Exhibit 10.3

 

PATENT SECURITY AGREEMENT

 

This PATENT SECURITY AGREEMENT (“Agreement”) is made this 17th day of February,
2006, by and between Biosource America, Inc., a Texas corporation, having its
principal office at 2777 Allen Parkway, Suite 800, Houston, Texas 77019
 (“Grantor”), and BIOsource Fuels, LLC, a Wisconsin limited liability company,
having its principal office at 3111 152nd Avenue, Kenosha, Wisconsin 53144
(“Grantee”).

 

WHEREAS, Grantor is the owner of the U.S. patent applications listed on the
attached Schedule A (the “Patent Applications”);

 

WHEREAS, Grantee has extended a loan to Grantor pursuant to the terms and
conditions of that certain Promissory Note dated the date hereof (“Note”) made
by Grantor in favor of Grantee;

 

WHEREAS, under a Security Agreement dated the date hereof (“Security Agreement”)
between Grantor and Grantee, Grantor has granted to Grantee a security interest
in certain of its assets (including the Patent Applications) to secure the
performance of the obligations of Grantor under the Note; and

 

WHEREAS, Grantor and Grantee by this instrument seek to confirm and make a
record of the grant of a security interest in the Patent Application.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of
which are hereby acknowledged, Grantor does hereby acknowledge that it has
granted to Grantee a security interest in all of Grantor’s right, title and
interest in, to, and under the Patent Application. Grantor also acknowledges and
confirms that the rights and remedies of Grantee with respect to the security
interests in the Patent Application granted hereby are more fully set forth in
the Note and the Security Agreement, the terms and provisions of which are
incorporated herein by reference.

 

 

Biosource America, Inc.

BIOsource Fuels, LLC

 

By:

Kenosha Beef International, Ltd., Manager

 

 

 

By:

/s/ J.D. McGraw

 

 

By:

 

 

Its:

President

 

 

Its:

 

 

 

 

 

 

STATE OF TEXAS

)

STATE OF WISCONSIN

)

 

) SS:

 

)  SS:

COUNTY OF HARRIS

)

COUNTY OF KENOSHA

)

 

 

 

 

Subscribed and sworn to before me

Subscribed and sworn to before me

this 17th day of February, 2006.

this        day of February, 2006.

 

 

Cecilia D. Sanchez

 

 

 

 

 

 

 

Notary Public, State of Texas

Notary Public, State of                            

My Commission Expires:

Oct 26, 2009

 

My Commission Expires:                

 

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SCHEDULE A

 

U.S. Patent Applications

 

Patent Application No.

 

Title

 

Filing Date

10/766,740

 

Production of Biodiesel and Glycerin from High Free Fatty Acid Feedstocks

 

January 26, 2004

60/537,251

 

Production of Biodiesel and Glycerin from High Free Fatty Acid Feedstocks

 

January 15, 2004

60/443,049

 

Industrial Process for the Production of Biodiesel and Glycerin from High Free
Fatty Acid Feedstocks

 

January 27, 2003

 

(but excluding any right, title and interest Mr. Kirk Cobb may have in U.S.
Provisional App. Serial No. 60/443,049 as a named inventor thereon)

 

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NOTE:  COMPLETE AND ATTACH FORM PTO 1595

 

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