Document:

Exhibit 10.2

 

SHARE TRANSFER AGREEMENT

 

THIS SHARE TRANSFER
AGREEMENT (this “Agreement”) is made and entered into as of March 24, 2021 (the “Effective Date”),
by and between EnCellX, Inc., a Delaware corporation (the “Purchaser”) and Cellect Biotechnology Ltd.,
an Israeli company (the “Seller”). The Purchaser and the Seller shall each be referred to in this Agreement
as a “Party” and together as the “Parties”.

 

W I T N E S S E T H:

 

WHEREAS, the
Seller is the sole legal and beneficial owner of Cellect Biotherapeutics Ltd. (company number 514625805) (the “Company”);

 

WHEREAS, the
Purchaser wishes to purchase the entire share capital of the Company (the “Shares”) from the Seller and the
Seller wishes to sell the Shares to the Purchaser such that, following such sale the Purchaser shall become the sole shareholder
of the Company, upon the terms and subject to the conditions hereinafter set forth;

 

NOW THEREFORE,
in consideration of the premises and the mutual promises herein made, and in consideration of the representations, warranties,
and covenants herein contained, and intending to be legally bound hereby, the parties agree as follows:

 

1. Definitions

 

1.01 Whenever
used in this Agreement with an initial capital letter, the terms defined in this Article 1, whether used in the singular or the
plural, shall have the meanings specified below:

 

(a) “Affiliate”
shall mean, with respect to either Party, any Person controlling, controlled by or under common control with, such Party. For purposes
of this definition only, “control” of another Person shall mean the possession, directly or indirectly, of the power
to direct or cause the direction of the activities, management or policies of such Person, whether through the ownership of voting
securities, by Contract or otherwise. Without limiting the foregoing, control shall be deemed to exist when a Person (i) owns or
directly controls fifty percent (50%) or more of the outstanding voting stock or other ownership interest of the other Entity,
or (ii) possesses, directly or indirectly the power to elect or appoint fifty percent (50%) or more of the members of the governing
body of the other Entity.

 

(b) “Calendar
Quarter” shall mean the respective periods of three (3) consecutive calendar months ending on March 31, June 30, September
30 or December 31, for so long as this Agreement is in effect.

 

(c) “Calendar
Year” shall mean successive one-year periods beginning on January 1 and ending on December 31 for so long as this Agreement
is in effect.

 

(d) 
“Company IP Rights” means all Intellectual Property owned, licensed or controlled by the Company that is necessary
or used in the business of the Company as presently conducted or as presently proposed to be conducted, including all patents owned,
licensed or controlled by the Company and (i) all divisional, continuation, and continuation–in-part, continued prosecution
applications, patents of addition or substitution of the foregoing applications and patents, (ii) all foreign equivalents of the
foregoing patents and patent applications, (iii) all patents issuing from any of the foregoing applications, and (iv) all reissues,
renewals, registrations, reexaminations, extensions or restorations of any of the foregoing patents.

 

    

     

    

 

(e) “Contract”
shall, with respect to any Person, mean any written agreement, contract, subcontract, lease (whether real or personal property),
mortgage, understanding, arrangement, instrument, note, option, warranty, purchase order, license, sublicense, insurance policy,
benefit plan or legally binding commitment or undertaking of any nature to which such Person is a party or by which such Person
or any of its assets are bound or affected under applicable law.

 

(f) “Effect”
means any effect, change, event, circumstance, or development.

 

(g) “Encumbrance”
means any lien, pledge, hypothecation, charge, mortgage, security interest, encumbrance, claim, infringement, interference, option,
right of first refusal, preemptive right, community property interest or restriction of any nature (including any restriction on
the voting of any security, any restriction on the transfer of any security or other asset, any restriction on the receipt of any
income derived from any asset, any restriction on the use of any asset and any restriction on the possession, exercise or transfer
of any other attribute of ownership of any asset).

 

(h) “End
User” means the first Entity (including distributor), that is not the Group Entity or any Licensee, which is invoiced
for any sales or other transfers of Products.

 

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

 

(j) “EU
Regulatory Approval” means an approval, license or authorization issued by the European Medicines Agency, or any successor
agency, required for the commercial manufacture, marketing and sale of a Product in the European Union in accordance with applicable
law.

 

(k) “Exit
Transaction” means a transaction in which (a) all or substantially all of the assets or outstanding equity interests
in the Company, the Purchaser or any Affiliate of the Purchaser or of the Purchaser’s founders that has rights to the Product
(each, a “Group Entity”), are sold or otherwise transferred, (b) the Group Entity is a party to a merger or
consolidation in which the equity owners of the Group Entity immediately following such merger or consolidation do not continue
to hold directly or indirectly a majority of the voting power and a majority of the equity ownership of the surviving Entity or
(c) a change in ownership of more than 75% of Group Entity’s outstanding equity interests and voting power occurs..

 

(l) “First
Commercial Sale” shall mean the first sale of a Product by a Group Entity, or a Licensee to an unaffiliated third party
after (a) receipt of all governmental and other regulatory approvals required to market and sell the Product have been obtained
in the country in which such Product is sold, and (b) the commencement of marketing efforts with respect to such Product. Sales
for purposes of testing the Product and samples purposes shall not be deemed First Commercial Sale.

 

    2

     

    

 

(m) “Governmental
Body” means any: (a) nation, state, commonwealth, province, territory, county, municipality, district or other jurisdiction
of any nature; (b) federal, state, local, municipal, foreign or other government; (c) governmental or regulatory body, or quasi-governmental
body of any nature (including any governmental division, department, administrative agency or bureau, commission, authority, instrumentality,
official, ministry, fund, foundation, center, organization, unit, body or Entity and any court or other tribunal, and for the avoidance
of doubt, any tax authority) or other body exercising similar powers or authority; or (d) self-regulatory organization.

 

(n) “Intellectual
Property” means all intellectual property and proprietary rights arising under the laws of any jurisdiction in the world,
including the following: (i) all patents and patent applications and any patents issuing therefrom, including all divisionals,
continuations, substitutions, continuations-in-part, converted provisionals, continued prosecution applications, adjustments, re-examinations,
reissues, additions, renewals, revalidations, extensions (including patent term extensions, and supplemental certificates and the
like), registrations, pediatric exclusivity periods of any such patents and patent applications, and any and all foreign equivalents
of the foregoing; (ii) registered and unregistered trademarks, service marks, trade dress, trade names, brand names, logos, slogans
and internet domain names, social media identifiers and accounts, and registrations, applications for registration and renewals
thereof, together with all of the goodwill associated with any of the foregoing; (iii) industrial designs and copyrights (including
rights in software) and registrations, applications for registration, and renewals thereof; (iv) any discoveries, inventions (whether
patentable or not), materials, information, data, designs, formulae, ideas, methods, models, assays, research plans, procedures,
designs for experiments and tests and results of experimentation and testing (including results of research or development) processes
(including manufacturing processes, specifications and techniques), laboratory records, analytical and quality control data, trial
data, case report forms, data analyses, reports or summaries and information contained in submissions to, and information from
regulatory authorities, trade secrets and other proprietary business information, and (v) any process, method, composition of matter,
article of manufacture, improvement or finding that is invented (whether patentable or not), including all rights, title and interest
in and to (i)-(iv) above, or other intellectual property rights therein.

 

(o) “License”
shall mean any right granted, license given, or agreement entered into, by a Group Entity to or with any other Person, under or
with respect to or permitting the development, manufacture, marketing, distribution and/or sale of Products or the underlying technology
thereto or any part thereof, and any option to obtain or enter into such right, license, agreement or permission (regardless of
the title given to such grant of rights).

 

(p) “Licensee”
shall mean any Person granted a License.

 

(q) “Licensee
Revenues” shall mean any payments or other consideration that the Group Entity receives, with the exception of royalties
on account of the sale of Products, pursuant to a License, including without limitation license fees, license option fees, milestone
payments, license maintenance fees, and equity, provided that in the event that the Group Entity receives non-monetary consideration
in connection with a License, or in the case of transactions not at arm’s length, License Revenues shall be calculated based
on the fair market value of such consideration or transaction, assuming an arm’s length transaction made in the ordinary
course of business.

 

    3

     

    

 

(r) “Net
Sales” shall mean the gross amount invoiced by or on behalf of a Group Entity or Licensee (in each case, the “Invoicing
Entity”) for the sales of Products to a third party who will be an End User of the Products, less the following: (a)
customary trade, quantity, cash discounts, adjustments or discounts, to the extent actually allowed and taken; (b) amounts repaid
or credited by reason of rejection or return or recall expenses; (c) any taxes or other governmental charges (value added tax and/or
any similar sales tax) levied on the sale, use, delivery, which is imposed on the Invoicing Entity (as set out separately in the
invoices, reflected in the Invoicing Entity's books, or otherwise substantiated in written documentation); and (d) reasonable freight
and handling, supply chain services and/or logistical charges and fees; provided that in the event that an Invoicing Entity receives
non-monetary consideration for any Products or in the case of transactions not at arm’s length between an Invoicing Entity
and an End User, Net Sales shall be calculated based on the fair market value of such consideration or transaction, assuming an
arm’s length transaction made in the ordinary course of business. Sales of Products by an Invoicing Entity to an Affiliate
of such Invoicing Entity for resale by such Affiliate shall not be deemed Net Sales and Net Sales shall be determined based on
the total amount invoiced on resale to an End User.

 

(s) “Person”
means any individual, Entity or Governmental Body.

 

(t) “Product”
shall mean Apograft, or any similar product which has been developed for improving Bone Marrow transplants for Hematological diseases.
Under current name of Apograft or any future renaming done by purchaser or any of its Affiliates.

 

(u) “Seller’s
Net Cash” net cash reserves of Seller as of immediately prior to the Closing, excluding an amount of cash that is sufficient
to cover (i) the aggregate amount of outstanding checks or bank transfers or similar transactions and (ii) any liabilities of Seller
in connection with the routine operation of the Company that may become due and payable after the Closing after giving effect to
this Agreement, including but not limited to the amounts set forth in Annex A attached hereto.

 

(v) “US
Regulatory Approval” means an approval, license or authorization issued by the U.S. Food and Drug Administration, or
any successor agency, required for the commercial manufacture, marketing and sale of Products in the United States in accordance
with applicable law.

 

(w) “Payment
Period” shall mean, on a country-by-country basis, the period which shall commence on the date of the First Commercial
Sale of the Product in any country, and end on the earlier to occur of (i) fifteen (15) years thereafter or (ii) the expiration
of all patents for the Product in such country or region.

 

2. Transaction;
Consideration 

 

2.01 Purchase
and Sale. Upon the terms and subject to the conditions of this Agreement, the Seller agrees to sell to the Purchaser, and
the Purchaser agrees to purchase from the Seller, at the Closing, the Shares. 

 

2.02 Consideration.
In consideration for the Shares, the Purchaser shall pay, or shall cause any Group Entity to pay, to the Seller, as follows:

 

(a) Royalty
Payments. The Purchaser shall pay the Seller an amount equal to 4% of all Net Sales of Products. Within 45 days of the end
of each Calendar Quarter, the Purchaser shall remit to Seller all royalties due for the applicable Calendar Quarter. The royalty
set forth in this Section 2.02(a) will be payable during the Payment Period.

 

    4

     

    

 

(b) Milestone
Payments. During the Payment Period, the Purchaser shall pay Seller the milestone payments set forth below subject to and contingent
upon achievement by a Group Entity or a Licensee of the relevant milestone (the “Milestone Payments”). The Purchaser
shall pay to Seller the Milestone Payments within 45 business days of achievement of the applicable milestone.

 

(i) Upon
receipt by of the first US Regulatory Approval - an amount equal to $8,000,000, payable in cash;

 

(ii) Upon
receipt of the first EU Regulatory Approval - an amount equal to $8,000,000, payable in cash;

 

(c) Exit
Fee. Upon consummation of an Exit Transaction, to occur commencing at the Effective Date and until February 28, 2023, the Purchaser
shall pay, or shall cause Mr. Shai Yarkoni and Mr. Aditya Mohanty to pay Seller, a cash payment in an amount equal to 33.3% of
the consideration due and distributable to Mr. Shai Yarkoni and Mr. Aditya Mohanty in connection with the applicable Exit Transaction;
provided that in the event that such individuals receive non-monetary consideration or in the case of transactions not at arm’s
length, the foregoing payment shall be calculated based on the fair market value of such consideration or transaction, assuming
an arm’s length transaction made in the ordinary course of business.

 

(d) License
Fee. Subject to Section 2.02(f) below, Purchaser shall pay Seller an amount equal to 20% of all License Revenues that are received
by a Group Entity during the Payment Period, up to an aggregate amount of $16,000,000 (the “License Fee”). The
Purchaser shall pay to Seller the License Fee payment within 45 days of receipt of the License Revenues.

 

(e) Mandatory
Sale. In the event that Purchaser does not raise at least $3,000,000 within 12 months from the Closing, Purchaser will be engage
an investment bank and initiate a process for the sale of the Company or its assets, with the net proceeds of such transaction
being paid to the Seller within 45 days of receipt of such proceeds.

 

(f) Bonus
Payment. The consideration for the sale of the Shares hereunder further includes a bonus payment to Dr. Shai Yarkoni, for his
contribution to the contemplated transaction and to the continued success of the Purchaser, in an amount equal to the consideration
that he would have received, had he been issued 40% of the Purchaser’s share capital on a fully diluted basis, upon incorporation
of the Purchaser. Any dividend payments on account of such shares, or consideration received upon their sale, shall be paid by
the Seller solely to Dr. Yarkoni and not to any other shareholder of the Seller. This right shall be secured by the escrow, referred
to in Section 5.

 

(g) The
Purchaser shall be entitled to deduct from the License Fee due and payable to the Seller any Milestone Payment(s) previously paid
to the Seller under this Agreement.

 

2.03 Reports;
Payments; Records.

 

(a) Reports
on Net Sales. Within thirty (30) days after the conclusion of each Calendar Quarter commencing during the Royalty Period, the
Purchaser shall deliver, or shall cause the Group Entity to deliver, to the Seller, reports on Net Sales, containing the following
information:

 

(i) the
gross amount invoiced for the Product sold by the Group Entities and Licensees during the applicable Calendar Quarter, separately
itemized according to the Product, the Invoicing Entity, country of sale and indicating the currency of payment;

 

    5

     

    

 

(ii) a
calculation of Net Sales for the applicable Calendar Quarter, separately itemized according to the Product, the Invoicing Entity,
and including an itemized listing of applicable deductions;

 

(iii) the
total royalty payable to the Seller in accordance with Section 2.02(a) above on Net Sales for the applicable Calendar Quarter,
together with the exchange rates used for conversion. If no amounts are due to the Seller for Net Sales in any Calendar Quarter,
the report shall so state.

 

(b) Other
Reports. In addition to the reports delivered pursuant to Section 2.03(a) above, the Purchaser shall notify, or shall
cause the Group Entity to notify, the Seller in writing within seven (7) business days of the occurrence of any of the following
events:

 

(i) First
Commercial Sale; such notice shall describe the Product in respect of which such First Commercial Sale was made, the country in
which such First Commercial Sale was made, and the date;

 

(ii) the
achievement of any of the milestones triggering a Milestone Payment as set forth in Section 2.02(b) above;

 

(iii) The
consummation of an Exit Transaction;

 

(iv) The
execution of a License. Licenses shall only be granted pursuant to written agreements, which shall be in compliance and not inconsistent
with the terms and conditions of this Agreement, and will include all provisions necessary to ensure the Purchaser’s ability
to perform its obligations under this Agreement.

 

(c) Payment
Currency. Payments to the Seller with respect to Net Sales which are invoiced in United States Dollars, New Israeli Shekels,
or Euro, shall be made in the same currency in which they are invoiced. All other payments due under this Agreement shall be payable
in United States Dollars. Conversion of foreign currency to U.S. dollars shall be made at the conversion rate existing in the United
States (as reported in the Wall Street Journal) on the last working day of the applicable Calendar Quarter. Such payments shall
be without deduction of exchange, collection, or other charges.

 

(d) Records.
The Purchaser shall maintain, and shall cause the Group Entities (who make, use, offer to sell, sell or import Products) and Licensees
to maintain, complete and accurate records of Products that are made, used, marketed, offered for sale or sold, any amounts payable
to the Seller in relation to such Products, which records shall contain reasonably sufficient information to permit the Seller
to confirm the accuracy of any reports or notifications delivered to the Seller under Section 2.03(a)-(b) above. The relevant
party shall retain such records relating to a given Calendar Quarter for at least seven (7) years after the conclusion of that
Calendar Quarter. The Seller shall have the right, at its expense, to cause an independent third party certified public accountant
firm (subject to executing a standard confidentiality agreement) to inspect and audit such relevant records during normal business
hours for the sole purpose of verifying any reports and payments delivered under this Agreement. Such accountant shall not disclose
to the Seller any information other than the final conclusions relating to the information relating to the accuracy of reports
and payments delivered under this Agreement. The Parties shall reconcile any underpayment within thirty (30) days after the accountant
delivers to both Parties the results of the audit. In the event that of any underpayment in excess of five percent (5%) in any
Calendar Year, the audited party shall bear the full cost of such audit. The Seller may exercise its rights under this section
only once every year per audited party and only with reasonable prior notice to the audited party. The Purchaser shall cause Group
Entities and Licensees to fully comply with the terms of this Section and shall include the terms of this Section in its License
agreements.

 

    6

     

    

 

(e) Audited
Report. The Purchaser shall furnish the Seller, and shall cause the Group Entities (who make, use, market, offer for sale or
sell Products) and Licensees to furnish the Seller, within ninety (90) days after the signing of the Seller’s audited financials
for the previous Calendar Year, commencing at the end of the Calendar Year of the First Commercial Sale, with a report, certified
by an independent certified public accountant, relating to royalties and other payments due to the Seller pursuant to this Agreement
in respect to the previous Calendar Year.

 

(f) Late
Payments. Any payments to be made under this Agreement that are not paid on or before the date such payments are due under
this Agreement, shall bear interest at a compounded monthly rate of 0.75% calculated seven (7) days from the due date until the
actual date of payment but not higher than the maximum rate allowed by applicable law.

 

(g) Payment
Method. Each payment due to Seller under this Agreement shall be paid by wire transfer of funds to Seller’s account in
accordance with the account details to be provided by Seller.

 

(h) Withholding
and Similar Taxes. Each Party shall bear any taxes imposed on such Party in connection with the performance of this Agreement.
All amounts to be paid to the Seller pursuant to this Agreement are exclusive of Value Added Tax. The Purchaser shall add value
added tax, as required by law, to all such amounts. If applicable laws require that taxes be withheld from any amounts due to the
Seller under this Agreement, the Purchaser shall (i) deduct these taxes from the remittable amount, (ii) pay the taxes to the proper
taxing authority, and (iii) promptly deliver to the Seller a statement including the amount of tax withheld and justification therefore,
and such other information as may be necessary for tax credit purposes.

 

3. Execution;
Closing 

 

3.01 The
closing (the “Closing”) of the purchase and sale of the Shares hereunder shall be held concurrently with the
closing of the merger agreement between the Seller and Quoin Pharmaceuticals, Inc. to which this Agreement is attached as an exhibit
(the “Merger Agreement”). 

 

3.02 At
the Closing, the Seller shall deliver to the Purchaser:

 

(a) An
executed Share Transfer Deed effectuating the transfer of the Shares from the Seller to the Purchaser;

 

(b) Copies
of all organizational and corporate documents of the Company currently in force, including Company’s current Articles of
Association and Company’s shareholders register.

 

3.03 At
the Closing, (a) all employees of Seller who are not employed directly by the Company (and any and all obligation to any such employees)
will be transferred to the Company, (b) Seller will transfer all of the Seller’s Contracts other than those set forth in
Schedule 3.03 to the Company, (c) Seller will transfer Seller’s Net Cash to the Company, and (d) Purchaser and the
Company will assume and be fully and solely responsible for any all liabilities of the Company or the Purchaser and the operation
of the Purchaser or the Company after the Closing (the “Assumed Liabilities”).

 

    7

     

    

 

3.04 In
the event that the Merger Agreement is terminated prior to the closing thereof, this Agreement shall also be terminated with no
further force and effect.

 

4. Representations
and Warranties of the Parties

 

4.01 The
Purchaser represents and warrants to the Seller as of the Effective Date and as of the Closing, as follows:

 

(a) Existence
and Power. The Purchaser is an Entity duly established and validly existing under the laws of Delaware and has all corporate powers
and authorizations to carry on its business as now being conducted and to execute and deliver this Agreement and any ancillary
documents and to consummate the transactions contemplated hereby.

 

(b) Authorization.
The execution, delivery and performance by the Purchaser of this Agreement and the consummation of the transactions contemplated
hereby are within its powers and have been duly authorized by all necessary partnership action on its part, to the extent applicable.

 

(c) Non-contravention.
The execution, delivery and performance by the Purchaser of this Agreement and the consummation of the transactions contemplated
hereby do not and will not violate, result in a breach of, or constitute a default under: (i) organizational documents of the
Purchaser; (ii) any court ruling or decree, any decision of a quasi-judicial body or any administrative order or decision in any
country concerning or applicable to the Purchaser; (iii) any agreement, obligation or restriction to which the Purchaser is a
party; or (iv) any applicable law.

 

4.02 The
Seller represents and warrants to the Purchaser as of the Effective Date and as of the Closing, as follows:

 

(a) Existence and
Power. The Seller is an Entity duly established and validly existing under the laws of Israel and has all corporate powers and
authorizations to carry on its business as now being conducted and to execute and deliver this Agreement and any ancillary documents
and to consummate the transactions contemplated hereby.

 

(b) Authorization.
The execution, delivery and performance by the Seller of this Agreement and the consummation of the transactions contemplated
hereby are within its powers and have been duly authorized by all necessary partnership action on its part, to the extent applicable.

 

(c) Non-contravention.
The execution, delivery and performance by the Seller of this Agreement and the consummation of the transactions contemplated
hereby do not and will not violate, result in a breach of, or constitute a default under: (i) organizational documents of the
Seller; (ii) any court ruling or decree, any decision of a quasi-judicial body or any administrative order or decision in any
country concerning or applicable to the Seller; (iii) any agreement, obligation or restriction to which the Seller is a party;
or (iv) any applicable law.

 

    8

     

    

 

5. Escrow

 

In order to secure some of the Seller’s
rights under this Agreement, the Purchaser shall deposit in escrow, Common Shares of the Purchaser, constituting 40% of the Purchaser’s
share capital on a fully diluted basis as of its incorporation, under the terms set forth in the Escrow Agreement attached hereto
as Schedule 5.

 

6. Miscellaneous

 

6.01 Survival
of Representations and Warranties. The representations and warranties of the Parties contained in this Agreement or any
certificate or instrument delivered pursuant to this Agreement shall survive the Closing for a period of 12 months, and only the
covenants that by their terms survive the Closing and this Article 6 shall survive the Closing.

 

6.02 Release
of Liabilities. The Purchaser agrees to fully and unconditionally release and forever discharge the Seller from any and
all liabilities of the Company that exist (known or unknown) as of immediately prior to the Effective Date and the Purchaser hereby
agrees to indemnify and hold harmless the Seller and the Seller’s subsidiaries and its and their directors, employees and
representatives from and against any and all debts, obligations, liabilities, monetary damages, fines, fees, penalties, interest
obligations, deficiencies, losses and reasonable expenses (including out of pocket costs of investigation and defense and reasonable
attorneys’ fees and expenses) arising out of or resulting from any and all liabilities of the Company that exist (known or
unknown) as of immediately prior to the Effective Date and the Assumed Liabilities. 

 

6.03 Sole
Remedy. Purchaser hereby agrees, on behalf of itself and its Affiliates, that its sole recourse for any breach of any representation,
warranty or covenant of the Seller (if any) or any of its Affiliates that are contained or provided for in this Agreement, from
and after the Effective Date, shall be to offset from any payment required to be made hereunder by Purchaser to Seller, the amount
of any damages suffered by Purchaser as a result of any such representation, warranty or covenant of Seller and under no circumstance
will Purchaser seek any damages against Seller or seek any equitable or other relief against Seller beyond the exercise of such
setoff rights.

 

6.04 Termination.
This Agreement shall be terminated and of no force or effect, and the parties hereto shall have no liability hereunder, upon receipt
by the Seller of the last payment payable under Section 2.02 above.|

 

6.05 Notices.
All notices and other communications required or permitted hereunder to be given to a party to this Agreement shall be in writing
and shall be sent by facsimile, email or mailed by registered or certified mail, postage prepaid, or otherwise delivered by hand
or by messenger, addressed to such party’s as such party shall notify each other party in writing.

 

6.06 Amendments,
Waivers and Remedies. Any provision of this Agreement may be amended, waived, or discharged (either prospectively or retroactively,
and either generally or in a particular instance), by a written instrument signed by all the parties to this Agreement. No failure,
delay or omission by any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall
any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power
or privilege. Any waiver, permit, consent, or approval of any kind or character on the part of any party of any breach or default
under this Agreement, or any waiver on the part of any party of any provisions or conditions of this Agreement, must be in writing
and shall be effective only to the extent specifically set forth in such writing. All remedies, either under this Agreement, or
by law, or otherwise afforded to any of the parties, shall be cumulative and not alternative.

 

    9

     

    

 

6.07 Successors
and Assigns. Except as otherwise expressly stated to the contrary herein, the provisions hereof shall inure to the benefit
of, and be binding upon, the successors, assigns under law, heirs, executors, and administrators of the parties hereto and their
respective successors and assigns. 

 

6.08 Governing
Law; Jurisdiction. This Agreement shall be governed by and construed according to the laws of the State of Delaware, without
regard to the conflict of laws provision thereof. Any claim arising under or in connection with this Agreement shall be resolved
exclusively in the appropriate court in the State of Delaware. Each of the parties hereby irrevocably consents to the exclusive
jurisdiction of such courts and waives and agrees not to assert any objection to the jurisdiction or convenience thereof.

 

6.09 Further
Assurances. Each of the parties hereto shall perform such further acts and execute such further documents as may reasonably
be necessary to carry out and give full effect to the provisions of this Agreement and the intentions of the parties as reflected
thereby.

 

6.10 Entire
Agreement. This Agreement constitutes the entire agreement between the parties with respect to the subject matter of this
Agreement and supersedes all prior agreements and understandings, both oral and written, between the parties with respect to the
subject matter of this Agreement.

 

6.11 Counterparts.
This Agreement may be executed in any number of counterparts, each of which shall be deemed an original and enforceable against
the parties actually executing such counterpart, and all of which together shall constitute one and the same instrument.

 

6.12 Heading,
Preamble, and Annexes. The titles and subtitles used in this Agreement are used for convenience only and are not to be
considered in construing or interpreting this Agreement. The preamble and exhibits to this Agreement are an integral and inseparable
part of this Agreement. 

 

[Signature Page to Follow]

 

    10

     

    

 

IN WITNESS WHEREOF, the Parties
have signed this Agreement as of the Effective Date.

 

	THE SELLER:	 
	 	 
	 	 
	Cellect Biotechnology Ltd. 	 
	 	 
	 	 
	THE PURCHASER: 	 
	 	 
	 	 
	EnCelleX, Inc.	 
	 	 
	Name and Title:  	 
	 	 
	 	 

 

Acknowledged and agreed with respect to section 2.02(c) only:

 

	 	 
	Shai Yarkoni	 
	 	 
	 	 
	 	 
	Aditya Mohanty	 

 

    11

     

    

 

Annex A

 

		1.	Costs and Expenses under the Escrow Agreement with Altshuler Shaham Trusts Ltd.

 

		2.	Costs and expenses under the Escrow Agreement with the Representative (appointed under the CVR Agreement).

 

 

12Exhibit 10.3

 

CONTINGENT VALUE RIGHTS AGREEMENT

 

THIS CONTINGENT VALUE
RIGHTS AGREEMENT, dated as of March 24, 2021 (the “Agreement”), is entered into by and among Cellect Biotechnology,
Ltd., an Israeli company (the “Company”), Mr. Eyal Leibovitz (the “Representative”) and
Computershare (the “Rights Agent”).

 

PREAMBLE

 

WHEREAS, Quoin Pharmaceuticals,
Inc., a Delaware corporation (“Quoin”), CellMSC, Inc., a Delaware corporation (“Merger Sub”),
and the Company have entered into an Agreement and Plan of Merger and Reorganization dated as of March 24, 2021 (as it may be
amended or supplemented from time to time pursuant to the terms thereof, the “Merger Agreement”), pursuant
to which Merger Sub will merge with and into Quoin with Quoin surviving the merger as a subsidiary of the Company (the “Merger”);

 

WHEREAS, pursuant
to the Merger Agreement, Quoin and the Company agreed to create and issue to the Holders (as defined below) contingent value rights
as hereinafter described;

 

WHEREAS, the Company
has entered into a Share Transfer Agreement dated as of March 24, 2021 (the “Transfer Agreement”), pursuant
to which EnCellx, Inc. (the “Buyer”) will acquire from the Company all of the issued and outstanding shares
of Cellect Biotherapeutics Ltd., an Israeli company (“Subsidiary”), and Subsidiary will become a wholly owned
subsidiary of Buyer; and

 

WHEREAS, pursuant
to the Transfer Agreement, and in accordance with the terms and conditions thereof, Buyer agreed to provide the Company, solely
for the benefit of the Holders (as defined below), the right to receive one or more contingent payments upon the achievement of
certain milestones and occurrence of certain events as described in the Transfer Agreement.

 

NOW, THEREFORE, in
consideration of the premises and the consummation of the transactions referred to above, it is mutually covenanted and agreed,
for the benefit of all Holders pro rata to their holdings in the Company as of the Record Date (as defined below), as follows:

 

Article
1

DEFINITIONS

 

Section 1.01 Definitions.
The following terms shall have the meanings ascribed to them as follows:

 

“Acting Holders”
means any Holder or Holders of at least fifty percent (50%) of the outstanding CVRs as set forth on the CVR Register.

 

“Affiliate”
means with respect to any person, any other person that, directly or indirectly, controls, is controlled by or is under common
control with such first person.

 

“Business
Day” means any day other than a day on which banks in the State of New York are authorized or obligated to be closed.

 

“Buyer Group”
means Buyer, Subsidiary and any Affiliate of any of the foregoing, or any one of them (excluding for all purposes the Company).

 

“Consideration”
means the net payment and fees payable by the Buyer Group to the Company under the Transfer Agreement.

 

     
 

     

    

 

“CVRs”
means the rights of Holders to receive contingent cash payments pursuant to this Agreement.

 

“Effective
Date” means the date on which the certificate of merger for the Merger is filed with the Secretary of State of the State
of Delaware and deemed effective.

 

“Exchange
Act” means the U.S. Securities and Exchange Act of 1934, as amended, and the regulations promulgated thereby.

 

“Holder”
means, at the relevant time, a person in whose name a CVR is registered in the CVR Register.

 

“Officer’s
Certificate” means a certificate (i) signed by an authorized officer of the Company, in his or her capacity as such,
and (ii) delivered to the Rights Agent.

 

“Permitted
Transfer” means a transfer of one or more CVRs (i) upon death by will or intestacy; (ii) by instrument to an inter vivos
or testamentary trust in which the CVRs are to be passed to beneficiaries upon the death of the trustee; (iii) made pursuant to
a court order; (iv) made by operation of law (including a consolidation or merger) or without consideration in connection with
the dissolution, liquidation or termination of any corporation, limited liability company, partnership or other entity; (v) in
the case of CVRs payable to a nominee, from a nominee to a beneficial owner (and, if applicable, through an intermediary) or from
such nominee to another nominee for the same beneficial owner.

 

“Record Date”
means the end of trading [X] days prior to the Effective Date.

 

“Representative”
means the representative of the Holders named in the preamble, until a successor Representative shall have become such pursuant
to the applicable provisions of this Agreement, and thereafter “Representative” shall mean such successor Representative.

 

“Rights Agent”
means the Rights Agent named in the first paragraph of this Agreement, until a successor Rights Agent shall have become such pursuant
to the applicable provisions of this Agreement, and thereafter “Rights Agent” shall mean such successor Rights
Agent.

 

“Securities
Act” means the U.S. Securities Act of 1933, as amended, and the regulations promulgated thereby.

 

“Transaction
Expenses” means (i) a one-time reimbursement in the amount of $10,000 to compensate the Company for the administrative
costs of complying with this Agreement, (ii) all fees of the Rights Agent paid by the Company pursuant to this Agreement for the
applicable year, (iii) any out-of-pocket transaction costs, fees or expenses (including any broker fees, finder’s fees,
advisory fees, accountant or attorney’s fees and transfer or similar taxes imposed by any jurisdiction) incurred by the
Company or any of its subsidiaries or Affiliates in connection with this Agreement or the Transfer Agreement and (iv) any taxes
incurred or paid by the Company or any of its subsidiaries or Affiliates in connection with the this Agreement or the Transfer
Agreement. To the extent any Transaction Expenses are incurred or paid in a currency other than U.S. dollars, the amount that
was paid, as converted into U.S. dollars using the applicable exchange rate in effect for the date on which such amount was paid,
as reported by The Wall Street Journal, shall be used in the calculation of the “Transaction Expenses”.

 

    
    2 

     

    

 

Article
2

CONTINGENT VALUE RIGHTS

 

Section 2.01 Holders
of CVRs; Appointment of Rights Agent.

 

(a) Each Holder shall
be entitled to one CVR for each Share outstanding held by such Holder as of the Record Date.

 

(b) The Company hereby
appoints the Rights Agent to act as rights agent for the Company in accordance with the terms and conditions set forth in this
Agreement, and the Rights Agent hereby accepts such appointment.

 

Section 2.02 Nontransferable.
CVRs may not be sold, assigned, transferred, pledged, encumbered or transferred
or disposed of in any other manner, in whole or in part, other than pursuant to a Permitted Transfer.

 

Section 2.03 No
Certificate; Registration; Registration of Transfer; Change of Address.

 

(a) CVRs shall not be
evidenced by a certificate or other instrument.

 

(b) The Rights Agent
shall keep a register (the “CVR Register”) for the purposes of (i) identifying the Holders of CVRs and (ii)
registering CVRs and Permitted Transfers thereof.

 

(c) Subject to the restriction
on transferability set forth in Section 2.02, every request made to transfer a CVR must be in writing and accompanied by
a written instrument of transfer and other requested documentation in form reasonably satisfactory to the Rights Agent, duly executed
by the registered Holder or Holders thereof, or by the duly appointed legal representative, personal representative or survivor
of such Holder or Holders, setting forth in reasonable detail the circumstances relating to the transfer. Upon receipt of such
written notice, the Rights Agent shall, subject to its reasonable determination that the transfer instrument is in proper form
and the transfer otherwise complies with the other terms and conditions of this Agreement, register the transfer of the applicable
CVRs in the CVR Register. All duly transferred CVRs registered in the CVR Register shall be the valid obligations of the Company,
evidencing the same right, and entitling the transferee to the same benefits and rights under this Agreement, as those held by
the transferor. No transfer of a CVR shall be valid until registered in the CVR Register, and any transfer not duly registered
in the CVR Register will be void ab initio. Any transfer or assignment of CVRs shall be without charge (other than the cost of
any transfer tax) to the applicable Holder.

 

(d) A Holder may make
a written request to the Rights Agent to change such Holder’s address of record in the CVR Register. Such written request
must be duly executed by such Holder. Upon receipt of such written notice, the Rights Agent shall promptly record the change of
address in the CVR Register.

 

Section 2.04 No
Voting, Dividends or Interest; No Equity or Ownership Interest in the Company.

 

(a) CVRs shall not have
any voting or dividend rights, and interest shall not accrue on any amounts payable in respect of CVRs.

 

(b) CVRs shall not represent
any equity or ownership interest in the Company or any of its Affiliates.

 

    3 

     

    

 

Section 2.05 Ability
to Abandon CVR. A Holder may at any time, at such Holder’s
option, abandon all of such Holder’s remaining rights in a CVR by transferring such CVR to the Company without consideration
therefor. Nothing in this Agreement is intended to prohibit the Company from offering to acquire CVRs for consideration in its
sole discretion.

 

Article
3

THE RIGHTS AGENT

 

Section 3.01 Certain
Duties and Responsibilities.

 

(a) The Rights Agent
shall not have any liability for any actions taken or not taken in connection with this Agreement, except to the extent such liability
arises as a result of the willful misconduct, bad faith or gross negligence of the Rights Agent.

 

(b) The Rights Agent
shall be under no obligation to institute any action, suit or proceeding, or to take any other action likely to result in the
incurrence of material expenses by the Rights Agent, unless the Representative (on behalf of the Holders) shall furnish the Rights
Agent with reasonable security and indemnity for any costs and expenses that may be incurred.

 

Section 3.02 Certain
Rights of Rights Agent.

 

(a) The Rights Agent
undertakes to perform such duties and only such duties as are specifically set forth in this Agreement, and no implied covenants
or obligations shall be read into this Agreement against the Rights Agent.

 

(b) The Rights Agent
may rely and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion,
report, notice, request, direction, consent, order or other paper or document believed by it in good faith to be genuine and to
have been signed or presented by the proper party or parties.

 

(c) Whenever the Rights
Agent shall deem it desirable that a matter be proved or established prior to taking, suffering or omitting any action hereunder,
the Rights Agent may, in the absence of bad faith, gross negligence or willful misconduct on its part, rely upon the written direction
of the Representative.

 

(d) The Rights Agent
may engage and consult with counsel of its selection and the written advice or opinion of such counsel shall be full and complete
authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance
thereon.

 

(e) Any permissive rights
of the Rights Agent hereunder shall not be construed as a duty.

 

(f) The Company agrees
to indemnify the Rights Agent for, and to hold the Rights Agent harmless from and against, any loss, liability, damage or expense
(“Loss”) suffered or incurred by the Rights Agent and arising out of or in connection with Rights Agent’s
performance of its obligations under this Agreement, including the reasonable costs and expenses of defending the Rights Agent
against any claims, charges, demands, actions or suits arising out of or in connection with such performance, except to the extent
such Loss shall have been determined by a court of competent jurisdiction to have resulted from the Rights Agent’s gross
negligence, bad faith or willful misconduct. The Company’s obligations under this Section 3.02(f) to indemnify the
Rights Agent shall survive the resignation or removal of any Rights Agent and the termination of this Agreement. With the Company’s
consent, the Rights Agent’s Loss may be satisfied from the Consideration and deducted from the amounts payable to the Holders
hereunder.

 

    4 

     

    

 

(g) In addition to the
indemnification provided under Section 3.02(f), the Company agrees (i) to pay the fees of the Rights Agent in connection
with the Rights Agent’s performance of its obligations hereunder, as agreed upon in writing by the Rights Agent and the
Company on or prior to the date of this Agreement, and (ii) to reimburse the Rights Agent promptly upon demand for all reasonable
and documented out-of-pocket expenses, including all taxes (other than income, receipt, franchise or similar taxes) and governmental
charges, incurred by the Rights Agent in the performance of its obligations under this Agreement. With the Company’s consent,
the Rights Agent’s fees and expenses may be satisfied from the Consideration and deducted from the amounts payable to the
Holders hereunder.

 

Section 3.03 Resignation
and Removal; Appointment of Successor.

 

(a) The Rights Agent
may resign at any time by giving written notice thereof to the Company and the Holders specifying a date when such resignation
shall take effect, which notice shall be sent at least 60 days prior to the date so specified (or, if earlier, the appointment
of the successor Rights Agent).

 

(b) The Company shall
have the right to remove the Rights Agent at any time by a resolution of the Company’s board of directors specifying a date
when such removal shall take effect. Notice of such removal shall be given by the Company to the Rights Agent, with a copy to
the Representative, which notice shall be sent at least 60 days prior to the date so specified (or, if earlier, the appointment
of the successor Rights Agent).

 

(c) If the Rights Agent
shall resign, be removed or become incapable of acting, the Company shall promptly appoint a qualified successor Rights Agent
by a resolution of the Company’s board of directors. The successor Rights Agent so appointed shall, forthwith upon its acceptance
of such appointment in accordance with this Section 3.03(c) and Section 3.04, become the Rights Agent for all purposes
hereunder.

 

(d) Notwithstanding
anything to the contrary in this Section 3.03, unless consented to in writing by the Representative, the Company shall
not appoint as a successor Rights Agent any person that is not a stock transfer agent, paying agent or escrow agent of national
reputation or the corporate trust department of a commercial bank.

 

Section 3.04 Acceptance
of Appointment by Successor. Every successor Rights Agent appointed
hereunder shall, at or prior to such appointment, execute, acknowledge and deliver to the Company, the Representative and to the
retiring Rights Agent an instrument accepting such appointment and a counterpart of this Agreement, and thereupon such successor
Rights Agent, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties
of the Rights Agent; provided that upon the request of the Company or the successor Rights Agent, such resigning or removed Rights
Agent shall execute and deliver an instrument transferring to such successor Rights Agent all the rights, powers and trusts of
such resigning or removed Rights Agent.

 

    5 

     

    

 

Article
4

COVENANTS

 

Section 4.01 List
of Holders. The Company shall furnish or cause to be furnished to
the Rights Agent and the Representative, in such form as the Company receives from the Company’s transfer agent (or other
agent performing similar services for the Company), the names and addresses of the Holders within 10 Business Days following the
Effective Date.

 

Section 4.02 Payments.
The Company shall deposit with the Rights Agent for payment to the Holders any Consideration it receives from the Buyer Group
pursuant to the terms of the Transfer Agreement, less any applicable
Transaction Expenses, within sixty (60) days of receipt of such Consideration. The Company shall
be entitled to deduct and withhold, or cause to be deducted or withheld, from each such payment otherwise payable pursuant to
this Agreement, such amounts as the Company or any subsidiary of the Company is required to deduct and withhold with respect to
the making of such payment under the Internal Revenue Code of 1986, as amended, or any provision of state, local or non-U.S. tax
law. To the extent that amounts are so withheld or paid over to or deposited with the relevant governmental entity, such withheld
amounts shall be treated for all purposes of this Agreement as having been paid to the Holder in respect of which such deduction
and withholding was made.

 

Section 4.03 Payment
of Transaction Expenses. The Company shall pay the Transaction Expenses when due and be reimbursed therefor from the Consideration
it receives from the Buyer group.

 

Section 4.04 Transfer
Agreement. The Company shall provide, at the request of the Representative, any and all reports received from the Buyer pursuant
to, or in connection with, the Transfer Agreement, and the Company further agrees to enforce, at the request of the Representative,
any and all provisions listed in Section 2 of the Transfer Agreement. At the request of the Representative, Company will inform
the Buyer that it has designated and authorized the Representative to enforce such rights on behalf of the Company.

 

Article
5

THE REPRESENTATIVE

 

Section 5.01 Appointment
of the Representative. By accepting CVRs, the Holders hereby appoint,
authorize and empower the Representative to be the exclusive representative, agent and attorney-in-fact of each Holder, with full
power of substitution, to make all decisions and determinations and to act (or not act) and execute, deliver and receive all agreements,
documents, instruments and consents on behalf of and as agent for each Holder at any time in connection with, and that may be
necessary or appropriate to accomplish the intent and implement the provisions of this Agreement and to facilitate the consummation
of the transactions contemplated hereby, including without limitation for purposes of (i) providing such notices to the Holders
of any information it receives from the Company relating to the Consideration or the Rights Agent that such Representative deems
appropriate, (ii) negotiating and settling, on behalf of the Holders, any dispute that arises under this Agreement after the Effective
Date, (iii) confirming the satisfaction of the Company’s obligations under this Agreement, (iv) negotiating and settling
matters with respect to the amounts to be paid to the Holders pursuant to this Agreement, and (v) representing the Holders in
any actions, claims or rights to recourse provided herein.

 

    6 

     

    

 

Section 5.02 Authority.
The appointment of the Representative by the Holders pursuant to Section
5.01 is coupled with an interest and may not be revoked in whole or in part (including, without limitation, upon the death
or incapacity of any Holder). Subject to the prior qualifications, such appointment shall be binding upon the heirs, executors,
administrators, estates, personal representatives, officers, directors, security holders, successors and assigns of each Holder.
All decisions of the Representative with respect to the transactions contemplated hereby shall be final and binding on all Holders.
The Company and the Rights Agent shall be entitled to rely upon, without independent investigation, any act, notice, instruction
or communication from the Representative and any document executed by the Representative on behalf of any Holder and shall be
fully protected in connection with any action or inaction taken or omitted to be taken in reliance thereon by the Company. The
Representative shall not be responsible for any loss suffered by, or liability of any kind to, the Holders arising out of any
act done or omitted by the Representative in connection with the acceptance or administration of the Representative’s duties
hereunder, unless such act or omission involves gross negligence or willful misconduct on the part of the Representative.

 

Section 5.03 Representative
Liability.

 

(a)  The Representative
shall be authorized and protected and shall not have any liability for, or in respect of any actions taken, suffered or omitted
to be taken by it in connection with this Agreement and the exercise and performance of its duties hereunder, except to the extent
such liability is a result of the willful misconduct, bad faith or gross negligence of the Representative (each as determined
by a final, non-appealable judgment of a court of competent jurisdiction). No provision of this Agreement shall require the Representative
to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder or
in the exercise of any of its rights or powers if it believes that repayment of such funds or adequate indemnification against
such risk or liability is not reasonably assured to it.

 

(b)  The Representative
undertakes to perform such duties and only such duties as are specifically set forth in this Agreement, and no implied duties,
covenants or obligations shall be read into this Agreement against the Representative.

 

(c)  The Representative
may rely and shall be authorized and protected in acting or refraining from acting upon any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, power of attorney, endorsement, affidavit, letter or
other paper or document believed by it to be genuine and to have been signed or presented by an officer of the proper party or
parties or upon any written instructions or statements from the Company or the Rights Agent with respect to any matter relating
to its acting as Representative. The Representative shall not be deemed to have knowledge of any event of which it was supposed
to receive notice thereof hereunder but as to which no notice was provided, and the Representative shall be fully protected and
shall incur no liability for failing to take any action in connection therewith unless and until it has received such notice.

 

(d)  Whenever the Representative
shall deem it necessary or desirable that any fact or matter be proved or established before taking, suffering or omitting any
action hereunder, the Representative may request and rely upon an Officer’s Certificate from the Company with respect to
such fact or matter; and such certificate shall be full and complete authorization and protection to the Representative and the
Representative shall incur no liability for or in respect of any action taken, suffered or omitted to be taken by it under the
provisions of this Agreement in reliance upon such certificate. The Representative shall be fully authorized and protected in
relying upon the most recent instructions received from the Company. In the event the Representative believes any ambiguity or
uncertainty exists hereunder or in any notice, instruction, direction, request or other communication, paper or document received
by the Representative hereunder, the Representative, may, in its sole discretion, refrain from taking any action, and shall be
fully protected and shall not be liable in any way to the Company or any other person for refraining from taking such action,
unless the Representative receives written instructions from the Company that eliminates such ambiguity or uncertainty to the
satisfaction of the Representative.

 

(e) The Representative
may engage and consult with counsel of its selection and the written advice of such counsel or any opinion of counsel shall be
full and complete authorization and protection to the Representative in respect of any action taken, suffered or omitted to be
taken by it hereunder in reliance thereon in the absence of willful misconduct, bad faith or gross negligence on the part of the
Representative (as determined by a final, non-appealable judgment of a court of competent jurisdiction).

 

    7 

     

    

 

(f)  The permissive
rights of the Representative to do things enumerated in this Agreement shall not be construed as a duty.

 

(g)  The Representative
shall not have any liability for or be under any responsibility in respect of the validity of this Agreement or the execution
and delivery hereof; nor shall it be responsible for any breach by the Company of any covenant or failure by the Company to satisfy
conditions contained in this Agreement.

 

(h) The Company agrees
that it will perform, execute, acknowledge and deliver or cause to be performed, executed, acknowledged and delivered all such
further and other acts, instruments and assurances as may reasonably be required or requested by the Representative for the carrying
out or performing by the Representative of its duties under this Agreement.

 

(i)  The Representative
may execute and exercise any of the rights or powers hereby vested in it or perform any duty hereunder either itself or by or
through its attorneys or agents, and the Representative shall not be answerable or accountable for any act, omission, default,
neglect or misconduct of any such attorneys or agents or for any loss to the Company, to the Holders, the Rights Agent or any
other person resulting from any such act, omission, default, neglect or misconduct, absent gross negligence or bad faith in the
selection and continued employment thereof (which gross negligence or bad faith must be determined by a final, non-appealable
judgment of a court of competent jurisdiction) and, in the event of arbitration or litigation in connection with the matters contemplated
herein, the Representative may, but shall not be obligated to, engage and consult with tax experts, valuation firms and other
experts and third parties that it, in its sole and absolute discretion, deems appropriate or necessary to enable it to discharge
its duties hereunder.

 

Section 5.04 Successor
Representative.

 

(a)  The Representative
and any successor Representative may resign and be discharged from its duties under this Agreement at any time by giving written
notice thereof to the Company, specifying a date when such resignation shall take effect, which notice shall be sent at least
thirty (30) days before the date so specified.

 

(b)  The Acting Holders
may remove the Representative or any successor Representative at any time by giving written notice thereof to the Representative
specifying a date when such removal shall take effect, which notice shall be sent at least thirty (30) days before the date so
specified. In the event that the Representative dies, becomes unable to perform his or her responsibilities hereunder or resigns
or is removed from such position, the Acting Holders shall be authorized to and shall select another representative to fill such
vacancy and such substituted representative shall be deemed to be the Representative for all purposes of this Agreement. The newly-appointed
Representative shall notify the Company, the Rights Agent and any other appropriate person in writing of his or her appointment,
provide evidence that the Acting Holders approved such appointment and provide appropriate contact information for purposes of
this Agreement. The Company and the Rights Agent shall be entitled to rely upon, without independent investigation, the identity
and validity of such newly-appointed Representative as set forth in such written notice. In the event that within thirty (30)
days after the Representative dies, becomes unable to perform his or her responsibilities hereunder or resigns or is removed from
such position and no successor Representative has been so selected, the Company shall cause the Rights Agent to notify the person
holding the largest quantity of the outstanding CVRs (and who is not the Company or any Affiliate of the Company) that such person
is the successor Representative, and shall be the successor Representative hereunder. If such person notifies the Rights Agent
in writing that such person declines to serve, the Rights Agent shall forthwith notify the person holding the next-largest quantity
of the outstanding CVRs (and who is not the Company or any Affiliate of the Company) that such next-largest-quantity person is
the successor Representative, and such next-largest-quantity person shall be the successor Representative hereunder. The Holders
are intended third party beneficiaries of this Section 5.06. If a successor Representative is not appointed pursuant to
the preceding procedure within sixty (60) days after the Representative dies, becomes unable to perform his or her responsibilities
hereunder or resigns or is removed from such position, the Company shall appoint a successor Representative.

 

    8 

     

    

 

Article
6

AMENDMENTS

 

Section 6.01 Amendments
Without Consent of Holders.

 

(a)  The Company, the
Representative and Rights Agent at any time or from time to time, without the consent of any of the Holders, may enter into one
or more amendments hereto for any of the following purposes:

 

(i) to evidence the
appointment of another person as a successor Rights Agent and the assumption by any successor Rights Agent of the covenants and
obligations of the Rights Agent herein in accordance with the provisions hereof;

 

(ii) to
add to the covenants of the Company such further covenants, restrictions, conditions or provisions as the Company shall determine
to be for the protection of the Holders;

 

(iii) to
cure any ambiguity, to correct or supplement any provision herein that may be defective or inconsistent with any other provision
herein, or to make any other provisions with respect to matters or questions arising under this Agreement; or

 

(iv) as
may be necessary or appropriate to ensure that CVRs are not subject to registration under the Securities Act or the Exchange Act.

 

(b)  Promptly after
the execution by the parties of any amendment pursuant to the provisions of this Section 6.01, the Company shall mail (or
cause the Rights Agent to mail) a notice thereof by first class mail to the Holders at their addresses as set forth on the CVR
Register, setting forth in general terms the substance of such amendment.

 

Section 6.02 Amendments
with Consent of Holders.

 

(a)  In addition to
any amendments to this Agreement that may be made without the consent of any Holder or the Rights Agent pursuant to Section
6.01, with the consent of the Acting Holders, whether evidenced in writing or taken at a meeting of the Acting Holders, the
Representative, the Company, and the Rights Agent may enter into one or more amendments hereto for the purpose of adding, eliminating
or changing any provisions of this Agreement, even if such addition, elimination or change is adverse to the interests of the
Holders.

 

(b)  Promptly
after the execution by the parties of any amendment pursuant to the provisions of this Section 6.02, the Company shall
mail (or cause the Rights Agent to mail) a notice thereof by first class mail to the Holders at their addresses as set forth on
the CVR Register, setting forth in general terms the substance of such amendment.

 

Section 6.03 Execution
of Amendments. In executing any amendment permitted by this Article
6, the Representative and the Rights Agent shall be entitled to receive, and shall be fully protected in relying upon Officer’s
Certificates of the Company stating that its execution of such amendment is authorized or permitted by this Agreement.

 

    9 

     

    

 

Section 6.04 Effect
of Amendments. Upon the execution of any amendment under this Article 6, this Agreement shall be modified in accordance therewith,
such amendment shall form a part of this Agreement for all purposes and every Holder shall be bound thereby.

 

Article
7

MISCELLANEOUS

 

Section 7.01 Notices.
All notices, requests and other communications to the parties hereunder
shall be in writing (including facsimile transmission) and shall be given,

 

if to the Rights Agent, to:

 

	 	Computershare	 	 
	 	480 Washington Blvd., Jersey City, NJ 07310 USA 
	 	Telephone:	201 680 2388 	 
	 	Facsimile: 	201 680 4606	 
	 	Attention:	Mr. Brian Cossin, Relationship Management 	 
	 	E-mail:	brian.cossin@computershare.com

 

if to the Company, to:

 

Quoin Pharmaceuticals Ltd.

42127 Pleasant Forest Court

Ashburn, VA 20148

Attention: Michael Myers, Ph.D.

Email: mmyers@quoinpharma.com

 

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

 

Dentons US LLP

1221 Avenue of the Americas

New York, NY 10020-1089

Email: jeffrey.baumel@dentons.com

ilan.katz@dentons.com

Attention: Jeffrey A. Baumel,
Esq., Ilan Katz, Esq.

 

if to the Representative, to:

 

or to such other address or facsimile
number as such party may hereafter specify for the purpose by written notice to the other parties hereto. All such notices, requests
and other communications shall be deemed received on the date of receipt by the recipient thereof if received prior to 5:00 p.m.
on a Business Day in the place of receipt. Otherwise, any such notice, request or communication shall be deemed to have been received
on the next succeeding Business Day in the place of receipt.

 

Section 7.02 Notice
to Holders. All notices, requests and communications required to
be given to the Holders shall be given (unless otherwise herein expressly provided) in writing and mailed, first-class postage
prepaid, to each Holder affected by such event, at his, her or its address set forth in the CVR Register, not later than the latest
date, and not earlier than the earliest date, prescribed for the giving of such notice. In any case where notice to the Holders
is given by mail, neither the failure to mail such notice, nor any defect in any notice so mailed, to any particular Holder shall
affect the sufficiency of such notice with respect to other Holders.

 

    10 

     

    

 

Section 7.03 Entire
Agreement. This Agreement and the Transfer Agreement constitute the entire agreement between the parties with respect to the
subject matter of this Agreement and supersede all prior agreements and understandings, both written and oral, among or between
any of the parties with respect to the subject matter of this Agreement.

 

Section 7.04 Successors
and Assigns. This Agreement shall be binding upon, and shall be enforceable
by and inure solely to the benefit of, the parties hereto and their respective successors and assigns. The Rights Agent may not
assign this Agreement without the Company’s consent. Neither the Representative nor the Company may assign this Agreement
without the prior written consent of the Acting Holders. Any attempted assignment of this Agreement or any of such rights in violation
of this Section 7.04 shall be void and of no effect.

 

Section 7.05 Benefits
of Agreement. Nothing in this Agreement, express or implied, shall
give to any person (other than the parties hereto, the Holders and their permitted successors and assigns hereunder) any benefit
or any legal or equitable right, remedy or claim under this Agreement or under any covenant or provision herein contained, all
such covenants and provisions being for the sole benefit of the parties hereto, the Holders and their permitted successors and
assigns. The Holders shall have no rights hereunder except as are expressly set forth herein and in the Transfer Agreement.

 

Section 7.06 Governing
Law. This Agreement and CVRs shall be governed by and construed in
accordance with the laws of the State of Delaware without regards to its rules of conflicts of laws.

 

Section 7.07 Jurisdiction.
The parties hereto agree that any suit, action or proceeding seeking
to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement or the transactions contemplated
hereby (whether brought by any party or any of its Affiliates or against any party or any of its Affiliates) shall be brought
in the Delaware Court of Chancery or, if such court shall not have jurisdiction, any federal court located in the State of Delaware
or other Delaware state court, and each of the parties hereby irrevocably consents to the jurisdiction of such courts (and of
the appropriate appellate courts therefrom) in any such suit, action or proceeding and irrevocably waives, to the fullest extent
permitted by law, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding
in any such court or that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.
Process in any such suit, action or proceeding may be served on any party anywhere in the world, whether within or without the
jurisdiction of any such court. Without limiting the foregoing, each party agrees that service of process on such party as provided
in Section 7.01 shall be deemed effective service of process on such party.

 

Section 7.08 WAIVER
OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

Section 7.09 Severability
Clause. In the event that any provision of this Agreement, or the application of any such provision to any person or set of
circumstances, shall for any reason be determined to be invalid, unlawful, void or unenforceable to any extent, the remainder
of this Agreement, and the application of such provision to persons or circumstances other than those as to which it is determined
to be invalid, unlawful, void or unenforceable, shall not be impaired or otherwise affected and shall continue to be valid and
enforceable to the fullest extent permitted by applicable law. Upon such a determination, the parties shall negotiate in good
faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable
manner in order that the transactions contemplated hereby be consummated as originally contemplated to the fullest extent possible.

 

    11 

     

    

 

Section 7.10 Counterparts;
Effectiveness. This Agreement may be signed in any number of counterparts, each of which shall be an original, with the same
effect as if the signatures thereto and hereto were upon the same instrument. This Agreement shall become effective when each
party hereto shall have received a counterpart hereof signed by the other party hereto. Until and unless each party has received
a counterpart hereof signed by the other party hereto, this Agreement shall have no effect and no party shall have any right or
obligation hereunder (whether by virtue of any other oral or written agreement or other communication).

 

Section 7.11 Termination.
This Agreement shall be terminated and of no force or effect, and the parties hereto shall have no liability hereunder, upon delivery
to the Holders of their pro rata share of the last portion of the Consideration payable under the Transfer Agreement. Sections
3.02, 5.03, 5.04 and Article 7, shall survive the expiration or termination of this Agreement.

 

Section 7.12 Construction.

 

(a) For purposes of
this Agreement, whenever the context requires: singular terms shall include the plural, and vice versa; the masculine gender shall
include the feminine and neuter genders; the feminine gender shall include the masculine and neuter genders; and the neuter gender
shall include masculine and feminine genders.

 

(b) As
used in this Agreement, the words “include” and “including,” and variations thereof, shall not be deemed
to be terms of limitation, but rather shall be deemed to be followed by the words “without limitation.”

 

(c) The
bold-faced headings contained in this Agreement are for convenience of reference only, shall not be deemed to be a part of this
Agreement and shall not be referred to in connection with the construction or interpretation of this Agreement.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT
BLANK]

 

    12 

     

    

 

IN WITNESS WHEREOF, each of the
parties has caused this Agreement to be executed on its behalf by its duly authorized officers as of the day and year first above
written.

 

	 	Cellect Biotechnology, Ltd.
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 
	 	Computershare
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 
	[REPRESENTATIVE]

 

	 	 

 

 

13

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00324-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00324-of-00352.parquet"}]]