KHK will have a royalty-free, irrevocable,
world-wide, unlimited license to such abandoned Development and/or Commercialization efforts including the right to sublicense
and to contract with Third Parties for further Development and/or Commercialization. 

 

11.4.4     Trademarks.
To the extent that Medgenics owns any trademark(s) (including without limitation any Product Trademarks) and/or domain names that
pertain specifically to an Licensed Product that KHK believes would be necessary for the Commercialization of a Licensed Product
(as then currently marketed, but not including any marks that include, in whole or part, any corporate name or logo of Medgenics),
Medgenics will assign (or, if applicable, cause its Affiliate to assign), and hereby does assign effective as of the effective
date of such termination, to KHK all of Medgenics’ (and such Affiliate’s) right, title and interest in and to any registered
or unregistered trademark, trademark application, trade name or internet domain name in each country.

 

11.4.5     Termination
License. Medgenics will grant, and hereby grants effective as of the effective date of such termination, to KHK a non-exclusive,
irrevocable, royalty-free, transferable, sublicensable, worldwide (excluding the countries of the Territory to which Medgenics
retains its rights) right and license under any Patent Rights owned solely by Medgenics or its Affiliates as of the effective date
of termination to the extent that such Patent Rights cover or claim the composition of matter, use, or manufacture of Licensed
Products and for the sole purpose of developing, manufacturing, and commercializing Licensed Products. Medgenics will grant to
KHK, under any Patent Rights that Medgenics’ Controls but does not own at the time of termination, to the full extent permitted
under the agreement(s) of Medgenics covering such Patent Rights, a non-exclusive, irrevocable, royalty-free (as to Medgenics),
transferable, sublicensable, worldwide (excluding the countries of the Territory to which Medgenics retains its rights) right and
license, to the extent that such Patent Rights cover or claim the composition of matter, use, or manufacture of Licensed Products
and for the sole purpose of developing, manufacturing, and commercializing Licensed Products; provided that KHK enters into a written
agreement with Medgenics with respect to each such Patent Right that (a) ensures compliance with the applicable contract between
Medgenics and its licensor including KHK agreeing to all provisions thereof that must be imposed on sublicensees, (b) requires
KHK to pay all amounts payable by Medgenics to its licensor related to KHK’s exercise or enjoyment of such rights including
milestones, royalties and patent expenses and (c) indemnifies Medgenics for any breach of such agreement between KHK and Medgenics.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-64	 

     

    

 

11.4.6     Continued
Supply. If Medgenics has any inventory of any Licensed Products suitable for use in clinical trials, Medgenics will
offer to sell such Licensed Products to KHK at ***** (but KHK will be under no obligation to purchase the foregoing inventory of
Licensed Products unless it agrees to do so in writing at such time); provided, however, that, in the event of a termination pursuant
to Section 11.3.3, *****. If Medgenics has the capability in place as of the effective date of such termination to commercially
Manufacture and supply to KHK all or part of KHK’s requirements of the applicable Licensed Products, if KHK so elects in
its sole discretion, Medgenics will use Commercially Reasonable Efforts to supply to KHK ***** as much of KHK’s requirements
of such Licensed Products (and to develop a reasonable inventory level) during such period, ***** for such Licensed Products, under
terms and conditions as may be mutually agreed between the Parties. If KHK, despite its best efforts, is unable to Manufacture,
or to secure a supply of, such Licensed Products in an amount sufficient to meet its requirements *****, Medgenics will continue
to supply such Licensed Products to KHK to the extent necessary to meet KHK’s requirements, so long as KHK continues to use
its best efforts to develop the capabilities necessary to Manufacture such Licensed Products and/or to secure a supply of such
Licensed Products.

 

11.4.7     Transfer
of Manufacturing Technology. In the event, at the time of such termination, (a) Medgenics manufactures the Licensed Products
at its own facility, Medgenics will conduct manufacturing technology transfer to KHK, and (b) if Medgenics engages a Third Party
to manufacture and supply the Licensed Products, Medgenics will, at KHK’s election, either (i) have such Third Party
conduct manufacturing technology transfer to KHK or (ii) will use reasonable efforts to assist in the transfer of such supply
arrangements to KHK.

 

11.4.8     Continuing
Obligations. Neither Party will be relieved of any obligation that accrued prior to the effective date of such termination.
All amounts due or payable to KHK that were accrued prior to the effective date of termination will remain due and payable. Except
as otherwise expressly provided herein, no additional amounts will be payable based on events occurring after the effective date
of termination; provided that the foregoing will not be deemed to limit either Party’s indemnification obligations under
this Agreement for acts or omissions incurring prior to the effective date of such termination that are the subject of such indemnification
even if the indemnification amount cannot be accrued or determined as of the effective date of such termination.

 

11.4.9     Retention
of Payments. KHK will have the right to retain all amounts previously paid to KHK by Medgenics.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-65	 

     

    

 

11.4.10   No
Compensation. KHK will not owe any compensation to Medgenics for the research, development, manufacture, or commercialization
of any Licensed Products in the event of any termination of the Agreement by KHK, without prejudice to any rights that either Party
may have to bring a claim for damages arising out of this Agreement and the termination thereof or any other amounts payable with
respect to activities conducted prior to the effective date of such termination.

 

11.4.11   Costs.
Any costs and expenses incurred by Medgenics in connection with the assignments and transfers made by Medgenics under this Section
11.4 will be borne by Medgenics.

 

11.5         Return
of Confidential Information. Upon the termination of this Agreement, each Party will promptly return to the other Party,
delete or destroy (with written notification of such destruction) all relevant records and materials in such Party’s possession
or control containing Confidential Information of the other Party; provided that such Party may keep one copy of such materials
for archival purposes only.

 

11.6         Effect
of Termination; Survival. The termination of this Agreement will not relieve the Parties of any obligation accruing
prior to such termination. The provisions of Article 10 (Confidentiality), Article 12 (Representations and Warranties;
Indemnification) and Article 13 (Miscellaneous Provisions) and Sections 7.4.3 (Effect of Termination on Sublicenses)
and 9.2.2 (Joint Inventions) will survive any termination of this Agreement. Except as set forth in this Article 11
or as otherwise set forth in this Agreement, upon termination of this Agreement all other rights and obligations cease. Any termination
of this Agreement will be without prejudice to the rights of either Party against the other accrued or accruing under this Agreement
before termination.

 

11.7         Rights
in Bankruptcy. All rights and licenses granted under or pursuant to this Agreement by either Party, including without
limitation Article 7, are, and will otherwise be deemed to be, for purposes of Section 365(n) of the U.S. Bankruptcy Code
or analogous provisions of Applicable Law outside the United States, licenses of right to “intellectual property” as
defined under Section 101 of the U.S. Bankruptcy Code or analogous provisions of Applicable Law outside the United States (hereinafter
“IP”). The Parties agree that each Party, as a licensee of such rights under this Agreement, will retain
and may fully exercise all of its rights and elections under the U.S. Bankruptcy Code or any other provisions of Applicable Law
outside the United States that provide similar protection for IP. In the event of termination of a Party pursuant to Section
11.2.1 or 11.3.1, the terminated Party hereby grants to the other Party and its Affiliates a right to obtain possession
of and to benefit from a complete duplicate of (or complete access to, as appropriate) any such IP and all embodiments of intellectual
property, which, if not already in such other Party’s possession, will be promptly delivered to it upon such other Party’s
written request therefor. The term “embodiments of intellectual property” includes all tangible, electronic or other
embodiments of rights and licenses hereunder, including all Licensed Products, all Regulatory Approval Applications and Regulatory
Approvals and rights of reference therein, and all Information related to Licensed Products, KHK Technology and Medgenics Technology,
as applicable. The terminated Party will not interfere with the exercise by the other Party or its Affiliates of rights and licenses
to IP and embodiments of intellectual property licensed hereunder in accordance with this Agreement and agrees to assist such other
Party and Affiliates of such other Party to obtain the IP and embodiments of intellectual property in the possession or control
of Third Parties as reasonably necessary or desirable for such other Party or Affiliates of such other Party to exercise such rights
and licenses in accordance with this Agreement. The Parties acknowledge and agree that milestone payments made under Section
8.3 do not constitute royalties within the meaning of U.S. Bankruptcy Code §365(n) or relate to licenses of intellectual
property hereunder.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-66	 

     

    

 

11.8         No
Limitation of Remedies. Except as herein expressly provided, notwithstanding anything to the contrary in this Agreement,
except as otherwise set forth in this Agreement, termination of this Agreement will not relieve the Parties of any liability or
obligation which accrued hereunder prior to the effective date of such termination nor prejudice either Party’s right to
obtain performance of any obligation. Each Party will be free, pursuant to Section 13.2, to seek (without restriction as
to the number of times it may seek) damages, costs and remedies that may be available under Applicable Law or in equity and will
be entitled to offset the amount of any damages and costs obtained in a final determination under Section 13.2 of monetary
damages or costs (as permitted by this Agreement) against the other Party against any amounts otherwise due to such other Party
under this Agreement. It is understood and agreed that either Party will be entitled to seek specific performance as a remedy to
enforce the provisions of this Article 11, in addition to any other remedy to which such Party may be entitled by Applicable
Law. Nothing in this Article 11 will be deemed to limit any remedy to which either Party may be entitled by Applicable Law.

 

Article
12.

REPRESENTATIONS, WARRANTIES, AND COVENANTS; DISCLAIMERS; INDEMNIFICATION

 

12.1         Mutual
Representations and Warranties. Each Party represents, warrants and covenants to the other Party that as of the Effective
Date of this Agreement:

 

(a)          Corporate
Existence and Authority. It is a company duly organized, validly existing and in good standing under the laws of its jurisdiction
of organization, and has full corporate or other power and authority to enter into this Agreement and to carry out the provisions
hereof.

 

(b)          Authorized
Execution; Binding Obligation.

 

(i)          The
execution, delivery, and performance of this Agreement and the consummation of the transactions contemplated hereby have been duly
authorized and approved by all necessary corporate action on its part; and

 

(ii)         This
Agreement has been duly executed and delivered by it and constitutes a legal, valid, and binding obligation enforceable against
it in accordance with this Agreement’s terms, except as the same may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium or other laws relating to or affecting creditors’ rights generally and by general equity principles, including
judicial principles affecting the availability of injunction and specific performance.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-67	 

     

    

 

(c)          No
Conflicts. 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 and by which it may be bound.

 

(d)          All
Consents and Approvals Obtained. Except with respect to any consent required from Lonza or Sanofi, (i) all necessary consents,
approvals and authorizations of, and (ii) all notices to, and filings by such Party with, all governmental authorities and other
persons or entities required to be obtained or provided by such Party in connection with the execution, delivery and performance
of this Agreement have been obtained and provided, except for those government approvals, if any, not required at the time of execution
of this Agreement.

 

(e)          Compliance
with Law. It will at all times comply with Applicable Laws in all material respects. Neither such Party, nor any of its employees,
officers, subcontractors, or consultants who have rendered services relating to the Licensed Products: (i) has ever been debarred
or is subject to debarment or convicted of a crime for which an entity or person could be debarred by the FDA (or subject to a
similar sanction of a Regulatory Authority) or (ii) has ever been under indictment for a crime for which a person or entity could
be so debarred.

 

12.2         KHK
Representations and Warranties. KHK represents and warrants to Medgenics that as of the Effective Date:

 

(a)          KHK
Controls the KHK Patent Rights existing as of the Effective Date and is entitled to grant the rights and licenses specified herein.
The KHK Technology existing as of the Effective Date constitute all of the Patent Rights, Know-How and Inventions Controlled by
KHK as of the Effective Date that are necessary or useful to Develop, Manufacture and Commercialize the Licensed Product. KHK has
not previously assigned, transferred, conveyed or otherwise encumbered its right, title and interest in the KHK Technology in a
manner that conflicts with any rights granted to Medgenics hereunder.

 

(b)          To
the knowledge of KHK, there is no actual or threatened infringement of the KHK Patent Rights in the Field by any Third Party that
would adversely affect Medgenics’ rights under this Agreement.

 

(c)          To
the knowledge of KHK, the KHK Patent Rights existing as of the Effective Date are subsisting and are not invalid or unenforceable,
in whole or in part; there are no claims, judgments or settlements against or amounts with respect thereto owed by KHK or any of
its Affiliates relating to the KHK Patent Rights; and no claim or litigation has been brought or threatened by any Third Party
alleging, and KHK is not aware of any reasonable basis for a claim alleging that (i) the KHK Patent Rights are invalid or
unenforceable, (ii) the KHK Patent Rights or the licensing or exploiting of the KHK Patent Rights violates, infringes or otherwise
conflicts or interferes with any intellectual property or proprietary right of any Third Party, or (iii) any Third Party other
than a KHK Licensor has any right, title, or interest in, to, and under any KHK Patent Rights.

 

(d)          To
the knowledge of KHK, KHK is not in default, and to KHK’s knowledge, none of the KHK Licensors is in default, with respect
to a material obligation under, and neither such party has claimed or has grounds upon which to claim that the other party is in
default with respect to a material obligation under, any KHK In-Licenses, and KHK has not waived or allowed to lapse any of its
rights under any KHK In-Licenses, and no such rights have lapsed or otherwise expired or been terminated.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-68	 

     

    

 

(e)          There
are no claims, judgments or settlements against or owed by KHK or its Affiliates or pending or threatened claims or litigation
relating to the KHK Technology.

 

12.3         KHK
Covenants. KHK covenants that during the Term:

 

(a)          KHK
will use Commercially Reasonable Efforts to fulfill its obligations under the KHK In-Licenses to the extent such obligations have
not been delegated to Medgenics and to the extent that failure to do so would materially adversely affect Medgenics or its rights
hereunder.

 

(b)          KHK
will not assign, transfer, convey or otherwise encumber its right, title and interest in the KHK Technology in a manner that conflicts
with any rights granted to Medgenics hereunder.

 

(c)          KHK
will not enter into any subsequent agreement with any KHK Licensor that modifies or amends any KHK In-Licenses in any way that
would materially adversely affect Medgenics’ rights or economic interest under this Agreement without Medgenics’ prior
written consent.

 

(d)          KHK
will not terminate any KHK In-Licenses in whole or in part, directly or indirectly, without Medgenics’ prior written consent
if such termination would materially affect Medgenics’ license granted hereunder; for clarity KHK may (i) terminate
any KHK In-Licenses by acquiring all of the intellectual property licensed thereunder, or (ii) terminate its obligation to
make royalty and milestone payments by making a lump-sum payment, and KHK will promptly notify Medgenics after the occurrence of
each such event.

 

(e)          KHK
will furnish Medgenics with copies of all notices received by KHK relating to any alleged breach or default by KHK under any KHK
In-Licenses within ***** after KHK’s receipt thereof and, if KHK cannot or chooses not to cure or otherwise resolve any such
alleged breach or default, KHK will so notify Medgenics within ***** thereafter.

 

12.4         Medgenics
Representations and Warranties. Medgenics represents and warrants to KHK that as of the Effective Date:

 

(a)          Medgenics
Controls the Medgenics Patent Rights existing as of the Effective Date and is entitled to grant the rights and licenses specified
herein. The Medgenics Technology existing as of the Effective Date constitute all of the Patent Rights, Know-How and Inventions
Controlled by Medgenics as of the Effective Date that are necessary or useful to Develop, Manufacture and Commercialize the Licensed
Product. Medgenics has not previously assigned, transferred, conveyed or otherwise encumbered its right, title and interest in
the Medgenics Technology in a manner that conflicts with any rights granted to KHK hereunder.

 

***** Confidential Information has
been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect
to this omitted information.

 

    	 	B-69	 

     

    

 

(b)          To
the knowledge of Medgenics, there is no actual or threatened infringement of the Medgenics Patent Rights in the Field by any Third
Party that would adversely affect KHK’s rights under this Agreement.

 

(c)          To
the knowledge of Medgenics, the Medgenics Patent Rights existing as of the Effective Date are subsisting and are not invalid or
unenforceable, in whole or in part; there are no claims, judgments or settlements against or amounts with respect thereto owed
by Medgenics or any of its Affiliates relating to the Medgenics Patent Rights; and no claim or litigation has been brought or threatened
by any Third Party alleging, and Medgenics is not aware of any reasonable basis for a claim alleging that (i) the Medgenics
Patent Rights are invalid or unenforceable, (ii) the Medgenics Patent Rights or the licensing or exploiting of the Medgenics
Patent Rights violates, infringes or otherwise conflicts or interferes with any intellectual property or proprietary right of any
Third Party or (iii) any Third Party other than the Medgenics Licensor has any right, title, or interest in, to, and under any
Medgenics Patent Rights.

 

(d)          To
the knowledge of Medgenics, the Development activities set forth in the initial Development Plan do not infringe any third party
intellectual property rights.

 

(e)          To
the knowledge of Medgenics, Medgenics is not in default, and to Medgenics’ knowledge, the Medgenics Licensor is not in default,
with respect to a material obligation under, and neither such party has claimed or has grounds upon which to claim that the other
party is in default with respect to a material obligation under, the Medgenics In-License, and Medgenics has not waived or allowed
to lapse any of its rights under any Medgenics In-License, and no such rights have lapsed or otherwise expired or been terminated.

 

(f)          There
are no claims, judgments or settlements against or owed by Medgenics or its Affiliates or pending or threatened claims or litigation
relating to the Medgenics Technology.

 

12.5         Medgenics
Covenants. Medgenics covenants that during the Term:

 

(a)          Medgenics
will not engage in any activities that use the KHK Technology in a manner that is outside the scope of the rights granted to it
hereunder.

 

(b)          All
of Medgenics’ activities related to its use of the KHK Technology, and the research, Development and Commercialization of
the Licensed Products, pursuant to this Agreement will comply with all Applicable Laws.

 

(c)          Medgenics
will use Commercially Reasonable Efforts to fulfill its obligations under the Medgenics In-License to the extent such obligations
have not been delegated to KHK and to the extent that failure to do so would materially adversely affect KHK or its rights hereunder.

 

(d)          Medgenics
will not assign, transfer, convey or otherwise encumber its right, title and interest in the Medgenics Technology in a manner that
conflicts with any rights granted to KHK hereunder.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	B-70	 

     

    

 

(e)          Medgenics
will not enter into any subsequent agreement with CHOP that modifies or amends the Medgenics In-License in any way that would materially
adversely affect KHK’s rights or economic interest under this Agreement without KHK’s prior written consent.

 

(f)          Medgenics
will not terminate the Medgenics In-License in whole or in part, directly or indirectly, without KHK’s prior written consent
if such termination would materially affect KHK’s license granted hereunder; for clarity Medgenics may (i) terminate
the Medgenics In-License by acquiring all of the intellectual property licensed thereunder, or (ii) terminate its obligation
to make royalty and milestone payments by making a lump-sum payment, and Medgenics will promptly notify KHK after the occurrence
of each such event.

 

(g)          Medgenics
will furnish KHK with copies of all notices received by Medgenics relating to any alleged breach or default by Medgenics under
the Medgenics In-License within ***** after Medgenics’ receipt thereof and, if Medgenics cannot or chooses not to cure or
otherwise resolve any such alleged breach or default, Medgenics will so notify KHK within ***** thereafter.

 

12.6         Mutual
Covenants. Each Party hereby covenants to the other Party that during the Term:

 

(a)          All
employees and officers of such Party or its Affiliates working under this Agreement will be under the obligation to assign all
right, title and interest in and to their Inventions, whether or not patentable, if any, to such Party as the sole owner thereof,
and under the obligation to maintain as confidential the Confidential Information of such Party.

 

(b)          Such
Party will perform its activities pursuant to this Agreement in compliance with good clinical practices and good manufacturing
practices, in each case as applicable under the Applicable Laws and regulations of the country and the state and local government
wherein such activities are conducted, and also with the standards in the pharmaceutical industry for the development and commercialization
of pharmaceutical products.

 

(c)          Such
Party will not employ (or, to its knowledge, use any contractor or consultant that employs) any individual or entity debarred by
the FDA (or subject to a similar sanction of a Regulatory Authority), or, to its knowledge, any individual who or entity which
is the subject of an FDA debarment investigation or proceeding (or similar proceeding of a Regulatory Authority), in the conduct
of its activities under this Agreement, and each contractor or consultant used by such Party in connection with the conduct of
clinical trials under this Agreement will be subject to a covenant that is the same or substantially the same as the foregoing
covenant.

 

(d)          Such
Party will not practice or exploit the intellectual property licensed to such Party under this Agreement except to the extent expressly
permitted under the terms and conditions of this Agreement.

 

(e)          Such
Party will not grant any right or license to any Third Party relating to any of the intellectual property rights it Controls which
would conflict or interfere with any of the rights or licenses granted to the other Party hereunder.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	B-71	 

     

    

 

12.7         Consequences
of Partial Termination of an In-License. In the event that a portion, but not all of KHK’s rights under the KHK
In-Licenses terminate, then Medgenics will owe no further obligations to KHK under this Agreement with respect to such terminated
rights. In the event that a portion, but not all of Medgenics’ rights under the Medgenics In-License terminate, then KHK
will owe no further obligations to Medgenics under this Agreement with respect to such terminated rights.

 

12.8         Warranty
Disclaimer. The Parties acknowledge and agree that nothing in this Agreement (including, without limitation, any exhibits
or attachments hereto) will be construed as representing an estimate or projection of either (a) the extent to which Licensed Products
will be successfully Developed or Commercialized or (b) the anticipated sales or the actual value of any Licensed Product. NEITHER
PARTY MAKES ANY REPRESENTATION OR WARRANTY, EITHER EXPRESS OR IMPLIED, THAT IT WILL BE ABLE TO SUCCESSFULLY DEVELOP OR COMMERCIALIZE
ANY LICENSED PRODUCT OR, IF COMMERCIALIZED, THAT IT WILL ACHIEVE ANY PARTICULAR SALES LEVEL OF SUCH LICENSED PRODUCT(S). EXCEPT
AS OTHERWISE EXPRESSLY PROVIDED IN THIS AGREEMENT, NEITHER PARTY MAKES ANY REPRESENTATION OR EXTENDS ANY WARRANTY OF ANY KIND,
EITHER EXPRESS OR IMPLIED, TO THE OTHER PARTY WITH RESPECT TO ANY TECHNOLOGY OR OTHER SUBJECT MATTER OF THIS AGREEMENT AND HEREBY
DISCLAIMS ALL IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT WITH RESPECT TO ANY AND
ALL OF THE FOREGOING. EACH PARTY HEREBY DISCLAIMS ANY REPRESENTATION OR WARRANTY THAT THE DEVELOPMENT, MANUFACTURE OR COMMERCIALIZATION
OF ANY LICENSED PRODUCT UNDER THIS AGREEMENT WILL BE SUCCESSFUL.

 

12.9         No
Consequential Damages. NEITHER PARTY HERETO WILL BE LIABLE FOR SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES ARISING
OUT OF THIS AGREEMENT OR THE EXERCISE OF ITS RIGHTS HEREUNDER, INCLUDING WITHOUT LIMITATION LOST PROFITS ARISING FROM OR RELATING
TO ANY BREACH OF THIS AGREEMENT, REGARDLESS OF ANY NOTICE OF SUCH DAMAGES. NOTHING IN THIS SECTION 12.9 IS INTENDED TO LIMIT
OR RESTRICT THE INDEMNIFICATION RIGHTS OR OBLIGATIONS OF EITHER PARTY OR TO LIMIT A PARTY’S LIABILITY FOR BREACHES OF ITS
OBLIGATION REGARDING CONFIDENTIALITY UNDER ARTICLE 10.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	B-72	 

     

    

 

12.10         Indemnification
and Insurance.

 

12.10.1         Indemnification
by Medgenics. Medgenics will indemnify, hold harmless, and defend KHK, its Affiliates, and their respective directors, officers,
employees and agents (“KHK Indemnitees”) from and against any and all damages, losses, liabilities, costs
(including without limitation reasonable legal expenses, costs of litigation and reasonable attorney’s fees) or judgments
of any kind (collectively, “Losses”) arising out of any Third Party claim, suit or proceeding, whether
for money or equitable relief (each, a “Third Party Claim”), arising out of or resulting from, directly
or indirectly, (a) any material breach of, or inaccuracy in, any representation or warranty made by Medgenics in this Agreement,
or any breach or violation of any covenant or agreement of Medgenics or a Related Party in or pursuant to this Agreement, (b) the
negligence or willful misconduct by or of Medgenics or any of its Related Parties, and their respective directors, officers, employees
and agents, (c) the practice by Medgenics or its Affiliate or sublicensee (including a sublicensed contract manufacturer) of any
license or sublicense granted to it under Article 7, and/or (d) the Development, Manufacturing and Commercialization of
Licensed Products (including product liability) by Medgenics or any of its Related Parties. This indemnification excludes Losses
arising out of Third Party Infringement Claims resulting from Medgenics’ exercise in accordance with the terms of this Agreement
of any intellectual property rights granted by KHK hereunder. Furthermore, Medgenics will have no obligation to indemnify the KHK
Indemnitees to the extent that the Losses arise out of or result from, directly or indirectly, any matter for which KHK must indemnify
Medgenics under this Agreement. In addition, Medgenics will indemnify, hold harmless, and defend (i) LJI and its directors, officers,
employees, and agents from and against any and all Losses (including costs of investigation and court costs) arising at any time
from or in any manner connected with, directly or indirectly, any activity of Medgenics involving the KHK Patent Rights solely
owned by LJI or any information furnished under the LJI Agreement, including the use, handling, storage, distribution, containment,
sale and/or disposition of any product (whether or not a Licensed Product), or provision of any service, related to or derived
directly or indirectly from or using any KHK Patent Rights solely owned by LJI; and (ii) the KHK Indemnitees from and against any
and all Losses arising out of any Third Party Claims related to, directly or indirectly, any activities performed by or on behalf
of Medgenics or Medgenics’ Third Party contract manufacturer in connection with the exercise of rights under the KHK Technology
licensed under the KHK In-License with Lonza, if, pursuant to Section 7.4.1, KHK sublicenses its rights under such KHK Technology
to Medgenics or Medgenics’ Third Party contract manufacturer for the Manufacture of Licensed Products by Medgenics or such
contract manufacturer.

 

12.10.2         Indemnification
by KHK. KHK will indemnify, hold harmless, and defend Medgenics, its Affiliates and their respective directors, officers, employees
and agents (“Medgenics Indemnitees”) from and against any and all Losses arising out of any Third Party
Claims arising out of or resulting from, directly or indirectly, (a) any material breach of, or inaccuracy in, any representation
or warranty made by KHK in this Agreement, or any breach or violation of any covenant or agreement of KHK in or pursuant to this
Agreement, (b) the negligence or willful misconduct by or of KHK or any of its Related Parties, and their respective directors,
officers, employees and agents, (c) the practice by KHK or its Affiliate or sublicensee of any license or sublicense granted to
it under Article 7, and/or (d) the Development, Manufacturing and Commercialization of Licensed Products (including product
liability) by KHK or any of its Related Parties. This indemnification excludes Losses arising out of Third Party Infringement Claims
resulting from KHK’s exercise in accordance with the terms of this Agreement of any intellectual property rights granted
by Medgenics hereunder. Furthermore, KHK will have no obligation to indemnify the Medgenics Indemnitees to the extent that the
Losses arise out of or result from, directly or indirectly, any matter for which Medgenics must indemnify KHK. In addition, KHK
shall be bound by Section 12.2 of the Medgenics In-License in the capacity of “Licensee” in respect of KHK and its
Related Parties’ activities under this Agreement and use of the Medgenics Technology licensed under the Medgenics In-License,
and KHK agrees that the Indemnitees (as defined in Section 12.2 of the Medgenics In-License) are intended third party beneficiaries
of this sentence.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	B-73	 

     

    

 

12.10.3         Indemnification
Procedure. In the event of any such claim against any Medgenics Indemnitee or KHK Indemnitee (individually, an “Indemnitee”),
the indemnified Party will promptly notify the other Party in writing of the claim and the indemnifying Party will manage and control,
at its sole expense, the defense of the claim and its settlement. The Indemnitee will cooperate with the indemnifying Party and
may, at its option and expense, be represented in any such action or proceeding. The indemnifying Party will not be liable for
any settlements, litigation costs or expenses incurred by any Indemnitee without the indemnifying Party’s written authorization.
Notwithstanding the foregoing, if the indemnifying Party believes that any of the exceptions to its obligation of indemnification
of the Indemnitees set forth in Section 12.10.1 or Section 12.10.2 may apply, the indemnifying Party will promptly
notify the Indemnitees, which will then have the right to be represented in any such action or proceeding by separate counsel at
their expense; provided that the indemnifying Party will be responsible for payment of such expenses if the Indemnitees are ultimately
determined to be entitled to indemnification from the indemnifying Party. If the indemnifying Party does not assume the defense
of such claim as described in this Section 12.10.3, above, the Indemnitee may defend such claim but will have no obligation
to do so. The defending Party will not settle or compromise such claim without the prior written consent of the other Party, and
will not settle or compromise such claim in any manner which would have an adverse effect on such other Party’s interests,
without the prior written consent of such other Party, which consent, in each case, will not be unreasonably withheld, conditioned,
or delayed.

 

12.10.4         Insurance.
Each Party will use its Commercially Reasonable Efforts to maintain insurance, including product liability insurance, with respect
to its activities hereunder. Such insurance will be in such amounts and subject to such deductibles as the Parties may agree based
upon standards prevailing in the industry at the time in order to fulfill the obligation under Section 12.10.1 or 12.10.2,
including, but not limited to, the indemnification against any Losses involving any actual or alleged death or bodily injury arising
out of or resulting from the Development, Manufacture or Commercialization of any Licensed Product.

 

Article
13.

MISCELLANEOUS PROVISIONS

 

13.1         Governing
Law. This Agreement will be construed and the respective rights of the Parties determined according to the substantive
laws of the State of New York, New York, U.S.A., notwithstanding the provisions governing conflict of laws of any jurisdiction
to the contrary.

 

13.2         Dispute
Resolution.

 

13.2.1           With
respect to any disputes between the Parties concerning this Agreement over which Medgenics does not have explicit final decision-making
authority pursuant to Section 3.1.3, the dispute will be submitted to escalating levels of Medgenics and KHK senior management
for review. If the dispute cannot be resolved despite such escalation, then the matter will be referred to the Executive Officers
to be resolved by negotiation in good faith as soon as is practicable but in no event later than thirty (30) days after referral.
Such resolution, if any, by the Executive Officers will be final and binding on the Parties. If the Executive Officers are unable
to resolve such dispute within such thirty (30) day period, each Party may submit such dispute for arbitration pursuant to Section
13.2.2.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	B-74	 

     

    

  

13.2.2           Arbitration.

 

(a)          If
any dispute will arise between KHK and Medgenics in connection with or relating to this Agreement, then such dispute will be resolved
exclusively by and through an arbitration proceeding to be conducted under the auspices of, and pursuant to, the Commercial Rules
of the International Chamber of Commerce (together with any successor organization thereto, the “ICC”)
in New York, New York, U.S.A. Such arbitration proceeding will be conducted in the English language applying the law provided in
Section 13.1 and in such an expedited manner as is then permitted by the ICC’s commercial arbitration rules. The Parties
also agree to take reasonable discovery, with reasonableness to be determined by the arbitrators. Each of the foregoing agreements
to arbitrate all disputes and the results, determinations, findings, judgments and awards rendered through such arbitration will
be final, non-appealable and legally binding on KHK and Medgenics and may be entered and enforced by any court or tribunal of competent
jurisdiction. Notwithstanding anything to the contrary in this Section 13.2, a Party may seek injunctive relief in any court
of competent jurisdiction.

 

(b)          Any
arbitration proceeding will be initiated by written notice from either KHK or Medgenics to the other Party. The arbitration will
be conducted before a panel of three (3) arbitrators. Each of KHK and Medgenics will have the right to select one (1) arbitrator.
The third arbitrator will be selected by the mutual agreement of the arbitrators appointed by the Parties. The Party initiating
the arbitration proceeding will appoint its arbitrator within ten (10) days following service of the demand for arbitration to
the other Party, who will in turn appoint its arbitrator within thirty (30) days of receiving service of the demand. The two appointed
arbitrators will agree upon an arbitrator within thirty (30) days of the date of the appointment by the parties of the second arbitrator.
If either Party or their appointees fail to appoint an arbitrator within the specified time period, the ICC will exercise its powers
pursuant to Article 9 of the ICC Rules of Arbitration to appoint such arbitrator. The ICC’s appointment will be binding on
the Parties. Each arbitrator will be an attorney in good standing in the Bar of New York and experienced in commercial disputes
involving pharmaceutical companies. Time is of the essence of this arbitration procedure, and KHK and Medgenics will instruct the
arbitrators to render their decision within ninety (90) days of the arbitration’s completion. The cost of the arbitration
(including, without limitation, reasonable attorneys’ fees, expenses and disbursements) will be borne as the arbitrators
will decide; otherwise such costs (including, without limitation, the prevailing Party’s reasonable attorneys’ and
accountants’ fees, expenses and disbursements) will be borne by the Party against which the judgment of the arbitrator is
to be enforced.

 

13.3         Assignment.
This Agreement may not be assigned or otherwise transferred, nor may any right or obligation hereunder be assigned or transferred,
by either Party without the consent of the other Party. Notwithstanding the foregoing, (a) KHK may monetize the value of its payments
under this Agreement by assigning to a Third Party the right to receive payments and the right to receive payment reports from
Medgenics; provided that KHK gives thirty (30) days prior written notice to Medgenics, and (b) either Party may, without the other
Party’s consent, assign this Agreement and its rights and obligations hereunder in whole or in part to an Affiliate (but
subject to the consent of CHOP in respect of the Medgenics Technology licensed under the Medgenics In-License in the case of assignment
by KHK) or pursuant to a Change of Control (but subject to the consent of Sanofi, to the extent required under Applicable
Law, in respect of the KHK Technology licensed under the KHK In-License with Sanofi in the case of assignment by Medgenics). The
assigning Party will remain responsible for the performance by its assignee of this Agreement or any obligations hereunder so assigned
to such assignee.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	B-75	 

     

    

 

13.4         Entire
Agreement; Amendments. This Agreement and the Schedules and Exhibits referred to in this Agreement constitute the entire
agreement between the Parties with respect to the subject matter hereof, and supersede all previous arrangements with respect to
the subject matter hereof, whether written or oral, except that Article 1 through 10 of the Clinical Development and Option Agreement
will govern with respect to matters occurring prior to the Effective Date. Any amendment or modification to this Agreement will
be made in writing signed by both Parties.

 

13.5         Notices.
Any consent or notice required to be given or made under this Agreement by one of the Parties to the other will be in writing and
(a) delivered by hand, (b) sent by internationally recognized overnight delivery service or (c) sent by facsimile transmission
and confirmed by sender by prepaid, registered or certified mail letter, and will be deemed to have been properly served to the
addressee upon receipt of such written communication, in any event to the following addresses:

 

	If to KHK:	
        Kyowa Hakko Kirin Co., Ltd.

        1-6-1, Otemachi

        Chiyoda-ku, Tokyo 100-8185

        Japan

        Attention: Director of Business Development
        Department

        Facsimile No.: +81-3-3282-0107

	 	 
	with a copy to:	
        Kyowa Hakko Kirin Co., Ltd.

        1-6-1, Otemachi

        Chiyoda-ku, Tokyo 100-8185

        Japan

        Attention: Director of Legal Affairs Group,
        Legal and Intellectual Property Department

        Facsimile No.: +81-3-3282-0092

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	B-76	 

     

    

 

	If to Medgenics:	
        Medgenics, Inc.

        435 Devon Park Drive, Bldg 700, Suite 715

        Wayne, PA 19087

        Attention: Chief Legal Officer

        Facsimile No.: +1 (610) 717-3390

	 	 
	with a copy to:	
        Pepper Hamilton LLP

        Two Logan Square

        18th & Arch Streets

        Philadelphia, Pennsylvania 19103-2799

        Attention: Brian M. Katz

        Facsimile No.: +1 (215) 981-4750

 

or to such other address as the Party to
whom notice is to be given may have furnished to the other Party in writing in accordance herewith. Any such notice will be deemed
to have been given: (a)  if personally delivered, when delivered; (b) if sent by internationally-recognized overnight courier,
on the Business Day of the sender during which the sender delivers the notice to the courier; or (c) if sent by facsimile,
when all pages of the notice are successfully transmitted (as shown by a report generated by the sender’s facsimile machine)
during a Business Day of the sender.

 

13.6         Force
Majeure. The failure of either Party to timely perform any obligation under this Agreement by reason of epidemic, earthquake,
riot, civil commotion, fire, act of God, war, terrorist act, strike, flood, or governmental act or restriction, or other cause
that is beyond the reasonable control of such Party, will not be deemed to be a breach of this Agreement, but will be excused to
the extent and for the duration of such cause, and the affected Party will provide the other Party with full particulars thereof
as soon as it becomes aware of the same (including its best estimate of the likely extent and duration of the interference with
its activities) and will use its Commercially Reasonable Efforts to avoid or remove such cause, and will perform its obligation(s)
with the utmost dispatch when the cause is removed. If the performance of any such obligation under this Agreement is delayed owing
to such a force majeure for any continuous period of more than one hundred eighty (180) days, the Parties will consult with respect
to an equitable solution, including the possibility of the mutual termination of this Agreement.

 

13.7         Compliance
with Export Regulations. Neither Party will export any technology licensed to it by the other Party under this Agreement
except in compliance with U.S. export laws and regulations.

 

13.8         Independent
Contractors. It is understood and agreed that the relationship between the Parties is that of independent contractors
and that nothing in this Agreement will be construed as authorization for either KHK or Medgenics to act as agent for the other.
Nothing herein contained will be deemed to create an employment, agency, joint venture or partnership relationship between the
Parties or any of their agents or employees for any purpose, including tax purposes, or to create any other legal arrangement that
would impose liability upon one Party for the act or failure to act of the other Party. Neither Party will have any express or
implied power to enter into any contracts or commitments or to incur any liabilities in the name of, or on behalf of, the other
Party, or to bind the other Party in any respect whatsoever.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	B-77	 

     

    

 

13.9         Further
Assurances. Each Party agrees to execute, acknowledge and/or deliver such further instruments, and to do all other acts,
as may be necessary or appropriate in order to carry out the purposes and intent of this Agreement.

 

13.10         No
Strict Construction. This Agreement has been prepared jointly and will not be strictly construed against either Party.

 

13.11         Performance
by Affiliates. Each Party recognizes that the other Party may perform some or all of its obligations under this Agreement
through Affiliates to the extent permitted under this Agreement; provided, however, that such other Party will remain
responsible for the performance by its Affiliates as if such obligations were performed by such other Party.

 

13.12         Construction.
Except where the context otherwise requires, wherever used, the singular will include the plural, the plural the singular, and
the use of any gender will be applicable to all genders. The captions of this Agreement are for convenience of reference only and
in no way define, describe, extend or limit the scope or intent of this Agreement or the intent of any provision contained in this
Agreement. The term “including” as used herein means including, without limiting the generality of any description
that precedes such term, and will be deemed to be followed by the phrase “but not limited to,” “without limitation”
or words of similar import regardless of whether such words are actually written there (and drawing no implication from the actual
inclusion of such phrase in some instances after the word “including” but not others). References to “Article”,
“Articles”, “Section”, Sections”, “Exhibit” or “Exhibits” are references
to the numbered Article(s), Section(s), or lettered Exhibit(s) of this Agreement, unless expressly stated otherwise. Except where
the context otherwise requires, (a) references to a particular law, rule or regulation mean such law, rule or regulation as
in effect as of the relevant time, including all rules and regulations thereunder and any successor law, rule or regulation in
effect as of the relevant time, and including the then-current amendments thereto; (b) the word “or” has the inclusive
meaning that is typically associated with the phrase “and/or”; (c) whenever this Agreement refers to a number of days,
such number will refer to calendar days unless Business Days are specified, and if a period of time is specified and dates from
a given day or Business Day, or the day or Business Day of an act or event, it is to be calculated exclusive of that day or Business
Day; (d) references to a particular person or entity include such person’s or entity’s successors and assigns to the
extent not prohibited by this Agreement; (e) a capitalized term not defined herein but reflecting a different part of speech than
a capitalized term which is defined herein will be interpreted in a correlative manner; and (f) the words “hereof,”
“herein,” “hereby” and derivative or similar words refer to this Agreement (including any Exhibits).

 

13.13         No
Implied Waivers; Rights Cumulative. No failure on the part of KHK or Medgenics to exercise, and no delay in exercising,
any right, power, remedy or privilege under this Agreement, or provided by statute or at law or in equity or otherwise, will impair,
prejudice or constitute a waiver of any such right, power, remedy or privilege or be construed as a waiver of any breach of this
Agreement or as an acquiescence therein, nor will any single or partial exercise of any such right, power, remedy or privilege
preclude any other or further exercise thereof or the exercise of any other right, power, remedy or privilege.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	B-78	 

     

    

 

13.14         Severability.
If any provision hereof should be held invalid, illegal or unenforceable in any respect in any jurisdiction, the Parties will substitute,
by mutual consent, valid provisions for such invalid, illegal or unenforceable provisions, which valid provisions in their economic
effect are sufficiently similar to the invalid, illegal or unenforceable provisions that it can be reasonably assumed that the
Parties would have entered into this Agreement with such valid provisions. In case such valid provisions cannot be agreed upon,
the invalidity, illegality or unenforceability of one (1) or several provisions of this Agreement will not affect the validity
of this Agreement as a whole, unless the invalid, illegal or unenforceable provisions are of such essential importance to this
Agreement that it is to be reasonably assumed that the Parties would not have entered into this Agreement without the invalid,
illegal or unenforceable provisions.

 

13.15         No
Third Party Beneficiaries. Except as expressly set forth in Section 12.10.2, no person or entity other than Medgenics,
KHK and their respective Affiliates and permitted assignees hereunder will be deemed an intended beneficiary hereunder or have
any right to enforce any obligation of this Agreement.

 

[Remainder of Page Left Blank Intentionally.
Schedules Follow.]

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

  

    	 	B-79	 

     

    

 

Schedule 1.7

 

AMINO
ACID SEQUENCE OF ANTI-LIGHT MAB

 

*****

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	B-80	 

     

    

 

 

Schedule 1.16

 

Commercialization
Costs

 

Examples of Commercialization Costs

 

Commercialization Costs will include, but
will not be limited to, the following, in each case attributable to, or reasonably allocable to, Commercialization of Licensed
Products in the Field in the Territory:

 

Detailing costs - costs associated
with interactive face-to-face visits by a sales representative with a medical professional who has prescribing authority or is
able to influence prescribing decisions, within the target audience during which approved uses, safety, effectiveness, contraindications,
side effects, warnings or other relevant characteristics of a pharmaceutical product are discussed in an effort to increase prescribing
preferences of a pharmaceutical product for its approved uses.

 

Distribution costs - costs identifiable
to the distribution of a Licensed Product to a customer (and not otherwise deducted from Net Sales), including customer and specialty
pharmacy services (including costs associated with establishing and running customer call centers), collection of data about sales
to hospitals, clinics and other customers, order entry, billing, shipping, logistics, warehousing, product insurance, freight not
paid by customers, credit and collection and other like activities the costs of which are includable in “distribution costs”
in accordance with the Accounting Standards.

 

Early Access Program or EAP costs
– costs associated with any program to provide patients with products free of charge. Early access programs include treatment
INDs / protocols and compassionate use programs, as applicable. For clarity, an EAP with respect to a Licensed Product may continue
to be performed following Regulatory Approval of a Licensed Product and costs may continue to be incurred in accordance with the
performance of such EAP after Regulatory Approval. 

 

Patient Assistance Programs –
costs associated with establishing and administering patient assistance programs.

 

Health Care Reform fees - costs
for fees paid to the U.S. government as defined in the Patient Protection and Affordable Care Act and similar taxes and governmental
fees.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	B-81	 

     

    

 

Commercial Operations Costs – costs of the commercial
operations team supporting Commercialization of the Licensed Products in the Field, including, without limitation:

 

(a)          Marketing
Expenses, which includes costs identifiable to the advertising, promotion and marketing of Licensed Products
in the Field, and related professional education;

 

(b)          Advertising,
which includes costs associated with media costs, direct mails, production expenses, agency fees, and medical congresses and meetings;

 

(c)          Promotion,
which includes costs associated with professional samples, professional literature, promotional material, patient aids, detailing
aids, reimbursement of patient assistance programs, public relations and communications expenses, web and social media expenses,
patient advocacy support, development of information and data for national accounts, managed care organizations and group purchasing
organizations;

 

(d)          Market
Research, which includes costs associated with market information, focus groups, and market research professional staff and
related out-of-pocket costs such as travel, business meals, and training;

 

(e)          Marketing
Management, which includes the costs of product management and sales promotion management compensation and departmental
expenses as well as costs associated with developing overall sales and marketing strategies and planning;

 

(f)          Reimbursement/Access
Services, which includes costs incurred to manage reimbursement programs, marketing costs (educational material) as well as
coupon or co-pay programs;

 

(g)          Health
Policy/Advocacy, which includes costs associated with advocacy as well as any specific policy lobbying and trade and government
relations related expenses; and

 

(h)          Selling
Support, which includes costs associated with logistics and document support and the operation of the sales/medical science
liaison team such as meeting planning.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	B-82	 

     

    

 

Medical Affairs Expenses - costs
with respect to: medical affairs and other activities associated with clinical studies conducted after Regulatory Approval in the
Territory (to the extent not otherwise included within Development Costs); medical and scientific information and response to external
inquiries or complaints; pharmacovigilance, investigator initiated research if not covered in the Phase V Clinical Trials, costs
of establishing and maintaining patient registries, medical education, Health Economics and Outcomes Research (HECOR, HEMAR), speaker
programs, advisory boards, educational grants and fellowships, drug safety, government affairs (including costs associated with
compliance with the Sunshine Act and other similar government regulation); and field-based medical science liaisons, medical affairs
clinical trial management, MD’s in field (separate from medical science liaisons), publications, medical communications and
field medical education.

 

Recall Expenses – costs, to
the extent not otherwise covered by KHK’s indemnity obligations, associated with notification, retrieval and return
of Licensed Products in the Field in the Territory, destruction of such returned Licensed Products in the Field, and distribution
of the replacement Licensed Products in the Field.

 

Selling Costs - costs directly attributable
to selling Licensed Product in the Field, including the FTE Costs for sales representatives/medical science liaisons and first
line sales managers, exhibits at shows or conventions including samples, charges for space, sales aids and brochures, sales meetings,
consultants, call reporting and other Third Party monitoring/tracking services, automobile allowance, meal expenses, travel/housing
for meetings, costs of computer and other equipment of sales representatives/medical science liaisons and other incidental expenses
incurred by sales representatives/medical science liaisons in respect of selling the Licensed Product in the Field.

 

Other Commercialization Costs - any
other costs attributable or allocable to Commercialization of Licensed Products in the Field in the Profit Share Territory in accordance
with Accounting Standards, to the extent not included in one of the other categories or definitions of costs under this Exhibit
1.16.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	B-83	 

     

    

 

Schedule 1.38

 

FTE
Rates

 

1.          The
following table sets forth the FTE Rates for Medgenics FTEs:

 

	*****	 	*****
	*****	 	*****
	*****	 	*****
	*****	 	*****
	*****	 	*****
	*****	 	*****
	*****	 	*****

 

2.          The
following table sets forth the FTE Rates for KHK FTEs:

 

	*****	 	*****
	*****	 	*****
	*****	 	*****
	*****	 	*****
	*****	 	*****
	*****	 	*****
	*****	 	*****

 

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	B-84	 

     

    

 

Schedule 1.43

 

KHK
IN-LICENSES

 

License Agreement between La Jolla Institute
for Allergy and Immunology and Kyowa Hakko Kirin Co., Ltd. *****. This is the LJI Agreement referred to in Section 1.53.

 

***** Agreement between Lonza Sales AG and Kyowa Hakko Kirin
Co., Ltd. *****.

 

***** Agreement between Bristol-Myers Squibb Company and Kyowa
Hakko Kirin Co., Ltd. *****.

 

Letters between Kyowa Hakko Kirin Co., Ltd. and Sanofi *****,
and sublicensing of rights to Medgenics.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	B-85	 

     

    

 

Schedule 1.47

 

KHK
PATENT RIGHTS

 

	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
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***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	B-86	 

     

    

 

Schedule 1.58

 

MEDGENICS
IN-LICENSE

 

License Agreement between The Children’s
Hospital of Philadelphia and Medgenics Medical Israel Ltd. dated November 12, 2014.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	B-87	 

     

    

 

Schedule 1.62

 

MEDGENICS
PATENT RIGHTS

 

	*****	 	*****	 	*****	 	*****	 	*****
	*****	 	 	 	 	 	 	 	 
	*****	 	*****	 	*****	 	*****	 	*****
	*****	 	*****	 	*****	 	*****	 	*****
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	*****	 	*****	 	*****	 	*****	 	*****
	*****	 	*****	 	*****	 	*****	 	*****
	*****	 	*****	 	*****	 	*****	 	*****
	*****	 	*****	 	*****	 	*****	 	*****

 

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	B-88	 

     

    

 

Schedule 4.2.1

 

INITIAL
DEVELOPMENT PLAN

 

*****

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	B-89	 

     

    

 

EXHIBIT C

PLAN B LICENSE AGREEMENT

 

See Attached

 

     

     

    

 

Execution Version

 

Portions of this exhibit have been omitted
and filed separately with the Secretary of the Securities and Exchange Commission (the “Commission”) pursuant to an
application for confidential treatment filed with the Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934,
as amended. Such portions are marked as indicated below.

 

LICENSE AGREEMENT

 

by and between

 

KYOWA HAKKO KIRIN CO., LTD.

 

and

 

MEDGENICS, INC.

 

    	 	C-1	 

     

    

 

	Article 1. DEFINITIONS	3
	 	 
	Article 2. EFFECTIVENESS OF THIS AGREEMENT	18
	 	 
	Article 3. GOVERNANCE	18
	 	 
	Article 4. DEVELOPMENT	19
	 	 
	Article 5. COMMERCIALIZATION	24
	 	 
	Article 6. DILIGENCE	26
	 	 
	Article 7. LICENSES	27
	 	 
	Article 8. FINANCIAL PROVISIONS	31
	 	 
	Article 9. INTELLECTUAL PROPERTY	38
	 	 
	Article 10. CONFIDENTIALITY	48
	 	 
	Article 11. TERM AND TERMINATION	50
	 	 
	Article 12. REPRESENTATIONS, WARRANTIES, AND COVENANTS; DISCLAIMERS; INDEMNIFICATION	58
	 	 
	Article 13. MISCELLANEOUS PROVISIONS	66

 

Schedules

 

Schedule 1.7 – Amino Acid Sequence of Anti-Light mAb

Schedule 1.16 – Commercialization Costs

Schedule 1.37 – FTE Rates

Schedule 1.42 – KHK In-Licenses

Schedule 1.46 – KHK Patent Rights

Schedule 1.57 – Medgenics In-License

Schedule 1.61 – Medgenics Patent Rights

Schedule 4.2.1 – Initial Development Plan

 

    	 	C-2	 

     

    

 

LICENSE AGREEMENT

 

This License Agreement
(this “Agreement”), effective as of the Effective Date (as defined in Section 2.1), is by and
between Kyowa Hakko Kirin Co., Ltd., a company organized and existing under the laws of the Japan and having its principal office
at 1-6-1, Otemachi, Chiyoda-ku, Tokyo 100-8185, Japan (“KHK”), and Medgenics, Inc., having its address
at 435 Devon Park Drive, Building 700, Wayne, PA 19087, U.S.A. (“Medgenics”). KHK and Medgenics may each
be referred to herein individually as a “Party” and collectively as the “Parties.”

 

INTRODUCTION

 

WHEREAS, the Parties
have entered into the Clinical Development and Option Agreement, effective as of June 6, 2016 (the “Clinical Development
and Option Agreement”); and

 

WHEREAS, pursuant to
the Clinical Development and Option Agreement, KHK granted Medgenics the right to conduct the Initial Development (as defined in
the Clinical Development and Option Agreement) with respect to Anti-LIGHT mAb (as defined in Section 1.7); and

 

WHEREAS, pursuant to
the Clinical Development and Option Agreement, KHK granted Medgenics an option to obtain an exclusive license to Develop and Commercialize
products containing Anti-LIGHT mAb at KHK’s election either under the terms and conditions of this Agreement (the “Plan
B Election”) or under the terms and conditions of the license agreement attached to Exhibit B to the Clinical
Development and Option Agreement (the “Plan A Election”); and

 

WHEREAS, this Agreement
will become fully effective in accordance with Section 2.1 of this Agreement only upon KHK making the Plan B Election pursuant
to the terms and conditions of the Clinical Development and Option Agreement; and

 

WHEREAS, this Agreement
will not become effective and be rendered null and void in accordance with Section 2.2 of this Agreement.

 

NOW, THEREFORE, in
consideration of the mutual promises and covenants set forth below and other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the Parties hereby agree as follows:

 

Article
1.

DEFINITIONS

 

When used in this Agreement,
each of the following terms will have the meanings set forth in this Article 1:

 

1.1           “Accounting
Standards” means with respect to a Party, as applicable, (a) United States generally accepted accounting principles
(“GAAP”), (b) Japanese generally accepted accounting standards, or (c) International Financial Reporting
Standards, in each case consistently applied.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-3	 

     

    

 

1.2           “Acquirer
Intellectual Property” means the Patent Rights and Know-How owned or controlled by a Third Party acquirer of Medgenics
or KHK, as the case may be, immediately prior to a Change of Control transaction, and Inventions thereto following the effective
date of such Change of Control.

 

1.3           “Administrative
Contact” means any contact to or from a Regulatory Authority that is general or administrative in nature (e.g., notification
by a Regulatory Authority of the assignment of a new reviewer or a notification of a new address or new contact information).

 

1.4           “Affiliate”
means, with respect to any person or entity, any other person or entity which controls, is controlled by, or is under common control
with such person or entity. A person or entity will be regarded as in control of another entity if it owns or controls more than
fifty percent (50%) of the equity securities of the subject entity entitled to vote in the election of directors (or, in the case
of an entity that is not a corporation, for the election of the corresponding managing authority).

 

1.5           “Allowable
Expenses” means, with respect to Profit-Share Products and each Contract Quarter, all FTE Costs and Out-of-Pocket
Costs incurred by Medgenics or its Related Parties that are specifically identifiable and allocable to the Commercialization of
such Profit-Share Products in the Field in the Territory, and Manufacture of such Profit-Share Products for Commercialization,
during the applicable Contract Quarter, including such FTE Costs and Out-of-Pocket Costs which are: (a) Manufacturing Costs; (b)
Commercialization Costs; and (c) Third Party Technology Costs, in each case determined from the books and records of Medgenics
or its Related Parties maintained in accordance with Accounting Standards and in each case of (a)-(c) as are specifically identifiable
and allocable to the Commercialization of such Profit-Share Products in the Field in the Territory during the applicable Contract
Quarter. For clarity, no milestone payment made to KHK or its Affiliates pursuant to Section 8.3 will be an Allowable Expense.
For purposes of clarity, it is understood that there will be no double-counting of expenses within the definition of Allowable
Expenses.

 

1.6           “Applicable
Law” means the laws, rules and regulations, including without limitation any rules, regulations, guidelines or other
requirements of the Regulatory Authorities applicable to the Development, Manufacturing or Commercialization of Licensed Products
or other activities conducted by the Parties under this Agreement, that may be in effect from time to time in the applicable territory.

 

1.7           “Anti-LIGHT
mAb” means the fully human monoclonal antibody targeting LIGHT (TNFSF14) consisting of the amino acid sequence set
forth on Schedule 1.7.

 

1.8           “Bankruptcy
Code” means Title 11, United States Code, as amended, or analogous provisions of Applicable Law outside the United
States.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-4	 

     

    

 

1.9           “Biosimilar”
means, with respect to a reference brand biologic product and a particular jurisdiction, a biologic product: (a) that is highly
similar to such reference brand biologic product notwithstanding minor differences in clinically inactive components; (b) has no
clinically meaningful differences from such reference brand biologic product in terms of safety, purity and potency; and (c) for
which a Biosimilar Application is approved by the relevant Regulatory Authority of such jurisdiction. Notwithstanding anything
to the contrary in this Agreement, a “Biosimilar” does not include any biologic product sold under a BLA or approved
Biosimilar Application of any Party or any of its Related Parties or manufactured or produced by or on behalf of a Party or any
of its Related Parties.

 

1.10         “Biosimilar
Application” means a Regulatory Approval Application for a product claimed to be biosimilar or interchangeable to
any Licensed Product, or otherwise relying on the approval of such Licensed Product, in each case in accordance with Applicable
Law in the jurisdiction in which the product is sought to be marketed and sold.

 

1.11         “BLA”
means a Biologics License Application filed with FDA or the equivalent thereof filed with any other Regulatory Authority.

 

1.12         “BMS”
means Bristol-Myers Squibb Company.

 

1.13         “Business
Day” means, with respect to KHK, a KHK Business Day, and, with respect to Medgenics, a Medgenics Business Day.

 

1.14         “Change
of Control” means, with respect to a Party, (a) a merger or consolidation of such Party with a Third Party which
results in the voting securities of such Party outstanding immediately prior thereto ceasing to represent at least fifty percent
(50%) of the combined voting power of the surviving entity immediately after such merger or consolidation, (b) except in the case
of a bona fide equity financing in which a Party issues new shares of its capital stock, a transaction or series of related transactions
in which a Third Party, together with its Affiliates, becomes the beneficial owner of fifty percent (50%) or more of the combined
voting power of the outstanding securities of such Party, or (c) the sale or other transfer to a Third Party of all or substantially
all of such Party’s business to which the subject matter of this Agreement relates.

 

1.15         “Commercialization”
means importing, exporting, marketing, promoting, distributing, offering for sale and selling a Licensed Product and, solely with
respect to Sections 7.5.1 and 7.5.2, a Competing Product in the Field and will include activities required to fulfill
ongoing post-approval regulatory obligations, including adverse event reporting and sales force training but excluding any Phase
4 Clinical Trial (as defined in Section 1.25). When used as a verb, “Commercialize” will mean
to engage in Commercialization.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-5	 

     

    

 

1.16         “Commercialization
Costs” means all costs and expenses, including FTE Costs and Out-of-Pocket Costs, incurred by or on behalf of Medgenics
or its Related Parties in accordance with this Agreement and attributable to, or reasonably allocable to, the Commercialization
of the Licensed Products in the Field in the Territory, including marketing costs, sales costs, distribution costs, importing and
exporting costs, Phase 5 Clinical Trial costs, insurance costs incurred in connection with Commercialization activities, medical
affairs costs and certain general and administrative costs (but excluding Development Costs) as further defined in Schedule
1.16. In this Agreement, “Phase 5 Clinical Trial” means a post-registration clinical trial that is
not required as a condition to, or for the maintenance of, any Regulatory Approval or pricing and/or reimbursement approval for
a Licensed Product.

 

1.17         
“Commercially Reasonable Efforts” means, with respect to a Party, the carrying out of obligations in
a diligent and sustained manner using such effort and employing such resources as would normally be exerted or employed by a similarly
situated biopharmaceutical company for a product of similar commercial or strategic importance, and at a similar stage of its product
life, based on conditions then prevailing, taking into consideration safety and efficacy, development costs, the anticipated prescription
label, the nature of the Licensed Product, the clinical setting in which it is expected to be used and all other relevant factors.
Commercially Reasonable Efforts will be determined on a country-by-country basis.

 

1.18         “Competing
Product” means *****, other than a Licensed Product, *****.

 

1.19         “Confidential
Information” means, with respect to each Party, proprietary data or information of such Party or its Affiliates or
sublicensees, including, without limitation, (a) with respect to KHK, all KHK Technology, and, with respect to Medgenics, all Medgenics
Technology, (b) any information designated as Confidential Information of such Party hereunder, in all cases that is identified
as confidential either in writing or orally, provided that any orally disclosed information is described in reasonable detail in
a written notice sent by the Disclosing Party to the Receiving Party within thirty (30) days of the oral disclosure requesting
that such information be treated as Confidential Information hereunder, and (c) all information that is manifestly confidential,
whether or not marked as such.

 

1.20         “Contract
Quarters” means the successive three (3) month periods in each Contract Year ending on March 31, June 30, September
30 or December 31.

 

1.21         “Contract
Year” means the twelve (12) month period beginning on January 1 and ending on December 31 of each calendar year,
provided, however, that the first Contract Year will be the period of time beginning on the Effective Date and ending on December
31, 2016. Each Contract Year, except the first Contract Year, will be divided into four (4) Contract Quarters.

 

1.22         “Control”
or “Controlled” means with respect to any (a) material, item of information, method, data or other Know-How,
or (b) intellectual property right, the possession (whether by ownership or license, other than pursuant to this Agreement) by
the referenced Party or its Affiliates of the ability to grant to the other Party access and/or a license as provided herein under
such item or right without violating the terms of any agreement or other arrangement with any Third Party existing before or after
the Effective Date.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-6	 

     

    

 

1.23         “Data
Exclusivity Period” means, with respect to a particular jurisdiction, the time period of legal protection and confidential
treatment provided for clinical test data required to be submitted to a Regulatory Authority for such jurisdiction in order to
demonstrate safety and efficacy of a new drug or biologic, and all similar protections on such clinical test data intended to prevent
generic drug manufacturers or biosimilar manufacturers from relying on this data in their own Biosimilar applications.

 

1.24         “Development”
means, with respect to a Licensed Product and, solely with respect to Sections 7.5.1 and 7.5.2, a Competing Product
in the Field, non-clinical and clinical drug development activities performed on or after the Effective Date, including without
limitation the conduct of clinical trials, test method development, toxicology, pharmacology, pharmacokinetics formulation, data
management, statistical analysis and report writing and clinical studies, and regulatory affairs and all activities associated
with obtaining and maintaining Regulatory Approvals. When used as a verb, “Develop” means to engage in Development.

 

1.25         “Development
Costs” means all costs and expenses, including FTE Costs and Out-of-Pocket Costs, incurred by or on behalf of a Party
in accordance with this Agreement and attributable to, or reasonably allocable to, the Development of the Licensed Products in
the Field in the Territory and that are materially consistent, as applicable, with the Development Plan, including costs and expenses
for Regulatory Approvals and pricing and/or reimbursement approvals, and costs incurred after Regulatory Approval, including Phase
4 Clinical Trial costs, costs of non-clinical studies, costs of clinical studies for additional Indications in the Field, insurance
costs incurred in connection with Development activities (but excluding costs that are allocable to Commercialization Costs and
the costs of general company management, financial, legal or business development personnel). Development Costs will not include
any costs incurred by either Party prior to the Effective Date, including, without limitation, costs for purchasing raw materials,
for manufacturing clinical supplies of Licensed Product or for any labeling or packaging materials, whether or not such raw materials,
clinical supplies or labeling or packaging materials are used by the Parties for Development activities after the Effective Date.
In this Agreement, “Phase 4 Clinical Trial” means a post-registration clinical trial or post-marketing
surveillance study performed in accordance with Applicable Laws and required as a condition to, or for the maintenance of, any
Regulatory Approval or pricing and/or reimbursement approval for a Licensed Product.

 

1.26         “Development
Plan” means (a) the written comprehensive plan for (i) the Development of any Licensed Product in the Field
in the Territory, including, but not limited to, activities designed to generate the preclinical, process development/manufacturing
scale-up, clinical and regulatory information required for filing Regulatory Approval Applications in the Territory and (ii) the
preparation and submission of related Regulatory Approval Applications in the Territory and (b) an annual budget for Development
Costs setting forth both internal and external resources and expenses for the then-current Contract Year.

 

1.27         “EMA”
means the European Medicines Agency and any successor agency having substantially the same functions.

 

1.28         “European
Union” means all countries over which EMA has jurisdiction from time to time and all countries that exit the jurisdiction
of the EMA from time to time. 

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-7	 

     

    

  

1.29         “Executive
Officers” means the Chief Executive Officer of Medgenics (or an executive of Medgenics designated by such Chief Executive
Officer) and the Chief Executive Officer of KHK (or an executive of KHK designated by such Chief Executive Officer).

 

1.30         “Fair
Market Value” means (a) with respect to investment by a Third Party in exchange for equity securities of Medgenics,
(i) for so long as Medgenics’ common stock is publicly traded on a securities exchange, the volume weighted average closing
price of a share of Medgenics’ common stock on the principal exchange on which such stock is then trading for the ten (10)
trading days ending on the date that is twenty (20) trading days on such exchange prior to the first public announcement of such
equity investment, and (ii) if Medgenics’ common stock is no longer publicly traded on a securities exchange, the fair market
value of a share of common stock of Medgenics as of the date of closing such investment as determined in good faith by the board
of directors of Medgenics, taking into account such factors and for such time period as the board of directors of Medgenics reasonably
deems is appropriate, and agreed to by KHK, such agreement not to be unreasonably withheld, delayed, or conditioned, and (b) with
respect to any non-cash consideration (other than equity securities), the fair market value
of such consideration as determined in good faith by the board of directors of Medgenics and agreed to by KHK, such agreement not
to be unreasonably withheld, delayed, or conditioned.

 

1.31         “FD&C
Act” means the US Federal Food, Drug, and Cosmetic Act, as amended from time to time (21 U.S.C. Section 301 et seq.),
together with any rules and regulations promulgated thereunder.

 

1.32         “FDA”
means the United States Food and Drug Administration, or a successor agency in the United States with responsibilities comparable
to those of the United States Food and Drug Administration.

 

1.33         “Field”
means treatment, prevention, and diagnosis ***** of pediatric (18 and below) onset rare and orphan disease ***** Crohn Disease,
Ulcerative Colitis, ***** Juvenile Idiopathic Arthritis, Psoriasis, *****. Pediatric onset patients who survive into adulthood
will be included in the scope of the Field.

 

1.34         “First
Commercial Sale” means, with respect to a given Licensed Product in a country, the first commercial sale in an arms-length
transaction of such Licensed Product to a Third Party by or on behalf of a Party, its Affiliate or its sublicensee in such country
following receipt of applicable Regulatory Approval of such Licensed Product in such country.

 

1.35         “FTE”
means a full time equivalent person year (consisting of a total of two thousand (2,000) hours per Contract Year, subject to
a proportionate reduction in the first Contract Year) of scientific, technical, marketing, sales, distribution and certain general
and administrative activities related to the Development of Licensed Products and/or the Commercialization of the Licensed Products
in the Field in accordance with this Agreement. For the avoidance of doubt, no individual will count as more than one (1) FTE,
and any individual who works less than two thousand (2,000) hours in a given Contract Year performing activities under this Agreement
will be counted as a fraction of one (1) FTE, the numerator of which is the number of hours such individual performs activities
under this Agreement and the denominator of which is two thousand (2,000) hours.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-8	 

     

    

 

1.36         “FTE
Costs” means all costs for FTEs calculated by multiplying (a) the actual number of FTEs utilized by KHK or Medgenics
in performing activities in accordance with any Development Plan and/or Commercialization Plan by (b) the applicable FTE Rate,
provided that, to the extent either Party is unable to fully track the number of FTEs utilized, the Parties will agree on a mechanism
for estimating such number.

 

1.37         “FTE
Rate” means, with
respect to an FTE, the applicable amount set forth on Schedule 1.37, as such amount may be adjusted pursuant to Section
8.7.

 

1.38         “IND”
means an Investigational New Drug Application, as defined in the FD&C Act, or similar application or submission that is required
to be filed with any Regulatory Authority before beginning clinical testing of a Licensed Product in human subjects.

 

1.39         “Inventions”
means any and all ideas, information, Know-How, data research results, writings, inventions, discoveries, modifications, enhancements,
derivatives, new uses, developments, techniques, materials, compounds, products, designs, processes or other technology or intellectual
property, whether or not patentable or copyrightable, and all Patent Rights and other intellectual property rights in any of the
foregoing.

 

1.40         “Joint
Inventions” means any and all Inventions made or generated hereunder jointly by at least one employee or contractor
of each Party (or its respective Affiliates), as determined by United States patent laws for inventorship, in each case while performing
activities under this Agreement.

 

1.41         “KHK
Business Day” means a day on which banking institutions in Tokyo, Japan are open for business other than a Saturday
or Sunday.

 

1.42         “KHK
In-Licenses” means the Third Party agreements listed on Schedule 1.42.

 

1.43         “KHK
Inventions” means any and all Inventions made or generated hereunder solely by employees or contractors of KHK (or
its Affiliates), as determined by the United States patent laws for inventorship, in each case while performing activities under
this Agreement. 

 

1.44         “KHK
Know-How” means Know-How that is (a) Controlled by KHK on the Effective Date or during the Term (other than Medgenics
Know How pursuant to the licenses granted hereunder) and (b) is reasonably necessary or useful in connection with the Development,
Manufacture, use or Commercialization of Licensed Products in the Field in the Territory.

 

1.45         “KHK
Licensor” means LJI, BMS, Lonza, and Sanofi, respectively defined in this Article 1, and its respective successor
and assigns, which has licensed rights to KHK pursuant to the KHK In-Licenses.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-9	 

     

    

 

1.46         “KHK
Patent Rights” means (a) the United States and foreign patents and patent applications listed on Schedule 1.46
and any Patent Rights arising from those patents and patent applications prior to the completion of the Term, (b) the United States
and foreign patents and patent applications licensed to KHK under the KHK In-Licenses but not listed on Schedule 1.46 and
any Patent Rights arising from those patents and patent applications prior to the completion of the Term, (c) any Patent Rights
included within KHK Inventions prior to the completion of the Term that are reasonably necessary or useful in connection with the
Development, Manufacture, use or Commercialization of Licensed Products in the Field in the Territory and (d) any Patents Rights
included in Third Party Technology prior to the completion of the Term (i) in respect of which KHK obtains Control after the Effective
Date and (ii) are reasonably necessary or useful in connection with the Development, Manufacture, use or Commercialization of Licensed
Products in the Field in the Territory.

 

1.47         “KHK
Technology” means KHK Patent Rights, KHK Know-How and KHK Inventions other than Acquirer Intellectual Property.

 

1.48         “Know-How”
means any non-public, proprietary invention, discovery, process, method, composition, formula, procedure, protocol, technique,
result of experimentation or testing, information, data, material, technology or other know-how, whether or not patentable or copyrightable.

 

1.49         “Licensed
Product” means any product containing as an active ingredient the Anti-LIGHT mAb.

 

1.50         “LIGHT”
means TNFSF14 (Unigene cluster number: Hs. 129708).

 

1.51         “LJI”
means La Jolla Institute for Allergy and Immunology and its respective successor and assigns, which has licensed rights to KHK
pursuant to the LJI Agreement.

 

1.52         “LJI
Agreement” means License Agreement between La Jolla Institute for Allergy and Immunology and Kyowa Hakko Kirin Co.,
Ltd. *****.

 

1.53         “Lonza”
means Lonza Sales AG and its Affiliates.

 

1.54         “Manufacturing”
means, as applicable, all activities associated with the production, manufacture, processing, filling, finishing, packaging, labeling,
shipping, and storage of Licensed Products and, solely with respect to Sections 7.5.1 and 7.5.2, a Competing Product,
including without limitation process and formulation development, process validation, stability testing, process development, manufacturing
scale-up, pre-clinical, clinical and commercial manufacture and analytical development, product characterization, quality assurance
and quality control, whether such activities are conducted by a Party, its Affiliates or a Third Party contractor of such Party.
When used as a verb, “Manufacture” will mean to engage in Manufacturing.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-10	 

     

    

 

1.55         “Manufacturing
Costs” means:

 

(a)          With
respect to Licensed Product manufactured by Medgenics, its fully-burdened costs (including the costs associated with product testing
and release activities) of producing (including startup and validation but excluding what will be covered under Section 4.3.3)
and packaging Licensed Product for sale in a given country, determined in accordance with the applicable Accounting Standard, based
on the sum of the following components: (i) direct costs, including manufacturing labor and materials directly incurred in producing
and packaging such Licensed Product; (ii) manufacturing and accounting personnel costs incurred by Medgenics and attributable and
reasonably allocable to the manufacture of Licensed Product, including quality labor and manufacturing and quality supervisory
services, depreciation, and other operating and administrative costs which of the manufacturing, quality and accounting departments
and associated occupancy costs which are allocable to such company departments based on space occupied or headcount, or other activity
based method of allocation; (iii) any other reasonable and customary Out-of-Pocket Costs incurred by Medgenics for the testing,
transport, customs clearance, duty, insurance and/or storage of such Licensed Products, including payments made by Medgenics to
Third Parties for filing, finishing, packaging, labeling, testing, storage and shipment of such Licensed Product and Medgenics’
handling cost with respect thereto, as applicable; and (iv) Medgenics’ reasonably allocated share of cost of Licensed Product
process improvements developed by Medgenics or a Third Party on behalf of Medgenics. For Licensed Products manufactured by Medgenics,
Manufacturing Cost will not include any general corporate overhead, any excess capacity cost or charges or cost for process development
(except to the extent expressly provided above).

 

(b)          With
respect to Licensed Product manufactured for Medgenics by one or more Third Parties and supplied to KHK hereunder amounts actually
paid (net of any discounts, credits or refunds) by such Party to such Third Parties for the manufacture and supply of such Licensed
Product.

 

1.56         “Medgenics
Business Day” means a day on which banking institutions in New York, New York are open for business other than Saturday
or Sunday.

 

1.57         “Medgenics
In-License” means each Third Party agreement listed on Schedule 1.57.

 

1.58         “Medgenics
Inventions” means any and all Inventions made or generated hereunder solely by employees or contractors of Medgenics
(or its Affiliates), as determined by the United States patent laws for inventorship, in each case while performing activities
under this Agreement.

 

1.59         “Medgenics
Know-How” means Know-How that is (a) Controlled by Medgenics or any of its Affiliates on the Effective Date or during
the Term (other than KHK Know-How pursuant to the licenses granted hereunder) and (b) reasonably necessary or useful in connection
with Development, Manufacture, use or Commercialization of Licensed Products.

 

1.60         “Medgenics
Licensor” means The Children’s Hospital of Philadelphia (“CHOP”).

 

1.61         “Medgenics
Lonza License Agreement” means an agreement between Medgenics and Lonza that licenses to Medgenics the intellectual
property rights subject to the ***** Agreement between Lonza and KHK *****, to the extent related to the Licensed Product in the
Field in the Territory and the European Union, including the right to sublicense to another contract manufacturer such that such
contract manufacturer can perform process development and supply of anti-LIGHT-mAb.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-11	 

     

    

 

1.62         “Medgenics
Patent Rights” means (a) the United States and foreign patents and patent applications listed on Schedule 1.61
and any Patent Rights arising from those patents and patent applications during the Term, (b) any Patent Rights included within
Medgenics Inventions that are reasonably necessary or useful in connection with the Development, Manufacture, use or Commercialization
of Licensed Products and (c) any Patents Rights included in Third Party Technology (i) in respect of which Medgenics obtains Control
after the Effective Date and (ii) are reasonably necessary or useful in connection with the Development, Manufacture, use or Commercialization
of Licensed Products.

 

1.63         “Medgenics
Technology” means Medgenics Know-How, Medgenics Patent Rights and Medgenics Inventions other than Acquirer Intellectual
Property.

 

1.64         “Medical
Affairs Activities” means, with respect to a Licensed Product, activities designed to ensure or improve appropriate
medical use of, conduct medical education of, or further research regarding, such Licensed Product, including, with respect to
such Licensed Product: (a) conducting service based medical activities including providing input and assistance with consultancy
meetings, recommending investigators for clinical trials and providing input in the design of such trials and other research related
activities, and delivering non-promotional communications and conduct non-promotional activities including presenting new clinical
trial data and other scientific information; (b) grants to support continuing medical education, symposia, or Third Party research
specifically related to such Licensed Product; (c) development, publication and dissemination of publications relating to such
Licensed Product and relevant disease states; (d) medical information services provided in response to inquiries communicated via
sales representatives or received by letter, phone call or email; (e) conducting advisory board meetings or other consultant programs;
(f) support of investigator-initiated clinical trials; (g) managing relationships with cooperative groups, physician/hospital networks
and advocacy groups; and (h) establishing and implementing risk, evaluation and mitigation strategies.

 

1.65         “Net
Sales” means the gross invoiced sales by a Party and/or its Related Parties to Third
Parties for Licensed Products sold, less deductions, consistent with applicable Accounting Standards used in the applicable reporting
period for such Party’s consolidated financial reporting purposes, which will be limited to: (a) price adjustments, chargeback
payments, credits, or rebates (or the equivalent thereof), allowances allowed and taken, quantity or other trade discounts
and other amounts paid on sale of Licensed Products, including those granted to and actually used by group purchasing organizations
or other buying groups, managed healthcare organizations, pharmacy benefit management companies, health maintenance organizations
and any other providers of health insurance coverage, health care organizations or other healthcare institutions (including hospitals),
Third Party health care administrators or patient assistance or other similar program, or to federal, state/provincial, local and
other governments, including their agencies, or to wholesalers, distributors and other trade customers; (b) sales, use, tariffs,
value-add, and/or excise taxes, or other governmental charges and tariffs incurred in connection with exportation or importation
directly imposed and with reference to particular sales; (c) reasonable and customary freight, postage, shipping, insurance and
other transportation expenses and delayed ship order credits reflected in the applicable invoice and paid by the customer; and
(d) amounts allowed, repaid or credited due to defects, returns, rejections, recalls, rebates and replacements and allowances of
goods or because of retroactive price reductions; (e) normal and customary rebates, trade, cash or quantity discounts; billing
errors; coupons for price reductions; (f) required distribution commissions/fees payable to Third Party wholesalers for distribution
of the Licensed Products; (g) allowance and write-offs for bad debt made in accordance with generally accepted accounting principles,
consistently applied to all of such Party’s products; (h) discounts pursuant to indigent patient programs and patient discount
programs including coupon discounts; and (i) any item, substantially similar in character or substance to any of the foregoing
permitted by the applicable Accounting Standards and customary in the pharmaceutical industry.  Net Sales also includes the
Fair Market Value of any non-cash consideration received in connection with the sale of the Licensed Products.  In the case
of any sale of Licensed Product for value other than in an arm’s length transaction exclusively for cash, Net Sales will
be determined by referencing Net Sales at which substantially similar quantities of such Licensed Product are sold in an arm’s
length transaction for cash. For purposes of calculating Net Sales, transfers of Licensed Product between a Party and its
Related Parties, whether or not value is exchanged therefor, will not be booked as sales.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-12	 

     

    

 

1.66         “Out-of-Pocket
Costs” means, with respect to specified activities hereunder, direct expenses paid or payable by a Party or its Related
Parties to Third Parties (other than employees of such Party or its Related Parties) that are specifically identifiable and incurred
to conduct such activities.

 

1.67         “Patent
Rights” means all patents (including all reissues, extensions, substitutions, confirmations, re-registrations, re-examinations,
revivals or revalidations, supplementary protection certificates and patents of addition) and patent applications (including all
provisional applications, continuations, continuations-in-part and divisions).

 

1.68         “PHS
Act” means the Public Health Services Act (Title 42, U.S.C., Chapter 6A). As used herein the PHS Act will refer,
more specifically, to 42 USC § 262, which governs the regulation of biological products.

 

1.69         “Product
Labels and Inserts” means (a) all labels and other written, printed or graphic matter affixed to any container, packaging
or wrapper utilized with Licensed Product, or (b) any written material physically accompanying Licensed Product, including product
package inserts.

 

1.70         “Product
Trademarks” means the trademark(s), service mark(s), accompanying logos, trade dress and/or indicia of origin used
in connection with the Commercialization of each Licensed Product in the Territory. For purposes of clarity, the term Product Trademark(s)
will not include, without limitation, the corporate names and logos of either Party, and will include any internet domain names
incorporating such Product Trademarks.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-13	 

     

    

 

1.71         “Profit”
means with respect to all Profit-Share Products with respect to a Contract Quarter and a country in the Territory: (a) Net Sales
of such Profit-Share Products in the Field in the Territory by Medgenics and its Affiliates, plus (b) Profit-Share Product Proceeds,
minus (c) Allowable Expenses, to the extent such deductions have not already or otherwise been deducted in calculating the
amounts described in (a) and (b) above. If a calculation of Profit for a given Contract Quarter pursuant to the preceding sentence
would result in a negative number, the amount of such Profit for such Contract Quarter will be zero (0).

 

1.72         “Profit-Share
Product” means a Licensed Product Commercialized by Medgenics or its Related Parties in the Territory.

 

1.73         “Profit-Share
Product Proceeds” means, with respect to Profit-Share Products, any proceeds received by Medgenics or its Affiliates
from Third Parties with respect to the Development, Manufacture, supply, or Commercialization of such Profit-Share Products in
the Field in the Territory, including proceeds attributable to a grant of a license or sublicense, or a grant of distribution rights,
to permitted sublicensees and distributors under this Agreement, to Develop, Manufacture or Commercialize such Profit-Share Products
(or, if rights in addition to such rights to such Profit-Share Products are granted to such Third Party, then reasonably allocated
to the rights granted to such Third Party with respect to such Profit-Share Products). In the event any Third Party sublicensee
makes a bona fide investment in any equity securities issued by Medgenics or any of its Affiliates, the cash consideration and
the Fair Market Value of any non-cash consideration received by Medgenics and its Affiliates in exchange therefor will be excluded
from the calculation of Profit-Share Product Proceeds, up to the Fair Market Value of such equity securities, and the sum of any
cash consideration and the Fair Market Value of any non-cash consideration received by Medgenics and its Affiliates in excess of
the Fair Market Value of such equity securities will be included in the calculation of Profit-Share Product Proceeds.

 

1.74         “Regulatory
Approval” means the approval of the applicable Regulatory Authority necessary for the commercial manufacture, distribution,
marketing, promotion, offer for sale, use, import, export and sale of a Licensed Product in a regulatory jurisdiction, including,
where required, separate pricing and/or reimbursement approvals.

 

1.75         “Regulatory
Approval Application” means an application submitted to the appropriate Regulatory Authority seeking Regulatory Approval
of a Licensed Product in a regulatory jurisdiction, including without limitation a BLA.

 

1.76         “Regulatory
Authority” means any applicable supranational, national, regional, state or local regulatory agency, department,
bureau, commission, council or other government entity involved in granting of Regulatory Approval for a Licensed Product in a
regulatory jurisdiction, including without limitation the FDA and the EMA.

 

1.77         “Regulatory
Materials” means any regulatory submissions, notifications, registrations, approvals and/or other filings and correspondence
made to or with a Regulatory Authority, and any other records required to be maintained for possible audit by a Regulatory Authority,
that may be necessary or reasonably desirable to Develop, Manufacture, or Commercialize Licensed Products in the Territory.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-14	 

     

    

 

1.78         “Related
Party” means, with respect to a Party, such Party’s Affiliates and permitted licensees and sublicensees, which
term does not include wholesale distributors of such Party or its Affiliates, which distributors purchase a Licensed Product from
such Party or its Affiliates in an arm’s-length transaction.

 

1.79         “Royalty-Bearing
Sales” means Net Sales by KHK and its Affiliates of Licensed Products worldwide.

 

1.80         “Sanofi”
means Sanofi, successor in interest to Sanofi-Aventis.

 

1.81         “Significant
Impact” means a decrease in Medgenics’ and its Related Parties’ Net Sales of Licensed Products *****.

 

1.82         “Substantive
Contact” means any contact to or from a Regulatory Authority that is not an Administrative Contact.

 

1.83         “Sublicensing
Royalties” means royalties and sales milestones received by KHK from its licensees or sublicensees on Net Sales by
such licensees or sublicensees of Licensed Products worldwide.

 

1.84         “Territory”
means the United States and its territories and possessions, the European Union, and Canada.

 

1.85         “Third
Party” means any person or entity other than a Party or any of its Affiliates.

 

1.86         “Third
Party Technology” means any Patent Rights, Know-How, inventions, or other intellectual property owned, in whole or
in part, by or licensed to a Third Party.

 

1.87         “Third
Party Technology Costs” means, with respect to a Profit-Share Product, royalties, license fees or other payments,
as applicable, that are made to any Third Party for the use of any Third Party Technology and are reasonably allocable to and reasonably
necessary or useful for, the Development, Manufacturing or Commercialization of such Licensed Product in the Field in the Territory.
For the avoidance of doubt:

 

(a)          the
amounts payable to the KHK Licensors under the KHK In-Licenses are Third Party Technology Costs, provided however that:

 

(i)          with
respect to payments paid by KHK to LJI *****, only payments stipulated in paragraphs (1) and (3) of Section 12 of such addendum
will be included in the Third Party Technology Costs and all other costs such as milestone payments will be solely borne by KHK
and not included in Third Party Technology Costs;

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-15	 

     

    

 

(ii)         with
respect to payments paid by KHK to Lonza *****, only payments stipulated in Section 5.2 of such agreement will be included in the
Third Party Technology Costs and all other costs except for annual maintenance fee which is stipulated in Section 8.6.4(c)
in this Agreement, will be solely borne by KHK and not included in Third Party Technology Costs;

 

(iii)        with
respect to payments paid by KHK to BMS *****, only payments stipulated in Section 10.6.1(a)(i) of such agreement will be included
in the Third Party Technology Costs and all other costs will be solely borne by KHK and not included in Third Party Technology
Costs;

 

(b)          the
amounts payable by Medgenics:

 

(i)          to
the Medgenics Licensor pursuant to Section 6.4.1 and, with respect to amounts payable after receipt of the first Regulatory Approval
for a Licensed Product in the Field in the Territory, pursuant to Section 6.2 under the Medgenics In-License will be included in
the Third Party Technology Costs, and payments paid by Medgenics to CHOP with respect of all other costs under the Medgenics In-License,
including but not limited to milestone payments, will be solely borne by Medgenics and not included in Third Party Technology Costs;
and

 

(ii)         as
royalties under the Medgenics Lonza License Agreement shall be treated as Third Party Technology Costs; and

 

(c)          the
amounts payable for obtaining rights to Third Party Technology for the Territory under Section 9.5 are Third Party Technology
Costs.

 

1.88         Additional
Definitions. The following terms have the meanings set forth in the corresponding Sections of this Agreement:

 

	Term	 	Section
	“Agreement”	 	Preamble
	“Audited Party”	 	8.6.6
	“BPCIA”	 	9.6.2
	“Challenge”	 	11.2.4
	“CHOP”	 	1.60
	“Clinical Development and Option Agreement”	 	Introduction
	“Commercialization Plan”	 	5.2
	“Co-Chairperson”	 	3.1.1(b)
	“Controlling Party”	 	9.3.3
	“Cooperating Party”	 	9.3.3
	“Defending Party”	 	9.4.2(a)
	“Defensive Actions”	 	9.3.2
	“Disclosing Party”	 	10.1.1
	“Effective Date”	 	2.1

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-16	 

     

    

 

	“Enforcement Expense”	 	9.3.3
	“EU5 Countries”	 	6.2
	“GAAP”	 	1.1
	“Global Clinical Study”	 	4.2.4
	“ICC”	 	13.2.2(a)
	“Indemnitee”	 	12.10.3
	“Infringement Claim”	 	9.4.1
	“Inspecting Party”	 	5.3.3
	“IP”	 	11.7
	“Joint Patent”	 	9.2.2
	“Joint Steering Committee” or “JSC”	 	3.1.1
	“KHK”	 	Preamble
	“KHK Indemnitees”	 	12.10.1
	“KHK Managed Patent Rights”	 	9.2.1
	“KHK Territory Royalty Rate”	 	8.5.1
	“Losses”	 	12.10.1
	“Medgenics”	 	Preamble
	“Medgenics Indemnitees”	 	12.10.2
	“Other Royalty Rate”	 	8.5.1
	“Party” or “Parties”	 	Preamble
	“Phase 3 Clinical Trial”	 	4.2.5
	“Phase 4 Clinical Trial”	 	1.25
	“Phase 5 Clinical Trial”	 	1.16
	“Plan A Election”	 	Introduction
	“Plan B Election”	 	Introduction
	“Prosecuting Party”	 	9.2.2
	“Publications”	 	10.2.2
	“Receiving Party”	 	10.1.1
	“Recoveries”	 	9.3.3
	“Reference Product Sponsor”	 	9.6.2
	“Requesting Party”	 	8.6.6
	“ROFR Period”	 	7.5.2(b)
	“Section 351(k) Applicant”	 	9.6.1
	“SPC”	 	9.8
	“Supply Agreement”	 	5.3.2
	“Term”	 	11.1
	“Territory Royalty Rate”	 	8.5.1
	“Third Party Claim”	 	12.10.1

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-17	 

     

    

 

Article
2.

EFFECTIVENESS OF THIS AGREEMENT 

 

2.1           Effectiveness
of this Agreement upon the Plan B Election. This Agreement is not and will not become effective except as set forth
in this Section 2.1. As of the date on which KHK provides notice to Medgenics that KHK has elected the Plan B Election in
accordance with Section 4.1.4 of the Clinical Development and Option Agreement, this Agreement shall automatically become effective.
Such date is referred to in this Agreement as the “Effective Date.”

 

2.2           Non-Effectiveness
of this Agreement. Upon the earliest to occur of (a) the termination of the Clinical Development and Option Agreement
pursuant to any of Section 7.2, 7.3, 7.4 or 7.5 thereof, (b) KHK making or being deemed to make the Plan A Election in accordance
with Section 4.1.4 of the Clinical Development and Option Agreement or (c) the expiration of the Clinical Development and Option
Agreement pursuant to Section 7.1(a) thereof, this Agreement will not become effective and be rendered null and void.

 

Article
3.

GOVERNANCE

 

3.1           Joint
Steering Committee.

 

3.1.1           Establishment
of JSC. As soon as practicable and no later than ***** after the Effective Date, the Parties will establish a committee to
facilitate the Development and Commercialization of Licensed Products under this Agreement (the “Joint Steering Committee”
or “JSC”) as follows:

 

(a)          Composition
of the Joint Steering Committee. The JSC will be comprised of two (2) representatives designated by each of the Parties. Each
representative will be an individual with significant experience or expertise in biopharmaceutical drug development. Each Party
will appoint its respective initial representatives to the JSC ***** after the Effective Date, and may from time to time substitute
its representatives, in its sole discretion, effective upon notice to the other Party of such change. Additional representatives
or consultants may from time to time be invited to attend JSC meetings, subject to such representatives’ and consultants’
written agreement to comply with the requirements of Article 10. Each Party will bear its own expenses relating to attendance
at such meetings by its representatives and consultants.

 

(b)          Chairperson.
Each Party will designate one (1) of its representatives to be a co-chairperson (“Co-Chairperson”). Each
Co-Chairperson or its designee will conduct the following activities of the Joint Steering Committee cooperatively: (i) scheduling
meetings at least once per Contract Year, but more frequently if the JSC determines it necessary; (ii) setting agendas for
meetings with solicited input from representatives of each Party; (iii) preparing and confirming minutes of the meetings,
which will provide a description in reasonable detail of the discussions held at the meeting and a list of any actions, decisions
or determinations made by the JSC, and delivering minutes to each Party’s senior management for review and final approval;
and (iv) conducting effective meetings, including ensuring that objectives for each meeting are set and achieved.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-18	 

     

    

 

(c)          Meetings.
The JSC will meet in accordance with a schedule established by mutual written agreement of the Parties, but no less frequently
than once per Contract Year. The JSC may meet by means of teleconference, videoconference or other similar communications equipment.

 

(d)          Role.
The JSC is a consultative body and may discuss any matter that a Party’s Co-Chairperson includes in the agenda for the meeting
including:

 

(i)          sharing
information and discussing all Development Plans and amendments and updates thereto as well as KHK’s development of the Licensed
Product outside the Territory including Development of indications beyond the initial indication;

 

(ii)         sharing
information, discussing, and coordinating global regulatory strategy, global clinical development strategy, and global clinical
supply strategy;

 

(iii)        sharing
information and discussing Commercialization of the Licensed Products, including strategic objectives and plans (including pricing
and reimbursements), the Commercialization Plans and budgets and material amendments or updates thereto submitted to KHK by Medgenics
and Commercialization issues; and

 

(iv)        discussing
disputes between the Parties and discussing potential resolutions thereto.

 

3.1.2           Decision-Making.
The JSC is a consultative body only and has no decision making power. For the avoidance of doubt, Medgenics has sole decision-making
power to with respect to Development, Manufacturing and Commercialization of the Licensed Product in the Field in the Territory.

 

Article
4.

DEVELOPMENT

 

4.1           Overview.
Medgenics will be responsible for all Development of the Licensed Product in the Field in the Territory. Medgenics will bear all
costs and expenses incurred in connection with the Development of Licensed Product in the Field in the Territory, including any
and all regulatory activities, and, for clarity, none of such costs will be included in Allowable Expenses.

 

4.2           Development
Plans.

 

4.2.1           Development
Plans. The initial Development Plan for the initial indication in the Field in the United States and the European Union is
attached hereto as Schedule 4.2.1. The initial Development Plan is a non-binding understanding of Medgenics’ current
plans for the Development of Licensed Products for the initial indication in the Field in the United States and the European Union,
and is included for informational purposes only. Medgenics will update the initial Development Plan within ***** after the Effective
Date.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-19	 

     

    

 

4.2.2           Additional
Indications. At any time, Medgenics may Develop in the Territory Licensed Products for additional indications in the Field
(i.e., in addition to the first indication). In case KHK or any of its Related Parties wishes to Develop any Licensed Product for
additional indications in the Field in any jurisdiction, and if in such cases Medgenics is not Developing the same or similar indication
in the Field in the Territory, the Parties will discuss in good faith regarding such Development by KHK or its Related Parties.
Neither KHK nor any of its Related Parties will Develop any Licensed Product for additional indications in the Field in any jurisdiction
unless Medgenics is also Developing the same or similar indication in the Field in the Territory or Medgenics otherwise consents
in writing after the discussion with KHK set forth above.

 

4.2.3           Updates.
No later than ***** prior to the beginning of the next Contract Year, Medgenics will update each Development Plan and submit such
updated Development Plans to KHK for informational purposes. Each Development Plan will contain the specific Development objectives
to be achieved by Medgenics during the then-current Contract Year and the annual budget for such Contract Year and the timeline
for performing such Development activities. Medgenics will use its Commercially Reasonable Efforts to perform the activities set
forth in each Development Plan.

 

4.2.4           Global
Clinical Study. If Medgenics conducts a Global Clinical Study in the Field in any country in the Territory, at KHK’s
request Medgenics will in good faith discuss with KHK including sites in countries outside of the Territory for such Global Clinical
Study in order for KHK to join such Global Clinical Study. In order for Medgenics to include such sites in the Global Clinical
Trial, such discussions must result in a mutually satisfactory amendment to this Agreement that addresses all relevant matters
including operational matters (such as allocation of responsibilities between the Parties), regulatory matters (such as preparation
of any required IND, management of communications with Regulatory Authorities and which Party will be the holder of the IND/sponsor
of the trial), risk matters (including KHK indemnifying Medgenics for Losses resulting from Third Party Claims arising from the
trial at such sites including product liability and from Medgenics’ performance of its allocated responsibilities) and KHK
bearing all costs associated with all of the foregoing. In this Agreement, “Global Clinical Study” means,
with respect to Development of Licensed Products, a study with a unique protocol, the results of which are designed to be submitted
to Regulatory Authorities of the United States and European Union and other countries as mandatory for obtaining Regulatory Approval
of such Licensed Products in the respective countries.

 

4.2.5           Development
Event Notices. Medgenics will inform KHK of the occurrence of each of the following events in writing within ***** after such
occurrence: (a) commencement of the first Phase 3 Clinical Trial for any Licensed Product in the Territory; and (b) receipt of
the first Regulatory Approval for any Licensed Product in the Territory. In this Agreement, “Phase 3 Clinical Trial”
means a registration or pivotal clinical trial performed in accordance with applicable laws and conducted in subjects with a particular
disease or condition which is designed to establish the efficacy and safety of a Licensed Product given its intended use and to
define warnings, precautions and adverse events that are associated with such Licensed Product in the dosage range intended to
be prescribed.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-20	 

     

    

 

4.3           Development
Responsibilities for Licensed Products. Medgenics will be responsible for Development activities for Licensed Product
for the Field for Territory as follows:

 

4.3.1           Regulatory
Matters.

 

(a)          Strategy.
Medgenics will develop a regulatory strategy for the Field for the Territory (subject to Section 6.1.1 in
the case of terminated countries in the European Union and Section 6.1.2 in the case of Canada), that is consistent with
the terms of this Agreement. Pursuant to and in accordance with such regulatory strategy, Medgenics will use Commercially Reasonable
Efforts to prepare Regulatory Approval Applications or other submissions to Regulatory Authorities that are suitable in content
and format for use in all geographies in the applicable Territory (e.g., use of ICH eCTD format).

 

(b)          Communications
with Regulatory Authorities. Medgenics will be responsible for all communications with Regulatory Authorities concerning the
Licensed Product in the Field in the Territory. Medgenics will disclose to KHK any and all material correspondence between Medgenics
and any Regulatory Authority in the Territory and minutes concerning the Development of the Licensed Product in the Field in the
Territory received from any Regulatory Authority within ***** after receipt or transmission thereof. Medgenics will keep KHK informed
of any planned or actual communications with any Regulatory Authority regarding Development of the Licensed Product in the Field
in the Territory.

 

(c)          Regulatory
Approvals.

 

(i)          Medgenics
will be responsible for preparing and filing Regulatory Approval Applications for the Licensed Products in the Field for the Territory
(subject to Section 6.1.1 in the case of terminated countries in the European Union and Section 6.1.2 in the
case of Canada). Such Regulatory Approval Applications and any resulting Regulatory Approvals of the Licensed Products in the Field
in the Territory will be made and issued in the name of Medgenics or its Related Parties. Medgenics will provide KHK with drafts
of any Regulatory Approval Applications for the Licensed Products in the Field for the Territory sufficiently in advance of submission
to allow KHK to review and comment on such documents.

 

(ii)         Medgenics
grants KHK a right of reference to Regulatory Approval Applications filed by Medgenics in the Territory for purposes of KHK obtaining
Regulatory Approval (a) outside the Field in the Territory and (b) outside the Territory and will provide the FDA with any required
document to effect such right of reference. In addition, Medgenics will provide KHK manufacturing information for the CMC section
of KHK’s Regulatory Approval Applications for the Licensed Product outside the Territory where applicable.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-21	 

     

    

 

(d)          Assistance.
Each Party will cooperate with the other Party to provide all reasonable assistance and take all actions reasonably requested by
the other Party that are necessary or desirable to enable the other Party to comply with any Applicable Law, including, but not
limited to, reporting adverse drug experiences (and serious adverse drug experiences) to the applicable Regulatory Authorities.

 

4.3.2           Clinical
Development. Medgenics will develop a clinical development strategy for the Field for the Territory. Each Development Plan
will be consistent with such clinical development strategy. Medgenics will conduct clinical Development for Licensed Product in
the Field for the Territory as necessary for preparing and submitting Regulatory Approval Applications in the Territory. Medgenics
will provide reasonable consultation to KHK upon KHK’s request in connection with Development of the Licensed Product outside
the Territory.

 

4.3.3           CMC.
Medgenics will be solely responsible for all chemistry, manufacturing and control activities for the Licensed Product to support
Regulatory Approval in the Field in the Territory, which, for clarity includes all CMC activities up to and including manufacturing
process development, commercial scale-up and validation. Medgenics will bear all costs and expenses incurred in connection with
the Manufacture of clinical supplies of Licensed Product for Development in the Field in the Territory (including failed batches
and any batches, or parts thereof, that are Manufactured after the Effective Date, in anticipation of clinical studies but which
are not actually used), and disposal of clinical samples, and, for clarity, none of such costs will be included in Allowable Expenses.

 

4.3.4           Preclinical
Development. If deemed necessary by Medgenics, Medgenics will develop a preclinical strategy for the Territory, which strategy
may include each of the Parties (subject to KHK’s consent over activities to be performed by KHK, which may be withheld in
KHK’s sole discretion), (a) preparing and reviewing the preclinical sections of all Regulatory Approval Applications and
other submissions to any Regulatory Authorities for the Territory, and (b) providing pharmacokinetic, pathology, toxicology and
bioanalytical support for the clinical program.

 

4.4           Drug
Safety.

 

4.4.1           Responsibility
Before First Commercial Sale. Prior to the First Commercial Sale of a Licensed Product anywhere in the world, whether inside
or outside the Field, Medgenics will hold and manage a safety database and will lead safety monitoring and reporting in Field in
the Territory, and when KHK conducts any clinical trials for the Licensed Product, KHK will hold and manage a safety database during
clinical development and will lead safety monitoring and reporting outside the Field in the Territory and outside the Territory.
Each Party will allow the other Party and its Affiliates and sublicensees or Third Parties acting on their respective behalf, to:

 

(a)          review
all serious adverse events within time frames that comply with 21 CFR 312.32;

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-22	 

     

    

 

(b)          review
IND safety reports, investigator brochure amendments, patient consent forms and clinical protocols;

 

(c)          review
monthly line listings;

 

(d)          read
and write to each Party’s database;

 

(e)          participate
in signaling discussions; and

 

(f)          review
all periodic reporting required by Regulatory Authorities (e.g., IND Annual Reports, EU Annual Safety Reports, etc.).

 

The Parties agree to
jointly develop and enter into a global safety data exchange and pharmacovigilance agreement to facilitate this exchange of information
no later than ***** prior to the date of initiation of the first clinical study sponsored by KHK if and when KHK decides to Develop
the Licensed Product in its jurisdiction. In such case, Medgenics will be responsible for holding and maintaining the global database
for the Licensed Product.

 

4.4.2           After
First Commercial Sale. In case the Parties have not entered in to a global safety data exchange and pharmacovigilance agreement
according to Section 4.4.1, when KHK decides to Commercialize the Licensed Product in its jurisdiction, no later than *****
prior to the date of initiation of the first clinical study of the Licensed Product sponsored by KHK, if any, or the anticipated
First Commercial Sale of a Licensed Product by KHK, Medgenics and KHK will jointly develop and enter into a global safety data
exchange and pharmacovigilance agreement. In such case, Medgenics will be responsible for holding and maintaining the global database
for the Licensed Product.

 

4.5           Records.
Each Party will maintain scientific records, in sufficient detail and in good scientific manner appropriate for patent and regulatory
purposes, which will fully and properly reflect all work done and results achieved in the performance of Development under this
Agreement by such Party. Each Party will have the right, during normal business hours and upon reasonable notice, to inspect and
copy (or request the other Party to copy) all records of the other Party maintained in connection with the work done and results
achieved in the performance of Development under this Agreement. All such records and the information disclosed therein will be
maintained in confidence by the recipient in accordance with Article 10.

 

4.6           Know-How
Transfer. In order to facilitate Development of Licensed Products, from time to time during the Term, each Party will
disclose or transfer to the other Party any applicable KHK Know-How or Medgenics Know-How, as the case may be, existing as of the
Effective Date or developed after the Effective Date that is reasonably necessary or useful for the Development or Manufacture
of the Licensed Products. Except as otherwise provided under this Agreement or explicitly authorized in writing by a Party, all
Know-How delivered by such Party to the other Party will remain the sole property of such Party.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-23	 

     

    

 

Article
5.

COMMERCIALIZATION

 

5.1           Commercialization.
Medgenics will be solely responsible for all Commercialization activities relating to the Licensed Products in the Field in the
Territory, and as between Medgenics and KHK, Medgenics will record all revenues in connection with the Commercialization of Licensed
Products in Field in the Territory. KHK will be solely responsible for all Commercialization activities relating to the Licensed
Products (a) outside the Field in the Territory and (b) outside the Territory, and as between Medgenics and KHK, KHK will
record all revenues in connection with the Commercialization of Licensed Products (i) outside the Field in the Territory and
(ii) outside the Territory. Medgenics will provide reasonable consultation to KHK upon KHK’s request in connection with
Commercialization of the Licensed Product outside the Territory.

 

5.2           Commercialization
Plans and Budgets. Commencing at least ***** prior to the projected First Commercial Sale of a Licensed Product in the
Field in the Territory, Medgenics will commence preparing a commercialization plan (each, a “Commercialization Plan”)
for such Licensed Product in the Field in the Territory, including but not limited to marketing strategies and materials, and patient
advocacy, and its planned annual budget estimating with reasonable detail Allowable Expenses expected to be incurred by Medgenics
in connection with the Commercialization of Profit-Share Products. No later than ***** prior to the projected First Commercial
Sale of such Licensed Product in the Territory, Medgenics will submit a Commercialization Plan to KHK for information only. After
the launch of such Licensed Product, no later than ***** prior to the beginning of the next Contract Year, Medgenics will update
the Commercialization Plan for the Field in the Territory for such Licensed Product and submit such updates to KHK for information
only. During the course of Medgenics’ initial preparation of the Commercialization Plan and any subsequent updates, KHK may
provide input on Commercialization strategies for Field for the Territory. Medgenics will give reasonable consideration to KHK’s
input, but KHK acknowledges that Medgenics has the final decision-making authority over Commercialization activities in Field in
the Territory.

 

5.3           Manufacturing
and Supply.

 

5.3.1           Responsibility.
Medgenics will develop a manufacturing and supply strategy for the Territory. Pursuant to this strategy, Medgenics will be solely
responsible for operational management of Manufacturing and supplying any Licensed Product for Commercialization in the Field in
the Territory.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-24	 

     

    

 

5.3.2           Supply
by Medgenics. Medgenics will Manufacture and supply all of KHK’s requirements of Licensed Product for Commercialization
and/or Development outside the Field in the Territory and outside the Territory. Medgenics will supply KHK with unlabeled vialed
Licensed Product for clinical trials conducted (a) outside the Territory, and (b) outside of the Field in the Territory
and unlabeled vialed Licensed Product for Commercialization (i)  outside the Territory or (ii) outside the Field in the
Territory, in each case *****. Medgenics’ distribution of Licensed Product will be to a single distributor or Affiliate of
KHK, as directed by KHK. Medgenics will ship all Licensed Product FCA (INCOTERMS 2010) Medgenics’ point of destination. The
Parties will use Commercially Reasonable Efforts to complete within ***** after the Effective Date a supply agreement governing
the terms of such supply by Medgenics to KHK containing reasonable and customary terms contained herein and those additional terms
typically associated with supply of pharmaceutical products (the “Supply Agreement”).

 

5.3.3           Inspection
Rights. Not more than once per year, if KHK (the “Inspecting Party”) has any reasonable concerns
regarding Medgenics’ or its Related Parties’ Manufacturing of any Licensed Products or any other reasonable necessities
for inspection or audit, the Inspecting Party will have the right, at the Inspecting Party’s expense and on not less than
***** prior notice, to inspect the facilities where the other Party or its Related Parties Manufacture, or have Manufactured, any
Licensed Products and to audit the procedures of such other Party or its Related Parties for the Manufacturing of Licensed Products
for purposes of quality control.

 

5.4           Medical
Affairs Activities. Medgenics will be solely responsible for Medical Affairs Activities with the Licensed Products in
the Field in the Territory, and KHK will be solely responsible for Medical Affairs Activities with the Licensed Products outside
the Territory. The applicable Party that is responsible for Medical Affairs Activities will have the exclusive right to respond
to all questions or requests for information about the Licensed Products made by any medical professionals or any other Person
in its respective territory and field that are beyond the scope of the Product Labels and Inserts.

 

5.5           Cross
Territory Sales.

 

5.5.1           KHK
Restrictions. KHK will not Commercialize or authorize the Commercialization of any Licensed Product in the Field in the Territory.
KHK will not, itself or through any of its Affiliates or any Third Party, directly solicit, advertise, sell, distribute, ship,
consign, or otherwise transfer any Licensed Products in the Field in the Territory; provided that KHK may ship, consign, or otherwise
transfer any Licensed Product inside Territory for purposes of Manufacturing the Licensed Products for Development and Commercialization
of the Licensed Products outside Territory or outside the Field in the Territory. KHK will use Commercially Reasonable Efforts
to ensure that Licensed Products sold by or on behalf of KHK outside the Territory are not Commercialized in the Field in the Territory,
including use via re-importation from a country or jurisdiction outside the Territory. Without limiting the generality of the foregoing,
KHK will not, and will not permit any of its Related Parties to, sell any Licensed Product to a purchaser if it knows that such
purchaser does, or intends to, promote the use of such Licensed Product in the Field in the Territory. KHK will use Commercially
Reasonable Efforts to ensure that its Related Parties comply with all of the foregoing obligations, including via the enforcement
of KHK’s contracts with any of the foregoing.

 

5.5.2           Medgenics
Restrictions. Medgenics will not Commercialize or authorize the Commercialization of any Licensed Product outside the Territory
or outside the Field in the Territory. Medgenics will not, itself or through any of its Affiliates or any Third Party, directly
solicit, advertise, sell, distribute, ship, consign, or otherwise transfer any Licensed Product outside the Territory or outside
the Field in the Territory; provided that Medgenics may ship, consign, or otherwise transfer any Licensed Product outside the Territory
for purposes of Manufacturing the Licensed Products and/or Developing the Licensed Products for Commercialization in the Field
in the Territory. Medgenics will use Commercially Reasonable Efforts to ensure that Licensed Products sold by or on behalf of Medgenics
in the Territory are not Commercialized outside the Territory. Without limiting the generality of the foregoing, Medgenics will
not, and will not permit any of its Related Parties to, sell any Licensed Product to a purchaser if it knows that such purchaser
does, or intends to, promote the use of such Licensed Product outside the Field in the Territory or facilitate the use of such
Licensed Product outside the Territory. Medgenics will use Commercially Reasonable Efforts to ensure that its Related Parties comply
with all of the foregoing obligations, including via the enforcement of Medgenics’ contracts with any of the foregoing.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-25	 

     

    

 

Article
6.

DILIGENCE

 

6.1           Diligence
in Development.

 

6.1.1           Generally.
Medgenics will use Commercially Reasonable Efforts to Develop a Licensed Product in the Field in the Territory (both in United
States and in the European Union, subject, with respect to Canada, to Section 6.1.2) and to obtain Regulatory Approvals
for the Licensed Product in the Field in the Territory (subject, with respect to Canada, to Section 6.1.2). Subject to Section
6.1.2, if, with respect to any country in the Territory or the European Union, Medgenics (a) does not *****, or (b) *****
files a Regulatory Approval Application but does not obtain Regulatory Approval and no additional clinical Development or Manufacturing
activities are being conducted *****, then KHK will have the right to terminate this Agreement with respect to such country. For
the avoidance of doubt, the filing of a Regulatory Approval Application with the EMA is considered a filing of a Regulatory Approval
Application in all countries of the European Union.

 

6.1.2           Canada.
With respect to Canada, the Parties will discuss Development of a Licensed Product in the Field in Canada at an appropriate time
after Development of the Licensed Product for the initial indication in the Field in the Territory and the European Union is substantially
advanced. Such discussion should take place no later than when Medgenics decides to file the first Regulatory Approval Application
for the Licensed Products in the Field in the United States, following the data readout of the Phase 3 Clinical Trial. If the Parties
unanimously agree not to proceed with the Development of a Licensed Product in the Field in Canada and not to obtain Regulatory
Approval for the Licensed Product in the Field in Canada, then Medgenics will not be required to use Commercially Reasonable Efforts
to Develop a Licensed Product and to obtain Regulatory Approvals for the Licensed Product in the Field in Canada. If Medgenics
elects not to proceed with the Development of a Licensed Product in the Field in Canada and not to obtain Regulatory Approval for
the Licensed Product in the Field in Canada, and KHK does not agree to the foregoing, then KHK may terminate this Agreement pursuant
to Section 11.2.3 solely with respect to Canada, and Medgenics will not be required to use Commercially Reasonable Efforts
to Develop a Licensed Product in the Field in Canada and to obtain Regulatory Approvals for the Licensed Product in the Field in
Canada.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-26	 

     

    

 

6.2           Diligence
in Commercialization. Medgenics will use Commercially Reasonable Efforts to Commercialize each Licensed Product in the
United States and Canada after Regulatory Approval is obtained in such country, including identifying and committing sufficient
resources for pre-launch, launch and subsequent Commercialization activities. Medgenics will use Commercially Reasonable Efforts
to Commercialize each Licensed Product in the United Kingdom, France, Germany, Spain, and Italy (“EU5 Countries”);
provided that Regulatory Approval is obtained for such country, including identifying and committing sufficient resources for pre-launch,
launch and subsequent Commercialization activities. Both Parties acknowledge and agree that there may be cases that Medgenics may
use Commercially Reasonable Efforts and choose not to Commercialize the Licensed Product in some of the EU5 Countries due to reimbursement
pricing or for some other reasons, and in such cases Medgenics will not be liable for a breach of the diligence obligation set
forth in this Section 6.2 in respect of such country.

 

6.3           Reports.
On a semiannual basis but not later than June 30 and December 31 of each Contract Year, Medgenics will provide to KHK a written
report summarizing its (a) Development (including the status of any Regulatory Approval process) activities in the Territory and
(b) Commercialization activities with respect to the Licensed Products in the Territory on a Licensed Product-by-Licensed Product
and country-by-country basis during the just-ended semiannual period.

 

Article
7.

LICENSES 

 

7.1           License
Grants to Medgenics. Subject to the terms and conditions of this Agreement, KHK grants to Medgenics, under the KHK Technology,
an exclusive, non-transferable (except in accordance with Section 13.3) license, with the right to grant sublicenses solely as
provided in Section 7.4, to:

 

7.1.1           Develop
Licensed Products in the Field in the Territory;

 

7.1.2           Manufacture
or have Manufactured (subject to Sections 7.4.4 and 7.6) Licensed Products; and

 

7.1.3           use,
offer for sale, sell, have sold and otherwise Commercialize Licensed Products in the Field in the Territory; in each of clause
(i), (ii), and (iii) in accordance with this Agreement.

 

7.2           License
Grants to KHK. Subject to the terms and conditions of this Agreement, Medgenics grants KHK, under the Medgenics Technology,
a non-exclusive license, royalty-free (except as to the Medgenics In-License as set forth in Section 8.6.4(b)) license,
with the right to sublicense solely as provided in Section 7.4, to:

 

7.2.1           
Develop, have Developed, Manufacture, have Manufactured, use, offer for sale, sell, have sold and otherwise Commercialize and have
Commercialized Licensed Products outside the Field in the Territory and in any and all fields outside the Territory; and

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-27	 

     

    

 

7.2.2           Develop,
have Developed, Manufacture, have Manufactured, use, offer for sale, sell, have sold and otherwise Commercialize and have Commercialized
any diagnostic product that is reasonably necessary or useful in connection with the Manufacture, use, offer for sale, and/or sale
of the Licensed Product outside the Field in the Territory and in any and all fields outside the Territory.

 

7.3           Rights
of Reference. Each Party hereby grants to the other Party the right to reference any and all Regulatory Approval Applications
and Regulatory Approvals filed or obtained by the other Party in respect of a Licensed Product solely for use in connection with
exercising such Party's rights under Section 7.1 or 7.2, as applicable.

 

7.4           Sublicenses.

 

7.4.1           Right
to Sublicense. Medgenics may not sublicense the rights granted to it under Section 7.1 to its Related Parties or Third
Parties without the prior written consent of KHK, which consent will not be unreasonably withheld, conditioned or delayed. KHK
may not sublicense the rights granted to it under Section 7.2 to its Related Parties or Third Parties without the prior
written consent of Medgenics, which consent will not be unreasonably withheld, conditioned or delayed. The sublicensing Party will
remain responsible for the performance of its sublicensees under this Agreement, including for all payments due hereunder. The
sublicensing Party will provide the other Party with notice of each sublicense granting rights to Commercialize Licensed Products
promptly after execution of such sublicense. In addition, each Party will provide a copy of any such sublicense to the other Party
after execution of such sublicense. All such notices of sublicenses provided by the sublicensing Party under this Section 7.4.1
will be deemed to be Confidential Information of the sublicensing Party subject to the provisions of Article 10 whether
or not so marked. ***** for nominal consideration to the extent reasonably necessary or useful for the Manufacture of Licensed
Products *****.

 

7.4.2           Terms.
Each sublicense granted by a Party pursuant to Section 7.4.1 will be subject and subordinate to the terms and conditions
of this Agreement and will contain terms and conditions consistent with those in this Agreement. Agreements with any sublicensee
that include the right to Commercialize any Licensed Product(s) will contain the following provisions: (a) the requirement set
forth in Section 8.6.4(c); and (b) a requirement that such sublicensee comply with the confidentiality and non-use provisions
of Article 10 with respect to both Parties’ Confidential Information.

 

7.4.3           Effect
of Termination on Sublicenses. If this Agreement terminates for any reason, each Party agrees to use Commercially Reasonable
Efforts to enter into direct licenses with the other Party’s sublicensees; provided that the sublicensee is not in breach
of its sublicense agreement and such sublicensee agrees to comply with all of the terms of this Agreement to the extent applicable
from the rights originally sublicensed to it by the sublicensing Party.

 

7.4.4           Subcontracting.
The Parties will be entitled to utilize the services of Third Parties, including Third Party contract research organizations and
service providers to perform their respective Development activities; provided that each Party will remain at all times fully liable
for its respective responsibilities under each Development Plan and this Agreement. Any agreement with a Third Party to perform
a Party’s responsibilities under this Agreement will include confidentiality and non-use provisions which are no less stringent
than those set forth in Article 10 and intellectual property provisions that will allow such Party to comply with Article
9. Notwithstanding the foregoing, Medgenics will not have the right to have the Licensed Product Manufactured by any Third
Party without the prior written consent of KHK, which consent will not be unreasonably withheld, conditioned or delayed.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-28	 

     

    

 

7.5           Exclusivity.

 

7.5.1           Exclusivity
Generally. Until expiration of all Data Exclusivity Periods for the Licensed Product in a jurisdiction in the Territory, Medgenics
and its Affiliates will not Commercialize, directly or indirectly, or in-license or otherwise acquire any product that is a Competing
Product in the Field in such jurisdiction, except for a Competing Product acquired pursuant to Section 7.5.2; provided,
however, if Medgenics or its Affiliates obtains such a Competing Product through a Change of Control or other acquisition or merger
with, a Third Party, then Medgenics or its Affiliate *****. Subject to Section 7.5.2, KHK has the right to Develop, Manufacture
or Commercialize, directly or indirectly, or in-license or otherwise acquire any product that is a Competing Product.

 

7.5.2           Medgenics
Rights to KHK Competing Product.

 

(a)          Until
expiration of all Data Exclusivity Periods for the Licensed Product in a jurisdiction in the Territory, if KHK acquires or Develops
a Competing Product in the Field, then KHK will notify Medgenics *****. KHK will include with such notification the terms on which
it is willing to grant to Medgenics the exclusive or semi-exclusive (exercised with Medgenics and KHK jointly, to the exclusion
of any Third Parties) right and license to Develop and Commercialize such Competing Product in the Field in the Territory. If Medgenics
notifies KHK of Medgenics’ interest in obtaining such right and license *****, the Parties will proceed promptly to negotiate
the terms of a definitive agreement, and will use Commercially Reasonable Efforts to do so *****. Such negotiations will be conducted
on an exclusive basis between the Parties, and KHK may not offer to grant any Third Party any rights with respect to the Competing
Product while such negotiations are ongoing or disclose to any Third Party any Confidential Information regarding the Competing
Product, including the existence of such negotiations. If the Parties are unable to execute a mutually agreeable license agreement
*****, then KHK may proceed to Develop and Commercialize such Competing Product by itself or through or with its Affiliates but
not with a Third Party other than after compliance with Section 7.5.2(b).

 

(b)          Until
expiration of all Data Exclusivity Periods for the Licensed Product in a jurisdiction in the Territory, if KHK wishes to enter
into an agreement granting to a Third Party the exclusive or semi-exclusive right and license to Develop or Commercialize a Competing
Product in the Field in such jurisdiction, including without limitation by way of license, partnership, joint venture, collaboration,
distribution or other similar relationship, Medgenics will have a right of first offer to obtain an exclusive or semi-exclusive
right and license to Develop and Commercialize such Competing Product in the Field in such jurisdiction. KHK will present to Medgenics
a complete data package summarizing all available data with respect to such Competing Product program and a good faith proposal
of terms and conditions for Medgenics to obtain an exclusive or semi-exclusive right and license to Develop and Commercialize such
Competing Product in the Field in such jurisdiction, and the Parties will comply with the procedure set forth in this Section
7.5.2(b). The Parties will proceed promptly to negotiate the terms of a definitive agreement, and will use Commercially Reasonable
Efforts to do so *****. Such negotiations will be conducted on an exclusive basis between the Parties, and KHK may not offer to
grant any Third Party any rights with respect to the Competing Product prior to presenting the opportunity to Medgenics and for
so long as such negotiations are ongoing or disclose to any Third Party any Confidential Information regarding the Competing Product,
including the existence of the negotiations. If Medgenics and KHK have not agreed upon the material terms and conditions pursuant
to which Medgenics would receive such a right and license to such Competing Product ***** (the “ROFR Period”),
KHK will be free to discuss terms and conditions for the grant of rights and license with respect to such Competing Product with
any Third Party and, subject to Section 7.5.2(c), enter into an agreement with a Third Party with respect thereto.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-29	 

     

    

 

(c)          KHK
will provide Medgenics notice of the final material terms and conditions of any proposed license, partnership, joint venture, collaboration,
distribution or other similar relationship with a Third Party granting rights relating to the Development and/or Commercialization
of a Competing Product in the Field in the Territory. Upon receipt of such notice, Medgenics will have the right, but not the obligation,
to enter into an agreement with KHK granting rights relating to the Development and/or Commercialization in the Field in the Territory
upon the same terms and conditions as the proposed transaction described in the notice described above in this Section 7.5.2(c)
by notifying KHK *****. KHK may not enter into any agreement granting a Third Party any rights and license with respect to a Competing
Product in the Field in the Territory without providing Medgenics with the notice and opportunity to match the offer described
in this Section 7.5.2(c).

 

7.6           In-Licenses.

 

7.6.1           KHK
In-Licenses. All licenses and other rights granted to Medgenics by KHK under this Article 7 are subject to the rights
and obligations of KHK under the KHK In-Licenses. For the avoidance of doubt, if KHK Controls only a non-exclusive license under
a KHK In-License, KHK’s grant of exclusive license rights pursuant to Section 7.1 means that KHK and its Affiliates
will not exercise and will not sublicense such rights with respect to Licensed Products in the Field in the Territory. Medgenics
and its Related Parties, and the applicable rights and licenses granted to Medgenics hereunder, shall be subject to the rights
retained, and obligations imposed, by the US government pursuant to the Bayh-Dole Act, Chapter 18 of Title 35 of the United Stated
Code, Sections 200-212 with respect to the KHK Patent Rights solely owned by LJI. Medgenics agrees to be bound by the pertinent
sections of Section 1 of, and Sections 2.2, 2.3, 2.4, 2.5, 3.1, 5.3, 7.3, 7.4, 7.6, 7.9, 8.4, 8.5, 8.6, 10.4, 10.5, 10.6, 11.1,
12.6, 12.7 and 12.10 of, the LJI Agreement to the same extent that KHK is bound thereby.

 

7.6.2           Medgenics
In-Licenses. All licenses and other rights granted to KHK by Medgenics under this Article 7 are subject to the rights
and obligations under the Medgenics In-License. KHK and its Related Parties, and the applicable rights and licenses granted to
KHK hereunder, shall be subject to the rights retained, and obligations imposed, by the US government pursuant to the Bayh-Dole
Act, Chapter 18 of Title 35 of the United Stated Code, Sections 200-212 with respect to the Medgenics Patent Rights described in
clause (a) of Section 1.61. KHK agrees to be bound by the pertinent sections of Sections 2, 3.6, 8.1, 9.2 and 12,3 of the
Medgenics In-License to the same extent that Medgenics is bound thereby. In addition, the sublicense to KHK of the Medgenics Technology
licensed to Medgenics under the Medgenics In-License automatically terminates if and to the extent of termination of the Medgenics
In-License, subject to the right of KHK to request a direct license from CHOP.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-30	 

     

    

 

7.7           No
Other Rights. Except as otherwise expressly provided in this Agreement, under no circumstances will a Party, as a result
of this Agreement, obtain any ownership interest or other right in any intellectual property rights of the other Party, including
items Controlled or developed by the other Party, or provided by the other Party to such Party at any time pursuant to this Agreement.
Unless expressly provided otherwise in this Agreement, KHK will retain all rights (including but not limited to Development and
Commercialization rights) to the Licensed Products outside the Territory and outside the Field in the Territory.

 

Article
8.

FINANCIAL PROVISIONS

 

8.1           Initial
License Fee. Within ***** after the Effective Date, Medgenics will pay to KHK an initial license fee of *****.

 

8.2           Development
Costs.

 

(a)          The
responsibility for payment of the Development Costs incurred during the Term will be borne solely by Medgenics, and, for clarity,
none of such costs will be included in Allowable Expenses.

 

(b)          Development
Costs will not include any Manufacturing-related development costs, including but not limited to the process and analytical method
developments, the comparability studies, stability program, process characterization and validation, method qualifications and
validations, or the cost incurred in connection with the Manufacture of clinical supplies of Licensed Product for Development in
the Territory, which costs will be borne solely by Medgenics pursuant to Section 4.3.3, and, for clarity, none of such costs
will be included in Allowable Expenses. All payments made by a Party to a Third Party in connection with the performance of its
activities under the applicable Development Plan will be charged as Development Costs at such Party’s actual Out-of-Pocket
Costs.

 

8.3           Milestones.

 

8.3.1           Milestone
Payments. Medgenics will pay to KHK the amounts set forth below no later than ***** after the earliest date on which Medgenics
or any of its Related Parties receives written notification that the corresponding milestone event has first been achieved with
respect to a Licensed Product:

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-31	 

     

    

 

	Milestone Event	 	Payment
	*****for a Licensed Product by Medgenics or its Related Party 	 	*****
	*****for a Licensed Product by Medgenics or its Related Party 	 	*****
	*****for a Licensed Product filed with FDA by Medgenics or its Related Party	 	*****
	*****for a Licensed Product filed with EMA by Medgenics or its Related Party	 	*****

 

8.3.2           One
Time Milestone Payments. Once Medgenics has made any particular milestone payment under Section 8.3.1, Medgenics will
not be obligated to make any payment under Section 8.3.1 with respect to the re-occurrence of the same milestone, whether
or not such re-occurrence is with respect to a different or the same Licensed Product.

 

8.4           Sharing
of Profit.

 

8.4.1           Allocation.
Profit will be allocated ***** to Medgenics and ***** to KHK.

 

8.4.2           Reconciliation.
From and after the First Commercial Sale of a Licensed Product in the Field in the Territory, the Parties will conduct a quarterly
reconciliation of Profit as follows:

 

(a)          Within
***** after the end of each Contract Quarter, Medgenics will submit to KHK a preliminary written report setting forth the following
information, estimated where necessary, revenues and expenses included in Profit for Profit-Share Products for the first two (2)
months of such Contract Quarter, including, as applicable:

 

(i)          all
sales in units and in Net Sales value of such Profit-Share Products in the Territory made by Medgenics and its Related Parties
during such two (2) month period, together with an accounting of the itemized deductions from gross invoice price to Net Sales;

 

(ii)         all
Profit-Share Product Proceeds for Profit-Share Products received from Third Parties in the Territory during such two (2) month
period;

 

(iii)        the
relevant Allowable Expenses incurred by Medgenics or its Affiliates with respect to such Profit-Share Products during such two
(2) month period; and

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-32	 

     

    

 

(iv)        good
faith estimate of revenues and expenses included in Profit for Profit-Share Products for the last month of such Contract Quarter,
for financial reporting purposes.

 

(b)          Within
***** after the end of each Contract Quarter, Medgenics will submit to KHK a final written report setting forth, as applicable:

 

(i)          all
sales in units and in Net Sales value of Profit-Share Products in the Territory made by Medgenics and its Related Parties during
such Contract Quarter, together with an accounting of the itemized deductions from gross invoice price to Net Sales;

 

(ii)         all
Profit-Share Product Proceeds for Profit-Share Products received from Third Parties in the Territory during such Contract Quarter;
and

 

(iii)        the
relevant Allowable Expenses incurred by Medgenics or its Affiliates with respect to Profit-Share Products during such Contract
Quarter.

 

8.4.3           Tax
Reporting. Together with the report submitted by Medgenics pursuant to Section 8.4.2(b), Medgenics will submit to KHK
the calculation of Profit, the amount of any taxes required to be withheld and the calculation of the net amount owed by Medgenics
to KHK in order to ensure the sharing of Profit set forth in Section 8.4.1 and the proper allocation of withholding taxes
pursuant to Section 8.6.1. The net amount payable with respect to Profit, after appropriate adjustment for any withholding
taxes, will be paid by Medgenics within ***** following receipt of invoice for such amount.

 

8.4.4           Supporting
Documents. In addition to providing the information set forth in Section 8.4.2, Medgenics will provide reasonable supporting
documentation of Allowable Expenses included in the calculation of Profit.

 

8.5           KHK
Royalties.

 

8.5.1           Royalty
Percentages. During the Term, but subject to any applicable offsets contained herein, KHK will pay to Medgenics royalties on
Royalty-Bearing Sales or Sublicensing Royalties, as applicable, on a country-by-country basis, subject to any applicable offsets
or reductions pursuant to Section 8.5.2, 8.5.3, and/or 8.5.4, at the rate of: (a) ***** (the “KHK
Territory Royalty Rate”) of (i) Royalty-Bearing Sales by KHK and its Affiliates in the Field outside of the
Territory and (ii) Sublicensing Royalties resulting from sales in the Field outside of the Territory; (b) ***** (the “Other
Royalty Rate”) of Royalty-Bearing Sales by KHK and/or its Affiliates outside of the Field outside of the Territory
and Sublicensing Royalties resulting from sales outside of the Field outside of the Territory; and (c) ***** (as adjusted, if applicable,
pursuant to the following sentence, the “Territory Royalty Rate”) of Royalty-Bearing Sales by KHK and
its Affiliates in the Territory and Sublicensing Royalties resulting from sales in the Territory. In the event that Medgenics’
Net Sales of Licensed Products in a country in the Territory experience a Significant Impact as a result of KHK or any of its Related
Parties commercializing Licensed Product in the Territory, the Parties will negotiate in good faith to increase the Territory Royalty
Rate for such country to offset the Significant Impact, which Territory Royalty Rate will not exceed ***** in any country.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-33	 

     

    

 

8.5.2           Third
Party License Offsets. If KHK enters into an agreement with a Third Party (other than a KHK Licensor) to obtain a license under
Third Party Technology (including without limitation under Section 9.5) that KHK reasonably believes or expects to be necessary
to Commercialize one or more Licensed Products outside the Territory or outside of the Field, then KHK may offset ***** of the
amount of commercially reasonable royalties or other payments payable by KHK to such Third Party with respect to a particular Licensed
Product against amounts KHK is obligated to pay Medgenics under Section 8.5.1 for Royalty-Bearing Sales by KHK and/or its
Affiliates and Sublicensing Royalties, provided that in no event will any such offset (a) with respect to sales in the Field
outside of the Territory, reduce the payments otherwise due to Medgenics pursuant to Section 8.5.1(a) in particular Contract
Years below ***** of Royalty-Bearing Sales and Sublicensing Royalties in the Field outside of the Territory, (b) with respect
to sales outside the Field outside of the Territory, reduce the payments otherwise due to Medgenics pursuant to Section 8.5.1(b)
in particular Contract Years below ***** of Royalty-Bearing Sales and Sublicensing Royalties outside the Field outside of the Territory,
or (c) with respect to sales in the Territory, reduce the payments otherwise due to Medgenics pursuant to Section 8.5.1(c)
in particular Contract Years below ***** of Royalty-Bearing Sales and Sublicensing Royalties in the Territory; provided further
that, if such ***** offset of such Third Party royalties or other payments exceeds the amount of payments withheld by KHK under
this Section 8.5.2 in any Contract Quarter, the excess may be carried over as a credit on the same basis into succeeding
Contract Quarters.

 

8.5.3           Claimed
Infringement of Third Party Rights Offsets. If costs and expenses and damages are incurred by the Parties in connection with
the defense of an Infringement Claim outside the Field or outside the Territory pursuant to Section 9.4, then KHK may offset
***** of such costs and expenses and damages with respect to a particular Licensed Product against amounts KHK is obligated to
pay Medgenics under Sections 8.5.1 and 8.5.2 on sales of such Licensed Product, provided that in no event will any
such offset (a) with respect to sales in the Field outside of the Territory, reduce the payments otherwise due to Medgenics
pursuant to Section 8.5.1(a) in particular Contract Years below *****of Royalty-Bearing Sales and Sublicensing Royalties
in the Field outside of the Territory, (b) with respect to sales outside the Field outside of the Territory, reduce the payments
otherwise due to Medgenics pursuant to Section 8.5.1(b) in particular Contract Years below ***** of Royalty-Bearing Sales
and Sublicensing Royalties outside the Field outside of the Territory, or (c) with respect to sales in the Territory, reduce the
payments otherwise due to Medgenics pursuant to Section 8.5.1(c) in particular Contract Years below *****of Royalty-Bearing
Sales and Sublicensing Royalties in the Territory; provided further that, if such *****offset of such costs and expenses and damages
incurred by the Parties exceeds the amount of payments withheld by KHK under this Section 8.5.3 in any Contract Quarter,
the excess may be carried over as a credit on the same basis into succeeding Contract Quarters.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-34	 

     

    

 

8.5.4           Royalty
Reduction for Biosimilars.

 

(a)          If
a Biosimilar version(s) of any Licensed Product is commercialized in any country in which there are Royalty-Bearing Sales, then
the royalty rate payable to Medgenics pursuant to Sections 8.5.1, 8.5.2 and 8.5.3 applicable for the sale
of Licensed Products in such country will be reduced by (i) *****applicable for the first Contract Quarter during which the market
share of such Biosimilars is ***** in such country, (ii) ***** applicable for the first Contract Quarter during which the market
share of such Biosimilars is ***** in such country, (iii) ***** applicable for the first Contract Quarter during which the market
share of such Biosimilars is ***** in such country, (iv) ***** applicable for the first Contract Quarter during which the market
share of such Biosimilars is ***** in such country; and (v) ***** applicable for the first Contract Quarter during which the market
share of such Biosimilars is ***** in such country. For clarity, the reduction in royalty rates permitted pursuant to this Section
8.5.4 will be taken after any reduction taken pursuant to Section 8.5.2 and Section 8.5.3. For the avoidance
of doubt, each of the minimum KHK Territory Royalty Rate and the minimum Other Royalty Rate will be ***** and the minimum Territory
Royalty Rate (on a country-by-country basis) will be no less than ***** of the Territory Royalty Rate (on a country-by-country
basis) then in-effect prior to the adjustments permitted by this Section 8.5.4; provided that, if such reduction permitted
under this Section 8.5.4 exceeds the amount of payments withheld by KHK under this Section 8.5.4 in any Contract
Quarter, the excess may be carried over as a credit on the same basis into succeeding Contract Quarters.

 

(b)          The
Parties will utilize a mutually-agreed (such agreement not to be unreasonably withheld, delayed, or conditioned) measure of the
market share of any relevant Biosimilars in each country where a Biosimilar version(s) of a Licensed Product is being commercialized
and will adjust the royalty rate payable to Medgenics for the sale of Licensed Products in such country every six (6) months, to
the extent permitted pursuant to Section 8.5.4(a). If the royalty rate payable to Medgenics for the sale of Licensed Products
has been adjusted pursuant to Section 8.5.4(a), then such royalty rates in such country may not thereafter be adjusted upwards.

 

8.5.5           Reports
and Royalty Payments. Within ***** after the end of each Contract Quarter during the Term, KHK will deliver to Medgenics
a report setting forth for the previous Contract Quarter the following information on a Licensed Product-by-Licensed Product and
country-by-country basis: (a) the gross sales and Royalty-Bearing Sales of each Licensed Product, (b) the number of units sold
by KHK or its Affiliate, (c) the Sublicensing Royalty received by KHK, (d) the basis for any adjustments to the royalty payable
for the sale of each Licensed Product, (e) the royalty due hereunder for the sales of each Licensed Product, and (f) the applicable
exchange rate as determined pursuant to Section 8.6.2. The total royalty due for the sale of Licensed Products during such
Contract Quarter will be remitted at the time such report is made but no later than ***** after the end of each Contract Quarter
during the Term. Along with such reports, KHK will also provide the Sales Tracking Methodologies used to determine Royalty-Bearing
Sales outside the Field in the Territory.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-35	 

     

    

 

8.6           Payment
Provisions Generally.

 

8.6.1           Taxes
and Withholding. If Applicable Laws require withholding of income taxes or other taxes imposed upon payments set forth in Article
8, the paying Party will make such withholding payments as required and subtract such withholding payments from the payments
set forth in Article 8. The paying Party will submit appropriate proof of payment of the withholding taxes to the payee
Party within a reasonable period of time. At the request of the payee Party, the paying Party will, at the payee Party’s
cost, give the payee Party such reasonable assistance, which will include the provision of appropriate certificates of such deductions
made together with other supporting documentation as may be required by the relevant tax authority, to enable the payee Party to
claim exemption from such withholding or other tax imposed or obtain a repayment thereof or reduction thereof and will upon request
provide such additional documentation from time to time as is reasonably required to confirm the payment of tax.

 

8.6.2           Payment
and Currency Exchange. All amounts payable and calculations hereunder will be in United States dollars and will be paid by
bank wire transfer in immediately available funds to such bank account as may be designated in writing by the payee Party from
time to time. Whenever for the purposes of calculating the Profit or royalties payable under Section 8.4 or 8.5,
conversion from any foreign currency will be required, all amounts will first be calculated in the currency in which the activity
was paid or sale was recorded and then converted into United States dollars by applying the rate of exchange quoted in the New
York edition of The Wall Street Journal on the last Business Day of the paying Party of the applicable Contract Quarter.

 

8.6.3           Overdue
Payments. If any payment due under this Agreement (other than payments that are the subject of a good faith dispute between
the Parties) is overdue by more than thirty (30) days, the paying Party will pay interest to the payee Party at a rate per annum
equal to the lesser of the prime rate of interest, as reported by New York edition of The Wall Street Journal on
the last Business Day of the paying Party of the applicable Contract Quarter, or the highest rate permitted by applicable law,
calculated on the number of days such payments are paid after the date such payments are due.

 

8.6.4           Financial
Matters Relating to Existing In-Licenses.

 

(a)          All
amounts payable in respect of Profit-Share Products under the KHK In-Licenses will be paid directly by KHK or its Related Parties
to the KHK Licensor, Medgenics will reimburse KHK such amounts as defined in Section 1.87(a), and any such amounts reimbursed
by Medgenics will be treated as Allowable Expenses.

 

(b)          All
amounts payable in respect of Profit-Share Products under Medgenics In-Licenses will be paid directly by Medgenics or its Related
Parties to the applicable Medgenics Licensor and such amounts as defined in Section 1.87(b) will be treated as Allowable
Expenses to the extent paid by Medgenics or any of its Related Parties. All amounts required to be paid pursuant to Section 6.4.1
of the Medgenics In-License as a direct result of sales of any Licensed Product sold by KHK or its Related Parties will be paid
and borne solely by KHK and its Related Parties. In addition, all amounts required to be paid pursuant to Section 6.4.2 of the
Medgenics In-License as a direct result of sales of any diagnostic sold by KHK or its Related Parties will be paid and borne solely
by KHK and its Related Parties and will not be a part of Third Party Technology Costs described in Section 1.87(b).
 For avoidance of doubt, all amounts required to be paid pursuant to Section 6.4.2 of the Medgenics In-License as a direct
result of sales of any diagnostic sold by Medgenics or its Related Parties will be paid and borne solely by Medgenics and its Related
Parties and will not be a part of Third Party Technology Costs described in Section 1.87(b).

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-36	 

     

    

 

(c)          *****,
for the supply of the Licensed Product, and the entry into such contract triggers any payment obligation by KHK to Lonza, then
Medgenics will reimburse KHK *****, provided that any such reimbursement obligations of Medgenics will not exceed *****. Such payment
to Lonza will be first payable within ***** of signature of a manufacturing agreement with such Third Party or grant of sublicense
to such contract manufacturer and will continue for the duration of such manufacture by such Third Party or sublicense. No payment
made by Medgenics under this Section 8.6.4(c) will be included in Allowable Expenses.

 

(d)          Notwithstanding
anything to the contrary in Section 8.6.4(c), if Medgenics has entered into the Medgenics Lonza License Agreement prior
to the Effective Date, Medgenics may deduct ***** from the initial license fee and milestone payments payable to KHK by Medgenics
under Sections 8.1 and 8.3, *****.

 

(e)          If
Medgenics has entered into the Medgenics Lonza License Agreement prior to the Effective Date and Medgenics has an obligation to
pay an annual fee to Lonza pursuant to such agreement for conducting the process development or Manufacture of the Licensed Product
using a contract manufacturer that is not Lonza, as between the Parties, Medgenics will *****. For clarity, no portion of *****
will be subject to the deduction set forth in Section 8.6.4(d) or will be included in Allowable Expenses.

 

8.6.5           Record-Keeping.
Each Party will keep, and will cause their respective Related Parties to keep, books and accounts of record in connection this
Agreement in sufficient detail to permit accurate determination of all figures necessary for any and all financial calculations
required by this Agreement, including without limitation all elements of Allowable Expense, Developments Costs, Net Sales, Royalty-Bearing
Sales, and Profit. Each Party will maintain, and will cause their respective Related Parties to maintain, such records for a period
of at least five (5) years after the end of the Contract Year in which they were generated.

 

8.6.6           Audits.
Upon thirty (30) days’ prior written notice from a Party (the “Requesting Party”), the Party receiving
the written notice (the “Audited Party”) will permit an independent certified public accounting firm
of nationally recognized standing selected by the Requesting Party and reasonably acceptable to the Audited Party, to examine,
at the Requesting Party’s sole expense, the relevant books and records of the Audited Party and its Affiliates as may be
reasonably necessary to verify the amounts reporting or payable by the Audited Party to the Requesting Party. An examination by
a Requesting Party under this Section 8.6.6 will occur not more than once in any Contract Year and will be limited to the
pertinent books and records for any Contract Year ended not more than five (5) years before the date of the request. The accounting
firm will be provided access to such books and records at the Audited Party’s facility(ies) where such books and records
are normally kept and such examination will be conducted during the Audited Party’s normal business hours. The Audited Party
may require the accounting firm to sign a standard non-disclosure agreement before providing the accounting firm access to the
Audited Party’s facilities or records. Upon completion of the audit, the accounting firm will provide both the Audited Party
and the Requesting Party a written report disclosing any discrepancies in the reports submitted by the Audited Party or, as applicable,
the amounts payable under this Agreement, and in each case, the specific details concerning any discrepancies. No other information
will be provided to the Requesting Party.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-37	 

     

    

 

8.6.7           Underpayments/Overpayments.
If such accounting firm concludes that additional amounts were due to the Requesting Party, the Audited Party will make such payments
as is necessary for the Requesting Party to have been paid the correct amount due under this Agreement for the audited periods.
If such underpayment exceeds five percent (5%) of the amounts that were to be paid, the Audited Party also will reimburse the Requesting
Party for all Out-of-Pocket Costs incurred in conducting the audit. If such accounting firm correctly concludes that the Audited
Party overpaid amounts due to the Requesting Party, the Requesting Party will refund such overpayments to the Audited Party within
sixty (60) days of the date the Requesting Party receives such accountant’s report so correctly concluding.

 

8.6.8           Confidentiality.
All financial information of a Party that is subject to review under this Section 8.6 will be deemed to be Confidential
Information of such Audited Party subject to the provisions of Article 10, and the Requesting Party will not disclose such
Confidential Information to any Third Party or use such Confidential Information for any purpose other than verifying payments
to be made by the Audited Party to the Requesting Party hereunder.

 

8.7           Adjustment
of FTE Rates. Effective upon each anniversary of the Effective Date, the FTE Rates will increase by the percentage increase,
if any, in the Consumer Price Index published by the United States Bureau of Labor Statistics during the most recent preceding
one (1) year period for which final data is available, and such increase will be effective for the then-current and all subsequent
FTE Costs hereunder unless and until further modified under this Section 8.7. In addition, within sixty (60) days after
the third anniversary of the Effective Date and every three (3) years thereafter, each Party will have the right to require the
other Party to conduct a salary survey in respect of FTEs and provide the result of such survey. In addition, a Party may conduct
a salary survey at its own discretion in respect of FTEs and provide such survey to the other Party. Following receipt of such
survey from each Party, the Parties may agree in writing to adjust one or more of the FTE Rates.

 

Article
9.

INTELLECTUAL PROPERTY 

 

9.1           Ownership
of and Rights to Intellectual Property.

 

9.1.1           Medgenics
Technology. As between the Parties, Medgenics is and will remain the sole owner of the Medgenics Technology. KHK acknowledges
that certain of the Medgenics Patent Rights have been licensed to Medgenics from the Medgenics Licensor pursuant to the Medgenics
In-License.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-38	 

     

    

 

9.1.2           KHK
Technology. As between the Parties, KHK is and will remain the sole owner of the KHK Technology. Medgenics acknowledges that
certain of the KHK Patent Rights have been licensed to KHK from the KHK Licensors pursuant to the KHK In-Licenses.

 

9.1.3           Joint
Inventions. The Parties will jointly own all Joint Inventions, and each will have an undivided interest in the Joint Inventions
subject to the licenses granted under this Agreement.

 

9.1.4           Inventorship.
For purposes of determining whether an invention is solely invented by Medgenics or solely invented by KHK, or a Joint Invention,
questions of inventorship will be resolved in accordance with United States patent laws.

 

9.2           Filing,
Prosecution and Maintenance of Patent Rights.

 

9.2.1           KHK
Patent Rights. This Section 9.2 will not apply to the KHK Patent Rights over which KHK has no right to control the filing,
prosecution or maintenance thereof, and, for purposes of this Section 9.2, the KHK Patent Rights over which KHK has the
right to control the filing, prosecution and maintenance thereof, including those described in clauses (a) and (c) of Section
1.46, but excluding those described in clause (b) of Section 1.46, are referred to as the “KHK Managed Patent
Rights.”

 

(a)          As
between KHK and Medgenics, KHK, through counsel of its choosing, will control (but not be obligated to control) the prosecution
(including any interferences, reissue proceedings and re-examinations) and maintenance of the KHK Patent Rights in the Territory.
Medgenics will provide all reasonable assistance required to prosecute the KHK Patent Rights in the Territory. Medgenics will have
the right to review and comment upon any substantive communications received from the applicable patent offices with respect to
the KHK Managed Patent Rights, including, but not limited to, official actions, examination reports, documents relating to patentability
and/or amendment or cancellation of the claims, and documents related to patent term adjustment and patent term extension. KHK
will consider all comments received from Medgenics with respect to the KHK Managed Patent Rights and will comply with all reasonable
requests. In addition, Medgenics will have the right to review and comment upon any substantive communications that KHK plans to
make to an applicable patent office in the Territory with respect to the KHK Managed Patent Rights, including, but not limited
to, draft responses to official actions, draft responses to examination reports, drafts relating to amendment or cancellation of
the claims, and drafts relating to patent term adjustment and/or extension. KHK will provide Medgenics with a copy of each such
communication or filing reasonably in advance of submitting such communication or filing to the relevant patent authority. KHK
will consider all comments received from Medgenics and will comply with all reasonable requests. In addition to the above, KHK
will keep Medgenics reasonably informed with respect to all such prosecution and maintenance activities to which KHK has access,
including written communications with patent office officials, and consult with Medgenics regarding such matters, including the
planned abandonment of claims thereof.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-39	 

     

    

 

(b)          At
Medgenics’ sole cost and expense, KHK will keep Medgenics reasonably informed with respect to all prosecution and maintenance
activities concerning Patent Rights outside the Territory that correspond to the KHK Patent Rights. Medgenics will have the right
to review any substantive communications received from the applicable patent offices with respect to the KHK Managed Patent Rights,
including, but not limited to, official actions, examination reports, documents relating to patentability and/or amendment or cancellation
of the claims, and documents related to patent term adjustment and patent term extension. In addition, Medgenics will have the
right to review any substantive communications that KHK plans to make to an applicable patent office outside of the Territory with
respect to the KHK Managed Patent Rights, including, but not limited to, draft responses to official actions, draft responses to
examination reports, drafts relating to amendment or cancellation of the claims, and drafts relating to patent term adjustment
and/or extension.

 

(c)          If
KHK determines in its sole discretion to abandon or not maintain any KHK Managed Patent Rights, in one or more country(ies) or
in the entire Territory, then KHK will provide Medgenics with at least sixty (60) days prior written notice of such determination
to abandon or cease maintenance (or such other longer period of time reasonably necessary to allow Medgenics to assume such responsibilities).
If KHK provides such a notification, then Medgenics will have the right (but not the obligation), to control the prosecution and
maintenance of any such KHK Managed Patent Rights in its sole discretion and at Medgenics’ sole cost and expense by providing
KHK with notice thereof within such sixty (60) day period. In the event that Medgenics so elects to control the prosecution and
maintenance of any KHK Managed Patent Rights, then in the concerned country(ies) or in the entire Territory, as applicable, KHK
will provide all reasonable assistance required to prosecute such KHK Managed Patent Rights in the concerned country(ies) or in
the entire Territory, at Medgenics’ sole cost and expense, including allowing Medgenics to exercise all rights of KHK under
the KHK In-License with LJI relevant to prosecution and maintenance of the KHK Managed Patent Rights. KHK will have the right to
review and comment upon any substantive communications and filings made by Medgenics with respect to the prosecution of such KHK
Managed Patent Rights before they are sent to any patent offices in the entire Territory. Medgenics will provide KHK with a copy
of each such communication or filing reasonably in advance of submitting such communication or filing to the relevant patent authority.
With respect to all such prosecution and maintenance Medgenics will keep KHK reasonably informed with respect to such activities
(including by providing KHK with access to all filings and correspondence with and from any patent offices or officials upon request
by KHK), and consult with KHK regarding such matters, including the abandonment of claims thereof

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-40	 

     

    

 

(d)          Notwithstanding
anything to the contrary in this Agreement (including Section 9.3.1(a)), the following terms and conditions will apply with
respect to the KHK Patent Rights: (i) with respect to those KHK Patent Rights solely owned by LJI, LJI and KHK will have the
joint right to control the filing, prosecution and maintenance of such KHK Patent Rights, including the extension of the patent
term(s) of such KHK Patent Rights, and if both LJI and KHK determine in their sole discretion to abandon or not maintain such KHK
Patent Rights, then Medgenics will have the right, subject to Section 9.3.1(a) and the other applicable terms and conditions
of this Agreement, to control the prosecution and maintenance of any such KHK Patent(s) and KHK will request LJI to provide all
reasonable assistance required to prosecute and maintain such KHK Patent Rights; and (ii) with respect to those KHK Patent
Rights jointly owned by LJI, on the one hand, and KHK and/or its Affiliates, on the other hand, in the event that both KHK and
Medgenics determine in their sole discretion to abandon or not maintain any such KHK Patent(s), then (A) LJI will have the right
to control the filing, prosecution and maintenance (including, without limitation, the extension of the patent term(s)) of such
KHK Patents, and (B) all rights and licenses granted to KHK under the LJI Agreement (and therefore the sublicense to Medgenics
under this Agreement) in and to such KHK Patent(s) will immediately terminate.

 

(e)          Notwithstanding
anything to the contrary in this Agreement, to the extent that KHK does not have the right to control or participate in the prosecution
or maintenance of Patent Rights under a KHK In-License, no right to prosecute or maintain such Patent Rights are granted to Medgenics
by this Agreement.

 

(f)          All
information, if any, exchanged between the Parties or between KHK’s outside patent counsel and Medgenics regarding preparation,
filing, prosecution or maintenance of the KHK Patent Rights will be deemed Confidential Information of KHK. In addition, the Parties
acknowledge and agree that, with regard to such preparation, filing, prosecution and maintenance of the KHK Patent Rights, the
interests of the Parties as licensor and licensee are to obtain the strongest patent protection possible, and as such, are aligned
and are legal in nature. The Parties agree and acknowledge that they have not waived, and nothing in this Agreement constitutes
a waiver of, any legal privilege concerning the KHK Patent Rights including without limitation, privilege under the common interest
doctrine and similar or related doctrines.

 

9.2.2           Joint
Inventions. With respect to any potentially patentable Joint Invention, the Parties will meet and agree upon which Party will
lead (in a joint effort with the other Party) the preparation, filing, prosecution (including any interferences, reissue proceedings
and reexaminations) and maintenance of patent applications covering such Joint Invention (any such patent application and any patents
issuing therefrom a “Joint Patent”) in any jurisdiction. Joint Patents are included within both the KHK
Technology and Medgenics Technology and within the licenses granted to each Party hereunder. The Party that leads prosecution of
a patent application in the Joint Patents (the “Prosecuting Party”) will provide the other Party reasonable
opportunity to review and comment on such prosecution efforts regarding the applicable Joint Patents in the particular jurisdictions,
and such other Party will provide the Prosecuting Party reasonable assistance in such efforts, including providing any necessary
powers of attorney and executing any other required documents or instruments for such prosecution. The Prosecuting Party will provide
the other Party with a copy of all material communications from any patent authority in the applicable jurisdictions regarding
the Joint Patent being prosecuted by such Party, and will provide drafts of any material filings or responses to be made to such
patent authorities a reasonable amount of time in advance of submitting such filings or responses. In particular, each Party agrees
to provide the other Party with all information necessary or desirable to enable the other Party to comply with the duty of candor/duty
of disclosure requirements of any patent authority. Either Party may determine that it is no longer interested in supporting the
continued prosecution or maintenance of a particular Joint Patent in a country or jurisdiction, in which case: (i) the disclaiming
Party will no longer be obligated to pay any costs for filing, prosecution or maintenance thereof; (ii) the disclaiming Party
will, if requested in writing by the other Party, assign its ownership interest in such Joint Patent in such country or jurisdiction
to the other Party for no additional consideration and (iii) if such assignment is effected, any such Joint Patent would thereafter
be deemed a patent of Medgenics in the case of assignment to Medgenics, or a patent of KHK in the case of assignment to KHK.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-41	 

     

    

 

9.2.3           New
Inventions. Medgenics will retain ownership of, and be entitled to file patents (in its sole discretion) in its name, on all
Medgenics Inventions, and KHK will retain ownership of, and be entitled to file patents (in its sole discretion) in its name, on
all KHK Inventions. All the foregoing will be included in the license granted by each Party to the other Party in Article 7.
Each Party will disclose any such inventions or improvements to the other Party within ***** of filing a patent application claiming
the Invention.

 

9.2.4           Cooperation.
Each Party hereby agrees: (a) to make its employees, agents and consultants reasonably available to the other Party (or to the
other Party’s authorized attorneys, agents or representatives), to the extent reasonably necessary to enable such Party to
undertake patent prosecution as contemplated by this Agreement; (b) to cooperate, if necessary and appropriate, with the other
Party in gaining patent term extensions wherever applicable to Patent Rights that are subject to this Agreement; and (c) to endeavor
in good faith to coordinate its efforts with the other Party to minimize or avoid interference with the prosecution and maintenance
of the other Party’s patent applications that are subject to this Agreement.

 

9.2.5           Patent
Costs. KHK will bear all of the costs and expenses of filing, prosecuting and maintaining the KHK Patent Rights, and Medgenics
will bear all of the costs and expenses of filing, prosecuting and maintaining the Medgenics Patent Rights described in clause
(a) of Section 1.61. The costs and expenses of filing, prosecuting and maintaining the Joint Patents shall be borne solely
by Medgenics for costs and expenses incurred inside the Territory, and shall be borne solely by KHK for costs and expenses incurred
outside the Territory. For clarity, costs and expenses outside of the Territory will be borne solely by KHK for the KHK Patent
Rights and solely by Medgenics for the Medgenics Patent Rights.

 

9.3           Enforcement
of Patent Rights.

 

9.3.1           Notification.
Each Party will promptly report in writing to the other Party during the Term any (a) known or suspected infringement by a Third
Party of any KHK Patent Rights, Medgenics Patent Rights or Patent Rights covering Joint Inventions or (b) unauthorized use or misappropriation
by a Third Party of any Confidential Information, including KHK Know-How or Medgenics Know-How, of which it becomes aware, and
will provide the other Party with all available evidence supporting such infringement or unauthorized use or misappropriation.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-42	 

     

    

 

9.3.2           Rights
to Enforce. KHK will have the right, but not the obligation, to take any reasonable measures it deems appropriate to: (a) stop
infringing activities described in Section 9.3.1 in respect of the KHK Technology in the Territory including initiating
or prosecuting an infringement or other appropriate suit or action against the alleged infringer, but not granting adequate rights
and licenses necessary for continuing such activities by the alleged infringer or (b) defend the KHK Technology in the Territory
against any declaratory judgment, opposition, patentability or invalidity actions (“Defensive Actions”).
KHK may request that Medgenics grant such adequate rights and licenses; provided that Medgenics will have no obligation to grant
any such rights or licenses; and provided further that upon making such request, Medgenics will have the right to participate in
all negotiations with the alleged infringer concerning such adequate rights and licenses. Before KHK takes any action to stop the
infringing activity against an alleged infringer of the KHK Technology in the Territory, KHK will consult in good faith with Medgenics
concerning the alleged infringement, including selection of counsel, litigation strategy, litigation risks, the damage being caused
to KHK and/or Medgenics and any other matter relevant to enforcement of the KHK Technology against the alleged infringer in the
Territory. In particular, KHK will consider in good faith a request from Medgenics to not take any actions to enforce the KHK Technology
against the alleged infringer in the Territory and only take such actions, in light of such request from Medgenics, if KHK is suffering
material harm from the infringement in the Territory. Subject to the provisions of the LJI Agreement, in the event that KHK elects
to not take action or cease action with respect to the KHK Managed Patent Rights pursuant to this Section 9.3.2 with respect
to the Territory, including declining or ceasing to defend Defensive Actions, KHK will so notify Medgenics in writing of its intention
***** prior to any deadlines by which an action must be taken to establish, preserve or maintain any enforcement rights or defend
or continue to defend the Defensive Action, and, subject to Section 9.3.4, Medgenics will have the right, but not the obligation,
to take any such reasonable measures to stop such infringing activities by such alleged infringer or defend the Defensive Action,
in which event, upon Medgenics’ request, KHK will exercise its rights under the LJI Agreement to the extent necessary for
the enforcement or defense of KHK Managed Patent Rights that are subject to the LJI Agreement.

 

9.3.3           Procedures;
Expenses and Recoveries. The Party having the right to initiate any infringement suit or defend a Defensive Action under Section
9.3.2 (the “Controlling Party”) will have the sole and exclusive right to select counsel for and
control any such suit or Defensive Action. The expenses of the suit or the Defensive Action, including attorneys’ fees and
court costs and the reasonable Out-of-Pocket Costs the other Party (the “Cooperating Party”) in rendering
assistance requested by the Controlling Party (“Enforcement Expense”), will be borne *****. If required
under Applicable Law in order for the Controlling Party to initiate and/or maintain such suit or to defend the Defensive Action,
or if either Party is unable to initiate or prosecute such suit or defend the Defensive Action solely in its own name or it is
otherwise advisable to obtain an effective legal remedy, in each case, the other Party will join as a party to the suit or Defensive
Action and will execute and cause its Affiliates to execute all documents necessary for the Controlling Party to initiate litigation
to prosecute and maintain such action or defend the Defensive Action. In addition, at the Controlling Party’s request, the
Cooperating Party will provide reasonable assistance to the Controlling Party in connection with an infringement suit *****. The
Cooperating Party will have the right to participate and be represented in any such suit by its own counsel at its own expense.
If the Parties obtain from a Third Party, in connection with such suit, any damages, license fees, royalties or other compensation
(including any amount received in settlement of such litigation) (“Recoveries”) in the Territory, such
amounts will be allocated as follows:

 

*****.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-43	 

     

    

 

KHK will have the sole right to take action
and earn all Recoveries outside of the Territory.

 

9.3.4           LJI
Enforcement Rights. The Parties acknowledge and agree that in the event that *****, LJI will have the right but not the obligation
under the LJI Agreement to bring, defend, or maintain any appropriate suit or action involving such infringement or Defensive Action
at its own cost and expense against alleged infringers and to defend such KHK Patent Rights from Defensive Actions. Subject to
the foregoing, if LJI finds it necessary or reasonably desirable to join Medgenics and/or KHK into such suit or action, Medgenics
and/or KHK will execute all papers and perform such other acts as may be reasonably required, and Medgenics and/or KHK, at their
respective options, may be represented by respective counsel(s) of their own choice, provided that (a) *****, and (b) if
any amount is recovered on any such action or suit, whether by judgment or settlement (any such settlement requiring the consent
of KHK), the balance of any such recovery will be paid to or retained ***** (including, for clarity, the LJI ***** set forth on
Schedule 1.42) in respect of the applicable KHK Patent Right(s) and Licensed Product(s), after reimbursement for the reasonable
attorneys’ fees incurred with respect to such suit or action by LJI, KHK and Medgenics.

 

9.4           Claimed
Infringement of Third Party Rights.

 

9.4.1           Notice.
In the event that a Third Party at any time provides written notice of a claim to, or brings an action, suit or proceeding against,
any Party, or any of such Party’s respective Related Parties, claiming infringement of such Third Party’s Patent Rights
or unauthorized use or misappropriation of such Third Party’s Know-How, based upon an assertion or claim arising out of the
Development, Manufacture or Commercialization of a Licensed Product (each, an “Infringement Claim”),
such Party will promptly notify the other Party of the Infringement Claim or the commencement of such action, suit or proceeding,
enclosing a copy of the Infringement Claim and all papers served. Each Party agrees to make available to the other Party its advice
and counsel regarding the technical merits of any such claim at no cost to the other Party and to offer reasonable assistance to
the other Party at no cost to the other Party.

 

9.4.2           Right
to Defend. Medgenics will have the right, but not the obligation, to defend any Infringement Claim brought against either Party
or any of its Related Parties arising out of the Development, Manufacture or Commercialization of a Licensed Product in the Field
in the Territory. KHK will have the right, but not the obligation, to defend any Infringement Claim brought against either Party
or any of its Related Parties arising out of the Development, Manufacture or Commercialization of a Licensed Product outside the
Field and/or outside the Territory.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-44	 

     

    

 

(a)          Procedure.
The Party having the obligation or first right to defend an Infringement Claim
in which either Party is named as defendant will be referred to as the “Defending Party.” The
Defending Party will have the sole and exclusive right to select counsel for any Infringement Claim; provided that it will consult
with the other Party with respect to selection of counsel for such defense. The Defending Party will keep the other Party informed,
and will from time to time consult with the other Party regarding the status of any such claims and will provide the other Party
with copies of all documents filed in, and all written communications relating to, any suit brought in connection with such claims.
The other Party will also have the right to participate and be represented in any such claim or related suit, at its own expense.
The other Party will have the sole and exclusive right to control the defense of an Infringement Claim in the event the Defending
Party fails to exercise its right to assume such defense within ***** following written notice from the other Party of such Infringement
Claim. No Party will settle any claims or suits involving rights of another Party without obtaining the prior written consent of
such other Party, which consent will not be unreasonably withheld. Any recoveries by the Defending Party of attorneys’ fees
or costs in defense of a claim in the Territory under this Section 9.4, and any sanctions awarded to Defending Party and
against a party asserting a claim in the Territory being defended under this Section 9.4, will be *****. The costs and expenses
and damages incurred by the Parties in connection with defense of such Infringement Claim in the Territory will be treated as Allowable
Expense in the Territory. The costs and expenses and damages incurred by the Parties in connection with defense of such Infringement
Claim outside the Field or outside the Territory will be allocated between the Parties as follows: *****. Medgenics and KHK will
have the right to take action to invalidate Third Party’s patents which would be infringed by the activity under this Agreement.
The cost and expenses of such action will be shared in the same way as set forth above.

 

9.4.3           Limitations.
EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN SECTION 12.10, THE FOREGOING STATES THE ENTIRE RESPONSIBILITY OF KHK AND MEDGENICS,
AND THE SOLE AND EXCLUSIVE REMEDY OF KHK OR MEDGENICS, AS THE CASE MAY BE, IN THE CASE OF ANY CLAIMED INFRINGEMENT OF ANY THIRD
PARTY PATENT RIGHTS OR UNAUTHORIZED USE OR MISAPPROPRIATION OF ANY THIRD PARTY’S KNOW-HOW.

 

9.5           Third
Party Technology. If either Party reasonably determines that any Third Party Technology is reasonably necessary for
the Development, Manufacture, or Commercialization of a Licensed Product in the Field, then such Party will notify the other Party.
The Parties will determine which Party will negotiate the most favorable license. The chosen Party will obtain a license to such
Third Party Technology with the right to sublicense to the other Party. Subject to the foregoing, the terms and conditions involved
in obtaining such rights will be determined at such chosen Party’s sole discretion. If such chosen Party elects not to obtain
rights to such Third Party Technology, or is unsuccessful in obtaining such Third Party Technology, then the other Party will have
the right (but not the obligation) to negotiate and obtain rights from such Third Party at its sole discretion and expense. Notwithstanding
anything to the contrary in this Section 9.5, Medgenics will pay to a Third Party any and all royalties and other payments
pursuant to any agreement under which a Party acquires rights to intellectual property that would otherwise block the Development
and/or Commercialization of a Profit-Share Product in the Field in the Territory. Any such payments will be included in Third Party
Technology Costs and, for clarity, will be included in Allowable Expenses for the applicable Profit-Share Product. The costs outside
the Field will be borne solely by KHK, provided that such costs will be subject to royalties reduction to Medgenics in accordance
with Section 8.5.2. Notwithstanding the foregoing, with respect to any lump sum payment under any such agreement that is
made with respect to a license covering countries or jurisdictions both inside and outside of the Territory, the Parties will negotiate
and decide in good faith the allocation of the payment based on the scope and territory of the acquired rights.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-45	 

     

    

 

9.6           Other
Infringement Resolutions.

 

9.6.1           Notice
of Third Party Applications. In the event of a dispute or potential dispute that has not ripened into a demand, claim or suit
of the type described in Sections 9.3 or 9.4, the same principles governing control of the resolution of the dispute,
consent to settlements of the dispute, and implementation of the settlement of the dispute (including sharing in and allocating
the payment or receipt of damages, license fees, royalties and other compensation) will apply. Notwithstanding anything herein
to the contrary, within ***** after Regulatory Approval is achieved with respect to a BLA for a Licensed Product in the Territory
(or such shorter time as the Parties agree in the case of a Licensed Product in the Territory that does not earn reference product
exclusivity under the PHS Act), the Parties will consult as to potential strategies with respect to unexpired Patent Rights Controlled
by either Party that potentially could be asserted if an unlicensed person engaged in the making, using, offering to sell, selling,
or importing into the United States of a product described in a Biosimilar Application filed by a Third Party applicant (a “Section
351(k) Applicant”).

 

9.6.2           Cooperation
and Enforcement. If either Party who is the reference product sponsor of the Licensed Product within the meaning of section
351(l)(1)(A) of the PHS Act (“Reference Product Sponsor”) receives notice of a Biosimilar Application
filed by a Section 351(k) Applicant that references such Licensed Product and related manufacturing information in accordance with
section 351(l)(2)(A) of the PHS Act or receives a notice of commercial marketing in accordance with section 351(l)(8)(A) of the
PHS Act, then such Party will provide notice to the other Party, and the Parties will discuss and cooperate with each other in
determining the Reference Product Sponsor’s course of action with regard to (a) engaging in the information exchange
provisions of the Biologics Price Competition and Innovation Act of 2009, Section 351(k) of the Public Health Service Act, as may
be amended, supplemented, or replaced (the “BPCIA”), including providing a list of patents that relate
to the relevant Licensed Product, (b) engaging in the patent resolution provisions of the BPCIA, and (c) determining
which patents will be the subject of immediate patent infringement action under Section 351(l)(6) of the BPCIA. In the event that
the Parties do not agree with respect to the exercise of any such rights, KHK will make the final determination with respect thereto,
including without limitation with respect to (a), (b) and (c) above. If any patent litigation commences with respect to a
Biosimilar Application filed by a Section 351(k) Applicant that references such Licensed Product, then the provisions of Section
9.3 will thereafter apply as if such Section 351(k) Applicant were an infringer or suspected infringer.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-46	 

     

    

 

9.7           Product
Trademarks.

 

9.7.1           Product
Trademarks in the Territory. Medgenics will own the Product Trademarks for each Licensed Product in the Territory and will
be solely responsible for filing and maintaining the Product Trademarks in the Territory (including payment of costs associated
therewith). Medgenics hereby grants to KHK a non-exclusive, nontransferable (except as provided in Section 13.3) license,
with the right to grant sublicenses solely in accordance with Section 7.4, under the Product Trademarks, to use and display
the Product Trademarks in connection with Commercialization outside the Territory.

 

9.7.2           Product
Trademarks Outside the Territory. KHK will own the Product Trademarks for each Licensed Product outside the Territory and will
be solely responsible for filing and maintaining the Product Trademarks outside the Territory (including payment of costs associated
therewith).

 

9.7.3           Each
Party agrees to (a) conduct its business in a manner that will not damage the reputation or integrity of the Trademarks of the
other Party, (b) conduct its business in a manner that will not damage in any way the goodwill associated with the Trademarks of
the other Party, (c) use the Trademarks of the other Party in a manner that will not cause a negative impact upon the good name
of such other Party, (d) conduct its business in compliance with all applicable trademark Laws and (e) use the other Party’s
Trademarks only in accordance with this Agreement.

 

9.8           Patent
Term Extensions. The Parties will use reasonable efforts to obtain all available supplementary protection certificates
(“SPC”) and other extensions of Patent Rights. Each Party will execute such authorizations and other
documents and take such other actions as may be reasonably requested by the other Party to obtain such extensions. The Parties
will cooperate with each other in gaining patent term restorations, extensions and/or SPCs wherever applicable to Patent Rights.
The Party first eligible to seek patent term restoration or extension of any such Patent Rights or any SPC related thereto will
have the right to do so; provided that if in any country the first Party has an option to extend the patent term for only one of
several patents, the first Party will consult with the other Party before making the election. If more than one patent is eligible
for extension or patent term restoration, KHK will select in good faith a strategy that will maximize patent protection and commercial
value for each Licensed Product. All filings for such extensions and certificates will be made by the Party to whom responsibility
for prosecution and maintenance of the Patent Rights are assigned, provided that in the event that the Party to whom such responsibility
is assigned elects not to file for an extension or SPC, such Party will (a) inform the other Party of its intention not to file
and (b) grant the other Party the right to file for such extension or SPC in the patentee’s name, and (c) provide all necessary
assistance in connection therewith.

 

9.9           Patent
Marking. Medgenics (and its Related Parties) will mark Licensed Products marketed and sold by Medgenics (and/or its
Related Parties, as applicable) with appropriate numbers of the KHK Patent Rights printed on the appropriate portion of the packaging.
Without limiting the foregoing, Medgenics shall mark each Licensed Product sold or offered for sale by or on behalf of Medgenics
with the patent number or numbers of any issued patents encompassed within the KHK Patent Rights solely owned by LJI, if applicable,
and Medgenics shall ensure that the content, form, location and language of such markings is in accordance with the applicable
laws and practices of each jurisdiction in which the Licensed Products are made, used or sold.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-47	 

     

    

 

Article
10.

CONFIDENTIALITY

 

10.1         Confidentiality.

 

10.1.1           Confidential
Information. All Confidential Information disclosed by or on behalf of a Party (together with its Affiliates, the “Disclosing
Party”) to the other Party (together with its Affiliates, the “Receiving Party”) during
the Term will be used by the Receiving Party solely in connection with the activities contemplated by this Agreement, will be maintained
in confidence by the Receiving Party and will not otherwise be disclosed by the Receiving Party to any other person, firm, or agency,
governmental or private (other than a Party’s Affiliates or as set forth in Section 10.1.2), without the prior written
consent of the Disclosing Party, except to the extent that the Confidential Information (as determined by competent documentation):

 

(a)          was
known or used by the Receiving Party without restriction as to its use or disclosure prior to its date of disclosure to the receiving
Party; or

 

(b)          either
before or after the date of the disclosure to the Receiving Party is lawfully disclosed to the Receiving Party without restriction
as to its use or disclosure by sources other than the Disclosing Party rightfully in possession of the Confidential Information;
or

 

(c)          either
before or after the date of the disclosure to the Receiving Party becomes published or generally known to the public (including
information known to the public through the sale of products in the ordinary course of business) through no fault or omission on
the part of the Receiving Party or its sublicensees; or

 

(d)          is
independently developed by or for the Receiving Party without reference to or reliance upon the Confidential Information.

 

All obligations of
confidentiality imposed under this Article 10 will expire five (5) years following termination of this Agreement.

 

10.1.2           Required
Disclosures. Section 10.1.1 will not preclude the Receiving Party from disclosing Confidential Information to the extent
such Confidential Information is required to be disclosed by the Receiving Party to comply with Applicable Laws, to defend or prosecute
litigation or to comply with governmental regulations, provided that the Receiving Party provides prior written notice of such
disclosure to the Disclosing Party and takes reasonable and lawful actions to avoid and/or minimize the degree of such disclosure.
If a public disclosure is required by any Applicable Laws, including, without limitation, in a filing with the Securities and Exchange
Commission or submission to an exchange on which any securities of a Party is listed, the disclosing Party will provide copies
of the disclosure (but shall be permitted to redact or omit portions of any filing, submission or disclosure not relevant to this
Agreement) reasonably in advance of such filing or other disclosure, for the non-disclosing Party’s prior review and comment
and to allow the other Party a reasonable time to object to any such disclosure or to request confidential treatment thereof. The
disclosing Party will negotiate in good faith with the applicable Regulatory Authority concerning the confidential treatment request.
If the disclosure is substantially similar to prior disclosures made by the Party and for which the obligations of this provision
have been satisfied, the disclosing Party need not share such disclosure ahead of it being made.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-48	 

     

    

 

10.1.3           Permitted
Disclosures. KHK and Medgenics each agree that they will provide Confidential Information received from the other Party only
to their respective directors, officers, employees, consultants, suppliers, sublicensees, collaborators and advisors, and to those
of such Party’s Related Parties, who have a need to know for such Party’s development, manufacture, and commercialization
of Licensed Products in accordance with this Agreement, including in connection with Regulatory Filings and obtaining Regulatory
Approvals, provided that such Third Parties are bound by confidentiality obligations at least as strict as this Article 10.
In addition, each Party may not disclose the terms of this Agreement (to the extent such terms are confidential) to any Third Party
except to actual or prospective lenders, investors, acquirers, licensees/sublicensees or strategic partners (including the KHK
Licensors and Medgenics Licensor) or to a Party’s accountants, attorneys and other professional advisors; provided that such
disclosures will be subject to continued confidentiality obligations at least as strict as this Article 10.

 

10.2         Publication
Review.

 

10.2.1           Publications
by the Parties. Subject to Section 10.2.2 and except as required by Applicable Law, during the Term, each Party agrees
that, unless explicitly authorized in this Agreement, it will not without the prior written consent of the other Party, which consent
will not be unreasonably withheld, conditioned or delayed, file patent application, issue any press release, make any public announcement,
or issue any scientific or other presentations or publications, with respect to the results of any Development work relating to
this Agreement without the opportunity for prior review by the other Party. With respect to any such proposed publications or presentations
by one of the Parties, each Party will provide to the other Party for information and review any (a) abstracts, posters and slide
presentations that the Party proposes prior to any scientific meetings and the other Party will provide feedback to the publishing
Party within ten (10) of its Business Days of its receipt of such abstracts, posters and slide presentations, and (b) primary and
final manuscripts and review articles that the Party proposes prior to journal submission and the other Party will provide feedback
within fifteen (15) of its Business Days of its receipt of such manuscript or article. Each Party agrees, upon request from the
other Party, not to submit any abstract or manuscript for publication or to make any scientific presentation until the other Party
is given up to forty-five (45) days from the date of such written request to seek appropriate patent protection for any material
in such publication or presentation which it reasonably believes is patentable. Once such abstracts, manuscripts or presentations
have been reviewed by the other Party and have been approved for publication, the same abstracts, manuscripts or presentations
do not have to be provided again to the other Party for review for a later submission for publication. Expedited reviews for abstracts
or poster presentations may be arranged if mutually agreeable to the Parties. The other Party also will have the right to require
that its Confidential Information that may be disclosed in any such proposed publication or presentation be deleted prior to such
publication or presentation.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-49	 

     

    

 

10.2.2           Publications
by Third Parties. Notwithstanding Section 10.2.1, the Parties understand and agree that any restrictions on scientific
or other presentations or publications will not be construed to prohibit the clinical investigators of any clinical trials conducted
under this Agreement (including without limitation CHOP), from making scholarly publications, manuscripts, abstracts, oral presentations
or other disclosures with respect to the results of any Development work, including without limitation clinical data resulting
from such clinical trials (“Publications”); provided that Medgenics will ensure that (a) any such
clinical investigator must agree to submit to KHK for its review and comment, a copy of any proposed Publication, abstract or other
disclosure resulting from such activities, simultaneous with submission of the same to Medgenics and at least forty-five (45) days
prior to any such presentation or publication, (b) such publication will not contain any references to, or otherwise disclose
any of, the Confidential Information (other than clinical data) without KHK’s prior written consent, and (c) at KHK’s
request, such clinical investigator will, for a reasonable period of up to ninety (90) days from initial delivery to KHK, delay
revealing any subject matter included in the clinical data in any publication or disclosure in order to permit the filing of patent
applications.

 

10.3         Public
Announcements and Use of Names. Except for public disclosures (a) resulting from the
issuance of one or more press releases to be mutually-agreed upon by the Parties, (b) otherwise permitted under this Article
10 or (c) required by Applicable Law or by the rules and regulations of any securities exchange on which a Party’s
securities are traded, neither Party will disclose any publicity, news release or public announcements,
written or oral, whether to the public or press, stockholders or otherwise, relating to the execution of this Agreement, the subject
matter of this Agreement, any of the terms of this Agreement, or any amendment hereto without the prior written consent of the
other Party.

 

Article
11.

TERM AND TERMINATION

 

11.1         Term.
This Agreement will commence on the Effective Date and will remain in full force and effect for as long as any Licensed Product(s)
is Commercialized by either Party and/or its Related Parties, unless terminated earlier pursuant to Section 11.2 or 11.3
(the “Term”).

 

11.2         Termination
by KHK.

 

11.2.1           Insolvency.
To the extent permitted under Applicable Laws, KHK will have the right to terminate this Agreement in its entirety, at KHK’s
sole discretion, upon delivery of written notice to Medgenics upon the filing by Medgenics in any court or agency pursuant to any
statute or regulation of the United States or any other jurisdiction a petition in bankruptcy or insolvency or for reorganization
or similar arrangement for the benefit of creditors or for the appointment of a receiver or trustee of Medgenics or its assets,
upon the proposal by Medgenics of a written agreement of composition or extension of its debts, or if Medgenics is served by a
Third Party (and not by KHK) with an involuntary petition against it in any insolvency proceeding, upon the ninety-first (91st)
day after such service if such involuntary petition has not previously been stayed or dismissed, or upon the making by Medgenics
of an assignment for the benefit of its creditors.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-50	 

     

    

 

11.2.2           Breach.
KHK will have the right to terminate this Agreement in its entirety, at KHK’s sole discretion, subject to Section 11.2.5,
upon delivery of written notice to Medgenics in the event of any material breach by Medgenics of this Agreement, provided that
such breach has not been cured within ***** after written notice of such breach and KHK’s intention to terminate is given
by KHK to Medgenics; provided, however, that if such breach relates to the failure to make a payment when due, such breach must
be cured within ***** after written notice thereof is given by KHK (except that in the case of a bona fide dispute over whether
or to what extent a payment by Medgenics to KHK is due, this Section 11.2.2 will not be triggered provided that Medgenics
will pay the amount in dispute into escrow until such dispute is resolved). Such termination will be effective upon expiration
of the applicable time period set forth in this Section 11.2.2. Subject to Section 11.2.5, any such termination of
this Agreement will become effective at the end of the applicable cure period, unless Medgenics has cured any such breach or default
prior to the expiration of such cure period, or, if such breach is not susceptible to cure within the cure period, then, KHK’s
right of termination will be suspended only if and for so long as Medgenics has provided to KHK a written plan that is reasonably
calculated to effect a cure within ***** thereafter and such plan is acceptable to KHK (such acceptance not to be unreasonably
withheld, conditioned, or delayed), and Medgenics commits to and carries out such plan as provided to KHK.

 

11.2.3           Termination
as to a Country.

 

(a)          European
Union. KHK will have the right to terminate this Agreement, solely in the European Union if Medgenics fails to satisfy its
obligations set forth in Section 6.1.1 with respect to the European Union or Section 6.2 with respect to the EU5
Countries.

 

(b)          Canada.
KHK will have the right to terminate this Agreement, solely as it relates to Canada, if (a) both Parties decide to not proceed
with Development in the Field in Canada and not to obtain Regulatory Approval for the Licensed Product in the Field in Canada,
(b) Medgenics declines to proceed with Development in the Field in Canada and not to obtain Regulatory Approval for the Licensed
Product in the Field in Canada, and the Parties do not agree, in each case as set forth in Section 6.1.2, or (c) if Medgenics
fails to satisfy its obligations set forth in Section 6.2 with respect to Canada.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-51	 

     

    

 

11.2.4           Termination
for Patent Challenge. If Medgenics or any of its Affiliates directly claim, or cause a Third Party to claim, or knowingly supports
(other than as may be necessary or reasonably required to assert a cross-claim or a counter-claim, or in response to a subpoena
or court or administrative law request or order), including by providing information, documents, and/or funding, a claim (a) to
the validity, scope, enforceability or patentability of any of the KHK Patent Rights in any formal legal or administrative action
or proceeding, or (b) that no Earned Royalties, Sublicense Royalties, Net Receipts, milestone payments, Patent Costs or other payments
(as such capitalized terms are defined under the LJI Agreement) are due or required to be paid to LJI under the LJI Agreement because
the applicable KHK Patents licensed by LJI to KHK under the LJI Agreement covering or claiming a Licensed Product are invalid or
unenforceable except where such KHK Patent Rights have been found to be unpatentable, invalid or unenforceable by a court or other
authority of competent jurisdiction, from which decision no appeal is taken or can be taken, or have been admitted or determined
to be invalid or unenforceable through reissue, re-examination, disclaimer or similar formal proceeding, or where a pending application
within the KHK Patent Rights has been abandoned or finally rejected (in each case, other than pursuant to a claim by KHK, Medgenics
or their respective Affiliates or by a Third Party caused by any of the foregoing entities) in any Challenge, then (x) if and to
the extent permitted by Applicable Law, ***** during and after the pendency of such Challenges from the date KHK, Medgenics, or
any of their respective Affiliates first institute or make such challenges. In such event, notwithstanding anything to the contrary
in this Agreement, (i) Medgenics will not be obligated to ***** in case such Challenges are initiated or conducted solely by or
on behalf of KHK or any of its Affiliates (in which case, KHK will be responsible for *****), and (ii) KHK will not be obligated
to ***** in case such Challenges are initiated or conducted solely by or on behalf of Medgenics or any of its Affiliates (in which
case, Medgenics will *****. ***** under this Section 11.2.4 (x) may be exercised at any time after Medgenics (or any of
its Affiliates) may have Challenged or knowingly supports (other than in response to a subpoena or court order) a Challenge to
the validity, enforceability or patentability of any of the KHK Patent Rights. If a sublicensee of Medgenics Challenges the validity,
scope or enforceability of or otherwise opposes any of the KHK Patent Rights under which such sublicensee is sublicensed, then
Medgenics will, upon written notice from KHK, promptly terminate such sublicense. “Challenge” under this
Section 11.2.4 will refer to a legal action or filing with a patent authority or tribunal or a court that could, if successful,
result in a holding of invalidity, unenforceability, or unpatentability of a patent or application within the KHK Patent Rights.

 

11.2.5           Dispute.
If Medgenics reasonably and in good faith disagrees as to whether KHK has a basis for terminating this Agreement pursuant to Section
11.2.2, Medgenics may contest the allegation in accordance with Section 13.2. It is understood and acknowledged that,
during the pendency of such a dispute, all of the terms and conditions of this Agreement will remain in effect, and the Parties
will continue to perform all of their respective obligations under this Agreement. No termination by KHK pursuant to Section
11.2.2 will be effective unless and until KHK’s right to terminate this Agreement under Section 11.2.2 has been
finally determined by arbitration in accordance with Section 13.2. Any payments that are owed one Party to the other Party
pursuant to this Agreement affected by such dispute may be paid into escrow pending resolution of the dispute, and then paid or
refunded to the appropriate party as determined pursuant to Section 13.2.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-52	 

     

    

 

11.2.6           Abandonment.
If Medgenics, in its discretion, decides to abandon all of its Development and/or Commercialization efforts with respect to the
Licensed Product, Medgenics will promptly notify KHK in writing of its intent to do so. KHK will have the right to terminate this
Agreement immediately upon receipt of such notice.

 

11.3         Termination
by Medgenics.

 

11.3.1           Insolvency.
To the extent permitted under Applicable Law, Medgenics will have the right to terminate this Agreement in its entirety, at Medgenics’
sole discretion, upon delivery of written notice to KHK upon the filing by KHK in any court or agency pursuant to any statute or
regulation of the United States or any other jurisdiction a petition in bankruptcy or insolvency or for reorganization or similar
arrangement for the benefit of creditors or for the appointment of a receiver or trustee of KHK or its assets, upon the proposal
by KHK of a written agreement of composition or extension of its debts, or if KHK is served by a Third Party (and not by Medgenics)
with an involuntary petition against it in any insolvency proceeding, upon the ninety-first (91st) day after such service if such
involuntary petition has not previously been stayed or dismissed, or upon the making by KHK of an assignment for the benefit of
its creditors.

 

11.3.2           Breach.
Medgenics will have the right to terminate this Agreement in its entirety, at Medgenics’ sole discretion, subject to Section
11.3.4, upon delivery of written notice to KHK in the event of a material breach by KHK of this Agreement, provided that such
breach has not been cured within ***** after written notice of such breach and Medgenics’ intention to terminate is given
by Medgenics to KHK; provided, however, that if such breach relates to the failure to make a payment when due, such breach must
be cured within ***** after written notice thereof is given by Medgenics (except that in the case of a bona fide dispute over whether
or to what extent a payment by KHK to Medgenics is due, this Section 11.3.2 will not be triggered provided that KHK will
pay the amount in dispute into escrow until such dispute is resolved). Such termination will be effective upon expiration of the
applicable time period set forth in this Section 11.3.2. Subject to Section 11.3.4, any such termination of this
Agreement will become effective at the end of the applicable cure period, unless KHK has cured any such breach or default prior
to the expiration of such cure period, or, if such breach is not susceptible to cure within the cure period, then, Medgenics’
right of termination will be suspended only if and for so long as KHK has provided to Medgenics a written plan that is reasonably
calculated to effect a cure within ***** thereafter and such plan is acceptable to Medgenics (such acceptance not to be unreasonably
withheld, conditioned, or delayed), and KHK commits to and carries out such plan as provided to Medgenics.

 

11.3.3           Convenience.
*****, such termination to be effective at the end of such notice period, Medgenics may terminate this Agreement as to such Licensed
Product and/or such jurisdiction for any reason or no reason, including if Medgenics, in its reasonable discretion, decides to
cease all of its Development and/or Commercialization efforts with respect to such Licensed Product in such jurisdiction.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-53	 

     

    

 

11.3.4           Dispute.
If KHK reasonably and in good faith disagrees as to whether Medgenics has a basis for terminating this Agreement pursuant to Section
11.3.2, KHK may contest the allegation in accordance with Section 13.2. It is understood and acknowledged that, during
the pendency of such a dispute, all of the terms and conditions of this Agreement will remain in effect, and the Parties will continue
to perform all of their respective obligations under this Agreement. No termination by Medgenics pursuant to Section 11.3.2
will be effective unless and until KHK’s right to terminate this Agreement under Section 11.3.2 has been finally determined
by arbitration in accordance with Section 13.2. Any payments that are owed one Party to the other Party pursuant to this
Agreement affected by such dispute may be paid into escrow pending resolution of the dispute, and then paid or refunded to the
appropriate party as determined pursuant to Section 13.2.

 

11.4         Consequences
of Termination. Upon termination of this Agreement in its entirety or with respect to a country in the Territory or
the European Union pursuant to Section 11.2.3(a) and in case of Canada pursuant to Section 11.2.3(b) (in which event
the following will apply only with respect to such country):

 

11.4.1           Reversion.
All rights and licenses granted to Medgenics in Article 7 will terminate, all rights of Medgenics under the KHK Technology
will revert to KHK, and Medgenics and its Affiliates will cease all use of the KHK Technology. Except as set forth in Sections
11.4.2 through 11.4.9, all rights and licenses granted to KHK in Article 7 will terminate, all rights of KHK
under the Medgenics Technology will revert to Medgenics, and KHK and its Affiliates will cease all use of the Medgenics Technology.

 

11.4.2           Regulatory
Filings. Medgenics will assign, and hereby does assign effective as of the effective date of such termination, to KHK all Regulatory
Filings (including all INDs and NDAs) and Regulatory Approvals and all other documents necessary to further Develop, Manufacture,
and Commercialize the Licensed Products, as they exist as of the date of such termination, (and all of Medgenics’ right,
title and interest therein and thereto). Medgenics will provide to KHK one (1) copy of the foregoing documents and Regulatory Filings,
all documents and filings contained in or referenced in any such Regulatory Filings, together with the raw and summarized data
for any preclinical and clinical studies of the Licensed Product. For clarity, KHK will have the right to use the foregoing material
information, materials and data developed by Medgenics solely in connection with KHK’s development, manufacture and commercialization
of Licensed Products. KHK will have the right to seek specific performance of Medgenics’ obligations referenced in this Section
11.4.2 and/or in the event of failure to obtain assignment, Medgenics hereby consents and grants to KHK the right to access
and reference (without any further action required on the part of Medgenics, whose authorization to file this consent with any
Regulatory Authority is hereby granted) any and all such regulatory filings for any regulatory or other use or purpose. Without
limiting the foregoing in this paragraph, to the extent applicable, Medgenics’ obligations under this Section 11.4.2
will continue with respect to all countries in the Territory for which there is a failure to obtain assignment of all regulatory
filings and Regulatory Approvals.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-54	 

     

    

 

11.4.3           Know-How
Transfer. Medgenics will provide to KHK all data and information generated during the Term necessary for the development and/or
commercialization of the relevant Licensed Products and assign (or, if applicable, cause its Affiliate to assign) to KHK all of
Medgenics’ (and such Affiliate’s) entire right, title and interest in and to all such data and information. Medgenics
will provide to KHK the tangible embodiments of all other Know-How Controlled by Medgenics and its Affiliates in existence as of
the effective date of such termination relating to the Development, Manufacturing, and Commercialization of the Licensed Products,
including without limitation Medgenics’ manufacturing processes, techniques and trade secrets necessary for and used in the
manufacture of such Licensed Products as of the effective date of such termination and all Know-How specifically relating to any
composition, formulation, method of use or manufacture of such Licensed Products. Medgenics will grant, and hereby does grant effective
as of the effective date of such termination, to KHK a non-exclusive, irrevocable, royalty-free, transferable, sublicensable, worldwide
right and license under such Know-How for developing, making, using, importing, selling and offering for sale Licensed Products.
Medgenics will reasonably cooperate with KHK to assist KHK with understanding and using the Know How provided to KHK under this
Section 11.4.3. If Medgenics has decided to abandon all of its Development and/or Commercialization efforts with respect
to the Licensed Product, and this Agreement is terminated pursuant to Section 11.2.6, Medgenics will provide to KHK all
technology resulting from such abandoned Development and/or Commercialization efforts. KHK will have a royalty-free, irrevocable,
world-wide, unlimited license to such abandoned Development and/or Commercialization efforts including the right to sublicense
and to contract with Third Parties for further Development and/or Commercialization. 

 

11.4.4           Trademarks.
To the extent that Medgenics owns any trademark(s) (including without limitation any Product Trademarks) and/or domain names that
pertain specifically to an Licensed Product that KHK believes would be necessary for the Commercialization of a Licensed Product
(as then currently marketed, but not including any marks that include, in whole or part, any corporate name or logo of Medgenics),
Medgenics will assign (or, if applicable, cause its Affiliate to assign), and hereby does assign effective as of the effective
date of such termination, to KHK all of Medgenics’ (and such Affiliate’s) right, title and interest in and to any registered
or unregistered trademark, trademark application, trade name or internet domain name in each country.

 

11.4.5           Termination
License. Medgenics will grant, and hereby grants effective as of the effective date of such termination, to KHK a non-exclusive,
irrevocable, royalty-free, transferable, sublicensable, worldwide (excluding the countries of the Territory to which Medgenics
retains its rights) right and license under any Patent Rights owned solely by Medgenics or its Affiliates as of the effective date
of termination to the extent that such Patent Rights cover or claim the composition of matter, use, or manufacture of Licensed
Products and for the sole purpose of developing, manufacturing, and commercializing Licensed Products. Medgenics will grant to
KHK, under any Patent Rights that Medgenics’ Controls but does not own at the time of termination, to the full extent permitted
under the agreement(s) of Medgenics covering such Patent Rights, a non-exclusive, irrevocable, royalty-free (as to Medgenics),
transferable, sublicensable, worldwide (excluding the countries of the Territory to which Medgenics retains its rights) right and
license, to the extent that such Patent Rights cover or claim the composition of matter, use, or manufacture of Licensed Products
and for the sole purpose of developing, manufacturing, and commercializing Licensed Products; provided that KHK enters into a written
agreement with Medgenics with respect to each such Patent Right that (a) ensures compliance with the applicable contract between
Medgenics and its licensor including KHK agreeing to all provisions thereof that must be imposed on sublicensees, (b) requires
KHK to pay all amounts payable to its licensor by Medgenics related to KHK’s exercise or enjoyment of such rights including
milestones, royalties and patent expenses and (c) indemnifies Medgenics for any breach of such agreement between KHK and Medgenics.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-55	 

     

    

 

11.4.6           Continued
Supply. If Medgenics has any inventory of any Licensed Products suitable for use in clinical trials, Medgenics will
offer to sell such Licensed Products to KHK at ***** (but KHK will be under no obligation to purchase the foregoing inventory of
Licensed Products unless it agrees to do so in writing at such time); provided, however, that, in the event of a termination pursuant
to Section 11.3.3, *****. If Medgenics has the capability in place as of the effective date of such termination to commercially
Manufacture and supply to KHK all or part of KHK’s requirements of the applicable Licensed Products, if KHK so elects in
its sole discretion, Medgenics will use Commercially Reasonable Efforts to supply to KHK ***** as much of KHK’s requirements
of such Licensed Products (and to develop a reasonable inventory level) during such period, ***** for such Licensed Products, under
terms and conditions as may be mutually agreed between the Parties. If KHK, despite its best efforts, is unable to Manufacture,
or to secure a supply of, such Licensed Products in an amount sufficient to meet its requirements *****, Medgenics will continue
to supply such Licensed Products to KHK to the extent necessary to meet KHK’s requirements, so long as KHK continues to use
its best efforts to develop the capabilities necessary to Manufacture such Licensed Products and/or to secure a supply of such
Licensed Products.

 

11.4.7           Transfer
of Manufacturing Technology. In the event, at the time of such termination, (a) Medgenics manufactures the Licensed Products
at its own facility, Medgenics will conduct manufacturing technology transfer to KHK, and (b) if Medgenics engages a Third Party
to manufacture and supply the Licensed Products, Medgenics will, at KHK’s election, either (i) have such Third Party
conduct manufacturing technology transfer to KHK or (ii) will use reasonable efforts to assist in the transfer of such supply
arrangements to KHK.

 

11.4.8           Continuing
Obligations. Neither Party will be relieved of any obligation that accrued prior to the effective date of such termination.
All amounts due or payable to KHK that were accrued prior to the effective date of termination will remain due and payable. Except
as otherwise expressly provided herein, no additional amounts will be payable based on events occurring after the effective date
of termination; provided that the foregoing will not be deemed to limit either Party’s indemnification obligations under
this Agreement for acts or omissions incurring prior to the effective date of such termination that are the subject of such indemnification
even if the indemnification amount cannot be accrued or determined as of the effective date of such termination.

 

11.4.9           Retention
of Payments. KHK will have the right to retain all amounts previously paid to KHK by Medgenics.

 

11.4.10         No
Compensation. KHK will not owe any compensation to Medgenics for the research, development, manufacture, or commercialization
of any Licensed Products in the event of any termination of the Agreement by KHK, without prejudice to any rights that either Party
may have to bring a claim for damages arising out of this Agreement and the termination thereof or any other amounts payable with
respect to activities conducted prior to the effective date of such termination.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-56	 

     

    

 

11.4.11         Costs.
Any costs and expenses incurred by Medgenics in connection with the assignments and transfers made by Medgenics under this Section
11.4 will be borne by Medgenics.

 

11.5         Return
of Confidential Information. Upon the termination of this Agreement, each Party will promptly return to the other Party,
delete or destroy (with written notification of such destruction) all relevant records and materials in such Party’s possession
or control containing Confidential Information of the other Party; provided that such Party may keep one copy of such materials
for archival purposes only.

 

11.6         Effect
of Termination; Survival. The termination of this Agreement will not relieve the Parties of any obligation accruing
prior to such termination. The provisions of Article 10 (Confidentiality), Article 12 (Representations and Warranties;
Indemnification) and Article 13 (Miscellaneous Provisions) and Sections 7.4.3 (Effect of Termination on Sublicenses)
and 9.2.2 (Joint Inventions) will survive any termination of this Agreement. Except as set forth in this Article 11
or as otherwise set forth in this Agreement, upon termination of this Agreement all other rights and obligations cease. Any termination
of this Agreement will be without prejudice to the rights of either Party against the other accrued or accruing under this Agreement
before termination.

 

11.7         Rights
in Bankruptcy. All rights and licenses granted under or pursuant to this Agreement by either Party, including without
limitation Article 7, are, and will otherwise be deemed to be, for purposes of Section 365(n) of the U.S. Bankruptcy Code
or analogous provisions of Applicable Law outside the United States, licenses of right to “intellectual property” as
defined under Section 101 of the U.S. Bankruptcy Code or analogous provisions of Applicable Law outside the United States (hereinafter
“IP”). The Parties agree that each Party, as a licensee of such rights under this Agreement, will retain
and may fully exercise all of its rights and elections under the U.S. Bankruptcy Code or any other provisions of Applicable Law
outside the United States that provide similar protection for IP. In the event of termination of a Party pursuant to Section
11.2.1 or 11.3.1, the terminated Party hereby grants to the other Party and its Affiliates a right to obtain possession
of and to benefit from a complete duplicate of (or complete access to, as appropriate) any such IP and all embodiments of intellectual
property, which, if not already in such other Party’s possession, will be promptly delivered to it upon such other Party’s
written request therefor. The term “embodiments of intellectual property” includes all tangible, electronic or other
embodiments of rights and licenses hereunder, including all Licensed Products, all Regulatory Approval Applications and Regulatory
Approvals and rights of reference therein, and all Information related to Licensed Products, KHK Technology and Medgenics Technology,
as applicable. The terminated Party will not interfere with the exercise by the other Party or its Affiliates of rights and licenses
to IP and embodiments of intellectual property licensed hereunder in accordance with this Agreement and agrees to assist such other
Party and Affiliates of such other Party to obtain the IP and embodiments of intellectual property in the possession or control
of Third Parties as reasonably necessary or desirable for such other Party or Affiliates of such other Party to exercise such rights
and licenses in accordance with this Agreement. The Parties acknowledge and agree that milestone payments made under Section
8.3 do not constitute royalties within the meaning of U.S. Bankruptcy Code §365(n) or relate to licenses of intellectual
property hereunder.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-57	 

     

    

 

11.8         No
Limitation of Remedies. Except as herein expressly provided, notwithstanding anything to the contrary in this Agreement,
except as otherwise set forth in this Agreement, termination of this Agreement will not relieve the Parties of any liability or
obligation which accrued hereunder prior to the effective date of such termination nor prejudice either Party’s right to
obtain performance of any obligation. Each Party will be free, pursuant to Section 13.2, to seek (without restriction as
to the number of times it may seek) damages, costs and remedies that may be available under Applicable Law or in equity and will
be entitled to offset the amount of any damages and costs obtained in a final determination under Section 13.2 of monetary
damages or costs (as permitted by this Agreement) against the other Party against any amounts otherwise due to such other Party
under this Agreement. It is understood and agreed that either Party will be entitled to seek specific performance as a remedy to
enforce the provisions of this Article 11, in addition to any other remedy to which such Party may be entitled by Applicable
Law. Nothing in this Article 11 will be deemed to limit any remedy to which either Party may be entitled by Applicable Law.

 

Article
12.

REPRESENTATIONS, WARRANTIES, AND COVENANTS; DISCLAIMERS; INDEMNIFICATION

 

12.1         Mutual
Representations and Warranties. Each Party represents, warrants and covenants to the other Party that as of the Effective
Date of this Agreement:

 

(a)          Corporate
Existence and Authority. It is a company duly organized, validly existing and in good standing under the laws of its jurisdiction
of organization, and has full corporate or other power and authority to enter into this Agreement and to carry out the provisions
hereof.

 

(b)          Authorized
Execution; Binding Obligation.

 

(i)          The
execution, delivery, and performance of this Agreement and the consummation of the transactions contemplated hereby have been duly
authorized and approved by all necessary corporate action on its part; and

 

(ii)         This
Agreement has been duly executed and delivered by it and constitutes a legal, valid, and binding obligation enforceable against
it in accordance with this Agreement’s terms, except as the same may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium or other laws relating to or affecting creditors’ rights generally and by general equity principles, including
judicial principles affecting the availability of injunction and specific performance.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-58	 

     

    

 

(c)          No
Conflicts. 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 and by which it may be bound.

 

(d)          All
Consents and Approvals Obtained. Except with respect to any consent required from Lonza or Sanofi, (i) all necessary consents,
approvals and authorizations of, and (ii) all notices to, and filings by such Party with, all governmental authorities and other
persons or entities required to be obtained or provided by such Party in connection with the execution, delivery and performance
of this Agreement have been obtained and provided, except for those government approvals, if any, not required at the time of execution
of this Agreement.

 

(e)          Compliance
with Law. It will at all times comply with Applicable Laws in all material respects. Neither such Party, nor any of its employees,
officers, subcontractors, or consultants who have rendered services relating to the Licensed Products: (i) has ever been debarred
or is subject to debarment or convicted of a crime for which an entity or person could be debarred by the FDA (or subject to a
similar sanction of a Regulatory Authority) or (ii) has ever been under indictment for a crime for which a person or entity could
be so debarred.

 

12.2         KHK
Representations and Warranties. KHK represents and warrants to Medgenics that as of the Effective Date:

 

(a)          KHK
Controls the KHK Patent Rights existing as of the Effective Date and is entitled to grant the rights and licenses specified herein.
The KHK Technology existing as of the Effective Date constitute all of the Patent Rights, Know-How and Inventions Controlled by
KHK as of the Effective Date that are necessary or useful to Develop, Manufacture and Commercialize the Licensed Product. KHK has
not previously assigned, transferred, conveyed or otherwise encumbered its right, title and interest in the KHK Technology in a
manner that conflicts with any rights granted to Medgenics hereunder.

 

(b)          To
the knowledge of KHK, there is no actual or threatened infringement of the KHK Patent Rights in the Field by any Third Party that
would adversely affect Medgenics’ rights under this Agreement.

 

(c)          To
the knowledge of KHK, the KHK Patent Rights existing as of the Effective Date are subsisting and are not invalid or unenforceable,
in whole or in part; there are no claims, judgments or settlements against or amounts with respect thereto owed by KHK or any of
its Affiliates relating to the KHK Patent Rights; and no claim or litigation has been brought or threatened by any Third Party
alleging, and KHK is not aware of any reasonable basis for a claim alleging that (i) the KHK Patent Rights are invalid or
unenforceable, (ii) the KHK Patent Rights or the licensing or exploiting of the KHK Patent Rights violates, infringes or otherwise
conflicts or interferes with any intellectual property or proprietary right of any Third Party, or (iii) any Third Party other
than a KHK Licensor has any right, title, or interest in, to, and under any KHK Patent Rights.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-59	 

     

    

 

(d)          To
the knowledge of KHK, KHK is not in default, and to KHK’s knowledge, none of the KHK Licensors is in default, with respect
to a material obligation under, and neither such party has claimed or has grounds upon which to claim that the other party is in
default with respect to a material obligation under, any KHK In-Licenses, and KHK has not waived or allowed to lapse any of its
rights under any KHK In-Licenses, and no such rights have lapsed or otherwise expired or been terminated.

 

(e)          There
are no claims, judgments or settlements against or owed by KHK or its Affiliates or pending or threatened claims or litigation
relating to the KHK Technology.

 

12.3         KHK
Covenants. KHK covenants that during the Term:

 

(a)          KHK
will use Commercially Reasonable Efforts to fulfill its obligations under the KHK In-Licenses to the extent such obligations have
not been delegated to Medgenics and to the extent that failure to do so would materially adversely affect Medgenics or its rights
hereunder.

 

(b)          KHK
will not assign, transfer, convey or otherwise encumber its right, title and interest in the KHK Technology in a manner that conflicts
with any rights granted to Medgenics hereunder.

 

(c)          KHK
will not enter into any subsequent agreement with any KHK Licensor that modifies or amends any KHK In-Licenses in any way that
would materially adversely affect Medgenics’ rights or economic interest under this Agreement without Medgenics’ prior
written consent.

 

(d)          KHK
will not terminate any KHK In-Licenses in whole or in part, directly or indirectly, without Medgenics’ prior written consent
if such termination would materially affect Medgenics’ license granted hereunder; for clarity KHK may (i) terminate
any KHK In-Licenses by acquiring all of the intellectual property licensed thereunder, or (ii) terminate its obligation to
make royalty and milestone payments by making a lump-sum payment, and KHK will promptly notify Medgenics after the occurrence of
each such event.

 

(e)          KHK
will furnish Medgenics with copies of all notices received by KHK relating to any alleged breach or default by KHK under any KHK
In-Licenses within ***** after KHK’s receipt thereof and, if KHK cannot or chooses not to cure or otherwise resolve any such
alleged breach or default, KHK will so notify Medgenics within ***** thereafter.

 

12.4         Medgenics
Representations and Warranties. Medgenics represents and warrants to KHK that as of the Effective Date:

 

(a)          Medgenics
Controls the Medgenics Patent Rights existing as of the Effective Date and is entitled to grant the rights and licenses specified
herein. The Medgenics Technology existing as of the Effective Date constitute all of the Patent Rights, Know-How and Inventions
Controlled by Medgenics as of the Effective Date that are necessary or useful to Develop, Manufacture and Commercialize the Licensed
Product. Medgenics has not previously assigned, transferred, conveyed or otherwise encumbered its right, title and interest in
the Medgenics Technology in a manner that conflicts with any rights granted to KHK hereunder.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-60	 

     

    

 

(b)          To
the knowledge of Medgenics, there is no actual or threatened infringement of the Medgenics Patent Rights in the Field by any Third
Party that would adversely affect KHK’s rights under this Agreement.

 

(c)          To
the knowledge of Medgenics, the Medgenics Patent Rights existing as of the Effective Date are subsisting and are not invalid or
unenforceable, in whole or in part; there are no claims, judgments or settlements against or amounts with respect thereto owed
by Medgenics or any of its Affiliates relating to the Medgenics Patent Rights; and no claim or litigation has been brought or threatened
by any Third Party alleging, and Medgenics is not aware of any reasonable basis for a claim alleging that (i) the Medgenics
Patent Rights are invalid or unenforceable, (ii) the Medgenics Patent Rights or the licensing or exploiting of the Medgenics
Patent Rights violates, infringes or otherwise conflicts or interferes with any intellectual property or proprietary right of any
Third Party or (iii) any Third Party other than the Medgenics Licensor has any right, title, or interest in, to, and under any
Medgenics Patent Rights.

 

(d)          To
the knowledge of Medgenics, the Development activities set forth in the initial Development Plan do not infringe any third party
intellectual property rights.

 

(e)          To
the knowledge of Medgenics, Medgenics is not in default, and to Medgenics’ knowledge, the Medgenics Licensor is not in default,
with respect to a material obligation under, and neither such party has claimed or has grounds upon which to claim that the other
party is in default with respect to a material obligation under, the Medgenics In-License, and Medgenics has not waived or allowed
to lapse any of its rights under any Medgenics In-License, and no such rights have lapsed or otherwise expired or been terminated.

 

(f)          There
are no claims, judgments or settlements against or owed by Medgenics or its Affiliates or pending or threatened claims or litigation
relating to the Medgenics Technology.

 

12.5         Medgenics
Covenants. Medgenics covenants that during the Term:

 

(a)          Medgenics
will not engage in any activities that use the KHK Technology in a manner that is outside the scope of the rights granted to it
hereunder.

 

(b)          All
of Medgenics’ activities related to its use of the KHK Technology, and the research, Development and Commercialization of
the Licensed Products, pursuant to this Agreement will comply with all Applicable Laws.

 

(c)          Medgenics
will use Commercially Reasonable Efforts to fulfill its obligations under the Medgenics In-License to the extent such obligations
have not been delegated to KHK and to the extent that failure to do so would materially adversely affect KHK or its rights hereunder.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-61	 

     

    

 

(d)          Medgenics
will not assign, transfer, convey or otherwise encumber its right, title and interest in the Medgenics Technology in a manner that
conflicts with any rights granted to KHK hereunder.

 

(e)          Medgenics
will not enter into any subsequent agreement with CHOP that modifies or amends the Medgenics In-License in any way that would materially
adversely affect KHK’s rights or economic interest under this Agreement without KHK’s prior written consent.

 

(f)          Medgenics
will not terminate the Medgenics In-License in whole or in part, directly or indirectly, without KHK’s prior written consent
if such termination would materially affect KHK’s license granted hereunder; for clarity Medgenics may (i) terminate
the Medgenics In-License by acquiring all of the intellectual property licensed thereunder, or (ii) terminate its obligation
to make royalty and milestone payments by making a lump-sum payment, and Medgenics will promptly notify KHK after the occurrence
of each such event.

 

(g)          Medgenics
will furnish KHK with copies of all notices received by Medgenics relating to any alleged breach or default by Medgenics under
the Medgenics In-License within ***** after Medgenics’ receipt thereof and, if Medgenics cannot or chooses not to cure or
otherwise resolve any such alleged breach or default, Medgenics will so notify KHK within ***** thereafter.

 

12.6         Mutual
Covenants. Each Party hereby covenants to the other Party that during the Term:

 

(a)          All
employees and officers of such Party or its Affiliates working under this Agreement will be under the obligation to assign all
right, title and interest in and to their Inventions, whether or not patentable, if any, to such Party as the sole owner thereof,
and under the obligation to maintain as confidential the Confidential Information of such Party.

 

(b)          Such
Party will perform its activities pursuant to this Agreement in compliance with good clinical practices and good manufacturing
practices, in each case as applicable under the Applicable Laws and regulations of the country and the state and local government
wherein such activities are conducted, and also with the standards in the pharmaceutical industry for the development and commercialization
of pharmaceutical products.

 

(c)          Such
Party will not employ (or, to its knowledge, use any contractor or consultant that employs) any individual or entity debarred by
the FDA (or subject to a similar sanction of a Regulatory Authority), or, to its knowledge, any individual who or entity which
is the subject of an FDA debarment investigation or proceeding (or similar proceeding of a Regulatory Authority), in the conduct
of its activities under this Agreement, and each contractor or consultant used by such Party in connection with the conduct of
clinical trials under this Agreement will be subject to a covenant that is the same or substantially the same as the foregoing
covenant.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-62	 

     

    

 

(d)          Such
Party will not practice or exploit the intellectual property licensed to such Party under this Agreement except to the extent expressly
permitted under the terms and conditions of this Agreement.

 

(e)          Such
Party will not grant any right or license to any Third Party relating to any of the intellectual property rights it Controls which
would conflict or interfere with any of the rights or licenses granted to the other Party hereunder.

 

12.7         Consequences
of Partial Termination of an In-License. In the event that a portion, but not all of KHK’s rights under the KHK
In-Licenses terminate, then Medgenics will owe no further obligations to KHK under this Agreement with respect to such terminated
rights. In the event that a portion, but not all of Medgenics’ rights under the Medgenics In-License terminate, then KHK
will owe no further obligations to Medgenics under this Agreement with respect to such terminated rights.

 

12.8         Warranty
Disclaimer. The Parties acknowledge and agree that nothing in this Agreement (including, without limitation, any exhibits
or attachments hereto) will be construed as representing an estimate or projection of either (a) the extent to which Licensed Products
will be successfully Developed or Commercialized or (b) the anticipated sales or the actual value of any Licensed Product. NEITHER
PARTY MAKES ANY REPRESENTATION OR WARRANTY, EITHER EXPRESS OR IMPLIED, THAT IT WILL BE ABLE TO SUCCESSFULLY DEVELOP OR COMMERCIALIZE
ANY LICENSED PRODUCT OR, IF COMMERCIALIZED, THAT IT WILL ACHIEVE ANY PARTICULAR SALES LEVEL OF SUCH LICENSED PRODUCT(S). EXCEPT
AS OTHERWISE EXPRESSLY PROVIDED IN THIS AGREEMENT, NEITHER PARTY MAKES ANY REPRESENTATION OR EXTENDS ANY WARRANTY OF ANY KIND,
EITHER EXPRESS OR IMPLIED, TO THE OTHER PARTY WITH RESPECT TO ANY TECHNOLOGY OR OTHER SUBJECT MATTER OF THIS AGREEMENT AND HEREBY
DISCLAIMS ALL IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT WITH RESPECT TO ANY AND
ALL OF THE FOREGOING. EACH PARTY HEREBY DISCLAIMS ANY REPRESENTATION OR WARRANTY THAT THE DEVELOPMENT, MANUFACTURE OR COMMERCIALIZATION
OF ANY LICENSED PRODUCT UNDER THIS AGREEMENT WILL BE SUCCESSFUL.

 

12.9         No
Consequential Damages. NEITHER PARTY HERETO WILL BE LIABLE FOR SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES ARISING
OUT OF THIS AGREEMENT OR THE EXERCISE OF ITS RIGHTS HEREUNDER, INCLUDING WITHOUT LIMITATION LOST PROFITS ARISING FROM OR RELATING
TO ANY BREACH OF THIS AGREEMENT, REGARDLESS OF ANY NOTICE OF SUCH DAMAGES. NOTHING IN THIS SECTION 12.9 IS INTENDED TO LIMIT
OR RESTRICT THE INDEMNIFICATION RIGHTS OR OBLIGATIONS OF EITHER PARTY OR TO LIMIT A PARTY’S LIABILITY FOR BREACHES OF ITS
OBLIGATION REGARDING CONFIDENTIALITY UNDER ARTICLE 10.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-63	 

     

    

 

12.10         Indemnification
and Insurance.

 

12.10.1         Indemnification
by Medgenics. Medgenics will indemnify, hold harmless, and defend KHK, its Affiliates, and their respective directors, officers,
employees and agents (“KHK Indemnitees”) from and against any and all damages, losses, liabilities, costs
(including without limitation reasonable legal expenses, costs of litigation and reasonable attorney’s fees) or judgments
of any kind (collectively, “Losses”) arising out of any Third Party claim, suit or proceeding, whether
for money or equitable relief (each, a “Third Party Claim”), arising out of or resulting from, directly
or indirectly, (a) any material breach of, or inaccuracy in, any representation or warranty made by Medgenics in this Agreement,
or any breach or violation of any covenant or agreement of Medgenics or a Related Party in or pursuant to this Agreement, (b) the
negligence or willful misconduct by or of Medgenics or any of its Related Parties, and their respective directors, officers, employees
and agents, (c) the practice by Medgenics or its Affiliate or sublicensee (including a sublicensed contract manufacturer) of any
license or sublicense granted to it under Article 7, and/or (d) the Development, Manufacturing and Commercialization of
Licensed Products (including product liability) by Medgenics or any of its Related Parties. This indemnification excludes Losses
arising out of Third Party Infringement Claims resulting from Medgenics’ exercise in accordance with the terms of this Agreement
of any intellectual property rights granted by KHK hereunder. Furthermore, Medgenics will have no obligation to indemnify the KHK
Indemnitees to the extent that the Losses arise out of or result from, directly or indirectly, any matter for which KHK must indemnify
Medgenics under this Agreement. In addition, Medgenics will indemnify, hold harmless, and defend (i) LJI and its directors, officers,
employees, and agents from and against any and all Losses (including costs of investigation and court costs) arising at any time
from or in any manner connected with, directly or indirectly, any activity of Medgenics involving the KHK Patent Rights solely
owned by LJI or any information furnished under the LJI Agreement, including the use, handling, storage, distribution, containment,
sale and/or disposition of any product (whether or not a Licensed Product), or provision of any service, related to or derived
directly or indirectly from or using any KHK Patent Rights solely owned by LJI; and (ii) the KHK Indemnitees from and against any
and all Losses arising out of any Third Party Claims related to, directly or indirectly, any activities performed by or on behalf
of Medgenics or Medgenics’ Third Party contract manufacturer in connection with the exercise of rights under the KHK Technology
licensed under the KHK In-License with Lonza, if, pursuant to Section 7.4.1, KHK sublicenses its rights under such KHK Technology
to Medgenics or Medgenics’ Third Party contract manufacturer for the Manufacture of Licensed Products by Medgenics or such
contract manufacturer.

 

12.10.2         Indemnification
by KHK. KHK will indemnify, hold harmless, and defend Medgenics, its Affiliates and their respective directors, officers, employees
and agents (“Medgenics Indemnitees”) from and against any and all Losses arising out of Third Party Claims
arising out of or resulting from, directly or indirectly, (a) any material breach of, or inaccuracy in, any representation or warranty
made by KHK in this Agreement, or any breach or violation of any covenant or agreement of KHK in or pursuant to this Agreement,
(b) the negligence or willful misconduct by or of KHK or any of its Related Parties, and their respective directors, officers,
employees and agents, (c) the practice by KHK or its Affiliate or sublicensee of any license or sublicense granted to it under
Article 7, and/or (d) the Development, Manufacturing and Commercialization of Licensed Products (including product liability)
by KHK or any of its Related Parties. This indemnification excludes Losses arising out of Third Party Infringement Claims resulting
from KHK’s exercise in accordance with the terms of this Agreement of any intellectual property rights granted by Medgenics
hereunder. Furthermore, KHK will have no obligation to indemnify the Medgenics Indemnitees to the extent that the Losses arise
out of or result from, directly or indirectly, any matter for which Medgenics must indemnify KHK. In addition, KHK shall be bound
by Section 12.2 of the Medgenics In-License in the capacity of “Licensee” in respect of KHK and its Related Parties’
activities under this Agreement and use of the Medgenics Technology licensed under the Medgenics In-License, and KHK agrees that
the Indemnitees (as defined in Section 12.2 of the Medgenics In-License) are intended third party beneficiaries of this sentence.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-64	 

     

    

 

12.10.3         Indemnification
Procedure. In the event of any such claim against any Medgenics Indemnitee or KHK Indemnitee (individually, an “Indemnitee”),
the indemnified Party will promptly notify the other Party in writing of the claim and the indemnifying Party will manage and control,
at its sole expense, the defense of the claim and its settlement. The Indemnitee will cooperate with the indemnifying Party and
may, at its option and expense, be represented in any such action or proceeding. The indemnifying Party will not be liable for
any settlements, litigation costs or expenses incurred by any Indemnitee without the indemnifying Party’s written authorization.
Notwithstanding the foregoing, if the indemnifying Party believes that any of the exceptions to its obligation of indemnification
of the Indemnitees set forth in Section 12.10.1 or Section 12.10.2 may apply, the indemnifying Party will promptly
notify the Indemnitees, which will then have the right to be represented in any such action or proceeding by separate counsel at
their expense; provided that the indemnifying Party will be responsible for payment of such expenses if the Indemnitees are ultimately
determined to be entitled to indemnification from the indemnifying Party. If the indemnifying Party does not assume the defense
of such claim as described in this Section 12.10.3, above, the Indemnitee may defend such claim but will have no obligation
to do so. The defending Party will not settle or compromise such claim without the prior written consent of the other Party, and
will not settle or compromise such claim in any manner which would have an adverse effect on such other Party’s interests,
without the prior written consent of such other Party, which consent, in each case, will not be unreasonably withheld, conditioned,
or delayed.

 

12.10.4         Insurance.
Each Party will use its Commercially Reasonable Efforts to maintain insurance, including product liability insurance, with respect
to its activities hereunder. Such insurance will be in such amounts and subject to such deductibles as the Parties may agree based
upon standards prevailing in the industry at the time in order to fulfill the obligation under Section 12.10.1 or 12.10.2,
including, but not limited to, the indemnification against any Losses involving any actual or alleged death or bodily injury arising
out of or resulting from the Development, Manufacture or Commercialization of any Licensed Product.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-65	 

     

    

 

Article
13.

MISCELLANEOUS PROVISIONS

 

13.1         Governing
Law. This Agreement will be construed and the respective rights of the Parties determined according to the substantive
laws of the State of New York, New York, U.S.A., notwithstanding the provisions governing conflict of laws of any jurisdiction
to the contrary.

 

13.2         Dispute
Resolution.

 

13.2.1           With
respect to any disputes between the Parties concerning this Agreement, the dispute will be submitted to escalating levels of Medgenics
and KHK senior management for review. If the dispute cannot be resolved despite such escalation, then the matter will be referred
to the Executive Officers to be resolved by negotiation in good faith as soon as is practicable but in no event later than thirty
(30) days after referral. Such resolution, if any, by the Executive Officers will be final and binding on the Parties. If the Executive
Officers are unable to resolve such dispute within such thirty (30) day period, each Party may submit such dispute for arbitration
pursuant to Section 13.2.2.

 

13.2.2           Arbitration.

 

(a)          If
any dispute will arise between KHK and Medgenics in connection with or relating to this Agreement, then such dispute will be resolved
exclusively by and through an arbitration proceeding to be conducted under the auspices of, and pursuant to, the Commercial Rules
of the International Chamber of Commerce (together with any successor organization thereto, the “ICC”)
in New York, New York, U.S.A. Such arbitration proceeding will be conducted in the English language applying the law provided in
Section 13.1 and in such an expedited manner as is then permitted by the ICC’s commercial arbitration rules. The Parties
also agree to take reasonable discovery, with reasonableness to be determined by the arbitrators. Each of the foregoing agreements
to arbitrate all disputes and the results, determinations, findings, judgments and awards rendered through such arbitration will
be final, non-appealable and legally binding on KHK and Medgenics and may be entered and enforced by any court or tribunal of competent
jurisdiction. Notwithstanding anything to the contrary in this Section 13.2, a Party may seek injunctive relief in any court
of competent jurisdiction.

 

(b)          Any
arbitration proceeding will be initiated by written notice from either KHK or Medgenics to the other Party. The arbitration will
be conducted before a panel of three (3) arbitrators. Each of KHK and Medgenics will have the right to select one (1) arbitrator.
The third arbitrator will be selected by the mutual agreement of the arbitrators appointed by the Parties. The Party initiating
the arbitration proceeding will appoint its arbitrator within ten (10) days following service of the demand for arbitration to
the other Party, who will in turn appoint its arbitrator within thirty (30) days of receiving service of the demand. The two appointed
arbitrators will agree upon an arbitrator within thirty (30) days of the date of the appointment by the parties of the second arbitrator.
If either Party or their appointees fail to appoint an arbitrator within the specified time period, the ICC will exercise its powers
pursuant to Article 9 of the ICC Rules of Arbitration to appoint such arbitrator. The ICC’s appointment will be binding on
the Parties. Each arbitrator will be an attorney in good standing in the Bar of New York and experienced in commercial disputes
involving pharmaceutical companies. Time is of the essence of this arbitration procedure, and KHK and Medgenics will instruct the
arbitrators to render their decision within ninety (90) days of the arbitration’s completion. The cost of the arbitration
(including, without limitation, reasonable attorneys’ fees, expenses and disbursements) will be borne as the arbitrators
will decide; otherwise such costs (including, without limitation, the prevailing Party’s reasonable attorneys’ and
accountants’ fees, expenses and disbursements) will be borne by the Party against which the judgment of the arbitrator is
to be enforced.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-66	 

     

    

 

13.3         Assignment.
This Agreement may not be assigned or otherwise transferred, nor may any right or obligation hereunder be assigned or transferred,
by either Party without the consent of the other Party. Notwithstanding the foregoing, (a) KHK may monetize the value of its payments
under this Agreement by assigning to a Third Party the right to receive payments and the right to receive payment reports from
Medgenics; provided that KHK gives thirty (30) days prior written notice to Medgenics, and (b) either Party may, without the other
Party’s consent, assign this Agreement and its rights and obligations hereunder in whole or in part to an Affiliate (but
subject to the consent of CHOP in respect of the Medgenics Technology licensed under the Medgenics In-License in the case of assignment
by KHK) or pursuant to a Change of Control (but subject to the consent of Sanofi, to the extent required under Applicable Law,
in respect of the KHK Technology licensed under the KHK In-License with Sanofi in the case of assignment by Medgenics). The assigning
Party will remain responsible for the performance by its assignee of this Agreement or any obligations hereunder so assigned to
such assignee.

 

13.4         Entire
Agreement; Amendments. This Agreement and the Schedules and Exhibits referred to in this Agreement constitute the entire
agreement between the Parties with respect to the subject matter hereof, and supersede all previous arrangements with respect to
the subject matter hereof, whether written or oral, except that Article 1 through 10 of the Clinical Development and Option Agreement
will govern with respect to matters occurring prior to the Effective Date. Any amendment or modification to this Agreement will
be made in writing signed by both Parties.

 

13.5         Notices.
Any consent or notice required to be given or made under this Agreement by one of the Parties to the other will be in writing and
(a) delivered by hand, (b) sent by internationally recognized overnight delivery service or (c) sent by facsimile transmission
and confirmed by sender by prepaid, registered or certified mail letter, and will be deemed to have been properly served to the
addressee upon receipt of such written communication, in any event to the following addresses:

 

	If to KHK:	
        Kyowa Hakko Kirin Co., Ltd.

        1-6-1, Otemachi

        Chiyoda-ku, Tokyo 100-8185

        Japan

        Attention: Director of Business Development
        Department

        Facsimile No.: +81-3-3282-0107

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-67	 

     

    

 

	with a copy to:	
        Kyowa Hakko Kirin Co., Ltd.

        1-6-1, Otemachi

        Chiyoda-ku, Tokyo 100-8185

        Japan

        Attention: Director of Legal Affairs Group,
        Legal and Intellectual Property Department

        Facsimile No.: +81-3-3282-0092

	 	 
	If to Medgenics:	
        Medgenics, Inc.

        435 Devon Park Drive, Bldg 700, Suite 715

        Wayne, PA 19087

        Attention: Chief Legal Officer

        Facsimile No.: +1 (610) 717-3390

	 	 
	with a copy to:	
        Pepper Hamilton LLP

        Two Logan Square

        18th & Arch Streets

        Philadelphia, Pennsylvania 19103-2799

        Attention: Brian M. Katz

        Facsimile No.: +1 (215) 981-4750

 

or to such other address as the Party to
whom notice is to be given may have furnished to the other Party in writing in accordance herewith. Any such notice will be deemed
to have been given: (a)  if personally delivered, when delivered; (b) if sent by internationally-recognized overnight courier,
on the Business Day of the sender during which the sender delivers the notice to the courier; or (c) if sent by facsimile,
when all pages of the notice are successfully transmitted (as shown by a report generated by the sender’s facsimile machine)
during a Business Day of the sender.

 

13.6         Force
Majeure. The failure of either Party to timely perform any obligation under this Agreement by reason of epidemic, earthquake,
riot, civil commotion, fire, act of God, war, terrorist act, strike, flood, or governmental act or restriction, or other cause
that is beyond the reasonable control of such Party, will not be deemed to be a breach of this Agreement, but will be excused to
the extent and for the duration of such cause, and the affected Party will provide the other Party with full particulars thereof
as soon as it becomes aware of the same (including its best estimate of the likely extent and duration of the interference with
its activities) and will use its Commercially Reasonable Efforts to avoid or remove such cause, and will perform its obligation(s)
with the utmost dispatch when the cause is removed. If the performance of any such obligation under this Agreement is delayed owing
to such a force majeure for any continuous period of more than one hundred eighty (180) days, the Parties will consult with respect
to an equitable solution, including the possibility of the mutual termination of this Agreement.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-68	 

     

    

 

13.7         Compliance
with Export Regulations. Neither Party will export any technology licensed to it by the other Party under this Agreement
except in compliance with U.S. export laws and regulations.

 

13.8         Independent
Contractors. It is understood and agreed that the relationship between the Parties is that of independent contractors
and that nothing in this Agreement will be construed as authorization for either KHK or Medgenics to act as agent for the other.
Nothing herein contained will be deemed to create an employment, agency, joint venture or partnership relationship between the
Parties or any of their agents or employees for any purpose, including tax purposes, or to create any other legal arrangement that
would impose liability upon one Party for the act or failure to act of the other Party. Neither Party will have any express or
implied power to enter into any contracts or commitments or to incur any liabilities in the name of, or on behalf of, the other
Party, or to bind the other Party in any respect whatsoever.

 

13.9         Further
Assurances. Each Party agrees to execute, acknowledge and/or deliver such further instruments, and to do all other acts,
as may be necessary or appropriate in order to carry out the purposes and intent of this Agreement.

 

13.10         No
Strict Construction. This Agreement has been prepared jointly and will not be strictly construed against either Party.

 

13.11         Performance
by Affiliates. Each Party recognizes that the other Party may perform some or all of its obligations under this Agreement
through Affiliates to the extent permitted under this Agreement; provided, however, that such other Party will remain
responsible for the performance by its Affiliates as if such obligations were performed by such other Party.

 

13.12         Construction.
Except where the context otherwise requires, wherever used, the singular will include the plural, the plural the singular, and
the use of any gender will be applicable to all genders. The captions of this Agreement are for convenience of reference only and
in no way define, describe, extend or limit the scope or intent of this Agreement or the intent of any provision contained in this
Agreement. The term “including” as used herein means including, without limiting the generality of any description
that precedes such term, and will be deemed to be followed by the phrase “but not limited to,” “without limitation”
or words of similar import regardless of whether such words are actually written there (and drawing no implication from the actual
inclusion of such phrase in some instances after the word “including” but not others). References to “Article”,
“Articles”, “Section”, Sections”, “Exhibit” or “Exhibits” are references
to the numbered Article(s), Section(s), or lettered Exhibit(s) of this Agreement, unless expressly stated otherwise. Except where
the context otherwise requires, (a) references to a particular law, rule or regulation mean such law, rule or regulation as
in effect as of the relevant time, including all rules and regulations thereunder and any successor law, rule or regulation in
effect as of the relevant time, and including the then-current amendments thereto; (b) the word “or” has the inclusive
meaning that is typically associated with the phrase “and/or”; (c) whenever this Agreement refers to a number of days,
such number will refer to calendar days unless Business Days are specified, and if a period of time is specified and dates from
a given day or Business Day, or the day or Business Day of an act or event, it is to be calculated exclusive of that day or Business
Day; (d) references to a particular person or entity include such person’s or entity’s successors and assigns to the
extent not prohibited by this Agreement; (e) a capitalized term not defined herein but reflecting a different part of speech than
a capitalized term which is defined herein will be interpreted in a correlative manner; and (f) the words “hereof,”
“herein,” “hereby” and derivative or similar words refer to this Agreement (including any Exhibits).

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-69	 

     

    

 

13.13         No
Implied Waivers; Rights Cumulative. No failure on the part of KHK or Medgenics to exercise, and no delay in exercising,
any right, power, remedy or privilege under this Agreement, or provided by statute or at law or in equity or otherwise, will impair,
prejudice or constitute a waiver of any such right, power, remedy or privilege or be construed as a waiver of any breach of this
Agreement or as an acquiescence therein, nor will any single or partial exercise of any such right, power, remedy or privilege
preclude any other or further exercise thereof or the exercise of any other right, power, remedy or privilege.

 

13.14         Severability.
If any provision hereof should be held invalid, illegal or unenforceable in any respect in any jurisdiction, the Parties will substitute,
by mutual consent, valid provisions for such invalid, illegal or unenforceable provisions, which valid provisions in their economic
effect are sufficiently similar to the invalid, illegal or unenforceable provisions that it can be reasonably assumed that the
Parties would have entered into this Agreement with such valid provisions. In case such valid provisions cannot be agreed upon,
the invalidity, illegality or unenforceability of one (1) or several provisions of this Agreement will not affect the validity
of this Agreement as a whole, unless the invalid, illegal or unenforceable provisions are of such essential importance to this
Agreement that it is to be reasonably assumed that the Parties would not have entered into this Agreement without the invalid,
illegal or unenforceable provisions.

 

13.15         No
Third Party Beneficiaries. Except as expressly set forth in Section 12.10.2, no person or entity other than Medgenics,
KHK and their respective Affiliates and permitted assignees hereunder will be deemed an intended beneficiary hereunder or have
any right to enforce any obligation of this Agreement.

 

[Remainder of Page Left Blank Intentionally.
Schedules Follow.]

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-70	 

     

    

 

Schedule
4.2.1

 

*****

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-71	 

     

    

 

Schedule 1.16

 

Commercialization
Costs

 

Examples of Commercialization Costs

 

Commercialization Costs will include, but
will not be limited to, the following, in each case attributable to, or reasonably allocable to, Commercialization of Licensed
Products in the Field in the Territory:

 

Detailing costs - costs associated
with interactive face-to-face visits by a sales representative with a medical professional who has prescribing authority or is
able to influence prescribing decisions, within the target audience during which approved uses, safety, effectiveness, contraindications,
side effects, warnings or other relevant characteristics of a pharmaceutical product are discussed in an effort to increase prescribing
preferences of a pharmaceutical product for its approved uses.

 

Distribution costs - costs identifiable
to the distribution of a Licensed Product to a customer (and not otherwise deducted from Net Sales), including customer and specialty
pharmacy services (including costs associated with establishing and running customer call centers), collection of data about sales
to hospitals, clinics and other customers, order entry, billing, shipping, logistics, warehousing, product insurance, freight not
paid by customers, credit and collection and other like activities the costs of which are includable in “distribution costs”
in accordance with the Accounting Standards.

 

Early Access Program or EAP costs
– costs associated with any program to provide patients with products free of charge. Early access programs include treatment
INDs / protocols and compassionate use programs, as applicable. For clarity, an EAP with respect to a Licensed Product may continue
to be performed following Regulatory Approval of a Licensed Product and costs may continue to be incurred in accordance with the
performance of such EAP after Regulatory Approval. 

 

Patient Assistance Programs –
costs associated with establishing and administering patient assistance programs.

 

Health Care Reform fees - costs
for fees paid to the U.S. government as defined in the Patient Protection and Affordable Care Act and similar taxes and governmental
fees.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-72	 

     

    

 

Commercial Operations Costs – costs of the commercial
operations team supporting Commercialization of the Licensed Products in the Field, including, without limitation:

 

(a)          Marketing
Expenses, which includes costs identifiable to the advertising, promotion and marketing of Licensed Products
in the Field, and related professional education;

 

(b)          Advertising,
which includes costs associated with media costs, direct mails, production expenses, agency fees, and medical congresses and meetings;

 

(c)          Promotion,
which includes costs associated with professional samples, professional literature, promotional material, patient aids, detailing
aids, reimbursement of patient assistance programs, public relations and communications expenses, web and social media expenses,
patient advocacy support, development of information and data for national accounts, managed care organizations and group purchasing
organizations;

 

(d)          Market
Research, which includes costs associated with market information, focus groups, and market research professional staff and
related out-of-pocket costs such as travel, business meals, and training;

 

(e)          Marketing
Management, which includes the costs of product management and sales promotion management compensation and departmental
expenses as well as costs associated with developing overall sales and marketing strategies and planning;

 

(f)          Reimbursement/Access
Services, which includes costs incurred to manage reimbursement programs, marketing costs (educational material) as well as
coupon or co-pay programs;

 

(g)          Health
Policy/Advocacy, which includes costs associated with advocacy as well as any specific policy lobbying and trade and government
relations related expenses; and

 

(h)          Selling
Support, which includes costs associated with logistics and document support and the operation of the sales/medical science
liaison team such as meeting planning.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-73	 

     

    

 

Medical Affairs Expenses - costs
with respect to: medical affairs and other activities associated with clinical studies conducted after Regulatory Approval in the
Territory (to the extent not otherwise included within Development Costs); medical and scientific information and response to external
inquiries or complaints; pharmacovigilance, investigator initiated research if not covered in the Phase V Clinical Trials, costs
of establishing and maintaining patient registries, medical education, Health Economics and Outcomes Research (HECOR, HEMAR), speaker
programs, advisory boards, educational grants and fellowships, drug safety, government affairs (including costs associated with
compliance with the Sunshine Act and other similar government regulation); and field-based medical science liaisons, medical affairs
clinical trial management, MD’s in field (separate from medical science liaisons), publications, medical communications and
field medical education.

 

Recall Expenses – costs, to
the extent not otherwise covered by KHK’s indemnity obligations, associated with notification, retrieval and return
of Licensed Products in the Field in the Territory, destruction of such returned Licensed Products in the Field, and distribution
of the replacement Licensed Products in the Field.

 

Selling Costs - costs directly attributable
to selling Licensed Product in the Field, including the FTE Costs for sales representatives/medical science liaisons and first
line sales managers, exhibits at shows or conventions including samples, charges for space, sales aids and brochures, sales meetings,
consultants, call reporting and other Third Party monitoring/tracking services, automobile allowance, meal expenses, travel/housing
for meetings, costs of computer and other equipment of sales representatives/medical science liaisons and other incidental expenses
incurred by sales representatives/medical science liaisons in respect of selling the Licensed Product in the Field.

 

Other Commercialization Costs - any
other costs attributable or allocable to Commercialization of Licensed Products in the Field in the Profit Share Territory in accordance
with Accounting Standards, to the extent not included in one of the other categories or definitions of costs under this Exhibit
1.16.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-74	 

     

    

 

Schedule 1.37

 

FTE
Rates

 

1.          The
following table sets forth the FTE Rates for Medgenics FTEs:

 

	*****	 	*****
	*****	 	*****
	*****	 	*****
	*****	 	*****
	*****	 	*****
	*****	 	*****
	*****	 	*****

 

2.          The
following table sets forth the FTE Rates for KHK FTEs:

 

	*****	 	*****
	*****	 	*****
	*****	 	*****
	*****	 	*****
	*****	 	*****
	*****	 	*****
	*****	 	*****

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-75	 

     

    

 

Schedule 1.42

 

KHK
IN-LICENSES

 

License Agreement between La Jolla Institute
for Allergy and Immunology and Kyowa Hakko Kirin Co., Ltd. *****. This is the LJI Agreement referred to in Section 1.52.

 

*****Agreement between Lonza Sales AG and Kyowa Hakko Kirin
Co., Ltd. *****.

 

*****Agreement between Bristol-Myers Squibb Company and Kyowa
Hakko Kirin Co., Ltd. *****.

 

Letters between Kyowa Hakko Kirin Co., Ltd. and Sanofi *****,
and sublicensing of rights to Medgenics.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-76	 

     

    

 

Schedule 1.46

 

KHK
PATENT RIGHTS

 

	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****
	 	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****	 	*****

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-77	 

     

    

 

Schedule 1.61

 

MEDGENICS
IN-LICENSE

 

License Agreement between The Children’s
Hospital of Philadelphia and Medgenics Medical Israel Ltd. dated November 12, 2014.

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-78	 

     

    

 

Schedule 1.61

 

MEDGENICS
PATENT RIGHTS

 

	*****	 	*****	 	*****	 	*****	 	*****
	*****	 	 	 	 	 	 	 	 
	*****	 	*****	 	*****	 	*****	 	*****
	*****	 	*****	 	*****	 	*****	 	*****
	*****	 	*****	 	*****	 	*****	 	*****
	*****	 	*****	 	*****	 	*****	 	*****
	*****	 	*****	 	*****	 	*****	 	*****
	*****	 	*****	 	*****	 	*****	 	*****
	*****	 	*****	 	*****	 	*****	 	*****

 

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-79	 

     

    

 

Schedule 4.2.1

 

INITIAL
DEVELOPMENT PLAN

 

*****

***** Confidential Information
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to this omitted information.

 

    	 	C-80	 

     

    

 

EXHIBIT D

PRESS RELEASE

 

See Attached

 

    	 	D-1	 

     

    

 

 

 

News Release

 

Medgenics Obtains Rights to First-in-Class
Biologic for Severe Pediatric Onset IBD

 

		·	Collaboration
                                         with Kyowa Hakko Kirin to develop anti-LIGHT monoclonal antibody

 

		·	Second
                                         program from research collaboration with The Children’s Hospital of Philadelphia
                                         (CHOP) Center for Applied Genomics (CAG)

 

		·	Data
                                         from signal finding study in Severe Pediatric Onset Inflammatory Bowel Disease patients
                                         expected in first half 2017

 

PHILADELPHIA, PA – (Marketwired)
– June 6, 2016 — Medgenics, Inc. (NYSE: MDGN) today announced that it has entered into a collaboration with Kyowa
Hakko Kirin Co., Ltd. (Kyowa Hakko Kirin) for the development and commercialization of Kyowa Hakko Kirin’s first-in-class
anti-LIGHT monoclonal antibody. Kyowa Hakko Kirin is a leading biopharmaceutical company in Japan, known for its antibody-related
cutting-edge technologies to discover and develop innovative new drugs. The anti-LIGHT monoclonal antibody is a Phase 2-ready
biologic with available clinical supply.

 

Medgenics plans to initiate a signal finding
study testing the drug in Severe Pediatric Onset Inflammatory Bowel Disease (IBD) in collaboration with Dr. Robert Baldassano,
Director of the Center for Pediatric IBD at The Children’s Hospital of Philadelphia (CHOP). “IBD is a distinct and
severe genetic disease in children, with very limited treatment options available,” said Dr. Baldassano. “I am pleased
to see Medgenics and Kyowa Hakko Kirin come together to advance the development of this program for children with this severe,
genetically driven disease.”

 

“We are pleased to establish this collaboration
with a premier biologics partner in Kyowa Hakko Kirin,” said Mike Cola, Chief Executive Officer of Medgenics. “This
novel opportunity is a further example of the capability of the Medgenics’ genomic medicine platform to accelerate impactful
therapies into the clinic.”

 

Upon completion of the signal finding study
in Severe Pediatric Onset IBD, the Company will have an option to license rights to develop the program. Following exercise of
the option, Medgenics will make a one-time, upfront payment in the low single-digit millions to Kyowa Hakko Kirin. Kyowa Hakko
Kirin will then select one of two potential collaboration structures: a co-development/co-commercialization partnership or a licensing
arrangement. Medgenics will have commercialization rights in the United States and Canada in both structures, and will also add
commercialization rights in Europe if Kyowa Hakko Kirin selects the licensing arrangement. Kyowa Hakko Kirin will have commercialization
rights in the rest of the world under both structures, as well as Europe in the co-development/co-commercialization structure.
Terms for both structures have been pre-agreed and include a combination of royalties and profit-sharing.

 

     

     

    

 

“We are excited to enter an agreement
with Medgenics in this new era of genomic medicine,” said Mr. Yoichi Sato, Director of the Board, Managing Executive Officer,
Vice president, Head of Research and Development Division of Kyowa Hakko Kirin. “We believe in the potential of the anti-LIGHT
antibody and we are looking forward to initiating development activities with our new partner in order to provide better treatment
options for pediatric IBD patients.”

 

“This transaction with Kyowa Hakko Kirin
and Medgenics exemplifies our mission at CHOP to bring science from bench to bedside,” stated Bryan Wolf, MD, PhD, Chief
Scientific Officer at CHOP. “The deal highlights CHOP’s unique genetic discoveries and our ability to collaborate
with industry to develop novel therapies for children with rare diseases.”

 

Severe Pediatric Onset IBD is a chronic orphan
disease of children characterized by chronic relapsing inflammation of the gastrointestinal tract. It often leads to malnutrition,
growth failure, bowel obstruction, and the need for intravenous feeding and surgeries, including colectomy and colostomy/ileostomy.
IBD in children is frequently more aggressive and harder to treat than the adult form of the disease. Although the exact cause
remains unknown, many pediatric IBD patients are genetically predisposed to the disease. Recent research by Dr. Hakon Hakonarson
and his colleagues at the CAG has shown that many children with pediatric IBD and other autoimmune diseases have loss of function
mutations in a specific immune regulatory protein, decoy receptor 3 (DcR3).

 

A critical function of DcR3 is to effectively
dampen inflammation by binding pro-inflammatory proteins such as LIGHT. LIGHT has been shown to be upregulated in the intestines
of patients with IBD. Although direct replacement of DcR3 is not feasible as a therapeutic, Medgenics identified the anti-LIGHT
monoclonal antibody developed by Kyowa Hakko Kirin, as a potential therapy for these patients. By binding excessive LIGHT, the
anti-LIGHT monoclonal antibody may substitute for DcR3 in affected pediatric IBD patients and help to control inflammation.

 

Medgenics
believes that the anti-LIGHT monoclonal antibody has the potential to become an important new, first-in-class biological therapy
for severe pediatric onset IBD and other pediatric autoimmune diseases, particularly for patients who fail to respond to, or develop
resistance to, anti-TNFa
antibodies. More than 50,000 pediatric patients in the US are affected by IBD, with approximately 15,000 – 16,000 of those
patients failing anti-TNFa
therapy. It is anticipated that 2,000 – 3,000 of these pediatric patients will be eligible for treatment with the anti-LIGHT
monoclonal antibody. 

 

Conference Call and Webcast

 

Medgenics will host a conference call and live audio webcast on
Monday, June 6, 2016 at 11:00 a.m. EDT to discuss the transaction.

 

In order to participate in the conference call, please dial (888)
430-8694 (domestic) or (719) 325-2464 (international). The conference ID number is 2641940.

 

The live webcast can be accessed under “Events” in
the Investors section of the Company’s website at www.medgenics.com or you may use the link: https://www.webcaster4.com/Webcast/Page/1395/15455

 

    	 	2	 

     

    

 

A replay of the call will be available two hours after the end
of the conference on June 6, 2016 through August 9, 2016. To access the replay, please dial 888-203-1112 (domestic) or 719-457-0820
(international) and reference the conference ID number: 2641940.

 

The archived webcast will be available for 90 days in the Investor
section of Medgenics’ website at www.medgenics.com.

 

About Severe Pediatric Onset Inflammatory
Bowel Disease

 

Inflammatory Bowel Disease (IBD) is a disease
that causes chronic relapsing inflammation of the intestines. There are two major types of IBD; Ulcerative Colitis which affects
the colon, and Crohn’s Disease which effects the entire GI tract. Both diseases are treated with a variety of anti-inflammatory
drugs, including steroids, antibiotics, and biologics. Disease etiology is not well understood, but it is believed that both genetics
and environmental factors play a major role at various stages and ages of disease onset. IBD affects people of all ages with approximately
2.0 million people affected by the disease in the United States and Europe. The pediatric form of the disease is less common but
frequently more severe, affecting more than 50,000 children in the USA. The incidence appears to be increasing. The disease in
children is often more aggressive than in adults, more frequently leading to complications, hospitalization, surgery and even
death. In children, IBD can also impact physical and emotional growth, interfere with school and social development.

 

About the anti-LIGHT Monoclonal Antibody

 

The anti-LIGHT monoclonal antibody is a Phase
2-ready first in class human monoclonal antibody offering a novel molecular approach to treating IBD and potentially other autoimmune
diseases. The anti-LIGHT monoclonal antibody binds the pro-inflammatory cytokine, LIGHT (ligand for herpesvirus entry mediator),
which is believed to be a major contributor to the chronic relapsing inflammation of IBD and other autoimmune diseases. Normally
LIGHT is bound to, and down-regulated by DcR3. In many pediatric patients with IBD and other autoimmune diseases, genetic mutations
result in a loss of function of DcR3, allowing LIGHT and other pro-inflammatory molecules to chronically intensify inflammation,
which in turn can lead to severe illness and complications. The anti-LIGHT monoclonal antibody can bind LIGHT and may be able
to replace some of the function of DcR3 in these children. Medgenics has an option to exclusively license the composition of matter
patents, and the Company expects to establish new biological product exclusivity for 12 years from the date of FDA approval of
the antibody in the U.S., and at least 10 years from the date of first authorization in Europe.

 

About Medgenics

 

Medgenics is dedicated to unlocking the
potential of genomic medicine to identify and treat patients with life-altering conditions. Its efforts, including its internal
research and development and ongoing sponsored research and licensing agreements with a well-respected pediatric academic medical
center, give Medgenics the ability to focus on the underlying genetic pathway of pediatric diseases with the goal of
finding therapeutic solutions for subpopulations of both children and adults living with rare and other difficult-to-treat diseases.
Medgenics is also the developer of TARGTTM (Transduced Autologous Restorative Gene Therapy), a proprietary gene therapy
platform. For more information, visit the Company's website at www.medgenics.com.

 

    	 	3	 

     

    

 

About Kyowa Hakko Kirin 

Kyowa Hakko Kirin is a leading biopharmaceutical
company in Japan focusing on its core business areas of oncology, nephrology, and immunology/allergy. Kyowa Hakko Kirin leverages
antibody-related cutting-edge technologies to discover and develop innovative new drugs aiming to become a global specialty pharmaceutical
company which contributes to the health and well-being of people around the world. For more information, please visit www.kyowa-kirin.com.

 

Locust Walk served as a transaction advisor to Medgenics.

 

Forward-looking Statements

 

This release contains forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and as that
term is defined in the Private Securities Litigation Reform Act of 1995, which include all statements other than statements of
historical fact, including (without limitation) those regarding the Company's financial position, its development and business
strategy, its product candidates and the plans and objectives of management for future operations. The Company intends that such
forward-looking statements be subject to the safe harbors created by such laws. Forward-looking statements are sometimes identified
by their use of the terms and phrases such as "estimate," "project," "intend," "forecast,"
"anticipate," "plan," "planning,” "expect," "believe," "will," "will
likely," "should," "could," "would," "may" or the negative of such terms and other
comparable terminology. All such forward-looking statements are based on current expectations and are subject to risks and uncertainties.
Should any of these risks or uncertainties materialize, or should any of the Company's assumptions prove incorrect, actual results
may differ materially from those included within these forward-looking statements. Accordingly, no undue reliance should be placed
on these forward-looking statements, which speak only as of the date made. The Company expressly disclaims any obligation or undertaking
to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's
expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.
As a result of these factors, the events described in the forward-looking statements contained in this release may not occur.

 

Contacts:

 

Medgenics

Brian Piper

240-899-5554

brian.piper@medgenics.com

 

Westwicke Partners

Chris Brinzey

339-970-2843

chris.brinzey@westwicke.com

 

    	 	4	 

     

    

  

 

Kyowa Hakko Kirin Entered into an Agreement with
Medgenics for the Clinical Development of anti-LIGHT Monoclonal Antibody 

 

Tokyo, Japan, June 6th, 2016
— Kyowa Hakko Kirin Co., Ltd. (Tokyo 4151; President and CEO: Nobuo Hanai, “Kyowa Hakko Kirin”) announced that
it entered into an agreement with Medgenics, Inc. (NYSE: MDGN, “Medgenics”) for the clinical development of Kyowa Hakko
Kirin’s first-in-class anti-LIGHT monoclonal antibody for Severe Pediatric Onset Inflammatory Bowel Disease (IBD).

 

This anti-LIGHT monoclonal antibody
is a Phase 2-ready first in class human monoclonal antibody offering a novel molecular approach to treating IBD and potentially
other autoimmune diseases. The antibody binds the pro-inflammatory cytokine, LIGHT (ligand for herpesvirus entry mediator), which
is believed to be a major contributor to the chronic relapsing inflammation of IBD and other autoimmune diseases.

 

Under the terms of
this agreement, Medgenics plans to initiate a signal finding study testing the drug in Severe Pediatric Onset IBD. Medgenics has
an option to license rights to the development program. Upon exercising the option following completion of the signal finding study,
Medgenics will make a one-time upfront payment to Kyowa Hakko Kirin in the low single-digit millions (USD). Kyowa Hakko Kirin will
then select one of two potential collaboration structures: a co-development/co-commercialization partnership or a licensing arrangement.
Medgenics will have commercialization rights in the United States and Canada in both structures, and will also add commercialization
rights in Europe if Kyowa Hakko Kirin selects the licensing arrangement. Kyowa Hakko Kirin will have commercialization rights in
the rest of the world under both structures, as well as Europe in the co-development/co-commercializaiton structure. Terms for
both structures have been pre-agreed and include a combination of royalties and profit-sharing.

 

“We are excited to enter an agreement
with Medgenics in this new era of genomic medicine,” said Yoichi Sato, Director of the Board, Managing Executive Officer,
Vice president, Head of Research and Development Division of Kyowa Hakko Kirin. “We believe in the potential of the anti-LIGHT
antibody and we are looking forward to initiating development activities with our new partner in order to provide better treatment
options for pediatric IBD patients.”

 

We are pleased to establish this collaboration
with a premier biologics partner in Kyowa Hakko Kirin,” said Mike Cola, Chief Executive Officer of Medgenics. “This
novel opportunity is a further example of the capability of the Medgenics’ genomic medicine platform to accelerate impactful
therapies into the clinic.”

 

The Kyowa Hakko Kirin Group companies strive to contribute to
the health and well-being of people around the world by creating new value through the pursuit of advances in life sciences and
technologies.

 

     

     

    

 

 

 

About Severe Pediatric Onset Inflammatory Bowel
Disease (IBD) 

Inflammatory Bowel Disease (IBD) is a disease
that causes chronic relapsing inflammation of the intestines. There are two major types of IBD; Ulcerative Colitis which affects
the colon, and Crohn’s Disease which effects the entire GI tract. Both diseases are treated with a variety of anti-inflammatory
drugs, including steroids, antibiotics, and biologics. Disease etiology is not well understood, but it is believed that both genetics
and environmental factors play a major role at various stages and ages of disease onset. IBD affects people of all ages with approximately
2.0 million people affected by the disease in the United States and Europe. The pediatric form of the disease is less common but
frequently more severe, affecting more than 50,000 children in the USA. The incidence appears to be increasing. The disease in
children is often more aggressive than in adults, more frequently leading to complications, hospitalization, surgery and even death.
In children, IBD can also impact physical and emotional growth, interfere with school and social development.

 

About Medgenics 

Medgenics is dedicated to unlocking the
potential of genomic medicine to identify and treat patients with life-altering conditions. Its efforts, including its internal
research and development and ongoing sponsored research and licensing agreements with a well-respected pediatric academic medical
center, give Medgenics the ability to focus on the underlying genetic pathway of pediatric diseases with the goal of finding therapeutic
solutions for subpopulations of both children and adults living with rare and other difficult-to-treat diseases. Medgenics is also
the developer of TARGTTM (Transduced Autologous Restorative Gene Therapy), a proprietary gene therapy platform. For more information,
visit the Company's website at www.medgenics.com.Exhibit

EXHIBIT 10.5
ITT Annual Incentive Plan For Executive Officers 
(amended and restated as of May 16, 2016)
1.    Purpose
The purpose of this ITT Annual Incentive Plan for Executive Officers (the “Incentive Plan”) is to provide incentive compensation in the form of a cash award to executive officers of ITT Inc. (the “Company”) for achieving specific pre-established performance objectives and to continue to motivate participating executive officers to achieve their business goals, while tying a portion of their compensation to measures affecting shareholder value. The Incentive Plan seeks to enable the Company to continue to be competitive in its ability to attract and retain executive officers of the highest caliber.
It is intended that compensation payable under the Incentive Plan will qualify as “performance-based compensation,” within the meaning of Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”) and regulations promulgated thereunder, if such qualification is desired.
2.    Plan Administration
The Compensation and Personnel Committee (the “Committee”) of the Board of Directors (the “Board”) of the Company, as constituted by the Board from time to time, shall be comprised completely of “outside directors” as defined under Section 162(m) of the Code.
The Committee shall have full power and authority to administer, construe and interpret the provisions of the Incentive Plan and to adopt and amend administrative rules and regulations, agreements, guidelines and instruments for the administration of the Incentive Plan and for the conduct of its business as the Committee considers appropriate.
Except with respect to matters which under Section 162(m) of the Code are required to be determined in the sole and absolute discretion of the Committee, the Committee shall have full power, to the extent permitted by law, to delegate its authority to any officer or employee of the Company or its subsidiaries to administer and interpret the procedural aspects of the Incentive Plan, subject to the terms of the Incentive Plan, including adopting and enforcing rules to decide procedural and administrative issues.
The Committee may rely on opinions, reports or statements of officers or employees of the Company and of counsel to the Company (inside or retained counsel), public accountants and other professional or expert persons.
The Board reserves the right to amend or terminate the Incentive Plan in whole or in part at any time; provided, however, that except as necessary to maintain an outstanding incentive award’s qualification as performance-based compensation under Section 162(m) of the Code (“Performance-Based Compensation”), no amendments shall adversely affect or impair the rights of any participant that have previously accrued hereunder, without the written consent of the participant. Unless otherwise prohibited by applicable law, any amendment required to cause an incentive award to qualify as Performance-Based Compensation may be made by the Committee. No amendment to the Incentive Plan may be made to alter the class of individuals who are eligible to participate in the Incentive Plan, the performance criteria specified in Section 4 hereof or the maximum incentive award 

        

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payable to any participant without shareholder approval unless shareholder approval of the amendment is not required in order for incentive awards paid to participants to constitute Performance-Based Compensation.
No member of the Committee shall be liable for any action taken or omitted to be taken or for any determination made by him or her in good faith with respect to the Incentive Plan, and the Company shall indemnify and hold harmless each member of the Committee against any cost or expense (including counsel fees) or liability (including any sum paid in settlement of a claim with the approval of the Committee) arising out of any act or omission in connection with the administration or interpretation of the Incentive Plan, unless arising out of such person’s own fraud or bad faith.
3.    Eligible Executives
Executive officers of the Company and its subsidiaries, as defined by the Securities Exchange Act of 1934, Rule 3b-7, as that definition may be amended from time to time, shall be eligible to participate in the Incentive Plan. The Committee shall select from all eligible executive officers those to whom incentive awards shall be granted under the Incentive Plan.
4.    Plan Year, Performance Periods, Performance Measures and Performance Targets
Each fiscal year of the Incentive Plan (the “Plan Year”) shall begin on January 1 and end on December 31. The performance period (the “Performance Period”) with respect to which incentive awards may be payable under the Incentive Plan shall be the Plan Year unless the Committee designates one or more different Performance Periods.
The Committee shall establish the performance measures (the “Performance Measures”) to be used, which may include one or more of the following criteria: (i) consolidated earnings before or after taxes (including earnings before interest, taxes, depreciation and amortization); (ii) net income; (iii) operating income; (iv) earnings per share; (v) book value per share; (vi) return on shareholders’ equity; (vii) expense management; (viii) return on investment; (ix) improvements in capital structure; (x) profitability of an identifiable business unit or product; (xi) profit margins; (xii) stock price; (xiii) market share; (xiv) revenues or sales (including organic revenue); (xv) costs; (xvi) cash flow; (xvii) working capital; (xviii) return on assets; (xix) total shareholder return; (xx) return on invested or total capital; and (xxi) economic value added.
In addition, to the extent consistent with Section 162(m) of the Code, Performance Measures may be based upon other objectives such as negotiating transactions or sales, implementation of Company policy, development of long-term business goals or strategic plans, negotiation of significant corporate transactions, meeting specified market penetration goals, productivity measures, geographic business expansion goals, cost targets, customer satisfaction or employee satisfaction goals, goals relating to merger synergies, management of employment practices and employee benefits, or supervision of litigation and information technology, and goals relating to acquisitions or divestitures of subsidiaries and/or other affiliates or joint ventures; provided however, that the measurement of any such Performance Measures must be objectively determinable.
All Performance Measures shall be objectively determinable and, to the extent they are expressed in standard accounting terms, shall be according to generally accepted accounting principles as in existence on the date on which the applicable Performance Period is established and without regard to any changes in such principles after such date (unless the modification of a Performance Measure to take into account such a change is pre-established in writing at the time the Performance 

3

Measures are established in writing by the Committee and/or the modification would not affect the ability of the incentive award to qualify as Performance-Based Compensation).
Notwithstanding the foregoing, incentive awards that are not intended to qualify as Performance-Based Compensation may be based on the Performance Measures described above or such other measures as the Committee may determine.
The Committee shall establish the performance targets (the “Performance Targets”) to be achieved, which shall be based on one or more Performance Measures relating to the Company as a whole or to the specific businesses of the Company, subsidiaries, operating groups, or operating units, as determined by the Committee. Performance Targets may be established on such terms as the Committee may determine, in its discretion, including in absolute terms, as a goal relative to performance in prior periods, or as a goal compared to the performance of one or more comparable companies or an index covering multiple companies. The Committee also shall establish with respect to each incentive award an objective formula to be used in calculating the amount of incentive award each participant shall be eligible to receive. There may be a sliding scale of payment dependent upon the percentage levels of achievement of Performance Targets.
The Performance Measures and Performance Targets, which may be different with respect to each participant and each Performance Period, must be set forth in writing by the Committee within the first ninety (90) days of the applicable Performance Period or, if sooner, prior to the time when 25 percent of the relevant Performance Period has elapsed.
5.    Certification of Performance Targets and Calculation of Incentive Awards
After the end of each Performance Period, and prior to the payment for such Performance Period, the Committee must certify in writing the degree to which the Performance Targets for the Performance Period were achieved, including the specific target objective or objectives and the satisfaction of any other material terms of the incentive award. The Committee shall calculate the amount of each participant’s incentive award for such Performance Period based upon the Performance Measures and Performance Targets for such participant. In establishing Performance Targets and Performance Measures and in calculating the degree of achievement thereof, the Committee may ignore extraordinary items, property transactions, changes in accounting standards and losses or gains arising from discontinued operations. The Committee shall have no authority or discretion to increase the amount of any participant’s incentive award as so determined to the extent such incentive award is intended to qualify as Performance-Based Compensation, but it may reduce the amount or totally eliminate any such incentive award if it determines in its absolute and sole discretion that such action is appropriate in order to reflect the participant’s performance or unanticipated factors during the Performance Period. The Committee shall have the authority to increase or decrease the amount of an incentive award to the extent the incentive award is not intended to qualify as Performance-Based Compensation.
The maximum payment that may be made with respect to incentive awards under the Incentive Plan to any participant in any one calendar year shall be $8,000,000.
6.    Payment of Awards
Approved incentive awards shall be payable by the Company in cash to each participant, or to the participant’s estate in the event of the participant’s death, as soon as practicable (and in any event no later than 2-1/2 months after the end of each Performance Period). No incentive award that is 

4

intended to qualify as Performance-Based Compensation may be paid under the Incentive Plan until the Committee has certified in writing that the relevant Performance Targets were achieved. If a participant is not an employee on the last day of the Performance Period, the Committee shall have sole discretion to determine what portion, if any, the participant shall be entitled to receive with respect to any award for the Performance Period. The Committee shall have the authority to adopt appropriate rules and regulations for the administration of the Incentive Plan in such termination cases.
The Company and its subsidiaries retain the right to deduct from any incentive awards paid under the Incentive Plan any Federal, state, local or foreign taxes required by law to be withheld with respect to such payment.
7.    Other Terms and Conditions
Any award made under the Incentive Plan shall be subject to the discretion of the Committee. No person shall have any legal claim to be granted an award under the Incentive Plan and the Committee shall have no obligation to treat participants uniformly. Except as may be otherwise required by law, incentive awards under the Incentive Plan shall not be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, charge, garnishment, execution, or levy of any kind, either voluntary or involuntary. Incentive awards granted under the Incentive Plan shall be payable from the general assets of the Company or its subsidiary, and no participant shall have any claim with respect to any specific assets of the Company or any of its subsidiaries.
Nothing contained in the Incentive Plan shall give any participant the right to continue in the employment of the Company or a subsidiary of the Company or affect the right of the Company or its subsidiaries to terminate the employment of a participant.
8.    Acceleration Event.
An “Acceleration Event” shall occur if:
(i)     a report on Schedule 13D shall be filed with the Securities and Exchange Commission pursuant to Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Act”), disclosing that any person (within the meaning of Section 13(d) of the Act), other than the Company or a subsidiary of the Company or any employee benefit plan sponsored by the Company or a subsidiary of the Company, is the beneficial owner directly or indirectly of twenty percent (20%) or more of the outstanding Common Stock $1 par value, of the Company (the “Stock”); 
(ii)     any person (within the meaning of Section 13(d) of the Act), other than the Company or a subsidiary of the Company, or any employee benefit plan sponsored by the Company or a subsidiary of the Company, shall purchase shares pursuant to a tender offer or exchange offer to acquire any Stock (or securities convertible into Stock) for cash, securities or any other consideration, provided that after consummation of the offer, the person in question is the beneficial owner (as such term is defined in Rule 13d-3 under the Act), directly or indirectly, of twenty percent (20%) or more of the outstanding Stock (calculated as provided in paragraph (d) of Rule 13d-3 under the Act in the case of rights to acquire Stock); 
(iii)     the consummation of (A) any consolidation, business combination or merger involving the Company, other than a consolidation, business combination or merger involving the Company in which holders of Stock immediately prior to the consolidation, business combination or merger (x) 

5

hold fifty percent (50%) or more of the combined voting power of the Company (or the corporation resulting from the merger or consolidation or the parent of such corporation) after the merger and (y) have the same proportionate ownership of common stock of the Company (or the corporation resulting from the merger or consolidation or the parent of such corporation), relative to other holders of Stock immediately prior to the merger, business combination or consolidation, immediately after the merger as immediately before, or (B) any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all or substantially all the assets of the Company;
(iv)     there shall have been a change in a majority of the members of the Board within a 12-month period unless the election or nomination for election by the Company’s stockholders of each new director during such 12-month period was approved by the vote of two-thirds of the directors then still in office who (x) were directors at the beginning of such 12-month period or (y) whose nomination for election or election as directors was recommended or approved by a majority of the directors who were directors at the beginning of such 12-month period; or 
(v)     any person (within the meaning of Section 13(d) of the Act) (other than the Company or any subsidiary of the Company or any employee benefit plan (or related trust) sponsored by the Company or a subsidiary of the Company) becomes the beneficial owner (as such term is defined in Rule 13d-3 under the Act) of twenty percent (20%) or more of the Stock.
Upon the occurrence of an Acceleration Event, the Performance Measures for each Performance Period with respect to which incentive awards may be payable under the Incentive Plan shall be deemed to be achieved at the greater of (i) the Performance Target established for such Performance Measures or (ii) the Company’s actual achievement of such Performance Measures in the year prior to the year in which the Acceleration Event occurs. Payment of the incentive awards, for the full year, will be made to each participant, in cash, within five (5) business days following such Acceleration Event.
9.    Miscellaneous.
The Incentive Plan was approved by the shareholders of ITT Corporation on May 7, 2013. On May 16, 2016, the Company became the successor issuer to ITT Corporation pursuant to Rule 12g-3(a) under the Securities Exchange Act of 1934, as amended, and assumed, amended and restated the Incentive Plan as of such date. The Incentive Plan shall remain in effect unless/until terminated by the Board; provided, however, that if an Acceleration Event has occurred no amendment or termination shall impair the rights of any participant with respect to any prior award.
The Incentive Plan shall be construed and governed in accordance with the laws of the State of New York.

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