Document:

China Information Security Technology, Inc.: Exhibit 10.1 - Prepared
   by TNT Filings Inc.

	

Share Purchase Agreement
	

Exhibit 10.1

CHINA PUBLIC SECURITY HOLDINGS LIMITED 

TOPWELL TREASURE LTD. 

RITA LEUNG KWAI FONG 

AND 

CHINA INFORMATION SECURITY TECHNOLOGY, INC. 

  
	
 
	
AGREEMENT
	
	
 
	
	
RELATING TO
	
	
 
	
	
THE SALE AND PURCHASE OF THE
	
	
100% OF THE ISSUED SHARE CAPITAL
	
	
OF TOPWELL TREASURE LTD.
	
	
 

  

1

	
    Share Purchase Agreement 

	 TABLE OF
      CONTENTS  
	  	  	  
	1. 	DEFINITIONS AND
      INTERPRETATION 	2 
	2. 	SALE AND PURCHASE OF SHARES
    	5 
	3. 	CONSIDERATION 	5 
	4. 	COMPLETION 	7 
	5. 	WARRANTIES BY THE
      SELLER 	7 
	6. 	WARRANTIES BY CIST 	10 
	CIST warrants
      that: 	10 
	7. 	WARRANTIES BY THE PURCHASER
    	11 
	The Purchaser
      warrants that: 	11 
	8. 	PURCHASER'S RIGHT TO
      RESCIND 	11 
	9. 	SELLER'S
      COVENANTS 	12 
	10. 	FURTHER ASSURANCE 	14 
	11. 	INFORMATION
    	14 
	12. 	ANNOUNCEMENTS 	14 
	13. 	COSTS 	14 
	14. 	SUCCESSORS AND ASSIGNMENT
    	15 
	15. 	ENTIRE
      AGREEMENT 	15 
	16. 	VARIATIONS 	16 
	17. 	WAIVER 	16 
	18. 	AGREEMENT CONTINUES IN
      FORCE 	16 
	19. 	SEVERABILITY 	16 
	20. 	NOTICES 	16 
	21. 	COUNTERPARTS 	18 
	22. 	GOVERNING LAW AND DISPUTE
      RESOLUTION 	18 
	23. 	LANGUAGE
	18 
	SCHEDULE 1 	1 
	SCHEDULE 2
	2 
	SCHEDULE 3 	18 
	SCHEDULE 4
	21
  

1

	

Share Purchase Agreement
	

THIS AGREEMENT (“Agreement”) is made on August 28, 2009. 

BY AND AMONG: 

	
(1) 		
China Public Security Holdings Limited, a company registered in the British Virgin Islands with company number 1005693, whose registered office is at P.O. Box 957, Offshore Incorporations
Centre, Road Town, Tortola, British Virgin Islands. (“ Purchaser “);

	
	 	 
	
(2) 		
Rita Kwai Fong Leung, a citizen of the Hong Kong Special Administrative Region of the People’s Republic of China. (“Seller”);

	
	 	 
	
(3) 		
Topwell Treasure Ltd., a limited company registered in Hong Kong with company number 1293603, whose registered office is UNIT H 28/F, BLK 1, THE APEX, 33 WO YI HOP RD, KWAI CHUNG, NT, Hong
Kong (“Company”); and

	
	 	 
	
(4) 		
China Information Security Technology, Inc., a Nevada corporation, with tax identification number E0089792008-0, whose principal executive offices are located at 21st Floor, Everbright Bank
Building, Zhuzilin, Futian District, Shenzhen, Guangdong, 518040 People’s Republic of China (“CIST”).

	

Each a “Party” to this Agreement and together the “Parties.” 

BACKGROUND 

	
A 		
The Company holds 100% of the shares of a Shenzhen based company, Huipu Electronics (Shenzhen) Co., Ltd. (“Subsidiary”). Further information relating to the
Company is set out in Schedule 1 hereto.

	
	 	 
	
B 		
The Seller is the legal and beneficial owner of 100% of the ordinary shares of the Company (the “Shares”).

	
	 	 
	
C 		
The Seller has agreed to sell to the Purchaser, and the Purchaser has agreed to purchase from the Seller, the Shares for the consideration and upon the terms and conditions set out in this Agreement.

	
	 	 
	
D 		
CIST is the parent company of the Purchaser, who will issue to the Seller a certain amount of newly issued shares of the common stock, $0.01 par value, of CIST (“CIST Common
Stock”), as set out in this Agreement as part of the consideration for the purchase of the Shares.

	

1

	

Share Purchase Agreement
	

IT IS HEREBY AGREED: 

	
1. 		
DEFINITIONS AND INTERPRETATION

	
	 	 	 	 
		
1.1 		
In this Agreement the following words and expressions will (except where the context otherwise requires) have the following meanings:

	
	 	 	 	 
			
“Account” means the Company’s financial statements provided by the Seller to the Purchaser;

	
	 	 	 	 
			
“Account Date” means June 30, 2009;

	
	 	 	 	 
			
“Business Day” means a day other than a Saturday or Sunday on which banks are open for commercial business in Hong Kong;

	
	 	 	 	 
			
“Business Intellectual Property” means all Intellectual Property used, or likely or required to be used, by the Company or any member of the Group in, or in connection with, its
business;

	
	 	 	 	 
			
“Completion” means the performance of all the obligations of the parties to this Agreement set out in clause 4;

	
	 	 	 	 
			
“Completion Date” means October 1, 2009, or such other date being not later than October 31, 2009 as is agreed in writing by the parties;

	
	 	 	 	 
			
“Confidential Information” means information (however stored) relating to or connected with the business, customers or financial or other affairs of the Company or any member of
the Group details of which are not in the public domain including, without limitation, information concerning or relating to:

	
	 	 	 	 
			
(a) 		
the Business Intellectual Property and any other property of the Company or any member of the Group in the nature of intellectual property;

	
	 	 	 	 
			
(b) 		
any technical processes, future projects, business development or planning, commercial relationships and negotiations; and

	
	 	 	 	 
			
(c) 		
the marketing of goods or services including, without limitation, customer, client and supplier lists, price lists, sales targets, sales statistics, market share statistics, market research reports and surveys and
advertising or other promotional materials and details of contractual arrangements and any other matters concerning the clients or customers of or other persons having dealings with the Company or any member of the Group. 

	

2

	

Share Purchase Agreement
	

“Consideration” means the consideration for the Shares set out in clause 3. 

“Disclosed” means fully, fairly and specifically disclosed to the Purchaser in the Disclosure Letter or, for the purposes of clauses 5.7.3 and 8, in writing to the Purchaser, with sufficient clarity
and detail to enable the Purchaser to identify clearly and accurately the nature, scope and effect of the matter disclosed; 

“Disclosure Letter” means the letter of even date with this Agreement from the Seller to the Purchaser relating to the Warranties together with any documents annexed to it; 

“Encumbrance” means a mortgage, charge, pledge, lien, option, restriction, equity, right to acquire, right of pre-emption, third party right or interest, other encumbrance or security interest of any
kind or any other type of preferential arrangement (including, without limitation, a title transfer and retention arrangement) having similar effect;    

“GAAP” means the generally accepted accounting principle in the United States of America. 

“Group” means the Company and the Subsidiary from time to time and references to a “member of the Group” or a “Group member” will be construed
accordingly; 

“Hong Kong” means the Hong Kong Special Administrative Region of the People's Republic of China; 

“Intellectual Property” includes patents, inventions, know-how, trade secrets and other confidential information, registered designs, copyrights, data, database rights, design rights, rights
affording equivalent protection to copyright, database rights and design rights, semiconductor topography rights, trade marks, service marks, logos, domain names, e-mail address names, business names, trade names, moral rights, and all registrations
or applications to register any of the aforesaid items, rights under licences, consents, orders, statutes or otherwise in relation to any of the aforesaid items, rights in the nature of any of the aforesaid items, in any country or jurisdiction,
rights in the nature of unfair competition rights and rights to sue for passing-off; 

3

	

Share Purchase Agreement
	

	 		
“PRC” means the People’s Republic of China, but excluding Hong Kong, Macao and Taiwan for the purpose of this Agreement;

	
	 	 	 	 	 
	 		
“RMB” means Renminbi, the lawful currency of the PRC;

	
	 	 	 	 	 
	 		
“Shares” means the 100% of the issued and allotted ordinary shares in the capital of the Company;

	
	 	 	 	 	 
	 		
“Subsidiary” means the Company’s wholly-owned Chinese subsidiary Huipu Electronics (Shenzhen) Co., Ltd.;

	
	 	 	 	 	 
	 		
“Transaction” means the sale and purchase of the Shares under this Agreement;

	
	 	 	 	 	 
	 		
“US$” means US Dollars, the lawful currency for the time being of the United States of America; and

	
	 	 	 	 	 
	 		
“USA” means the United States of America;

	
	 	 	 	 	 
	 		
“Warranties” means the representations, warranties and undertakings set out in clause 5, clause 6, clause 7 and Schedule 2 and “Warranty” will mean any of them.

	
	 	 	 	 	 
	
 	
1.2 		
In this Agreement where the context allows:

	
	 	 	 	 	 
	 		
1.2.1 		
reference to a statutory provision includes reference to:

	
	 	 	 	 	 
	 			
1.2.1.1 		
any order, regulation, statutory instrument or other subsidiary legislation at any time made under it for the time being in force (whenever made);

	
	 	 	 	 	 
	 			
1.2.1.2 		
any modification, amendment, consolidation, re-enactment or replacement of it or provision of which it is a modification, amendment, consolidation, re-enactment or replacement except to the extent that any
modification, amendment, consolidation, re- enactment or replacement made after the date of this Agreement would increase the liability of any of the parties hereto;

	
	 	 	 	 	 
	 		
1.2.2 		
reference to a clause, schedule or paragraph is to a clause, schedule or a paragraph of a schedule of or to this Agreement respectively;

	

4

	

Share Purchase Agreement
	

	
 	
 	
1.2.3 		
reference to the parties to this Agreement includes their respective successors, permitted assigns and personal representatives;

	
	 	 	 	 
	
 	
 	
1.2.4 		
reference to any party to this Agreement comprising more than one person includes each person constituting that party;

	
	 	 	 	 
	
 	
 	
1.2.5 		
reference to any gender includes the other genders;

	
	 	 	 	 
	
 	
 	
1.2.6 		
reference to persons includes bodies corporate or unincorporated;

	
	 	 	 	 
	
 	
 	
1.2.7 		
reference to any professional firm or company includes any firm or company effectively succeeding to the whole, or substantially the whole, of its practice or business;

	
	 	 	 	 
	
 	
 	
1.2.8 		
the index, headings and any descriptive notes are for ease of reference only and will not affect the construction or interpretation of this Agreement;

	
	 	 	 	 
	
 	
 	
1.2.9 		
this Agreement incorporates the schedules to it; and

	
	 	 	 	 
	
 	
 	
1.2.10 		
for the purposes of this clause, “control”, in relation to a body corporate, means the holding of more than 50% of the voting power at general meetings of that body corporate or being in a position to
control the composition of a majority of the board of directors of that body corporate and in relation to a partnership, means the right to a share of more than one-half of the assets, or of more than one-half of the income, of the
partnership.

	

	
2. 		
SALE AND PURCHASE OF SHARES

	
	 	 	 
		
2.1 		
The Seller will sell the Shares with full title guarantee and the Purchaser will, in reliance on the Warranties, purchase the Shares free from all Encumbrance and together with all rights of any nature which are now
or which may at any time become attached to them or accrue in respect of them including all dividends and distributions declared paid or made in respect of them on or after the date of this Agreement.

	
	 	 	 
	
3. 		
CONSIDERATION

	
	 	 	 
		
The Consideration payable by the Purchaser for the purchase of the Shares shall consist of:

	

5

	
    Share Purchase Agreement 

	 	3.1 	
      US$8,000,000 shall be paid in cash with
      RMB54,640,000, which will be changed into RMB by the exchange
      rate(1US$ = 6.83RMB)and shall be remitted in full amount to the
      bank account as designated by the Seller, payable on or before November
      28, 2009;

	 	 	 
	 	3.2 	
      CIST, the parent company of the Purchaser,
      shall, within 90 days following the Completion Date, issue and deliver to
      the Seller or her designee(s), certificates of CIST representing 1,101,930
      shares of CIST Common Stock valued at Four Million United States Dollars
      (US$4,000,000), or approximately $3.63 per share (the average of the
      closing price of the Company’s common stock as quoted by the NASDAQ
      Capital Market for the 20 trading days prior to August 28, 2009);
      and

	 	 	 
	 	3.3 	
      CIST agrees to issue to the Seller or her
      designee(s), within 90 days after the filing of CIST’s annual report on
      Form 10-K for the period with the Securities and Exchange Commission (the
      “SEC”), the corresponding
      amounts of newly issued shares of CIST Common Stock, valued at $3.63 per
      share (the average of the closing price of the Company’s common stock as
      quoted by the NASDAQ Capital Market for the 20 trading days prior to
      August 28, 2009), if the Company meets or exceeds the audited consolidated
      after-tax net income (“ATNI”) thresholds outlined below:

	
    Year Ending 
	
    ATNI Thresholds

	
    CIST Common 

	
    December 31, 
	
    (in USD) 
	
    Stock Issuable 

	
    2010 
	
    Equal to or greater than $4,000,000 
	
    413,223 

	
    
	
    Equal to or greater than
      3,600,000 but less than $4,000,000 
	
    371,900 

	
    
	
    Equal to or
      greater than $3,200,000 but less
      than $3,600,000 
	
    330,578
    

	
      
	
    Less than $3,200,000 
	
    - 0 - 

	
    2011 
	
    Equal to or greater than $5,200,000 
	
    413,223 

	
    
	
    Equal to or greater than
      $4,680,000 but less than
      $5,200,000 
	
    371,900 

	
    
	
    Equal to or
      greater than $4,160,000 but less than $4,680,000 
	
    330,578
    

	
      
	
    Less than $4,160,000 
	
    - 0 - 

	
    2012 
	
    Equal to or greater than $6,760,000 
	
    275,484 

	
    
	
    Equal to or greater than
      $6,084,000 but less than
      $6,760,000 
	
    247,936 

	
    
	
    Equal to or
      greater than $5,408,000 but less
      than $6,084,000 
	
    220,387
    

	 	
    
Less than $5,408,000 
	
- 0 -
    

6

	

Share Purchase Agreement
	

	
4. 		
COMPLETION

	
	 	 	 	 
		
4.1 		
Completion will take place in Hong Kong on the Completion Date when the provisions of Schedule 3 have been complied with.

	
	 	 	 	 
		
4.2 		
The Purchaser will not be obliged to complete the purchase of the Shares under this Agreement unless the Seller complies fully with its obligations under Schedule 3 and unless the purchase of all the Shares is
completed simultaneously.

	
	 	 	 	 
		
4.3 		
If Completion does not take place on the Completion Date because the Seller fails to comply with any of its obligations under Schedule 3, the Purchaser may, by prior written notice to the Seller:

	
	 	 	 	 
			
4.3.1 		
proceed to Completion to the extent reasonably practicable;

	
	 	 	 	 
			
4.3.2 		
postpone Completion to a date not more than sixty (60) Business Days after the Completion Date; or

	
	 	 	 	 
			
4.3.3 		
terminate this Agreement.

	
	 	 	 	 
		
4.4 		
If the Purchaser postpones Completion to another date in accordance with clause 4.3.2, the provisions of this Agreement shall apply as if that other date were the Completion Date.

	
	 	 	 	 
		
4.5 		
If the Purchaser terminates this Agreement pursuant to clause 4.3.3 each party's further rights and obligations will cease immediately on termination, but termination will not affect a party's accrued rights and
obligations as at the date of termination.

	
	 	 	 	 
	
5. 		
WARRANTIES BY THE SELLER

	
	 	 	 	 
		
5.1 		
The Seller warrants and undertakes that, at the date of this Agreement, each of the statements set out in Schedule 2 is true, accurate and complete in all respects and not misleading and will be true and accurate in
all respects and not misleading at all times after the date of this Agreement up to and including the Completion Date.

	
	 	 	 	 
		
5.2 		
In addition to the warranties as set out in Schedule 2, the Seller further warrants that:

	

7

	

Share Purchase Agreement
	

	
 	
 	
5.2.1 		
save and except the liabilities and debts the Seller has otherwise disclosed to the Purchaser, there are no other liabilities, debts, claims, expenses, charges, costs, outstanding against and payable by the Company to
any third party, including those owed to related companies, financial institutions, banks, and other related interests and the Seller shall fully indemnify and keep indemnified the Purchaser against any such liabilities.

	
	 	 	 	 
	
 	
 	
5.2.2 		
the Company is not in default of any contracts, agreements or legal obligations pursuant to which it may be subject to any claims, proceedings, action or be liable to any charges, costs, expenses, damages or other
liabilities.

	
	 	 	 	 
	
 	
 	
5.2.3 		
the Seller warrants to the Purchaser that there are no outstanding liabilities or debts owed to any of the employees of the Company, nor are any of the employees responsible for any liabilities and debts for which the
Company may become liable, and shall indemnify the Purchaser for any expenses, costs, charges (including legal fees), liabilities incurred or claims, proceedings, actions taken against the Purchaser by any third party or employee of the Company for
any such liabilities or debts.

	

	
 	
5.3 		
The Seller acknowledges that the Purchaser is entering into this Agreement in reliance on each Warranty which has also been given as a representation and with the intention of inducing the Purchaser to enter into this
Agreement and that the Purchaser has been induced to enter into this Agreement on the basis of and in full reliance upon them.

	
	 	 	 
	
 	
5.4 		
Each of the Warranties is to be construed as a separate and independent warranty and (except where this Agreement provides otherwise) will not be limited or restricted by reference to or inference from any other term
of this Agreement or any other Warranty.

	
	 	 	 
	
 	
5.5 		
The rights and remedies of the Purchaser in respect of any breach of any of the Warranties will survive Completion.

	
	 	 	 
	
 	
5.6 		
The Seller waives and may not enforce any right which it may have in respect of any misrepresentation, inaccuracy or omission in or from any information or advice supplied or given by the Company or its officers or
employees in enabling the Seller to give the Warranties and any representations or to prepare the Disclosure Letter.

	

8

	

Share Purchase Agreement
	

	
 	
5.7 		
Between the execution of this Agreement and Completion the Seller agrees that it will:

	
	 	 	 	 
	 		
5.7.1 		
procure that neither the Seller nor the Company nor any member of the Group will allow or procure any act or omission which would constitute a breach of any of the Warranties;

	
	 	 	 	 
	 		
5.7.2 		
procure that the Company complies with the provisions of Schedule 4; and

	
	 	 	 	 
	 		
5.7.3 		
immediately disclose in writing to the Purchaser any event or circumstance which may arise or become known to the Seller which would be a breach of clause 5.7.2 or which constitutes a breach of or is materially
inconsistent with any of the Warranties or which might make any of them inaccurate or misleading or which has or is likely to have an adverse effect on the financial position or business prospects of the Company or which is otherwise material to be
known by a purchaser for value of the Shares.

	
	 	 	 	 
	
 	
5.8 		
The Warranties will not be deemed in any way modified or discharged by reason of any investigation made or to be made by or on behalf of the Purchaser or by reason of any information relating to the Company of which
the Purchaser has knowledge (actual, implied or constructive) except that the Warranties will be qualified by such information as is Disclosed.

	
	 	 	 	 
	
 	
5.9 		
If on or before the Completion Date the Purchaser considers that the Seller is in breach of any of the Warranties or any other provision of this Agreement, the Purchaser may by prior written notice to the Seller elect
to proceed to Completion or terminate this Agreement.

	
	 	 	 	 
	 	5.10 	
If the Purchaser terminates this Agreement pursuant to clause 5.9:
	 	 	 	 
	 		
5.10.1	
the Seller indemnifies the Purchaser against all costs incurred by it relating to the negotiation, preparation, execution or termination of this Agreement or the satisfaction of any of the Conditions; and

	 	 	 	 	 
	 		
5.10.2	
each party's further rights and obligations will cease immediately on termination, but termination will not affect a party's accrued rights and obligations as at the date of termination.

9

	

Share Purchase Agreement
	

	
 	
5.11 		
If there is any breach or non-fulfilment of any of the Warranties resulting in:

	
	 	 	 	 
	 		
5.11.1 		
the value of any of the Company's assets being or becoming less than it would have been had the relevant circumstances been as so warranted; or

	
	 	 	 	 
	 		
5.11.2 		
the Company having incurred or incurring any liability or an increase in a liability which it would not have incurred had the relevant circumstances been as so warranted;

	
	 	 	 	 
	 		
then the Seller agrees to pay to the Purchaser on demand (at the option of the Purchaser) an amount equal to either:

	
	 	 	 	 
	 		
5.11.3 		
the reduction in value of the assets or (as the case may be) the liability or increased liability incurred by the Company as a result of such a breach or non-fulfilment of any of the Warranties; or

	
	 	 	 	 
	 		
5.11.4 		
an amount equal to the reduction caused in the value of the Shares .

	

	
 	
5.12 		
The Seller agrees to indemnify the Purchaser in full for and against all costs (including legal costs on a full indemnity basis) and expenses incurred by the Purchaser either before or after the commencement of any
action in connection with:

	
	 	 	 	 
	 		
5.12.1 		
the settlement of any claim that any of the Warranties has been breached or is untrue, inaccurate or misleading;

	
	 	 	 	 
	 		
5.12.2 		
any legal proceedings arising out of or in connection with any claim for breach of Warranty in which judgment is given in favour of the Purchaser; or

	
	 	 	 	 
	 		
5.12.3 		
the enforcement of any such settlement or judgment.

	
	 	 	 	 
	
 	
5.13 		
The rights of the Purchaser under clauses 5.11 and 5.12 will be in addition and without prejudice to any other right or remedy available to it under this Agreement or otherwise.

	

	
6. 		
WARRANTIES BY CIST

	
	 	 
		
CIST warrants that:

	

10

	

Share Purchase Agreement
	

	
 	
6.1 		
It has and shall have full power and authority to enter into and perform this Agreement which constitutes binding obligations on it in accordance with the terms;

	
	 	 	 
	
 	
6.2 		
CIST shall issue to the Seller or her designee(s), within 90 days as of the Completion Date, an aggregate of 1,101,930 CIST Common Stock, free from all Encumbrance; and

	
	 	 	 
	
 	
6.3 		
CIST shall issue to the Seller or her designee(s), within 90 days as of the filing of its annual report on Form 10-K with the SEC for the applicable period, up to an aggregate of 1,101,930 shares of Common Stock,
issuable in connection with the Company’s achievement of the performance thresholds set forth in Section 3.3 of this Agreement.

	

	
7. 		
WARRANTIES BY THE PURCHASER

	
	 	 	 
		
The Purchaser warrants that:

	
	 	 	 
		
7.1 		
It has and shall have full power and authority to enter into and perform this Agreement which constitutes binding obligations on it in accordance with the terms;

	
	 	 	 
		
7.2 		
Its performance of this Agreement does not constitute any breach or violation of any contract or agreement to which it is a party;

	
	 	 	 
		
7.3 		
It shall pay the Consideration to the Seller in accordance with the terms set out in clause 3 herein without delay;

	
	 	 	 
		
7.4 		
It shall cause its parent company CIST to issue, within 90 days as of the Completion Date, the 1,101,930 shares in the manner as specified in clause 6.2 to the Seller and its designee(s); and

	
	 	 	 
		
7.5 		
It shall cause its parent company CIST to issue to the Seller or her designee(s), within 90 days as of the filing of its annual report on Form 10-K with the SEC for the applicable period, up to an aggregate of
1,101,930 shares of Common Stock, issuable in connection with the Company’s achievement of the performance thresholds set forth in Section 3.3 of this Agreement.

	
	 	 	 
	
8. 		
PURCHASER'S RIGHT TO RESCIND

	
	
 	
 
	
 	
If the Seller discloses any event or circumstance pursuant to clause 5.7.3 or if there is a breach of any of the Warranties or a breach or non-fulfilment of any other term of this Agreement by the Seller, the
Purchaser will be entitled, in addition and without prejudice to any other right or remedy available to it, to rescind this Agreement without any liability to any other party whereupon the Seller must indemnify the Purchaser in full for and against
all costs and expenses incurred or suffered by the Purchaser (including but not limited to all legal expenses and other professional fees on a full indemnity basis) in connection with the negotiation, preparation and rescission of this
Agreement.

11

	

Share Purchase Agreement
	

	
9. 		
SELLER'S COVENANTS

	
	 	 	 	 
		
9.1 		
The Seller undertakes to and covenants with the Purchaser that (except with the consent in writing of the Purchaser) it will not at any time after Completion:

	
	 	 	 	 
			
9.1.1 		
(except as required by law) disclose or divulge to any person (other than to officers or employees of the Purchaser whose province it is to know the same) or use (other than for the benefit of the Purchaser) any
Confidential Information which may be within or have come to its knowledge and it must use all reasonable endeavours to prevent such publication, disclosure or misuse of any Confidential Information;

	
	 	 	 	 
			
9.1.2 		
do anything to damage the goodwill or reputation of the Company or any member of the Group or of any business carried on by the Company nor any member of the Group or which may lead any person to cease to do business
with the Company or any other member of the Group on substantially equivalent terms to those previously offered or not to engage in business with the Company or any member of the Group.

	
	 	 	 	 
		
9.2 		
The Seller undertakes to and covenants with the Purchaser that it will not, for a period of five years after the date of this Agreement, either on its own behalf or jointly with any other person, directly or
indirectly:

	
	 	 	 	 
			
9.2.1 		
approach, canvass, solicit or otherwise act with a view to enticing away from or seeking in competition with any business of the Company or any member of the Group any person who at any time during the period of 12
months preceding the Completion Date or at any time after the Completion Date prior to his ceasing to be employed by the Company or any member of the Group is or has been a customer of the Company or any member of the Group and during such period it must not use its knowledge of or influence over any such customer to or for its own benefit or the benefit of any other person carrying on business in competition with
the Company or any member of the Group or otherwise use its knowledge of or influence over any such customer to the detriment of the Company or any member of the Group;

	

12

	

Share Purchase Agreement
	

	 		
9.2.2 		
seek to contract with or engage (in such a way as adversely to affect the business of the Company or any member of the Group as carried on at the date of this Agreement) any person who has been contracted with or
engaged to supply or deliver products, goods, materials or services to the Company or any member of the Group at any time during the period of twelve months preceding the date of this Agreement or, at any time after that, before he ceases to be
employed by the Company or any member of the Group;

	
	 	 	 	 
	 		
9.2.3 		
approach, canvass, solicit, engage or employ or otherwise endeavour to entice away any person who at any time during the period of [six] months preceding the Completion Date or (if later) the date of his ceasing to be
employed by the Company or any member of the Group will be or will have been an employee, officer, manager, consultant, sub-contractor or agent of the Company or any member of the Group with a view to the specific knowledge or skills of such person
being used by or for the benefit of any person carrying on business in competition with the business carried on by the Company or any member of the Group.

	
	 	 	 	 
	
 	
9.3 		
Each of the covenants contained in clauses 9.1 and 9.2 will constitute an entirely separate and independent restriction on the Seller.

	
	 	 	 	 
	
 	
9.4 		
References in this clause 9 to the “business of the Company or any member of the Group” (refers to the development and research, producing, sales of various medical information systems thereof as well as
relevant technical service) includes the business of the Company and/or any member of the Group that may from time to time be transferred to any company which is a member of the same group as the Purchaser.

	
	 	 	 	 
	
 	
9.5 		
The Seller agrees and acknowledges that the restrictions contained in this clause 9 are fair and reasonable and necessary to assure to the Purchaser the full value and benefit of the Shares but, in the event that any
such restriction is found to be void or unenforceable but would be valid and effective if some part or parts of the restriction were deleted, such restriction will apply with such deletion as may be necessary to make it valid and effective. 

	

13

	

Share Purchase Agreement
	

	
 	
 
	
10. 		
FURTHER ASSURANCE

	
	 	 	 
		
On and after Completion, the Seller must, at the request of the Purchaser, do and execute or procure to be done and executed all such acts, deeds, documents and things as may be necessary to give effect to this
Agreement.

	
	 	 	 
	
11. 		
INFORMATION

	
	 	 	 
		
The Seller must provide or procure to be provided to the Purchaser all such information in its possession or under its control as the Purchaser will from time to time reasonably require (both before and after the
Completion Date) relating to the business and affairs of the Company and/or any member of the Group and in any case where such information is not the exclusive property of the Company and/or any member of the Group will give or procure to be given
to the Purchaser, its directors and agents access to such information and will permit the Purchaser to take copies of the same.

	
	 	 	 
	
12. 		
ANNOUNCEMENTS

	
	 	 	 
		
No announcement, communication or circular concerning this Agreement will be made (whether before or after the Completion Date) by or on behalf of the parties to this Agreement without the prior approval of the other
(such approval not to be unreasonably withheld or delayed) save for:

	
	 	 	 
		
12.1 		
Announcements to employees, customers, suppliers and agents of the Company and/or any member of the Group and/or the Purchaser and/or any company which is a member of the same group as the Purchaser in such form as
may be reasonably required by the Purchaser; and

	
	 	 	 
		
12.2 		
Such announcements as may be required by the law of any relevant jurisdiction or by any securities exchange or regulatory or governmental body to which that party and/or its affiliates are subject.

	
	 	 	 
	
13. 		
COSTS

	

	 	
 	
 
		
13.1 		
Subject to the provisions of clause 5.12 and clause 8, each of the parties will bear and pay its own legal, accountancy and other fees and expenses incurred in and incidental to the preparation and implementation of
this Agreement and of all other documents.

	
	 	 	 	 

14

	

Share Purchase Agreement
	

		
13.2 		
The cost of all stamp duty and other similar duty payable in respect of the sale and purchase of the Shares will be borne by the Seller, on the one hand, and the Purchaser, on the other in equal shares.

	
	 	 	 	 
	
14. 		
SUCCESSORS AND ASSIGNMENT

	
	 	 	 	 
		
14.1 		
This Agreement will be binding on and inure for the benefit of each party's successors, permitted assigns and personal representatives but will not be assignable except that:

	
	 	 	 	 
			
14.1.1 		
the Purchaser may assign the whole or any part of the benefit of this Agreement and the Warranties to any transferee of any shares in the capital of the Company; and

	
	 	 	 	 
			
14.1.2 		
the Purchaser may assign its rights under this Agreement to any company of which it is a subsidiary or of which it is a holding company..

	
	 	 	 	 
		
14.2 		
Except as otherwise expressly provided, all rights and benefits under this Agreement are personal to the parties and may not be assigned at law or in equity without the prior written consent of the other
parties.

	
	 	 	 	 
	
15. 		
ENTIRE AGREEMENT

	
	 	 	 	 
		
15.1 		
This Agreement together with the schedules attached to it and any revisions thereto as may be agreed upon by the parties (“Acquisition Documents”) constitute
the entire agreement between the parties with respect to the subject matter of this Agreement.

	
	 	 	 	 
		
15.2 		
Except for any misrepresentation or breach of warranty which constitutes fraud:

	
	 	 	 	 
			
15.2.1 		
the Acquisition Documents supersede and extinguish all previous agreements between the parties relating to the subject matter contained in the Acquisition Documents and any representations and warranties previously
given or made other than those contained in the Acquisition Documents;

	

15

	

Share Purchase Agreement
	

	
 	
 	
15.2.2 		
each party acknowledges to the other (and executes the Acquisition Documents in reliance on such acknowledgement) that it has not been induced to enter into any such documents by nor relied on any representation or
warranty other than the representations and/or warranties contained in such Acquisition Documents.

	

	
16. 		
VARIATIONS

	
	 	 	 
		
No variation of this Agreement or other Acquisition Documents will be valid unless it is in writing and signed by or on behalf of each of the parties to this Agreement.

	
	 	 	 
	
17. 		
WAIVER

	
	 	 	 
		
No waiver by the Purchaser of any breach or non-fulfilment by the Seller of any provisions of this Agreement will be deemed to be a waiver of any subsequent or other breach of that or any other provision and no
failure to exercise or delay in exercising any right or remedy under this Agreement will constitute a waiver of the relevant provision or provisions of this Agreement. No single or partial exercise of any right or remedy under this Agreement will
preclude or restrict the further exercise of any such right or remedy. The rights and remedies of the Purchaser provided in this Agreement are cumulative and not exclusive of any rights and remedies provided by law.

	
	 	 	 
	
18. 		
AGREEMENT CONTINUES IN FORCE

	
	 	 	 
		
This Agreement will remain in full force and effect so far as concerns any matter remaining to be performed at Completion even though Completion will have taken place.

	
	 	 	 
	
19. 		
SEVERABILITY

	
	 	 	 
		
The invalidity, illegality or unenforceability of any provisions of this Agreement will not affect the continuation in force of the remainder of this Agreement.

	
	 	 	 
	
20. 		
NOTICES

	
	 	 	 
		
20.1 		
Any notice to be given pursuant to the terms of this Agreement must be given in writing to the party due to receive such notice at (in the case of a company) its registered office from time to time or at its address
set out in this Agreement or such other address as may have been notified to the other party in accordance with this clause 20:

	

16

	

Share Purchase Agreement
	

	 		
China Public Security Holdings Limited

	
	 		
P.O. Box 957,

	
	 		
Offshore Incorporations Centre,

	
	 		
Road Town, Tortola, British Virgin Islands. 

Attention: Jiang Huai Lin

	
	 	 	 	 	 
	 		
Topwell Treasure Ltd.

	
	 		
UNIT H 28/F, BLK 1, THE APEX, 

33 WO YI HOP RD, KWAI CHUNG, NT, 

Hong Kong 

Attention: Leung Kwai Fong Rita

	
	 	 	 	 	 
	 		
China Information Security Technology, Inc.

	
	 		
21st Floor, Everbright Bank Building, 

Zhuzilin, Futian District, Shenzhen, 

Guangdong, 518040 People’s Republic of China 

Attention: Jiang Huai Lin

	
	 	 	 	 	 
	
 	
20.2 		
Notice must be delivered:

	
	 	 	 	 	 
	 		
20.2.1 		
personally; or

	
	 	 	 	 	 
	 		
20.2.2 		
sent by first class prepaid recorded delivery or registered post (airmail if overseas); or

	
	 	 	 	 	 
	 		
20.2.3 		
by facsimile transmission.

	
	 	 	 	 	 
	
 	
20.3 		
Notices will be deemed to be given:

	
	 	 	 	 	 
	 		
20.3.1 		
in the case of delivery personally - on delivery;

	
	 	 	 	 	 
	 		
20.3.2 		
in the case of posting, at the earliest of:

	
	 	 	 	 	 
	 			

20.3.2.1 	
	
where there is evidence of receipt - at the time of receipt; and

	
	 	 	 	 	 
	 			

20.3.2.2 	
	
if sent by airmail - six days after posting; and

	
	 	 	 	 	 
	 			

20.3.2.3 	
	
otherwise - 48 hours after posting; and

	
	 	 	 	 	 
	 		
20.3.3 		
in the case of facsimile transmission - on completion of the transmission provided that the sender has received printed confirmation of transmission.

	

17

	

Share Purchase Agreement
	

	
21. 		
COUNTERPARTS

	
	 	 	 
		
This Agreement may be executed in any number of counterparts each of which when executed by one or more of the parties to this Agreement will constitute an original but all of which will constitute one and the same
instrument.

	
	 	 	 
	
22. 		
GOVERNING LAW AND DISPUTE RESOLUTION

	
	 	 	 
		
22.1 		
This Agreement will be governed by and construed in accordance with the laws of Hong Kong.

	
	 	 	 
		
22.2 		
The parties agree to negotiate in good faith to resolve any dispute among them regarding this Agreement. If the negotiations do not resolve the dispute to the reasonable satisfaction of all parties within thirty (30)
days, Section 22.3 shall apply.

	
	 	 	 
		
22.3 		
In the event the parties are unable to settle a dispute between them regarding this Agreement in accordance with Section 22.2 above, such dispute shall he referred to and finally settled by arbitration at the Hong
Kong International Arbitration Centre in accordance with the UNCITRAL Arbitration Rules (the “UNCITRAL Rules”) in effect, which rules are deemed to be incorporated by reference into this
Section 22.3. The arbitration tribunal shall consist of three arbitrators to be appointed according to the UNCITRAL Rules. The language of the arbitration shall be English.

	
	 	 	 
	
23. 		
LANGUAGE

	
	 	 	 
		
This Agreement is written in English.

	

18

	
    Share Purchase Agreement 

SCHEDULE 1 

Part 1 

The Company 

	1. 	Name of Company 	Topwell Treasure Ltd.

	 	 	 
	2. 	Type: 	Hong Kong Limited Company
    
	 	 	 
	3. 	Registered number (BR No.):
    	50222468-000-12-08-3 
	 	 	 
	4. 	Place of incorporation: 	Hong Kong 
	 	 	 
	5. 	Registered office: 	UNIT H 28/F, BLK 1, THE APEX, 33
      WO YI HOP RD, KWAI CHUNG, NT, Hong Kong 
	 	 	 
	6. 	Shareholder (or Member):
	Rita Leung Kwai Fong (the sole
      shareholder) 
	 	 	 
	7. 	Authorised share capital
      and description of shares: 	One Subscriber Share of HK$1.00
      each 

	
    1 

	

Share Purchase Agreement
	

SCHEDULE 2  

The Warranties  

	
1. 		
DISCLOSURE OF INFORMATION

	
	 	 	 
		
1.1 		
There are fully and accurately Disclosed all matters which might materially and adversely affect the present or future value of the Company or which might otherwise reasonably affect the willingness of the Purchaser
to purchase the Shares or to purchase them for the consideration and upon the terms set out in this Agreement.

	
	 	 	 
		
1.2 		
All information which has been given by any of the directors or officers or professional advisers of the Company or the Seller to any of the directors or officers or professional advisers of the Purchaser in the
course of the negotiations leading to the signing of this Agreement was, when given, true, complete and accurate in all respects and there is no fact or matter not Disclosed which renders any such information untrue, inaccurate or
misleading.

	
	 	 	 
		
1.3 		
The facts set out in the Disclosure Letter, the recitals and Schedule 1 are true, complete and accurate in all respects and not misleading.

	
	 	 	 
	
2. 		
CAPACITY AND OWNERSHIP OF SHARES

	
	 	 	 
		
2.1 		
The Seller has full power and authority and has taken all action necessary to execute and deliver and to exercise her rights and perform her obligations under this Agreement and each of the Acquisition Documents to be
executed on or before Completion which constitute valid and binding obligations on the Seller in accordance with their terms.

	
	 	 	 
		
2.2 		
The Seller does not have any interest, directly or indirectly, in any business other than that now carried on by the Company which is or is likely to be or become competitive with the business of the
Company.

	
	 	 	 
		
2.3 		
The Shares described in Schedule 1 constitute the whole of the allotted and issued share capital of the Company and have been properly allotted and issued.

	
	 	 	 
		
2.4 		
All necessary consents, authorizations and approvals of any governmental agency or body required for the performance of the terms hereof by the Seller (other than for fulfilment of the Conditions) have been obtained and made or shall have been obtained or made by Completion.

	

	

2
	

	

Share Purchase Agreement
	

	
 	
2.5 		
The Shares shall on Completion be transferred in accordance with the constitutional documents of the Company and in accordance with all relevant laws of Hong Kong.

	
	 	 	 
	
 	
2.6 		
Except those as disclosed in the Disclosure Letter, there is no Encumbrance on, over or affecting the Shares or any of them or the shares or interest in the Subsidiaries or any unissued shares in the capital of the
Company and there is no agreement or commitment to give or create any such Encumbrance or negotiations which may lead to such an agreement or commitment and no claim has been made by any person to be entitled to such an Encumbrance.

	
	 	 	 
	
 	
2.7 		
The Seller is entitled to sell and transfer the full legal and beneficial ownership in the Shares to the Purchaser and such sale will not result in any breach of or default under any agreement or other obligation
binding upon the Seller or any of her property.

	
	 	 	 
	
 	
2.8 		
Other than this Agreement, there is no agreement, arrangement or obligation requiring the creation, allotment, issue, transfer, redemption or repayment of, or the grant to any person of the right (whether conditional
or not) to require the allotment, issue, transfer, redemption or repayment of, any shares in the capital of the Company (including, without limitation, an option or right of pre-emption or conversion).

	
	 	 	 
	
 	
2.9 		
There is no litigation, arbitration, prosecution, administrative or other legal proceedings or dispute in existence or threatened against the Seller in respect of the Shares or the shares in the Subsidiaries or the
Seller's entitlement to dispose of the Shares or the shares in the Subsidiaries and there are no facts known to the Seller which might give rise to any such proceedings or any such dispute.

	
	 	 	 
	
 	
2.10 		
The Company has not exercised nor purported to exercise or claim any lien over the Shares and no call on the Shares is outstanding and all the Shares are fully paid up.

	
	 	 	 
	
 	
2.11 		
Subject to the approval of the board of directors of the Company and the relevant provisions (if any) in the constitutional documents of the Company to the contrary, no consent of any third party is required for the
sale of the Shares.

	

	

3
	

	

Share Purchase Agreement
	

	
3. 		
REGULATORY COMPLIANCE

	
	 	 	 
		
3.1 		
Each of the members of the Group have been validly incorporated and established pursuant to the laws of their respective place of incorporation, all legal and procedural requirements and all other formalities
concerning such incorporation and establishment have been duly and properly complied with, and each of the members of the Group is in good standing.

	
	 	 	 
		
3.2 		
The copies of the constitutional documents and articles of association and other corporate documents of each of the members of the Group attached to the Disclosure Letter are true, accurate, and complete in all
material respects. Such constitutional and corporate documents includes copies of all resolutions (including but not limited to all special resolutions passed by the relevant member of the Group) and documents required to be incorporated in the
constitutional documents of the relevant member of the Group and fully set out all rights attaching to each class of the share capital of the relevant member of the Group other than those under general law.

	
	 	 	 
		
3.3 		
The register of members, minute books and other statutory books of each of the members of the Group have been properly kept and written up and contain a true, accurate and complete record of all the matters which
should be dealt with and no notice or allegation that any of the same is incorrect or should be rectified has been received and each of the members of the Group has not received any application or request for rectification of the register of members
and compliance has been made with all other legal requirements concerning each of the members of the Group and all issues of shares or other securities thereof.

	
	 	 	 
		
3.4 		
Each of the members of the Group is validly existing and is entitled to carry on the business now conducted by it.

	
	 	 	 
		
3.5 		
All corporate or other documents required to be filed or registered in respect of each of the members of the Group with the relevant authorities in their respective places of incorporation (including appropriate
regulatory bodies) have been duly filed.

	
	 	 	 
		
3.6 		
Each of the members of the Group has complied in all material respects with all legislation, rules and regulations applicable to it and obtained all necessary licences, consents and other permissions and approvals
relevant to the business of such company in its place of incorporation, and to the best knowledge of the Seller, each of the members of the Group has complied in all material respects with all legal requirements existing as of the date hereof in relation to any transactions to which it is or has been a party.

	

	

4
	

	

Share Purchase Agreement
	

		
3.7 		
All licences, consents and other permissions and approvals required for or in connection with the carrying on of the business now being conducted by each of the members of the Group are in full force and effect and
have been duly complied with in all material respects and, to the best of the Seller's knowledge, there is no circumstance which might invalidate any such licence, consent, permission or approval or render it liable to forfeiture or modification or
affect its renewal.

	
	 	 	 
	
4. 		
BUSINESS NAME

	
	 	 	 
		
The Company does not use any name for any purpose other than its full corporate name.

	
	 	 	 
	
5. 		
LICENCES AND CONSENTS

	
	 	 	 
		
Each of the Group members has obtained all licences, permissions, authorisations and consents required to own and operate its assets and for the proper carrying on of its business (full details of which are set out in
the Disclosure Letter). All such licences, permissions, authorisations and consents are in full force and effect, have been obtained on a permanent and unconditional basis and none of the Group members are in breach of any of the terms and
conditions attached to those licences, permissions, authorisations and consents. To the best knowledge of the Seller, there are no circumstances which indicate that any of such licences, permissions,
authorisations or consents may be revoked or not renewed in the ordinary course of events nor are there any circumstances which indicate that equivalent licences, permissions, authorisations or consents on no less favourable terms would not be
granted to the Group members following the acquisition of the Shares by the Purchaser.

	
	 	 	 
	
6. 		
INSURANCE

	
	 	 	 
		
6.1 		
Full details of all insurance policies effected by the Company or by any other person in relation to any of the Company's assets have been disclosed in the Disclosure Letter and all such details are true and correct
in all respects and all such insurance policies are currently in full force and effect.

	
	 	 	 
		
6.2 		
The Company has not done or omitted to do or suffered anything to be done or not to be done which has or might render any policies of insurance taken out by it in relation to any of the Company's assets void or
voidable or which would or might result in an increase in the rate of premiums on the said policies and there are no claims outstanding and no circumstances which would or might give rise to any claim under any of such policies of insurance.

	

	

5
	

	

Share Purchase Agreement
	

		
6.3 		
All the assets of the Company of an insurable nature are and have at all material times been insured in amounts representing their full replacement or reinstatement value (with no provision for deduction or excess)
against fire and other risks normally insured against by persons carrying on similar businesses to the business of the Company. The Company is and has at all material times been adequately insured against accident, third party and other risks
normally or presently insured against by persons carrying on similar businesses to the business of the Company.

	
	 	 	 
	
7. 		
RECORDS

	
	 	 	 
		
All the accounts, books, registers, ledgers and financial and other material records of whatsoever kind of each of the Group members are up to date, in its possession or under its control and have been fully properly
and accurately kept and compiled; there are no material inaccuracies or discrepancies of any kind contained or reflected in such records and they give and reflect a true and fair view of the financial, contractual and trading position of each of the
Group members and fixed and current assets and liabilities (actual and contingent), debtors and creditors.

	
	 	 	 
	
8. 		
CONFIDENTIAL INFORMATION

	
	 	 	 
		
8.1 		
None of the Group members uses any processes and is not engaged in any activities which involve the misuse of any confidential information belonging to any third party or alleged misuse.

	
	 	 	 
		
8.2 		
None of the Group members is aware of any actual or alleged misuse by any person of any of its Confidential Information.

	
	 	 	 
		
8.3 		
None of the Group members has disclosed to any person any of its Confidential Information except where such disclosure was properly made in the normal course of the business of the Group member and was made subject to
an agreement under which the recipient is obliged to maintain the confidentiality of such Confidential Information and is restrained from further disclosing or using it other than for the purposes for which it was disclosed by the
Company.

	
	 	 	 
		
8.4 		
Confidential Information used by each of the Group members is kept strictly confidential and each of the Group members operates and fully complies with procedures which maintain such confidentiality, which confidentiality has not been breached.

	

	

6
	

	

Share Purchase Agreement
	

	
9. 		
INTELLECTUAL PROPERTY

	
	 	 	 
		
9.1 		
None of the Companies is in possession of any Business Intellectual Property nor is any Group member in the process of making any application for registration of any Business Intellectual Property other than what the
Seller have disclosed to the Purchaser.

	
	 	 	 
		
9.2 		
The carrying on of each of the Group members' business as presently constitute does not require, and has not at any time required, any licences or consents (other than licences for its incorporation) from or the
making of royalty or similar payments to any third party (aside from what has been disclosed in the Disclosure Letter) and none of the Group members is engaged in any activities which infringe any Intellectual Property or other rights belonging to
or vested in any third party.

	
	 	 	 
		
9.3 		
There are no outstanding claims against the Company for infringement of any Intellectual Property used (or which has been used) by it and no such claims have been settled by the giving of any undertakings which remain
in force.

	
	 	 	 
		
9.4 		
No claims or applications have been made against, no notifications (including “non- threatening letters”) have been received by, and no circumstances are known to the Seller in respect of the business of any
Group member which (notwithstanding any view taken by the Seller as to the merits of such claim application, notification or circumstances) if pursued, granted or acted on would affect the accuracy of the Warranties set out in this
paragraph.

	
	 	 	 
	
10. 		
EMPLOYEES

	
	 	 	 
		
10.1 		
None of the officers or employees of the Group members has given or received notice terminating his employment or will be entitled to give notice as a result of the provisions of this Agreement.

	
	 	 	 
		
10.2 		
Full particulars of the terms and conditions of employment of all the officers or employees of the Group members (including, without limitation, all remuneration, incentives, bonuses, expenses, profit-sharing
arrangements and other payments, share option schemes and other benefits whatsoever payable) and, where an employee has been continuously absent from work for more than one month, the reason for the absence, are set out in the Disclosure Letter.

	

	

7
	

	

Share Purchase Agreement
	

	
 	
10.3 		
There is not in existence any contract of employment with any director or employee of each of the Group members (or any contract for services with any individual) which cannot be terminated by the Company giving three
months' notice or less without giving rise to the making of a payment in lieu of notice or a claim for damages or compensation (other than a statutory redundancy payment or statutory compensation for unfair dismissal) or which is in suspension or
has been terminated but is capable of being revived or enforced or in respect of which the Group member has a continuing obligation.

	
	 	 	 	 
	
 	
10.4 		
In relation to each of the present officers or employees of each of the Group members (and so far as relevant to each of its former employees), dated as of this Agreement, each of the Group members has:

	
	 	 	 	 
	 		
10.4.1 		
complied with all obligations imposed on it by all statutes, regulations and codes of conduct relevant to the relations between it and its employees;

	
	 	 	 	 
	 		
10.4.2 		
maintained adequate and suitable records regarding the service of each of its employees;

	
	 	 	 	 
	 		
10.4.3 		
complied with all collective agreements and customs and practices for the time being dealing with such relations or the conditions of service of its employees; and

	
	 	 	 	 
	 		
10.4.4 		
complied with all relevant orders and awards made under any statute affecting the conditions of service of its employees.

	
	 	 	 	 
	
 	
10.5 		
None of the Group members are involved in any disputes and there are no circumstances which may result in any dispute involving any of the officers or employees of the Group members and none of the provisions of this
Agreement including the identity of the Purchaser is likely to lead to any such dispute.

	
	 	 	 	 
	
 	
10.6 		
There is not outstanding any agreement or arrangement to which any of the Group members is party for profit sharing or for payment to any of its officers or employees or former employees of bonuses or for incentive
payments or other similar matters.

	

	

8
	

	

Share Purchase Agreement
	

		
10.7 		
There is no agreement or arrangement between any of the Group members and any of its employees or officers or former employees or officers with respect to his employment, his ceasing to be employed or his retirement
which is not included in the written terms of his employment or previous employment.

	
	 	 	 	 
		
10.8 		
Since the Accounts Date, no change has been made in the terms of employment by each of the Group members (other than those required by law) of any of the officers or employees of the Group members and none of the
Group members is obliged to increase and has not made provision to increase the total annual remuneration payable to its officers and employees.

	
	 	 	 	 
		
10.9 		
No trade union, works council, staff association or other body representing employees is recognised in any way for bargaining, information or consultation purposes in relation to the employees of each of the Group
members and there is no agreement or agreements with any such representative body in relation to the employees of each of the Group members.

	
	 	 	 	 
		
10.10 		
There is no agreement, arrangement, scheme or obligation (whether legal or moral) for the payment of any pensions, allowances, lump sums or other like benefits on redundancy, on retirement or on death or during
periods of sickness or disablement for the benefit of any of the officers or employees of each of the Group members or former officers or employees or for the benefit of dependants of such persons.

	
	 	 	 	 
		
10.11 		
No amounts due to or in respect of any of the officers or employees or former employees of each of the Group members are in arrears or unpaid.

	
	 	 	 	 
		
10.12 		
No monies or benefits other than in respect of contractual emoluments are payable to any of the officers or employees of each of the Group members and there is not at present a claim, occurrence or state of affairs
which may hereafter give rise to a claim against any of the Group members arising out of the employment or termination of employment of any employee or former employee for compensation for loss of office or employment or otherwise.

	
	 	 	 	 
	
11. 		
CONTRACTS

	
	 	 	 	 
		
11.1 		
There is not outstanding in connection with the business of the Company:

	
	 	 	 	 
			
11.1.1 		
any agreement or arrangement between any of the Group members and any third party which the signature or performance of this Agreement will contravene or under which the third party
      will acquire a right of termination or any option as a result of the
      signature or performance of this Agreement;

	

	

9
	

	
    Share Purchase Agreement 

	 		11.1.2	
      any agreement or arrangement between
      the Company and any other company which is a member of the
      Group;

	 	 	 	 
	 		11.1.3	
      any agreement or arrangement entered into by
      any of the Group members otherwise than by way of bargain at arm's length;

	 	 	 	 
	 		11.1.4	
      any sale or purchase, option or
      similar agreement, arrangement or obligation affecting any of the assets
      of the Group members or by which any of the Group members is
      bound;

	 	 	 	 
	 		11.1.5 	
      any agreement or contract containing any
      unusual or onerous terms to be observed or performed by the any of the
      Group members or which the Group member cannot comply with on time or
      without undue or unusual expenditure of money or effort;

	 	 	 	 
	 		11.1.6 	
      any agreement or contract which is unusual,
      unprofitable (that is to say known to have been likely to result in a loss
      to the Group member on completion of performance) or of a long-term nature
      (that is to say incapable of performance in accordance with its terms
      within three months after the date on which it was entered into or
      undertaken), save as disclosed in the Disclosure Letter hereto; or

	 	 	 	 
	 		11.1.7 	
      any agreement or arrangement which involves
      or may involve obligations which by reason of their material nature or
      magnitude ought to be made known to the Purchaser.

	 	 	 	 
	 	11.2 
	
      None of the Group members nor any party with
      whom any of the Group members has entered into any agreement or contract
      is in default being a default which would have a material and adverse effect on the financial
      or trading position or prospects of any of the Group
      members and to the best knowledge of the Seller, there are no
      circumstances likely to give rise to such a default.

	 	 	 	 
	 	11.3 	
      No breach of contract, event or omission has
      occurred which would entitle any third party to terminate any contract to
      which any of the Group members is a party or to call in any money before
      the date on which payment of such amount would
  normally or otherwise be due and none of the Group members has received notice of intention to terminate any of such agreements or contracts.

	
    10 

	

Share Purchase Agreement
	

		
11.4 		
The Seller has no reason to believe that any customer or supplier of any of the Group members or other person dealing with any of the Group members will refuse to continue to deal with the Group member or the
Purchaser or will deal with it on a smaller scale than at present as a result of the change of control of the Company to be effected pursuant to this Agreement.

	
	 	 	 
		
11.5 		
The Disclosure Letter contains full details of all agreements, arrangements or contracts (whether oral or in writing) made between each of the Group members and any employee or client or customer of each of the Group
members other than in the ordinary course of business.

	
	 	 	 
	
12. 		
TRADING

	
	 	 	 
		
12.1 		
There is not outstanding any liability or claim against the Company nor are there any deficiencies or defects or breaches of contract which could result in any claim being made against any of the Group members in
relation to any goods or services for which any of the Group members has been or is or may be or become liable or responsible in the course of its business and without prejudice to the generality of the foregoing no dispute exists between any of the
Group members and any customer, client or supplier of such goods or services nor are there any circumstances which are believed likely to give rise to any such dispute.

	
	 	 	 
		
12.2 		
None of the Group members is restricted by contract from carrying on any activity in any part of the world.

	
	 	 	 
		
12.3 		
Other than in the ordinary course of business, no offer, tender or the like is outstanding which is capable of being converted into an obligation of any of the Group members by an acceptance or other act of some other
person.

	
	 	 	 
	
13. 		
BORROWINGS

	
	 	 	 
		
Except as disclosed in the Accounts and the Disclosure Letter, none of the Group Companies has outstanding:

	
	 	 	 
		
13.1 		
any borrowing or indebtedness in the nature of borrowing including any bank overdrafts, liabilities under acceptances (otherwise than in respect of normal trade bills) and acceptance credits other than borrowing or indebtedness arising in the ordinary course of business;

	

	

11
	

	

Share Purchase Agreement
	

		
13.2 		
any guarantee, indemnity or undertaking (whether or not legally binding) to procure the solvency of any person or any similar obligation; or

	
	 	 	 	 
		
13.3 		
any Encumbrance or any obligation (including a conditional obligation) to create an Encumbrance.

	
	 	 	 	 
	
14. 		
LITIGATION, OFFENCES AND COMPLIANCE WITH STATUTES

	
	 	 	 	 
		
14.1 		
None of the Group members nor any person for whose acts or defaults the Group members may be vicariously liable is claimant, defendant or otherwise a party to any litigation, arbitration or administrative proceedings
which are in progress or are threatened or pending by or against or concerning each of the Group members or any of its assets; none of the Group members is being prosecuted for any criminal offence and no governmental or official investigation or
inquiry concerning the business or officers of the Group members or any of its assets is in progress or pending and there are no circumstances which are likely to give rise to any such proceedings, investigation or inquiry.

	
	 	 	 	 
		
14.2 		
None of the Group members nor any of its officers, agents or employees (during the course of their duties in relation to the business of the Group members) has committed or omitted to do any act or thing the
commission or omission of which is or could be in contravention of any statutory obligation or any other applicable law giving rise to any fine, penalty, default proceedings or other liability in relation to the business or officers of the Group
members or any of its assets or any judgment or decision which would materially affect the financial or trading position or prospects of any of the Group members.

	
	 	 	 	 
		
14.3 		
The Shares were not purchased or subscribed for by the Seller with funds derived from criminal proceeds.

	
	 	 	 	 
		
14.4 		
To the best of the Seller's knowledge, information and belief:

	
	 	 	 	 
			
14.4.1 		
none of the assets owned by any of the Group members has been acquired with monies representing the proceeds of crime;

	
	 	 	
 	
 
	 	 	
14.4.2	
None of the Group members has at any time received monies representing criminal proceeds.

	

12
	

	

Share Purchase Agreement
	

	
15. 		
SUBSIDIARIES

	
	 	 	 	 
		
None of the Group members has since its incorporation had any subsidiary or subsidiary undertaking apart and none of the Group members is the legal or beneficial owner of any shares of any other company save as
contemplated in this Agreement.

	
	 	 	 	 
	
16. 		
ADMINISTRATION

	
	 	 	 	 
		
16.1 		
Every document required by any applicable legislation to be filed with any appropriate regulatory bodies has been duly filed and compliance has been and is being made by each of the Group members with any applicable
legislation.

	
	 	 	 	 
		
16.2 		
The copy of the constitution documents of each of the Group members annexed to the Disclosure Letter is accurate and complete in all respects, includes copies of all resolutions and documents required to be
incorporated in the constitutional documents of each of the Group members and fully sets out all rights attaching to each class of the share capital of the Group members and the register of members and other statutory books of each of the Group
members have been properly kept and contain a true, accurate and complete record of all the matters which should be dealt with in the constitutional documents of the Group members and no notice or allegation that any of the same is incorrect or
should be rectified has been received.

	
	 	 	 	 
		
16.3 		
Each of the Group members was incorporated in accordance with its constitutional documents and is validly existing and is entitled to carry on the business now carried on by it.

	
	 	 	 	 
		
16.4 		
All legal requirements in connection with the formation and conduct of the each of the Group members have been observed.

	
	 	 	 	 
		
16.5 		
All special resolutions passed by each of the Group members have been Disclosed.

	
	 	 	 	 
		
16.6 		
The Group members have not at any time carried on any business other than the business carried on at the date hereof.

	
	 	 	 	 
		
16.7 		
None of the Group members have given any power of attorney or any other authority (express, implied or ostensible) which is still outstanding or effective to any person to enter into any contract or commitment or do anything on its behalf (other than any authority of directors or employees to enter into routine trading contracts in the normal course of their duties).

	

	

13
	

	

Share Purchase Agreement
	

	
17. 		
INSOLVENCY

	
	 	 	 	 
		
17.1 		
No resolution has been passed nor meeting called to consider such resolution, no petition has been presented and no order has been made for the winding up of or for the appointment of a provisional liquidator to any
of the Group members.

	
	 	 	 	 
		
17.2 		
No petition has been presented and no application has been made to court for an administration order in respect of any of the Group members and no notice of an intention to appoint an administrator of any of the Group
members has been given or filed.

	
	 	 	 	 
		
17.3 		
No liquidator, administrator, receiver, receiver and manager, administrative receiver or similar officer has been appointed in relation to any of the Group members or in relation to the whole or any part of its
assets, rights or revenues.

	
	 	 	 	 
		
17.4 		
In relation to each of the Group members:

	
	 	 	 	 
			
17.4.1 		
no scheme for the benefit of creditors has been proposed or implemented, whether or not under the protection of the court and whether or not involving a reorganisation or rescheduling of debt; and

	
	 	 	 	 
			
17.4.2 		
no proceedings have been commenced under any law, regulation or procedure relating to the reconstruction or adjustment of debts.

	
	 	 	 	 
		
17.5 		
None of the Group members has not stopped or suspended payment of its debts, and none of the Group members is unable or capable of being deemed unable to pay its debts.

	
	 	 	 	 
		
17.6 		
No distress, execution or other process has been levied on an asset of any of the Group members and no unsatisfied judgment, order or award is outstanding against any of the Group members.

	
	 	 	 	 
		
17.7 		
No action has been or is being taken by any relevant authority to strike the Group members off the appropriate register under the applicable laws (if any) in their respective places of incorporation.

	

	

14
	

	

Share Purchase Agreement
	

	
18. 		
MONEY LAUNDERING LAWS

	
	 	 	 
		
The operations of Company are and have been conducted at all times in compliance with applicable financial record-keeping and reporting requirements of the money laundering statutes of all U.S. and non-U.S.
jurisdictions, the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any governmental body (collectively, the “Money Laundering
Laws”) and no proceeding involving Company or any of the Group members with respect to the Money Laundering Laws is pending or, to the knowledge of the Group members, threatened.

	
	 	 	 
	
19. 		
SECURITIES LAW REPRESENTATIONS

	
	 	 	 
		
The Seller understands, acknowledges and agrees that the offering and sale of the CIST Common Stock issuable under the Agreement (the “Acquisition Shares”) to
the Seller in accordance with this Agreement has not been registered under the Securities Act or under any state securities laws or regulations and that the Acquisition Shares are being offered and sold to it in reliance on an exemption from the
registration requirements of United States federal and state securities laws under Regulation S promulgated under the Securities Act of 1933, as amended (the “Securities Act”) and that CIST is
relying upon the truth and accuracy of the representations, warranties, agreements, acknowledgments and understandings of each of the Seller set forth herein in order to determine the applicability of such exemptions and the suitability of the
Seller to acquire the Acquisition Shares. In this regard, the Seller represents and warrants as follows:

	
	 	 	 
		
19.1 		
The Seller is not a U.S. Person (as defined below) or an affiliate (as defined in Rule 501(b) under the Securities Act) of CIST. A U.S. Person means any one of the following: (1) any natural person resident in the
United States of America; (2) any partnership or corporation organized or incorporated under the laws of the United States of America; (3) any estate of which any executor or administrator is a U.S. person; (4) any trust of which any trustee is a
U.S. person; (5) any agency or branch of a foreign entity located in the United States of America; (6) any non-discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary for the benefit or account of
a U.S. person; (7) any discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary organized, incorporated or (if an individual) resident in the United States of America; and (8) any partnership or
corporation if: (a) organized or incorporated under the laws of any foreign jurisdiction; and (b) formed by a U.S. person principally for the purpose of investing in securities not
      registered under the Securities Act, unless it is organized or incorporated, and owned, by accredited investors (as
      defined in Rule 501(a) under the Securities Act) who
      are not natural persons, estates or trusts.

	

	

15
	

	
    Share Purchase Agreement 

	 	19.2 	
      At the time of the origination of contact
      concerning this Agreement and at the date of the
      execution and delivery of this Agreement, the Seller was outside of the
      United States.

	 	 	 
	 	19.3 	
      The Seller will not, during the period
      commencing on the date of issuance of the Acquisition
      Shares and ending on the first anniversary of such date, or such shorter
      period as may be permitted by Regulation S or other
      applicable securities law (the “Restricted Period”), offer, sell, pledge or
      otherwise transfer the Acquisition Shares in the
      United States, or to a U.S. Person for the account or for the benefit of a
      U.S. Person, or otherwise in a manner that is not in
      compliance with Regulation S. At no time will the
      Seller offer, sell, pledge or otherwise transfer the Acquisition Shares
      unless they are registered under the Securities Act or
      are exempt from the registration requirements of the
      Securities Act and any applicable state or foreign securities laws
      or regulations.

	 	 	 
	 	19.4 	
      The Seller understands, acknowledges and
      agrees that the certificates representing the Acquisition Shares will bear the following legend or one that is
      substantially similar to the following
      legend:

	 	 	 
	 		
      THE SECURITIES REPRESENTED BY THIS
      CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS AND NEITHER
      SUCH SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, PLEDGED,
      ASSIGNED OR OTHERWISE TRANSFERRED EXCEPT (1) PURSUANT TO AN EFFECTIVE
      REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND APPLICABLE STATE
      SECURITIES LAWS OR (2) PURSUANT TO AN AVAILABLE EXEMPTION FROM THE
      REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND APPLICABLE STATE
      SECURITIES LAWS, IN WHICH CASE THE HOLDER MUST, PRIOR TO SUCH TRANSFER,
      FURNISH TO THE COMPANY AN OPINION OF COUNSEL, WHICH COUNSEL AND OPINION
      ARE REASONABLY SATISFACTORY TO THE COMPANY, THAT SUCH SECURITIES MAY BE
      OFFERED, SOLD, PLEDGED, ASSIGNED OR OTHERWISE TRANSFERRED IN THE MANNER
      CONTEMPLATED PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION
      REQUIREMENTS OF THE SECURITIES ACT AND APPLICABLE STATE SECURITIES
      LAWS.

	
    16 

	

Share Purchase Agreement
	

	 		
The certificates will also bear any legend required by the “blue sky” laws of any state to the extent such laws are applicable to the securities represented by the certificate so legended.

	
	 	 	 
	
 	
19.5 		
The Seller has not in the United States, engaged in, and will not directly or indirectly engage in, any short selling of or any hedging or similar transaction with respect to the Acquisition Shares, including without
limitation, any put, call or other option transaction, option writing or equity swap.

	
	 	 	 
	
 	
19.6 		
Neither the Seller nor or any person acting on her behalf has engaged in, nor will engage, in any directed selling efforts to a U.S. Person with respect to the Acquisition Shares and the Seller and any person acting
on her behalf have complied and will comply with the “offering restrictions” requirements of Regulation S under the Securities Act.

	
	 	 	 
	
 	
19.7 		
The transactions contemplated by this contract have not been prearranged with a buyer located in the United States or with a U.S. Person, and are not part of a plan or scheme to evade the registration requirements of
the Securities Act.

	
	 	 	 
	
 	
19.8 		
Neither the Seller nor any person acting on her behalf has undertaken or carried out any activity for the purpose of, or that could reasonably be expected to have the effect of, conditioning the market in the United
States, its territories or possessions, for any of the Acquisition Shares. The Seller agrees not to cause any advertisement of the Acquisition Shares to be published in any newspaper or periodical or posted in any public place and not to issue any
circular relating to the Acquisition Shares, except such advertisements that include the statements required by Regulation S under the Securities Act, and only offshore and not in the U.S. or its territories, and only in compliance with any local
applicable securities laws.

	

	

17
	

	

Share Purchase Agreement
	

SCHEDULE 3 

Completion 

	
1. 		
The Seller must deliver or procure to be delivered to the Purchaser:

	
	 	 	 	 
		
1.1 		
The Seller will procure that a meeting of the board of directors and the members of the Company is convened and held on or before the Completion Date, for the purpose of passing the following resolutions in reach case
to the extent necessary and appropriate:

	
	 	 	 	 
			
1.1.1 		
To approve and give effect to the transfer of the Shares from the Seller to the Purchaser pursuant to this Agreement;

	
	 	 	 	 
			
1.1.2 		
To approve the entry of the Purchaser's name in register of members of the Company as the holder of the Shares;

	
	 	 	 	 
			
1.1.3 		
To appoint such directors as nominated by the Purchaser;

	
	 	 	 	 
			
1.1.4 		
To approve the amendment of any authorized signatories of the Company, including bank authorized signatories as nominated by the Purchaser, and

	
	 	 	 	 
			
1.1.5 		
To deal with and resolve upon such other matters as the Purchaser may reasonably require for the purposes of completing the sale and purchase hereunder.

	
	 	 	 	 
		
1.2 		
Duly executed instruments of transfers in respect of the Shares in favour of the Purchaser;

	
	 	 	 	 
		
1.3 		
A letter issued by the Seller to the Registered Agent of the Company advising of the transfer of the Shares under this Agreement and instructing the Registered Agent to update the copy of the share register of the
Company kept at the registered office of the Company and that as from Completion the Purchaser shall be the client of record with respect to the Company;

	
	 	 	 	 
		
1.4 		
The duly endorsed share certificate for the Shares in the name of the Seller;

	
	 	 	 	 
		
1.5 		
The resolutions of the shareholders and the directors of the Company referenced in paragraph 1.1 above;

	

	

18
	

	

Share Purchase Agreement
	

	
 	
1.6 		
Letters of resignations of directors of the Company, such letters of resignation to be in any usual form and in each case acknowledging that such persons have no outstanding claim against the relevant Group member,
whether for compensation for loss of office or otherwise howsoever arising;

	
	 	 	 
	
 	
1.7 		
All certificates of incorporation and certificates of incorporation on change of name for the Company and the Subsidiaries and all Business Registration Certificates or Business Licences for the Company and the
Subsidiaries, together with all approvals, permits, certificates and licences issued in relation to the Company and the Subsidiaries;

	
	 	 	 
	
 	
1.8 		
The common seal, company chops finance chops and statutory books (including minute books) and books of account of the Company and the Subsidiaries made up to the Completion Date;

	
	 	 	 
	
 	
1.9 		
Copies of all bank mandates given by the Company and/or any of the Subsidiaries and forms of cancellation of such bank mandates duly executed;

	
	 	 	 
	
 	
1.10 		
Alteration of all bank authorised signatories to the such persons as nominated by the Purchaser;

	
	 	 	 
	
 	
1.11 		
Bank statements dated not earlier than two Business Days before Completion for all bank accounts of the Company and/or the Subsidiaries together with cash book balances of the Company and/or the Subsidiaries as at
Completion and reconciliation statements reconciling such balances with the bank statements;

	
	 	 	 
	
 	
1.12 		
All cheque books in the possession of or under the control of the Company and/or any of the Subsidiaries;

	
	 	 	 
	
 	
1.13 		
All credit cards in the name of or for the account of the Company and/or any of the Subsidiaries in the possession of any person resigning from his office or employment on Completion;

	
	 	 	 
	
 	
1.14 		
A letter from any relevant banks and duly executed deeds of release evidencing the release and discharge of all guarantees and charges of the Company and/or the Subsidiaries to such banks;

	
	 	 	 
	
 	
1.15 		
All current insurance policies;

	

	

19
	

	

Share Purchase Agreement
	

	
 	
1.16 		
Such waivers, consents or other documents as the Purchaser may require to enable the full beneficial ownership of the Shares to vest in the Purchaser or to enable the Purchaser or its nominees to be registered as
holders of the Shares;

	
	 	 	 
	
 	
1.17 		
A Certificate of Incumbency in relation to the Company to the satisfaction of the Purchaser;

	
	 	 	 
	
 	
1.18 		
Such other documents and things as the Purchaser may properly and reasonably request to implement this transaction.

	

	

20
	

	

Share Purchase Agreement
	

SCHEDULE 4 

Operation of the Company Pending Completion 

The Seller covenants with the Purchaser that, in the period from the date of this Agreement to Completion, it will procure that the Company and each of the Subsidiaries must (unless the Purchaser otherwise agrees in writing): 

	
1. 		
Continue its business in the ordinary and usual course and so as to maintain the same as a going concern;

	
	 	 
	
2. 		
Not dispose of or agree to dispose of or acquire or agree to acquire any assets or stock (other than in the normal course of business) or assume or incur or agree to assume or incur a liability, obligation or expense
(actual or contingent) except in the usual course of its business;

	
	 	 
	
3. 		
Not merge or amalgamate or agree to merge or amalgamate its business with any other company;

	
	 	 
	
4. 		
Not enter into any scheme or arrangement with creditors;

	
	 	 
	
5. 		
Not enter into any contract, transaction or arrangement with the Seller;

	
	 	 
	
6. 		
Not pass any shareholders' resolution;

	
	 	 
	
7. 		
Not create, allot, issue, acquire, redeem or repay any share or loan capital or agree, arrange or undertake to do any of those things or acquire or agree to acquire shares or any other interest in any other
company;

	
	 	 
	
8. 		
Not enter into any long-term contract or any contract or arrangement involving expenditure or liabilities other than in the ordinary course of business;

	
	 	 
	
9. 		
Not make any capital commitment or approve or make any capital expenditure in excess of this amount and/or before the time provided in the relevant budget;

	
	 	 
	
10. 		
Not amend or terminate any agreement, arrangement or obligation to which it is a party;

	
	 	 
	
11. 		
Not engage in any transaction except on an arm's-length basis in the ordinary course of business;

	

	

21
	

	

Share Purchase Agreement
	

	
12. 		
Not increase or agree to increase the remuneration (including, without limitation, salary, bonuses, commissions, profits in kind and pension contributions) of any of its directors or employees or vary the terms of
employment of or dismiss any employee or engage any new employee or agree to provide any gratuitous payment or benefit to any person;

	
	 	 
	
13. 		
Not amend or discontinue the Relevant Benefits or communicate to any employee any plan, proposal or intention to amend, discontinue or exercise any discretion in relation to any such schemes;

	
	 	 
	
14. 		
Not alter or agree to alter the terms of any existing borrowing facilities or arrange additional borrowing facilities;

	
	 	 
	
15. 		
Not create or agree to create any Encumbrance over any of its assets or make any loans or enter into any guarantee or stand surety for the obligations of any third party;

	
	 	 
	
16. 		
Not grant any credit except normal trade credit given in the ordinary course of business;

	
	 	 
	
17. 		
Not declare, make or pay any dividend or other distribution;

	
	 	 
	
18. 		
Not change its accounting reference date;

	
	 	 
	
19. 		
Not enter into any litigation or arbitration proceedings;

	
	 	 
	
20. 		
Except in the usual course of its business, not compromise, settle, release, discharge or compound litigation or arbitration proceedings or a liability, claim, action, demand or dispute, or waive a right in relation
to litigation or arbitration proceedings;

	
	 	 
	
21. 		
Conduct its business in all material respects in accordance with all applicable legal and administrative requirements in any jurisdiction;

	
	 	 
	
22. 		
Not cancel or fail to renew by the due date the insurance policies in force at the date of this Agreement nor do or omit to do anything to render such policies void or voidable.

	

	

22
	

	

Share Purchase Agreement
	

 IN WITNESS of which the parties or their duly authorised representatives have executed this Agreement. 

	
Signed by
	
	
For and on behalf of
	
	
CHINA PUBLIC SECURITY HOLDINGS LIMITED
	
	
 
	
	
 
	
	
 
	
	
Jiang Huai Lin
	
	
Director
	
	
 
	
	
 
	
	
 
	
	
 
	
	
Signed by
	
	
For and on behalf of
	
	
TOPWELL TREASURE LTD.
	
	
 
	
	
 
	
	
 
	
	
Rita Leung Kwai Fong
	
	
Director
	
	
 
	
	
 
	
	
 
	
	
Signed by
	
	
For and on behalf of
	
	
CHINA INFORMATION SECURITY TECHNOLOGY, INC.
	
	
 
	
	
 
	
	
 
	
	
Jiang Huai Lin
	
	
President and Chief Executive Officer
	
	
 
	
	
 
	
	
 
	
	
 
	
	
RITA LEUNG KWAI FONG
	

	

23Neptune Technologies & Bioressources Inc. - Exhibit 4.1 - Prepared by
   TNT Filings Inc.

Exhibit 4.1

TECHNOLOGY LICENSE AGREEMENT

*Confidential treatment has been requested and a complete copy of this
agreement has been filed with the Commission. Redacted portions are marked
throughout.

This TECHNOLOGY LICENSE AGREEMENT (the “Agreement”) entered into this 7th day of August, 2008 (the
“Effective Date”) by and between Neptune Technologies & Bioressources Inc. (“Licensor”) and Acasti Pharma Inc. (the
“Company”) (Licensor and the Company are sometimes referred to herein individually as a “Party” and collectively as the
“Parties”). Agreement reviewed the 20 February 2009. 

WHEREAS Licensor is the owner or licensee of Licensed Intellectual Property (as hereinafter defined); and 

WHEREAS the Company desires to obtain from Licensor, and Licensor desires to grant to the Company, a license to use such Licensed Intellectual Property in certain Licensed Fields
and within a specified Territory under the terms and conditions of this Agreement. 

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

	
1. 		
DEFINITIONS

	
	 	 
		
“Agreement” has the meaning set forth in the preamble.

	
	 	 
		
“Additional Term” has the meaning set forth in Section 11.1.

	
	 	 
		
“Business Day” means a day other than Saturday, Sunday, or any other day on which commercial banks located in Montreal are not required to be open for
business.

	
	 	 
		
“Cardiovascular Field” [REDACTED: Field applications]

	
	 	 
		
“Company” has the meaning set forth in the Preamble.

	
	 	 
		
“Company Independent Development” means any intellectual property created, acquired or developed by the Company that is not a Company Related
Enhancement.

	
	 	 
		
“Company Related Enhancement” means any derivative works from, and other improvements and enhancements to, the Licensed Intellectual Property and any other
intellectual property created, acquired or developed by the Company that is directly or indirectly derived from on the Licensed Intellectual Property.

	
	 	 
		
“Confidential Information” has the meaning set forth in Section 10.

	
	 	 
		
“Contract Year”
shall mean each twelve-month period following the Effective Date. 

	
	 	
 
	 	
“Cosmeceutical” means
Nutraceuticals with cosmetic claims.
	 	
 
	 	

“Cost” means, with respect to a Party, all reasonably documented costs, fees and expenses that such Party incurs in performing the applicable obligation(s) under this Agreement,
as such Party determines in good faith and on a reasonable basis, including, without limitation, for (a) all out-of-pocket expenses and consultant and vendor costs, (b) personnel wages, salaries and other compensation and benefits for such Party’s employees, and (c) other personnel-related expenses, and associated general and administrative expenses, and (d) direct equipment, software and services costs. With respect to any expenses
that are incurred for the benefit of the other Party or other entities in addition to the Party, Cost will include only a fair allocation of such multi-party expenses. 
	

- 1 -

“Effective Date” has the meaning set forth in the Preamble. 

“Enhancement Notice” shall have the meaning set forth in Section 3.5(a) . 

“Gross Margin” means the revenues for each Licensed Product made, used, transferred or sold by, or on behalf of, the Company or a sublicensee of the Company in an arm’s
length transaction, less the cost of goods sold, which is defined as direct costs attributable to the purchase of the Licensed Products by the Company, including without limitation the cost of materials, direct labor costs, indirect expenses such as
distribution costs and sales force costs.

“Initial Term” has the meaning set forth in Section 11.1. 

“Licensed Field” distribution and sale [REDACTED: Targeted Markets] for use in the human Cardiovascular Field
[REDACTED: Technical Conditions] at the time of the request for such
approval.

“License Grant” has the meaning set forth in Section 2.1(a) . 

“Licensed Intellectual Property” means, subject to the terms and conditions of this Agreement, (a) the Licensed Patents and (b) all know-how, trade secrets, systems, copyrighted
materials, software (in object code form and, at Licensor’s sole discretion, in source code form), technology, Confidential Information of Licensor not included in the foregoing, and other intellectual property, other than Trademarks, owned or
controlled by, or licensed to Licensor (with the right to grant sublicenses in the Licensed Field) as of the Effective Date and necessary for exploitation of the Licensed Patents, in each case to the extent related to the Licensed Field.

“Licensed Patents” means those patents and patent applications relating to the Licensed Field owned by Licensor, or to which Licensor has license rights (with the right to grant
sublicenses) as of the Effective Date, and set forth on Schedule A. 

“Licensed Products” means any and all products Used, directly or indirectly, by the Company and within the scope of one or more claims of the Licensed Patents and within the
Licensed Field.

“Net Sales” means the revenues for each Licensed Product made, used, transferred or sold by, or on behalf of, the Company or a sublicensee of the Company in an arm’s length
transaction, less the sum of the following actual and customary deductions (net of rebates or allowances of such deductions received):  cash, trade, or quantity discounts; sales or use taxes imposed upon particular sales; import/export and customs
duties freight or other transportation charges; amounts repaid or credited by reason of rejections and return of goods.

 “Nutraceutical Products” means any Dietary Supplement or Functional Food that has proven health and medical benefits.  “Dietary Supplement” means a product isolated or
purified from foods that is generally sold in medicinal forms not usually associated with food; a dietary supplement is demonstrated to have a physiological benefit to maintain healthy physiological systems.  “Functional Food” is similar in appearance to, or may be, conventional food, is consumed as part of a usual diet, and is
demonstrated to have physiological benefits to maintain healthy physiological systems beyond basic nutritional functions. 

- 2 -

“Nutrigenomic Products” means Nutraceuticals designed to interact with specific genes to reduce the risk of common chronic diseases by altering the expression of genes and the structure of an
individual's genome. 

“Over-the-Counter Products” means products intended to be used in the prevention, cure and treatment of a disease, with a monograph safety standard, requiring no scientific review
and which can be sold without a prescription from a medical doctor or in formulation with another OTC product where the safety monograph applies to at least one of the ingredients in the formulation. 

“Permitted Company Licensee” means any permitted sublicensee of the Company pursuant to the terms and conditions of this Agreement.

“Person” means any natural person, corporation, partnership, limited liability company, trust or any other legal entity. 

“Prescription Drug Products” means products intended for the prevention, cure or treatment of a disease, to which attach specific claims, and which has received approval from each
country’s respective authorities to be marketed as a prescription drug, and which must be prescribed by a medical doctor. 

“Prescription Medical Food Products” means products intended to meet unique complete nutritional requirements of a disease, which fall within the GRAS category (“Generally
Recognized As Safe”) as defined by the respective regulatory authorities of each country in the Territory and which must be prescribed by a medical doctor and/or doctors accredited to prescribe. 

“Related Company” means a company that directly, or indirectly through one or more intermediaries, owns, or is owned by, or is under common ownership with, the Company. For this
purpose, the term “own” or “ownership” means the ownership of twenty-five percent (25%) or more of the voting shares of such corporation or of twenty-five percent (25%) of the ownership interests in such other business entity.

“Royalties” has the meaning set forth in Section 5.2. 

“Term” means the Initial Term and the Additional Term. 

“Territory” means worldwide.

“Third Party” means any person other than the Licensor, the Company or the Related Company.  

“Use” means to develop, use,
sell, offer for sale, import, export, have imported, have exported, distribute, create derivative works from, improve, enhance, and modify; for the purpose of this Agreement, “Use” specifically excludes manufacturing. 

- 3 -

	
2. 		
LICENSE GRANT

	
	 	 	 	 	 	 
		
2.1 		
License to the Company.

	
	 	 	 	 	 	 
			
(a) 		
License Grant. Licensor hereby grants to the Company, and the Company hereby accepts, subject to the terms and conditions of this Agreement, an exclusive, non-transferable license for the
Term and in the Territory to Use the Licensed Intellectual Property solely within the Licensed Field and, where it relates to the development and commercialization of Licensed Products, in accordance with the terms set out in Schedule B to this
Agreement. (the "License Grant").

	
	 	 	 	 	 	 
				
[REDACTED: Technical Conditions]

	
	 	 	 	 	 	 
			
(b) 		
Copies. The Company shall be permitted to make such reasonable numbers of copies of the Licensed Intellectual Property as are reasonably necessary to effectuate the License Grant; provided
however, that (i) the Company shall treat all such copies as Confidential Information of Licensor to be disclosed only as permitted in Section 10, and (ii) all such copies shall be subject to all terms and conditions of this Agreement.

	
	 	 	 	 	 	 
			
(c) 		
Derivative Works.

	
	 	 	 	 	 	 
				
(i) 		
The Company may create Company Related Enhancements from the Licensed Intellectual Property, subject to the terms of the License Grant.

	
	 	 	 	 	 	 
				
(ii) 		
Except as may be imposed by other provisions of this Agreement, such as confidentiality and non-compete provisions, no restrictions are imposed on the Company’s rights to create Independent
Developments.

	
	 	 	 	 	 	 
			
(d) 		
Sublicenses. Subject to Section 14.1 and Section 14.2, the Company shall have the right to sublicense the Licensed Intellectual Property but only with the prior written consent of Licensor,
such consent to be at Licensor’s sole discretion, but which shall not be rejected without justified cause, provided that:

	
	 	 	 	 	 	 
				
(i) 		
the sublicense to such Permitted Company Licensee is pursuant to a written, valid and enforceable agreement containing terms and restrictions (other than fees and without sub-licensing rights) at least substantially
the same as those contained herein, including, without limitation, the following:

	
	 	 	 	 	 	 
					
(I) 		
License grant limitations and sublicensee obligations relating thereto at least as restrictive as the License Grant and sublicense obligations set forth herein;

	
	 	 	 	 	 	 
					
(II) 		
Licensor ownership of Licensed Intellectual Property, and Licensor license rights to Company Related Enhancements and to Company Independent Development by such sublicensee at least as broad as those contained herein;
and

	

- 4 -

	
 	
 	
 	
 	
(III) 		
Obligations on the Permitted Company Licensee at least as broad, and rights at least as favorable to Licensor, as those contained herein regarding protection of Licensed Intellectual Property, audit rights, remedies
and liability limitations, representations, warranties, confidentiality, termination, governing law and other miscellaneous provisions.

	

	 	 		
(ii) 		
notwithstanding Section 2.1(d)(i) above:

	
	 	 	 	 	 	 
	 	 			
(I) 		
No sublicensing of any Permitted Company Licensee will include any representations or warranties, express or implied, made on behalf of Licensor;

	
	 	 	 	 	 	 
	 	 			
(II) 		
Except for damages related to the manufacturing of the Licensed Products by Licensor, Licensor will not be liable for any damages, whether direct, indirect, incidental, consequential, special, punitive or other
liability, arising under any such sublicenses, and the Company will at its cost defend and hold the Licensor harmless in relation thereto; and

	
	 	 	 	 	 	 
	 	 			
(III) 		
Any such sublicense agreement will expressly provide that Licensor is a third party beneficiary of that sublicense agreement;

	
	 	 	 	 	 	 
	 	 		
(iii) 		
no sublicense will be permitted if it has, or is reasonably likely to have, any material adverse legal, financial or tax effect on Licensor; and

	
	 	 	 	 	 	 
	 	 		
(iv) 		
the Company shall be liable for any action or inaction on the part of any sublicensee of the Company.

	
	 	 	 	 	 	 
	
 	
 	
(e) 		
Scope of License. Except for such rights expressly granted to the Company herein, no license, right, title or interest in or to the Licensed Intellectual Property is granted to the Company
or any other entity, either expressly or by implication, estoppel or otherwise.

	

	
 	
2.2 		
Licensed Third Party Technology. Except as otherwise set forth in Section 5.4, for all third party intellectual property licensed or sublicensed by Licensor for use with or within the
Licensed Intellectual Property in connection with the Company’s business, the Company shall bear the Cost of such license or sublicense, based on the following principles: (a) where the third party licensor negotiates with the Licensor a
reasonable fee for the Company [REDACTED: Condition]; (b) where the third party licensor fee is based on a usage or other trackable methodology
directly related to the licensed third party intellectual property [REDACTED: Condition]; and (c) where the third party licensor has set a general
fee, Licensor shall determine [REDACTED: Condition] to the Company and other beneficiaries of the license grant.

	
	 	 	 
	
 	
2.3 		
Licensor Right to Control Its Business. Nothing in this Agreement shall restrict Licensor from modifying, discontinuing use of, or ceasing support for any of the Licensed Intellectual
Property without liability or obligation to the Company or any third party, provided, however, that Licensor shall use commercially reasonable efforts (a) to provide the Company with sufficient advanced notice of any such modifications, discontinuations or cessations of support to allow the
Company to take appropriate actions to minimize any adverse effect on the Company, and (b) and to implement such modifications, discontinuations, and cessations of support in a manner intended to minimize any material adverse effect on the Company's
business or operations, so long as such notice and such minimization efforts do not nor are likely to have a material adverse effect on Licensor. Notwithstanding the foregoing, the notice to be provided by the Licensor in accordance with subsection
(a) above shall be of at least thirty (30) days.

	

- 5 -

		
2.4 		
Technology Transfer. To the extent reasonably necessary for the Company to exercise its rights and perform its obligations under this Agreement, promptly after the Effective Date, Licensor
shall provide to the Company one (1) copy of each physical embodiment of the Licensed Intellectual Property controlled by Licensor on the Effective Date (and, from time to time thereafter during the Term, promptly after Licensor obtains control of
any additional Licensed Intellectual Property).

	
	 	 	 	 
	
3. 		
OWNERSHIP OF INTELLECTUAL PROPERTY; RIGHTS TO ENHANCEMENTS

	
	 	 	 	 
		
3.1 		
Ownership of Licensed Intellectual Property. The Company acknowledges that Licensor and its licensors own and shall own all right, title and interest, throughout the world, in and to the
Licensed Intellectual Property. The Company shall not take any action that is inconsistent with Licensor's and its licensors’ ownership of the Licensed Intellectual Property. The Company agrees that nothing in this Agreement and no use of the
Licensed Intellectual Property by the Company pursuant to this Agreement, shall vest in the Company or be construed to vest in the Company, any right, title or interest in or to the Licensed Intellectual Property other than the express right to Use
the Licensed Intellectual Property solely in accordance with the terms and conditions of this Agreement.

	
	 	 	 	 
		
3.2 		
Ownership of Company Related Enhancements. The Company shall own all right, title, and interest in and to all Company Related Enhancements.

	
	 	 	 	 
		
3.3 		
Company Related Enhancement Rights and Obligations.

	
	 	 	 	 
			
(a) 		
The Company shall promptly disclose all Company Related Enhancements to Licensor. [REDACTED: Condition]

	
	 	 	 	 
			
(b) 		
The Company shall not at any time during or after the Term of this Agreement Use, nor knowingly permit any third party to access or Use, for the benefit of the Company or any other entity, any Company Related
Enhancements outside of the Licensed Field without the prior written approval of the Licensor.

	
	 	 	 	 
		
3.4 		
Ownership of Independent Developments. Licensor agrees and acknowledges that the Company shall own all right, title and interest in and to all Company Independent Developments throughout the
world, and that there shall be no restrictions upon the Company's right to create Independent Developments except as specifically provided in this Agreement.

	

- 6 -

		
3.5 		
Independent Development License to Licensor.

	
	 	 	 	 
			
(a) 		
Subject to Section 14.1 and Section 14.2, the Company shall promptly disclose all Company Independent Developments to Licensor, such disclosure to be subject to the confidentiality obligations of this Agreement. Such
notification shall include a description of the Company Independent Development in reasonably sufficient detail to permit Licensor to evaluate the Company Independent Development ("Enhancement Notice").
Upon Licensor's request, the Company shall grant to Licensor a commercially reasonable evaluation license [REDACTED: Condition]

	
	 	 	 	 
			
(b) 		
Subject to Section 14.1 and Section 14.2, the Company must hereby offer to grant to the Licensor, and Licensor may at its sole discretion accept, effective upon Licensor’s acceptance with respect to each Company
Independent Development, a nonexclusive, perpetual, royalty-bearing, irrevocable, worldwide license to: (a) use, sell, offer for sale, import, export, have imported, have exported, distribute, and (b) in collaboration with the Company or with the
Company’s pre-appoval, to create derivative works from, improve, enhance, modify and/or otherwise exploit, the Company Independent Developments in Licensor's business in any territory and in any field of use except the Licensed Field, subject
to the Parties entering into a reasonable license agreement therefore [REDACTED: Condition].

	
	 	 	 	 
			
(c) 		
Without limitation to Section 3. 5(b), in the event the Company determines to generally commercialize or license the Company Independent Development,

	
	 	 	 	 
			
(d) 		

	
	 	 	 	 
		
3.6 		
[REDACTED: Condition]Vested Ownership Rights.

	
	 	 	 	 
			
(a) 		
Subject to Section 14.1 and Section 14.2, to the extent any right, title or interest in or to any Company Related Enhancement or Company Independent Development or other intellectual property or data vests in the
Company, by operation of law or otherwise, in a manner contrary to the agreed upon ownership as set forth in this Agreement [REDACTED: Condition].

	
	 	 	 	 
			
(b) 		
Subject to Section 14.1 and Section 14.2, the Company shall take, or shall cause to be taken, all such actions as shall be necessary, including procuring assignments from individuals, [REDACTED: Conditions].

	
	 	 	 	 
		
3.7 		
Trademark Rights. Nothing in this Agreement shall be deemed to give the Company any right, title or interest in or to any of Licensor's Trademarks.

	
	 	 	 	 
	
4. 		
PROTECTION OF LICENSED INTELLECTUAL PROPERTY

	
	 	 	 	 
		
4.1 		
Maintenance of Intellectual Property Rights. The maintenance of the Licensed Patents shall be managed [REDACTED: Party and
condition]. Should the Licensor choose not to continue to maintain any of the patents or patent applications which form part of the Licensed Patents, the Licensor shall provide the Company with
reasonably advanced notice of at least six (6) months if possible in writing of its decision and the Company may, in its sole discretion and at its cost, choose to continue the maintenance of such patent or patent application.

	

- 7 -

		
4.2 		
Protection of Intellectual Property Rights.

	
	 	 	 	 
			
(a) 		
[REDACTED: Party and condition] police the Licensed Intellectual Property in the Territory, and in connection with any lawsuits
involving Licensed Intellectual Property. [REDACTED: Condition].

	
	 	 	 	 
			
(b) 		
[REDACTED: Right]

	
	 	 	 	 
			
(c) 		
[REDACTED: Right]

	
	 	 	 	 
		
4.3 		
No Assurance of Protection. The Company agrees and acknowledges that (a) except as set forth on Schedule A, the Licensed Patents and other Licensed Intellectual Property currently are not
patented or registered in the Territory, (b) except as set forth in Section 7, Licensor makes no representation or warranty regarding intellectual property protection for the Licensed Intellectual Property in the Territory and (c) all terms and
conditions of this Agreement, including, without limitation, financial terms, are made on the Parties’ understanding and acknowledgment that protection for any or all Licensed Intellectual Property may not be obtainable in all or in part of the
Territory.

	
	 	 	 	 
		
4.4 		
Defense Against Infringement Claims. Licensor and the Company shall cooperate to diligently defend the Company, and, if applicable, Licensor, against any third party infringement claims,
demands or actions relating to the Licensed Intellectual Property in the Territory (“Third Party Infringement Claims”).

	
	 	 	 	 
			
[REDACTED: Right]

	
	 	 	 	 
		
4.5 		
Defense Against Other Claims. Licensor and the Company shall cooperate to defend the Company against any third party claims, demands or actions, other than claims subject to Section 4.4.
[REDACTED: Obligation]

	
	 	 	 	 
		
4.6 		
Exceptions. Notwithstanding the other provisions contained in this Section 4, the Licensor shall be solely responsible for the defense, control and resolution, at its own expense, of the
claims, demands and actions set forth in Schedule 7.1 to this Agreement.

	
	 	 	 	 
		
4.7 		
[REDACTED: Obligation]

	
	 	 	 	 
	
5. 		
ROYALTIES

	
	 	 	 	 
		
5.1 		
Initial Consideration. On the Effective Date, the Company shall grant the Licensor the following consideration (the “Initial Consideration”): [REDACTED: Consideration]

	
	 	 	 	 
		
5.2 		
Royalties. In addition to the Initial Consideration, during the Initial Term, the Company shall pay to Licensor, in consideration for the License Grant, a running royalty (the
"Royalties") [REDACTED: Royalties]

	
	 	 	 	 
		
5.3 		
Minimum Requirements. In order to maintain the rights granted under this Agreement, the Company shall meet all of the following conditions:

	

- 8 -

	
 	
 	
(a) 		
In each Contract Year, notwithstanding any payment made under Section 5.1, the Company undertakes to make minimum payments to the Licensor, which shall include the Royalty payments made during such Contract Year, and
which payments shall equal or exceed the following amounts (the “Minimum Payment Requirements”):

	

	
 
		
[REDACTED: Years]
	
	
[REDACTED: Targeted Markets]
		
[REDACTED: Minimum Royalties
	
	
 
		
Payments]
	

For purposes of clarity, the Minimum Payment Requirements are based on annual minimum payments [REDACTED: Condition] 

If any of the conditions set out in Section 5.3(a)(b) and Section 5.3(a)(c) are not met by the Company for reasons other than reasons beyond the Company’s control [REDACTED: Option]

Notwithstanding the foregoing, the Company may choose to restrict the License Field under this Agreement and to abandon its License Grant [REDACTED: Targeted Markets &
Condition]

	
 	
5.4 		
Third Party Fees. The Company shall be responsible for all third party license and other fees and all other Company Costs in connection with the License Grant, except for the fees to be
assumed by the Licensor as set forth in Section 4.6, any fees payable to the Université de Sherbrooke related to the Beaudoin Patent and any fees related to the action undertaken by Mr. Beaudoin as described in Schedule 7.1 hereto.

	
	 	 	 
	
 	
5.5 		
Time and Place of Payment. All Royalties are payable quarterly within forty-five (45) days after end of each such quarter, and any other fees net forty-five (45) days from invoice for same
from Licensor. All payments under this Agreement shall be made in Montreal, Quebec, in Canadian currency, or such other location as Licensor may indicate.

	
	 	 	 
	
 	
5.6 		
Taxes and Other Assessments. All payments under this Agreement shall be made without deduction for taxes, assessments or other charges of any kind that may be imposed on Licensor by any
government, or subdivision of such government, other than Licensor’s Canadian income taxes, and all such taxes, assessments and charges shall be the sole responsibility of the Company.

	
	 	 	 
	
 	
5.7 		
Failure to Pay and Overdue Payments. Failure to pay the License Fee within sixty (60) days of receipt by the Company of notice from Licensor that the License Fee has not been paid, shall
constitute a material breach of this Agreement. Any payments that are not timely paid as provided hereunder shall bear interest at the annual rate of the lower of (a) the highest rate permitted by law and (b) one and one half percent (1.5%) per
month.

	

- 9 -

	
 	
5.8 		
Early Repayment of Royalties.

	
	 	 	 	 	 
	 		
(a) 		
At any time during the first year following the Effective Date if agreed by both Parties, and at any time [REDACTED: Option]

	
	 	 	 	 	 
	 		
(b) 		
The calculation of the number of Company class A and/or class B Shares to be issued shall be based on the following formula:

	
	 	 	 	 	 
	 			
[REDACTED: Formula]

	
	 	 	 	 	 
	 		
(c) 		
[REDACTED: Consideration] For the purpose of this Section 5.8, “Fair Market Value” shall be determined as follows:

	
	 	 	 	 	 
	 			
(i) 		
If the Company is traded on a public exchange, the volume weighted average price of its shares for the twenty (20) trading days prior to the issuance of the shares;

	
	 	 	 	 	 
	 			
(ii) 		
If the Company is not traded on a public exchange, the higher of

	
	 				
[REDACTED: Condition]

	
	 	 	 	 	 
	 		
(d) 		
[REDACTED: Condition]

	
	 	 	 	 	 
	 		
(e) 		
[REDACTED: Condition]

	

	
6. 		
PAYMENTS, RECORDS, AUDIT RIGHTS

	
	 	 	 
		
6.1 		
Payment Reports. Within forty-five (45) days after the end of each calendar quarter during the Term, the Company shall provide the Licensor, along with the Royalties, with a report stating
the Company’s Net Sales, Gross Margin, revenues from sublicenses made by the Company to third parties and, if applicable, all information used to establish the pro-rata calculation should the Company sell a Formulation, the whole for that
calendar quarter by the Company. Such report shall also indicate the quantity of Licensed Products sold by the Company during such calendar quarter. The Company shall provide the reports due to the Licensor at the address set forth in Section
14.14.

	
	 	 	 
		
6.2 		
Company Maintenance of Records. The Company shall maintain complete and accurate accounting, development and business records in accordance with sound accounting, research and development
and business practices to substantiate and verify the Company’s financial information used in calculating the Royalties, any use of Licensed Intellectual Property and any development of any software or other intellectual property related to the
Licensed Intellectual Property, and will preserve such records for a period of at least five (5) years after completion of the pertinent obligations or other work.

	
	 	 	 
		
6.3 		
Audit. Licensor or its designee shall have the right, at Licensor’s expense, to audit and inspect the books and records of the Company upon five (5) Business Days’ written notice
to the Company during regular business hours for the purpose of verifying that all Royalties have been paid and confirming that the Company has performed all of its obligations under, and has complied with, the terms and conditions of this
Agreement. If the audit identifies any underpayment or overpayment of Royalties by the Company, then, (a) in the case of an underpayment, the Company shall pay to Licensor the amount of such underpayment within thirty (30) Business Days after Licensor delivers to the Company a written report describing such
underpayment, or (b) in the case of an overpayment, the Company shall be entitled to a credit against future Royalties in the amount of such overpayment as described in a written report from Licensor. If the audit reveals that the Company underpaid
Royalties by more than ten percent (10%) in any calendar quarter, then all fees and expenses of such audit shall be paid by the Company.

	

- 10 -

	
7. 		
REPRESENTATIONS AND WARRANTIES

	
	 	 	 
		
7.1 		
Licensor Representations and Warranties. Except as set forth in Schedule 7.1, Licensor represents to the Company that, to the knowledge of Licensor, with respect to the Territory (a)
Licensor owns or has the right to license the Licensed Intellectual Property free and clear of any encumbrances; and (b) there are no adverse claims in the Territory relating to the Licensed Intellectual Property.

	
	 	 	 
		
7.2 		
Mutual Representations and Warranties. Each Party represents and warrants to the other Party that (a) it has the full corporate right, power and authority to enter into this Agreement and to
perform its obligations hereunder, (b) the execution of this Agreement and the performance of its obligations hereunder does not and will not conflict with or result in a breach (including, without limitation, with the passage of time) of any other
agreement to which it is a party or by which any of its assets or properties is bound or affected, and (c) this Agreement has been duly executed and delivered by such Party and constitutes the valid and binding agreement of such Party, enforceable
against such Party in accordance with its terms, except to the extent that enforceability is limited by public policy or creditors' rights generally.

	
	 	 	 
		
7.3 		
Disclaimer of Representations and Warranties. TO THE MAXIMUM EXTENT PERMITTED BY LAW, EXCEPT AS SET FORTH ABOVE IN THIS SECTION 7, LICENSOR DISCLAIMS ALL REPRESENTATIONS AND WARRANTIES,
WHETHER EXPRESS, IMPLIED OR STATUTORY, ORAL OR IN WRITING, ARISING UNDER LAWS OF CANADA, THE TERRITORY OR ANY OTHER LAWS, INCLUDING, WITHOUT LIMITATION, WITH RESPECT TO VALIDITY, ENFORCEABILITY, NON-INTERRUPTION, ERROR-FREE OPERATION,
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OR THE LIKE WITH RESPECT TO THE LICENSED INTELLECTUAL PROPERTY, WHETHER IN THE TERRITORY OR OTHERWISE.

	
	 	 	 
	
8. 		
INDEMNIFICATION

	
	 	 	 
		
8.1 		
Indemnification by Licensor. Subject to Section 9, Licensor agrees to defend, indemnify, and hold the Company, and the respective directors, officers, employees and agents of the Company,
harmless from and against any and all out-of-pocket costs, damages and losses (including, without limitation, reasonable attorneys’ fees and costs) arising out of or resulting from third party claims due to (i) the material breach by Licensor
of any of its representations, warranties, covenants and agreements contained in this Agreement, or (ii) Licensor's material unauthorized use or disclosure of any Company Confidential Information, or (iii) any acts or omissions of the Licensor in
its business arising from gross negligence or willful misconduct.

	

- 11 -

		
8.2 		
Indemnification by the Company. Subject to Section 9, the Company agrees to defend, indemnify, and hold Licensor and the respective directors, officers, employees and agents of Licensor,
harmless from and against any and all out-of-pocket costs, damages and losses (including, without limitation, reasonable attorneys’ fees and costs) arising out of or resulting from third party claims due to (i) any material breach by the
Company (or by any Permitted Company Licensee) of any of its representations, warranties, covenants and agreements contained in this Agreement, (ii) the Company’s (or any Permitted Company Licensee’s) unauthorized use or disclosure of any
Licensed Intellectual Property or material unauthorized use or disclosure of any Confidential Information or (iii) any acts or omissions of the Company (or any Permitted Company Licensee) in its business arising from gross negligence or willful
misconduct.

	
	 	 	 
		
8.3 		
Indemnification Obligations. In no event will the loss of profits, sales, business, data or other indirect, incidental, consequential, special, punitive or similar damages of a third party
be considered direct damages of a Party for purposes of the indemnification obligations under this Section 8.

	
	 	 	 
	
9. 		
LIMITED REMEDY

	
	 	 	 
		
9.1 		
Intellectual Property. TO THE MAXIMUM EXTENT PERMITTED BY LAW, IN NO EVENT SHALL LICENSOR BE LIABLE TO THE COMPANY, ANY PERMITTED COMPANY LICENSEE OR ANY OTHER ENTITY FOR ANY CLAIM, LOSS OR
DAMAGE OF ANY KIND ARISING OUT OF OR IN CONNECTION WITH THE DEFICIENCY OR INADEQUACY OF THE LICENSED INTELLECTUAL PROPERTY FOR ANY PURPOSE WHETHER OR NOT KNOWN OR DISCLOSED TO LICENSOR.

	
	 	 	 
		
9.2 		
Exclusion of Consequential Damages. TO THE MAXIMUM EXTENT PERMITTED BY LAW, IN NO EVENT SHALL A PARTY OR ANY PERMITTED COMPANY LICENSEE BE LIABLE TO THE OTHER PARTY OR ANY PERMITTED COMPANY
LICENSEE OR ANY OTHER ENTITY FOR ANY LOSS OF PROFITS, SALES, BUSINESS, DATA OR OTHER INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL, PUNITIVE OR SIMILAR DAMAGES IRRESPECTIVE OF WHETHER LICENSOR HAS BEEN INFORMED OF, KNEW OF, OR SHOULD HAVE KNOWN OF
THE LIKELIHOOD OF SUCH DAMAGES. THIS LIMITATION APPLIES TO ALL CAUSES OF ACTION IN THE AGGREGATE, INCLUDING, WITHOUT LIMITATION, BREACH OF CONTRACT, BREACH OF WARRANTY, NEGLIGENCE, STRICT LIABILITY, MISREPRESENTATION, AND OTHER TORTS.

	

	
10. 		
CONFIDENTIALITY

	
	 	 	 
		
10.1 		
Definition. "Confidential Information" means (a) the terms and conditions of this Agreement, (b) any information, in whatever form, designated by a Party
(“Disclosing Party”) in writing as confidential, proprietary or marked with words of like import when provided to the other Party (“Receiving Party”); and (c) information orally conveyed if the Disclosing Party states at the time of the oral conveyance or promptly thereafter that such information is Confidential, and such statement of confidentiality is specifically confirmed in
writing within fifteen (15) days of such oral conveyance, or is disclosed under circumstances in which the Receiving Party knew or reasonably should have known was confidential.

	

- 12 -

	
 	
10.2 		
Exclusions. Confidential Information shall not include information which: (a) at or prior to the time of disclosure was known to the Receiving Party through lawful means or through act of a
third party that was not known by the Receiving Party to be unauthorized; (b) at or after the time at which the disclosure by the Disclosing Party becomes generally available to the public through no act or omission on the Receiving Party's part;
(c) is proven in record to be developed by the Receiving Party independent of any Confidential Information it receives from the Disclosing Party or (d) the Receiving Party lawfully receives from a third person free to make such disclosure without
breach of any legal obligation.

	
	 	 	 
	
 	
10.3 		
Disclosure Due to Legal Obligations. The Receiving Party may disclose Confidential Information pursuant to any statute, regulation, order, subpoena or document discovery request, including,
without limitation, in publicly filed disclosure documents of the Receiving Party under federal or state securities laws if deemed reasonably necessary on advice of legal counsel.

	
	 	 	 
	
 	
10.4 		
Requirements. Licensor and the Company shall use the Confidential Information of the other Party solely to fulfill its obligations and exercise its rights under this Agreement, and, except
as otherwise provided herein, all Confidential Information of the Disclosing Party, and any derivative works thereof, shall remain at all times the sole and exclusive property, worldwide, of the Disclosing Party and its licensors. The Receiving
Party shall use the same measures used to protect the Disclosing Party’s Confidential Information as it uses to protect its own Confidential Information, but in no event less than commercially reasonable measures. The Receiving Party shall not
disclose any of the Disclosing Party's Confidential Information to any third party without the Disclosing Party's prior written consent.

	
	 	 	 
	
 	
10.5 		
Permitted disclosure. Notwithstanding the foregoing Section 10.4, the Receiving Party may disclose the Disclosing Party's Confidential Information to the extent necessary to enter into or
perform its obligations under sublicenses granted in accordance with this Agreement to the Receiving Party's business partners with the Disclosing Party's prior written consent, such consent not to be unreasonably withheld, provided that any third
party shall enter into a customary confidentiality agreement in favor of the Disclosing Party, and in form and substance reasonably satisfactory to the Disclosing Party.

	
	 	 	 
	
 	
10.6 		
Return of information. The Receiving Party shall, at the request of the Disclosing Party, retrieve all Confidential Information from its and permitted disclosees' officers, employees,
agents, advisors and subcontractors and thereafter shall (a) promptly return all Confidential Information held or used by the Receiving Party in whatever form or (b) at the discretion of the Disclosing Party, promptly destroy all such Confidential
Information, and promptly cause an officer of the Receiving Party to certify that the requirements of this Section 10.6 have been fully complied with; provided that, during the Term, the Disclosing Party shall not make such a request with respect to
Confidential Information necessary for the Receiving Party to perform its obligations hereunder.

	

- 13 -

		
10.7 		
Injunctions. In view of the difficulties of placing a monetary value on the Confidential Information, the Disclosing Party may be entitled to a preliminary and final injunction without the
necessity of posting any bond or undertaking in connection therewith to prevent any further breach of this Article or further unauthorized use of its Confidential Information. This remedy is separate from and in addition to any other remedy the
Disclosing Party may have.

	
	 	 	 	 
	
11. 		
TERM AND TERMINATION

	
	 	 	 	 
		
11.1 		
Term. The "Initial Term" of this Agreement shall commence on the Effective Date and shall expire on the date of expiration of [REDACTED: Term]

	
	 	 	 	 
		
11.2 		
Termination by Either Party. This Agreement may be terminated by either Party immediately upon notice to the other Party if such other Party commits a material breach of any of the material
provisions of this Agreement, and such breach is not cured within thirty (30) days after written notice of such breach is received from the non-breaching Party, except that the time period shall be fourteen (14) days for breaches in respect of
Confidential Information that result or are reasonably likely to result in a material adverse effect on the non-breaching Party;

	
	 	 	 	 
		
11.3 		
Termination by Licensor. Without limitation to Section 11.2, Licensor may terminate this Agreement prior to expiration of the Term under the following conditions:

	
	 	 	 	 
			
(a) 		
Upon thirty (30) days written notice of such action, unless cured by the Company during such notice period, if the Company uses any of the Licensed Intellectual Property outside of the scope of the License Grant or
the Licensed Field; or

	
	 	 	 	 
			
(b) 		
Upon written notice in the event that the Company ceases doing business, becomes insolvent, is the subject of a voluntary bankruptcy, insolvency or similar proceeding, is the subject of an involuntary bankruptcy,
insolvency, or similar proceeding that is not dismissed within sixty (60) days of filing, makes an assignment for the benefit of creditors, becomes unable to pay its debts when due or enters into an agreement with its creditors providing for the
extension or composition of debt.

	
	 	 	 	 
		
11.4 		
Effect of Termination.

	
	 	 	 	 
			
(a) 		
Upon the termination of this Agreement for any reason other than: (i) its natural expiration, or (ii) the termination of this Agreement by the Company due to a material breach of this Agreement by Licensor, then all
Licensor license rights to all Company Related Enhancements and to Company Independent Developments existing at the time of the termination shall survive unaffected by such expiration or termination.

	
	 	 	 	 
			
(b) 		
Return of Licensed Intellectual Property Upon Termination. On or before ten (10) days after the termination of this Agreement, the Company must deliver to Licensor all Licensed Intellectual
Property and Licensor Confidential Information, or at Licensor's request, destroy, to the extent requested, all copies of the Licensed Intellectual Property and Licensor Confidential Information created by or on behalf of the Company and cause an officer of the Company to certify that such instructions have been followed in their entirety.

	

- 14 -

	
12. 		
RIGHTS RELATING TO THE MANUFACTURING OF LICENSED PRODUCTS

	
	 	 	 	 
		
12.1 		
Licensor’s Right to Manufacture. The Licensor may, at its sole option, manufacture or have manufactured by a third party the Licensed Products for the Company.

	
	 	 	 	 
		
12.2 		
Price of Manufacturing and Standards. Should the Licensor choose to manufacture or to have manufactured the Licensed Products:

	
	 	 	 	 
			
(a) 		
The price for the manufacturing of the Licensed Products for the Company shall be as follows: [REDACTED: Targeted Markets & Price]

	
	 	 	 	 
			
(b) 		
[REDACTED: Condition]

	
	 	 	 	 
			
(c) 		
The Licensor shall manufacture the Licensed Products in accordance with generally accepted industry standards in the Licensed Field, the product specifications and for the quantity provided by the Company, and shall
be responsible for all direct damages caused by its negligence or willful misconduct in the manufacturing of the Licensed Products.

	
	 	 	 	 
			
(d) 		
[REDACTED: Condition]

	
	 	 	 	 
		
12.3 		
Manufacturing by or on behalf of Company. Should the Licensor choose not to manufacture or have manufactured the Licensed Products, the Company may (using Licensor IP, trade secret,
Technology and/or Process, if wished by the Company) manufacture or have manufactured the Licensed Products. If the Company does so, then the Parties will amend this License Agreement to provide:

	
	 	 	 	 
			
(a) 		
for the amendment of the definition of “Use” to add the terms “manufacture or have manufactured” and to make other amendments related thereto, and

	
	 	 	 	 
			
(b) 		
[REDACTED: Amendment Condition]

	
	 	 	 	 
			
(c) 		
to provide an undertaking by the Company to provide or to cause any third party manufacturer to provide all financial information required [REDACTED:
Condition]

	
	 	 	 	 
			
(d) 		
to provide all details and documentation to allow the Company and/or manufacturers outsourced by the Company to adequately use the Production knowhow, IP, trade secret, Technology related to the Production
Process.

	
	 	 	 	 
	
13. 		
NON-COMPETITION

	
	 	 	 	 
		
During the Term of this Agreement and for a period of five (5) years thereafter, the Company shall not develop any product containing phospholipids polyunsaturated fatty acids extracted from Krill with any competitor
of the Licensor.

	

- 15 -

	
14. 		
LICENSOR’S CHANGE IN OWNERSHIP OF THE COMPANY

	
	 	 	 	 
		
14.1 		
Should, at any time during the Term of this Agreement:

	
	 	 	 	 
			
(a) 		
the Licensor own, directly and/or indirectly, itself and/or through one or more intermediaries, an aggregate number of voting shares of the Company which in total, [REDACTED: Voting Percentage]

	
	 	 	 	 
			
(b) 		
the Licensor own, directly and/or indirectly, itself and/or through one or more intermediaries, an aggregate number of non-voting shares which entitle the holder to the right to receive dividends and to participate in
assets of the Company upon its dissolution, which in total, [REDACTED: Participation Percentage]

	
	 	 	 	 
			
(c) 		
[REDACTED: Condition]

	

	

The first paragraph of Section 2.1(d) shall be replaced by the following:

“(d) Sublicenses. The Company shall have the right to sublicense the Licensed Intellectual Property but only after having provided a prior written notice to
the Licensor, and provided that:”

	

Section 3.3(a) shall be replaced by the following:

“(a) The Company shall promptly, but in all cases no more than thirty (30) days following the aforementioned development, inform the Licensor of the development of all Company Related
Enhancements and disclose, by written notice to the Licensor, a description of the Company Related Enhancement in reasonably sufficient detail to permit Licensor to evaluate the Company Related
Enhancement.
[REDACTED: Condition]

	

Section 3.5 shall be replaced by the following:

“The Company may, at its option, disclose any Company Independent Development to Licensor, such disclosure to be subject to the confidentiality obligations of this Agreement. Such
notification shall include a description of the Company Independent Development in reasonably sufficient detail to permit the Licensor to evaluate the Company Independent Development. [REDACTED: Condition]

	

Section 3.6 shall be replaced by the following:

“(a) Subject to the Licensor having evaluated the Company Related Enhancement as provided in Section 3.3(a), to the extent any right, title or interest in or to any Company Related
Enhancement or other intellectual property and/or data related to the Company Related Enhancement, vests in the Company, by operation of law or otherwise, in a manner contrary to the agreed upon ownership as
set forth in this Agreement, [REDACTED: Condition]

(b) The Company shall take, or shall cause to be taken, all such actions as shall be necessary, including procuring assignments from individuals, [REDACTED: Condition] 

[REDACTED: Conditions] 

- 16 -

	
 	
 	
 
	
 	
14.2 		
Should, at any time during the Term of this Agreement: [REDACTED: Condition]

	
	 	 	 	 
	 		
	 

	
The first paragraph of Section 2.1(d) shall be replaced by the following:

	
	 	 	 	 
	 			
“(d) Sublicenses. The Company shall have the right to sublicense the Licensed Intellectual Property but only after having provided a prior written notice to the
Licensor, and provided that:”

	
	 	 	 	 
	 		
	 

	
Section 3.3(a) shall be replaced by the following:

	

“(a) The Company shall promptly, but in all cases no more than thirty (30) days following the aforementioned development, inform the Licensor of the development of all Company Related Enhancements and disclose, by written notice to
the Licensor, a description of the Company Related Enhancement in reasonably sufficient detail to permit Licensor to evaluate the Company Related Enhancement. [REDACTED: Condition] 

	
15. 		
MISCELLANEOUS

	
	 	 	 
		
15.1 		
Further Assurances. Each Party shall take such action as the other Party may reasonably request to effect, perfect or confirm such other Party's ownership interests and other rights as set
forth in this Agreement, including, without limitation, by promptly (a) executing instruments of assignment, declarations, affirmations or other documents in connection with the applicable provisions of this Agreement, and (b) confirming in writing
all waivers and consents under this Agreement, that are requested by a Party from time to time.

	
	 	 	 
		
15.2 		
Assignment. This Agreement may not be assigned, in whole or in part, by the Company without Licensor's express, prior written consent. Any attempted assignment by the Company shall be null
and void. Licensor may assign this Agreement in whole or in part upon notice to the Company, provided that Licensor’s successor agrees to be bound by the terms and conditions of this Agreement.

	
	 	 	 
		
15.3 		
Successors; Assigns. The provisions of this Agreement shall be binding upon the Parties and their respective permitted successors and assigns.

	
	 	 	 
		
15.4 		
Section Headings. The section headings of this Agreement are for organizational purposes only and shall not be used in interpreting this Agreement. References to a section includes reference
to all subsections of that section.

	
	 	 	 
		
15.5 		
Severability. In the event that any provision of this Agreement is found by a court of competent jurisdiction to be invalid or unenforceable, that provision shall be construed so as to give
closest effect to the intent of the Parties, and the remaining portions of this Agreement shall remain in full force and effect.

	

- 17 -

	
 	
15.6 		
Relationship. Nothing contained in this Agreement shall be construed as creating a joint venture, partnership, agency, fiduciary or employment relationship between the Parties.

	
	 	 	 
	
 	
15.7 		
Waiver. No waiver of any term or breach hereof shall be effective unless such waiver is in writing and signed by the party against whom such waiver is claimed. No waiver of, or failure to
enforce, any term or breach hereof shall be deemed to be a waiver of any other term or breach or subsequent breach.

	
	 	 	 
	
 	
15.8 		
Survival. Termination of this Agreement for any cause shall not release any Party hereto from any liability which at the time of termination has already accrued to the other parties hereto
or which thereafter may accrue in respect of any act or omission prior to such termination, nor shall any such termination hereof affect in any way the survival of and right, duty, or obligation of any parties hereto which is expressly stated
elsewhere in this Agreement to survive termination hereof.

	
	 	 	 
	
 	
15.9 		
Entire Agreement; Amendments. This Agreement, includingall schedules hereto, which are hereby incorporated by reference, constitute the entire agreement between the Parties with respect to
the subject matter hereof, and supersede all previous or contemporaneous agreements, proposals, understandings and representations, written or oral, with respect to the terms and conditions hereof. No amendment, change, waiver, or discharge hereof
shall be valid unless in writing and signed by the Party against which such amendment, change, waiver or discharge is sought to be enforced.

	
	 	 	 
	
 	
15.10 		
Governing Law. This Agreement shall be governed exclusively by the laws in effect in the province of Quebec, without regard to the conflict of laws principles thereof, except for the
construction or enforcement of any Licensed Patents in which case the laws of the jurisdiction under which any such Licensed Patent was issued shall govern such Licensed Patent’s construction and enforcement to the extent necessary.

	
	 	 	 
	
 	
15.11 		
Arbitration. All disputes arising out of this Agreement shall be finally settled by final and binding arbitration in Montreal, Canada, before, and under the then current commercial
arbitration rules of the Quebec Civil Code, subject to the additional limitations set forth herein. The arbitration shall be conducted by a single arbitrator appointed in accordance with such rules. Discovery (e.g., document production; examination
of the other Party’s witnesses and depositions) will be permitted in the written form only, except for cross-examination as further provided herein. The Parties agree that the decision of the arbitrator shall be final and binding. The
arbitration hearing shall be held no later than two (2) months from the date of the notice from one Party to another Party of its intent to proceed to arbitration. The arbitration shall take no more than two days, and each Party shall have a total
of up to four (4) hours to cross-examine the other Party’s witnesses on the first day, and each Party shall have a total of up to four (4) hours to present/rebut its case on the second day, with the arbitrator announcing the decision at the end
of such presentations/rebuttals. Judgment on any decision made by the arbitrator may be entered and enforced in any court of competent jurisdiction. All fees and charges of the arbitrator shall be shared equally by the Parties unless otherwise
specified by the arbitrator; each Party shall be responsible for the payment of all fees and expenses connected with the presentation of its respective case, provided that the arbitrator may in his/her discretion award to the prevailing Party the
costs and expenses incurred by the prevailing Party in connection with the arbitration proceeding. The arbitration shall be confidential. The arbitrator shall not include any confidential information of the Parties in his/her arbitration decision or append any document which includes confidential information to his/her
arbitration decision.

	

- 18 -

	
 	
15.12 		
Injunctive Relief. Notwithstanding anything herein to the contrary, either Party may seek from a court of competent jurisdiction interim, provisional or permanent relief in the form of a
temporary restraining order, preliminary injunction, permanent injunction or other equitable relief concerning any Dispute. Without limiting the generality of the foregoing, Section 14.15 shall be specifically enforceable by both Parties.

	
	 	 	 
	
 	
15.13 		
Force Majeure. Neither Party shall be liable for any failure or delay in its performance under this Agreement (other than payment obligations) due to any cause beyond its reasonable control,
including, without limitation, any act of war, acts of God, earthquake, flood, embargo, riot, sabotage, labor shortage or dispute, governmental act or failure of the Internet (each, a “Force Majeure Event”), provided that the affected Party: (a) gives the other Party prompt notice of such cause, and (b) uses its commercially reasonable efforts to correct promptly, such failure or delay in performance. If the performance of any part of
this Agreement by either Party is prevented, hindered, delayed or otherwise made impracticable by reason of any flood, riot, fire, judicial or governmental action, labor shortage or dispute, act of God or any other causes beyond the control of
either Party, that Party shall be excused from such to the extent, and for so long as, it is prevented, hindered or delayed by such causes.

	
	 	 	 
	
 	
15.14 		
Notice. Any notice pursuant to this Agreement, if specified to be in writing, shall be in writing and shall be deemed given (a) if by hand delivery, upon receipt thereof, (b) if by facsimile
transmission, upon electronic confirmation thereof, if promptly followed by a confirmation copy sent by registered mail, return receipt requested, (c) if by electronic mail, upon receipt of confirmation electronic mail message, if promptly followed
by a confirmation copy registered mail, return receipt requested, or (d) if by internationally recognized courier delivery service (such as Federal Express), upon such delivery. All notices shall be addressed as follows (or such other address as
either Party may in the future specify in writing to the other):

	

	
In the case of Licensor:
		
Neptune Technologies & Bioressources Inc.
	
	
 
		
225, Promenade du Centropolis, Suite 200
	
	
 
		
Laval, Quebec, Canada
	
	
 
		
H7T 0B3

	
 
		
Fax: (450) 687-2262
	
	
 
		
 
	
	
In the case of the Company:
		
Acasti Pharma Inc.
	
	
 
		
225, Promenade du Centropolis, Suite 200
	
	
 
		
Laval, Quebec, Canada
	
	
 
		
H7T 0B3

	
 
		
Fax: (450) 687-2262
	

	
 	
15.15 		
Marking Obligations. The Company shall accurately produce or reproduce all Licensor copyright notices and other proprietary rights logos and legends, on all copies of Licensed Intellectual
Property and any related documentation the Company produces or reproduces.

	

- 19 -

	
 	
15.16 		
Interpretation. The Company and Licensor agree and acknowledge that this Agreement has been freely negotiated and entered into by each Party and that no court should in any manner construe
any ambiguity against the draftsman solely by virtue of its role as draftsman.

	
	 	 	 
	
 	
15.17 		
Counterparts. This Agreement may be executed in several counterparts, which may be delivered by facsimile transmission (provided that originals are thereafter promptly delivered by
registered mail, return receipt requested), all of which taken together shall constitute the entire agreement between the Parties hereto.

	

IN WITNESS WHEREOF the Parties hereto have executed this Agreement by persons duly authorized as of the date and year first above written. 

NEPTUNE TECHNOLOGIES & BIORESSOURCES INC.

    /s/ André Godin                                                        
    

          André Godin 

          Vice-President, Administration and Finance

ACASTI PHARMA INC.

    /s/ Henri Harland                                                        
 

          Henri Harland 

          President and CEO

- 20 -

SCHEDULE A 

LICENSED PATENTS

[REDACTED: Patents]

- 21 -

SCHEDULE B 

DEVELOPMENT AND COMMERCIALIZATION OF LICENSED PRODUCTS

[REDACTED: Technical Conditions] 

- 1 -

SCHEDULE 7.1 

CLAIMS RELATING TO THE LICENSED INTELLECTUAL PROPERTY

[REDACTED: Claims] 

- 2 -

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