Document:

Exhibit 10.3

 

LEASE

 

THIS LEASE is made between the Landlord and Tenant hereinafter identified in Paragraph 1(b) and 1(c) hereof, respectively, and constitutes a Lease between the parties for the “Demised Premises” in the “Building” as defined in Paragraph 2 hereof on the terms and conditions and with and subject to the covenants and agreements of the parties hereinafter set forth.

 

WITNESSETH:

 

BASE LEASE PROVISIONS

 

1.                                      The following are certain lease provisions, which are part of, and in certain instances referred to in subsequent provisions of this Lease.

 

(a)                                 Date of Lease: September    , 2013

 

(b)                                 Landlord: Merrill Street Investments LLC, 320 Martin St, Suite #100, Birmingham, Michigan 48009

 

(c)                                  Tenant: Conifer Holdings, Inc., a Michigan Corporation

 

Guarantor: None

 

Demised Premises:

 

550 Merrill Street, Suite # 100, Birmingham, Michigan 48009

 

Usable Sq.Ft. 11,598

 

Rentable Sq.Ft. 14,266

 

(d)                                 Commencement Date: 30 days after Substantial Completion.

 

(e)                                  Expiration Date: 125 full months after Commencement Date.

 

(f)                                   Milestones:

 

Building Permit Application by May 31, 2013

 

Existing Tenant vacates by June 30, 2013

 

Interior Demolition complete by August 1, 2013

 

Building Permit issued by August 1, 2013

 

Architect Certificate of Status to Tenant (confirming the percentage of completion of the Leased Premises, Building and Common Areas, and that based upon the current construction schedule such areas will be complete

 

	
Landlord
    	
 
    	
 
    	
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on or before June 1, 2014) approximately 90 days prior to Substantial Completion, but not later than February 28, 2014.

 

(g)                                  Minimum Annual Rent:

 

	
 
    	
 
    	
 
    	
 
    	
 
    	
Monthly
    	
 
    
	
 
    	
Year 1
    	
 
    	
$
    	
425,840.10
    	
 
    	
$
    	
35,486.68
    	
 
    
	
 
    	
Year 2
    	
 
    	
$
    	
430,119.90
    	
 
    	
$
    	
35,843.33
    	
 
    
	
 
    	
Year 3
    	
 
    	
$
    	
434.399.70
    	
 
    	
$
    	
36,199.98
    	
 
    
	
 
    	
Year 4
    	
 
    	
$
    	
438,679.50
    	
 
    	
$
    	
36,556.63
    	
 
    
	
 
    	
Year 5
    	
 
    	
$
    	
442.959.30
    	
 
    	
$
    	
36,913.28
    	
 
    
	
 
    	
Year 6
    	
 
    	
$
    	
451,518.90
    	
 
    	
$
    	
37,626.58
    	
 
    
	
 
    	
Year 7
    	
 
    	
$
    	
460,078.50
    	
 
    	
$
    	
38,339.88
    	
 
    
	
 
    	
Year 8
    	
 
    	
$
    	
468,638.10
    	
 
    	
$
    	
39,053.18
    	
 
    
	
 
    	
Year 9
    	
 
    	
$
    	
477,197.70
    	
 
    	
$
    	
39,766.48
    	
 
    
	
 
    	
Year 10
    	
 
    	
$
    	
485,757.30
    	
 
    	
$
    	
40,479.78
    	
 
    

 

Year 11 (5 months) $205,965.38 Monthly $41,193.08

 

(h)                                 Substantial Completion:                                                            the date on which the last of the following have occurred: (i) issuance of temporary certificate of occupancy or its equal, provided that the only work to be completed or corrected by Landlord in order to obtain the full certificate of occupancy does not (and the work itself will not) materially interfere with the use of the Demised Premises by Tenant; (ii) Landlord delivers possession of the Demised Premises to Tenant in the condition required under this Lease; and (iii) ten ( 10) days after Landlord provides written notice to Tenant that the Demised Premises are substantially complete and available for inspection and Tenant provides a punch list to Landlord confirming that the only work remaining to be completed or corrected by Landlord is not likely to interfere with Tenant’s use of the Demised Premises (provided that Tenant must provide the punch list to Landlord within seven (7) days after receipt of notice of substantial completion under this subsection (iii)).

 

(i)                                     Tenant Share:                                                                                                                   47.7% Ratio of Operating Expenses.

 

(j)                                    Tenant’s Address for Notices:

 

Prior to the Commencement Date:

 

26300 Northwestern Highway

Suite 410

Southfield, MI 48076

Attn: Brian Roney

 

	
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After the Commencement Date:

 

550 Merrill Street

Suite # 100

Birmingham, MI 48009

Attn: Brian Roney

 

With a copy to:

 

Thomas W. Forster II

Honigman Miller Schwartz and Cohn LLP

39400 Woodward Avenue, Suite 101

Bloomfield Hills, MI 48304

 

(k)                                 Landlord’s Address for Notices:

 

Merrill Street Investments, LLC

320 Martin Street

Suite #100

Birmingham, MI 48009

 

(l)                                     Security Deposit: $ None

 

(m)                             The first two month’s rent is due upon full execution of this Lease.

 

(n)                                 Use: General insurance office and related or ancillary uses.  Landlord will not lease space in the building to any person or entity whose primary business is insurance.  If Landlord violates this provision, Tenant shall have the right to abate 50% of Minimum Annual Rent until cured.

 

DEMISED PREMISES

 

2.                                      (a)                                 Landlord, in consideration of the rents to be paid and the covenants and agreements to be performed by Tenant, does hereby lease unto Tenant premises situated in the City of Birmingham, County of Oakland and State of Michigan, described in Paragraph 1(d) hereof, in that certain office building, the address of which is 550 Merrill Street, (hereinafter referred to as the “Building”,) as shown on the floor plan, Exhibit “A” hereto, (hereinafter referred to as the “Demised Premises”), together with the non-exclusive right and easement to use the parking and common facilities which may from time to time be furnished by Landlord in common with Landlord and the Tenants and occupants (their agents, employees, customers and invitees) of the Building.  Landlord reserves the right to designate certain parking areas for the exclusive use of designated Tenants other than the spaces specifically reserved to Tenant under this Lease.  Landlord may name the Building and change the name of the Building, and will not be responsible for costs or damages, if any, claimed by Tenant as a consequence thereof; provided that the Building shall not be named after any tenant other than Tenant and Landlord provides Tenant with at least 30 days prior written notice.  After Tenant has taken occupancy of the Demised Premises, it shall have right of first refusal (RFR) on any other space for lease

 

	
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within the Building provided that Tenant’s RFR with respect to the lower level of the Building is subject to the RFR of Kostopoulos Law Group so long as such other tenant has the RFR on such space.  Tenant will have ten (10) business days after receipt of written notification from Landlord, that any vacant space within the Building is offered for lease (including with such notice the terms and conditions of the proposed lease) to enter into a lease agreement for the vacant space under the same terms and conditions set forth herein.  The terms and conditions of this RFR shall be the lower of Tenant’s terms under this Lease (including all allowances, buildout requirements, concessions, etc.) or the interested party’s offer to lease.

 

(b)                                 Landlord shall renovate/build out the Demised Premises in accordance with the provisions of Exhibit “B” hereto on or before June 1, 2014 and in any event achieving all Milestones by the dates required.  If Landlord fails to meet a Milestone when required, Tenant shall have the right to send notice of default to Landlord and Landlord shall have thirty days thereafter within which to achieve the Milestone, failing which Tenant shall have the right to receive a per day credit toward Rent equal to one day Rent for each day thereafter until cured, provided further that if Landlord timely achieves the Architect Certificate Milestone, the credit shall not apply.  Landlord shall not be responsible for delays in achieving the Architect Certification Milestone to the extent due to the failure of Tenant to (a) make all of its color selections 10 business days after receipt of written request by Landlord (provided that such request includes all information reasonably necessary to make such selection); or (b) complete any of Tenant’s work that is required in order to obtain a temporary certificate of occupancy.  If Tenant shall be responsible for the payment of any amounts to Landlord pursuant to the provisions of Exhibit “B”, Tenant shall pay the same prior to Landlord’s commencing such work and within ten (10) days after receipt of an invoice therefor.

 

(c)                                  Intentionally omitted.

 

(d)                                 Interior signs on doors or adjacent sidelights will be affixed for each tenant by Landlord at the expense of such tenant, and must be of a size, color and style acceptable to Landlord.  A Building Directory with one listing for each Tenant will be furnished at Landlord’s expense.  Any additional listings will be at the sole expense of the Tenant requesting same.  Tenant will not place or cause to be placed or maintain any exterior sign or advertising matter of any kind on the Building, and will not place or cause to be placed or maintain any interior sign or lettering or advertising matter of any kind on any window in their premises or in the common areas without the Landlord’s prior written approval.  Landlord may remove any sign or lettering violating this rule without any liability, and may charge (as additional rent) the expense incurred by such removal to the tenant or tenants violating this rule.  Tenant shall have the Building signage rights at the NW corner of the Building facing Southfield and Maple Roads and at the Building entrance.  Tenant shall provide Landlord the design of the sign it intends to use.  Landlord will, at Tenant’s expense, have the sign constructed and install same on the Building on or before June 1, 2014.  The design, size, and character of the signage are subject to local ordinances.  Upon receipt of Tenants sign logo, Landlord will prepare and submit an application for sign approval to the City of Birmingham.

 

(e)                                  Landlord shall license for use by Tenant 8 under building parking spaces in the Parking Area (Parking Area Exhibit “E”) Spaces 1- 10, and 14 surface parking spaces for exclusive use of Tenant, only for the period of time concurrent with the Term of this Lease

 

	
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(“Parking License”).  Tenant shall park only in areas specifically designated, from time to time, by Landlord.  Automobile license number(s) shall be furnished by Tenant to Landlord upon Landlord’s request.  The monthly Parking License fee shall be $35.00 for each surface parking space (“Licensing Fee”), and shall be due and payable on the first day of each month.  Landlord shall not be liable for loss or damage to automobiles entering or using the Parking Area pursuant to this Parking License or otherwise or for any loss or damage to the contents of such automobiles.  It is expressly understood that the relationship between Landlord and Tenant constitutes permission to use the Parking Area, and that neither such relationship nor the storage or any automobile there under shall constitute a bailment nor create a relationship to bailor or bailee.  Tenant shall defend and hold Landlord harmless from any and all liability for damages to any person or any property in or upon the Parking Area, including the person and property of the Tenant and its agents, employees, customers or invitees, resulting from or in connection with use of the Parking Area.  Landlord shall not be responsible for, nor be required to, evict trespassers from Tenants parking spaces.

 

TERM

 

3.                                 (a)                                 The term of this Lease shall commence on the Commencement Date set forth in Paragraph 1(e) hereof and expire on the expiration date set forth in Paragraph 1(f) hereof, fully to be completed and ended.  In the event Landlord fails to deliver the Demised Premises on the Commencement Date for any cause beyond Landlord’s control, Landlord shall not be liable to Tenant for any damages as a result of Landlord’s delay in delivering the Demised Premises, nor shall any such delay affect the validity of this Lease or the obligations of Tenant hereunder, and the Commencement Date of this Lease shall be postponed until such time as the Demised Premises are ready for Tenant’s occupancy.  Expiration Date shall be extended to reflect this postponement.  The Demised Premises shall not be deemed ready for occupancy until Landlord has substantially completed the improvements to the Demised Premises set forth on Exhibit “B” hereto.  If the Commencement Date is other than the first day of a calendar month, the Term will be extended to terminate at the end of the calendar month in which it would otherwise terminate under the preceding.  If the Commencement Date does not occur by July 15, 2014, Tenant shall receive a credit equal to one days’ rent for each day thereafter until the Commencement Date occurs.

 

(b)                                 Each party shall, without charge, at any time and from time to time (but not more often than twice in 12 months), within five (5) days after receipt of written request thereof from the other party, execute, acknowledge and deliver to such party, its lender, or others designated by such party, in recordable form, a duly executed and acknowledged certificate or statement to the party requesting said certificate or statement, certifying: (i) that this Lease is unmodified and in full force and effect, or, if there has been any modification, that the same is in full force and effect as modified, and stating any such modification; (ii) the date of commencement, and expiration of the term of this Lease; (iii) that the Demised Premises has been satisfactorily completed as of the date of such letter and that Tenant has accepted possession subject to the terms of the Lease; (iv) that rent is paid current without any offset or defense thereto; (v) the dates to which the rent and other charges, if any, are paid in advance; (vi) whether or not there is then existing any claim of default hereunder, and, if so, specifying the nature thereof; and (vii) any other matters relating to the status of such Lease as shall be requested by such party or any such lender or beneficiary from time to time; provided that, in fact, such facts are accurate and ascertainable and reasonable.

 

	
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(c)                                  Tenant agrees that this Lease shall, at the request of Landlord, be subordinate to any first mortgages or deeds of trust that are now, or may hereafter be, placed upon the leased Premises and to any and all advances to be made there under, and to the interest thereon, and all renewals, replacements and extensions thereof, provided that the mortgagees or beneficiaries named in said mortgages or trust deeds shall agree to recognize the interest of Tenant under this Lease in the event of foreclosure, if Tenant is not then in default.  Tenant also agrees that any mortgagee or beneficiary may elect to have this Lease constitute a prior lien to its mortgage or deed of trust, and in the event of such election and upon notification by such mortgagee or beneficiary to Tenant to that effect, this Lease shall be deemed prior in lien to such mortgage or deed of trust, whether this Lease is dated prior to or subsequent to the date of said mortgage or deed of trust.  Tenant agrees that upon the request of Landlord, or any mortgagee or beneficiary, Tenant shall execute whatever instruments may be required by Landlord or by any mortgagee or beneficiary to carry out the intent of this Section.

 

(d)                                 Failure to execute any statement or instruments necessary or desirable to effectuate the foregoing provisions of this Article, within ten (10) business days after written request so to do, shall constitute a breach of this Lease.

 

RENT

 

4.                                      (a)                                 Tenant shall pay to Landlord as rent for the Demised Premises during each year of the term of this Lease the sums set forth in Paragraph 1 (g) hereof.  Such rent shall be paid in monthly installments, paid in advance, on or before THE FIRST DAY OF EACH AND EVERY MONTH without demand or offset, throughout the term of this Lease, at the office of the Landlord at the address stated in Summary Page 1 (b), or at such other place as Landlord may designate from time to time in writing; If the Lease term shall commence on a day other than the first day of a calendar month, the rental for such first fractional month shall be such portion of the monthly rental then in effect as the number of days in such fractional month bears to the total number of days in the calendar month.

 

(b)                                 The term “RENT” as used in this Lease means the Minimum Annual Rent, Annual Operating Expenses, Taxes, Licensing Fee, and any other additional rent or sums payable by Tenant to Landlord pursuant to this Lease, all of which shall be deemed Rent for purposes of Landlord’s rights and remedies with respect thereto.

 

(c)                                  The first installment of Rent will be due and payable at the time of the execution of this Lease by Tenant.  If Tenant fails to pay the Rent or any additional rent within five (5) days after due, the amount unpaid will be subject to: (i) a late payment charge, as additional rent, of Two Hundred Fifty ($250.00) Dollars, in each instance to cover Landlord’s additional administrative costs and (ii) interest on all such unpaid sums (other than the late payment charge) at a per annum rate equal to the greater of eleven (11%) percent or four (4%) percent over the Prime interest rate as published, but not in excess of the maximum interest rate permitted by law.  This obligation to pay late charges and interest will exist in addition to, and not in the place of, the other default provisions in this Lease.

 

	
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OPERATION OF PROPERTY; PAYMENT OF EXPENSES

 

5.                                      (a)                                 Payment of Operating Expenses.  Starting one full year after the Commencement Date and thereafter throughout the Term, Tenant shall pay to Landlord its pro-rata share of any increase, over the Base Year of the Annual Operating Expenses (Base Year property taxes start when the City of Birmingham assesses (up to 95%) the building for property tax purposes, but in all events reflecting the increase in taxes based upon the 12/31/14 valuation such that the actual tax bills payable in 2015 shall be used for determining the base year amount) in equal monthly installments from the Commencement Date and continuing throughout the Term on the first day of each calendar month during the Term, as additional rent, without notice, demand or setoff.  Landlord shall apply such payments to the annual operating costs incurred by Landlord for operating and maintaining the Building and common areas during each calendar year of the Term, which costs may include by way of example rather than limitation: insurance premiums, real estate taxes as described below, payments made by Landlord for common area maintenance, equipment, building and structural repairs, any maintenance, repairs, or replacements of equipment or systems (HVAC, plumbing, roofing, electrical etc.), and services, including any payments made to an association of property owners therefore, water and sewer charges, or rental of any equipment and facilities acquired (voluntarily or pursuant to government directive) by Landlord to reduce energy consumption or improve parking with amortization (over a reasonable period); license fees, parking district fees, permit and inspection fees, charges for heat, light, power (except electricity) or other fuels, janitorial/porter service, labor, wages and salaries (including employee benefits) of any building superintendent and maintenance employees, air conditioning, heating, ventilating, and all other supplies and materials necessary for operation of the Building, equipment, tools, exterminating services, security services, lighting, security monitoring, equipment testing, parking lot maintenance or replacement, sanitary line maintenance, irrigation repairs, rubbish and snow removal, telephone, landscaping costs, and a 5% management and administrative fee, and the costs of any other items attributable to operating, servicing, or maintaining any or all of the Building and common area provided, however, that annual operating costs also shall include the annual amortization (over an established useful life) of the costs (including financing charges) of building improvements made by Landlord to the Building that are required by any governmental authority (other than due to correction for code violation or similar repairs, all of which shall instead be at Landlord’s expense) or for the purpose of reducing the building’s Annual Operating Expenses or directly enhancing the safety of Tenants in the Building generally.  Real estate taxes and assessments, general and special, including the Michigan Business Tax, assessed and levied upon the Building and the Real Estate, the land on which the Building is situated and, as to the extent designated by Landlord, the parking areas, walks, drive, plazas, landscaped areas and other common areas serving the Building are part of the expenses described above.  Tenant’s obligation to pay its share of increases in Annual Operating Expenses during the Term pursuant to this Paragraph shall survive the expiration or termination of this Lease.

 

(b)                                 Computation of Tenant’s Share of Annual Operating Expenses.  For purposes of this Lease, Base Year shall mean the first full twelve month period following the Commencement Date (subject to inclusion of the property taxes per subsection (a) above).  Following the first full twelve months after such Base Year, Landlord shall have the right to reconcile the Operating Expenses so as to bring Tenant into a calendar year review of Operating Expenses, with Tenant’s prior written consent which shall not be unreasonably withheld.

 

	
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Landlord shall compute Tenant’s Share of the increase in Annual Operating Expenses described above incurred during such year by multiplying the increase in Annual Operating Expenses over the Base Year by Tenant’s Share shown in Paragraph 1(i).  For avoidance of doubt, it is the intention of the parties that the Operating Expenses for the Base Year include all Operating Expenses that would have been incurred if the Building was fully operational.  This will be done so as to avoid a total Operating Expense in the Base Year that is artificially low.  The Base Year Operating Expense will need to be increased with respect to those Operating Expenses that decrease if the Building is not fully occupied and operational.

 

ADDITIONAL RENT

 

(a)                                 Increase in Operating Expenses.  If the Operating Expenses during any calendar year within which the Term of the Lease falls in whole or in part exceeds the Base Year Operating Expenses, Tenant will pay to Landlord as additional rent Tenant’s Proportionate Share of any such excess.  There will be an annual cap of 5% on Landlord’s controllable expenses (e.g., in no event shall the controllable Operating Expenses increase by more than 5% over the prior year Operating Expenses and any amounts in excess thereof shall be at Landlord’s sole expense).  Any such payments will be prorated for the last year of the Term.  Controllable expenses shall mean all expenses other than real property taxes, insurance premiums, water, electric/natural gas expense, and snow and ice removal.

 

(c)                                  Payment.  After establishment of the Base Year, additional rent due under this Section will be payable in monthly installments, in advance, on each Rent Day during the Term and any extensions or renewals thereof.  The amount of the monthly installments will be estimated by Landlord, and may be increased by the Landlord at any time Landlord believes such adjustment to be necessary or appropriate to fully cover current and future Operating Expenses.  At the end of each calendar year, Landlord will compute the actual Operating Expenses incurred during that year, and will deliver to Tenant Operating Expense Statement for such year.  If the installments paid by Tenant during that year are less than the additional rent due under this section for such year, the difference will be paid to Landlord, within ten (10) days following the delivery of the Statement.  If the installments paid by Tenant during that year are more than the additional rent due for such year, the difference will be held by Landlord and applied against the next installment(s) of additional rent falling due, provided, however, no interest or penalties shall accrue on any such difference.  Landlord’s delay or failure to deliver an Operating Expense Statement shall not constitute a default by Landlord hereunder or a waiver by Landlord of its right to deliver an Operating Expense Statement nor constitute a release of Tenant’s obligation to pay any amounts due Landlord pursuant to an Operating Expense Statement.  Tenant’s obligation to pay any amounts due Landlord pursuant to an Operating Expense Statement survives the expiration or termination of this Lease.  The Operating Expense Statement shall be considered final and accepted by Tenant if Landlord does not receive a written objection thereto specifying the nature of the item in dispute and the reasons therefor within thirty (30) days of Tenant’s receipt of the Operating Expense Statement.  Any amount due to Landlord as shown on the Operating Expense Statement, whether or not disputed by Tenant as provided herein shall be paid by Tenant when due is provided above, without prejudice to any such written exception.  In connection thereto not more than once every calendar year, and not after 90 days from tenants receipt of billing, Tenant will have the right to audit Landlord’s books and records with respect to Operating Expenses.  Tenant is entitled, at any reasonable time during regular business hours,

 

	
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after giving at least five business days’ notice to Landlord, to audit Landlord’s books and records at the site of their location, using its own staff auditor or an independent auditor selected by Tenant.  The scope of the audit is limited to the determination the accuracy of the amounts billed to Tenant for the prior calendar year immediately preceding the year during which the notice is given.  If audit discloses that Tenant’s actual liability for Operating Expenses is less than the amount paid by Tenant, Landlord must refund the difference to Tenant within ten days.  If the audit reveals that Tenant was overcharged by more than 5%, Landlord must bear all actual costs of the audit.

 

USE AND OCCUPANCY -

 

6.                                      During the continuation of this Lease, the Demised Premises shall be used and occupied for office and incidental purposes and for no other purposes without the written consent of Landlord, but in no event may Tenant use or permit the use of any part of the Premises or the common areas in violation of the Rules and Regulations described herein.  Tenant shall not conduct its business in a manner which will cause an increase in fire and extended coverage insurance premiums for the Demised Premises or Building.  Tenant shall not use the Demised Premises for any purpose in violation of any law, municipal ordinance, or regulation, nor shall Tenant perform any acts or carry on any practices which may injure the Demised Premises or the Building or be a nuisance, disturbance, or menace to the other tenants of the Building.  No vending machines may be installed in or about the Premises except by Landlord.  Tenant will not place a load on any floor of the Premises exceeding the floor’s designed limits.  Landlord reserves the right to prescribe the weight and position of all equipment, furniture, file cabinets and other heavy objects.  Tenant shall not cause or permit the use, generation, storage or disposal in or about the Demised Premises or the Building of any substances, materials or wastes subject to regulation under federal, state or local laws from time to time in effect concerning hazardous, toxic or radioactive materials, unless Tenant shall have received Landlord’s prior written consent, which Landlord may withhold or at any time revoke in its sole and absolute discretion.  Landlord represents and warrants to Tenant that, to Landlord’s actual knowledge, the Demised Premises, the Building and the property upon which they are situated are not used and to the best of its knowledge have not been used for the generation, storage or disposal of any substances, materials or wastes subject to regulation under federal, state or local laws from time to time in effect concerning hazardous, toxic or radioactive materials or underground or aboveground storage tanks, except with respect to any such substances, materials or wastes which have been or will be remediated by Landlord as of the Commencement Date.  Landlord covenants to deliver the Demised Premises to Tenant free of hazardous, toxic and radioactive materials as of the Commencement Date.

 

UTILITIES AND SERVICES

 

7.                                      (a)                                 Landlord agrees to furnish, or cause to be furnished, for the Demised Premises, ventilation, gas forced heating and air conditioning as required to provide reasonably comfortable temperatures, for the normal use and occupancy of the Demised Premises as general offices with business hours between 7:30 a.m. and 6:30 p.m., Monday through Friday, Saturday between 8:00 AM and 2:00 PM (legal holidays excepted).  Landlord’s obligation hereunder is dependent on Tenant having not more than one person per 150 rentable square feet of the Demised Premises.  Landlord shall provide electrical service to the building and demised

 

	
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premises, the pro rata cost of which shall be paid by Tenant on a monthly basis.  If Tenant shall install electrical equipment including but not limited to electrical heating, refrigeration equipment, electronic data processing machines, or machines or equipment using current in excess of 110 volts, or if Tenant shall attempt to use the Demised Premises in such a manner that exceeds the capacity of the services furnished by Landlord, Tenant will obtain Landlord’s prior written approval and will pay for the resulting additional direct expense, including the expense resulting from the installation of such equipment and meters, as additional rent promptly upon being billed.  Landlord shall not be responsible or liable for any interruption in utility service, nor shall such interruption affect the continuation or validity of this Lease.  If requested by Tenant, after hours use of HVAC is billed to Tenant at a rate of $25.00 per hour.  Landlord shall cause cable to be installed to the Building to obtain Comcast service.

 

(b)                                 If at any time utility services supplied to the Premises are separately metered, the cost of installing Tenant’s meter and the cost of such separately metered utility service shall be paid by Tenant promptly upon being billed.  Pro rata building electric expense is Tenant’s cost and will be billed monthly with all other expenses attributed to the operation of the Demised Premises.  Notwithstanding the foregoing, if any Tenant operates other than a customary office use or hours substantially greater than the base office hours, Landlord shall either install separate meters at Landlord’s expense or shall cause such other tenant to pay an increased share of utilities based upon a formula acceptable to Tenant.

 

REPAIRS

 

8.                                      (a)                                 Landlord shall make all necessary repairs and replacements to the Building and to the common areas, including parking areas, heating, air conditioning and electrical systems located therein, and Landlord shall also make all repairs to the Demised Premises which are structural in nature, part of the Building systems (HVAC, electrical, plumbing, etc.), the roof, parking lot, or required due to fire, casualty, or other act of God or failure of the Building or Demised Premises to comply with law, rule or regulation; provided, however, that Tenant shall reimburse Landlord for all repairs and replacements arising from its act, neglect or default.  Tenant shall keep the Demised Premises in good repair, and Tenant shall upon the expiration of the term of this Lease, yield and deliver up the Demised Premises in like condition as when taken, reasonable use and wear with all furniture and equipment removed.

 

(b)                                 In the event that Landlord shall deem it necessary or be required by any governmental authority to repair, alter, remove, reconstruct or improve any part of the Demised Premises or of the Building (unless the same result from Tenant’s act, neglect, default or mode of operation in which event Tenant shall make all such repairs, alterations and improvements), then the same shall be made by Landlord with reasonable dispatch, and should the making of such repairs, alterations or improvements cause any interference with Tenant’s use of the Demised Premises, such interference shall not relieve Tenant from the performance of its obligations hereunder nor shall such interference be deemed an actual or constructive eviction or partial eviction or result in an abatement of rental.  Notwithstanding the foregoing, Tenant shall, at its own cost and expense, make all repairs and provide all maintenance in connection with any alterations, additions or improvements made by Tenant pursuant to Paragraph 9 hereof.

 

	
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ALTERATIONS

 

9.                                      Tenant shall not make any material alterations, additions or improvements to the Demised Premises (and for these purposes, material shall mean structural in nature, impacting the electrical, HVAC or fire suppression system or which costs in excess of $20,000 in hard costs excluding trade fixtures) without Landlord’s prior written consent, and all alterations, additions, or improvements made by either party hereto to the Demised Premises, including wiring, cables, risers and similar installations, except movable office furniture, trade fixtures and equipment (including all work stations) shall be the property of Landlord and remain upon and be surrendered with the Demised Premises at the expiration of the term hereof; provided, however, Tenant shall remove any additions made by Tenant to the Demised Premises, including wiring, cables, risers and similar installations and repair any material damage caused by such removal.  If Tenant has not removed its property and equipment within ten (10) days after the expiration or termination of this Lease, Landlord may elect to retain the same as abandoned property or remove same and charge the expense of removal against the Tenant, and if the Tenant does not reimburse the Landlord for said expense, Tenant shall be responsible for the difference.  Tenant shall not permit any construction liens to be placed or remain upon the Demised Premises or Building.

 

ACCESS TO PREMISES

 

10.                               Tenant will permit Landlord and its agents access to the Premises at all reasonable hours with reasonable prior notice for the purpose of examining the Premises and making any repairs, alterations or additions which Landlord may deem necessary for the safety, preservation or improvement of the Premises or the Building.  Landlord will be allowed to take all material into the Premises that may be required for such work and to perform such acts without the same constituting an eviction of Tenant in whole or in part so long as same does not interfere with Tenant’s use thereof.  The rent will not abate while the repairs, alterations, improvements or additions are being made so long as same does not materially interfere with Tenant’s use thereof.  Nothing in this Lease will be deemed to impose on Landlord any obligation for the care, supervision or repair of the Building or the Premises not specifically set forth in this Lease.

 

ASSIGNMENT AND SUBLETTING

 

11.                               Tenant covenants not to assign or transfer this Lease or hypothecate or mortgage the same or sublet the Demised Premises or any part thereof without the prior written consent of Landlord, but in the event of any such assignment or transfer, Tenant shall remain fully liable to perform all of its obligations under this Lease.  Any assignment, transfer (including transfers by operation of law or otherwise), hypothecation, mortgage, or subletting without such written consent shall give Landlord the right to terminate this Lease and to reenter and repossess the Demised Premises but Landlord’s right to damages shall survive.  No consent by Landlord to any assignment, transfer, hypothecation, mortgage or subletting on any one occasion shall be deemed a consent to any subsequent assignment, transfer, hypothecation, mortgage or subletting by Tenant or by any successors, assigns, transferees, mortgagees or sublessees of Tenant.  As long as Tenant remains liable for this Lease, it shall have the right to assign or sublet, or permit occupancy of all or any portion of Tenant’s Demised Premises to any related or unrelated entity or affiliate of Tenant, whether by merger or consolidation, or to any successor corporation,

 

	
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without Landlord’s approval or consent.  Any subleasing net profits will be split between the Landlord and Tenant on a 1/3 Tenant and 2/3 Landlord basis.

 

INSURANCE AND INDEMNIFICATION

 

12.                               (a)                                 Tenant shall indemnify and hold Landlord harmless from any liability for damages to any person or property in, on or about the Demised Premises (but not due to the negligence of Landlord) or if within the Common Areas and due to negligent acts or omissions of Tenant.  Tenant at it expense will defend, indemnify and save Landlord, its licensees, servants, agents, employees and contractors, harmless from any loss, damage, claim of damage, liability or expense to or for any person or property, whether based on contract, tort, negligence or otherwise, arising directly or indirectly out of the use or misuse of the Demised Premises by Tenant, the negligent acts or omissions of Tenant, its licensees, servants, agents, employees or contractors, the failure of Tenant to comply with any provision of this Lease.  Tenant shall procure with a company or companies having not less than an “A” rating by AM Best Company, naming Landlord as an additional insured, and keep in effect during the entire term hereof public liability and property damage insurance protecting Landlord and Tenant from all causes including their own negligence, having as limits of liability of at least Two Million Dollars ($2,000,000.00) for damages resulting from one occurrence, and at least Two Hundred Fifty Thousand Dollars ($250,000.00) for property damage resulting from any one occurrence.  Tenant shall deliver policies of such insurance or certificates thereof to Landlord and such policies shall not be cancelable without ten (10) days’ written notice to Landlord.  In the event Tenant shall fail to procure such insurance after written notice and five (5) business days failure to cure, Landlord may at its option procure the same for the account of Tenant, and the cost thereof shall be paid to Landlord as additional rent upon receipt by Tenant of bills therefor.  All property kept, stored or maintained by Tenant in and about the Demised Premises will be kept, stored or maintained at the sole risk of Tenant.

 

(b)                                 Landlord shall indemnify and hold Tenant harmless from any liability for damages to any person or property in, on or about the Common Areas (if not due to the negligence of Tenant) or if within the Demised Premises and due to negligent acts or omissions of Landlord.  Landlord at it expense will defend, indemnify and save Tenant, its licensees, servants, agents, employees and contractors, harmless from any loss, damage, claim of damage, liability or expense to or for any person or property, whether based on contract, tort, negligence or otherwise, arising directly or indirectly out of the use or misuse of the Demised Premises by Landlord, the negligent acts or omissions of Landlord, its licensees, servants, agents, employees or contractors, the failure of Landlord to comply with any provision of this Lease.  Landlord shall procure with a company or companies having not less than an “A” rating by AM Best Company, naming Tenant as an additional insured, and keep in effect during the entire term hereof public liability and property damage insurance protecting Tenant and Landlord from all causes including their own negligence, having as limits of liability of at least Two Million Dollars ($2,000,000.00) for damages resulting from one occurrence, and at least Two Hundred Fifty Thousand Dollars ($250,000.00) for property damage resulting from any one occurrence.  Landlord shall deliver policies of such insurance or certificates thereof to Tenant and such policies shall not be cancelable without ten (10) days’ written notice to Tenant.  In the event Landlord shall fail to procure such insurance after written notice and five (5) business days’ failure to cure, Tenant may at its option procure the same for the account of Landlord, and the

 

	
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cost thereof shall be paid to Tenant as a rent credit upon receipt by Landlord of bills therefor.  All property kept, stored or maintained by Landlord in and about the Common Areas will be kept, stored or maintained at the sole risk of Landlord.

 

FIRE

 

13.                               (a)                                 In the event the Demised Premises are damaged or destroyed in whole or in part by fire or other insured casualty during the term hereof, Landlord shall, at its own cost and expense, repair and restore the same to tenantable condition with reasonable dispatch, and the rent (including all additional rent, Licensing Fees, etc.) herein provided shall be abated in direct proportion to the amount of the Demised Premises so damaged or destroyed until such time as the Demised Premises are restored to tenantable condition (or the entire Demised Premises if Tenant determines that partial use is not feasible).  If, based upon an independent architect review, the Demised Premises cannot be restored to tenantable condition within a period of two hundred forty (240) days after the casualty or if more than 50% of the Demised Premises is damaged and following restoration there is not expected to be at least eighteen (18) months remaining in the Term, Landlord and Tenant shall each have the right to terminate this Lease upon written notice to the other (the cancellation notice shall be given within sixty (60) days after receipt of determination that the Demised Premises cannot be timely restored and an estimate for time required to restore), and any rent (including additional rent, Licensing Fees, etc.) paid relating to the period after the date of such damage and destruction shall be refunded to Tenant; provided that if Landlord terminates the Lease under this provision then Tenant shall have the right to void the termination by exercising the option to renew the Term.  If the Demised Premises are damaged due to fire or other casualty Tenant shall at its own cost and expense remove such of its furniture and other belongings from the Demised Premises as Landlord shall require in order to repair and restore the Demised Premises.  Notwithstanding the foregoing, if, based upon an independent architect review, more than 70% of the Building is destroyed and the time period for restoration is estimated to exceed two-hundred forty (240) days and following such estimated restoration period there is not expected to be at least thirty-six months left in the Term, then if Landlord terminates all other Leases for the Building, Landlord shall have the right to terminate this Lease by written notice to Tenant within sixty days after the date of the casualty unless Tenant exercises its option to renew the Term.

 

(b)                                 In the event the Building is destroyed to the extent of more than one-half of the then value thereof, either party shall have the right to terminate this Lease upon written notice to the other party within sixty (60) days thereafter, in which event any rent paid relating to the period after the date of such destruction shall be refunded to Tenant.

 

(c)                                  Tenant shall procure and keep in effect fire insurance (including standard extended coverage endorsement perils and leakage from fire protective devices) for the full replacement cost of Tenant’s trade fixtures, equipment, personal property and leasehold improvements installed by Tenant.

 

(d)                                 Landlord and Tenant do each hereby release the other from any liability resulting from damage by fire or any other peril covered by extended coverage insurance with waiver of subrogation normally available in the State of Michigan irrespective of the cause

 

	
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therefor; provided, however, that if any increase in premium is required for such waiver of subrogation, the other party will pay such increase or the waiver will not be furnished.

 

(e)                                  If Landlord elects or is required to restore the Demised Premises and/or Building, it shall do so with diligence and in any event shall deliver same Substantially Complete within two hundred forty (240) days after the date of the casualty.

 

EMINENT DOMAIN

 

14.                               If the whole or any substantial part of the Building shall be taken by any public authority under the power of eminent domain, then the term of this Lease shall cease on the part so taken on the date possession of that part shall be required for public use, and any rent paid in advance of such date shall be refunded to Tenant, and Landlord and Tenant shall each have the right to terminate this Lease upon written notice to the other, which notice shall be delivered within sixty (60) days following the date notice is received of such taking.  In the event that neither party hereto shall terminate this Lease, Landlord shall, make all necessary repairs to the Demised Premises and the Building to render and restore the same to a complete architectural unit and Tenant shall continue in possession of the portion of the Demised Premises not taken under the power of eminent domain, under the same terms and conditions as are herein provided, except that the rent (and all additional rent, Licensing Fees, etc.) reserved herein shall be reduced in direct proportion to the amount of the Demised Premises so taken.  All damages awarded for taking shall belong to and be the property of Landlord, whether such damages be awarded as compensation for diminution in value of the leasehold or to the fee of the Demised Premises; provided, however, Landlord shall not be entitled to any portion of the award made to Tenant for removal and reinstallation of trade fixtures, loss of business, or moving expenses.

 

RULES AND REGULATIONS

 

15.                               The rules and regulations set forth on Exhibit “C” hereto, together with such other reasonable rules and regulations as Landlord shall make from time to time which are of uniform applicability to all tenants of the Building and of which Tenant shall have received prior written notice, shall be binding upon Tenant and are hereby expressly made a part of this Lease so long as they do not conflict with or contradict this Lease.

 

QUIET ENJOYMENT

 

16.                               Landlord warrants that Tenant, upon paying the rents herein before provided and in performing each and every covenant hereof, shall peacefully and quietly hold, occupy and enjoy the Demised Premises throughout the term hereof, without molestation or hindrance.

 

SUBORDINATION

 

17.                               Landlord (and its mortgagee(s)) reserves the right to subject and subordinate this Lease at all times to the lien of any mortgage(s) or ground or underlying lease(s) now or hereafter placed upon Landlord’s interest in the Demised Premises or on the land and Building, and Tenant agrees upon request to execute an agreement subordinating its interest and/or attornment agreement to such mortgagees and lessors and appoints Landlord its attorney-in-fact to execute and deliver any such instruments; provided, however, that no default by Landlord

 

	
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under any such mortgage or ground lease shall affect Tenant’s rights hereunder so long as Tenant shall not be in default.  Notwithstanding the foregoing, at the request of Landlord’s mortgagee(s) or such ground lessor, this Lease may be made prior and superior mortgage or mortgages and/or such ground lease.  Promptly following request from Tenant, Landlord shall use commercially reasonable efforts to obtain a SNDA from its lender in form and content reasonably acceptable to Tenant.

 

NON-LIABILITY

 

18.                               (a)                                 Landlord shall not be responsible or liable to Tenant for any loss or damage that may be occasioned by or through the acts or omissions of persons occupying adjoining premises or any part of the premises adjacent to or connected with the Demised Premises or any part of the Building or for any loss or damage resulting to Tenant or its property from burst, stopped or leaking water, gas, sewer or steam pipes, or for any damage or loss of property within the Demised Premises from any cause whatsoever excepting that caused by the negligence of Landlord, its agents, employees or contractors and no such occurrence shall be deemed to be an actual or constructive eviction from the Demised Premises or result in an abatement of rental except as aforesaid with respect to such negligence.

 

(b)                                 In the event of any sale or transfer (including any transfer by operation of law) of the Demised Premises, Landlord (and any subsequent owner of the Demised Premises making such a transfer) shall be relieved from any and all obligations and liabilities under this Lease except such obligations and liabilities as shall have arisen during Landlord’s (or such subsequent owner’s) respective period of ownership, provided that the transferee assumes in writing all of the obligations of Landlord under this Lease.

 

(c)                                  If Landlord shall fail to perform any covenant, term or condition of this Lease upon Landlord’s part to be performed, and, if as a consequence of such default, Tenant shall recover a money judgment against Landlord, such judgment shall be satisfied only against the right, title and interest of Landlord in the Building and out of rents or other income from the Building receivable by Landlord, or out of the consideration received by Landlord from the sale or other disposition of all or any part of Landlord’s right, title and interest in the Building, and neither Landlord nor any of the members of the limited liability company which is the Landlord herein shall be liable for any deficiency.

 

(d)                                 Landlord shall cure its default within ten (10) days after written notice from Tenant, provided, however, if such default or breach does not materially interfere with Tenant’s use and enjoyment of the Demised Premises, parking areas or the Building, then Landlord shall have additional time (up to 30 days in total) if Landlord diligently pursues such cure to completion within such additional time period.  Notwithstanding the foregoing, if the default is of such a nature that Tenant determines that it cannot reasonably operate in the Demised Premises (e.g., inadequate heat), then Tenant shall have the right to shorten the cure period as it deems appropriate under the circumstances.

 

	
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NON-WAIVER

 

19.                               One or more waivers of any covenant or condition shall not be construed as a waiver of a subsequent breach of the same covenant or condition, and the consent or approval to or of any act requiring consent or approval shall not be deemed to waive or render unnecessary consent or approval to or of any subsequent similar act.

 

BANKRUPTCY

 

20.                               (a)                                 In the event the estate created hereby shall be taken in execution or by other process of law, or if Tenant shall be adjudicated insolvent or bankrupt pursuant to the provisions of any state or federal insolvency or bankruptcy law, or if a receiver or trustee of the property of Tenant shall be appointed, or if any assignment shall be made of Tenant’s property for the benefit of creditors or if a petition shall be filed by or against Tenant seeking to have Tenant adjudicated insolvent or bankrupt pursuant to the provisions of any state or federal insolvency or bankruptcy law and such petition shall not be withdrawn and the proceedings dismissed within ninety (90) days after the filing of the petition, then and in any of such events, Landlord may terminate this Lease by written notice to Tenant; provided, however, if the order of the court creating any of such disabilities shall not be final by reason of pendency of such proceedings, or appeal from such order, or if the petition shall have been withdrawn or the proceedings dismissed within ninety (90) days after the filing of the petition then Landlord shall not have the right to terminate this Lease so long as Tenant performs its obligations hereunder.

 

(b)                                 If, as a matter of law, Landlord has no right on the bankruptcy of Tenant to terminate this Lease, then, if Tenant, as debtor, or its trustee, wishes to assume or assign this Lease, in addition to curing or adequately assuring the cure of all defaults existing under this Lease on Tenant’s part on the date of filing of the proceeding (such assurances being defined below), Tenant, as debtor, or the trustee or assignee, must also furnish adequate assurances of future performance under this Lease (as defined below).  Adequate assurance of curing defaults means the posting with Landlord of a sum in cash sufficient to defray the cost of such a cure.  Adequate assurance of future performance under this Lease means posting a deposit equal to three (3) months’ rent, including all other charges payable by Tenant hereunder, such as the amounts payable pursuant to Paragraph 5 hereof, and in the case of an assignee, assuring Landlord that the assignee is financially capable of assuming this Lease, and that its use of the Demised Premises will not be detrimental to the other tenants in the Building or Landlord.  In reorganization under Chapter 11 of the Bankruptcy Code, the debtor or trustee must assume this Lease or assign it within sixty (60) days from the filing of the proceeding, or he shall be deemed to have rejected and terminated this Lease.

 

LANDLORD’S REMEDIES

 

21.                               (a)                                 If any rental payable by Tenant to Landlord remains unpaid for more than seven (7) days  after written notice to Tenant of non-payment, or if Tenant violates or defaults in the performance of any of its non-monetary obligations in this Lease (including its Rules and Regulations), and the non-monetary violation or default continues for a period of thirty (30) days after written notice (or such longer period of time as reasonably necessary), then Landlord may

 

	
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(but will not be required to) declare this Lease forfeited and the Term ended, or re-enter the Premises, or may exercise all other remedies available under Michigan law, and in this Lease.

 

(b)                                 If Tenant shall be in default in performing any of the terms of this Lease other than the payment of rent or any other obligation involving the payment of money, Landlord shall give Tenant written notice of such default, and if Tenant shall fail to cure such default within thirty (30) days after the receipt of such notice, or if the default is of such a character as to require more than thirty (30) days to cure, then if Tenant shall fail within said thirty (30) day period to commence and thereafter proceed diligently to cure such default, then and in either of such events, Landlord may (at its option and in addition to its other legal remedies) cure such default for the account of Tenant and any sum so expended by Landlord shall be additional rent for all purposes hereunder, including Paragraph 21(a) hereof, shall be paid by Tenant with the next monthly installment of rent.

 

(c)                                  If any rent or any other obligation involving the payment of money shall be due and unpaid or Tenant shall be in default upon any of the terms of this Lease, and such default has not been cured after notice and within the time period in Paragraphs 21(a) and (b) hereof, or, if the Demised Premises are abandoned or vacated, then Landlord, in addition to its other remedies, shall have the immediate right of reentry.  Should Landlord elect to reenter or take possession pursuant to legal proceedings or any notice provided for by the law, Landlord may either terminate this Lease or from time to time, without terminating this Lease, re-let the Demised Premises or any part thereof on such terms and conditions as Landlord shall in its sole discretion deem advisable.  The avails of such re-letting shall be applied first, to the payment of any indebtedness of Tenant to Landlord other than rent due hereunder; second, to the payment of any reasonable alterations and repairs to the Demised Premises; third, to the payment of rent due and unpaid hereunder; and the residual, if any, shall be held by Landlord and applied in payment of future rent as the same may become due and payable hereunder.  Should the avails of such re-letting during any month be less than the monthly rent reserved hereunder, then Tenant shall during each such month pay such deficiency to Landlord.  Upon any such termination of this Lease, Landlord may recover the worth at such time of the excess, if any, of the amount of rent and charges equivalent to the rent and charges reserved in this Lease for the remainder of the stated term over the then reasonable rental value of the Demised Premises for the remainder of the stated term, which amount shall be immediately due and payable, provided that Landlord shall use commercially reasonable efforts to mitigate its damages.

 

(d)                                 All rights and remedies of Landlord hereunder shall be cumulative and none shall be exclusive of any other rights and remedies allowed by law, including any proceeding under the Federal Bankruptcy Code.

 

(e)                                  In the event of any default under this Lease, the prevailing party shall be reimbursed by the other party for its reasonable attorneys’ fees.

 

(f)                                   The parties hereto shall and they hereby do waive trial by jury in any action, proceeding or counterclaim brought by either of the parties hereto against the other on any matters whatsoever arising out of or in any way connected with this Lease, the relationship of Landlord and Tenant, Tenant’s use or occupancy of the Demised Premises, and/or any claim of injury or damage.

 

	
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(g)                                  Landlord hereby waives and releases any and all liens and similar rights or security interests that Landlord now has or may hereafter obtain with respect to any of Tenant’s assets, property, accounts, personal property or otherwise.

 

(h)                                 Notwithstanding anything in this Lease to the contrary, Landlord shall use commercially reasonable efforts to mitigate its damages.

 

(i)                                     Notwithstanding anything in this Lease to the contrary, Tenant shall not be liable for any consequential damages except as expressly provided in this Section 21(i).  If the Landlord delivers the Leased Premises to Tenant during the time period and in the condition required by this Lease and Tenant fails to occupy the Leased Premises on or before October 31, 2014, other than due to a Force Majeure Event (as hereinafter defined), then Tenant shall be liable for Landlord’s Losses (as hereinafter defined).  For the avoidance of doubt, once Tenant takes occupancy, it is under no duty to thereafter continuously occupy or operate from the Leased Premises.

 

As used herein, Force Majeure Event shall mean the occurrence of delays due to acts of God, governmental restrictions, strikes, labor disturbances, shortages of materials or supplies, casualty or for any other cause or event beyond Tenant’s reasonable control or Tenant in good faith disputes that Landlord has delivered the Leased Premises in the condition required under this Lease and has completed construction of all of the Common Areas.

 

As used in this Section 21(i), Landlord’s Losses shall mean: (a) Landlord’s documented actual out of pocket costs and expenses to extend Landlord’s loan commitment if all conditions to such loan are fully satisfied and the lender is prepared to fund, but lender does not fund based solely on the fact that Tenant is not occupying the Leased Premises; and (b) if Landlord obtains a loan commitment and all conditions to such loan are fully satisfied and the lender is prepared to fund, but lender does not fund based solely on the fact that Tenant is not occupying the Leased Premises, and Landlord is not able to extend the commitment after use of good faith efforts then Tenant will be liable for Landlord’s actual out of pocket expenses incurred in connection with obtaining a new loan commitment to the extent duplicative with the fees and expenses that were paid for the loan commitment that was not extended together with any additional losses sustained by Landlord as a result of Tenants failure to occupy the Leased Premises; provided that in the event of either (a) or (b) the total amount of Landlord’s Losses shall not exceed Two Hundred Fifty Thousand and 00/100 ($250,000) in the aggregate.

 

OPTION TO EXTEND LEASE

 

22.                               Provided Tenant is not in default under this Lease beyond applicable notice and cure periods as of the date of exercise, Tenant shall have the right to extend the term of this Lease per the terms and conditions in Rider “A” attached hereto.

 

HOLDING OVER

 

23.                               It is hereby agreed that in the event of Tenant holding over after the termination of this Lease, the tenancy shall be from month to month, subject to all the provisions of this Lease, in the absence of a written agreement to the contrary, and Tenant shall pay to Landlord a

 

	
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daily occupancy charge equal to the base annual rental under Paragraph 4 hereof for the last lease year (plus all other charges payable by Tenant under this Lease) for each day from the expiration or termination of this Lease until Tenant vacates the Demised Premises.  The month to month tenancy can be terminated by either party on at least thirty (30) days’ prior written notice.  If Tenant holds over for more than sixty (60) days, then the base rental rate shall be deemed increased to 125% of the base annual rental.  Such increased rental rate shall be deemed liquidated damages for such holdover, provided that if Tenant holds over for a total of more than four (4) months, Tenant shall have liability for consequential damages incurred by Landlord if it loses a new tenant for the Demised Premises due solely to Tenant’s hold over beyond such four (4) month period.

 

ENTIRE AGREEMENT

 

24.                               This Lease shall constitute the entire agreement of the parties hereto.  All prior agreements between the parties, whether written or oral, are merged herein and shall be of no force and effect.  This Lease cannot be changed, modified or discharged orally but only by an agreement in writing, signed by the party against whom enforcement of the change, modification or discharge is sought.  Many references in this Lease to persons, entities and items have been generalized for ease of reading.  Therefore, references to a single person, entity or item will also mean more than one person, entity or thing whenever such usage is appropriate.  Similarly, pronouns of any gender should be considered interchangeable with pronouns of other genders.  Any waiver or waivers of any of the provisions of this Lease will not constitute a waiver of any later breach of that provision, and any consent or approval given with respect to any act, neglect or default will not waive or make unnecessary consent or approval with respect to any later similar act, neglect or default.  Topical headings appearing in this Lease are for convenience only.  They do not define, limit or construe the contents of any paragraphs or clauses.  The laws of the State of Michigan will control in the enforcement of this Lease.

 

NOTICES

 

25.                               Whenever under this Lease a provision is made for notice of any kind it shall be deemed sufficient notice and service thereof if such notice in writing and transmitted by any of the following methods: (I) Hand Delivered, (with signed receipt) (2) Sent by Email, (with proof of send) (3) Sent by First Class Mail.  Each of Tenant and Landlord may change the address to which notices are sent hereunder by notice to the other.  Notice need be sent to only one Tenant or Landlord where Tenant or Landlord is more than one person.

 

Notices To Tenant/Landlord shall be sent to:

 

	
Tenant: Conifer Holdings, Inc.
    	
 
    	
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Prior to the Commencement Date:
    	
 
    	
Mail: 320 Martin, #100,
    
	
Mail: 26300 Northwestern Hwy, Ste 410
    	
 
    	
Birmingham, Michigan 48009
    
	
Southfield, Michigan 48076
    	
 
    	
Email: Jeff@Surnow.com
    
	
Email: broney@coniferinsurance.com.
    	
 
    	
 
    

 

	
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After the Commencement Date:

Mail: 550 Merrill Street, #100,

Birmingham, Michigan 48009

Email: broney@coniferinsurance.com

 

With a copy to:

Honigman Miller Schwartz and Cohn LLP

39400 Woodward Ave., Suite 101

Bloomfield Hills, Michigan 48304-5151

Attention: Thomas W. Forster II

Email: tforster@honigman.com

 

SUCCESSORS

 

26.                               This agreement shall inure to the benefit of and be binding upon the parties hereto, their respective heirs, administrators, executors, representatives, successors and assigns.

 

INABILITY TO PERFORM

 

27.                               If, by reason of the occurrence of unavoidable delays due to acts of God, governmental restrictions, strikes, labor disturbances, shortages of materials or supplies or for any other cause or event beyond a party’s reasonable control, such party is unable to furnish or is delayed in furnishing any utility or service required to be furnished by such party under the provisions of this Lease, or is unable to perform or make or is delayed in performing or making any installations, decorations, repairs, alterations, additions or improvements required to be performed or made under this Lease, or is unable to fulfill or is delayed in fulfilling any of its obligations under this Lease, no such inability or delay shall constitute an actual or constructive eviction in whole or in part, or entitle the other party to any abatement or diminution of rental or other charges due hereunder or penalty or damages or relieve the other party from any of its obligations under this Lease, or impose any liability upon the first party or its agents by reason of inconvenience or annoyance to the other party, or injury to or interruption of the other party’s business, or otherwise.  In no event shall lack of funds be considered beyond such parties control for purposes of this provision.

 

SECURITY DEPOSIT

 

28.                               Landlord and Tenant shall each use reasonable efforts to keep the terms and conditions of this Lease confidential.

 

[Remainder of page intentionally blank;

Signatures on following pages]

 

	
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IN WITNESS WHEREOF, the parties hereto have hereunto set their hands as of the day and year first above written.

 

	
 
    	
Merrill Street   Investments, LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Its:
    	
 
    
	
 
    	
 
    	
“Landlord”
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Confer   Holdings, Inc.
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Its:
    	
 
    
	
 
    	
 
    	
“Tenant”
    

 

	
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LEASE AGREEMENT
  RIDER “A”

 

Attached to and made a part of Lease dated September    , 2013, between Merrill Street Investments, LLC as Landlord and Conifer Holdings, Inc. as Tenant, covering premises situated in the City of Birmingham, State of Michigan.

 

(1)           Paragraph (2) of the Lease entitled “Term” shall have added the following thereto:

 

(a)           Tenant shall have the right, if it is not in default under the Lease beyond applicable notice and cure periods at the time of exercise, upon not less than six (6) months’ advance written notice, to extend the term of this Lease for up to two (2) additional five (5) year period, upon the same terms and conditions as herein provided and at the fixed minimum rental provided for in Paragraph (b) hereof.  The exercise of one such option shall not imply the exercise of any other such option.

 

(b)           The fixed minimum rental during such additional five (5) year period shall be: 90% of the fair market rental value of comparable buildings in the Birmingham market taking into account all relevant factors.

 

	
In Presence of:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
As to Landlord
    	
 
    	
Landlord
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
As to Tenant
    	
 
    	
Tenant
    

 

	
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22

 

EXHIBIT “A”

FLOOR PLAN AND PREMISES

 

 

	
Landlord
    	
 
    	
 
    	
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23

 

EXHIBIT “B”
 BUILDING IMPROVEMENT STANDARDS

 

Except as otherwise provided in Exhibit “A”, Landlord will provide the following Building Improvement Standards:

 

LANDLORD MUST APPROVE ANYTHING SPECIAL OR UNIQUE TO TENANT THAT IS TO BE PLACED IN TENANT’S PREMISES THAT WOULD BE EXPOSED TO THE COMMON AREAS OF THE BUILDING.

 

During construction, all existing interior materials within the building will be removed between the floor and the under decking of the roof.  Any hazardous materials found within the building will be removed at Landlord’s expense.

 

All renovations will adhere to ADA standards at Landlord’s expense.

 

Partitioning

Metal studs with 5/8” drywall (soundproofing where required) each side painted (per building standards, see below) per attached approved floor plan.  Demising partitions are measured through doorways and the common walls between tenants are counted as half walls to split cost between adjacent tenants.

 

Additional or special sound insulation of interior walls will be done at additional cost to Tenant.

 

Paint/Wall Coverings

Paint colors to be selected from the samples supplied by Landlord (Building Standards).  Landlord will provide and hang roll wallpaper at additional cost to Tenant.

 

Doors and Hardware

Entrance Doors: Landlord will provide one ‘A” frameless glass suite entrance door with a glass sidelight.

 

Interior Doors: Interior office doors will also be flush solid core veneer laminate (with glass insert and sidelight), installed in metal door frame and equipped with a building standard lever set and door stop.  Locksets will be at additional cost to Tenant and keyed to building’s master key system.

 

Keys/Fob

One key per door will be provided.  One fob per employee is provided.  In the event of an employee no longer working for the company, Tenant shall notify Landlord immediately and the fob will be deactivated.  No authorized user of a Fob shall allow another person to use it.  In this event, it will be deactivated permanently.  Replacement Fob is at $50.00.

 

Electrical Outlet

Any additional outlets required but not shown on Tenants plan will be installed by Landlord’s electrician at additional cost to Tenant.  Additional outlets that Tenant requests that requires the floor to be cored, will be at the additional cost to Tenant.  Additional separate circuits for

 

	
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24

 

Tenant’s office equipment and voltage requirements other than 120 volts are to be paid for by Tenant.

 

Telephone/Data Openings

Landlord will provide telephone/data to the server/electrical room per Tenant’s plan.  Additional pathways required that are not shown in Tenant’s plan will be installed by Landlord’s electrician at additional cost to Tenant.  Any pathways and conduits that are not shown in Tenant’s plan which require the floor to be cored will be at additional cost to Tenant.  Low voltage wiring by Tenant at Tenant’s expense.

 

Lighting

Ceiling mounted lighting fixtures installed in all office areas to provide uniform illumination at and over desks.  (We need further specs regarding type of lighting)

 

Air Conditioning

The air conditioning system is capable of handling normal office occupancy; it is not capable of handling special applications as may be required by server rooms, tenant conference rooms, etc.  These areas may require special ventilating equipment and in some cases, some additional air conditioning systems at Tenant’s expense.

 

Ceilings

Exposed concrete/under decking.

 

Shades/Blinds

Landlord to provide window shades or blinds to the building standard

 

Floor Coverings:

Landlord will supply glued down (no padding), nylon carpeting throughout office areas.  A carpet selection is to be made from samples supplied by Landlord as building standards, upgrades up to $40 per square yard will not be an additional cost to Tenant.  Tenants can request padding to be installed at the additional cost to Tenant.  Landlord will provide 3” carpet base for all partitions.  Landlord warrants that the floor has been designed for a live floor load of 100 pounds per square foot.  All building standard carpets are recyclable.

 

Sprinkler Heads

Landlord will provide sprinkler heads to accommodate Tenant partition layout, per State code.

 

Alarm System:

Landlord will provide each tenant with an alarm system and appropriate keypads at suite entrances.  Tenant to pay for the monthly monitoring expense.

 

Tenant’s Changes to Plan

Landlord will make every effort to accommodate any and all changes by Tenant; however, if changes are made after approval of final floor plan which requires changes in architectural drawings and mechanical design, such changes shall be at Tenant’s expense.

 

Tenants space plan requirements (included in build out by landlord):

Private Offices, conference rooms and work stations as shown on the attached floorplan;

 

	
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25

 

One large conference/board room:

Two-80 Sq.Ft. privacy offices;

One kitchenette/beverage service area(as shown on the attached floor plan) with pantry and storage with work to be completed to a similar standard(e.g. granite countertops, millwork etc.) as in the Building’s common area kitchenette;

Storage areas as shown on the attached floor plan

Reception area and desk . Landlord to provide $10,000.00 allowance for desk.

Telecommunications closet as shown on the attached floor plan;

Two copier areas.

$40.00 per square yard flooring allowance.

 

Any other tenant work required by Tenant beyond this scope is at Tenant’s expense.

 

Any other Landlord work required to comply with Laws, rules and regulations shall be at Landlord’s expense.

 

	
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26

 

EXHIBIT “C”
  BUILDING RULES

 

1.                                      Any sidewalks, lobbies, passages, elevators and stairways shall not be obstructed or used by Tenant for any purpose other than ingress and egress from and to the Demised Premises.  Landlord shall in all cases retain the right to control or prevent access by all persons whose presence, in the judgment of Landlord, shall be prejudicial to the safety, peace or character of the Building.  Landlord reserves the right to restrict and regulate the use of the public areas of the Building by Tenant, allocate certain elevator or elevators and the hours of use thereof for delivery service, and to designate which Building entrance or entrances must be used by persons making deliveries in the Building.

 

2.                                      The toilet rooms, toilets, urinals, sinks, faucets, plumbing or other service apparatus of any kind shall not be used for any purposes other than those for which they were installed, all damages resulting from any misuses of the fixtures by Tenant and/or Tenant’s Agents will be the responsibility of the tenant who caused the damages; no sweepings, rubbish, rags, ashes, chemicals or other refuse or injurious substances shall be placed therein or used in connection therewith or left in any lobbies, passages, elevators or stairways.

 

3.                                      Tenant shall not impair in any way the fire safety system and shall comply with all security, safety, fire protection and evacuation procedures and regulations established by Landlord or any governmental agency.  No person shall go on the roof without Landlord’s prior written permission; provided that Landlord shall approve installation of a satellite dish on the roof, at Tenant’s request and expense, subject to Landlord approval of the contractor and access coordinated through Landlord.

 

4.                                      Skylights, windows, doors and transoms shall not be covered or obstructed by Tenant, and Tenant shall not install any window covering which would affect the exterior appearance of the Building, except as approved in writing by Landlord.  Tenant shall not remove, without Landlord’s prior written consent, any shades, blinds or curtains in the Demised Premises.

 

5.                                      Without Landlord’s prior written consent, Tenant shall not hang, install, mount, suspend or attach anything from or to any sprinkler, plumbing, utility or other lines.  If Tenant hangs, installs, mounts, suspends or attaches anything from or to any doors, windows, walls, floors, or ceilings, Tenant shall spackle any and all holes and repair any damage caused thereby or by the removal thereof at or prior to the expiration or termination of the Lease.

 

6.                                      No additional locks or bolts of any kind may be used on any of the doors by any tenant, nor may any changes be made in existing locks or the mechanism thereof without the prior written consent of Landlord.  Each tenant must, upon the termination of its tenancy, return to Landlord all keys and building security passes and cards either furnished to, or otherwise obtained by such tenant.  If any keys furnished to tenant are lost, such tenant shall pay Landlord the cost of replacement.  Each tenant, before closing and leaving its Premises at any time, must see that its entrance doors are closed and locked, and the Building security regulations are followed.

 

	
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27

 

7.                                      Tenant shall not bring into, use, nor keep, in or about the Premises any matter having an offensive odor, flammable, combustible or explosive fluid, chemical, material or substance; nor shall any animals other than handicap assistance dogs, in the company of their masters, be brought into or kept in or about the Property.

 

8.                                      If Tenant desires to introduce electrical, signaling, telegraphic, telephonic, protective alarm or other wires, apparatus or devices, Landlord shall direct where and how the same are to be placed, and except as so directed, no installation boring or cutting shall be permitted.  Landlord shall have the right to prevent and to cut off the transmission of excessive or dangerous current of electricity or annoyances into or through the Building or the Demised Premises and to require the changing of wiring connections or layout at Tenant’s expense, to the extent that Landlord may deem necessary, and further to require compliance with such reasonable rules as Landlord may establish relating thereto, and in the event of non-compliance with the requirements or rules, Landlord shall have the right immediately to cut wiring or to do what it considers necessary to remove the danger, annoyance or electrical interference with apparatus in any part of the Building.  All wires installed by Tenant must be clearly tagged at the distributing boards and junction boxes and elsewhere where required by Landlord, with the number of the office to which said wires lead, and the purpose for which the wires respectively are used, together with the name of the concern, if any, operating same.  No machinery of any kind other than customary small business machines shall be allowed in the Demised Premises.  Tenant shall not use any method of heating, air conditioning or air cooling other than that provided by Landlord.  Any breach of this paragraph will authorize Landlord to enter the premises and remove whatever the tenant may have so installed, attached or brought in, and charge the cost of such removal and any damage that may be sustained thereby, as additional rent, payable at Landlord’s option, immediately or with the next rental payment.

 

9.                                      Tenant shall not place weights anywhere beyond the safe carrying capacity of the Building which is designed to normal office building standards for floor loading capacity.  Landlord shall have the right to exclude from the Building heavy furniture, safes and other articles which may be hazardous or to require them to be located at designated places in the Demised Premises.

 

10.                               No space in the Building may be used for the storage of merchandise, or for the sale of merchandise, goods or property of any kind at auction without the prior written consent of the Landlord, or for lodging, sleeping or any immoral or illegal purposes.

 

11.                               Tenant shall have the right, at Tenant’s sole risk and responsibility, to use only Tenant’s Share of the parking spaces at the Property as provided for in this Lease and as determined by Landlord.  Tenant shall comply with all parking regulations promulgated by Landlord from time to time for the orderly use of the vehicle parking areas, including without limitation the following: Parking shall be limited to automobiles, passenger or equivalent vans, motorcycles, light four wheel pickup trucks and (in designated areas) bicycles.  No vehicles shall be left in the parking lot overnight without Landlord’s prior written approval.  Parked vehicles shall not be used for vending or any other business or other activity while parked in the parking areas.  Vehicles shall be parked only in striped parking spaces, except for loading and unloading, which shall occur solely in zones marked for such purpose, and be so conducted as to not unreasonably interfere with traffic flow within the Property or with loading and unloading areas

 

	
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28

 

of other tenants.  All vehicles entering or parking in the parking areas shall do so at owner’s sole risk and Landlord assumes no responsibility for any damage, destruction, vandalism or theft.  Tenant shall cooperate with Landlord in any measures implemented by Landlord to control abuse of the parking areas, including without limitation access control programs; tenant and guest vehicle identification programs, and validated parking programs.  Each vehicle owner shall promptly respond to any sounding vehicle alarm or horn, and failure to do so may result in temporary or permanent exclusion of such vehicle from the parking areas.  Any vehicle which violates the parking regulations may be cited, towed at the expense of the owner, temporarily or permanently excluded from the parking areas, or subject to other lawful consequence.  Tenants may park only in strict compliance with all signs posted and regulations issued by Landlord, within spaces designated for parking and not in such a manner as to block other parking spaces, drives, loading areas or fire lanes.  All tenants herby authorize Landlord to remove from the parking lot any improperly parked vehicle, at the tenant’s sole risk and expense.  Tenants understand that they are fully responsible for assuring that their employees, agents, licensees and visitors comply with these parking rules, and will reimburse Landlord for all costs and expenses incurred enforcing the rules and will indemnify and hold harmless Landlord from any liability to such employees and other third parties for measures taken by Landlord to enforce the rules.

 

12.                               Tenant and its Agents shall not smoke in the Building or on any of its interior and exterior common areas (including parking lot).

 

13.                               Tenant shall provide Landlord with a written identification of any vendors engaged by Tenant to perform services for Tenant at the Demised Premises (examples: security guards/monitors, telecommunications installers/maintenance), and all vendors shall be subject to Landlord’s reasonable approval.  No mechanics shall be allowed to work on the Building or Building Systems other than those engaged by Landlord.  Tenants may not lay floor covering other than rugs, so that the same will come in direct contact with the floor of their premises, and if linoleum or other similar floor covering is desired (and such use is approved by Landlord), an interlining of builder’s deadening felt must be first affixed to the floor, by a paste or other material soluble in water.  The use of cement or other similar adhesive materials is expressly prohibited.  Metal cabinets on tile floors must be set on noncorrosive pads.  Tenant shall permit Landlord’s employees and contractors and no one else to clean the Demised Premises unless Landlord consents in writing.  Tenant assumes all responsibility for protecting its Demised Premises from theft and vandalism and Tenant shall see each day before leaving the Demised Premises that all lights are turned out and that the windows and the doors are closed and securely locked.

 

14.                               Tenant shall comply with any move-in/move-out rules provided by Landlord and with any rules provided by Landlord governing access to the Building outside of Normal Business Hours.  Throughout the Term, no furniture, packages, equipment, supplies or merchandise of Tenant will be received in the Building, or carried up or down in the elevators or stairways, except during such hours as shall be designated by Landlord, and Landlord in all cases shall also have the exclusive right to prescribe the method and manner in which the same shall be brought in or taken out of the Building.  Hand trucks, other than those equipped with rubber tires and side guards, may not be used in any tenant’s premises, or in common areas of the Building.  Any damage caused by tenant’s moving crew will be at the expense of the tenant.

 

	
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29

 

15.                               Tenant shall not place oversized cartons, crates or boxes in any area for trash pickup without Landlord’s prior approval.  Landlord shall be responsible for trash pickup of normal office refuse placed in ordinary office trash receptacles only.  Excessive amounts of trash or other out-of-the-ordinary refuse loads will be removed by Landlord upon request at Tenant’s expense.

 

16.                               Tenant shall cause all of Tenant’s Agents to comply with these Building Rules.

 

17.                               Landlord reserves the right to rescind, suspend or modify any rules or regulations and to make such other rules and regulations as, in Landlord’s reasonable judgment may from time to time be needed for the safety, care, maintenance, operation and cleanliness of the Building.  Notice of any action by Landlord referred to in this section, given to Tenant, shall have the same force and effect as if originally made a part of the foregoing Lease.  New rules or regulations will not, however, be unreasonably inconsistent with the proper and rightful enjoyment of the Demised Premises by Tenant under the Lease.

 

18.                               Landlord will have the right to prohibit any advertising by any tenant which, in Landlord’s opinion, tends to impair the reputation of the Building or its desirability as a building for offices, and upon written notice from Landlord, tenants will refrain from or discontinue such advertising.  Tenants may not use the name of the building or its owner in any advertising without the express written consent of Landlord.

 

19.                               Tenants may not install or permit the installation or use of any vending machines, or permit the delivery of any food or beverages to their premises, except by persons approved by Landlord and only under regulations fixed by Landlord.  No food or beverages may be carried in the common areas of the Building except in closed containers.  Tenants may not do any cooking, conduct any restaurant, luncheonette, or cafeteria for the sale or service of food or beverages to their employees or to others, or cause to permit any odors of cooking or other processes of an unusual or objectionable odor to emanate from their Premises.

 

20.                               Business hours are defined in Paragraph 7 of the Lease.  During non-business hours, Landlord reserves the right to deny access to the Building and any tenant’s premises to all persons who do not have written authorization from the tenant.  Each tenant is responsible for all person authorized to have access to the Building during non-business hours to sign a register on entering and leaving.

 

21.                               Each tenant, at its own expense, will provide artificial light for Landlord’s employees while doing janitorial service or other cleaning and in making repairs or alterations in such tenant’s premises.  Landlord will not be responsible to any tenant for loss of property from the tenant’s premises, no matter how the loss occurs, or for damage done to the furniture or other effects of any tenant by Landlord’s agents, other janitors, cleaners or employees, or contractors doing work in the tenant’s premises.

 

22.                               Canvassing, soliciting and/or peddling are prohibited in the Building and each tenant will cooperate to prevent the same.

 

	
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30

 

23.                               These Building Rules are not intended to give Tenant any rights or claims in the event that Landlord does not enforce any of them against any other tenants or if Landlord does not have the right to enforce them against any other tenants and such non-enforcement will not constitute a waiver as to Tenant.

 

24.                               Tenants and tenant’s agents shall not leave food exposed overnight, which may cause pest problems.

 

25.                               Tenants and tenant’s agents shall leave common areas in a condition in which they were first used including, but not limited to conference rooms, the common café area, patio areas, and coffee stations.

 

26.                               Kitchen refrigerator shall be cleaned every Friday afternoon.  Management shall dispose of any food left in the refrigerator at the time of the cleaning.

 

27.                               No food shall be heated or cooked in the kitchen area that, in the opinion of management, has an offensive odor.  The heating or cooking of fish or popcorn is prohibited.

 

28.                               Landlord has the exclusive right to make changes or additions to the kitchen rules.

 

29.                               The conference rooms are for the exclusive use of the tenants in the building.  No outside companies, or off site employees may book or use the conference rooms without the presence of the tenant who is housed within the building.  The conference room is not to be used as a satellite office and is only to be used on a temporary basis.  No continuous bookings are allowed or any bookings in excess of 2 hours without the permission of landlord.

 

30.                               Tenant has the right to install and maintain a satellite dish and/or antenna on the roof of the building for its own business purposes.  The satellite dish location must be approved by Landlord and cannot be unsightly, in landlord’s opinion.  Tenant’s access to the roof must be approved in advance and be under the supervision of Landlord.  Any damage to the roof caused by the installation or maintenance of the satellite dish/antenna shall be at the expense of tenant.

 

	
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31

 

EXHIBIT “D”
  CLEANING SCHEDULE

 

The Building is to be cleaned in accordance with the below stated specifications.  These specifications represent the minimum acceptable standard to the Landlord and are subject to change as conditions require.  Lobbies, corridors, office areas, elevators, stairwells, and lavatories will be cleaned five (5) days per week and maintained in a manner acceptable to Landlord in accordance with local and state health code.  Window cleaning, exterior and interior will be performed no less than two times per year, and in a manner acceptable to Landlord:

 

COMMON AREA ENTRANCE & LOBBIES:

 

Daily (Five days per week):

 

·                                          Clean entrance door glass

·                                          Spot clean walls and doors

·                                          Vacuum entrance walk-off mats

·                                          Sweep and mop vestibule floor

·                                          Clean lobby atrium area including furniture, tables and stairway, sift sand, clean exterior ashtrays

·                                          Dust or damp mop hard surface floors

·                                          Wash building directory

 

Weekly:

 

·                                          Dust high & low surfaces in lobby.  Vertical dust lobby furniture

 

Quarterly:

 

·                                          Thoroughly clean floors (side entrances), as needed

 

COMMON AREA CORRIDORS:

 

TENANT OFFICE AREAS (INCLUDING GENERAL & EXECUTIVE OFFICES):

 

Daily (Five days per week):

 

·                                          Empty and reline waste baskets

·                                          Remove waste to designated area

·                                          Horizontal dust and spot clean walls

·                                          Properly arrange furniture

·                                          Spot clean suite doors and windows

·                                          Spot clean carpets in office

·                                          Fully vacuum carpeted offices

·                                          Spot clean conference room tables and countertops

 

	
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32

 

Weekly:

 

·                                          Dust vertical surfaces

·                                          Polish desks & tops

·                                          Dust high & low surfaces in offices (bi-weekly) • Dust tops of partition walls

 

Monthly:

 

·                                          Detail vacuum all carpets

·                                          Wipe vinyl/leather chair parts

·                                          Vacuum upholstered furniture or as needed (6 x per year)

·                                          Vacuum under chair mats

·                                          Dust window treatments

·                                          Damp wipe baseboard moldings.  Vacuum ceiling vents, louvers and ceiling diffusers.

 

RESTROOMS: INCLUDING ALL PRIVATE AND EXECUTIVE RESTROOMS:

 

Daily (Five days per week):

 

·                                          Spot clean doors, walls, partitions

·                                          Empty trash receptacle in restroom

·                                          Clean and refill paper dispensers

·                                          Clean restroom countertop

·                                          Clean sinks and faucets

·                                          Clean mirror over countertop

·                                          Clean and disinfect toilets and urinals

·                                          Sweep and wet mop restroom floor with disinfectant

 

Weekly:

 

·                                          Dust tops of restroom partitions

·                                          Pour water in floor drain trap

 

Quarterly:

 

·                                          Clean pipes under each sink

·                                          Wash restroom partitions

·                                          Scrub restroom floor

 

STAIRWELLS:

 

Daily (Five days per week):

 

·                                          Police stairwell for trash and mop or sweep spills.

 

	
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33

 

Weekly:

 

·                                          Thoroughly clean stairwell (sweep, vacuum, mop and dust)

·                                          Dust and disinfect handrails

 

Bi-Weekly:

 

·                                          Clean fire extinguisher units and/or cabinets

 

ELEVATORS:

 

Daily (Five days per week):

 

·                                          Vacuum elevator completely, spot clean as needed

·                                          Dust and spot clean elevator door

·                                          Clean and polish elevator tracks and all metal surfaces

·                                          Disinfect buttons and hand rails

 

JANITOR CLOSETS AND STORAGE ROOMS:

 

Daily (Five days per week):

 

·                                          Clean janitor closets

·                                          Clean slop sinks

·                                          Check all locks before leaving

·                                          Report maintenance items to technician via form

 

Quarterly:

 

·                                          Strip & wax floors if applicable

 

WINDOWS

 

Two times per year, or as needed

 

·                                          Wash inside and outside of windows of Building

 

CARPET CLEANING (Common Area)

 

·                                          As needed

 

Tenant space carpet to be cleaned at Tenant request and expense.  Cleaning based on needs of each Tenant space.

 

	
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34

 

COMMON AREA CAFE/LOUNGE:

 

Daily ( 9:00AM- 1:00PM five days per week):

 

Empty trash receptacles

 

·                                          Disinfect counter tops

·                                          Put away dishes and utensils each morning

·                                          Clean sinks and faucet

·                                          Run dishwasher nightly

·                                          Sweep, mop, vacuum floors

 

Weekly:

 

Throw out food items (as determined by management) in refrigerators

 

[Remainder of page intentionally blank]

 

	
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35

 

IN WITNESS WHEREOF: Landlord and Tenant have signed and sealed this Lease, pages 1 through 29, including Rider A; Exhibits “A”, “B”, “C”, “D”, “E” ; as of this 18th day of September 2013.

 

 

	
In Presence of:
    	
 
    	
LANDLORD: Merrill Street Investments, LLC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
As to Landlord
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
TENANT:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
As to Tenant
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Print name
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
As to Tenant
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Print name
    

 

 

LANDLORD ACKNOWLEDGMENT

STATE OF MICHIGAN

COUNTY OF OAKLAND

 

On this 18 day of      , 2013, before me personally appeared                                                             to me known to be the person described herein and who executed the foregoing Lease and acknowledges that he/she/they executed the same as his/hers/their free act and deed.

 

	
 
    	
Signature
    	
 
    
	
 
    	
Name
    	
 
    
	
 
    	
Notary Public 
    	
 
    	
 
    	
County, Michigan
    	
 
    
	
 
    	
My Commission Expires:
    	
 
    
	
 
    	
Acting in the County   of:
    	
 
    
										

 

[Acknowledgments continue on following page]

 

	
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36

 

TENANT ACKNOWLEDGMENT

STATE OF MICHIGAN

COUNTY OF OAKLAND

 

On this 13th day of Sept, 2013, before me personally appeared                                         to me known to be the person described herein and who executed the foregoing Lease and acknowledges that he/she/they executed the same as his/hers/their free act and deed.

 

	
 
    	
Signature
    	
 
    
	
 
    	
Name
    	
 
    
	
 
    	
Notary Public 
    	
 
    	
 
    	
County, Michigan
    	
 
    
	
 
    	
My Commission Expires:
    	
 
    
	
 
    	
Acting in the County   of:
    	
 
    
										

 

 

CORPORATE ACKNOWLEDGMENT

STATE OF MICHIGAN

COUNTY OF OAKLAND

 

On this 13th day of Sept, 2013 before me personally appeared                       and              to me personally know, who being duly sworn, did each for himself/herself/themselves say that he/she/they are respectively the President and                 of the corporation, and that  said instrument was signed and sealed on behalf of said corporation by authority of its board of directors: and said                         acknowledged said instrument to be the free act and deed of said corporation.

 

	
 
    	
Signature
    	
 
    
	
 
    	
Name
    	
 
    
	
 
    	
Notary Public 
    	
 
    	
 
    	
County, Michigan
    	
 
    
	
 
    	
My Commission Expires:
    	
 
    
	
 
    	
Acting in the County   of:
    	
 
    
										

 

	
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EXHIBIT “E”
  Parking Area Depiction

 

Parking Area “Exhibit E”

 

 

	
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38

 

 

LEASE AMENDMENT

 

Pursuant to that certain Lease dated September 18, 2013 , between Merrill Street Investments, LLC, as Landlord, and Conifer Holdings, Inc., as Tenant, for the Premises commonly known as 550 Merrill Street, Ste 100, Birmingham, Michigan, the parties desire to amend the Lease as follows;

 

1.                                      Section 1(i)(i) is hereby deleted and replaced with the following:

 

Substantial Completion:  the date on which the last of the following have occurred, but in no event sooner than April 1, 2014: (i) all of Landlords work necessary for issuance of temporary certificate of occupancy or its equal, has been completed, provided that the only work to be completed or corrected by Landlord in order to obtain the full certificate of occupancy does not (and the work itself will not) materially interfere with the use of the Demised Premises by Tenant; (ii) Landlord delivers possession of the Demised Premises to Tenant in the condition required under this Lease; and (iii) ten (10) days after Landlord provides written notice to Tenant that the Demised Premises are substantially complete and available for inspection and Tenant provides a punch list to Landlord confirming that the only work remaining to be completed or corrected by Landlord is not likely to interfere with Tenant’s use of the Demised Premises (provided that Tenant must provide the punch list to Landlord within seven (7) days after receipt of notice of substantial completion under this subsection (iii).

 

2.                                      The remainder of the Lease remains unmodified and in full force and effect.

 

3.                                      This Amendment is effective and dated as of March 5, 2014.

 

	
Landlord:
    	
 
    	
Tenant:
    
	
 
    	
 
    	
 
    
	
Merrill Street Investments, LLC
    	
 
    	
Conifer Holdings, Inc.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
By:
    	
 
    
	
Name:
    	
 
    	
 
    	
Name:
    	
 
    
	
Its:
    	
 
    	
 
    	
Its:
    	
 
    

 

 

SECOND LEASE AMENDMENT

 

Pursuant to that certain Lease dated September 18, 2013, as amended by Lease Amendment dated as of March 5, 2014 (as amended, the “Lease”), between Merrill Street Investments, LLC, as Landlord, and Conifer Holdings, Inc., as Tenant, for the Premises commonly known as 550 Merrill Street, Suite 100, Birmingham, Michigan, the parties desire to amend the Lease as follows:

 

1.                                      Notwithstanding anything in the Lease to the contrary, the Landlord shall cause its general contractor to install an additional 1.5 ton air conditioning unit to service the Leased Premises pursuant to plans/specifications approved by Tenant and Landlord.  Such additional unit work shall be included within the Landlord’s existing construction contract to the fullest extent possible so as to maximize the benefit of any contractor warranties.  Tenant shall pay $7542.50 toward Landlord’s out of pocket costs of the purchase and installation of the unit.  From and after the date such unit is placed in service, Tenant shall at its expense, be responsible for maintenance and repair of such unit, provided that replacement is at Tenant’s election, and at any time Tenant can elect to no longer use the unit (in which case Tenant’s obligations with respect to maintenance, repair, or replacement shall cease).  Tenant shall, at its expense, enter into a customary maintenance contract with a bona fide HVAC service company for the duration of Tenants use of the unit.  Tenant shall be responsible for all damages caused by or resulting from Tenants maintenance, repair, or replacement of the unit.  Should Tenant elect to no longer use the unit, Tenant, at its expense, shall cause the unit to be removed (along with all cables, wires, and ductwork in connection with said unit) and shall repair all damage caused by said removal.  Landlord shall submit any and all repairs relating to such unit as claims against its contractor for the full period of the warranty and enforce such warranty as and when requested by Tenant.

 

2.                                      The remainder of the Lease remains unmodified and in full force and effect.

 

3.                                      This Amendment is effective and dated as of June 2, 2014, 2014.

 

	
Landlord:
    	
 
    	
Tenant:
    
	
 
    	
 
    	
 
    
	
Merrill Street Investments, LLC
    	
 
    	
Conifer Holdings, Inc.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
By:
    	
 
    
	
Name:
    	
 
    	
 
    	
Name:
    	
 
    
	
Its:
    	
 
    	
 
    	
Its:
    	
 
    

 

 

THIRD LEASE AMENDMENT

 

This Third Lease Amendment is made as of the 28th day of August, 2014, by and between Merrill Street Investments, LLC, a Michigan Limited Liability Company, whose address is 320 Martin Street, Suite 100, Birmingham, Michigan 48009 (“Landlord”), and Conifer Holdings, Inc., whose address is 550 Merrill Street, Suite 200, Birmingham, Michigan, (“Tenant”).

 

Recitals Underlying This Agreement:

 

A.                                    Landlord and Tenant are parties to a certain lease dated September 18, 2013 and amended on March 5, 2014 and June 2, 2014 (collectively, the “Lease”) concerning the premises known as Suite 200, located at 550 Merrill Street, Birmingham, Michigan (the “Premises”).

 

B.                                    Defined terms utilized in this Third Amendment shall, unless otherwise defined herein, have the same meaning attributed to them under the Lease

 

NOW, THEREFORE, in consideration of the promises set forth below and for other good and valuable consideration, the receipt and adequacy of which are acknowledged by Landlord and Tenant, the parties agree as follows:

 

4.                                      Tenant desires to expand the Premises by the incorporation of Suite 110 conterminously, which consists of 2,159 square feet of rentable space and 1,755 square feet of usable space (“Additional Space”).

 

5.                                      That commencing on the date Landlord delivers possession of Suite 110, to Tenant, substantially completed (i.e., Substantial Completion as defined in the Lease), as per the approved plan attached hereto as Exhibit “A”, the annual rental for Suite 110 shall be as set forth below, payable in equal monthly installments, due on the first day of each month, as follows:

 

	
 
    	
 
    	
ANNUAL
    	
 
    	
MONTHLY
    	
 
    
	
Year 1
    	
 
    	
$
    	
70,167.50
    	
 
    	
$
    	
5,847.29
    	
 
    
	
Year 2
    	
 
    	
$
    	
71,462.90
    	
 
    	
$
    	
5,955.24
    	
 
    
	
Year 3
    	
 
    	
$
    	
72,758.30
    	
 
    	
$
    	
6,063.19
    	
 
    
	
Year 4
    	
 
    	
$
    	
74,053.70
    	
 
    	
$
    	
6,171.14
    	
 
    
	
Year 5
    	
 
    	
$
    	
75,349.10
    	
 
    	
$
    	
6,279.09
    	
 
    
	
Year 6
    	
 
    	
$
    	
76,644.50
    	
 
    	
$
    	
6,387.04
    	
 
    
	
Year 7
    	
 
    	
$
    	
77,939.90
    	
 
    	
$
    	
6,494.99
    	
 
    
	
Year 8
    	
 
    	
$
    	
79,235.30
    	
 
    	
$
    	
6,602.94
    	
 
    
	
Year 9
    	
 
    	
$
    	
80,530.70
    	
 
    	
$
    	
6,710.89
    	
 
    
	
Year 10
    	
 
    	
$
    	
81,826.10
    	
 
    	
$
    	
6,818.84
    	
 
    
	
Year 11 (if applicable) 
    	
 
    	
$
    	
83,121.50
    	
 
    	
$
    	
6,926.79
    	
 
    

 

6.                                      Landlord shall achieve Substantial Completion of the Additional Space within 45 days from the date hereof.

 

7.                                      Tenant shall pay 7.22 % of the Operating Expenses (for Suite 110) as set forth in paragraph 5 of the Lease, which results in Tenant’s Share increasing from 47.7% to 54.92%.

 

 

8.                                      Tenant shall be given a built-out suite from Landlord for the Additional Space pursuant to the plans set forth in Exhibit “A” attached hereto.  Any changes requested by Tenant to the plans shall be at Tenant’s expense, unless due to the failure of the plans to comply with applicable law, rule or regulation.

 

9.                                      The number of uncovered parking spaces for Tenant’s use has been increased by two additional spaces prior to the effective on the date of this Amendment.

 

10.                               For point of clarification, any references in the Lease to “Suite 100” relating to the Premises, shall be deemed to refer to “Suite 200.”

 

11.                               The remainder of the Lease remains unmodified and in full force and effect.

 

12.                               This Third Amendment, together with the Lease, embodies the entire agreement and understanding between the parties concerning the subject matter hereof and replaces and supersedes any prior or contemporaneous negotiations or understandings.

 

 

IN WITNESS WHEREOF, Landlord and Tenant have executed this Third Amendment as of the day and year first above written.

 

 

	
TENANT:    Conifer Holdings, Inc.
    	
 
    	
LANDLORD:    Merrill Street  Investments, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Its:
    	
 
    	
 
    	
Its:Exhibit 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:

 

	Milestone Event	Payment
	(i) The Effective Date	$10,000,000
	[***]	[***]
	[***]	[***]
	[***]	[***]
	[***]	[***]
	[***]	[***]
	[***]	[***]
	[***]	[***]
	[***]	[***]
	[***]	[***]
	(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 paid
more than once, if the conditions to such payment are met by different Licensed Products, 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).

 

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(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.

 

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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.

 

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(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

 

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(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.

 

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(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

 

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(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

 

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(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.

 

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(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.

 

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(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

 

    	 

    	 

    

EXHIBIT B

 

GK ACTIVATOR PROJECT DOCUMENTS

 

	 
	Clinical NN9101
	
        Clinical documentation and data concerning the single
dose study NN9101-1671including:

        [***]

         

	
        Clinical documentation and data concerning the single
dose study NN9101-1743 intended to be conducted in Japan, including:

        [***]

         

	Clinical Development Plan, CDP

 
	Clinical
    NN9101 analytical 

 
	
        Reports or other documentation including the following:

        [***]

         

	Inventory and location of all analytes, metabolites, and internal standards and availability of stable isotope labeled compounds relevant to bioanalysis of NNC 80-0091 in human matrices
	List of stored samples (plasma, serum, urine, etc.) where (CROs as well as inhouse), quantity, analysis status, storage temperature
	 
	Pre-clinical
	
        All NNC 80-0091, NNC 80-0139 and NNC 80-3315 pre-clinical
reports and protocols, including:

        [***]

         

	List of CROs involved in pre-clinical studies.
	List of analytical methods used in pre-clinical studies, including list of CROs 
	Validation reports for analytical methods used to characterize preclinical or clinical exposure.
	List of outstanding samples, if any, at CROs as well as in-house
	Inventory of  compounds and materials connected to pre-clinical studies
	[***]
	 
	Chemistry Manufacturing and Control – CMC
	
        Drug Substance (API) and Process Development

        Information and documents on process development of
drug substance NNC 80-0091, NNC 80-0139 and NNC 80-3315:

        [***]

         

	
        Drug Substance Up-scaling and Manufacturing

        Information and documents on up-scaling and manufacturing
of drug substance NNC 80-0091, NNC 80-0139 and NNC 80-3315:

        [***]

         

	

    	 

    	 

    

	
        Analytical Controls of Drug Substance (API)

        Information and documents on analytical controls of
drug substance NNC 80-0091, NNC 80-0139 and NNC 80-3315:

        [***]

         

	
        Structural and Physico-chemical Characterisation
of Drug Substance

        Information and documents on structural and physico-chemical
characterisation of drug substance NNC 80-0091, NNC 80-0139 and NNC 80-3315:

        [***]

         

	
        Drug Product Formulation Development

        Information and documents on drug product and formulation
development of NNC 80-0091, NNC 80-0139 and NNC 80-3315:

        [***]

         

	
        Drug Product Up-scaling and Manufacturing

        Information and documents on drug product up-scaling
and manufacturing of drug products of NNC 80-0091, NNC 80-0139 and NNC 80-3315:

        [***]

         

	
        Analytical Controls of Drug Product

        Information and documents on analytical controls of
drug products of NNC 80-0091, NNC 80-0139 and NNC 80-3315:

        [***]

         

	 
	Regulatory
	Correspondence with Health Authorities with respect to NN9101
	 
	Discovery
	List of all in vitro and in vivo preclinical pharmacology studies conducted or ongoing with the NNC 80-0091, NNC 80-0139, NNC 80-3315 compounds and their respective protocols and study reports

 
	Structures of NNC 80-0091, NNC 80-0139 and NNC 80-3315
	Preferred chemical route of synthesis for NNC 80-0091, NNC 80-0139 and NNC 80-3315
	SAR information for NNC 80-0091, NNC 80-0139 and NNC 80-3315
	Inventory of compounds synthesized in the GK program, including structures and physiochemical properties 
	Test results for compounds synthesized in the GK program as an extract of the NNCD-Bio Data base.

    	 

    	 

    

 

EXHIBIT C

 

STUDIES TO BE COMPLETED BY NOVO

 

	 
	Clinical
	[***]

 
	Pre-clinical
	

NN9101 (NNC 80-0091) pre-clinical pre-phase 1 and 2 study including: 

[***]

 
	

NN9108 (NNC 80-3315) pre-clinical pre-phase 1 study package
including: 

[***]

 
	NN9139 (NNC 80-0139) pre-clinical pre-phase 1 study package including:

[***]

 
	

NN9101 (NNC 80-0091) reproduction toxicity studies: 

[***]

 
	NN9108 (NNC 80-3315) reproduction toxicity studies:

[***]

 
	

NN9139 (NNC 80-0139) reproduction toxicity studies: 

[***]

 
	 
	Chemistry Manufacture and Control – CMC

•   Production of two starting materials (compound A and B) for use for NNC
80-3315 API manufacturing
	 
	Discovery

[***]

 

 

    	 

    	 

    

 

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 E

Chemical Structures
of Certain Compounds

[***]

NN9101 = NNC 0080-0000-0091 = NNC 80-0091 = [***]

 

[***]

NN9139 = NNC 0080-0000-0139 = NNC 80-0139 = [***]

 

[***]

NN9108 = NNC 0080-0000-3315 = NNC 80-3315 = [***]

 

[***]

NNC 0080-0000-4288 = NNC 80-4288 = [***]

 

 

    	 

    	 

    

 

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: [***]

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