Document:

Exhibit 10.1

 

SHARE EXCHANGE AGREEMENT

 

This Share Exchange
Agreement, dated as of June 19, 2015, (this “Agreement”) by and among Aqua Power Systems Inc., a State of
Nevada corporation having its executive offices at 1107 Town Creek Road, Eden, North Carolina, USA 27288, (“APSI”),
and Aqua Power System Japan Kabushiki Kaisha, (“AP Japan”), a corporation in Japan with an office at 2-7-17
Omorihoncho, Tokyo, Ota-ku, Japan, 143-0011, and Tadashi Ishikawa (“AP Japan Shareholder”), with an address
at 2-7-17 Omorihoncho, Tokyo, Ota-ku, Japan, 143-0011. For purposes of this Agreement, APSI, AP Japan, and the AP Japan Shareholder
are sometimes collectively referred to as the “Parties” and individually as a “Party”.

 

RECITALS

 

WHEREAS, on
May 29, 2015, the Parties hereto entered into that certain License and Option Agreement (the “License Agreement”),
whereby, APSI entered into a licensing and option agreement with the Shareholder, and Aqua Power Japan. Pursuant to the terms of
the licensing and option agreement, APSI agreed to purchase (i) an exclusive worldwide license to the Intellectual Property and
Products in exchange for a 10% royalty on the net sales by us derived from the use of the License; and, (ii) an option to purchase
an aggregate of 9,890 shares registered to and legally and beneficially owned by the Shareholder representing all of the issued
and outstanding shares of AP Japan; and,

 

WHEREAS, the
Parties have determined that the License Agreement shall be terminated in favor of this Agreement; and,

 

WHEREAS, the
AP Japan Shareholder owns Nine Thousand Eight Hundred Ninety (9,890) shares of APSI, which represents One Hundred (100%) percent
of the AP Japan common stock outstanding immediately prior to the closing on a fully diluted (such shares being hereinafter referred
to as the “AP Japan Shares”); and,

 

WHEREAS, (i)
the AP Japan Shareholder and AP Japan believe it is in their respective best interests for the AP Japan Shareholder to exchange
Nine Thousand Eight Hundred Ninety (9,890) common shares of AP Japan, representing 100% of AP Japan, for Three Million Eight Hundred
Six Thousand Five Hundred Fifty Nine (3,806,559) shares of common stock of APSI at a deemed price of $0.20 per share (such shares
being hereinafter referred to as the “APSI Shares”); and (ii) APSI believes it is in its best interest and the
best interest of its stockholders to acquire the AP Japan Shares in exchange for the APSI Shares, all upon the terms and subject
to the conditions set forth in this Agreement (the “Share Exchange”); and,

 

WHEREAS, in
addition to the Share Exchange, the Parties agree that AP Japan shall receive an aggregate of Five Hundred Fifty Thousand ($550,000)
dollars, in six tranches (i) an aggregate of $50,000 in cash received on June 8, 2015 (ii) an aggregate of $100,000 in cash on
the execution of this Agreement, and (iii) APSI will issue the four promissory notes as attached hereto as Exhibit A to AP Japan
(the “Promissory Notes”); and,

 

WHEREAS, it
is the intention of the parties that: (i) the Share Exchange shall qualify as a tax-free reorganization under Section 368(a)(1)(B)
of the Internal Revenue Code of 1986, as amended (the “Code”); and (ii) the Share Exchange shall qualify as
a transaction in securities exempt from registration or qualification under the Securities Act of 1933, as amended and in effect
on the date of this Agreement (the “Securities Act”); and,

 

WHEREAS, it
is the intention of the parties that upon the Closing (as hereinafter defined) AP Japan shall become a wholly owned subsidiary
of APSI; and,

 

WHEREAS, the
Parties agree that the foregoing Recitals are true and correct and are hereby incorporated into this Agreement by this reference.

 

NOW, THEREFORE,
in consideration of the mutual terms, conditions and other agreements set forth herein, the parties hereto agree as follows:

 

    	 

    	 

    

 

ARTICLE I

 

EXCHANGE OF AP JAPAN SHARES FOR APSI
SHARES

 

Section 1.1           Agreements
to Exchange AP Japan Shares for APSI Shares. On the Closing Date (as hereinafter defined) and upon the terms and subject to
the conditions set forth in this Agreement, the AP Japan Shareholder shall assign, transfer, convey and deliver the AP Japan Shares
to APSI and, in consideration and exchange for the AP Japan Shares, APSI shall issue, transfer, convey and deliver the APSI Shares
to the AP Japan Shareholder.

  

Section 1.2           Closing
and Actions at Closing. The closing of the Share Exchange (the “Closing”) shall take place on June 19, 2015
or on the date via the exchange of documents and signatures at such time and date as the parties hereto shall agree orally or in
writing (the “Closing Date”).

 

Section 1.3           Share
Exchange. After Closing and contingent upon the satisfaction of the terms and conditions set forth in this Agreement, Nine
Thousand Eight Hundred Ninety (9,890) shares of common stock, representing One Hundred (100%) of the AP Japan Shares shall be exchanged
and delivered to APSI in exchange APSI shall exchange and deliver Three Million Eight Hundred Six Thousand Five Hundred Fifty Nine
(3,806,559) restricted common shares of APSI to the AP Japan Shareholder.

 

Section 1.4           Cash
Consideration. The Parties agree that:

 

		(i)	AP Japan received payment of $50,000 from APSI on June
8, 2015;

 

		(ii)	AP Japan shall receive on the execution of this Agreement,
payment of One Hundred Thousand ($100,000) dollars in cash from APSI; and

 

		(iii)	APSI will issue the Promissory Notes (the four promissory
notes for $100,000 each) to AP Japan. Copies of the Promissory Notes are attached hereto as Exhibit A; and,

 

Section 1.5           Restrictions
on APSI Shares Issued Pursuant to this Agreement. The APSI shares to be issued by APSI pursuant to this Agreement have
not been registered and are being issued pursuant to a specific exemption under the Securities Act, as well as under certain
state securities laws for transactions by an issuer not involving any public offering or in reliance on limited federal preemption
from such state securities registration laws, based on the suitability and investment representations made by APSI to the AP Japan
Shareholder. The APSI Shares to be issued by APSI pursuant to this Agreement must be held and may not be sold, transferred, or
otherwise disposed of for value unless such securities are subsequently registered under the Securities Act or an exemption from
such registration is available, and that the certificates representing the Shares of APSI Common Stock issued in the Share Exchange
will bear a legend in substantially the following form so restricting the sale of such securities:

 

The securities represented
by this certificate have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), and
are “restricted securities” within the meaning of Rule 144 promulgated under the Securities Act. The securities have
been acquired for investment and may not be sold or transferred without complying with Rule 144 in the absence of an effective
registration or other compliance under the Securities Act.

 

Section 1.6           Share
Exchange Procedure. The AP Japan Shareholder may exchange his certificate(s) representing the AP Japan Shares by delivering
such certificate(s) to APSI duly executed and endorsed in blank (or accompanied by duly executed stock powers duly endorsed in
blank), in each case in proper form for transfer, with signatures guaranteed, and, if applicable, with all stock transfer
and any other required documentary stamps affixed thereto and with appropriate instructions to allow the transfer agent to issue
certificates for the APSI Shares to the holder thereof, together with a Certificate of Non-U.S. Shareholder, a copy of which attached
hereto as Exhibit B.

 

    	2

    	 

    

 

Section 1.7           Financial
Statements. AP Japan shall deliver all books and records since inception and the financial statements for fiscal years 2014
and 2015 will have been prepared in accordance with Generally Accepted Accounting Principles (“GAAP”) (the “Financial
Statements”) on or before June 30, 2015.All of AP Japan’s assets are reflected on its financial statements, and
AP Japan has no material undisclosed liabilities, direct or indirect, matured or unmatured, contingent or otherwise which are not
reflected on its financial statements.

 

Section 1.8           Cancellation
of Common Shares of APSI. The AP Japan Shareholder will cancel an aggregate of 105,863,935 common shares of APSI registered
to and beneficially owned by the AP Japan Shareholder when the Financial Statements are delivered to APSI by AP Japan.

 

ARTICLE II

 

REPRESENTATIONS AND WARRANTIES OF APSI

 

APSI represent, warrant
and agree that all of the statements in the following subsections of this Article II are true and complete as of the date hereof.

 

Section 2.1  Corporate Organization

 

A.           APSI
is a corporation duly organized, validly existing and in good standing under the laws of Nevada, and has all requisite corporate
power and authority to own its properties and assets and governmental licenses, authorizations, consents and approvals to conduct
its business as now conducted and is duly qualified to do business and is in good standing in each jurisdiction in which the nature
of its activities makes such qualification and being in good standing necessary, except where the failure to be so qualified and
in good standing will not have a Material Adverse Effect on the activities, business, operations, properties, assets, condition
or results of operation of APSI. “Material Adverse Effect” means, when used with respect to APSI, any event,
occurrence, fact, condition, change or effect, which, individually or in the aggregate, would reasonably be expected to be materially
adverse to the business, operations, properties, assets, condition (financial or otherwise), or operating results of APSI, or materially
impair the ability of APSI to perform its obligations under this Agreement, excluding any change, effect or circumstance resulting
from (i) the announcement, pendency or consummation of the transactions contemplated by this Agreement; or (ii) changes in the
U.S. securities markets generally.

 

B.           Copies
of the Articles of Incorporation and Bylaws of APSI with all amendments thereto, as of the date hereof (the “APSI
Charter Documents”), have been furnished to AP Japan, if so requested, and such copies are accurate and complete as
of the date hereof. The minute books of APSI are current as required by law, contain the minutes of all meetings of the APSI Board
and its stockholders from its date of incorporation to the date of this Agreement, and adequately reflect all material actions
taken by the APSI Board and its stockholders. APSI is not in violation of any of the provisions of the APSI Charter Documents.

 

Section 2.2  Capitalization
of APSI.

 

A.           The
authorized capital stock of APSI consists of: (i) 200,000,000 shares of common stock, par value $0.0001, of which 161,124,318 shares
of common stock are issued and outstanding immediately prior to the Share Exchange; and (ii) 10,000,000 shares of preferred stock,
par value $0.0001, of which there are no shares of preferred stock which are issued and outstanding immediately prior to the Share
Exchange.

 

B.           All
of the issued and outstanding shares of common stock of APSI immediately prior to this Share Exchange are, and all shares of common
stock of APSI when issued in accordance with the terms hereof will be, duly authorized, validly issued, fully paid and non-assessable,
will have been issued in compliance with all applicable U.S. federal and state securities laws and state corporate laws, and will
have been issued free of preemptive rights of any security holder. The issuance of all of the shares of APSI described in this
Section 2.2 have been, or will be, as applicable, in compliance with U.S. federal and state securities laws and state corporate
laws and no stockholder of APSI has any right to rescind or bring any other claim against APSI for failure to comply with the Securities
Act, or state securities laws.

 

    	3

    	 

    

 

Section 2.3           Shell
Status. As of the date of this Agreement, APSI represents that to its knowledge and belief it is not and has not been a “shell
company” for the proceeding twelve (12) months, as that term is defined in Rule 405 of the Securities Act and Rule 12b-2
of the Exchange Act. Further, APSI has not filed and Quarterly or Annual Reports with the SEC indicating that it was, during the
relevant period, a shell company. Management represents that during the existence of the entity there has always been a viable
business with ongoing operations and has had more than nominal operations.

 

Section 2.4           Authorization,
Validity and Enforceability of Agreements. APSI has all corporate power and authority to execute and deliver this Agreement
and all agreements, instruments and other documents to be executed and delivered in connection with the transactions contemplated
by this Agreement (collectively the “Agreements”) to perform its obligations hereunder and to consummate the
transactions contemplated hereby and thereby. The execution and delivery of the Agreements by APSI and the consummation by APSI
of the transactions contemplated hereby and thereby, have been duly authorized by all necessary corporate action of APSI, and no
other corporate proceedings on the part of APSI are necessary to authorize the Agreements or to consummate the transactions contemplated
hereby and thereby. The Agreements constitute the valid and legally binding obligation of APSI and is enforceable in accordance
with its terms, except as such enforcement may be limited by general equitable principles, or by bankruptcy, insolvency and other
similar laws affecting the enforcement of creditors rights generally. APSI does not need to give any notice to, make any filings
with, or obtain any authorization, consent or approval of any government or governmental agency or other party in order for it
to consummate the transactions contemplated by any of the Agreements, resulting from the issuance of the APSI Shares in connection
with the Share Exchange.

 

Section 2.5           No
Conflict or Violation. Neither the execution and delivery of the Agreements by APSI, nor the consummation by APSI of the transactions
contemplated thereby will: (i) contravene, conflict with, or violate any provision of the APSI Charter Documents; (ii) violate
any constitution, statute, regulation, rule, injunction, judgment, order, decree, ruling, charge or other restriction of any government,
governmental agency, court, administrative panel or other tribunal to which APSI is subject; (iii) conflict with, result in
a breach of, constitute a default (or an event or condition which, with notice or lapse of time or both, would constitute a default)
under, result in the acceleration of, create in any party the right to accelerate, terminate, modify or cancel, or require any
notice under any agreement, contract, lease, license, instrument or other arrangement to which APSI is a party or by which it is
bound, or to which any of its assets or properties are subject; or (iv) result in or require the creation or imposition of any
encumbrance of any nature upon or with respect to any of APSI’ assets, including without limitation, the APSI Shares.

 

Section 2.6           Litigation.
There is no action, suit, proceeding or investigation (“Action”) pending or, to the knowledge of APSI, currently
threatened against APSI or any of its affiliates, that may affect the validity of this Agreement or the right of APSI to enter
into this Agreement or to consummate the transactions contemplated hereby or thereby. There is no Action pending or, to the knowledge
of APSI, currently threatened against APSI or any of its affiliates, before any court or by or before any governmental body or
any arbitration board or tribunal, nor is there any judgment, decree, injunction or order of any court, governmental department,
commission, agency, instrumentality or arbitrator against or relating to APSI or any of its affiliates. Neither APSI nor any of
its affiliates is a party or subject to the provisions of any order, writ, injunction, judgment or decree of any court or government
agency or instrumentality. There is no Action by APSI or any of its affiliates currently pending or which APSI or any of its affiliates
intends to initiate.

 

Section 2.7           Compliance
with Laws. APSI has been and is in compliance with, and has not received any notice of any violation of any, applicable law,
order, ordinance, regulation or rule of any kind whatsoever, including without limitation the Securities Act, the Exchange Act,
the applicable rules and regulations of the SEC or the applicable securities laws and rules and regulations of any state.

 

Section 2.8           Financial
Statements. APSI’ financial statements have been prepared in accordance with generally accepted accounting principles
applicable in the United States of America (“U.S. GAAP”) applied on a consistent basis, except that those Financial
Statements that are not audited do not contain all footnotes required by U.S. GAAP. Such financial statements fairly present the
financial condition and operating results of APSI as of the dates, and for the periods, indicated therein, subject to normal year-end
audit adjustments. Except for loans in the aggregate of $678,897, APSI has no material liabilities (contingent or otherwise). APSI
is not a guarantor or indemnitor of any indebtedness of any other person, entity or organization. APSI maintains a standard system
of accounting established and administered in accordance with U.S. GAAP.

 

    	4

    	 

    

 

Section 2.9           Books,
Financial Records and Internal Controls. All the accounts, books, registers, ledgers, APSI Board minutes and financial and
other records of whatsoever kind of APSI have been fully, properly and accurately kept and completed; there are no material inaccuracies
or discrepancies of any kind contained or reflected therein; and they give and reflect a true and fair view of the financial, contractual
and legal position of APSI. APSI maintains a system of internal accounting controls sufficient to provide reasonable assurance
that: (i) transactions are executed in accordance with management’s general or specific authorizations; (ii) transactions
are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability;
(iii) access to assets is permitted only in accordance with management’s general or specific authorization; and (iv) the
recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate actions are taken
with respect to any differences.

  

Section 2.10         No
Disagreements with Accountants and Lawyers. There are no disagreements of any kind presently existing, or anticipated by APSI
to arise, between APSI and any accountants and/or lawyers formerly or presently engaged by APSI. APSI is current with respect to
fees owed to its accountants and lawyers.

 

Section 2.11         Absence
of Undisclosed Liabilities. Except for loans in the aggregate of $678,897 and as specifically disclosed herein: (A) there has
been no event, occurrence or development that has resulted in or could result in a Material Adverse Effect; (B) APSI has not incurred
any liabilities, obligations, claims or losses, contingent or otherwise, including debt obligations, other than professional fees
to be paid prior to Closing; (C) APSI has not declared or made any dividend or distribution of cash or property to its shareholders,
purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock, or issued any equity securities
other than with respect to transactions contemplated hereby; (D) APSI has not made any loan, advance or capital contribution to
or investment in any person or entity; (E) APSI has not discharged or satisfied any lien or encumbrance or paid any obligation
or liability (absolute or contingent), other than current liabilities paid in the ordinary course of business; (F) APSI has not
suffered any losses or waived any rights of material value, whether or not in the ordinary course of business, or suffered the
loss of any material amount of prospective business; and (G) except for the Share Exchange, APSI has not entered into any transaction
other than in the ordinary course of business, or entered into any other material transaction, whether or not in the ordinary course
of business.

 

Section 2.12         No
Undisclosed Events or Circumstances. No event or circumstance has occurred or exists with respect to APSI or its respective
businesses, properties, prospects, operations or financial condition, which, under applicable law, rule or regulation, requires
public disclosure or announcement by APSI but which has not been so publicly announced or disclosed. APSI has not provided to AP
Japan, or the AP Japan Shareholder, any material non-public information or other information which, according to applicable law,
rule or regulation, was required to have been disclosed publicly by APSI but which has not been so disclosed, other than with respect
to the transactions contemplated by this Agreement and/or the Share Exchange.

 

Section 2.13         Disclosure.
This Agreement and any certificate attached hereto or delivered in accordance with the terms hereof by or on behalf of APSI in
connection with the transactions contemplated by this Agreement, when taken together, do not contain any untrue statement of a
material fact or omit to state any material fact necessary in order to make the statements contained herein and/or therein not
misleading.

 

Section 2.14         Directors
and Officers of APSI. The duly elected or appointed directors and the duly appointed officers of APSI are set forth on Schedule
2.14.

 

ARTICLE III

 

REPRESENTATIONS AND WARRANTIES OF AP
JAPAN

 

AP Japan represents,
warrants and agrees that all of the statements in the following subsections of this Article III, pertaining to AP Japan, are true
and complete as of the date hereof.

 

    	5

    	 

    

 

Section 3.1           Corporate
Organization

 

A.           AP
Japan is a corporation duly organized, validly existing and in good standing under the laws of Japan, and has all requisite corporate
power and authority to own its properties and assets and governmental licenses, authorizations, consents and approvals to conduct
its business as now conducted and is duly qualified to do business and is in good standing in each jurisdiction in which the nature
of its activities makes such qualification and being in good standing necessary, except where the failure to be so qualified and
in good standing will not have a Material Adverse Effect on the activities, business, operations, properties, assets, condition
or results of operation of AP Japan. “Material Adverse Effect” means, when used with respect to AP Japan, any
event, occurrence, fact, condition, change or effect, which, individually or in the aggregate, would reasonably be expected to
be materially adverse to the business, operations, properties, assets, condition (financial or otherwise), or operating results
of AP Japan, or materially impair the ability of AP Japan to perform its obligations under this Agreement, excluding any change,
effect or circumstance resulting from (i) the announcement, pendency or consummation of the transactions contemplated by this Agreement;
or (ii) changes in the U.S. securities markets generally.

 

B.           Copies
of the formation documents of AP Japan, or their equivalent, with all amendments thereto, as of the date hereof (the “AP
Japan Charter Documents”), have been furnished to APSI, if so requested, and such copies are accurate and complete
as of the date hereof. The minute books of AP Japan are current as required by law, contain the minutes of all meetings of the
AP Japan Board and its stockholders from its date of formation to the date of this Agreement, and adequately reflect all material
actions taken by the AP Japan Board and its stockholders. AP Japan is not in violation of any of the provisions of the AP Japan
Charter Documents.

 

Section 3.2           Capitalization
of AP Japan.

 

A.           The
authorized capital stock of AP Japan consists of: (i) 50,000 shares of common stock, no par value, of which Nine Thousand Eight
Hundred Ninety (9,890) shares of common stock are issued and outstanding immediately prior to the Share Exchange; and (ii) 0 shares
of Preferred Stock.

 

B.           All
of the issued and outstanding shares of common stock of AP Japan immediately prior to this Share Exchange are, and all shares of
common stock of AP Japan when issued in accordance with the terms hereof will be, duly authorized, validly issued, fully paid and
non-assessable, will have been issued in compliance with all applicable securities laws and corporate laws of the Country of Japan,
and will have been issued free of preemptive rights of any security holder. The issuance of all of the shares of AP Japan described
in this Section 2.2 have been, or will be, as applicable, in compliance with U.S. federal and state securities laws and state corporate
laws and no stockholder of AP Japan has any right to rescind or bring any other claim against AP Japan for failure to comply with
the Securities Act, or state securities laws.

 

Section 3.3           Shareholders
of AP Japan’s Common Stock. Schedule 3.3 contains a true and complete list of the holders of all issued and outstanding
shares of AP Japan including number of APSI shares held as of the date of this Agreement.

 

Section 3.4           Directors
and Officers of AP Japan. The duly elected or appointed directors and the duly appointed officers of AP Japan are as set out in
Schedule 3.4.

 

Section 3.5           Financial
Statements. The books and records, financial and otherwise, of AP Japan are, in all material aspects, complete and correct
and have been maintained in accordance with good business and accounting practices since inception. The balance sheets are true
and accurate and present fairly as of their respective dates the financial condition of AP Japan.  As of the date of
such balance sheets, except as and to the extent reflected or reserved against therein, including but not limited to any previous
tax liability AP Japan had no undisclosed liabilities or obligations (absolute or contingent) which are not reflected in the balance
sheets or the notes thereto, and all assets reflected therein are properly reported and present fairly the value of the assets
of AP Japan.

 

Section 3.6           Information.
The information concerning AP Japan set forth in this Agreement is complete and accurate in all material respects and does not
contain any untrue statement of a material fact or omit to state a material fact required to make the statements made, in light
of the circumstances under which they were made, not misleading.

 

    	6

    	 

    

 

Section 3.7           Personal
Property. Each of AP Japan and its subsidiaries possesses, and has good and marketable title of all property necessary for the
continued operation of the business of AP Japan and its subsidiaries as presently conducted and as represented to APSI. All such
property is used in the business of AP Japan and its subsidiaries. All such property is in reasonably good operating condition
(normal wear and tear excepted), and is reasonably fit for the purposes for which such property is presently used. All material
equipment, furniture, fixtures and other tangible personal property and assets owned or leased by AP Japan and its subsidiaries
is owned by AP Japan or its subsidiaries free and clear of all liens, security interests, charges, encumbrances, and other adverse
claims, except as disclosed in Schedule 3.7.

 

Section 3.8           Intellectual
Property. AP Japan represents and warrants that all trademarks and trademark applications, and all patents and patent applications,
as set forth in Schedule 3.8, and any trade secrets, and “know-how” held relating to business of AP Japan, and all
other intangible assets, in AP Japan’s possession or that may be reasonably acquired by AP Japan any other proprietary information
and trade secrets relating to the business of AP Japan (collectively the “Intellectual Property”) shall remain
the intellectual property of AP Japan as of the date of Closing of this Agreement and that AP Japan shall take any steps reasonable
to assign or otherwise transfer any Intellectual Property right to APSI, as necessary to protect APSI’s rights to the same.
Further, AP Japan owns, free and clear of any encumbrance, or has the valid right to sell all Intellectual Property used by in
its business, as currently conducted. AP Japan represents that it has not received any written complaint, claim or notice alleging
any such infringement, violation or misappropriation. Additionally, AP Japan has taken reasonable precautions (i) to protect its
rights in its Intellectual Property and (ii) to maintain the confidentiality of its trade secrets, know-how and other confidential
Intellectual Property, related to the business and to AP Japan’s knowledge, there have been no acts or omissions by the managers,
members, employees and agents of AP Japan, the result of which would be to materially compromise the rights of AP Japan to apply
for or enforce appropriate legal protection of AP Japan’s Intellectual Property.

 

Section 3.8           Products.
Schedule 3.9 contains a complete list of products currently being sold, developed or marketed by AP Japan.

 

Section 3.10         Material
Contracts and Transactions. Schedule 3.10 attached hereto lists each material contract, agreement, license, permit, arrangement,
commitment, instrument or contract to which AP Japan or any of its subsidiaries is a party (each, a “Contract”).
Each Contract is in full force and effect, and there exists no material breach or violation of or default by AP Japan or any of
its subsidiaries under any Contract, or any event that with notice or the lapse of time, or both, will create a material breach
or violation thereof or default under any Contract by AP Japan or any of its subsidiaries. The continuation, validity, and effectiveness
of each Contract will in no way be affected by the consummation of the Transaction or any of the transactions contemplated in this
Agreement. There exists no actual or threatened termination, cancellation, or limitation of, or any amendment, modification, or
change to any Contract.

 

Section 3.11         Subsidiaries.
Except as set forth on Schedule 3.11, AP Japan does not have any subsidiaries or agreements of any nature to acquire any subsidiary
or to acquire or lease any other business operations.

 

Section 3.12         Absence
of Certain Changes or Events. As of the date of this Agreement, (a) there has not been any material adverse change in the business,
operations, properties, assets, or condition (financial or otherwise) of AP Japan; and (b) AP Japan has not: (i) declared or made,
or agreed to declare or make, any payment of dividends or distributions of any assets of any kind whatsoever to stockholders or
purchased or redeemed, or agreed to purchase or redeem, any of its shares; (ii) made any material change in its method of management,
operation or accounting; (iii) entered into any other material transaction other than in the ordinary course of its business; or
(iv) made any increase in or adoption of any profit sharing, bonus, deferred compensation, insurance, pension, retirement, or other
employee benefit plan, payment, or arrangement made to, for, or with its officers, directors, or employees.

 

Section 3.13         Litigation
and Proceedings. There are no actions, suits, proceedings, or investigations pending or, to the knowledge of AP Japan after
reasonable investigation, threatened by or against AP Japan or affecting AP Japan or its properties, at law or in equity,
before any court or other governmental agency or instrumentality, domestic or foreign, or before any arbitrator of any kind.  AP
Japan does not have any knowledge of any material default on its part with respect to any judgment, order, injunction, decree,
award, rule, or regulation of any court, arbitrator, or governmental agency or instrumentality.

  

    	7

    	 

    

 

Section 3.14         Compliance
With Laws and Regulations. To the best of its knowledge, AP Japan has complied with all applicable statutes and regulations,
except to the extent that noncompliance would not materially and adversely affect the business, operations, properties, assets,
or condition of AP Japan or except to the extent that noncompliance would not result in the occurrence of any material liability
for AP Japan.  This compliance includes, but is not limited to, the filing of all reports to date with relevant authorities.

 

Section 3.15         Approval
of Agreement. The Board of Directors of AP Japan has authorized the execution and delivery of this Agreement by AP Japan and
has approved this Agreement and the transactions contemplated hereby.

 

Section 3.16         Valid
Obligation. This Agreement and all agreements and other documents executed by AP Japan in connection herewith constitute the
valid and binding obligation of AP Japan, enforceable in accordance with its or their terms, except as may be limited by bankruptcy,
insolvency, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and subject to the
qualification that the availability of equitable remedies is subject to the discretion of the court before which any proceeding
therefore may be brought.

 

ARTICLE IV

 

REPRESENTATIONS AND WARRANTIES OF AP
JAPAN SHAREHOLDER

 

The AP Japan Shareholder
hereby severally and not jointly represents and warrants to APSI:

 

Section 4.1           Authority.
The AP Japan Shareholder has the right, power, authority and capacity to execute and deliver this Agreement to which such AP Japan
Shareholder is a party, to consummate the transactions contemplated by this Agreement, and to perform such AP Japan Shareholder’s
obligations under this Agreement. This Agreement has been duly and validly authorized and approved, executed and delivered by the
AP Japan Shareholder. Assuming this Agreement has been duly and validly authorized, executed and delivered by the parties thereto
other than such AP Japan Shareholder, this Agreement is duly authorized, executed and delivered by the AP Japan Shareholder and
constitutes the legal, valid and binding obligations of the AP Japan Shareholder, enforceable against the AP Japan Shareholder
in accordance with their respective terms, except as such enforcement is limited by general equitable principles, or by bankruptcy,
insolvency and other similar laws affecting the enforcement of creditors’ rights generally.

 

Section 4.2           No
Conflict. Neither the execution or delivery by the AP Japan Shareholder of this Agreement to which the AP Japan Shareholder
is a party nor the consummation or performance by the AP Japan Shareholder of the transactions contemplated hereby or thereby will,
directly or indirectly, (a) contravene, conflict with, or result in a violation of any provision of the organizational documents
of the AP Japan Shareholder; (b) contravene, conflict with, constitute a default (or an event or condition which, with notice
or lapse of time or both, would constitute a default) under, or result in the termination or acceleration of, any agreement or
instrument to which any of the AP Japan Shareholder is a party or by which the properties or assets of the AP Japan Shareholder
is bound; or (c) contravene, conflict with, or result in a violation of, any law or order to which any of the AP Japan Shareholder,
or any of the properties or assets of the AP Japan Shareholder, may be subject.

 

Section 4.3           Litigation. There is no pending Action against the AP Japan Shareholder that involves the AP Japan Shares or that challenges,
or may have the effect of preventing, delaying or making illegal, or otherwise interfering with, any of the transactions contemplated
by this Agreement or the business of AP Japan and, to the knowledge of the AP Japan Shareholder, no such Action has been threatened,
and no event or circumstance exists that is reasonably likely to give rise to or serve as a basis for the commencement of any such
Action.

  

Section 4.4           Ownership
of Shares. The AP Japan Shareholder is the record and beneficial owner of the AP Japan Shares. The AP Japan Shareholder is
not the record or beneficial owner of any other shares of AP Japan. The AP Japan Shareholder has and shall transfer at the Closing,
good and marketable title to the AP Japan Shares, free and clear of all liens, claims, charges, encumbrances, pledges, mortgages,
security interests, options, rights to acquire, proxies, voting trusts or similar agreements, restrictions on transfer or adverse
claims of any nature whatsoever, excepting only restrictions on future transfers imposed by applicable law.

 

    	8

    	 

    

 

Section 4.5           Pre-emptive
Rights. The AP Japan Shareholder has no pre-emptive rights or any other rights to acquire any shares of AP Japan that have
not been waived or exercised.

 

ARTICLE V

 

CONDITIONS TO OBLIGATIONS OF AP JAPAN
AND THE AP JAPAN SHAREHOLDER

 

The obligations of
AP Japan to consummate the transactions contemplated by this Agreement are subject to the fulfillment, at or before the Closing
Date, of the following conditions, any one or more of which may be waived by AP Japan or the AP Japan Shareholder, as the case
may be, in their sole discretion:

 

Section 5.1          Representations
and Warranties of APSI. All representations and warranties made by APSI in this Agreement shall be true and correct in all
material respects on and as of the Closing Date.

 

Section 5.2          Agreements
and Covenants. APSI shall have performed and complied in all material respects with all agreements and covenants required by
this Agreement to be performed or complied with on or prior to the Closing Date.

 

Section 5.3          Consents
and Approvals. All consents, waivers, authorizations and approvals of any governmental or regulatory authority, domestic or
foreign, and of any other person, firm or corporation, required in connection with the execution, delivery and performance of this
Agreement shall be in full force and effect on the Closing Date.

 

Section 5.4           No
Violation of Orders. No preliminary or permanent injunction or other order issued by any court or governmental or regulatory
authority, domestic or foreign, nor any statute, rule, regulation, decree or executive order promulgated or enacted by any government
or governmental or regulatory authority, which declares this Agreement invalid in any respect or prevents the consummation of the
transactions contemplated hereby, or which materially and adversely affects the assets, properties, operations, prospects, net
income or financial condition of APSI shall be in effect; and no action or proceeding before any court or governmental or regulatory
authority, domestic or foreign, shall have been instituted or threatened by any government or governmental or regulatory authority,
domestic or foreign, or by any other person or entity, which seeks to prevent or delay the consummation of the transactions contemplated
by this Agreement or which challenges the validity or enforceability of this Agreement.

 

Section 5.5           Documents.
APSI must have caused the following documents to be delivered to AP Japan:

 

A.           share
certificates evidencing the APSI Shares registered in the name of the AP Japan Shareholder;

 

B.            this
Agreement duly executed;

 

C.           such
other documents as AP Japan or the AP Japan Shareholder may reasonably request for the purpose of (i) evidencing the accuracy of
any of the representations and warranties of APSI, (ii) evidencing the performance of, or compliance by APSI with any covenant
or obligation required to be performed or complied with by APSI, (iii) evidencing the satisfaction of any condition referred to
in this Article V, or (iv) otherwise facilitating the consummation or performance of any of the transactions contemplated by this
Agreement.

 

D.           a
fully completed and executed Certificate of Non-U.S. Shareholder (as attached hereto as Exhibit B and entered into by the AP Japan
Shareholder);

 

Section 5.6          No
Material Adverse Effect.  There shall not have been any event, occurrence or development that has resulted
in or could result in a Material Adverse Effect on or with respect to APSI.

 

    	9

    	 

    

 

Section 5.7           Employment
Agreements. APSI will have received from AP Japan copies of all agreements or arrangements that evidence the employment of
all of the hourly and salaried employees of AP Japan as set forth on Schedule 5.7 attached hereto, which constitute all of the
employees reasonably necessary to operate the business of AP Japan substantially as presently operated.

  

ARTICLE VI

 

CONDITIONS TO OBLIGATIONS OF APSI

 

The obligations of
APSI to consummate the transactions contemplated by this Agreement are subject to the fulfillment, at or before the Closing Date,
of the following conditions, any one or more of which may be waived by APSI in its sole discretion:

 

Section 6.1           Representations
and Warranties of AP Japan and the AP Japan Shareholder. All representations and warranties made by AP Japan and the AP Japan
Shareholder on behalf of themselves individually in this Agreement shall be true and correct on and as of the Closing Date.

 

Section 6.2           Approval
by Majority Consent.  The holders of at least a majority (51%) of the outstanding shares of common stock of AP Japan
must approve this Agreement by written consent prior to the Closing Date.

 

Section 6.3           Agreements
and Covenants. AP Japan and the AP Japan Shareholder shall have performed and complied in all material respects with all agreements
and covenants required by this Agreement to be performed or complied with by each of them on or prior to the Closing Date.

 

Section 6.4           Consents
and Approvals. All consents, waivers, authorizations and approvals of any governmental or regulatory authority, domestic or
foreign, and of any other person, firm or corporation, required in connection with the execution, delivery and performance of this
Agreement, shall have been duly obtained and shall be in full force and effect on the Closing Date.

 

Section 6.5           No
Violation of Orders. No preliminary or permanent injunction or other order issued by any court or other governmental or regulatory
authority, domestic or foreign, nor any statute, rule, regulation, decree or executive order promulgated or enacted by any government
or governmental or regulatory authority, domestic or foreign, that declares this Agreement invalid or unenforceable in any respect
or which prevents the consummation of the transactions contemplated hereby, or which materially and adversely affects the assets,
properties, operations, prospects, net income or financial condition of AP Japan shall be in effect; and no action or proceeding
before any court or government or regulatory authority, domestic or foreign, shall have been instituted or threatened by any government
or governmental or regulatory authority, domestic or foreign, or by any other person or entity, which seeks to prevent or delay
the consummation of the transactions contemplated by this Agreement or which challenges the validity or enforceability of this
Agreement.

 

Section 6.6           Documents.
AP Japan and the AP Japan Shareholder must deliver to APSI at the Closing:

 

A.           share
certificates evidencing the number of AP Japan Shares, along with executed share transfer forms transferring such AP Japan Shares
to APSI;

 

B.           this
Agreement to which the AP Japan and the AP Japan Shareholder are each a party, duly executed; and

 

C.           such
other documents as APSI may reasonably request for the purpose of (i) evidencing the accuracy of any of the representations and
warranties of AP Japan and the AP Japan Shareholder, (ii) evidencing the performance of, or compliance by AP Japan and the AP Japan
Shareholder with, any covenant or obligation required to be performed or complied with by AP Japan and the AP Japan Shareholder,
as the case may be, (iii) evidencing the satisfaction of any condition referred to in this Article VI, or (iv) otherwise facilitating
the consummation or performance of any of the transactions contemplated by this Agreement.

 

    	10

    	 

    

 

Section 6.7           Cash
Consideration. Concurrently with the execution of this Agreement, APSI shall remit by wire transfer good and lawful funds in
the amount of One Hundred Thousand ($100,000) dollars to AP Japan as set out in Section 1.4 of this Agreement. 

 

Section 6.8           No
Claim Regarding Stock Ownership or Consideration. There must not have been made or threatened by any person, any claim asserting
that such person (a) is the holder of, or has the right to acquire or to obtain beneficial ownership of the AP Japan Shares, or
any other stock, voting, equity, or ownership interest in, AP Japan, or (b) is entitled to all or any portion of the APSI Shares.

 

ARTICLE VII

 

SURVIVAL AND INDEMNIFICATION

 

Section 7.1           Survival
of Provisions. The respective representations, warranties, covenants and agreements of each of the parties to this Agreement
(except covenants and agreements which are expressly required to be performed and are performed in full on or before the Closing
Date) shall expire on the first day of the three-year anniversary of the Closing Date (the “Survival Period”).
The right to indemnification, payment of damages or other remedy based on such representations, warranties, covenants, and obligations
will not be affected by any investigation conducted with respect to, or any knowledge acquired (or capable of being acquired) at
any time, whether before or after the execution and delivery of this Agreement, with respect to the accuracy or inaccuracy of or
compliance with, any such representation, warranty, covenant, or obligation. The waiver of any condition based on the accuracy
of any representation or warranty, or on the performance of or compliance with any covenant or obligation, will not affect the
right to indemnification, payment of damages, or other remedy based on such representations, warranties, covenants, and obligations.

 

Section 7.2  Indemnification.

 

A.            Indemnification
Obligations in favor of APSI. From and after the Closing Date until the expiration of the Survival Period, AP Japan shall reimburse
and hold harmless APSI and its shareholders (such person and their heirs, executors, administrators, agents, successors and assigns
is referred to herein as a “APSI Indemnified Party”) against and in respect of any and all damages, losses,
settlement payments, in respect of deficiencies, liabilities, costs, expenses and claims suffered, sustained, incurred or required
to be paid by such APSI Indemnified Party, and any and all actions, suits, claims, or legal, administrative, arbitration, governmental
or other procedures or investigation against any APSI Indemnified Party, which arises or results from a third-party claim brought
against a APSI Indemnified Party to the extent based on a breach of the representations and warranties with respect to the business,
operations or assets of AP Japan. All claims of APSI pursuant to this Section 7.2 shall be brought by APSI on behalf of APSI and
those Persons who were stockholders of APSI immediately prior to the Closing Date.  In no event shall any such indemnification
payments exceed $50,000 in the aggregate from AP Japan.   No claim for indemnification may be brought under this
Section 7.2(A) unless all claims for indemnification, in the aggregate, total more than $10,000.

 

B.            Indemnification
Obligations in favor of AP Japan and the AP Japan Shareholder. From and after the Closing Date until the expiration of the
Survival Period, APSI and the APSI shareholders shall indemnify and hold harmless AP Japan, the AP Japan Shareholder, and his respective
officers, directors, agents, attorneys and employees, and each person, if any, who controls or may “control” (within
the meaning of the Securities Act) any of the forgoing persons or entities from and against any and all losses, costs, damages,
liabilities and expenses arising from claims, demands, actions, causes of action, including, without limitation, legal fees (collectively,
“Damages”) arising out of: (i) any breach of representation or warranty made by APSI in this Agreement
and in any certificate delivered by APSI pursuant to this Agreement; (ii) any breach by APSI of any covenant, obligation or
other agreement made by APSI in this Agreement; and (iii) a third-party claim based on any acts or omissions by APSI. In no
event shall any such indemnification payments exceed $50,000 in the aggregate from APSI.  No claim for indemnification
may be brought under this Section 7.2(B) unless all claims for indemnification, in the aggregate, total more than $10,000.

 

    	11

    	 

    

 

ARTICLE VIII

 

MISCELLANEOUS PROVISIONS

 

Section 8.1           Successors
and Assigns. This Agreement shall inure to the benefit of, and be binding upon, the parties hereto and their respective successors
and assigns; provided that no party shall assign or delegate any of the obligations created under this Agreement without the prior
written consent of the other parties.

 

Section 8.2           Fees
and Expenses. Except as otherwise expressly provided in this Agreement, all legal and other fees, costs and expenses incurred
in connection with this Agreement and the transactions contemplated hereby shall be paid by each Party, as incurred respectively.

 

Section 8.3           Notices.
All notices and other communications given or made pursuant hereto shall be in writing and shall be deemed to have been given or
made if in writing and delivered personally or 7 days after being sent by registered or certified mail (postage prepaid, return
receipt requested) to the parties at the addresses set forth in the Preamble of this Agreement, or to such other persons or at
such other addresses as shall be furnished by any party by like notice to the others, and such notice or communication shall be
deemed to have been given or made as of the date so delivered or mailed. No change in any of such addresses shall be effective
insofar as notices under this Section 8.3 are concerned unless notice of such change shall have been given to such other party
hereto as provided in this Section 8.3.

 

Section 8.4           Entire
Agreement. This Agreement, together with the exhibits hereto, represents the entire agreement and understanding of the parties
with reference to the transactions set forth herein and no representations or warranties have been made in connection with this
Agreement other than those expressly set forth herein or in the exhibits, certificates and other documents delivered in accordance
herewith. This Agreement supersedes all prior negotiations, discussions, correspondence, communications, understandings and agreements
between the parties relating to the subject matter of this Agreement and all prior drafts of this Agreement, all of which are merged
into this Agreement. No prior drafts of this Agreement and no words or phrases from any such prior drafts shall be admissible into
evidence in any action or suit involving this Agreement.

 

Section 8.5           Severability.
This Agreement shall be deemed severable, and the invalidity or unenforceability of any term or provision hereof shall not affect
the validity or enforceability of this Agreement or of any other term or provision hereof. Furthermore, in lieu of any such invalid
or unenforceable term or provision, the parties hereto intend that there shall be added as a part of this Agreement a provision
as similar in terms to such invalid or unenforceable provision as may be possible so as to be valid and enforceable.

 

Section 8.6           Titles
and Headings. The Article and Section headings contained in this Agreement are solely for convenience of reference and shall
not affect the meaning or interpretation of this Agreement or of any term or provision hereof.

 

Section 8.7           Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which together
shall be considered one and the same agreement. Fax and PDF copies shall be considered originals for all purposes.

 

Section 8.8           Convenience
of Forum; Consent to Jurisdiction. The parties to this Agreement, acting for themselves and for their respective successors
and assigns, without regard to domicile, citizenship or residence, hereby expressly and irrevocably elect as the sole judicial
forum for the adjudication of any matters arising under or in connection with this Agreement, and consent and subject themselves
to the jurisdiction of, the courts of the State of Nevada, and/or the U.S. District Court for Nevada, in respect of any matter
arising under this Agreement. Service of process, notices and demands of such courts may be made upon any party to this Agreement
by personal service at any place where it may be found or giving notice to such party as provided in Section 8.3.

 

    	12

    	 

    

 

Section 8.9           Enforcement
of the Agreement. The parties hereto agree that irreparable damage would occur if any of the provisions of this Agreement were
not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the parties shall
be entitled to an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions
hereto, this being in addition to any other remedy to which they are entitled at law or in equity.

 

Section 8.10         Governing
Law. This Agreement shall be governed by and interpreted and enforced in accordance with the laws of the State of Nevada without
giving effect to the choice of law provisions thereof.

 

[THIS PART LEFT INTENTIONALLY BLANK]

 

    	13

    	 

    

 

Section 8.11         Amendments
and Waivers. Except as otherwise provided herein, no amendment of any provision of this Agreement shall be valid unless the
same shall be in writing and signed by all of the parties hereto. No waiver by any party of any default, misrepresentation, or
breach of warranty or covenant hereunder, whether intentional or not, shall be deemed to extend to any prior or subsequent default,
misrepresentation, or breach of warranty or covenant hereunder or affect in any way any rights arising by virtue of any such prior
or subsequent occurrence.

 

IN WITNESS WHEREOF,
the parties hereto have executed this Agreement as of the date first above written.

 

	AQUA POWER SYSTEMS INC.	 
	 	 	 
	Per:	/s/Tadashi Ishikawa	 
	 	Name: Tadashi Ishikawa	 
	 	Title: Director	 
	 	 
	AQUA POWER SYSTEM JAPAN KABUSHIKI KAISHA	 
	 	 	 
	Per:	/s/Tadashi Ishikawa	 
	 	Name: Tadashi Ishikawa	 
	 	Title: President and Director	 
	 	 
	AP JAPAN SHAREHOLDER	 
	 	 	 
	Per:	/s/Tadashi Ishikawa	 
	 	Name: Tadashi Ishikawa	 

 

    	14

    	 

    

 

EXHIBIT A

 

UNSECURED PROMISSORY NOTE

 

	 	 
	PRINCIPAL AMOUNT:  	$100,000.00
	 	 
	LOAN DATE:  	Dated as of the Share Exchange Agreement dated June 19, 2015 by and among Aqua Power Systems Inc., Aqua Power System Japan Kabushiki Kaisha, and Mr. Tadashi Ishikawa
	 	 
	INTEREST RATE: 	0.00%
	 	 
	DEBTOR:	Aqua Power Systems Inc.
	 	 
	CREDITOR:	Aqua Power System Japan Kabushiki Kaisha
	 	 
	PAYMENT:	The Due Date

 

1.          Principal
Repayment. For value received, Aqua Power Systems, Inc., a Nevada corporation (the “Debtor”) hereby unconditionally
promises to pay to the order of Aqua Power System Japan Kabushiki Kaisha (the “Creditor”), the principal amount
of $100,000.00. The principal amount is due and payable on July 31, 2015 (the “Due Date”).

 

2.          Payment
Terms. The Debtor shall pay the principal in full on or before Due Date, this Note shall bear no interest.

 

3.          Default.
Debtor will be in default if any of the following occur:

 

		(a)	The Debtor fails to make the Principal Repayment when
due;

 

		(b)	The Debtor breaks any promise that the Debtor has made
to the Creditor in this Note Debtor fails to perform promptly at the time and strictly in the manner provided in this Note;

 

		(c)	Any representation or statement made or furnished to
the Creditor by the Debtor or on Debtor's behalf in connection with this Note is false or misleading in any material respect;
or,

 

		(d)	A receiver is appointed for any part of the Debtor's
property, the Debtor makes an assignment for the benefit of creditors, or any proceeding is commenced either by the Debtor or
against the Debtor under any Bankruptcy or insolvency laws seeking the liquidation or reorganization of the Debtor and such proceeding
is not dismissed within 60 days after such filing.

 

4.          Debtor’s
Right to Prepay. The Debtor may pay without penalty, all or a portion of the amount owed earlier that it is due. Any prepayment
shall be first applied against any accrued and unpaid interest and then to reduce the amount of principal due under this Note.

 

5.          Waiver
of Demand, Presentment, etc. The Debtor hereby expressly waives demand and presentment for payment, notice of nonpayment, protest,
notice of protest, notice of dishonor, notice of acceleration or intent to accelerate, bringing of suit and diligence in taking
any action to collect amounts called for hereunder and shall be directly and primarily liable for the payment of all sums owing
and to be owing hereunder, regardless of and without any notice, diligence, act or omission as or with respect to the collection
of any amount called for hereunder.

 

    	15

    	 

    

 

6.          Payment.
Except as otherwise provided for herein, all payments with respect to this Note shall be made in lawful currency of the United
States of America by check or wire transfer of immediately available funds, at the option of the Creditor, at the principal office
of the Creditor or such other place or places or designated accounts as may be reasonably specified by the Creditor of this Note
in a written notice to the Debtor at least one (1) business day prior to payment.

 

7.          Assignment.
The rights and obligations of the Debtor and the Creditor of this Note shall be binding upon, and inure to the benefit of, the
permitted successors, assigns, heirs, administrators and transferees of the parties hereto.

 

8.          Waiver
and Amendment. Any provision of this Note, including, without limitation, the due date hereof, and the observance of any term
hereof, may be amended, waived or modified (either generally or in a particular instance and either retroactively or prospectively)
only with the written consent of the Debtor and the Creditor

 

9.          Notices.
Any notice, payment or other communication required or permitted hereunder shall be expressed in writing and sent by certified
or registered mail, return receipt requested, to their respective parties at the following addresses, or at such other addresses
as the parties shall designate by written notice to be the other:

 

If to the Creditor to:

2-7-17 Omorihoncho,

Tokyo, Ota-ku,
Japan,

143-0011

 

If
to the Debtor to:

1107 Town
Creek Road

Eden, NC
27288

 

10.         Severability.
If one or more provisions of this Note are held to be unenforceable under applicable law, such provisions shall be excluded from
this Note, and the balance of this Note shall be interpreted as if such provisions were so excluded and shall be enforceable in
accordance with its terms.

 

11.         Headings.
Section headings in this Note are for convenience only, and shall not be used in the construction of this Note.

 

IN WITNESS
WHEREOF, the Debtor has caused this Note to be issued as of the date first above written.

 

	 	AQUA POWER SYSTEMS INC.
	 	 	 
	 	By:	/s/Tadashi Ishikawa
	 	 	Name:  Tadashi Ishikawa
	 	 	Title: CEO & President

 

    	16

    	 

    

 

UNSECURED PROMISSORY NOTE

 

	 	 
	PRINCIPAL AMOUNT:  	$100,000.00
	 	 
	LOAN DATE:  	Dated as of the Share Exchange Agreement dated June 19, 2015 by and among Aqua Power Systems Inc., Aqua Power System Japan Kabushiki Kaisha, and Mr. Tadashi Ishikawa
	 	 
	INTEREST RATE: 	0.00%
	 	 
	DEBTOR:	Aqua Power Systems Inc.
	 	 
	CREDITOR:	Aqua Power System Japan Kabushiki Kaisha
	 	 
	PAYMENT:	The Due Date

 

1.          Principal
Repayment. For value received, Aqua Power Systems, Inc., a Nevada corporation (the “Debtor”) hereby unconditionally
promises to pay to the order of Aqua Power System Japan Kabushiki Kaisha (the “Creditor”), the principal amount
of $100,000.00. The principal amount is due and payable on August 31, 2015 (the “Due Date”).

 

2.          Payment
Terms. The Debtor shall pay the principal in full on or before Due Date, this Note shall bear no interest.

 

3.          Default.
Debtor will be in default if any of the following occur:

 

		(a)	The Debtor fails to make the Principal Repayment when
due;

 

		(b)	The Debtor breaks any promise that the Debtor has made
to the Creditor in this Note Debtor fails to perform promptly at the time and strictly in the manner provided in this Note;

 

		(c)	Any representation or statement made or furnished to
the Creditor by the Debtor or on the Debtor's behalf in connection with this Note is false or misleading in any material respect;
or,

 

		(d)	A receiver is appointed for any part of the Debtor's
property, the Debtor makes an assignment for the benefit of creditors, or any proceeding is commenced either by the Debtor or
against the Debtor under any Bankruptcy or insolvency laws seeking the liquidation or reorganization of the Debtor and such proceeding
is not dismissed within 60 days after such filing.

 

4.          Debtor’s
Right to Prepay. The Debtor may pay without penalty, all or a portion of the amount owed earlier that it is due. Any prepayment
shall be first applied against any accrued and unpaid interest and then to reduce the amount of principal due under this Note.

 

5.          Waiver
of Demand, Presentment, etc. The Debtor hereby expressly waives demand and presentment for payment, notice of nonpayment, protest,
notice of protest, notice of dishonor, notice of acceleration or intent to accelerate, bringing of suit and diligence in taking
any action to collect amounts called for hereunder and shall be directly and primarily liable for the payment of all sums owing
and to be owing hereunder, regardless of and without any notice, diligence, act or omission as or with respect to the collection
of any amount called for hereunder.

 

    	17

    	 

    

 

6.          Payment.
Except as otherwise provided for herein, all payments with respect to this Note shall be made in lawful currency of the United
States of America by check or wire transfer of immediately available funds, at the option of the Creditor, at the principal office
of the Creditor or such other place or places or designated accounts as may be reasonably specified by the Creditor of this Note
in a written notice to the Debtor at least one (1) business day prior to payment.

 

7.          Assignment.
The rights and obligations of the Debtor and the Creditor of this Note shall be binding upon, and inure to the benefit of, the
permitted successors, assigns, heirs, administrators and transferees of the parties hereto.

 

8.          Waiver
and Amendment. Any provision of this Note, including, without limitation, the due date hereof, and the observance of any term
hereof, may be amended, waived or modified (either generally or in a particular instance and either retroactively or prospectively)
only with the written consent of the Debtor and the Creditor

 

9.          Notices.
Any notice, payment or other communication required or permitted hereunder shall be expressed in writing and sent by certified
or registered mail, return receipt requested, to their respective parties at the following addresses, or at such other addresses
as the parties shall designate by written notice to be the other:

 

If to the Creditor to:

2-7-17 Omorihoncho,

Tokyo, Ota-ku,
Japan,

143-0011

 

If
to the Debtor to:

1107 Town
Creek Road

Eden, NC
27288

 

10.         Severability.
If one or more provisions of this Note are held to be unenforceable under applicable law, such provisions shall be excluded from
this Note, and the balance of this Note shall be interpreted as if such provisions were so excluded and shall be enforceable in
accordance with its terms.

 

11.         Headings.
Section headings in this Note are for convenience only, and shall not be used in the construction of this Note.

 

IN WITNESS
WHEREOF, the Debtor has caused this Note to be issued as of the date first above written.

 

	 	AQUA POWER SYSTEMS INC.
	 	 	 
	 	By:	/s/Tadashi Ishikawa
	 	 	Name:  Tadashi Ishikawa
	 	 	Title: CEO & President

 

    	18

    	 

    

 

UNSECURED PROMISSORY NOTE

 

	 	 
	PRINCIPAL AMOUNT:  	$100,000.00
	 	 
	LOAN DATE:  	Dated as of the Share Exchange Agreement dated June 19, 2015 by and among Aqua Power Systems Inc., Aqua Power System Japan Kabushiki Kaisha, and Mr. Tadashi Ishikawa
	 	 
	INTEREST RATE: 	0.00%
	 	 
	DEBTOR:	Aqua Power Systems Inc.
	 	 
	CREDITOR:	Aqua Power System Japan Kabushiki Kaisha
	 	 
	PAYMENT:	The Due Date (as defined herein)

 

1.          Principal
Repayment. For value received, Aqua Power Systems, Inc., a Nevada corporation (the “Debtor”) hereby unconditionally
promises to pay to the order of Aqua Power System Japan Kabushiki Kaisha (the “Creditor”), the principal amount
of $100,000.00. The principal amount is due and payable September 30, 2015 (the “Due Date”).

 

2.          Payment
Terms. The Debtor shall pay the principal in full on or before Due Date, this Note shall bear no interest.

 

3.          Default.
Debtor will be in default if any of the following occur:

 

		(a)	The Debtor fails to make the Principal Repayment when
due;

 

		(b)	The Debtor breaks any promise that the Debtor has made
to the Creditor in this Note Debtor fails to perform promptly at the time and strictly in the manner provided in this Note;

 

		(c)	Any representation or statement made or furnished to
the Creditor by the Debtor or on the Debtor's behalf in connection with this Note is false or misleading in any material respect;
or,

 

		(d)	A receiver is appointed for any part of the Debtor's
property, the Debtor makes an assignment for the benefit of creditors, or any proceeding is commenced either by the Debtor or
against the Debtor under any Bankruptcy or insolvency laws seeking the liquidation or reorganization of the Debtor and such proceeding
is not dismissed within 60 days after such filing.

 

4.          Debtor’s
Right to Prepay. The Debtor may pay without penalty, all or a portion of the amount owed earlier that it is due. Any prepayment
shall be first applied against any accrued and unpaid interest and then to reduce the amount of principal due under this Note.

 

5.          Waiver
of Demand, Presentment, etc. The Debtor hereby expressly waives demand and presentment for payment, notice of nonpayment, protest,
notice of protest, notice of dishonor, notice of acceleration or intent to accelerate, bringing of suit and diligence in taking
any action to collect amounts called for hereunder and shall be directly and primarily liable for the payment of all sums owing
and to be owing hereunder, regardless of and without any notice, diligence, act or omission as or with respect to the collection
of any amount called for hereunder.

 

    	19

    	 

    

 

6.          Payment.
Except as otherwise provided for herein, all payments with respect to this Note shall be made in lawful currency of the United
States of America by check or wire transfer of immediately available funds, at the option of the Creditor, at the principal office
of the Creditor or such other place or places or designated accounts as may be reasonably specified by the Creditor of this Note
in a written notice to the Debtor at least one (1) business day prior to payment.

 

7.          Assignment.
The rights and obligations of the Debtor and the Creditor of this Note shall be binding upon, and inure to the benefit of, the
permitted successors, assigns, heirs, administrators and transferees of the parties hereto.

 

8.          Waiver
and Amendment. Any provision of this Note, including, without limitation, the due date hereof, and the observance of any term
hereof, may be amended, waived or modified (either generally or in a particular instance and either retroactively or prospectively)
only with the written consent of the Debtor and the Creditor

 

9.          Notices.
Any notice, payment or other communication required or permitted hereunder shall be expressed in writing and sent by certified
or registered mail, return receipt requested, to their respective parties at the following addresses, or at such other addresses
as the parties shall designate by written notice to be the other:

 

If to the Creditor to:

2-7-17 Omorihoncho,

Tokyo, Ota-ku,
Japan,

143-0011

 

If
to the Debtor to:

1107 Town
Creek Road

Eden, NC
27288

 

10.         Severability.
If one or more provisions of this Note are held to be unenforceable under applicable law, such provisions shall be excluded from
this Note, and the balance of this Note shall be interpreted as if such provisions were so excluded and shall be enforceable in
accordance with its terms.

 

11.         Headings.
Section headings in this Note are for convenience only, and shall not be used in the construction of this Note.

 

IN WITNESS
WHEREOF, the Debtor has caused this Note to be issued as of the date first above written.

 

	 	AQUA POWER SYSTEMS INC.
	 	 	 
	 	By:	/s/Tadashi Ishikawa
	 	 	Name:  Tadashi Ishikawa
	 	 	Title: CEO & President

 

    	20

    	 

    

 

UNSECURED PROMISSORY NOTE

 

	 	 
	PRINCIPAL AMOUNT:  	$100,000.00
	 	 
	LOAN DATE:  	Dated as of the Share Exchange Agreement dated June 19, 2015 by and among Aqua Power Systems Inc., Aqua Power System Japan Kabushiki Kaisha, and Mr. Tadashi Ishikawa 
	 	 
	INTEREST RATE: 	0.00%
	 	 
	DEBTOR:	Aqua Power Systems Inc.
	 	 
	CREDITOR:	Aqua Power System Japan Kabushiki Kaisha
	 	 
	PAYMENT:	The Due Date (as defined herein)

 

1.          Principal
Repayment. For value received, Aqua Power Systems, Inc., a Nevada corporation (the “Debtor”) hereby unconditionally
promises to pay to the order of Aqua Power System Japan Kabushiki Kaisha (the “Creditor”), the principal amount
of $100,000.00. The principal amount is due and payable on October 31, 2015 (the “Due Date”).

 

2.          Payment
Terms. The Debtor shall pay the principal in full on or before Due Date, this Note shall bear no interest.

 

3.          Default.
Debtor will be in default if any of the following occur:

 

		(a)	The Debtor fails to make the Principal Repayment when
due;

 

		(b)	The Debtor breaks any promise that the Debtor has made
to the Creditor in this Note Debtor fails to perform promptly at the time and strictly in the manner provided in this Note;

 

		(c)	Any representation or statement made or furnished to
the Creditor by the Debtor or on the Debtor's behalf in connection with this Note is false or misleading in any material respect;
or,

 

		(d)	A receiver is appointed for any part of the Debtor's
property, the Debtor makes an assignment for the benefit of creditors, or any proceeding is commenced either by the Debtor or
against the Debtor under any Bankruptcy or insolvency laws seeking the liquidation or reorganization of the Debtor and such proceeding
is not dismissed within 60 days after such filing.

 

4.          Debtor’s
Right to Prepay. The Debtor may pay without penalty, all or a portion of the amount owed earlier that it is due. Any prepayment
shall be first applied against any accrued and unpaid interest and then to reduce the amount of principal due under this Note.

 

5.          Waiver
of Demand, Presentment, etc. The Debtor hereby expressly waives demand and presentment for payment, notice of nonpayment, protest,
notice of protest, notice of dishonor, notice of acceleration or intent to accelerate, bringing of suit and diligence in taking
any action to collect amounts called for hereunder and shall be directly and primarily liable for the payment of all sums owing
and to be owing hereunder, regardless of and without any notice, diligence, act or omission as or with respect to the collection
of any amount called for hereunder.

 

    	21

    	 

    

 

6.          Payment.
Except as otherwise provided for herein, all payments with respect to this Note shall be made in lawful currency of the United
States of America by check or wire transfer of immediately available funds, at the option of the Creditor, at the principal office
of the Creditor or such other place or places or designated accounts as may be reasonably specified by the Creditor of this Note
in a written notice to the Debtor at least one (1) business day prior to payment.

 

7.          Assignment.
The rights and obligations of the Debtor and the Creditor of this Note shall be binding upon, and inure to the benefit of, the
permitted successors, assigns, heirs, administrators and transferees of the parties hereto.

 

8.          Waiver
and Amendment. Any provision of this Note, including, without limitation, the due date hereof, and the observance of any term
hereof, may be amended, waived or modified (either generally or in a particular instance and either retroactively or prospectively)
only with the written consent of the Debtor and the Creditor

 

9.          Notices.
Any notice, payment or other communication required or permitted hereunder shall be expressed in writing and sent by certified
or registered mail, return receipt requested, to their respective parties at the following addresses, or at such other addresses
as the parties shall designate by written notice to be the other:

 

If to the Creditor to:

2-7-17 Omorihoncho,

Tokyo, Ota-ku,
Japan,

143-0011

 

If
to the Debtor to:

1107 Town
Creek Road

Eden, NC
27288

 

10.         Severability.
If one or more provisions of this Note are held to be unenforceable under applicable law, such provisions shall be excluded from
this Note, and the balance of this Note shall be interpreted as if such provisions were so excluded and shall be enforceable in
accordance with its terms.

 

11.         Headings.
Section headings in this Note are for convenience only, and shall not be used in the construction of this Note.

 

IN WITNESS
WHEREOF, the Debtor has caused this Note to be issued as of the date first above written.

 

	 	AQUA POWER SYSTEMS INC.
	 	 	 
	 	By:	/s/Tadashi Ishikawa
	 	 	Name:  Tadashi Ishikawa
	 	 	Title: CEO & President

 

    	22

    	 

    

 

EXHIBIT B

 

CERTIFICATE OF NON-U.S. SHAREHOLDER

 

In connection with the issuance of common
stock (the “APSI Shares”) of Aqua Power Systems Inc.., a company incorporated pursuant to the laws of the State
of Nevada (“APSI”), to the undersigned, pursuant to that certain Share Exchange Agreement dated June 19, 2015
(the “Agreement”), among Aqua Power System Japan Kabushiki Kaisha., a company incorporated pursuant to the laws
of Japan (“AP Japan”), and the sole shareholder of AP Japan as set out in the Agreement (each, a “AP
Japan Shareholder”), the undersigned hereby agrees, acknowledges, represents and warrants that:

 

1.          the
undersigned is not a “U.S. Person” as such term is defined by Rule 902 of Regulation S under the United States Securities
Act of 1933, as amended (“U.S. Securities Act”) (the definition of which includes, but is not limited to, an
individual resident in the U.S. and an estate or trust of which any executor or administrator or trust, respectively is a U.S.
Person and any partnership or corporation organized or incorporated under the laws of the U.S.);

 

2.          none
of the APSI Shares have been or will be registered under the U.S. Securities Act, or under any state securities or “blue
sky” laws of any state of the United States, and may not be offered or sold in the United States or, directly or indirectly,
to U.S. Persons, as that term is defined in Regulation S, except in accordance with the provisions of Regulation S or pursuant
to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and in compliance
with any applicable state and foreign securities laws;

 

3.          the
undersigned understands and agrees that offers and sales of any of the APSI Shares prior to the expiration of a period of one year
after the date of original issuance of the APSI Shares (the one year period hereinafter referred to as the Distribution Compliance
Period) shall only be made in compliance with the safe harbor provisions set forth in Regulation S, pursuant to the registration
provisions of the U.S. Securities Act or an exemption therefrom, and that all offers and sales after the Distribution Compliance
Period shall be made only in compliance with the registration provisions of the U.S. Securities Act or an exemption therefrom and
in each case only in accordance with applicable state and foreign securities laws;

 

4.          the
undersigned understands and agrees not to engage in any hedging transactions involving any of the APSI Shares unless such transactions
are in compliance with the provisions of the U.S. Securities Act and in each case only in accordance with applicable state and
provincial securities laws;

 

5.          the
undersigned is acquiring the APSI Shares for investment only and not with a view to resale or distribution and, in particular,
it has no intention to distribute either directly or indirectly any of the APSI Shares in the United States or to U.S. Persons;

 

6.          the
undersigned has not acquired the APSI Shares as a result of, and will not itself engage in, any directed selling efforts (as defined
in Regulation S under the U.S. Securities Act) in the United States in respect of the APSI Shares which would include any activities
undertaken for the purpose of, or that could reasonably be expected to have the effect of, conditioning the market in the United
States for the resale of any of the APSI Shares; provided, however, that the undersigned may sell or otherwise dispose of the APSI
Shares pursuant to registration thereof under the U.S. Securities Act and any applicable state and provincial securities laws or
under an exemption from such registration requirements;

 

7.          the
statutory and regulatory basis for the exemption claimed for the sale of the APSI Shares, although in technical compliance with
Regulation S, would not be available if the offering is part of a plan or scheme to evade the registration provisions of the U.S.
Securities Act or any applicable state and provincial securities laws;

 

8.          the
undersigned has not undertaken, and will have no obligation, to register any of the APSI Shares under the U.S. Securities Act;

 

    	23

    	 

    

 

9.          APSI
is entitled to rely on the acknowledgements, agreements, representations and warranties and the statements and answers of the AP
Japan Shareholder contained in the Agreement and those of the undersigned contained in this Certificate, and the undersigned will
hold harmless APSI from any loss or damage either one may suffer as a result of any such acknowledgements, agreements, representations
and/or warranties made by the AP Japan Shareholder and/or the undersigned not being true and correct;

 

10.         the
undersigned has been advised to consult their own respective legal, tax and other advisors with respect to the merits and risks
of an investment in the APSI Shares and, with respect to applicable resale restrictions, is solely responsible (and APSI is not
in any way responsible) for compliance with applicable resale restrictions;

 

11.         none
of the APSI Shares are listed on any stock exchange or automated dealer quotation system and no representation has been made to
the undersigned that any of the APSI Shares will become listed on any stock exchange or automated dealer quotation system, except
that currently certain market makers make market in the common shares of APSI on the OTC Bulletin Board;

 

12.         the
undersigned is outside the United States when receiving and executing this Agreement and is acquiring the APSI Shares as principal
for their own account, for investment purposes only, and not with a view to, or for, resale, distribution or fractionalization
thereof, in whole or in part, and no other person has a direct or indirect beneficial interest in the APSI Shares;

 

13.         neither
the SEC nor any other securities commission or similar regulatory authority has reviewed or passed on the merits of the APSI Shares;

 

14.         the
APSI Shares are not being acquired, directly or indirectly, for the account or benefit of a U.S. Person or a person in the United
States;

 

15.         the
undersigned acknowledges and agrees that APSI shall refuse to register any transfer of APSI Shares not made in accordance with
the provisions of Regulation S, pursuant to registration under the U.S. Securities Act, or pursuant to an available exemption from
registration under the U.S. Securities Act;

 

16.         the
undersigned understands and agrees that the APSI Shares will bear the following legend:

 

“THE SECURITIES REPRESENTED
HEREBY HAVE BEEN OFFERED IN AN OFFSHORE TRANSACTION TO A PERSON WHO IS NOT A U.S. PERSON (AS DEFINED HEREIN) PURSUANT TO REGULATION
S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”).

 

NONE OF THE SECURITIES REPRESENTED
HEREBY HAVE BEEN REGISTERED UNDER THE 1933 ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, MAY NOT BE OFFERED
OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES (AS DEFINED HEREIN) OR TO U.S. PERSONS EXCEPT IN ACCORDANCE WITH THE PROVISIONS
OF REGULATION S UNDER THE 1933 ACT, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT, OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE
WITH APPLICABLE STATE SECURITIES LAWS. IN ADDITION, HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN
COMPLIANCE WITH THE 1933 ACT. “UNITED STATES” AND “U.S. PERSON” ARE AS DEFINED BY REGULATION S UNDER THE
1933 ACT.”

 

17.         the
address of the undersigned included herein is the sole address of the undersigned as of the date of this certificate.

 

    	24

    	 

    

 

IN WITNESS WHEREOF, I have executed this
Certificate of Non-U.S. Shareholder.

 

	/s/Tadashi Ishikawa	 	Date:  June 18, 2015
	Signature	 	 
	 	 	 
	Tadashi Ishikawa	 	 
	Print Name	 	 
	 	 	 
	Not applicable	 	 
	Title (if applicable)	 	 
	 	 	 
	 	 	 
	Address	 	 

 

    	25

    	 

    

 

DISCLOSURE SCHEDULE

 

to the

 

SHARE EXCHANGE AGREEMENT 

 

By and Among

 

AQUA POWER SYSTEMS INC., 

 

AQUA POWER SYSTEM JAPAN KABUSHIKI KAISHA,

 

AND 

 

THE SOLE SHAREHOLDER OF AQUA POWER SYSTEM
JAPAN KABUSHIKI KAISHA

 

These Disclosure Schedules
have been prepared pursuant to the Share Exchange Agreement (the “Agreement”) by and among AQUA POWER
SYSTEMS INC., a Nevada corporation (“APSI”), AQUA POWER SYSTEM JAPAN KABUSHIKI KAISHA, a corporation
formed under the laws of Japan (“AP JAPAN”), Tadashi Ishikawa, and individual and sole shareholder of AP Japan.
Except as otherwise defined herein, capitalized terms used herein will have the same meaning given to them in the Share Exchange
Agreement. Schedule and paragraph numbers herein correspond to the Section and Subsection numbering in applicable Article of the
Share Exchange Agreement. Section and Subsection headings contained herein are included for purposes of identifying the relevant
disclosures and for the convenience of the reader and are not intended to supplement or modify the meaning of the disclosures in
any way.

 

    	26

    	 

    

 

SCHEDULE 2.14 

 

DIRECTORS AND OFFICERS OF APSI

 

Directors:

 

		1.	Tadashi Ishikawa.

 

		2.	Jeffrey Alt.

 

Officers:

 

		1.	Tadashi Ishikawa – President, Chief Executive Officer,
Chief Financial Officer, Secretary and Treasurer.

 

    	27

    	 

    

 

SCHEDULE 3.3

 

SHAREHOLDERS OF AP JAPAN

 

	 	 	Name	 	Number of Shares of
 AP Japan held as of
 the date of this
 Agreement	 
	1.	 	Tadashi Ishikawa	 	 	9,980	 
	 	 	Total:	 	 	9,980	 

 

    	28

    	 

    

 

SCHEDULE 3.4

 

DIRECTORS AND OFFICERS OF AP JAPAN

 

Directors:

 

		1.	Tadashi Ishikawa.

 

		2.	Yoshiaki Hasebe.

 

Officers:

 

		1.	Tadashi Ishikawa – President.

 

		2.	Yoshiaki Hasebe – Chief Engineer.

 

SCHEDULE 3.7

 

MATERIAL LEASES, SUBLEASES, CLAIMS, CAPITAL
EXPENDITURES,

TAXES AND OTHER PROPERTY INTERESTS

 

	 	 	 	 	Lease Company	 	Contract Number
	1.	 	Office copier KONIKA MINOLTA	 	Japan Business Lease	 	1021-0970-5800-00
	2.	 	Office telephone	 	NEC Capital Solution	 	Not available
	3.	 	Office (2-7-17 Morimoto cho, Ota-ku, Tokyo)	 	Degawa Suisan	 	Not available

 

    	29

    	 

    

 

SCHEDULE 3.8

 

INTELLECTUAL PROPERTY

 

	 	 	Country:	 	Title of

Property:	 	Aqua Power

Reference

Number:	 	Description:	 	Filing Date:
	1.	 	Japan	 	Water Battery	 	2008-8180U	 	Water battery adapted to generate large amount of electricity by having enlarged area contacting with water in an inner circumference surface of a negatively electrode cylinder.	 	11/21/2008
	2.	 	Japan	 	Water Battery for Supplying Low Current	 	2009-3895U	 	Water battery for supplying low current adapted to be readily positioned in a socket.	 	6/9/2009
	3.	 	Japan	 	Boost Circuit	 	2009-6313U	 	Boosting Circuit capable of boosting power supply voltage of a power supply battery and realizing low power consumption current with a  relatively simple and low cost structure.	 	9/3/2009
	4.	 	Japan	 	Water Battery	 	2009-4737U	 	Water battery adapted to generate electricity by having an enlarged electrochemical area.	 	7/8/2009
	5.	 	Japan	 	Water Battery	 	2009-3896U	 	Water battery having a high generating efficiency and being unlikely to be broken in part during use.	 	6/9/2009
	6.	 	PCT	 	Water Battery	 	2009-3896U-PCT

(Not entered into National Phase)	 	N/A	 	6/9/2009
	7.	 	Japan	 	Water Battery	 	2010-88994	 	Water battery that is thin and small that can generate a predetermined electromotive force with slight amount of water supply.	 	4/7/2010
	8.	 	Japan	 	Water Battery and Method for Making the Same	 	2010-160142	 	Water battery which can carry predetermined electromotive force by supply of small amount of water, and it relatively thin.	 	7/14/2010
	9.	 	Japan	 	Water Battery	 	2010-160132	 	Water battery which can generate predetermined electromotive force by supplying a small amount of water and is relatively thin and small.	 	7/14/2010

 

    	30

    	 

    

 

	10.	 	Japan	 	Liquid Detection Apparatus	 	2011-29212	 	Withdrawn - Does not exist	 	2/14/2011
	11.	 	Japan	 	Liquid Detection System	 	2011-286603	 	Liquid detection system with simpler and more compact structure, with self electric power generation function and capable of more accurately detecting leakage of liquid.	 	12/27/2011
	12.	 	Japan	 	Water Battery	 	2012-136386	 	Water battery capable of easily switching on and off an electromotive forces by changing direction arrangement. 	 	6/15/2012
	13.	 	Japan	 	Water Battery	 	2012-261719	 	Water battery capable of generating electricity at one push of a button without pouring water into an inlet as first step. 	 	11/29/2012
	14.	 	Japan	 	Air Magnesium Battery	 	2012-276235	 	Air magnesium battery with excellent water repellency, air permeability and leakage preventing properties and capable of reaching peak discharging reaction and constant amount of electric current for relatively long time.	 	12/18/2012
	15.	 	Japan	 	Air Magnesium Battery	 	2013-13684	 	Air magnesium battery capable of switching on power supply by connecting a cap and switching off by releasing a cap.	 	1/28/2013
	16.	 	Japan	 	Air Magnesium Battery and Electric Supply Apparatus Using the Same	 	2013-13724	 	Air magnesium battery with relatively small distance between an anode and cathode, being capable of containing a relatively large amount of reaction liquid and generating certain amount of electricity for a certain time in constant manner and an electric supply appartus using the air magnesium batter	 	1/28/2013
	17.	 	Japan	 	Air Magnesium Battery	 	2013-267982	 	Air magnesium battery being excellent in water repellency, air permeability and leakage preventing properties and captable of reaching the peak of discharging reaction and discharging a constant amojnt of electric current for a relatively long time.	 	12/25/2013
	18.	 	Japan	 	Air Magnesium Battery	 	2014-91711

(divisional appl. of 2013-267982)	 	N/A	 	4/25/2014

 

    	31

    	 

    

 

	19.	 	PCT	 	Liquid Holding Container Provided w/ Sensor & Liquid Quantity Measuring System	 	10-0701-PCT	 	Liquid quantity measuring system having a liquid holding container, which is provided with a sensor that detects that a predetermined quantity of a liquid is contained, and a relatively simple structure for measuring the liquid quantity	 	8/13/2010
	20.	 	Japan	 	Liquid Holding Container Provided w/ Sensor & Liquid Quantity Measuring System	 	10-0701-PCT-JP	 	Liquid quantity measuring system having a liquid holding container, which is provided with a sensor that detects that a predetermined quantity of a liquid is contained, and a relatively simple structure for measuring the liquid quantity	 	8/13/2010
	21.	 	China	 	Liquid Holding Container Provided w/ Sensor & Liquid Quantity Measuring System	 	10-0701-PCT-CN

 (出願中止)	 	Liquid quantity measuring system having a liquid holding container, which is provided with a sensor that detects that a predetermined quantity of a liquid is contained, and a relatively simple structure for measuring the liquid quantity	 	8/13/2010
	22.	 	USA	 	Liquid Holding Container Provided w/ Sensor & Liquid Quantity Measuring System	 	10-0701-PCT-US

(出願中止)	 	Liquid quantity measuring system having a liquid holding container, which is provided with a sensor that detects that a predetermined quantity of a liquid is contained, and a relatively simple structure for measuring the liquid quantity	 	8/13/2010
	23.	 	EU	 	Liquid Holding Container Provided w/ Sensor & Liquid Quantity Measuring System	 	10-0701-PCT-EP

 (出願中止)	 	Liquid quantity measuring system having a liquid holding container, which is provided with a sensor that detects that a predetermined quantity of a liquid is contained, and a relatively simple structure for measuring the liquid quantity	 	8/13/2010
	24.	 	PCT	 	Liquid Leakage Detection System	 	10-0702-PCT	 	Liquid Leakage Detection System	 	8/13/2010
	25.	 	Japan	 	Liquid Leakage Detection System	 	10-0702-PCT-JP	 	Liquid Leakage Detection System	 	8/13/2010

 

    	32

    	 

    

 

	26.	 	China	 	Liquid Leakage Detection System	 	10-0702-PCT-CN	 	Liquid Leakage Detection System	 	8/13/2010
	27.	 	USA	 	Liquid Leakage Detection System	 	10-0702-PCT-US	 	Liquid Leakage Detection System	 	8/13/2010
	28.	 	EU	 	Liquid Leakage Detection System	 	10-0702-PCT-EP	 	Liquid Leakage Detection System	 	8/13/2010
	29.	 	PCT	 	Liquid Detection Apparatus	 	11-0101-PCT	 	Liquid detection device where liquid leakage can be detected and reported to exterior without need for exterior power.	 	2/18/2011
	30.	 	Japan	 	Liquid Detection Apparatus	 	11-0101-PCT	 	Liquid detection device where liquid leakage can be detected and reported to exterior without need for exterior power.	 	2/18/2011
	31.	 	Taiwan	 	Liquid Detection Apparatus	 	11-0101-TW	 	Liquid detection device where liquid leakage can be detected and reported to exterior without need for exterior power.	 	2/18/2011
	32.	 	USA	 	NoPoPo	 	2009-17-US	 	NoPoPo USA Trademark	 	12/9/2009
	33.	 	EU	 	NoPoPo	 	2009-03-CTM	 	NoPoPo Europe Trademark	 	12/11/2009
	34.	 	JP	 	AQUPA	 	SL25T050	 	AQUPA Japan Trademark	 	12/25/2013

 

    	33

    	 

    

 

SCHEDULE 3.9

 

PRODUCTS

 

		1.	Batteries

 

The NoPoPo battery was Aqua Power’s first product,
launched in 2009. The water activated 1.5 V AA batteries can power LED flashlights, mini lanterns and portable radios and have
a shelf life of 20 years (dry cell battery is less than three years). They are made up of manganese dioxide (+) and magnesium alloy
(-).

 

		2.	Lighting Products

 

Aqua Power has developed cutting edge lighting products
using their RMAF system technology. The products can be broken into four categories: Lanterns, Flashlights, Speciality Lighting
Products and Power Bars.

 

		3.	Lanterns

 

A magnesium fuel bolt reacts with an aqueous electrolyte
to provides a determined hours of illumination, making these lanterns ideal for off-grid lighting for disaster response, camping,
remote worksites, and marine use. An on-off switch starts – and stops – the chemical reaction that generates electricity
to power the lantern. The magnesium bolt is easily replaced – a see-though bottom indicates when a replacement is needed.
Yamazen currently distributes the production ready lanterns in Japan.

 

The table below provides the estimated product specifications
for the Aqua Power lanterns, marketed under the Aqupa brand in Japan.

 

	PRODUCT	 	HOURS 	 	LUMENS	 	POWER	 	WEIGHT	 	SIZE	 	RETAIL

PRICE

(est)	 	STAGE
	Aqupa Lamp 210 	 	80 hrs	 	2,000	 	1.5 V 	 	350g	 	215x95x95 mm 	 	$25.00 	 	Available in Stores
	Aqupa Lamp 250	 	120 hrs	 	3,500	 	1.5 V 	 	630g	 	255X110x110 mm	 	$30.00 	 	Available in Stores
	Lantern with Aqua Power AA Battery 	 	80 hrs	 	N/A	 	1.5 V 	 	N/A	 	255X110x110 mm	 	$25.00 	 	In Development 
	Home Use Lantern – Dual USB Charger	 	80 hrs	 	N/A	 	3.0V	 	N/A	 	250x250x150 mm	 	$42.00 	 	In Development 
	Developing Nation Lantern with Phone Charger	 	80 hrs	 	N/A	 	3.0V	 	N/A	 	255X110x110 mm 	 	$21.00 	 	In Advanced Development  

 

    	34

    	 

    

 

The Aqupa Lamps 210 and 250 are stand-up light sources
(lanterns). The Lantern using Aqua Power AA Battery is a modified version of the Aqupa Lamp 250 to have a lower price. The Home
Use Lantern is an upgraded Aqupa Lamp 250 with higher current, which provides up to 2A power.

 

		4.	Flashlights

 

The Company has currently developed three flashlights
and flashlight hybrids which are expected to go into production over the next year.

 

The following table provides the expected product
specifications:

 

	PRODUCT	 	HOURS 	 	LUMENS	 	POWER	 	WEIGHT	 	SIZE 	 	RETAIL

PRICE

(EST)	 	STAGE
	OMUSUBI-Kun	 	90 hrs	 	1,500	 	1.5 V 	 	350g	 	200X60x55 mm	 	US$20.50 	 	In Development 
	Aqupa Flash	 	90 hrs	 	1,500	 	1.5 V 	 	350g	 	180X50x55 mm	 	US$20.50	 	In Development  
	Aqupa Flash/Lantern	 	90 hrs	 	1,500	 	1.5 V 	 	350g	 	187X197x50 mm	 	US$26.00 	 	In Development 

 

The OMUSUBI-Kun is a flashlight with rolling switch;
the light comes on when the flashlight is rotated one way, and turns off when rotated the other. The Aqupa Flash/Lantern can be
used as either a handheld or stand up light source.

 

5.          Speciality
Lighting Products

 

Aqua Power has developed several specialty lighting
products to suit the needs of particular customers and industries. The following table depicts proposed product specifications
of the specialty lighting products currently being developed:

 

	PRODUCT	 	HOURS 	 	LUMENS	 	POWER	 	WEIGHT	 	SIZE 	 	RETAIL

 PRICE 

(EST)	 	STAGE
	Mining Industry Flash Light	 	80 hrs	 	N/A	 	1.5V	 	N/A	 	N/A	 	US$15.50 	 	In Development. 
	Car and Boat Light/Battery 	 	80 hrs	 	N/A	 	3.0V	 	N/A	 	N/A	 	US$50.00 	 	In Development. 
	Mountaineering & Outdoor Recreation Light	 	80 hrs	 	N/A	 	1.5V	 	N/A	 	N/A	 	US$12.50 	 	In Development. 

 

    	35

    	 

    

 

The Mining Industry Flashlight is to be used by workers
in underground mining operations where safety is a top priority. The Car and Boat Light/Battery is being designed to be a light
source as well as electricity source to be used in cars and boats. The Mountain Climbing & Outdoor Recreation light is to be
used as a light source for both markets.

 

		6.	Lighting Products: Power Bars

 

The Aqupa Power Bars are magnesium rods that provide
the power source for the Lanterns and Flashlights. The magnesium rod is easily replaced and range in size from 130 x 25 mm to 102
x 30 mm.

 

		7.	Power Supply Equipment

 

Aqua Power’s R&D team is currently developing
a number of power supply equipment products of increasing power output, physical size and cost.

 

		8.	First Generation Portable Power Plant

 

The first generation portable power plant was originally
designed specifically for the Government of Mexico as a back-up power plant for disaster situations. In September 2011, 510 units
were sold to the City of Sonora. Based upon the water battery technology used in the NoPoPo batteries, it is made to order for
specific customers. It will last approximately 240 hours and generates 15-19V DC / 100-220 AC.

 

		9.	Handheld Power Supply Equipment

 

The small sized power charger is designed to be handheld
using RMAF technology. Its estimated output is approximately 80 hours of electricity at up to 3.0 V. The small size – 150
mm (L) X 150 mm (W) X 80 mm (D) -- and lightweight of 350 grams make it a great handheld charger for laptops.

 

		10.	Small (2-3A) Power Supply Equipment

 

Using RMAF technology, the small-sized power plant
is designed for outdoor and home use to power digital equipment. Its estimated output is 8 hours of electricity per day for 14
days at up to 2-3A with voltage of 15 to 19V DC. The unit can convert to 100 or 220 AC and is refueled using the magnesium bolt.
The small size – 20 cm (L) X 15 cm (W) X 15 cm (H) -- and light weight of 1.8 kg make it highly portable and easily stored.

 

		11.	Medium (5A) Power Supply Equipment

 

Based on RMAF technology, the medium-sized power plant
is designed for outdoor and home use. Its estimated output of electricity is 8 hours a day for 14 days at up to 5A with voltage
of 22.5V DC. The unit can convert to 100 or 220 AC and is refueled using the magnesium bolt. The small size – 28 cm (L) X
13.5 cm (W) X 16.5 cm (H) -- and lightweight of 3.5 kg make it highly portable and easily stored.

 

    	36

    	 

    

 

		12.	Large (10A) Power Supply Equipment

 

The large-sized power plant is designed outdoor and
home use and was designed using RMAF technology. Its estimated output of electricity is 8 hours a day for 14 days at up to 10A
with voltage of 22.5V DC. The unit can convert to 100 or 220 AC and is refueled using the magnesium bolt.

 

		13.	X-Large (30A) Power Supply Equipment

 

This unit is designed to power a home or be used for
other purposes, such as an electric vehicle charging station. It uses RMAF magnesium plate technology and is estimated to be able
to generate up to 30 amps / 37.5 V AC. The compact size 1 m (L) x 1m (W) x 1m also makes it relatively portable and storable.

 

		14.	Power Supply Equipment Exchange Power Bars

 

The Power Supply Equipment power bars last up to 112
hours (8 hours a day for 14 days).

 

    	37

    	 

    

 

SCHEDULE 3.10

 

MATERIAL CONTRACTS

 

	 	 	With:	 	Dated:	 	Material Terms/Description:
	1.	 	Yamazen Corporation	 	October 3, 2013	 	Basic Distribution Agreement
	2.	 	Nippon Valqua	 	December 2012	 	Basic Co-development Contract

 

    	38

    	 

    

 

SCHEDULE 3.11

 

SUBSIDIARIES

APSI:

 

	Name:	 	Jurisdiction:
	Stoneville Solar, LLC	 	North Carolina limited liability company established on December 14, 2010.

 

AP JAPAN:

 

	Name:	 	Jurisdiction:	 	Percentage Owned
	None.	 	 	 	 

 

    	39

    	 

    

 

SCHEDULE 5.7 

 

AP JAPAN EMPLOYMENT AGREEMENTS
AND ARRANGEMENTS

 

As of the date of this
Agreement, the following hourly and salaried employees of AP Japan are reasonably necessary to operate the business of AP Japan
as substantially presently operated:

 

	 	 	Name of Party	 	Date of Agreement 
	1.	 	Yasuo Morimoto	 	 April 1, 2012
	2.	 	Yuri Kommo	 	December 18, 2014

 

    	40Exhibit 10.8

 

 

 

 

AGREEMENT CONCERNING GLUCOKINASE ACTIVATOR
PROJECT

BY AND BETWEEN

NOVO NORDISK A/S

AND

TRANSTECH PHARMA, INC.

DATED AS OF FEBRUARY 20, 2007

 

 

 

 

 

 

 

* Confidential treatment has been requested with respect to
portions of this agreement as indicated by “[***]” and such confidential portions have been deleted and filed separately
with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended.

 

    	 

    	 

    

 

 

TABLE
OF CONTENTS

 

	ARTICLE I   DEFINITIONS	1
	1.1   “Act”	2
	1.2   “Affiliate”	2
	1.3   “Bankruptcy Code”	2
	1.4   “Business Day”	2
	1.5   “Calendar Quarter”	2
	1.6   “Calendar Year”	2
	1.7   “Combination Product”	2
	1.8   “Commercialization” or “Commercialize”	2
	1.9   “Commercialization Partner”	2
	1.10   “Completion”	2
	1.11   “Compound”	3
	1.12   “Control” or “Controlled”	3
	1.13   “Cover”, “Covering” or “Covered”	3
	1.14   “Development” or “Develop”	3
	1.15   “EMEA”	3
	1.16   “Exclusivity Period”	3
	1.17   “FDA”	3
	1.18   “Field”	4
	1.19   “Filing”	4
	1.20   “First Commercial Sale”	4
	1.21   “GK Activator Project”	4
	1.22   “GAAP”	4
	1.23   “Governmental Authority”	4
	1.24   “Indication”	4
	1.25   “Initiation”	4
	1.26   “Know-How”	4
	1.27   “Knowledge”	4
	1.28   “Law” or “Laws”	5
	1.29   “Licensed Product”	5
	1.30   “Losses”	5
	1.31   “Major EU Country”	5
	1.32   “Major Markets”	5
	1.33   “Manufacture” or “Manufacturing”	5
	1.34   “MHW”	5
	1.35   “NDA”	5
	1.36   “Net Sales”	5
	1.37   “Novo Intellectual Property”	7
	1.38   “Novo Know-How”	7
	1.39   “Novo Materials”	7
	1.40   “Novo Patent Rights”	7
	1.41   “Party”	7
	1.42   “Patent Rights”	7
	1.43   “Person”	7

 

    	i

    	 

    

 

	1.44   “Phase II Clinical Trial”	7
	1.45   “Phase III Clinical Trial”	7
	1.46   “Regulatory Approval”	8
	1.47   “Regulatory Authority”	8
	1.48   “Sublicensee”	8
	1.49   “Territory”	8
	1.50   “Third Party”	8
	1.51   “TransTech Patent Rights”	8
	1.52   “Valid Claim”	8
	1.53   Additional Definitions	8
	ARTICLE II   TRANSTECH RIGHTS	9
	2.1   Reversions and Grants of Rights	9
	2.2   Data and Material Transfer.	10
	2.3   Rights Retained by the Parties	10
	2.4   Section 365(n) of the Bankruptcy Code	10
	ARTICLE III   DEVELOPMENT, MANUFACTURE AND COMMERCIALIZATION	11
	3.1   General	11
	3.2   Commercialization Partner.	11
	3.3   Exchange of Information	12
	ARTICLE IV   FINANCIAL PROVISIONS	12
	4.1   Milestone Payments.	12
	4.2   Product Royalties.	13
	4.3   Reports; Payments	14
	4.4   Books and Records; Audit Rights	14
	4.5   Taxes	15
	4.6   United States Dollars	15
	4.7   Currency Exchange	15
	4.8   Blocked Payments	15
	4.9   Resolution of Disputes	15
	4.10   Novo Payment Obligations Terminated	16
	ARTICLE V   INTELLECTUAL PROPERTY OWNERSHIP, PROTECTION AND RELATED MATTERS	16
	5.1   Ownership of Intellectual Property.	16
	5.2   Prosecution and Maintenance of Patent Rights.	16
	5.3   Third Party Infringement.	17
	5.4   Patent Invalidity Claim	18
	5.5   Claimed Infringement	18
	5.6   Patent Term Extensions	19

 

    	ii

    	 

    

 

	ARTICLE VI   CONFIDENTIAL INFORMATION	19
	6.1   Treatment of Confidential Information.	19
	6.2   Confidential Information	20
	ARTICLE VII   REPRESENTATIONS and WARRANTIES	21
	7.1   TransTech’s Representations	21
	7.2   Novo’s Representations.	21
	7.3   No Warranty	22
	ARTICLE VIII   INDEMNIFICATION	22
	8.1   Indemnification in Favor of TransTech	22
	8.2   Indemnification in Favor of Novo	23
	8.3   General Indemnification Procedures.	24
	8.4   Insurance	25
	ARTICLE IX   TERM AND TERMINATION	25
	9.1   Term	25
	9.2   Termination for Cause.	25
	9.3   Termination for Insolvency	26
	9.4   Termination for Patent Challenge	26
	9.5   Consequences of Terminations by the Parties.	26
	9.6   Effect of Termination or Expiration; Accrued Rights and Obligations	28
	9.7   Survival	28
	ARTICLE X   RELEASES OF BREACH ISSUE	29
	10.1   Grant of Release	29
	10.2   Sole Judgment	29
	10.3   No Assignment	29
	ARTICLE XI   MISCELLANEOUS	29
	11.1   Governing Law	29
	11.2   Jurisdiction	29
	11.3   Waiver	30
	11.4   Notices	30
	11.5   Entire Agreement	31
	11.6   Headings	31
	11.7   Severability	31
	11.8   Registration and Filing of the Agreement	31
	11.9   Assignment	31
	11.10   Counterparts	32
	11.11   Force Majeure	32
	11.12   Press Releases and Other Disclosures	32
	11.13   Third-Party Beneficiaries	32
	11.14   Relationship of the Parties	32
	11.15   Performance by Affiliates	33
	11.16   Construction	33
	11.17   No Consequential or Punitive Damages	33

 

    	iii

    	 

    

 

AGREEMENT CONCERNING GLUCOKINASE ACTIVATOR
PROJECT

 

THIS AGREEMENT CONCERNING GLUCOKINASE
ACTIVATOR PROJECT (this “Agreement”) is entered into this 20th day of February, 2007 (the “Effective
Date”), by and between Novo Nordisk A/S, a corporation organized under the laws of Denmark, having a business address
at Novo Allé, DK-2880 Bagsvaerd, Denmark (“Novo”), and TransTech Pharma, Inc., a corporation organized
under the laws of the State of Delaware, having a business address at 4170 Mendenhall Oaks Parkway, High Point, North Carolina
27265, USA (“TransTech”).

 

WHEREAS, on June 22, 2001, Novo and TransTech
entered into an Umbrella Research and License Agreement (the “Umbrella Agreement”), pursuant to which, among
other things, Novo and TransTech collaborated on a research project relating to Glucokinase Activators (as hereinafter defined)
under the terms of a Statement of Work executed on or about July 2, 2001 in connection therewith (the “GK Statement”);

 

WHEREAS, pursuant to Sections 7.1.1 and
7.1.2 of the Umbrella Agreement and the GK Statement, TransTech licensed to Novo certain patents, patent applications and other
intellectual property) relating to the GK Activator Project (as hereinafter defined);

 

WHEREAS, Novo has developed or used its
own proprietary data, patents, patent applications and other intellectual property rights in connection with its activities under
the GK Activator Project;

 

WHEREAS, TransTech has alleged in writing
to Novo that Novo is in breach of its obligations under the Umbrella Agreement with respect to the GK Activator Project, Novo has
denied in writing the existence of any such breach, and the Parties (as hereinafter defined) now wish to resolve all such discussions
in the context of this Agreement (the “Breach Issue”);

 

WHEREAS, (a) TransTech desires to obtain,
and Novo is willing to (i) have the Reverting Rights (as hereinafter defined) revert to TransTech, and (ii) license to TransTech
the Novo Intellectual Property and Novo Materials (as hereinafter defined) in order to develop and commercialize Licensed Products
(as hereinafter defined), under the terms and conditions set forth herein, and (b) the Parties desire to resolve amicably
the Breach Issue; and

 

WHEREAS, as of the Effective Date, the Umbrella
Agreement and the GK Statement shall terminate and be of no further force and effect;

 

NOW, THEREFORE, in consideration of the
premises above and the terms and conditions set forth below, the Parties agree as follows:

 

ARTICLE
I

DEFINITIONS

 

The following terms, whether used in the
singular or plural, shall have the following meanings:

 

1.1             
“Act”. Act means both the United States Federal Food, Drug, and Cosmetic Act, as amended from
time to time, and the regulations promulgated under the foregoing.

 

    	 

    	 

    

 

1.2             
“Affiliate”. Affiliate means any Person directly or indirectly controlled by, controlling or under
common control with, a Party, but only for so long as such control shall continue. For purposes of this definition, “control”
(including, with correlative meanings, “controlled by”, “controlling” and “under common control with”)
means, with respect to a Person, possession, direct or indirect, of (a) the power to direct or cause direction of the management
and policies of such Person (whether through ownership of securities or partnership or other ownership interests, by board representation,
by contract or otherwise), or (b) at least fifty percent (50%) of the voting securities (whether directly or pursuant to any option,
warrant or other similar arrangement) or other comparable equity interests. For the avoidance of doubt, neither of the Parties
shall be deemed to be an “Affiliate” of the other.

 

1.3             
“Bankruptcy Code”. Bankruptcy Code means Title 11 of the United States Code, as amended from time
to time.

 

1.4             
“Business Day”. Business Day means a day that is not a Saturday, Sunday or a day on which banking
institutions in New York, New York, USA are authorized by Law to remain closed.

 

1.5             
“Calendar Quarter”. Calendar Quarter means each of the three-month periods during the Term ending
on March 31, June 30, September 30 and December 31, respectively.

 

1.6             
“Calendar Year”. Calendar Year means each calendar year during the Term.

 

1.7             
“Combination Product”. Combination Product means (a) any pharmaceutical product that is a
single formulation consisting of a Licensed Product and one or more other active compounds or active ingredients or (b) any
combination of a Licensed Product sold together with other separately formulated active compounds or active ingredients for a single
invoiced price.

 

1.8             
“Commercialization” or “Commercialize”. Commercialization or Commercialize
means activities directed to obtaining pricing and reimbursement approvals, marketing, promoting, distributing, importing or selling
a product. For purposes of clarity, Commercialization shall not include any activities related to Manufacturing.

 

1.9             
“Commercialization Partner”. Commercialization Partner means a pharma company that (a) receives
a sublicense under Section 2.1(c) to Manufacture and Commercialize a Licensed Product, (b) is one of the largest twenty (20) pharma
companies in the world by revenue at the time of granting of such sublicense and (c) is not Novo.

 

1.10         
“Completion”. Completion means, with respect to any clinical trial, the earlier of the date on
which (a) a final study report is issued that confirms that the efficacy endpoints with respect to such trial support Regulatory
Approval in the United States or (b) TransTech elects to proceed to the next phase of Development without regard to the contents
of such final study report.

 

    	2

    	 

    

 

1.11         
“Compound”. Compound means any Glucokinase Activator and shall be understood in its broadest sense
to encompass all types of chemical, biological or biochemical structures and compounds that activate glucokinase through binding
with the glucokinase enzyme (“Glucokinase Activators”). Merely to illustrate the breadth of this definition
and not by way of limitation, “Compound” includes each and every type of structure or compound of biological or pharmaceutical
interest, including small and large molecules, macromolecules and assemblies; saccharides, carbohydrates, lipids, peptides, polypeptides,
proteins, amino and nucleic acids and derivatives thereof; cell compounds, products and byproducts, including without limitation
antibodies, hormones and enzymes; and various other modulators of biological activity.

 

1.12         
“Control” or “Controlled”. Control or Controlled means, with respect to any
intellectual property right, other intangible property or any tangible property, the possession (whether by ownership or license
(other than pursuant to this Agreement)) by a Party of the ability to grant to the other Party access and/or a license or sublicense
as provided herein without violating the terms of any agreement with any Third Party.

 

1.13         
“Cover”, “Covering” or “Covered”. Cover, Covering or Covered
means, with respect to a product or with respect to a technology, process or method, that, in the absence of a license granted
under a Valid Claim, the manufacture, use, offer for sale, sale or importation of such product or the practice of such technology,
process or method would infringe such Valid Claim (or, in the case of a claim of a patent application that would become a Valid
Claim if such application were to issue as a patent, would reasonably likely infringe such claim if such patent application were
to issue).

 

1.14         
“Development” or “Develop”. Development or Develop means pre-clinical and clinical
research and drug development activities, including toxicology, pharmacology and other pre-clinical development efforts, test method
development and stability testing, process development, formulation development, delivery system development, quality assurance
and quality control development, statistical analysis, clinical studies (including pre- and post-approval studies and investigator
sponsored clinical studies), regulatory affairs, and Regulatory Approval and clinical study regulatory activities (excluding regulatory
activities directed to obtaining pricing and reimbursement approvals). For purposes of clarity, “Development” and “Develop”
includes basic research, screening and discovery activities directed to the identification of new compounds or molecules.

 

1.15         
“EMEA”. EMEA means The European Agency for the Evaluation of Medicinal Products and any successor
agency thereto.

 

1.16         
“Exclusivity Period”. Exclusivity Period means, with respect to a Licensed Product sold in a country
in the Territory, that period during which at least one Valid Claim of the Novo Patent Rights Covers the Licensed Product in such
country.

 

1.17         
“FDA”. FDA means the United States Food and Drug Administration and any successor agency thereto.

 

    	3

    	 

    

 

1.18         
“Field”. Field means the prevention, treatment, control, mitigation or palliation of all human
or animal diseases or conditions.

 

1.19         
“Filing”. Filing means, with respect to an application for Regulatory Approval, that the applicable
Regulatory Authority has made a threshold determination that the application is sufficiently complete to permit a substantive review.

 

1.20         
“First Commercial Sale”. First Commercial Sale means, with respect to a Licensed Product, the
date on which TransTech or one of its Sublicensees or Affiliates completes the first sale of the Licensed Product to a Third Party
other than a Sublicensee for a purpose other than Development, Regulatory Approval or scientific testing.

 

1.21         
“GK Activator Project”. GK Activator Project means activities by a Party or Parties under the
Umbrella Agreement and/or this Agreement on a research project relating to Glucokinase Activators.

 

1.22         
“GAAP”. GAAP means accounting principles generally accepted in the United States of America, as
in effect from time to time.

 

1.23         
“Governmental Authority”. Governmental Authority means any United States federal, state or local
or any foreign government, or political subdivision thereof, or any multinational organization or authority or any authority, agency
or commission entitled to exercise any administrative, executive, judicial, legislative, police, regulatory or taxing authority
or power, any court or tribunal (or any department, bureau or division thereof), or any governmental arbitrator or arbitral body.

 

1.24         
“Indication”. Indication means a separate and distinct disease or medical condition that a Licensed
Product is intended to prevent, treat, control, mitigate and/or palliate, or for which a Licensed Product has received Regulatory
Approval.

 

1.25         
“Initiation”. Initiation means, with respect to any clinical trial, the date on which the first
volunteer or patient in such trial has received his or her initial dose of the Licensed Product.

 

1.26         
“Know-How”. Know-How means proprietary or non-public information and materials, whether patentable
or not, including, (a) ideas, discoveries, inventions, improvements or trade secrets, (b) pharmaceutical, chemical and biological
materials, products and compositions, (c) tests, assays, techniques, data, methods, procedures, formulas, and/or processes, (d)
technical and non-technical data and other information relating to any of the foregoing, (e) drawings, plans, designs, diagrams,
sketches, specifications and/or other documents containing or relating to such information or materials, and (f) business processes,
price data and information, marketing data and information, sales data and information, marketing plans and market research.

 

1.27         
“Knowledge”. Knowledge means, with respect to a Party, the actual knowledge of an officer of such
Party, or any in-house legal counsel of such Party, without any duty to conduct any additional investigation with respect to such
facts and information by reason of the execution of, or the transactions contemplated by, this Agreement.

 

    	4

    	 

    

 

1.28         
“Law” or “Laws”. Law or Laws means all laws, statutes, rules, codes, regulations,
orders, judgments and/or ordinances of any Governmental Authority.

 

1.29         
“Licensed Product”. Licensed Product means any pharmaceutical preparation or product comprising
a Compound that is Covered by Novo Patent Rights or uses or embodies Novo Know-How and is (a) for sale by prescription, over-the-counter
or any other method, or (b) for administration to patients in a clinical trial, and shall include any Licensed Product that is
part of a Combination Product.

 

1.30         
“Losses”. Losses means any and all (a) claims, losses, liabilities, damages, fines, royalties,
governmental penalties or punitive damages, deficiencies, interest, awards, and judgments, (b) with respect to Third Parties, settlement
amounts and all of the items referred to in clause (a), which include Third Party special, indirect, incidental, and consequential
damages (including lost profits) and Third Party punitive and multiple damages, and (c) in connection with all of the items referred
to in clauses (a) and (b) above, any and all costs and expenses (including reasonable attorneys fees and all other expenses reasonably
incurred in investigating, preparing or defending any litigation or proceeding, commenced or threatened).

 

1.31         
“Major EU Country”. Major EU Country means France, Germany, Italy, Spain or the United Kingdom.

 

1.32         
“Major Markets”. Major Markets means the United States, the Major EU Countries and Japan.

 

1.33         
“Manufacture” or “Manufacturing”. Manufacture or Manufacturing means activities
directed to producing, manufacturing, processing, filling, finishing, packaging, labeling, quality assurance testing and release,
shipping and storage of a product.

 

1.34         
“MHW”. MHW means the Japanese Ministry of Health and Welfare and any successor agency thereto.

 

1.35         
“NDA”. NDA means a New Drug Application or Biologics License Application, as the case may be,
as defined in the Act, filed with the FDA with respect to a Licensed Product, or an equivalent application filed with the Regulatory
Authority of a country in the Territory other than the United States.

 

1.36         
“Net Sales”. Net Sales means the gross amounts billed or invoiced by TransTech, its Affiliates
and Sublicensees to any Third Party that is not a Sublicensee with respect to sales of Licensed Products in the Territory, calculated
in the same manner as reported in its audited financial statements, less the sum of the following:

 

(a)               
Discounts, credits, refunds and rebates actually allowed by TransTech, its Affiliates or their Sublicensees in amounts
customary in the trade directly for a Licensed Product;

 

(b)              
Sales, import, export, customs, and value added taxes, and duties directly imposed on the Licensed Products and actually
paid by TransTech, its Affiliates or their Sublicensees, in each case included as a specific line item on an invoice to such Third
Parties;

 

    	5

    	 

    

 

(c)               
Actual outbound freight and insurance costs actually paid by TransTech, its Affiliates or their Sublicensees directly
on Licensed Products, in each case included as a specific line item on an invoice to such Third Parties;

 

(d)              
Amounts actually allowed or credited on returns of sales of Licensed Products by TransTech, its Affiliates or their
Sublicensees; and

 

(e)               
Amounts that are actually written off as non-collectible for the sale of Licensed Products after TransTech’s,
its Affiliates’ or their Sublicensees’ commercially reasonable best efforts to collect such amounts.

 

In the event that Licensed Products are sold or otherwise commercially
disposed of as part of Combination Products, the Net Sales of the Licensed Products, for purposes of determining royalty payments,
shall be determined, as to each unit of Combination Product sold or otherwise disposed of, by multiplying (x) the Net Sales of
the Combination Product (determined according to the method set forth above in this Section 1.36) and (y) the Applicable Fraction
determined in accordance with the following:

 

(i)                
Except as otherwise set forth in this Section 1.36, the “Applicable Fraction” shall be A/(A+B),
where A is the average wholesale price of the Licensed Product when sold separately in finished form and B is the average wholesale
price of the other product(s) sold separately in finished form.

 

(ii)              
In the event that the average wholesale price of the Licensed Product when sold separately in finished form can be
determined but the average wholesale price of the other product(s) when sold separately in finished form cannot be determined,
the “Applicable Fraction” shall be A/C, where A is the average wholesale price of the Licensed Product when
sold separately in finished form and C is the average wholesale price of the Combination Product.

 

(iii)            
In the event that the average wholesale price of the other product(s) when sold separately in finished form can be
determined but the average wholesale price of the Licensed Product when sold separately in finished form cannot be determined,
the “Applicable Fraction” shall be (C-D)/C, where D is the average wholesale price of the other product(s) when
sold separately in finished form and C is the average wholesale price of the Combination Product.

 

(iv)            
In the event that the average wholesale price of neither the Licensed Product when sold separately in finished form
nor the other product(s) when sold separately in finished form can be determined, the “Applicable Fraction”
shall be F/(F+G), where F is the fair market value of the Licensed Product contained in the Combination Product and G is the fair
market value of all other biologically active substances contained in the Combination Product, as reasonably determined in good
faith by the Parties.

 

(v)              
The “Applicable Fraction” for a Combination Product shall remain fixed for sales within a single
Calendar Year and shall be calculated at the beginning of such Calendar Year and used during all applicable royalty periods for
such Calendar Year. The average wholesale prices shall be calculated using the prices actually charged for such Combination Product,
Licensed Product or other product(s) by TransTech, its Affiliates or its Sublicensees to any Third Party that is not a Sublicensee
in the relevant region during the July-September period in the Calendar Year preceding the calculation.

 

    	6

    	 

    

 

1.37         
“Novo Intellectual Property”. Novo Intellectual Property means the Novo Know-How and the Novo
Patent Rights.

 

1.38         
“Novo Know-How”. Novo Know-How means all Know-How relating to Compounds that is Controlled by
Novo as of the Effective Date, including the Novo Materials.

 

1.39         
“Novo Materials”. Novo Materials means any Compound discovered or developed by Novo or TransTech
pursuant to the Umbrella Agreement and includes the Compounds that Novo labeled as of the Effective Date NNC 0080-0000-0091 (also
referred to as NNC 80-0091 and NN9101), NNC 0080-0000-0139 (also referred to as NNC 80-0139 and NN9139), NNC 0080-0000-3315 (also
referred to as NNC 80-3315 and NN9108) and NNC 0080-0000-4288 (also referred to as NNC 80-4288), the exact chemical structures
of which are provided on Exhibit E annexed to this Agreement, and the Licensed Products and Compounds set forth on Exhibit
F annexed to this Agreement.

 

1.40         
“Novo Patent Rights”. Novo Patent Rights means (a) the Patent Rights with respect to the patents
and applications set forth on Exhibit A annexed to this Agreement and (b) any other Patent Rights that are Controlled by
Novo and that Cover Novo Know-How.

 

1.41         
“Party”. Party means either TransTech or Novo; “Parties” means both TransTech
and Novo.

 

1.42         
“Patent Rights”. Patent Rights means, with respect to any patent or patent application, all rights
and interests in, to or associated with such patent, patent application or any patent issuing on such application in any jurisdiction
in the Territory, including (a) all patents claiming priority from such patent or application or any other application from
which such patent or application claims priority, (b) all patents issuing on divisionals, continuations, renewals, continuations-in-part
or re-examinations of such patent, application or priority patent or application, and (c) patents of addition, supplementary
protection certificates, extensions, registrations, confirmation patents and reissues with respect to any of the foregoing.

 

1.43         
“Person”. Person means any natural person or any corporation, company, partnership, joint venture,
firm, Governmental Authority or other entity, including a Party.

 

1.44         
“Phase II Clinical Trial”. Phase II Clinical Trial means a human clinical trial in any one or
more countries in the Territory that would satisfy the requirements of 21 C.F.R. § 312.21(b).

 

1.45         
“Phase III Clinical Trial”. Phase III Clinical Trial means a human clinical trial in any country
in the Territory that is registered with the FDA as a “Phase III” trial and would satisfy the requirements of 21 C.F.R.
§ 312.21(c).

 

    	7

    	 

    

 

1.46         
“Regulatory Approval”. Regulatory Approval means the granting by the FDA or by a comparable Regulatory
Authority of approval to market a pharmaceutical preparation or product in a country in the Territory.

 

1.47         
“Regulatory Authority”. Regulatory Authority means any Governmental Authority, including the FDA,
EMEA or MHW, with responsibility for granting licenses or approvals (with the exception of price approvals) necessary for the marketing
and sale of pharmaceutical preparations or products in any country.

 

1.48         
“Sublicensee”. Sublicensee means any Third Party granted a license or sublicense to Manufacture,
have Manufactured, import, export, use, sell or offer for sale Licensed Products pursuant to Section 2.1(c). Third Parties that
are permitted only to distribute and resell Licensed Products shall be considered Sublicensees only if such Third Parties are also
responsible for marketing and promoting the applicable Licensed Product in the applicable country. Notwithstanding anything to
the contrary in the foregoing, Third Parties that only (a) re-package a Licensed Product for resale or (b) Manufacture
a Licensed Product for supply to TransTech or its Affiliates or Sublicensees (and have no other right to Develop or Commercialize
such Licensed Product) are not Sublicensees. For the avoidance of doubt, nothing in this Section 1.48 shall limit TransTech’s
obligations under Section 3.2 below to engage a Commercialization Partner.

 

1.49         
“Territory”. Territory means all countries of the world.

 

1.50         
“Third Party”. Third Party means any Person other than TransTech or Novo or any of their respective
Affiliates.

 

1.51         
“TransTech Patent Rights”. TransTech Patent Rights means all Patent Rights related to Compounds
that are Controlled by TransTech as of the Effective Date or thereafter during the Term, including any Patent Rights included in
the Reverting Rights.

 

1.52         
“Valid Claim”. Valid Claim means any claim from an issued and unexpired patent included within
the TransTech Patent Rights or the Novo Patent Rights that has not been revoked or held unenforceable or invalid by a final decision
of a court or other Governmental Authority of competent jurisdiction, and that has not been disclaimed, denied or admitted to be
invalid or unenforceable through reissue or disclaimer or otherwise.

 

1.53         
Additional Definitions. Each of the following definitions is set forth in the section of this Agreement indicated
below:

 

	Definition:	Section:
	9.5 Deciding Bankers	Section 9.5(a)
	Agents	Section 6.1
	Agreement	Preamble
	Applicable Fraction	Section 1.36(i)-(v)
	Breach Issue	Recitals
	Commercialization Agreement	Section 3.2(a)
	Confidential Information	Section 6.2
	Courts	Section 11.2

 

    	8

    	 

    

 

	Deciding Bankers	Section 3.2(b)
	Effective Date	Preamble
	Effective Time	Section 9.5(b)
	First Sales Date Estimate	Section 3.3
	GK Statement	Recitals
	Glucokinase Activator	Section 1.11
	Indemnified Party	Section 8.3(a)
	Indemnifying Party	Section 8.3(a)
	Infringement Claim	Section 5.5
	Invalidity Claim	Section 5.4
	Novo	Preamble
	Novo Parties	Section 8.2
	Paragraph IV Claim	Section 5.3(a)
	Partner Deadline	Section 3.2(a)
	Product Liability	Section 8.1(c)(ii)(A)
	Prosecution	Section 5.2(a)
	Released Group	Section 10.1
	Releasing Group	Section 10.1
	Releasor	Section 10.1
	Reverting Rights	Section 2.1(a)
	Royalty Term	Section 4.2(c)
	Stand-by License Agreement	Section 9.5(b)
	Term	Section 9.1
	Third-Party Claims	Section 8.1(c)
	TransTech	Preamble
	TransTech Parties	Section 8.1
	Umbrella Agreement	Recitals

 

ARTICLE
II

TRANSTECH RIGHTS

 

2.1             
Reversions and Grants of Rights. Subject to all of the other terms and conditions of this Agreement, TransTech
shall obtain the rights set forth in this Section 2.1 as of the Effective Date.

 

(a)               
Reversion of Grant from Umbrella Agreement. As of the Effective Date, all intellectual property and other
rights previously licensed by TransTech to Novo pursuant to Section 7.1.1 or 7.1.2 of the Umbrella Agreement with respect to the
GK Activator Project or pursuant to the GK Statement (the “Reverting Rights”) shall revert to TransTech.

 

(b)              
License Grant. As of the Effective Date, Novo shall grant to TransTech an exclusive (even as to Novo), royalty-bearing
license, under the Novo Intellectual Property, to discover, Develop, Manufacture, have Manufactured, use and Commercialize in the
Field in the Territory Licensed Products.

 

    	9

    	 

    

 

(c)               
Sublicenses. TransTech may grant to its Affiliates and to Third Parties sublicenses under the licenses granted
under Section 2.1(b) without Novo’s separate approval but with written notice to Novo. For the avoidance of doubt, nothing
in the foregoing sentence shall limit TransTech’s obligations under Section 3.2 below to engage a Commercialization Partner.

 

2.2             
Data and Material Transfer.

 

(a)               
Promptly following the Effective Date, Novo will transfer to TransTech Novo Materials and all data relating to the
Novo Materials, including (i) all data relating to tests or trials conducted on or using Licensed Products and (ii) samples
of Licensed Products and Compounds in accordance with the payment and other terms set forth on Exhibit F. Each Party will
bear its own costs in connection with any such transfer, except that TransTech will reimburse Novo’s reasonable and actually
incurred out-of-pocket costs upon receipt of appropriate documentation with respect to such costs.

 

(b)              
For a period of three (3) months following the Effective Date, Novo will supply reasonable transition assistance
in order to permit TransTech to assume all responsibility for the GK Activator Project at the earliest practicable time, including
without limitation reasonable access to Novo’s personnel as available (through one or more contact Persons designated by
Novo), and documents (so that TransTech may copy and retain all such documents) to the extent related to the GK Activator Project,
a list of such documents being attached hereto as Exhibit B. Each Party will bear its own costs in connection with such
transitional assistance, except that TransTech will reimburse Novo’s reasonable and actually incurred out-of-pocket costs
upon receipt of appropriate documentation with respect to such costs. Furthermore, Novo will complete at its sole expense, in cooperation
with TransTech and in a manner consistent with professional practice, and make available to TransTech the data created by and the
results of, all studies described in Exhibit C attached hereto arising out of the GK Activator Project that are ongoing
as of the Effective Date. For the avoidance of doubt, the foregoing imposes an obligation on Novo to complete the studies listed
in Exhibit C and finalize any associated study reports in a timely manner, which may exceed the three (3) month period mentioned
above.

 

(c)               
Subject to all the other terms and conditions of this Agreement, Novo hereby grants to TransTech a non-exclusive,
royalty-free license to Patent Rights and Know-How Controlled by Novo as of the Effective Date not otherwise licensed to TransTech
pursuant to this Agreement that are necessary to discover, Develop, Manufacture, have Manufactured, use and Commercialize Licensed
Products in the Field in the Territory.

 

2.3             
Rights Retained by the Parties. Any right of TransTech or Novo, as the case may be, not expressly granted
to the other Party under this Agreement shall be retained by such Party.

 

2.4             
Section 365(n) of the Bankruptcy Code. All rights and licenses granted under or pursuant to any Section of
this Agreement, including under Section 2.1(b), 2.1(c) or 2.2(c), are rights to “intellectual property” (as defined
in Section 101(35A) of the Bankruptcy Code). Each of TransTech and Novo hereby acknowledges that (a) copies of research data, (b)
laboratory samples, (d) product samples, (d) formulas, (e) laboratory notes and notebooks, (f) data and results related to clinical
trials, (g) regulatory filings and approvals, (h) rights of reference in respect of regulatory filings and approvals, (i) pre-clinical
research data and results, and (j) marketing, advertising and promotional materials, in each case, that relate to such intellectual
property, constitute “embodiments” of such intellectual property pursuant to Section 365(n) of the Bankruptcy Code.
Each Party shall retain and may fully exercise all of its rights and elections under the Bankruptcy Code or equivalent legislation
in any other jurisdiction.

 

    	10

    	 

    

 

ARTICLE
III

DEVELOPMENT, MANUFACTURE AND COMMERCIALIZATION

 

3.1             
General. Except as set forth in Section 3.2, TransTech shall have sole and exclusive control, following the
Effective Date, at its sole expense, of the discovery, Development, Regulatory Approval, Manufacture and Commercialization of Licensed
Products in the Field in the Territory and TransTech (alone or through an Affiliate or Sublicensee) shall use commercially reasonable
best efforts to Develop and obtain Regulatory Approval for at least one Licensed Product.

 

3.2             
Commercialization Partner.

 

(a)               
TransTech shall use commercially reasonable best efforts to enter into, on or before the date (the “Partner
Deadline”) that is [***] prior to the earliest date on which TransTech expects to conclude the First Commercial Sale
of such Licensed Product, one or more binding agreements requiring a Commercialization Partner to use commercially reasonable best
efforts to Manufacture and Commercialize at least one Licensed Product in at least the Major Markets (each such agreement, a “Commercialization
Agreement”). TransTech, in its sole discretion, shall determine the terms of any such Commercialization Agreement subject
to the efforts requirements set forth in this subsection (a). At the start of negotiations with any potential Commercialization
Partner, TransTech shall offer to Novo an opportunity to negotiate a Commercialization Agreement in good faith and on a non-exclusive
basis, provided that TransTech, in its sole discretion, shall decide whether or not to enter into a Commercialization
Agreement with Novo or any potential Commercialization Partner. Novo shall have one (1) month from the date of TransTech’s
offer to accept or reject such offer to negotiate a Commercialization Agreement.

 

(b)              
If TransTech has not entered into one or more Commercialization Agreement(s) covering all Major Markets on or before
the Partner Deadline, TransTech shall offer Novo an opportunity to negotiate in good faith a Commercialization Agreement covering
the remaining Major Markets or all Major Markets, as the case may be. Novo shall have one (1) month from the Partner Deadline to
accept or reject, in writing, TransTech’s offer to negotiate in good faith a Commercialization Agreement. If (i) Novo elects
to enter into such negotiations with TransTech and (ii) TransTech shall not have (A) concluded such a Commercialization Agreement
with Novo within three (3) months after Novo provides notice of such election or (B) received written notice from Novo within such
three (3) month period of Novo’s intent to terminate such negotiations, then TransTech and Novo shall retain three (3) mutually
acceptable, internationally recognized investment banking firms at least one (1) of which shall be based in the European Union
and at least one (1) of which shall be based in the United States (the “Deciding Bankers”), which Deciding Bankers
shall each independently assess the facts and circumstances relating to the Commercialization of Licensed Products in the applicable
Major Markets and recommend each major deal term relating to such Commercialization Agreement. Novo and TransTech will, following
the recommendations of the Deciding Bankers, be deemed to have concluded a Commercialization Agreement on terms equal to the average
of the terms recommended by the Deciding Bankers, which Commercialization Agreement shall be binding upon and enforceable by the
Parties.

 

    	11

    	 

    

 

(c)               
If Novo (i) does not elect to enter into negotiations with TransTech regarding a Commercialization Agreement after
the Partner Deadline on or before the expiration of the one (1) month notice period set forth in subsection (b) above or (ii) terminates
negotiations as described in Section 3.2(b)(ii)(B), then TransTech shall be free in its sole discretion to Manufacture and Commercialize
Licensed Products either alone or with any other Person, shall not be considered to be in breach of its obligations under this
Section 3.2 by not entering into a Commercialization Agreement, and shall have no further obligations under this Section 3.2.

 

3.3             
Exchange of Information. TransTech will provide to Novo semi-annual written reports setting forth, in reasonable
detail, information on TransTech’s, or as applicable, its Affiliates’ and their Sublicensees’, Development and
sales activities with respect to Licensed Products, which shall include, until such time as TransTech enters into one or more binding
agreements with one or more Commercialization Partners, an estimate as to the earliest date on which TransTech expects to conclude
the First Commercial Sale of a Licensed Product (the “First Sales Date Estimate”). In no event shall TransTech
be deemed to be in breach of this Agreement for its failure to meet the First Sales Date Estimate described in any semi-annual
report and the date of the Partner Deadline shall change with any change in the First Sales Date Estimate in accordance with the
terms of Section 3.2.

 

ARTICLE
IV

FINANCIAL PROVISIONS

 

4.1             
Milestone Payments.

 

(a)               
In General. Except as set forth in Section 4.1(b) or Section 4.3, TransTech shall make to Novo the non-refundable
payments set forth below not later than ten (10) Business Days after the earliest date on which the corresponding milestone event
for a Licensed Product set forth below first occurs:

 

	[***]	[***]
	[***]	[***]
	[***]	[***]
	[***]	[***]
	[***]	[***]
	[***]	[***]
	[***]	[***]
	[***]	[***]
	[***]	[***]
	[***]	[***]
	[***]	[***]
	(xi)           Annual Net Sales first reach [***]	[***]
	(xii)          Annual Net Sales first reach [***]	[***]
	(xiii)         Annual Net Sales first reach [***]	[***]

 

    	12

    	 

    

 

(b)              
Limitations on Payments. Notwithstanding anything in Section 4.1(a) to the contrary, (i) each milestone
payment set forth in Sections 4.1(a)(i)-(iii) shall be paid at most once, even if a particular Licensed Product shall achieve a
milestone event more than once due to Development or Commercialization for other Indication(s) or more than one Licensed Product
shall achieve the same milestone event, (ii) each milestone payment set forth in Sections 4.1(a)(iv)-(xiii) may be [***],
and (iii) no Regulatory Approval milestone in any country shall be deemed achieved unless the Licensed Product shall have
received all pricing and reimbursement approvals if such approvals are necessary to permit Commercial sales of the Licensed Product
in such country.

 

(c)               
Payment in Cash or Stock. Notwithstanding anything in this Agreement to the contrary, TransTech may choose,
in its sole discretion, to make the payments set forth in Sections 4.1(a)(iv)-(xiii) in cash (denominated in U.S. currency) or
in TransTech equity securities, as long as, at the time of such payment, such securities publicly trade on any stock exchange or
market and such securities would not be subject to any “lock-up” arrangement or other contractual arrangement prohibiting
free transfer. If the payment is made in securities, the value of each such security, for purposes of this payment, shall be the
average of the closing trading price for such security during the ten (10) trading days immediately prior to the date on which
such milestone payment became due.

 

4.2             
Product Royalties.

 

(a)               
In General. TransTech shall pay to Novo royalties on Net Sales to Third Parties (other than Sublicensees)
of each Licensed Product in the Territory as follows:

 

	Calendar Year Net Sales of the Licensed Product	Royalty Rate
	Less than or equal to [***]	[***]
	Greater than [***] and less than or equal to [***]	[***]
	Greater than [***] and less than or equal to [***]	[***]
	Greater than [***]	[***]

 

    	13

    	 

    

 

(b)              
Applicability of Royalty Rates to Net Sales in the Territory. Royalties on aggregate Net Sales of any Licensed
Product in the Territory in a Calendar Year shall be paid at the rate applicable to the portion of Net Sales within each of the
Net Sales levels during such Calendar Year. [***].

 

(c)               
Royalty Term and Adjustments. TransTech’s royalty obligations to Novo under this Section 4.2 shall commence
on a country-by-country and Licensed Product-by-Licensed Product basis on the date of the First Commercial Sale of such Licensed
Product in such country by TransTech, its Affiliates or Sublicensees to a Third Party that is not a Sublicensee and shall expire
on a country-by-country and Licensed Product-by-Licensed Product basis on the later of: (i) the expiration of the Exclusivity
Period in such country or (ii) the tenth (10th) anniversary of the date of the First Commercial Sale of such Licensed Product
in such country by TransTech, its Affiliates or its Sublicensees (the “Royalty Term”); provided, however,
that the royalty rates in the United States and Japan shall be deemed to be [***] of the rates set forth in Section 4.2(a) during
any portion of the Royalty Term in which the Exclusivity Period has expired in such country. Licensed Products that comprise different
pharmaceutical formulations of the same Compound shall be considered a single Licensed Product for purposes of determining the
royalty rates set forth in Section 4.2(a).

 

4.3             
Reports; Payments. Within sixty (60) days after the end of each Calendar Quarter during which there
are Net Sales giving rise to a payment under Section 4.2, TransTech shall cause to be submitted to Novo a report, providing, with
respect to each Licensed Product with Commercial sales, in reasonable detail an accounting of all Net Sales in each country in
the Territory made during such Calendar Quarter. Concurrently with each such report, TransTech shall pay to Novo all royalties
and sales milestones payable by it with respect to activities in such Calendar Quarter under Sections 4.1 and 4.2.

 

4.4             
Books and Records; Audit Rights. TransTech shall keep complete and accurate records of the underlying revenue
and expense data relating to the calculations of Net Sales and payments required by Sections 4.1 and 4.2. Novo shall have the right,
once annually at its own expense, to have an independent, certified public accounting firm, selected by Novo and reasonably acceptable
to TransTech, review any such records of TransTech in the location(s) where TransTech maintains such records upon reasonable notice
(which shall be no less than fourteen (14) days prior written notice) and during regular business hours and under obligations of
strict confidence, for the sole purpose of verifying the basis and accuracy of payments made under Sections 4.1 and 4.2 within
the twenty-four (24) month period preceding the date of the request for review. The report of such accounting firm shall be limited
to a certificate stating whether any report made or payment submitted by TransTech during such period is accurate or inaccurate
and the actual amounts of Net Sales and royalties due for such period. TransTech shall receive a copy of each such report concurrently
with receipt by Novo. Should such inspection lead to the discovery of a discrepancy to Novo’s detriment, TransTech shall
pay within five (5) Business Days after its receipt from the accounting firm of the certificate the amount of the discrepancy.
Novo shall pay the full cost of the review unless the discrepancy is greater than ten percent (10%) to Novo’s detriment,
in which case TransTech shall pay the reasonable cost charged by such accounting firm for such review.

 

    	14

    	 

    

 

4.5             
Taxes. Novo shall pay any and all taxes levied on account of all payments it receives under this Agreement.
If Laws require that taxes be withheld, TransTech will (a) deduct those taxes from the remittable payment, (b) timely
pay the taxes to the proper taxing authority, and (c) send proof of payment to Novo within thirty (30) days after receipt
of confirmation of payment from the relevant taxing authority. TransTech will use commercially reasonable efforts to cooperate
with Novo to obtain the benefit of any applicable tax Law or treaty, including the pursuit of any available refund or credit of
such tax to Novo. Without limiting the generality of the foregoing, TransTech agrees that if Novo provides to TransTech a properly
completed IRS Form W-8BEN certifying that Novo is entitled to the benefits of the income tax treaty between the United States and
Denmark, then TransTech will not withhold United States federal income taxes from the payments to be made hereunder by TransTech
to Novo.

 

4.6             
United States Dollars. All dollar ($) amounts specified in this Agreement are United States dollar amounts.

 

4.7             
Currency Exchange. All payments to be made to Novo by TransTech shall be made by wire transfer of immediately
available funds in United States Dollars, to a bank account designated by Novo able to receive United States Dollars. Royalty payments
shall be converted to United States Dollars in accordance with the following: the rate of currency conversion shall be calculated
using a simple average of mid-month and month-end rates as provided by Brown Brothers Harriman, 59 Wall Street, NY, NY 10005, for
each relevant period or, if such rate is not available, the spot rate as published by The Wall Street Journal, Eastern Edition
for such relevant period. The currency rates used shall be set forth in the report for that period provided by TransTech to Novo
pursuant to Section 4.3.

 

4.8             
Blocked Payments. If by reason of applicable Laws in any country in the Territory, it becomes illegal for
TransTech or its Affiliates or Sublicensees to transfer, or have transferred on its behalf, milestones, royalties or other payments
to Novo, TransTech shall promptly notify Novo of the conditions preventing such transfer and such royalties or other payments shall
be deposited in local currency in the relevant country to the credit of Novo in a recognized banking institution designated by
Novo or, if none is designated by Novo within a period of thirty (30) days, in a recognized banking institution selected by TransTech
or its Affiliate or Sublicensee, as the case may be, and identified in a notice given to Novo. If so deposited in a foreign country,
TransTech shall provide, or cause its Affiliate or Sublicensee to provide, reasonable cooperation to Novo so as to allow Novo to
assume control over such deposit as promptly as practicable.

 

4.9             
Resolution of Disputes. If there is a dispute, claim or controversy relating to any financial obligation
owed by one Party to the other Party pursuant to this Agreement, such Party shall provide the other Party with written notice
setting forth in reasonable detail the nature and good-faith factual basis for such dispute, and the Parties shall seek to resolve
such dispute amicably through senior, authorized representatives within twenty (20) Business Days after the date such other Party
receives such written notice. Neither Party may allege a material breach of any provision of this Article IV until the amicable
resolution period has closed. Notwithstanding any other provision of this Agreement to the contrary, neither Party shall be obligated
to pay any amount that is reasonably disputed in good faith until such dispute is resolved hereunder, provided that
(a) all amounts that are not in dispute shall be paid in accordance with the provisions of this Agreement and (b) any balance
determined to be due shall be paid together with applicable interest upon resolution of the dispute by agreement, by final judgment
or by any other means legally binding on the Parties.

 

    	15

    	 

    

 

4.10         
Novo Payment Obligations Terminated. As of the Effective Date, Novo shall have no obligation to make to TransTech
any payment (milestone, royalty or otherwise) set out in the Umbrella Agreement with respect to the GK Activator Project or the
GK Statement.

 

ARTICLE
V

INTELLECTUAL PROPERTY OWNERSHIP, PROTECTION AND RELATED MATTERS

 

5.1             
Ownership of Intellectual Property.

 

(a)               
Novo. Subject to Section 5.2(b), Novo shall retain its ownership rights to all Novo Intellectual Property.

 

(b)              
TransTech. TransTech shall own, free and clear of any claim by Novo except as otherwise expressly provided
in this Agreement, the Reverting Rights and all rights with respect to inventions, Know-How and Patent Rights relating to or arising
out of the GK Activator Project conceived following the Effective Date.

 

5.2             
Prosecution and Maintenance of Patent Rights.

 

(a)               
TransTech Patent Rights. TransTech shall have the sole right to prepare, file, prosecute and maintain (such
activities collectively, “Prosecution”) rights in patents and applications it owns or, pursuant and subject
to Section 5.1(b), otherwise controls.

 

(b)              
Novo Patent Rights. Novo shall have the first right to conduct, and TransTech shall cooperate with Novo with
respect to, the Prosecution of all Novo Patent Rights. Novo shall promptly provide to TransTech all material correspondence received
from any Governmental Authority relating to any such patent or application and shall permit to TransTech a reasonable opportunity
to approve any proposed material action with respect to any such patent or application, such approval not to be unreasonably withheld.
If Novo elects not to or does not Prosecute any such patent or application (or, after commencement of such Prosecution, elects
to or does cease such Prosecution), then Novo shall notify TransTech of such election or cessation. Novo shall not abandon any
Novo Patent Rights without at least sixty (60) days notice to TransTech. If TransTech elects to Prosecute such Novo Patent Rights,
(i) Novo shall grant to TransTech an irrevocable power of attorney with respect to all such further Prosecution, which power may
be exercised without further action on Novo’s part; (ii) Novo shall cooperate reasonably, including by executing all
documentation necessary or appropriate, to effectuate such power of attorney and to assign to TransTech such patent or application;
(iii) TransTech shall, commencing on the date of such election or cessation, pay all costs associated with Prosecution and
assignment of such patent or application; and (iv) such patent or application shall, following such assignment, no longer
be deemed a Novo Patent Right, part of Exhibit A to this Agreement or otherwise be subject to any right of Novo under this
Agreement.

 

    	16

    	 

    

 

5.3             
Third Party Infringement.

 

(a)               
Notice. Each Party shall promptly report in writing to the other Party during the Term (i) any known or suspected
infringement of, or challenge to, any of the Novo Patent Rights of which such Party becomes aware or (ii) any certification filed
pursuant to either 21 U.S.C. § 355(b)(2)(A) or § 355(j)(2)(A)(vii)(IV) or its successor provisions or any similar
provision in a country in the Territory other than the United States (a “Paragraph IV Claim”), and shall provide
the other Party with all available evidence supporting such known or suspected infringement or unauthorized use. For any of the
notification obligations of the Parties under this Section 5.3(a), it is understood that all information disclosed under such obligation
is covered by Article VI.

 

(b)              
Initial Right to Enforce. Subject to Section 5.3(c), TransTech shall have the first right to initiate suit
or take other appropriate action that it believes is reasonably required to protect (i.e., prevent or abate actual or threatened
infringement or misappropriation of) or otherwise enforce the Novo Patent Rights, provided, however, that TransTech
shall not have such first right with respect to the Novo Patent Rights unless TransTech shall pay all costs associated with such
first right, including all costs associated with protecting the validity of such Novo Patent Rights to the extent challenged by
an alleged infringer or misappropriator. TransTech may not enter into any settlement or other voluntary final disposition of any
action contemplated by this Section without Novo’s prior written consent, which consent Novo shall not unreasonably condition,
delay or withhold.

 

(c)               
Step-In Right. If TransTech fails to initiate a suit or take other appropriate action that it has the initial
right to initiate or take pursuant to Section 5.3(b) within sixty (60) days after becoming aware of the basis for such suit or
action, or, in the case that a Third Party files a Paragraph IV Claim, within twenty (20) days after receipt of the written notice
pursuant to Section 5.3(a) or desires to cease to continue any such action to stop such infringement or fails to agree to be responsible
for all associated costs as set forth in such Section, then Novo shall have the right to initiate or continue a suit or take other
appropriate action that it believes is reasonably required to protect the Novo Patent Rights.

 

(d)              
Conduct of Certain Actions; Costs. The Party initiating suit or other appropriate action or taking over continuance
of such a suit or action pursuant to Section 5.3(c) shall have the sole and exclusive right to select counsel therefor. If required
under applicable Law in order for the initiating Party to initiate and/or maintain any such suit, the other Party shall join as
a party to the suit. Such other Party shall offer reasonable assistance to the initiating Party in connection therewith at no charge
to the initiating Party except for reimbursement of reasonable out-of-pocket expenses incurred in rendering such assistance. The
initiating Party shall assume and pay all of its own out-of-pocket costs incurred in connection with any litigation or proceedings
initiated by it pursuant to Section 5.3(b) or 5.3(c), including the fees and expenses of the counsel selected by it. The other
Party shall have the right to participate and be represented in any such suit by its own counsel at its own expense. The initiating
Party shall keep the other Party reasonably informed of the progress of any legal action it initiates or conducts pursuant to Section
5.3(b) or 5.3(c).

 

    	17

    	 

    

 

(e)               
Recoveries. Any recovery obtained as a result of any suit or action initiated pursuant to Section 5.3(b) or
5.3(c) shall be paid to the Party initiating the suit, provided that:

 

(i)                
the Parties shall be reimbursed for all costs incurred in connection with such suit or action paid by the Parties
and not otherwise recovered;

 

(ii)              
if TransTech initiated the suit or action, any recovery in the form of lost profits, reasonable royalties, and/or
treble damages related to a Licensed Product awarded to TransTech in such suit or achieved through settlement of such suit that
exceeds the total costs incurred by the Parties in (i) shall be subject to the royalty obligations set forth in Section 4.2 and
any royalty payment pursuant to this Section 5.3(e) shall be due within thirty (30) days after TransTech receives payment of such
recovery amount.

 

5.4             
Patent Invalidity Claim. If a Third Party, including any Governmental Authority, at any time asserts a claim
that any of the Novo Patent Rights is invalid or otherwise unenforceable (an “Invalidity Claim”), control of
the response to such Invalidity Claim shall, as between the Parties, be determined in the same manner as enforcement rights are
determined pursuant to Sections 5.3(b) and 5.3(c), with the time periods set forth in Section 5.3(c) shortened where necessary
to provide the controlling Party sufficient time to respond without a loss of rights, and the non-controlling Party shall cooperate
with the controlling Party in the preparation and formulation of such response, and in taking other steps reasonably necessary
to respond, to such Invalidity Claim and the controlling Party shall keep the non-controlling Party reasonably informed of the
progress of any response to an Invalidity Claim. The Party controlling the response to an Invalidity Claim may not settle or compromise
such Invalidity Claim without the other Party’s consent, which consent shall not be unreasonably conditioned, delayed or
withheld.

 

5.5             
Claimed Infringement. If a Party becomes aware of, or as of the Effective Date is aware of, any claim that
the practice by either Party of Novo Patent Rights in the discovery, Development, Manufacture or Commercialization of any Licensed
Product infringes the intellectual property rights of any Third Party (an “Infringement Claim”), such Party
shall promptly notify the other Party in writing. In any such instance, the Parties shall cooperate and each Party shall provide
to the other Party a copy of any notice it receives or has received from any Third Party regarding any patent nullity action, any
declaratory judgment action or any alleged infringement or misappropriation of Third Party intellectual property relating to the
discovery, Development, Manufacture or Commercialization of any Licensed Product. Such notices shall be provided promptly, but
in no event later than fifteen (15) days following receipt thereof or, with respect to notices received prior to the Effective
Date, within fifteen (15) days after the Effective Date. The Party controlling the response to an Infringement Claim, which shall,
as between the Parties, be determined in the same manner as enforcement rights are determined pursuant to Sections 5.3(b) and 5.3(c),
shall keep the non-controlling Party reasonably informed of the progress of any response to an Infringement Claim and may not settle
such Infringement Claim without the other Party’s consent, which consent shall not be unreasonably conditioned, delayed or
withheld.

 

    	18

    	 

    

 

5.6             
Patent Term Extensions. The Parties shall cooperate, if necessary and appropriate, with each other in gaining
patent term extensions (including those extensions available under the Supplementary Certificate of Protection of Member States
of the European Union and other similar measures in any other country) wherever applicable to Patent Rights in the Territory Controlled
by either Party that Cover a Licensed Product in the Field. All filings for such extensions shall be made by the Party Controlling
such patent or responsible for the Prosecution of such Patent Rights in accordance with Section 5.2(b), if different.

 

In countries where extensions of more than
one patent may be obtained based on the Regulatory Approval of a single Licensed Product and a Novo Patent Right is a patent eligible
for an extension in such countries, TransTech shall continue to pay royalties on Net Sales of Licensed Products in such countries
pursuant to Section 4.2 for the period during which the term of the Novo Patent Right is extended.

 

In countries where an extension of only
one patent may be obtained based on the Regulatory Approval of a single Licensed Product and a Novo Patent Right and a TransTech
Patent Right each Cover the Licensed Product or its method of use, the Parties shall decide which patent to seek an extension on
as follows:

 

(a)               
If the Novo Patent Right and the TransTech Patent Right contain only the same types of claims (e.g., both
contain only method claims or both contain only product claims), then the Parties shall seek an extension for the patent whose
extended term would run to the later date and if the extended Patent is a Novo Patent Right, then TransTech shall pay Novo royalties
on Net Sales of Licensed Products in such countries pursuant to Section 4.2 taking into account the period by which the Novo Patent
Right is extended;

 

(b)              
If the Novo Patent Right contains a product claim(s) and the TransTech Patent Right contains only method claims,
then the Parties shall seek an extension for the Novo Patent Right and TransTech shall pay Novo royalties on Net Sales of Licensed
Products in such countries pursuant to Section 4.2, taking into account the period by which the Novo Patent Right is extended;
and

 

(c)               
If the TransTech Patent Right contains a product claim(s) and the Novo Patent Right contains only method claims,
then the Parties shall seek an extension for the TransTech Patent Right and TransTech shall not owe Novo royalties on Net Sales
of Licensed Products in such countries pursuant to Section 4.2 for the period by which the Novo Patent Right could have been extended.

 

ARTICLE
VI

CONFIDENTIAL INFORMATION

 

6.1             
Treatment of Confidential Information.

 

(a)               
In General. During the Term and for five (5) years thereafter, each Party shall (i) maintain Confidential
Information (as defined in Section 6.2) of the other Party in confidence, (ii) not disclose, divulge or otherwise communicate
such Confidential Information to others (except for agents, directors, officers, employees, consultants, contractors, licensees,
partners, investors, investors’ representatives, Affiliates and advisors and potential agents, consultants, contractors,
licensees, partners, investors, investors’ representatives, acquirers, acquirers’ representatives and advisors (collectively,
“Agents”) under obligations of confidentiality at least as stringent as those in this Agreement) or use it for
any purpose other than in connection with (A) the discovery, Development, Manufacture or Commercialization of Licensed Products
pursuant to this Agreement, including negotiations with potential Commercialization Partners, or (B) such Party’s financing
activities, corporate restructuring or sale, and (iii) exercise reasonable efforts to prevent and restrain the unauthorized
disclosure of such Confidential Information by any of its Agents, which reasonable efforts shall be at least as diligent as those
generally used by such Party in protecting its own confidential and proprietary information. Each Party will be responsible for
a breach of this Article VI by its Agents.

 

    	19

    	 

    

 

(b)              
Permitted Exceptions. Notwithstanding the provisions of Section 6.1(a) to the contrary, (i) TransTech
may disclose any Confidential Information of Novo that it deems reasonable or prudent in its sole discretion in order to obtain
Regulatory Approval in any jurisdiction, subject to permitting a reasonable period for the Parties to file patent applications
with respect to any invention to be publicly disclosed, (ii) TransTech may disclose any Confidential Information of Novo to
its Affiliates or any Third Party as it deems appropriate in its sole discretion in connection with the Development, Manufacture
or Commercialization of Licensed Products, subject to confidentiality agreements with such Affiliates or Third Parties that contain
conditions of confidentiality at least as stringent as those in this Agreement, (iii) either Party may disclose its own Confidential
Information in connection with any proposed scientific publication, subject to permitting a reasonable period for the Parties to
file patent applications with respect to any invention to be publicly disclosed, and (iv) either Party may disclose Confidential
Information of the other Party it has received to the extent such information is required to be disclosed by such Party to comply
with applicable Laws, to defend or prosecute litigation or to comply with the requirements of any stock exchange or market, provided
that the receiving Party promptly provides prior notice of such disclosure to the other Party and uses reasonable efforts
to avoid or minimize the degree of such disclosure.

 

6.2             
Confidential Information. “Confidential Information” means all trade secrets or other proprietary
information, including any proprietary data and materials (whether or not patentable or protectable as a trade secret), regarding
a Party’s or its licensor’s technology, products, business, financial status or prospects or objectives regarding the
Licensed Products, which is disclosed by a Party to the other Party. All information relating to or disclosed in connection with
the GK Activator Project and disclosed to the other Party prior to the Effective Date pursuant to the confidentiality provisions
of the Umbrella Agreement (including the GK Statement) and the financial terms set forth in Sections 4.1 and 4.2 of this Agreement
shall also be deemed “Confidential Information”. Notwithstanding the foregoing, there shall be excluded from the foregoing
definition of Confidential Information any of the foregoing that:

 

(a)               
either before or after the date of the disclosure to the receiving Party is lawfully disclosed to the receiving Party
by a Third Party without any violation of any obligation to the other Party;

 

(b)              
either before or after the date of the disclosure to the receiving Party, becomes published or generally known to
the public through no fault or omission on the part of the receiving Party or its Agents; or

 

    	20

    	 

    

 

(c)               
is independently developed by or for the receiving Party without reference to or reliance upon the Confidential Information
as demonstrated by contemporaneous written records of the receiving Party.

 

ARTICLE
VII

REPRESENTATIONS and WARRANTIES

 

7.1             
TransTech’s Representations. TransTech hereby represents and warrants as of the Effective Date as follows:

 

(a)               
TransTech has the corporate power and authority to execute and deliver this Agreement and to perform its obligations
hereunder. The execution, delivery and performance of this Agreement has been duly and validly authorized and approved by proper
corporate action on the part of TransTech. TransTech has taken all other action required by Law, its certificate of incorporation
or by-laws or any agreement to which it is a party or by which it or its assets are bound, to authorize such execution, delivery
and (subject to obtaining all necessary governmental approvals with respect to the discovery, Development, Manufacture or Commercialization
of Licensed Products) performance. Assuming due authorization, execution and delivery on the part of Novo, this Agreement constitutes
a legal, valid and binding obligation of TransTech, enforceable against TransTech in accordance with its terms.

 

(b)              
The execution and delivery of this Agreement by TransTech and the performance by TransTech contemplated hereunder
will not violate (subject to obtaining all necessary governmental approvals with respect to the discovery, Development, Manufacture
or Commercialization of Licensed Products) any United States Law or, to TransTech’s Knowledge, any Law of any Governmental
Authority outside the United States.

 

7.2             
Novo’s Representations.

 

(a)               
Novo hereby represents and warrants as of the Effective Date as follows:

 

(i)                
Novo has the corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder.
The execution, delivery and performance of this Agreement has been duly and validly authorized and approved by proper corporate
action on the part of Novo. Novo has taken all other action required by Law, its organizational documents or any agreement to which
it is a party or by which it or its assets are bound to authorize such execution, delivery and performance. Assuming due authorization,
execution and delivery on the part of TransTech, this Agreement constitutes a legal, valid and binding obligation of Novo, enforceable
against Novo in accordance with its terms.

 

(ii)              
The execution and delivery of this Agreement by Novo and the performance by Novo contemplated hereunder will not
violate any United States or Denmark Law or, to Novo’s Knowledge, any Law of any Governmental Authority outside the United
States and Denmark.

 

(iii)            
Exhibit A to this Agreement includes all patents and applications relating to the Compounds Controlled by
Novo as of the Effective Date.

 

    	21

    	 

    

(iv)            
To Novo’s Knowledge, no Person (other than Novo) has any right, interest or claim in or to, and neither Novo
nor any of its Affiliates has entered into any agreement granting any right, interest or claim in or to, the Novo Patent Rights
identified in Exhibit A or Novo Know-How, including any lien, encumbrance, charge, security interest, mortgage or similar
restriction.

 

(v)              
Novo shall diligently seek to ensure that, no later than six (6) months following the Effective Date, each Novo employee
or consultant who is an inventor of any invention claimed or that could be claimed in any Novo Patent Right identified in Exhibit
A (A) has executed a valid and binding agreement with Novo specific to each such Novo Patent Right expressly assigning to Novo
all of his or her right, title and interest to each such invention or (B) where such employee or consultant has refused to execute
a valid and binding agreement with Novo specific to each such Novo Patent Right expressly assigning to Novo his or her right, title
and interest in each such invention, that Novo has sought legal redress as permitted under the laws of the relevant jurisdiction
to compel the inventor to execute such assignment.

 

(vi)            
To Novo’s Knowledge, there is no actual or alleged infringement of any trademark, Patent Right or other intellectual
property right, or misappropriation of any trade secret, of any Person resulting from the Development, Manufacture or use of a
Licensed Product prior to the Effective Date.

 

(b)              
If, at any time, either Party shall learn that the representation set forth in Section 7.2(a)(iii) is inaccurate,
then, in addition to any other right or remedy that shall exist pursuant to applicable Law or the terms of this Agreement, the
Parties shall deem Exhibit A to be amended to include each patent or application rendering such representation inaccurate.
The Parties shall promptly execute any and all papers necessary or appropriate to effectuate the purpose of this Section 7.2(b).

 

(c)               
Upon TransTech’s reasonable request from time to time, Novo shall (i) record any documents necessary to evidence
its ownership interest in any Novo Patent Right and (ii) execute and file any notices and other filings with respect to the rights
granted to TransTech under this Agreement, in each case with the United States Patent and Trademark Office (or any successor agency)
or any analogous agency in the Territory.

 

7.3             
No Warranty. EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT, NEITHER PARTY MAKES ANY REPRESENTATION
OR WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING ANY REPRESENTATION OR WARRANTY CONCERNING WHETHER ANY LICENSED PRODUCT
IS FIT FOR ANY PARTICULAR PURPOSE OR SAFE FOR HUMAN CONSUMPTION.

 

ARTICLE
VIII

INDEMNIFICATION

 

8.1             
Indemnification in Favor of TransTech. Novo shall indemnify, defend and hold harmless the TransTech Parties
(as hereinafter defined) from and against any and all Losses incurred, suffered or sustained by any of the TransTech Parties or
to which any of the TransTech Parties becomes subject, arising out of, relating to or resulting from:

 

(a)               
any misrepresentation or breach of any representation, warranty, covenant or agreement made by Novo in this Agreement;
or

 

    	22

    	 

    

 

(b)              
any violation of the Act or any foreign similar Law by Novo; or

 

(c)               
any Third Party claim, action, suit, proceeding, liability or obligation (collectively, “Third-Party Claims”)
arising out of, relating to or resulting from:

 

(i)                
any misrepresentation or breach of any representation, warranty, covenant or agreement made by Novo in this Agreement;

 

(ii)              
the Development, Manufacture or use prior to the Effective Date of a Licensed Product, including all Third-Party
Claims involving death or bodily injury caused or allegedly caused by the use of a Licensed Product (any and all such Losses “Product
Liability”) prior to the Effective Date; or

 

(iii)            
the gross negligence or willful misconduct of any of the Novo Parties (as hereinafter defined) in connection with
Novo’s performance of this Agreement.

 

For purposes of this Article VIII, “TransTech
Parties” means TransTech, its Affiliates and their respective agents, directors, officers, employees and shareholders.

 

The indemnification obligations set forth
in this Section 8.1 shall not apply to the extent that any Loss is the result of a breach of this Agreement by TransTech or, with
respect to an individual indemnitee, the gross negligence or willful misconduct of such indemnitee.

 

8.2             
Indemnification in Favor of Novo. TransTech shall indemnify, defend and hold harmless the Novo Parties (as
hereinafter defined) from and against any and all Losses incurred, suffered or sustained by any of the Novo Parties or to which
any of the Novo Parties becomes subject, arising out of, relating to or resulting from:

 

(a)               
any misrepresentation or breach of any representation, warranty, covenant or agreement made by TransTech in this
Agreement; or

 

(b)              
any violation of the Act or any foreign similar Law by TransTech; or

 

(c)               
any Third-Party Claim arising out of, relating to or resulting from:

 

(i)                
any misrepresentation or breach of any representation, warranty, covenant or agreement made by TransTech in this
Agreement; or

 

(ii)              
the Development, Manufacture, use or Commercialization from and after the Effective Date of a Licensed Product, including
all Third Party Claims involving (A) Product Liability or (B) subject to Section 5.5, any actual or alleged infringement of
any trademark, Patent Right or other intellectual property right, or misappropriation of any trade secret, of any Person; or

 

    	23

    	 

    

 

(iii)            
the gross negligence or willful misconduct of any of the TransTech Parties in connection with TransTech’s performance
of its obligations under this Agreement.

 

For purposes of this Article VIII, “Novo
Parties” means Novo, its Affiliates and their respective agents, directors, officers, employees and shareholders.

 

The indemnification obligations set forth
in this Section 8.2 shall not apply to the extent that any Loss is the result of a breach of this Agreement by Novo or, with respect
to an individual indemnitee, the gross negligence or willful misconduct of such indemnitee.

 

8.3             
General Indemnification Procedures.

 

(a)               
A Party seeking indemnification pursuant to this Article VIII (an “Indemnified Party”) shall give
prompt notice to the Party from whom such indemnification is sought (the “Indemnifying Party”) of the commencement
or assertion of any Third-Party Claim (which in no event includes any claim by any Novo Party or any TransTech Party) in respect
of which indemnity may be sought hereunder, shall give the Indemnifying Party such information with respect to any indemnified
matter as the Indemnifying Party may reasonably request, and shall not make any admission concerning any Third-Party Claim, unless
such admission is required by applicable Law or legal process, including in response to questions presented in depositions or interrogatories.
Any admission made by the Indemnified Party or the failure to give such notice shall relieve the Indemnifying Party of any liability
hereunder only to the extent that the ability of the Indemnifying Party to defend such Third-Party Claim is prejudiced thereby
(and no admission required by applicable Law or legal process shall be deemed to result in prejudice). The Indemnifying Party shall
assume and conduct the defense of such Third-Party Claim, with counsel selected by the Indemnifying Party and reasonably acceptable
to the Indemnified Party. Subject to the initial and continuing satisfaction of the terms and conditions of this Article VIII,
the Indemnifying Party shall have full control of such Third-Party Claim, including settlement negotiations and any legal proceedings.
If the Indemnifying Party does not assume the defense of such Third-Party Claim in accordance with this Section 8.3, the Indemnified
Party may defend the Third-Party Claim. If both Parties are Indemnifying Parties with respect to the same Third-Party Claim, the
Parties shall determine by mutual agreement, within twenty (20) days following their receipt of notice of commencement or assertion
of such Third-Party Claim (or such lesser period of time as may be required to respond properly to such claim), which Party shall
assume the lead role in the defense thereof. Should the Parties be unable to mutually agree on which Party shall assume the lead
role in the defense of such Third-Party Claim, both Parties shall be entitled to participate in such defense through counsel of
their respective choosing.

 

(b)              
The Party not managing the defense of a Third-Party Claim shall have the right to participate in (but not control),
at its own expense (subject to the immediately succeeding sentence), the defense. The Indemnifying Party shall not be liable for
any litigation cost or expense incurred, without its consent, by the Indemnified Party where the action or proceeding is under
the control of the Indemnifying Party; provided, however, that if the Indemnifying Party fails to take reasonable
steps necessary to defend such Third-Party Claim, the Indemnified Party may assume its own defense, and the Indemnifying Party
will be liable for all reasonable costs or expenses paid or incurred in connection therewith.

 

    	24

    	 

    

 

(c)               
The Indemnifying Party shall not consent to a settlement of, or the entry of any judgment against the Indemnified
Party arising from, any Third-Party Claim to the extent such Third-Party Claim involves equitable or other non-monetary relief
from the Indemnified Party. No Party shall, without the prior written consent of the other Party, enter into any compromise or
settlement that commits the other Party to take, or to forbear to take, any action.

 

(d)              
The Parties shall cooperate in the defense or prosecution of any Third-Party Claim and shall furnish such records,
information and testimony, and attend such conferences, discovery proceedings, hearings, trials and appeals, as may be reasonably
requested in connection therewith.

 

(e)               
Any indemnification hereunder shall be made net of any insurance proceeds actually recovered by the Indemnified Party
from unaffiliated Third Parties; provided, however, that if, following the payment to the Indemnified Party of any
amount under this Article VIII, such Indemnified Party recovers any such insurance proceeds in respect of the claim for which such
indemnification payment was made, the Indemnified Party shall promptly pay an amount equal to the amount of such proceeds (but
not exceeding the amount of such net indemnification payment) to the Indemnifying Party.

 

(f)               
The Parties agree and acknowledge that the provisions of this Article VIII represent the Indemnified Party’s
exclusive recourse with respect to any Losses for which indemnification is provided to the Indemnified Party under this Article
VIII.

 

8.4             
Insurance. During the Term and for a period of five (5) years thereafter, TransTech shall obtain or maintain,
at its sole cost and expense, product liability insurance in amounts that are reasonable and customary in the pharmaceutical industry.
Such product liability insurance shall insure against all liability, including product liability and property damage arising out
of the Development, Manufacture, use or Commercialization of Licensed Products in the Territory. Without limiting the generality
of the foregoing, TransTech shall maintain comprehensive general liability insurance, including product liability insurance, to
cover its activities and, unless its Affiliates and Sublicensees maintain comparable coverage, the activities of its Affiliates
and Sublicensees, with respect to Licensed Products. TransTech will provide satisfactory evidence of adequate insurance coverage
to Novo upon the request of Novo.

 

ARTICLE
IX

TERM AND TERMINATION

 

9.1             
Term. The term of this Agreement (the “Term”) shall commence on the Effective Date and,
unless earlier terminated as provided in this Article IX, shall continue in full force and effect, on a country-by-country and
Licensed Product-by-Licensed Product basis until there is no remaining royalty with respect to such Licensed Product, at which
time this Agreement shall expire in its entirety with respect to such Licensed Product in such country. The Term shall expire on
the date this Agreement has expired with respect to all Licensed Products in all countries in the Territory, and from that time
forward TransTech shall have a fully paid-up license under the Novo Intellectual Property.

 

9.2             
Termination for Cause.

 

(a)               
In the event of a material breach of this Agreement by a Party, the other Party may give the Party in default written
notice requiring it to cure such default. If such material breach is not cured within sixty (60) days after receipt of such notice,
the notifying Party shall be entitled (without prejudice to its other rights under this Agreement or applicable Law) to terminate
this Agreement by giving written notice to the defaulting Party, with such termination to take effect immediately. The right of
either Party to terminate this Agreement as set forth in this Section 9.2 shall not be affected in any way by its waiver of, or
failure to take action with respect to, any previous default.

 

    	25

    	 

    

 

(b)              
In the event of a material breach of this Agreement by TransTech, each Commercialization Partner shall be permitted,
in all respects, the opportunity to cure any such material breach by TransTech within the cure period set forth in Section 9.2(a),
and Novo shall accept any such cure by any Commercialization Partner on TransTech’s behalf.

 

9.3             
Termination for Insolvency. This Agreement may be terminated by Novo upon written notice to TransTech
if (a) TransTech shall make an assignment for the benefit of its creditors, file a petition in bankruptcy, petition or apply to
any tribunal for the appointment of a custodian, receiver or trustee for it or a substantial part of its assets, or shall commence
any proceeding under any bankruptcy, reorganization, readjustment of debt, dissolution or liquidation Law of any jurisdiction,
whether now or hereafter in effect; or (b) if there shall have been filed against TransTech any such bona fide petition or application,
or any such proceeding shall have been commenced against it, in which an order for relief is entered or that remains undismissed
or unstayed for a period of ninety (90) days or more; or (c) if TransTech by any act or omission shall indicate its consent to,
approval of or acquiescence in any such petition, application or proceeding or order for relief or the appointment of a custodian,
receiver or trustee for it or any substantial part of its assets, or shall suffer any such custodianship, receivership or trusteeship
to continue undischarged or unstayed for a period of ninety (90) days or more. Termination shall be effective upon the date specified
in such notice.

 

9.4             
Termination for Patent Challenge. If, at any time during the Term, TransTech opposes, or assists any Third
Party to oppose, the grant of any letters patent within the Novo Patent Rights, or disputes, or assists any Third Party to dispute,
the validity of any patent within the Novo Patent Rights, or any of the claims thereof, Novo may, in its sole discretion, terminate
all or any portion of this Agreement, including the license granted under Section 2.1(b) hereof, upon thirty (30) days prior written
notice thereof to TransTech.

 

9.5             
Consequences of Terminations by the Parties.

 

(a)                If
this Agreement is terminated by Novo in accordance with Section 9.2, 9.3 or 9.4 hereof, any and all rights granted by Novo to
TransTech under this Agreement, including the license granted pursuant to Section 2.1(b) and the Novo Materials and data
related to the Novo Materials transferred to TransTech under Section 2.2(a), will automatically and immediately revert to
Novo, provided that Novo shall pay royalties to TransTech as set forth in Section 4.2 (with all references
therein, and in all defined terms used therein, to “Novo” replaced with “TransTech” and vice versa),
reduced by fifty percent (50%), provided further that Novo shall have no obligation to pay any royalty for
any Licensed Product in any country in the Territory (i) if TransTech’s breach has materially diminished the value of
the Novo Know-How that was embodied in such Licensed Product, (ii) in which TransTech’s breach has
materially diminished the value of the Novo Patent Rights that Covered such Licensed Product in such country or (iii) if the
Licensed Product is being sold by a Commercialization Partner who has been granted a license under 9.5(b) to Commercialize
such Licensed Product in such country. Consequently, TransTech will no longer be entitled to use or rely on any such rights,
data and/or Novo Materials, be it in whole or in part. For the avoidance of doubt, upon any termination by Novo in accordance
with Section 9.2, 9.3 or 9.4 hereof, Novo shall be entitled to retain any sum already paid by TransTech to Novo and
TransTech shall pay to Novo all milestones, royalties or other payments required by this Agreement and accrued prior to
such termination. Notwithstanding anything in this Section 9.5(a) to the contrary, if (A) if rights granted by Novo to
TransTech under this Agreement revert to Novo pursuant to this Section 9.5(a) and (B) it is necessary for Novo to obtain a
license under TransTech Patent Rights in order to Develop, Manufacture or Commercialize a Licensed Product that a
Commercialization Partner is not Manufacturing or Commercializing under a license granted pursuant to Section 9.5(b), then
TransTech shall grant to Novo a royalty-bearing license under such TransTech Patent Rights to Develop, Manufacture or
Commercialize such Licensed Product on financial terms to be negotiated in good faith by the Parties, provided that
if the Parties have not agreed on the financial terms of such license within one (1) month after any termination by Novo of
this Agreement in accordance with Section 9.2, 9.3 or 9.4 hereof, then TransTech and Novo shall retain three (3) mutually
acceptable, internationally recognized investment banking firms (the “9.5 Deciding Bankers”), which
9.5 Deciding Bankers shall each independently assess the facts and circumstances relating to the licensing of such
TransTech Patent Rights and recommend the financial terms relating to such license. Novo and TransTech will, following
the recommendations of the 9.5 Deciding Bankers, be bound to financial terms with respect to such TransTech Patent Rights
equal to the average of the financial terms recommended by the 9.5 Deciding Bankers.

 

    	26

    	 

    

 

(b)              
If at any time this Agreement terminates and, as a result of such termination, the rights and licenses granted by
Novo to TransTech under Article II terminate (the effective time of such terminations, the “Effective Time”),
Novo hereby grants to each Commercialization Partner all rights and licenses of a scope commensurate with the scope of the sublicense
granted by TransTech to such Commercialization Partner in accordance with this Agreement, effective as of the Effective Time, subject
to the same terms and conditions such rights and licenses were granted to TransTech under this Agreement immediately prior to the
Effective Time, without any need for further action by Novo or any Commercialization Partner (such grant by Novo to a Commercialization
Partner, the “Stand-by License Agreement”); provided that, as of such Effective Time, (i) the
Commercialization Partner is not in material default of its obligations under its sublicense agreement with TransTech and (ii)
such Commercialization Partner shall not have caused, in any direct and material way or in any indirect way involving knowing and
deliberate actions by such Commercialization Partner, any material default under this Agreement, including lack of commercially
reasonable best efforts under Section 3.2(a) by the Commercialization Partner, that is a basis for any such termination; provided
further that the Stand-by License Agreement shall terminate if (A) the basis for Novo’s termination of this
Agreement was a material breach by TransTech of TransTech’s payment obligations under Section 4.2 of this Agreement, (B)
at or after the Effective Time Novo gives such Commercialization Partner written notice of the portion of such overdue amounts
relating to Net Sales of Licensed Products in the portion of the Territory for which the Commercialization Partner has a license
to Commercialize Licensed Products under its sublicense with TransTech and (C) such Commercialization Partner fails to pay within
thirty (30) business days after such notice such portion of such overdue amounts owed by TransTech to Novo. Following the Effective
Time, each Commercialization Partner’s payment obligations under the Stand-by License Agreement shall be the same as TransTech’s
payment obligations would have been hereunder if this Agreement had remained in effect and TransTech’s activities hereunder
had been the same as those of such Commercialization Partner under the Stand-by License Agreement.

 

    	27

    	 

    

 

(c)               
If TransTech is entitled to terminate this Agreement in accordance with Section 9.2 hereof, TransTech may elect one
of the following options:

 

(i)                
TransTech may terminate this Agreement in its entirety and any and all rights granted by Novo to TransTech under
this Agreement, including the license granted pursuant to Section 2.1(b) and the Novo Materials and data related to the Novo Materials
transferred to TransTech under Section 2.2(a), will automatically and immediately revert to Novo; or

 

(ii)              
TransTech may terminate this Agreement in its entirety except that the rights and licenses granted by Novo to TransTech
under Article II shall survive, provided that TransTech (A) does not challenge the Novo Patent Rights for the term
of TransTech’s license to such Patent Rights and (B) continues to pay royalties as set forth in Section 4.2, reduced by fifty percent (50%), provided
further that TransTech shall have no obligation to pay any royalty for any Licensed Product in any country in the
Territory (1) if Novo’s breach has materially diminished the value of the Novo Know-How that was embodied in such Licensed
Product or (2) in which Novo’s breach has materially diminished the value of the Novo Patent Rights that Covered such Licensed
Product in such country.

 

9.6             
Effect of Termination or Expiration; Accrued Rights and Obligations. Termination or expiration of this Agreement
for any reason shall not release either Party from any liability that, at the time of such termination or expiration, has already
accrued or that is attributable to a period prior to such termination or expiration nor preclude either Party from pursuing any
right or remedy it may have hereunder or at Law or in equity with respect to any breach of this Agreement. It is understood and
agreed that monetary damages may not be a sufficient remedy for any breach of this Agreement and that the non-breaching Party may
be entitled to seek injunctive relief as a remedy for any such breach without the need to post bond or any other security.

 

9.7             
Survival. The rights and obligations set forth in this Agreement shall extend beyond the Term or termination
of this Agreement only to the extent expressly provided for in this Agreement or to the extent required to give effect to a termination
of this Agreement or the consequences of a termination of this Agreement as expressly provided for in this Agreement. Without limiting
the generality of the foregoing, it is agreed that the provisions of ARTICLE I (as applicable), Sections 2.1(a), 2.3, 4.4, 4.9,
4.10 and 5.1, ARTICLE VI, ARTICLE VII, ARTICLE VIII, Sections 9.5, 9.6 and 9.7, ARTICLE X and Sections 11.1, 11.2, 11.4, 11.5,
11.6, 11.7, 11.9, 11.13, 11.15, 11.16 and 11.17 shall survive expiration or termination of this Agreement for any reason.

 

    	28

    	 

    

 

ARTICLE
X

RELEASES OF BREACH ISSUE

 

10.1         
Grant of Release. Each Party (for purposes of this Article X, the “Releasor”), affirming
that it has all requisite legal capacity to give this release on behalf of itself and its Affiliates and the employees, agents,
principals, officers and directors of each of them (collectively, the “Releasing Group”), hereby releases and
holds harmless, now and forever, the other Party, its Affiliates and the employees, agents, principals, officers and directors
of each of them (collectively, the “Released Group”) from, and waives any claim that any Person in the Releasing
Group has presently, may have or have had in the past, known or unknown, against any Person in the Released Group in relation to
any matter arising from the Umbrella Agreement and the GK Statement upon or by reason of, any matter, cause or thing whatsoever
from the beginning of the world to the Effective Date, including any claim relating to or arising out of the Breach Issue or the
facts and circumstances giving rise to the Breach Issue. It is the intention of the Releasing Group that the foregoing release
shall be effective as a bar to all claims of whatever character, nature or kind, known or unknown, suspected or unsuspected, including
without limitation those relating to the Breach Issue.

 

10.2         
Sole Judgment. The Releasor represents and warrants that, in entering into the release set forth in Section
10.1, it has relied solely on its own judgment, belief and knowledge and has consulted or had the opportunity to consult its own
independent counsel concerning the nature, extent and duration of its rights and claims. Further, the Releasor has not been influenced
to any extent whatsoever in executing this Release by any representation or warranty made or allegedly made by the Released Group
concerning any matter relating to this Release, except the representations and warranties set forth in this Section 10.2.

 

10.3         
No Assignment. The Releasor represents and warrants that no one in the Releasing Group has assigned, transferred
or granted any claim, right, demand or cause of action intended to be released by this Release.

 

ARTICLE
XI

MISCELLANEOUS

 

11.1         
Governing Law. This Agreement shall be governed by and interpreted in accordance with the internal Laws of
the State of New York, USA, without regard to its conflicts of laws rules.

 

11.2         
Jurisdiction. Each Party (a) irrevocably submits to the exclusive jurisdiction in the United States District
Court for the Southern District of New York and any state court sitting in New York County, New York, USA (collectively, the “Courts”),
for purposes of any action, suit or other proceeding arising out of this Agreement, and (b) agrees not to raise any objection at
any time to the laying or maintaining of the venue of any such action, suit or proceeding in the Courts, irrevocably waives any
claim that such action, suit or other proceeding has been brought in an inconvenient forum and further irrevocably waives the right
to object, with respect to such action, suit or other proceeding, that such Courts do not have any jurisdiction over such Party.
Either Party may serve any process required by such Courts by way of notice under this Agreement.

 

    	29

    	 

    

 

11.3         
Waiver. Waiver by a Party of the other Party’s material breach of any provision of this Agreement shall
not be construed as a waiver of any succeeding breach of the same or any other provision. No delay or omission by a Party to exercise
or avail itself of any right, power or privilege that it has or may have under this Agreement shall operate as such Party’s
waiver of any right, power or privilege. No waiver shall be effective unless made in writing with specific reference to the relevant
provision(s) of this Agreement and signed by a duly authorized representative of the Party granting the waiver.

 

11.4         
Notices. All notices, instructions and other communications hereunder or in connection herewith shall be in
writing, shall be sent to the address specified in this Section 11.4 and shall be: (a) delivered personally; (b) sent by registered
or certified mail, return receipt requested, postage prepaid; (c) sent via a reputable international overnight courier service;
or (d) sent by facsimile transmission. Any such notice, instruction or communication shall be deemed to have been delivered
upon receipt if delivered by hand, three (3) Business Days after it is sent by registered or certified mail, return receipt requested,
postage prepaid, one (1) Business Day after it is sent via a reputable international overnight courier service, or when transmitted
with electronic confirmation of receipt, if transmitted by facsimile (if such transmission is on a Business Day; otherwise, on
the next Business Day following such transmission).

 

Notices to Novo shall be addressed to:

 

Novo Nordisk A/S

Novo Allé

DK-2880 Bagsvaerd

Denmark

Attention: Chief Science Officer

Facsimile: +45 4442 7280

with a copy to:

Novo Nordisk A/S

Novo Allé

DK-2880 Bagsvaerd

Denmark

Attention: General Counsel

Facsimile: +45 4442 4135

 

Notices to TransTech shall be addressed to:

 

TransTech Pharma, Inc.

4170 Mendenhall Oaks Parkway

High Point, NC 27265, USA

Attention: Chief Executive Officer

Facsimile: (336) 841-0333

with a copy to:

TransTech Pharma, Inc.

4170 Mendenhall Oaks Parkway

High Point, NC 27265, USA

Attention: Office of Senior Vice President – Legal Affairs

Facsimile: (336) 841-0333

 

Either Party may change its notice address by giving notice
to the other Party.

 

    	30

    	 

    

 

11.5         
Entire Agreement. This Agreement contains the complete understanding of the Parties with respect to the discovery,
Development, Manufacture, use and Commercialization of Licensed Products and supersedes all prior understandings and writings relating
to such subject matter, including the Umbrella Agreement and the GK Statement, which, together with that certain Confidential Disclosure
Agreement between Novo and TransTech dated January 31, 2007, and all provisions referenced in Sections 13.6.3, 13.6.4 and 13.6.5
of the Umbrella Agreement as surviving termination thereof, shall terminate as of the Effective Date and be of no further force
and effect. In particular, and without limitation, this Agreement supersedes and replaces any and all term sheets relating to the
transactions contemplated by this Agreement and exchanged between the Parties prior to the Effective Date.

 

11.6         
Headings. Headings in this Agreement are for convenience of reference only and shall not be considered in
construing this Agreement.

 

11.7         
Severability. If any provision of this Agreement is held unenforceable by a court or tribunal of competent
jurisdiction because it is invalid or conflicts with any Law of any relevant jurisdiction, the validity of the remaining provisions
shall not be affected. In such event, the Parties shall negotiate a substitute provision that, to the extent possible, accomplishes
the original business purpose.

 

11.8         
Registration and Filing of the Agreement. To the extent, if any, that a Party concludes in good faith that
it is required to file or register this Agreement or a notification thereof with any Governmental Authority, including the U.S.
Securities and Exchange Commission, in accordance with applicable Laws, such Party may do so. The other Party shall cooperate in
such filing or notification and shall execute all documents reasonably required in connection therewith. In such situation, the
Parties will request confidential treatment of sensitive provisions of this Agreement, to the extent permitted by Law. The Parties
shall promptly inform each other as to the activities or inquiries of any such Governmental Authority relating to this Agreement,
and shall cooperate to respond to any request for further information therefrom.

 

11.9         
Assignment. Either Party may assign its rights and obligations under this Agreement to any Affiliate, provided
such assigning Party continues to be fully liable for its Affiliate’s prompt fulfillment of any obligations so assigned.
Neither Party may assign this Agreement to any Third Party without the written consent of the other Party, which consent shall
not be unreasonably conditioned, delayed or withheld; except either Party may assign this Agreement, without such consent, to an
entity that acquires all or substantially all of its assets relating to the subject matter of this Agreement, whether by merger,
reorganization, acquisition, sale, or otherwise, always provided that the assignee successor shall not be entitled to exercise
any rights or receive any benefits under this Agreement until it has expressly assumed in writing to the other Party the performance
and observance of all the assigning Party’s duties and obligations as set forth in this Agreement. This Agreement shall be
binding upon and inure to the benefit of the Parties and their successors and permitted assigns. Any assignment in violation of
this Agreement shall be void and of no effect.

 

    	31

    	 

    

 

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

 

11.11     
Force Majeure. No Party shall be liable for failure of or delay in performing obligations set forth in this
Agreement, and no Party shall be deemed in breach of its obligations, if such failure or delay is due to a natural disaster or
any cause reasonably beyond the control of such Party.

 

11.12     
Press Releases and Other Disclosures. The Parties will cooperate in the distribution of the initial press
release relating to this Agreement set forth in Exhibit D to this Agreement. Except as expressly permitted under this Section
or required by Law, neither Party will make any public announcement of any information regarding this Agreement either directly
or indirectly, without first obtaining the written approval of the other Party; provided, however, that TransTech
may make a public announcement of or otherwise disclose the results of any clinical trial relating to Licensed Products without
first obtaining the written approval of Novo. Once any public statement or disclosure has been approved in accordance with this
Section, then either Party may appropriately communicate information contained in such permitted statement or disclosure. Notwithstanding
the foregoing provisions of this Section 11.12 or Article VI, a Party may disclose the existence and terms of the this Agreement
(a) where required, as reasonably determined by the disclosing Party, by applicable Law, by applicable stock exchange regulation
or by order or other ruling of a competent court or (b) under obligations of confidentiality as least as stringent as those
set forth in this Agreement, to agents, directors, officers, employees, consultants, contractors, licensees, partners, investors,
investors’ representatives, acquirers, acquirer’s representatives and advisors, and to potential agents, consultants,
contractors, licensees, partners, investors, investors’ representatives, acquirers, acquirer’s representatives and
advisors, in connection with (i) the discovery, Development, Manufacture or Commercialization of Licensed Products pursuant to
this Agreement, including negotiations with potential Commercialization Partners or (ii) such Party’s financing activities,
corporate restructuring or sale.

 

11.13     
Third-Party Beneficiaries. None of the provisions of this Agreement shall be for the benefit of or enforceable
by any Third Party other than an indemnitee under Article VIII. No such Third Party shall obtain any right under any provision
of this Agreement or shall by reason of any such provision make any claim in respect of any debt, liability or obligation (or otherwise)
against either Party.

 

11.14     
Relationship of the Parties. No employee or representative of a Party shall have any authority to bind or
obligate the other Party for any sum or in any manner whatsoever, or to create or impose any contractual or other liability on
the other Party, except as expressly set forth in Articles V and VIII. For all purposes, and notwithstanding any other provision
of this Agreement to the contrary, the legal relationship under this Agreement of each Party to the other Party shall be that of
independent contractor. Nothing in this Agreement shall be construed to establish a relationship of partners or joint venturers
between the Parties.

 

    	32

    	 

    

 

11.15     
Performance by Affiliates. To the extent that this Agreement imposes obligations on Affiliates of a Party,
such Party agrees to cause its Affiliates to perform such obligations.

 

11.16     
Construction. Each Party acknowledges that it has been advised by counsel during the course of negotiation
of this Agreement, and, therefore, that this Agreement shall be interpreted without regard to any presumption or rule requiring
construction against the Party causing this Agreement to be drafted. Any reference in this Agreement to an Article, Section, subsection,
paragraph or clause shall be deemed to be a reference to such Article, Section, subsection, paragraph or clause of or to, as the
case may be, this Agreement. Except where the context otherwise requires, (a) wherever used, the use of any gender will be applicable
to all genders, (b) the word “or” is used in the inclusive sense (and/or), (c) any definition of or reference to any
agreement, instrument or other document refers to such agreement, instrument other document as from time to time amended, supplemented
or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein or therein),
(d) any reference to any Laws refers to such Laws as from time to time enacted, repealed or amended, (e) the words “herein”,
“hereof” and hereunder”, and words of similar import, refer to this Agreement in its entirety and not to any
particular provision hereof, (f) the words “include”, “includes” and “including” shall be deemed
to be followed by the phrase “but not limited to”, “without limitation” or words of similar import.

 

11.17     
No Consequential or Punitive Damages. NEITHER PARTY HERETO WILL BE LIABLE FOR INDIRECT, INCIDENTAL, CONSEQUENTIAL,
SPECIAL, EXEMPLARY OR PUNITIVE DAMAGES, INCLUDING LOST PROFITS, ARISING FROM OR RELATING TO THIS AGREEMENT, REGARDLESS OF ANY NOTICE
OF SUCH DAMAGES. NOTHING IN THIS SECTION 11.17 IS INTENDED TO LIMIT OR RESTRICT THE INDEMNIFICATION RIGHTS OR OBLIGATIONS OF EITHER
PARTY UNDER THIS AGREEMENT WITH RESPECT TO THIRD-PARTY CLAIMS, OR WITH RESPECT TO THE INFRINGEMENT OR MISAPPROPRIATION OF THE OTHER
PARTY’S INTELLECTUAL PROPERTY RIGHTS OR CONFIDENTIAL INFORMATION.

 

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

 

	NOVO NORDISK A/S	 	TRANSTECH PHARMA, INC.
	 	 	 	 	 
	By:  	/s/ Mads Krogsgaard Thomsen	 	By:  	/s/ Adnan Mjalli
	Name:   	Mads Krogsgaard Thomsen	 	Name:   	Adnan Mjalli
	Title:  	Executive Vice President, CSO	 	Title:  	President, CEO

 

    	33

    	 

    

 

EXHIBIT A

 

	NN Case Ref.	Country Code	App. No.	Earliest Priority Date	Filing Date	Pub. No.	Inventor(s)	Assignees	Title of App.	STATUS
	6449	US	60/386,185	-	12/21/01	-	 	 	 	
        Abandoned 

        12/21/02 

	6449	EP	2002388015.6	-	02/19/02	1336607	 	 	 	
        Withdrawn 

        09/24/04 

	6449	PCT	PCT/DK02/00880	12/21/01	12/19/02	WO 03/055482	
        Andrews, R.C. 

        Guzel, M. 

        Kodra, J.T. 

        Lau, J. 

        Mjalli, A.M.M. 

        Polisetti, D.R. 

        Santhosh, K.C. 
	 	Amide Derivatives GK Activators	Entered National Phase
	6449	AU	 	 	12/19/02	2002351748	 	 	 	Active
	6449	BR	 	 	12/19/02	200215212	 	 	 	Active
	6449	CA	2471049	 	12/19/02	 	 	 	 	Active
	6449	CN	02827501.2	 	12/19/02	 	 	 	 	Active
	6449	CZ	 	 	12/19/02	200400747	 	 	 	Active
	6449	EPO	02787463.5	 	12/19/02	1458382	 	 	 	Active
	6449	HU	 	 	12/19/02	200402309	 	 	 	Active
	6449	IL	162620	 	12/19/02	 	 	 	 	Active
	6449	IN	 	 	12/19/02	200401371	 	 	 	Active
	6449	JP	2003556060	 	12/19/02	2005518391	 	 	 	Active
	6449	KR(South)	 	 	12/19/02	2004-7009841	 	 	 	Active
	6449	MX	 	 	12/19/02	2004006048	 	 	 	Active
	6449	NO	 	 	12/19/02	200403116	 	 	 	Active
	6449	PL	370989	 	12/19/02	 	 	 	 	Active
	6449	RU	 	 	12/19/02	2004122407	 	 	 	Active
	6449	TW	92100480	 	12/19/02	200303207	 	 	 	Active
	6449	UA	 	 	12/19/02	20040604430	 	 	 	Active
	6449	US	10/323,290	 	12/19/02	20030171411	 	Novo Nordisk A/S	 	Active
	6449	ZA	 	 	12/19/02	20044521	 	 	 	Active
	6511	DK	2003 00286	-	02/25/03	 	 	 	 	
	6511	US	60/394,144	-	07/03/02	 	 	 	 	
        Abandoned 

        07/03/03 

	6511	DK	2002 00999	-	06/27/02	 	 	 	 	

 

    	 

    	 

    

 

EXHIBIT A (cont’d)

 

	NN Case Ref.	Country Code	App. No.	Earliest Priority Date	Filing Date	Pub. No.	Inventor(s)	Assignees	Title of App.	STATUS
	6511	US	60/452,228	-	03/05/03	 	 	 	 	
        Abandoned 

        03/05/04 

	6511	PCT	PCT/DK03/00449	6/27/02	6/27/03	WO 04/002481	
        Andrews R.C. 

        Ankersen M. 

        Bloch P. 

        Blume N. 

        Guzel M. 

        Jeppesen L. 

        Kodra J.T. 

        Lau J. 

        Mjalli A.M.M. 

        Murray A.N. 

        Polisetti D.R. 

        Santhosh K.C. 

        Subramaniam G. 

        Valcarce-Lopez M.C. 

        Vedso P. 
	 	Aryl Carbonyl Derivatives as Therapeutic Agents	Entered National Phase
	6511	AU	 	 	6/27/03	2003243921	 	 	 	Active
	6511	BR	 	 	6/27/03	200312023	 	 	 	Active
	6511	CA	2488642	 	6/27/03	 	 	 	 	Active
	6511	CN	03820170.4	 	6/27/03	1678311	 	 	 	Active
	6511	EP	03761446.8	 	6/27/03	1531815	 	 	 	Active
	6511	IL	165532	 	6/27/03	 	 	 	 	Active
	6511	IN	 	 	6/27/03	200402911	 	 	 	Active
	6511	JP	2004548878	 	6/27/03	2005537333	 	 	 	Active
	6511	KR(South)	20047021359	 	6/27/03	2005019801	 	 	 	Active
	6511	MX	 	 	6/27/03	2005000130	 	 	 	Active
	6511	NO	 	 	6/27/03	200500426	 	 	 	Active
	6511	PL	374920	 	6/27/03	 	 	 	 	Active
	6511	RU	 	 	6/27/03	2005101880	 	 	 	Active
	6511	US	11/365,534	 	6/27/03	20060183783	 	No Assignment Recorded	 	Active
	6511	US	10/679,887	 	6/27/03	20040122235	 	Novo Nordisk A/S	 	Allowance Pending
	6511	ZA	 	 	 	200500766	 	 	 	Active
	6694	EP	2003388079.0	 	 	1532980	 	 	 	
        Withdrawn

         07/13/06 

 

    	A-2

    	 

    

 

EXHIBIT A (cont’d)

 

	NN Case Ref.	Country Code	App. No.	Earliest Priority Date	Filing Date	Pub. No.	Inventor(s)	Assignees	Title of App.	STATUS
	6694	PCT	 	1/24/03	11/24/04	WO 05/049019	
        Andrews R.C. 

        Ankersen M. 

        Christen D.P. 

        Jeppesen L. 

        Kodra J.T. 

        Lau J.F. 

        Mjalli A.M.M. 

        Murray A. 

        Polisetti D.R. Subramanian G. 

        Vedso P. 
	 	N-Heteroaryl Indole Carboxamides and Analogues Thereof, for use as Glucokinase Activators in the Treatment of Diabetes	Entered National Phase
	6694	EP	04797475.3	 	11/24/04	1689392	 	 	 	Active 
	6694	JP	 	 	11/24/04	2006540176	 	 	 	Active 
	6694	US	11/439,820	 	11/24/04	20070027140	 	Novo Nordisk A/S	 	Active
	6808	DK	2004 00013	 	 	 	 	 	 	 
	6808	DK	2004 01272	 	 	 	 	 	 	 
	6808	DK	2004 01897	 	 	 	 	 	 	 
	6808	PCT	PCT/DK05/00002	1/6/04	1/6/05	WO 05/066145	
        Andrews R.C. 

        Ankersen M. 

        Christen D.P. 

        Cooper J.T. 

        Jeppesen L. 

        Kristiansen M. 

        Lau J. 

        Lundbeck J.M. 

        Murray A. 

        Polisetti D.R. Santhosh K.C. Subramanian G. 

        Valcarce-Lopez M.C. 

        Vedso P. 
	 	Heteroaryl-Ureas and Their Use as Glucokinase Activators	Entered National Phase
	6808	AU	 	 	1/6/05	2005203930	 	 	 	Active
	6808	BR	PI05066662-0	 	1/6/05	 	 	 	 	Active
	6808	CA	2551324	 	1/6/05	 	 	 	 	Active
	6808	CN	200580002021.6	 	1/6/05	 	 	 	 	Active
	6808	EP	05700554.8	 	1/6/05	1723128	 	 	 	Active
	6808	IL	176257	 	1/6/05	 	 	 	 	Active
	6808	IN	3624/DELNP/2006	 	1/6/05	 	 	 	 	Active
	6808	JP	 	 	1/6/05	2006548114	 	 	 	Active
	6808	KR(South)	10-2006-7013454	 	1/6/05	 	 	 	 	Active
	6808	MX	PA/a/2006/00766	 	1/6/05	 	 	 	 	Active
	6808	NO	 	 	1/6/05	200603351	 	 	 	Active
	6808	RU	 	 	1/6/05	2006122209	 	 	 	Active

 

    	A-3

    	 

    

 

EXHIBIT A (cont’d)

 

	NN Case Ref.	Country Code	App. No.	Earliest Priority Date	Filing Date	Pub. No.	Inventor(s)	Assignees	Title of App.	STATUS
	6808	US	11/453,330	 	1/6/05	 	 	 	 	Active
	6808	ZA	 	 	1/6/05	200605467	 	 	 	Active
	6833	DK	2004939A20040617	 	 	 	 	 	 	 
	6833	PCT	 	6/17/04	 	WO 05/123132	
        Arkhammar P.O.G. 

        Boedvarsdottir T.B. 

        Fosgerau K. 

        Larsen M.O. 

        Varcarce-Lopez C. 

        Wahl P. 
	 	Use of Liver Selective Glucose Activators	 
	6833	EP	 	 	6/17/05	 	 	 	 	Active
	6833	JP	 	 	6/17/05	 	 	 	 	Active
	6833	US	11/629,711	 	6/17/05	 	 	 	 	Active
	6937	DK	2004 01888	 	 	 	 	 	 	 
	6937	PCT	 	12/3/04	12/5/05	WO 06/058923	
        Jeppesen L. 

        Kristiansen M. 
	 	Heteroaromatic Glucose Activators	Active
	7112	PCT	2006/064289	7/14/05	7/14/06	 		 	Urea Glucokinase Activators	Active
	7127	US	60/800,354	-	4/28/06	 	 	 	Benzamide Glucokinase Activators	Active
	7208	PCT	PCT/EP06/064028	
        7/8/05

         
	7/07/06	 	 	 	Dicycloalkylcarbamoyl Ureas as Glucokinase Activators	Active
	7209	US	60/737,143	-	11/16/05	 	 	 	 	
        Abandoned 

        11/16/06 

	7209	EP	
        05110779.5

         
	 	11/16/05	 	 	 	 	Active
	7209	PCT	PCT/EP06/064026	7/8/05	7/7/06	 	 	 	Dicycloalkyl Urea Glucokinase Activators	Active
	7385	US	60/800,574	-	5/15/06	 	 	 	Benzamide Glucokinase Activators	Active 
	7385	US	60/813,858	-	6/15/06	 	 	 	 	Active
	7562	US	60/879,683	-	1/10/07	 	 	 	Urea Glucokinase Activators	Active
	7562	EP	07100275.2	1/9/07	1/9/07	 	 	 	 	Active
	7563	US	60/879,961	-	1/11/07	 	 	 	Urea Glucokinase Activators	Active 
	7563	EP	07100406.3	1/11/07	1/11/07	 	 	 	 	Active

 

    	 

    	 

    

 

[***]

 

    	 

    	 

    

 

[***]

 

    	 

    	 

    

 

APPENDIX D

 

PRESS RELEASE

 

 

Press Release DRAFT 

 

	20 February 2007 	DRAFT 2 / 

 

 

 

TransTech Pharma, Inc. Obtains
Exclusive License to Glucokinase Activator Programme for the Treatment of Diabetes from Novo Nordisk

 

Bagsværd, Denmark; High Point, NC – Novo
Nordisk A/S and TransTech Pharma, Inc. announced today an agreement whereby TransTech has obtained an exclusive license from Novo
Nordisk to its clinical glucokinase activator (GKA) programme. Tests in a variety of mammalian species suggest that glucokinase
activators can help people with diabetes control their glucose levels. Under the terms of the agreement, TransTech will obtain
all rights worldwide to Novo Nordisk’s GKA programme including preclinical and clinical compounds, the latter with human
data.

 

On 15 January, Novo Nordisk announced a decision to focus all
its research and development resources on the company’s growing pipeline of protein-based pharmaceuticals. As a result of
this decision the company said it would out-license existing preclinical and clinical small-molecule projects, including its GKA
programme which is currently in clinical testing.

 

The drug candidates licensed by TransTech are novel, orally
administered compounds discovered during a strategic research collaboration initiated in 2001 between TransTech and Novo Nordisk
utilising TransTech’s proprietary small-molecule discovery engine, TTP Translational TechnologyÒ.

 

Novo Nordisk A/S                                   Novo Allé             Telephone:             Internet:                     CVR
no:

Corporate Communications                   2880 Bagsværd     +45 4444
8888        novonordisk.com     24256790

                                                                    DenmarkTelefax:

                                                                    +45 4444 2314

 

 

    	 

    	 

    

 

 

Adnan Mjalli, PhD, Founder, chairman and chief executive officer
of TTP, said, “The promise of glucokinase activators to transform diabetes therapy is enormous. We are excited to obtain
all the rights to these drug candidates, which we jointly discovered with Novo Nordisk, a recognised worldwide leader in diabetes
therapies. The addition of the glucokinase activator programme will greatly enhance our existing diabetes and obesity portfolio
and allow TransTech to become a world leader in the discovery and development of novel treatments for diabetes and obesity –
a key therapeutic focus of the company. Our current diabetes and obesity portfolio includes orally administered and novel therapeutic
development candidates targeting PTP1b inhibitors, AgRP inhibitors, GLP1R agonists and AMPK activators.”

 

Mads Krogsgaard Thomsen, executive vice president and chief
science officer of Novo Nordisk, said: “We are very pleased that it has been possible to reach an agreement with TransTech
in such short time. They have been our partners in the GKA programme all along, and they have the capabilities to take on the further
development. This allows us to focus our R&D on therapeutic proteins which is where we have our core competences, while keeping
a financial stake in the GKA programme.”

 

TransTech will make an up-front payment to Novo Nordisk for
the licensed rights, and has also committed to additional payments as development milestones are reached, as well as royalties
on commercial product sales. The parties have agreed not to disclose further terms of the agreement.

 

About TransTech Pharma, Inc. 

TransTech Pharma is a privately held clinical-stage pharmaceutical
company working on the discovery, development, and commercialization of human therapeutics to fill unmet medical needs. The Company’s
high-throughput drug discovery platform, TTP Translational Technology®, translates the functional modulation of human proteins
into safe and effective medicines. TransTech has a pipeline of small-molecule clinical and pre-clinical drug candidates for the
treatment of a wide range of human diseases, including central nervous system disorders, type I/II diabetes, obesity, cardiovascular
and cancer. For further company information, visit http://www.ttpharma.com.

 

About Novo Nordisk 

Novo Nordisk is a healthcare company and a world leader
in diabetes care. The company has the broadest diabetes product portfolio in the industry, including the most advanced products
within the area of insulin delivery systems. In addition, Novo Nordisk has a leading position within areas such as haemostasis
management, growth hormone therapy and hormone replacement therapy. Novo Nordisk manufactures and markets pharmaceutical products
and services that make a significant difference to patients, the medical profession and society. With headquarters in Denmark,
Novo Nordisk employs more than 23,600 employees in 79 countries, and markets its products in 179 countries. Novo Nordisk’s
B shares are listed on the stock exchanges in Copenhagen and London. Its ADRs are listed on the New York Stock Exchange under the
symbol ‘NVO’. For more information, visit novonordisk.com.

 

For further information contact:

 

TransTech Pharma Inc.

 

Stephen L. Holcombe

Senior Vice President and Chief Financial Officer

Tel: (+1) 336-841-0300 ext 150

sholcombe@ttpharma.com

 

    	D-2

    	 

    

 

Novo Nordisk

 

	Media:	Investors:
	 	 
	
        Mike Rulis 

        Tel: (+45) 4442 3573 

        mike@novonordisk.com
	
        Mads Veggerby Lausten 

        Tel: (+45) 4443 7919 

        mlau@novonordisk.com 

	 	 
	 	
        Hans Rommer 

        Tel: (+45) 4442 4765 

        hrmm@novonordisk.com 

	 	 
	In North America:	In North America:
	
        Susan T Jackson 

        Tel: (+1) 609 919 7776 

        stja@novonordisk.com 
	
        Christian Qvist Frandsen 

        Tel: (+1) 609 919 7937 

        cqfr@novonordisk.com

 

    	D-3

    	 

    

 

 

For Immediate Release

 

 

TransTech Pharma, Inc. Obtains
Exclusive License to Glucokinase Activator Program for the Treatment of Diabetes from Novo Nordisk

 

High Point, NC; Bagsvaerd, Denmark - February 20, 2007
- TransTech Pharma and Novo Nordisk A/S announced today an agreement whereby TransTech has obtained an exclusive license from Novo
Nordisk to its clinical glucokinase activator (GKA) program. Tests in a variety of mammalian species suggest that glucokinase activators
can help people with diabetes control their glucose levels. Under the terms of the agreement, TransTech will obtain all rights
worldwide to Novo Nordisk’s GKA program including preclinical and clinical compounds, the latter with human data.

 

On 15 January, Novo Nordisk announced a decision to focus all
its research and development resources on the company’s growing pipeline of protein-based pharmaceuticals. As a result of
this decision the company said it would out-license existing preclinical and clinical small-molecule projects, including its GKA
program which is currently in clinical testing.

 

The drug candidates licensed by TransTech are novel, orally
administered compounds discovered during a strategic research collaboration initiated in 2001 between TransTech and Novo Nordisk
utilizing TransTech’s proprietary small-molecule discovery engine, TTP Translational TechnologyÒ.

 

Adnan Mjalli, PhD, founder, chairman and chief executive officer
of TTP, said, “The promise of glucokinase activators to transform diabetes therapy is enormous. We are excited to obtain
all the rights to these drug candidates, which we jointly discovered with Novo Nordisk, a recognized worldwide leader in diabetes
therapies. The addition of the glucokinase activator program will greatly enhance our existing diabetes and obesity portfolio and
allow TransTech to become a world leader in the discovery and development of novel treatments for diabetes and obesity –
a key therapeutic focus of the company. Our current diabetes and obesity portfolio includes orally administered and novel therapeutic
development candidates targeting PTP1b inhibitors, AgRP inhibitors, GLP1R agonists and AMPK activators.”

 

Mads Krogsgaard Thomsen, executive vice president and chief
science officer of Novo Nordisk, said: “We are very pleased that it has been possible to reach an agreement with TransTech
in such short time. They have been our partners in the GKA program all along, and they have the capabilities to take on the further
development. This allows us to focus our R&D on therapeutic proteins which is where we have our core competences, while keeping
a financial stake in the GKA program.”

 

    	D-4

    	 

    

 

TransTech will make an up-front payment to Novo Nordisk for
the licensed rights, and has also committed to additional payments as development milestones are reached, as well as royalties
on commercial product sales. The parties have agreed not to disclose further terms of the agreement.

 

About TransTech Pharma, Inc.

 

TransTech Pharma is a privately held clinical-stage pharmaceutical
company working on the discovery, development, and commercialization of human therapeutics to fill unmet medical needs. The Company’s
high-throughput drug discovery platform, TTP Translational Technology®, translates the functional modulation of human proteins
into safe and effective medicines. TransTech has a pipeline of small-molecule clinical and pre-clinical drug candidates for the
treatment of a wide range of human diseases, including central nervous system disorders, type I/II diabetes, obesity, cardiovascular
and cancer. For further company information, visit http://www.ttpharma.com.

 

About Novo Nordisk

 

Novo
Nordisk is a healthcare company and a world leader in diabetes care. The company has the broadest diabetes product portfolio in
the industry, including the most advanced products within the area of insulin delivery systems. In addition, Novo Nordisk has a
leading position within areas such as haemostasis management, growth hormone therapy and hormone replacement therapy. Novo Nordisk
manufactures and markets pharmaceutical products and services that make a significant difference to patients, the medical profession
and society. With headquarters in Denmark, Novo Nordisk employs more than 23,600 employees in 79 countries, and markets its products
in 179 countries. Novo Nordisk’s B shares are listed on the stock exchanges in Copenhagen and London. Its ADRs are listed
on the New York Stock Exchange under the symbol ‘NVO’. For more information, visit novonordisk.com.

 

For further information contact:

 

TransTech Pharma, Inc.

 

Stephen L. Holcombe

Senior Vice President and Chief Financial Officer

Tel: 336-841-0300 ext 150

sholcombe@ttpharma.com

 

Novo Nordisk

 

	
        Media:

         
	Investors:
	
        Mike Rulis 

        Tel: (+45) 4442 3573 

        mike@novonordisk.com
	
        Mads Veggerby Lausten 

        Tel: (+45) 4443 7919 

        mlau@novonordisk.com

	 	 
	 	
        Hans Rommer

        Tel: (+45) 4442 4765 

        hrmm@novonordisk.com

	 	 
	In North America:	In North America:
	
        Susan T Jackson 

        Tel: (+1) 609 919 7776 

        stja@novonordisk.com
	
        Christian Qvist Frandsen 

        Tel: (+1) 609 919 7937 

        cqfr@novonordisk.com

 

    	D-5

    	 

    

 

[***]

 

 

    	 

    	 

    

 

EXHIBIT F

 

Samples of Licensed Products and Compounds

 

TransTech shall pay to Novo [***] as consideration for receipt
from Novo of the following amounts of Licensed Products and Compounds pursuant to Section 2.2(a). TransTech shall provide Novo
with the address of, and Novo shall ship all Licensed Products and Compounds produced according to Good Manufacturing Practices
to, a Good Manufacturing Practices facility.

 

NN9101

 

		·	NN9101 not produced according to Good Manufacturing Practices: [***]

 

		·	NN9101 not produced according to Good Manufacturing Practices: [***]

 

		·	NN9101 produced according to Good Manufacturing Practices: [***]

 

		·	NN9101 produced according to Good Manufacturing Practices: [***]

 

		·	NN9101 released for Good Manufacturing Practices: [***]

 

NN9108

 

		·	NN9108 produced according to Good Manufacturing Practices: [***]

 

		·	NN9108 ordered key starting materials A and B for [***] API - Good Manufacturing Practices batch: [***]

 

NN9139

 

		·	NN9139 released for Good Manufacturing Practices: [***]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00246-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00246-of-00352.parquet"}]]