Document:

exv10w34

Pages where confidential treatment has been requested are stamped

‘Confidential Treatment
Requested and the Redacted Material has been separately filed with the Commission,’ and the
confidential section has been marked as follows: [***].

Exhibit 10.34

EXECUTION COPY

AMENDED AND RESTATED SPONSORED RESEARCH AGREEMENT

BETWEEN

CERES, INC.

and

TEXAS AGRILIFE RESEARCH

This Amended and Restated Sponsored Research Agreement (“Agreement”)

is made and entered into as of
September 24, 2011 (the “Effective Date”) by and between Ceres, Inc., a corporation with principal
offices in Thousand Oaks, California, a Delaware corporation (“CERES”) and Texas AgriLife Research
(“AGRILIFE”) with principal offices in College Station, Texas, a member of The Texas A&M University
System (“TAMUS”), an agency of the State of Texas. CERES and AGRILIFE are collectively referred to
as “Parties” and individually as a “Party.”

WHEREAS, AGRILIFE and CERES have in common the desire to encourage and

facilitate the discovery,
dissemination and application of new knowledge, and CERES desires to support said research;

WHEREAS, AGRILIFE, formerly known as The Texas Agricultural Experiment Station,

a member of TAMUS
(“TAES”), and CERES have conducted such research under that certain Sponsored Research Agreement,
dated as of August 29, 2007 (as amended, supplemented and otherwise modified by way of those
certain written amendments entered into by the Parties, effective as of June 18, 2008, July 15,
2008, October 22, 2008 and August 29, 2007, the “Original Agreement”);

WHEREAS, the Parties desire to continue to improve germplasm, develop lines and

hybrids of sorghum
and its interbreeding species and develop DNA markers and marker platform technology to advance the
development of biomass/bioenergy crops and enter into a master research agreement to facilitate
such activities;

WHEREAS, the Parties desire for CERES to have rights to commercialize such

technologies, germplasm
and other results arising out of the research conducted by AGRILIFE under this Agreement in
connection with the production of bioenergy, biofuels, biochemical, sugar, and other bioproducts;
and

WHEREAS, pursuant to Article 16.A of the Original Agreement the Parties

desire to amend and restate
the Original Agreement in its entirety, incorporating by reference the Appendices to the Original
Agreement as provided in Article II.C hereof, and proceed with the Program (as defined below) under
this Agreement.

NOW THEREFORE, in consideration of the mutual covenants and premises contained

in

			
	 	 	 
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this Agreement, the receipt and sufficiency of which is acknowledged, the

Parties agree as follows:

	I.	 	PROJECT MANAGEMENT
	 
	 	 	A. AGRILIFE will perform research projects as agreed upon by the Parties (each such
research project, a “Project,” and all such Projects, together, the “Program”). The
proposals for, review of, recommendations to the Executive Committee for approval of, and
implementation of the Projects under the Program will be overseen by a committee of four
members (the “Management Committee”). Two members will be nominated by each Party to serve
on the Management Committee.
	 
	 	 	B. The Management Committee will be a forum for communication and exchange of information
regarding the implementation of the Projects under the Program. It shall have no authority
to make any modifications to this Agreement, but may formulate recommendations to change
the Projects under the Program or to take advantage of additional funding opportunities and
present such recommendations to CERES and AGRILIFE for consideration. AGRILIFE agrees to
permit CERES representatives to confer as necessary with Principal Investigators. It is
understood and agreed that the Management Committee and CERES representatives have no
authority to supervise, direct or control the work performed hereunder.
	 
	 	 	C. Recommendations of the Management Committee shall be made by unanimous agreement and
recorded in a manner prescribed by the Management Committee as a true record of the
recommendations. If the Management Committee cannot come to a unanimous agreement on any
matter for which it is responsible, then the Management Committee shall refer the matter to
the Executive Committee.
	 
	 	 	D. The Management Committee shall have the discretion to designate any selected gene or
group of genes as a cloning target (“Cloning Target”). The Management Committee shall also
have the discretion to decide that a selected gene or group of genes is no longer a Cloning
Target. The selection or deselection of a Cloning Target will be communicated to all
Principal Investigators conducting Projects under the Agreement at the time of such
selection or deselection.
	 
	 	 	E. The Management Committee will meet at least once every four (4) months with additional
meetings as mutually agreed upon and exchange information and data regarding the
implementation of the Program. At least one (1) week before each Management Committee
meeting, AGRILIFE will provide CERES with a report on the Program activities performed
since the last Management Committee meeting. A preferred format for such reports will be
created by the Management Committee. Such reports will contain at least the following with
respect to each pending Project (“Basic Report Information”):

			
	 	 	 
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	 	•	 	status update;
	 
	 	•	 	actual spending relative to budget, including FTE breakout;
	 
	 	•	 	description of Subject Inventions and germplasm generated during the period; and
	 
	 	•	 	copies of slide presentations summarizing research progress.

	 	 	Upon CERES’ request, additional information, if not specifically included in the Basic
Report Information, shall be delivered to CERES as supporting information with respect to
each pending Project at the related meeting (“Additional Information”), including, without
limitation:

	 	•	 	breeding records;
	 
	 	•	 	copies of field or greenhouse books and records;
	 
	 	•	 	DNA sequencing results of genotypes;
	 
	 	•	 	detailed descriptions of each genotype sequenced including phenotypes collected;
	 
	 	•	 	other genotyping data collected including QTL’s and markers;
	 
	 	•	 	current markers being utilized for genotyping breeding materials; and
	 
	 	•	 	as may be requested from time to time, copies of raw field trial data.

	 	 	In addition to providing the Basic Report Information and Additional Information to CERES
in connection with such Management Committee meetings, upon CERES’ request, AGRILIFE shall
update the Basic Report Information and Additional Information and provide such updated
Basic Report Information and Additional Information to CERES within ten (10) days after
AGRILIFE’s receipt of such request.

	II.	 	PROGRAM MANAGEMENT

	 	 	A. A committee of four (4) members (the “Executive Committee”) will oversee the activities
between the Parties for the Program. Two (2) members will be nominated by each Party to
serve on the Executive Committee. The Executive Committee will meet at least once every
six (6) months with additional meetings as mutually agreed upon by the Parties. Each Party
will ensure that at least one nominee has sufficient signature authority to enact the
obligations of the Executive Committee set forth in this Agreement. Any of the members of
the Management Committee may join any such meetings of the Executive Committee unless the
Executive Committee unanimously indicates otherwise.
	 
	 	 	B. The Executive Committee will be responsible and have authority for the approval,
rejection, modification, extension and cancellation of Projects and for overseeing the
budget for Projects. In connection with each Project, the Executive Committee

1. will be responsible for tracking the milestones specified in

the work statement
for such Project and will have authority to cancel such

			
	 	 	 
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Project in the event any
such milestone is not met; and

2. will have authority to increase or decrease the budget on a

semi-annual basis
for such Project.

	 	 	In addition, the Executive Committee will have authority for re-allocating priorities
within the Program based on, among other things, any market events and/or any technical
successes achieved or difficulties encountered in connection with any Project.
	 
	 	 	C. Notwithstanding the meeting frequency described in Article II.A., the Executive
Committee shall hold a special meeting within ten (10) business days of the Effective Date.
At such special meeting, the Executive Committee will consider and take actions it deems
appropriate with respect to the following matters: (1) reviewing and confirming the status
of the Parties’ existing activities under the Original Agreement as further described in
Appendices A, B and C as amended, of the Original Agreement, (collectively, the “Original
Workplan”); (2) determining which aspects of the Original Workplan will remain active and
transition into Projects under this Agreement; (3) determining the handling of any aspects
of the Original Workplan which will not transition into Projects under this Agreement; and
(4) any other matters which the Executive Committee deems appropriate to facilitate the
transition of Original Workplan activities under the Original Agreement to Projects under
this Agreement. The Original Workplan is incorporated herein by reference; however, the
Parties acknowledge that each Proposed Project will have a budget and that Appendix B is
incorporated herein for informational purposes only.
	 
	 	 	D. Either Party may submit proposals to the Management Committee for any research and
development project that such Party wishes to include as a Project under this Agreement
(“Proposed Project”). Any such proposal shall be in the form of Appendix A and shall
include at least a reasonably detailed description of such Proposed Project, the goal(s) of
such Proposed Project and the proposed timeline, milestones and budget for such Proposed
Project. The Management Committee will decide whether to recommend acceptance of the
Proposed Project to the Executive Committee within twelve (12) months after its receipt of
the proposal for such Proposed Project. The Executive Committee shall consider the
Management Committee’s recommended Proposed Projects, if any, at each regular meeting of
the Executive Committee, and make the final decision whether to accept or reject each
Proposed Project. If the Executive Committee decides to accept and proceed with any such
Proposed Project as a new Project under this Agreement, the Executive Committee shall
request that the Management Committee develop a scope of work statement (including, without
limitation, budget, targeted start date and completion date and agreed upon milestones and
deliverables) with respect to such new Project, substantially in the form of Appendix A.
Upon the execution of such work statement by the Parties, the
research project described in such work statement shall be a Project under this Agreement.

			
	 	 	 
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	 	 	E. In the event that, following completion of the Proposed Project process set forth in
Article II.C., the Executive Committee decides not to fund a Proposed Project within the
CERES Field (“Unfunded Proposed Project”), such Unfunded Proposed Project shall be referred
by the Executive Committee back to the Management Committee. If AGRILIFE desires to pursue
alternate funding opportunities, AGRILIFE shall present not more than one (1) Unfunded
Proposed Project annually to the Executive Committee for reconsideration at a regular
meeting of the Executive Committee. Upon the Parties’ mutual written agreement, the
Management Committee may recommend in writing that the Executive Committee reconsider
certain additional Unfunded Proposed Projects from time to time as part of the Executive
Committee’s regular meeting agenda. The Executive Committee shall be responsible for
determining the outcome of any such Unfunded Proposed Project in a manner which shall not
unduly impact the respective interests of the Parties and which is subject to the
provisions of Article IV hereof. The Parties contemplate that such potential outcomes may
include, but not be limited to, engaging in joint efforts to obtain funding from agencies
or organizations that provide grants for research, creating jointly-owned companies that
may pursue the Proposed Project, delaying the funding by CERES of such Proposed Project for
a reasonable period, or revising the statement of work and budget for the Proposed Project.
	 
	 	 	F. If the Executive Committee cannot come to a unanimous agreement on any matter for which
it is responsible, then the members of the Executive Committee nominated by CERES shall
make the final decision with regard to such matter, except that the members of the
Executive Committee nominated by AGRILIFE shall make the final decision with regard to
whether AGRILIFE has the capacity and capability to perform any Project or whether any
proposed budget for any Project is reasonably feasible.

	III.	 	RESEARCH MANAGEMENT
	 
	 	 	A. The research under each Project will be supervised by the Principal Investigator(s)
identified in such Project. No substitution of any such Principal Investigator(s) will be
made without the prior written consent of CERES.
	 
	 	 	B. Each Party acknowledges and agrees that the Projects are research in nature and hence
the achievement of the deliverables and/or milestones specified in the Projects cannot be
guaranteed. Neither Party guarantees any particular outcome or specific yield arising from
any Project.
	 
	 	 	C. Each Party will require any and all of its employees and researchers who will perform
Program activities to sign a statement stating that they have read and understand the
obligations of AGRILIFE under Article VI and Article XI. AGRILIFE affirms that, as per The
Texas A&M University System Policy 17.01, Subsection 2.2.1, intellectual property conceived
or developed with support from
TAMUS or any of its members in the form of administered funds shall be owned by TAMUS, and
that the funding received from CERES will constitute such administered funds under such
policy.

			
	 	 	 
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	 	 	D. Except in the case of permitted subcontracting as provided in Article III.H, below, each
Party will conduct Program activities exclusively in laboratories, greenhouses or fields
under full control of or owned by that Party. Each Party will take all reasonable
precautions to prevent damage to or third party access to any information related to, or
unintentional destruction of or release of, any germplasm created in the Program.
	 
	 	 	E. Each Party will strictly comply, and use its commercially reasonable efforts to cause
its employees and researchers conducting Program activities to comply, with notebook and
breeding book keeping policies of the highest standards as applicable in the field. Each
Party will record and keep all field evaluation, composition and marker data in
user-friendly and secure electronic database format with limited access.
	 
	 	 	F. Each Party shall be responsible for its compliance, and will comply, with all applicable
laws, rules and regulations, including, without limitation, those relating to genetically
modified organisms (to the extent the Program involves such organisms), and will obtain any
and all permits or authorizations or proceed to any notifications which may be required by
such laws, rules and regulations.
	 
	 	 	When contributing sorghum germplasm for Program activities, the contributing Party will
verify what the origin of the material is and inform the other Party in writing from
whom/where and approximately on what date such Party initially obtained such germplasm. If
the germplasm contributed is governed by the Convention on Biological Diversity (“CBD”) or
the International Treaty on Plant Genetic Resources for Food and Agriculture (“ITPGRFA”),
the contributing Party will be responsible for obtaining all necessary authorizations to
commercialize any such genetic material and the results arising from the use of such
genetic material, as applicable under the CBD and/or ITPGRFA, under financial terms and
conditions defined by the applicable authorizing body under the CBD or ITPGRFA, as
applicable, and neither Party will use any germplasm in the Program for which the preceding
condition is not satisfied. Further, each Party shall only contribute germplasm to the
Program for which such Party has breeding rights with the right to commercialize the
progeny.
	 
	 	 	G. Any subcontracting of Program activities to a third party by AGRILIFE will be subject to
CERES’ prior written approval which will not be unreasonably withheld. CERES may
subcontract any Program activities to any third party.

	IV.	 	RESTRICTIONS ON AGRILIFE RESEARCH.

	 	A.	 	Definitions

1. “Biomass/Bioenergy/Sweet Sorghum” means

	 	 	 	a)
sorghum or Sorghum [***] which has
been identified, bred, or selected
for the purpose of conversion to fuels, chemicals, sugar, energy or other
bioproducts, including, but not limited to, sorghum

			
	 	 	 
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which has been bred to
produce higher biomass yields, higher yields of cellulose, higher yields
of sugar, other improved composition, improved agronomics, improved net
energy balance or improved energy density or which has been bred to make
its cellulose or sugars more available to conversion or more efficiently
converted, or

b) sorghum or Sorghum [***] lines that enable better

breeding or
contribute to the development of commercial products, including, but not
limited to, energy, fuels, chemicals, sugar or other bioproducts.

Biomass/Bioenergy/Sweet Sorghum shall not include

c) sorghum or Sorghum [***] which has been improved

through breeding for
increased starch yields, including, but not limited to, grain sorghums
(even where such sorghum must necessarily produce increased yields of
sugar to achieve increased starch content), or

d) sorghum or Sorghum [***] which has been improved

through breeding for
a purpose that does not include conversion to fuels, chemicals, sugar,
energy or other bioproducts, including, but not limited to, the purposes
of silage, forage, grain or other traditional uses for sorghum for feed or
food purposes

2. “CERES Field” means Germplasm Improvement to

develop Biomass/Bioenergy/Sweet
Sorghum.

3. “Germplasm Improvement” means any activities to

improve sorghum or Sorghum
[***], including without limitation selection, breeding, marker development or
marker assisted breeding or transgenic improvement.

4. “Sorghum [***]” or “Sorghum

[***]” means [***] plants (those which do [***] and
[***] or [***]) created utilizing the [***] and [***] of the [***] sorghum

[***].

	 	B.	 	AGRILIFE acknowledges and agrees that during the term of this Agreement:

1. To the extent that AGRILIFE conducts, directly or

indirectly, any research in
the CERES Field, other than in the Program, under any funding or any collaboration
agreement other than this Agreement, AGRILIFE agrees not to grant any rights in the
CERES Field to any person or entity other than CERES.

2. AGRILIFE will notify CERES in advance in writing of any

			
	 	 	 
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	 	 	 	contemplated projects
in Germplasm Improvement in sorghum and/or Sorghum [***], outside the CERES Field,
that would result in the grant of any rights by AGRILIFE, TAMUS and/or any other
TAMUS member to a for-profit person or entity pursuant to a sponsored research
agreement or other funded collaboration agreement in which such for-profit person
or entity finances such research and, at CERES’ request, to discuss in good faith
any such project with CERES, subject to any applicable confidentiality provisions.
	 
	 	 	 	3. AGRILIFE’s participation in any third-party sponsored research in
Biomass/Bioenergy/Sweet Sorghum, outside the CERES Field, shall be subject to
AGRILIFE’S compliance with the Guidelines for Future Collaborative Opportunities
(“Guidelines”) which are included in the Amended and Restated Intellectual Property
Rights Agreement entered into as of August 27, 2007 by and between TAMUS and CERES,
as amended and restated as of September 24, 2011, the “IPRA”). Both Parties agree
to comply with such Guidelines.
	 
	 	 	 	4. Unfunded Proposed Projects in the CERES Field shall be handled as set forth in
Article II.E.
	 
	 	 	 	5. AGRILIFE agrees that germplasm developed using any Lines will only be released
or made available to third parties for commercialization or Germplasm Improvement
if such germplasm

a) is less than five percent (5%) identical to any of the

Lines under
exclusive option or exclusive license to CERES based on genetic
contribution as determined by pedigree,

b) contains no specific Allele(s) optioned or exclusively

licensed to
CERES to which a Line’s specific valuable phenotype or trait is
attributable,

c) contains no Subject Inventions optioned or exclusively

licensed to
CERES, and

d) contains no CERES proprietary technology or intellectual

property.

The foregoing provisions in this Article IV.B.5 do not

limit and are subject to
Article IV.B.1, Article IV.B.2, Article IV.B.3 and Article IV.B.4.

	V.	 	IN-KIND SUPPORT
	 
	 	 	A. In partial consideration for the covenants of AGRILIFE contained in this
Agreement, within sixty (60) days of the Effective Date or as otherwise set forth in
Appendix B, the Parties will enter into good faith negotiations, for a period not to exceed
one hundred twenty (120) days without mutual written agreement of the

			
	 	 	 
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	 	 	 	Parties, for
appropriate contractual agreements as applicable for CERES’ provision to AGRILIFE of
certain in-kind research support as further described in Appendix B (collectively, “In-Kind
Support”) for AGRILIFE’s use in performing Program activities. For the avoidance of doubt,
the obligation to enter into good faith negotiations is a material obligation under this
Agreement. Any such use of In-Kind Support by AGRILIFE shall be subject to the terms and
conditions of a separate written agreement to be negotiated in good faith and entered into
by the Parties. Unless otherwise agreed to by CERES in any such separate written
agreement, any such use by AGRILIFE shall be solely for Program activities. Unless
otherwise agreed by the Parties in such separate written agreements, any Materials,
Derivatives, Progeny, germplasm, Hybrids, Lines or other intellectual property arising out
of any use by AGRILIFE of In-Kind Support shall be deemed Program Intellectual Property
subject to Article IX.
	 
	 	 	 	B. Notwithstanding anything else in Article IV, Article IX, this Article or otherwise, in
no event shall AGRILIFE publish, use or exploit outside of the Program any CERES Original
Materials, Derivatives, Progeny, data, information, intellectual property, technology or
in-kind research support (including, without limitation, any In-Kind Support) provided or
made available by CERES for use in or otherwise in connection with the Program, or any
Derivatives, Progeny or information developed or derived therefrom, without in each
instance the prior written consent of CERES, which consent may be granted, withheld or
conditioned in CERES’ sole discretion.

	VI.	 	TRANSFER OF MATERIALS

	 	A.	 	DEFINITIONS

1. “Derivatives” means plants made by a Receiving

Party from the Original Materials
of the other Party through traditional or artificial means, excluding, however,
Progeny of the Original Materials. “Derivatives” further means any plant part or
seed of Derivatives or biological samples made from Derivatives, or any Progeny of
Derivatives.

2. “Existing License and Material Transfer

Agreements” means the license and
material transfer agreements listed in Appendix C:

3. “Materials” means Original Materials, Derivatives

and Progeny of such Original
Materials.

4. “Original Materials” means (i) any plant

materials owned, jointly owned or
otherwise controlled by a Party (“Originating Party”) and transferred to the other
Party (“Receiving Party”) under this Agreement, and any Progeny of such materials,
and (ii) any plant part or seed of plant
materials included in Article VI.A.4.(i) or biological samples made from plant
materials included in Article VI.A.4.(i).

			
	 	 	 
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	 	 	 	5. “Progeny” means the offspring of a plant produced through asexual propagation or
sexual multiplication or maintenance where such offspring is not substantially
genetically different from such plant.

	 	 	 	B. It is contemplated that either Party may supply samples to the other Party under the
terms of this Article VI.
	 
	 	 	 	C. Within thirty (30) days after the Effective Date, CERES shall provide to the OTC (as
defined in Article XIV) a list of all Original Materials received by CERES from AGRILIFE,
including for each Original Material the designation of the implementing letter it was
received under, which are not the subject of any Existing License and Material Transfer
Agreement (excluding any publicly available lines or CERES Confidential Information). For
any Original Material which has been received by CERES which was not received under an
implementing letter, the Parties shall promptly generate an implementing letter. Both
Parties shall periodically update such lists of Original Materials transferred and
implementing letters during the term of this Agreement.
	 
	 	 	 	D. The Parties agree that any Original Materials provided by AGRILIFE to CERES pursuant to
this Agreement may be used by CERES and its Affiliated Companies for the following purposes
and such other purposes as the Parties may mutually agree upon in writing:

	 	1.	 	creating Progeny;
	 
	 	2.	 	creating Derivatives;
	 
	 	3.	 	research activities, evaluation and the conduct of trials using Materials;

	 	 	 	CERES acknowledges that no right in Materials, markers, or DNA sequence data and
information, is granted nor grantable herein or in the Original Agreement for CERES’ use
for commercial exploitation purposes, and that any grant of commercial exploitation rights
must occur through the instrument of a separate agreement, and that such grants of
commercial exploitation rights, including without limitation those set forth in the
Existing License and Material Transfer Agreements, supersede the limitations on the use for
commercial exploitation of Materials, markers, or DNA sequence information, set forth in
this Agreement. CERES shall be responsible for its Affiliated Companies’ compliance with
this Agreement or any of its provisions.
	 
	 	 	 	E. All Original Materials provided by the Originating Party to the Receiving Party should
be considered experimental and should be handled by the Receiving Party with appropriate
safety precautions. The Receiving Party agrees to exclusively and restrictedly use all
Materials under suitable containment conditions, in a safe manner, and in compliance with
all applicable state and federal laws and regulations, and not to use Materials on human
subjects.
	 
	 	 	 	F. The Originating Party of the Original Materials will obtain any permits required for the
delivery of such Original Materials to the Receiving Party or

			
	 	 	 
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	 	 	 	proceed to any required
notifications prior to the delivery of such Original Materials to the Receiving Party, and
such Receiving Party will reasonably cooperate with such Originating Party in order to
facilitate the issuance of any required permits. The Receiving Party will obtain any
authorizations or permits which may be required for its activities with Materials.
	 
	 	 	 	G. The Receiving Party agrees that Materials will be used solely for the purpose of the
Program and, in the case where CERES is the Receiving Party, for the purposes described in
Article VI.D above.
	 
	 	 	 	H. The Receiving Party will only grant access to Materials intended for Program activities
to its employees or researchers who need access to such Materials for the purpose of the
Program and, in the case where CERES is the Receiving Party, for the purposes described in
Article VI.D above.
	 
	 	 	 	I. The Receiving Party agrees that Materials will not be supplied or made available to any
other persons or entities, either within or outside of the Receiving Party, without the
prior written approval of the Originating Party. Such Materials will not be sold or
transferred for commercial exploitation purposes.
	 
	 	 	 	J. Notwithstanding anything to the contrary in this Article VI, the Parties agree that the
Materials provided to CERES by AGRILIFE, or made available to CERES by AGRILIFE, or derived
by CERES from AGRILIFE Original Materials, in each case under this Agreement or the
Original Agreement, may be supplied to any third parties with whom CERES has entered into
any collaboration, evaluation (including, without limitation, field evaluation, composition
and/or conversion) and/or material transfer agreements or any agreement similar to any of
the foregoing (each a “Collaborator”) or any subcontractors of CERES (each a
“Subcontractor”), provided that such Collaborator or Subcontractor, as the case may be, (i)
will only be allowed to use such Materials for the purpose of the implementation of, and
the exercise of its rights and performance of its obligations under, its agreement or
agreements with CERES, (ii) will be subject to applicable obligations with respect to such
Materials that are consistent with this Agreement and (iii) will have no greater scope of
rights in using such Materials than CERES. Upon AGRILIFE’s reasonable written request,
CERES will provide to AGRILIFE reasonable, non-confidential information with respect to
such Materials provided pursuant to CERES’ agreements with Collaborators provided that
CERES has the right to disclose such information to AGRILIFE; any such information will be
deemed Confidential Information of CERES.
	 
	 	 	 	K. In the event that the Receiving Party desires to utilize Materials for any uses beyond
the scope of this Agreement, the Parties shall enter into good faith negotiations to
establish the terms and conditions for any such purposes; however, nothing in this
Agreement shall be construed as a representation that the Originating Party guarantees the
grant of such rights.
	 
	 	 	 	L. The Receiving Party will keep and maintain written or electronic records

			
	 	 	 
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	 	 	 	of all use by
the Receiving Party of the Original Materials provided or made available by the Originating
Party under this Agreement and the Original Agreement, including records of Derivatives and
Progeny that have been made, and shall provide such records to the OTC and to the other
Party within thirty (30) days after each anniversary of the Effective Date of this
Agreement.
	 
	 	 	 	M. AGRILIFE shall make available to CERES for potential selection and transfer under this
Agreement materials developed in the Program in which CERES has indicated an interest or
which relate to the CERES Field, subject to the limits of such materials’ physical
availability.
	 
	 	 	 	N. The Originating Party will accompany each transfer of Original Materials with a
transmittal letter that specifies: (i) the roles of each Party involved in the transfer,
e.g., who is the Originating Party, (ii) the experimental designation of the Materials and
(iii) a statement confirming that the subject Materials are being transferred under the
terms of this Agreement. Each Party will provide to the OTC a copy of each such
transmittal letter that it provides to the other Party.
	 
	 	 	 	O. No transfer of any Material under this Agreement shall change the ownership of such
Material.

	VII.	 	TERM AND TERMINATION

	 	 	 	A. The term of this Agreement shall begin on the Effective Date and continue for fifteen
(15) years unless sooner terminated in accordance with this Article VII or extended by the
mutual written agreement of the Parties.
	 
	 	 	 	B. This Agreement may be terminated for convenience by CERES at any time prior to the full
term of this Agreement set forth in Article VII.A, provided that a written notice is given
to AGRILIFE thirty (30) days in advance. However, CERES shall be obligated to pay AGRILIFE
for all services, orders, materials, or facilities committed in good faith (and not
cancelable or re-allocatable despite AGRILIFE’s efforts to cancel or re-allocate) prior to
the effective date of termination.
	 
	 	 	 	C. AGRILIFE shall have the right to terminate this Agreement unilaterally with written
notice to CERES in case of failure of CERES to satisfy its material obligations under this
Agreement, if CERES fails to cure such failure(s) within (i) thirty (30) days for failures
to remit payment for amounts due under this Agreement and (ii) ninety (90) days for all
other obligations, in each case after receipt of written notice from AGRILIFE specifying
such failure(s).
	 
	 	 	 	D. If there are no active Projects at any time during the term of this Agreement, then,
upon written notice by either Party to the other Party, the Executive Committee will meet
to define and decide upon any further research projects to perform under this Agreement.
If no such research projects are decided upon by the Executive Committee within three (3)
months after such
meeting, CERES will have the option to continue any previous Projects that were

			
	 	 	 
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	 	 	 	part of the
Program, on the same annual budget (adjusted for inflation under the Consumer Price Index
(CPI) applicable as of the first day of the calendar quarter in which such continuation is
agreed upon) for the remainder of the fifteen (15) year term set forth in Article VII.A.
In the event that CERES does not exercise such option within three (3) months from the
aforementioned meeting of the Executive Committee, this Agreement may be terminated by
either Party upon delivery of a written notice of termination to the other Party with
immediate effect.
	 
	 	 	 	E. Promptly upon the delivery of a notice of termination of this Agreement, the Parties
will meet to discuss the Program, and each Party will provide to the other Party any data,
information, germplasm and any other materials that constitute Joint Inventions or Jointly
Owned Lines, if still in existence as of the notice of termination and which has not been
provided to such other Party prior to the notice of termination.
	 
	 	 	 	F. Termination of this Agreement shall not affect the rights and obligations of the Parties
under this Agreement accrued prior to termination hereof nor any license grants then in
existence, subject to payment of remuneration as set forth in any relevant
license/commercialization agreements. Further, at or about the effective date of
termination, the Parties will negotiate in good faith to reach agreement as to the rights
for CERES to use and commercially exploit Subject Inventions and Lines not covered by any
relevant license/commercialization agreement between the Parties, which rights will be
addressed in one or more written agreements. Such Subject Inventions and Lines shall be
deemed subject to the options set forth in this Agreement and to the terms and conditions
of the IPRA. In the event of the expiration or any termination of this Agreement, the
following provisions shall survive: Articles IV.A, IV.B.5, V.B., VI.A, VI.D, VI.E, VI.F,
VI.G, VI.H,VI.I, VI.K, VI.L and VI.O; VII.E and VII.F.; IX, X, XI, XII, XIII, XIV, XV, XVI,
XVIII, XXI, XXII.C, XXII.D, XXII.E, XXII.F, XXII.G, XXII.H, XXII.I, XXII.J, XXII.L, and
XXIII.

	VIII.	 	PAYMENT
	 
	 	 	A. CERES agrees to pay for the direct and indirect cost of work performed under each
Project under this Agreement as described in, and up to the maximum amount specified in,
the budget for such Project. Within thirty (30) days after the last day of each calendar
quarter during the term of this Agreement, AGRILIFE shall provide a written invoice to
CERES for the amount of the annual budget for each Project allocated to such calendar
quarter as set forth in the work statement for such Project. CERES shall pay such amount
within thirty (30) days after CERES’ receipt of such invoice. All payments to AGRILIFE
under this Agreement shall be made payable to Texas AgriLife Research and forwarded to the
address designated in Article XIV. AGRILIFE acknowledges and agrees that, except with
respect to its invoice dated September 30, 2011, all payments required to be made by CERES
under the Original Agreement between September 3, 2007
and the Effective Date of this Agreement have been timely made and that CERES

			
	 	 	 
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	 	 	otherwise has
no further payment obligations under the Original Agreement.
	 
	 	 	B. AGRILIFE will expend these funds as needed for labor, equipment, travel, and other
operating costs solely in connection with the research conducted under and in accordance
with this Agreement. The unexpended balance or any unused supplies with respect to the
Program remaining at the completion of the Program shall remain the sole property of
AGRILIFE. Notwithstanding the foregoing sentence, the Parties agree that unexpended funds
will be used to extend the term and/or scope of the Program as determined by the Executive
Committee and that the Parties shall amend the relevant work statement accordingly.
	 
	 	 	C. If, at any time, AGRILIFE has reason to believe that the cost of the work with respect
to any Project will exceed the applicable amount set forth in any Project work statement,
AGRILIFE will promptly notify CERES in writing, giving a revised budget for completion of
such work. CERES will not be obligated to reimburse AGRILIFE for any cost in excess of the
applicable amount set forth in any Project work statement, and, subject to diligent
performance of the Program activities, AGRILIFE will not be obligated to continue such work
or incur costs in excess of that amount unless and until this Agreement is amended to
increase the maximum amount for such work as mutually agreed upon by the Parties in
writing.
	 
	 	 	D. CERES and AGRILIFE may jointly seek additional funding opportunities from Federal and
State funding sources in support of the Program or in support of expansion of the Program.
Where accepting funds from such additional sources would conflict with the obligations of
AGRILIFE to CERES or with any of CERES’ rights under this Agreement, the IPRA or the
Existing License and Material Transfer Agreements, such acceptance of funds will be
contingent upon the approval and subsequent amendment of the Agreement by the Parties.

	IX.	 	PROGRAM INTELLECTUAL PROPERTY

	 
	 	A.	 	Definitions

	 	 	 	1. “AGRILIFE Genetic Contribution” means, for any specific Hybrid or New Parental
Line: (a) the proportion of the nuclear genes of the Hybrid or the New Parental
Line, as applicable, arising from Lines licensed by AGRILIFE to CERES, based on
genetic contribution as determined by pedigree and (b) a contribution to be
determined on a case-by-case basis in each case where a specific valuable phenotype
of that Hybrid or New Parental Line, as applicable, is attributable to specific
Allele(s) optioned or licensed to CERES by AGRILIFE.
	 
	 	 	 	2. “Allele” means a particular form of one or more genes determinant for a valuable
characteristic of a plant (e.g. drought tolerance, specific flowering time),
discovered in the Program by AGRILIFE or CERES solely or by AGRILIFE and CERES
jointly.

			
	 	 	 
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	 	 	 	3. “Copyright” means any copyrightable material and its associated copyright.
	 
	 	 	 	4. “Developed by Breeding” means originated by any form of genetic manipulation
including but not limited to single or multiple hybridization, backcrossing,
genetic transformation or other rearrangement or recombination of genes with or
without associated selection.
	 
	 	 	 	5. “Hybrid” means a seed or plant that has resulted from genetic crossbreeding
between two or more lines where those lines include one or more (i) Lines or (ii)
New Parental Lines.
	 
	 	 	 	6. “Invention” means any invention or discovery that is or may be patentable or
otherwise protectable under title 35 of the U.S. Code.
	 
	 	 	 	7. “Jointly-Owned Lines” means Lines which are jointly developed by employees,
contractors and/or consultants (other than AGRILIFE) of CERES and employees and/or
researchers of AGRILIFE, and Lines where the Materials or Other Contributions of
CERES and AGRILIFE have been combined through traditional or artificial means in
the Program.
	 
	 	 	 	8. “Lines” means (i) sorghum lines or Sorghum [***] or populations created by
AGRILIFE in the course of the Program, or (ii) new genetic lines or populations
developed by or for CERES (other than by AGRILIFE) through further selection within
any sorghum lines or populations created in the course of the Program, as
distinguished from crossing followed by selection.
	 
	 	 	 	9. “New Parental Lines” means new genetic lines or populations which are Developed
by Breeding by CERES and which have one or more of the Lines as progenitors.
	 
	 	 	 	10. “Other Contributions” means (i) intellectual and technical contributions to the
development of Lines or if from CERES, to the development of Lines, New Parental
Lines or Hybrids, such as, without limitation, markers, gene-trait association
knowledge or composition knowledge, that inform the breeding and selection process,
or transgenic traits and (ii) except with respect to Article IX.A.7 and Article
IX.D.1, financial contributions to the development of Lines, or if from CERES, to
the development of Lines, New Parental Lines or Hybrids.
	 
	 	 	 	11. “Subject Invention” means any Invention conceived and reduced to practice
during the term of this Agreement in the conduct of a Project.

	 	B.	 	Copyright

	 	 	 	1. Title. Title to and the right to determine the disposition of any 

			
	 	 	 
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Confidential Treatment Requested and the Redacted Material has been separately filed with the Commission

 

 

	 	 	 	copyrights
or copyrightable material first produced or composed in the performance of the
Program by AGRILIFE employees and/or researchers only shall remain with AGRILIFE.
Title to and the right to determine the disposition of any copyrights or
copyrightable material first produced or composed in the performance of the Program
by CERES employees only shall remain with CERES. Title to and the right to
determine the disposition of any copyrights or copyrightable material first
produced or composed in the performance of the Program by employees and/or
researchers of AGRILIFE and CERES shall remain with AGRILIFE and CERES.
	 
	 	 	 	2. License to Copyrightable Materials (excluding software). AGRILIFE grants to
CERES an irrevocable, royalty-free, non-transferable, non-exclusive and license in
AGRILIFE’s rights in any copyrightable materials (technical data, reports, etc.)
first developed in the performance of the Program to use, reproduce, display,
perform and otherwise exploit (to the extent not prohibited by applicable law) such
copyrightable materials. Such grant excludes rights in computer software
(including both source and executable code) first developed under this Agreement,
its documentation, and/or information databases (“Software”).
	 
	 	 	 	3. Invention Notice (Software). AGRILIFE will notify CERES, in writing stating
expressly that each disclosure is a software invention notice under this Agreement
within thirty (30) days of receiving a disclosure on Software solely made by
employees and/or researchers of AGRILIFE, or of Software jointly made by employees
of AGRILIFE and CERES, and each such notice will describe the Software with
sufficient specificity to allow assessment by CERES. CERES shall hold such
disclosure in confidence and shall not reveal the disclosure to any third party
without the written consent of AGRILIFE.
	 
	 	 	 	4. First Right to Negotiate for Commercial Exploitation License. Additionally,
AGRILIFE grants to CERES a time-limited first right to negotiate a non-exclusive or
exclusive, at CERES’ election, commercial exploitation license (i) to use,
reproduce, display, perform and otherwise exploit any Software for commercial
exploitation purposes, and to distribute and/or sublicense such Software to third
parties. CERES shall advise AGRILIFE in writing within ninety (90) days following
delivery of such Software to CERES (“Option Period”) whether or not CERES elects to
negotiate a license agreement to obtain commercial exploitation rights to such
Software. In the event that CERES elects to negotiate for a commercial
exploitation license to such Software, the Parties shall initiate negotiation of
such license agreement, such negotiations not to extend beyond one hundred eighty
(180) days from CERES’ notice of election (“Negotiation Period”) without the mutual
consent of both Parties. Such
license shall be negotiated in good faith between the Parties, and shall

			
	 	 	 
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	 	 	 	contain
reasonable business terms common to CERES’ field of commercial interest and
proposed application.

	 	C.	 	Subject Inventions

	 	 	 	1. Inventorship and Title. Inventorship of inventions, developments, or
discoveries in the performance of the Program (“Subject Inventions”) shall be
determined in accordance with U.S. Patent Law, whether or not patent applications
are pursued. All rights to Subject Inventions invented solely by employees or
researchers of AGRILIFE shall belong solely to AGRILIFE (“AGRILIFE Inventions”).
All rights to Subject Inventions invented solely by employees, contractors and/or
consultants (other than AGRILIFE) of CERES shall belong solely to CERES (“CERES
Inventions”). All rights to Subject Inventions invented jointly by employees or
researchers of AGRILIFE and employees, contractors and/or consultants (other than
AGRILIFE) of CERES (“Joint Inventions”) shall belong jointly to AGRILIFE and CERES.
	 
	 	 	 	2. Marker-Trait Inventions. In the event that a Party uses a mapping population
provided by the other Party to discover a marker, Allele or trait, such marker,
Allele or trait shall be a Joint Invention, provided, however, that such mapping
population is only available to third parties subject to the same condition that
the resulting discoveries of markers, Alleles or traits shall be jointly owned by
the Party providing the mapping population to the third party, and such third
party.
	 
	 	 	 	3. Invention Notice (Subject Invention). AGRILIFE will notify CERES, in writing
stating expressly that each disclosure is an invention notice under this Agreement
within thirty (30) days of reduction to practice or knowledge of conception or
discovery of a Subject Invention solely invented by employees and/or researchers of
AGRILIFE, or of a Joint Invention, and each such notice will describe the Subject
Invention with sufficient specificity to allow assessment by CERES. CERES shall
hold such disclosure in confidence and shall not reveal the disclosure to any third
party without the written consent of AGRILIFE.
	 
	 	 	 	4. Option to Obtain a Commercial Exploitation License. AGRILIFE grants to CERES a
time-limited option to obtain an exclusive world-wide commercial exploitation
license in AGRILIFE’s rights in Subject Inventions and in Joint Inventions, with
the right to grant sublicenses, as set forth below.
	 
	 	 	 	5. Exercise of Option to a Commercial Exploitation License. CERES shall advise
AGRILIFE in writing within ninety (90) days of such disclosure to CERES of a
Subject Invention (“Option Period”) whether or not CERES elects to obtain exclusive
commercial exploitation rights to
such Subject Invention. In the event that CERES elects to exercise its

			
	 	 	 
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	 	 	 	option to
obtain a commercial exploitation license to such Subject Invention, the Parties
shall initiate negotiation of a license agreement in compliance with the IPRA, such
negotiations not to extend beyond one hundred eighty (180) days from CERES’ notice
of election (“Negotiation Period”) without the mutual written consent of both
Parties. Such license shall be negotiated in good faith between the Parties and
shall contain reasonable business terms common to CERES’ field of commercial
interest and proposed application and shall allow CERES to direct patent
prosecution for the Subject Invention.
	 
	 	 	 	6. AGRILIFE shall not file a non-provisional application on any Subject Invention
without CERES’ written approval prior to the expiration of the later of (i) the
Option Period for such Subject Invention and (ii) the Negotiation Period for such
Subject Invention.

	 	D.	 	Lines

	 	 	 	1. Ownership (General). Lines developed by employees, contractors and/or
consultants (other than AGRILIFE) of CERES alone without the use of AGRILIFE
Materials or Other Contributions, will be owned by CERES. Lines developed by
employees and/or researchers of AGRILIFE alone without the use of CERES Materials
or Other Contributions will be owned by AGRILIFE. Jointly-Owned Lines jointly
developed by employees, contractors and/or consultants (other than AGRILIFE) of
CERES and employees and/or researchers of AGRILIFE shall be jointly owned. Lines
where the Materials or Other Contributions of CERES and AGRILIFE have been combined
through traditional or artificial means in the Program shall be jointly owned.
	 
	 	 	 	2. Ownership (CERES breeding program). In the event that CERES or its Affiliated
Companies use Jointly-Owned Lines or Lines owned by AGRILIFE in its or its
Affiliated Companies’ own breeding program outside the Program in compliance with
this Agreement or a license agreement for Lines as provided in Article IX.D.4, the
resulting Lines, New Parental Lines or Hybrids developed by CERES or its Affiliated
Companies shall be solely owned by CERES, without regard to whether or not the
operative license agreement for Lines was in effect at the time of CERES or its
Affiliated Companies’ development of such Lines, New Parental Lines or Hybrids.
Any use for commercial exploitation of any Lines, New Parental Lines or Hybrids by
CERES or its Affiliated Companies shall be subject to CERES obtaining a license
under this Article IX.D and pursuant to the IPRA.
	 
	 	 	 	3. Option to Obtain a Commercial Exploitation License. AGRILIFE grants to CERES a
time-limited option to obtain an exclusive world-wide commercial exploitation
license in AGRILIFE’s rights in Lines and in
Jointly-Owned Lines with the right to grant sublicenses, as set forth

			
	 	 	 
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	 	 	 	below.
	 
	 	 	 	4. Exercise of Option to a Commercial Exploitation License. CERES may at any time
identify a Line for which it elects to exercise its option. In addition, the
Management Committee may nominate a Line in writing to the Executive Committee
which, in the Management Committee’s judgment, exhibits valuable characteristics
which may be of interest to CERES. The Executive Committee is responsible for
determining whether or not to validate each such Line nomination as a formal
written disclosure to CERES (“Lines Disclosure”). Any Lines Disclosure by the
Executive Committee will state that such disclosure is a Lines Disclosure under
this Agreement and describe the Line with sufficient specificity to allow
assessment by CERES. CERES shall advise AGRILIFE in writing within ninety (90)
days of any such Lines Disclosure to CERES (“Option Period”) whether or not CERES
elects to exercise its option to obtain exclusive commercial exploitation rights to
such Line to maintain and increase seed of Lines; develop New Parental Lines;
develop Hybrids; and sell Hybrids. In the event that CERES elects to obtain a
commercial exploitation license to one or more or all Line(s), the Parties shall
initiate negotiation of such license agreement in compliance with the IPRA and
substantially in the form of the Annexes thereto, such negotiations not to extend
beyond one hundred eighty (180) days from CERES’ notice of election (“Negotiation
Period”) without the mutual consent of both Parties.
	 
	 	 	 	5. The Parties agree that any such license as negotiated by the Parties for Line(s)
shall be negotiated in good faith and shall contain reasonable business terms
common to CERES’ field of commercial interest and proposed application, and shall
contain royalty rates customary in the seed industry, taking into consideration,
(i) AGRILIFE Genetic Contribution, (ii) Other Contributions of CERES, (iii)
financial contributions of each Party, and (iv) germplasm contributed by CERES, if
any, all of the foregoing (i) through (iv) to the development of such Lines, New
Parental Lines and Hybrids.
	 
	 	 	 	6. Jointly-Owned Lines. Neither AGRILIFE nor CERES shall have the right to
commercialize Jointly-Owned Lines without a written agreement between the Parties.
	 
	 	 	 	7. In the event that CERES’ option to license a Line has expired and/or CERES does
not license a Line developed under the Program, AGRILIFE shall be able to use such
Line for any purpose but subject to the restrictions set forth in this Agreement,
including but not limited to those restrictions set forth in Article IV, Article V
and Article XI and the restrictions set forth in the IPRA.

	 	E.	 	Intellectual Property Protection for Joint Inventions and Jointly-Owned
Lines

			
	 	 	 
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	 	 	 	1. CERES shall have the responsibility to pursue statutory protection of Joint
Inventions or Jointly-Owned Lines, and shall be the “Administering Party” for the
purposes of this Agreement.
	 
	 	 	 	2. CERES may, at its sole discretion, make a written request that AGRILIFE be the
Administering Party for certain Joint Inventions or Jointly-Owned Lines. Should
AGRILIFE agree, it shall provide notice of its agreement in writing and shall be
the Administering Party for such Joint Inventions or Jointly-Owned Lines.
	 
	 	 	 	3. The Administering Party shall be responsible for retaining counsel, overseeing
the process of securing intellectual property protection (i.e., the preparation,
filing and prosecution of patent or plant variety rights application(s)) and
maintaining intellectual property protection for the mutual benefit of the Parties,
in its best judgment, for that which it had prosecution responsibility. In
addition to other reporting responsibilities provided below, the Administering
Party shall promptly notify the other Party following retention of counsel. The
Parties will provide, and cause their respective employees, researchers and agents
to provide, all reasonable assistance which may be required in connection with the
filing and prosecution of such intellectual property rights, including without
limitation the signing of documents.
	 
	 	 	 	4. The Administering Party shall keep the non-administering Party advised as to all
developments with respect to all patent and plant variety rights application(s) and
issued patents and plant variety rights covering AGRILIFE owned or Subject
Inventions or Joint Inventions or AGRILIFE owned or Jointly-Owned Lines, which
includes supplying copies of all papers received and filed in connection with such
applications and patents in sufficient time for the non-administering Party to
comment thereon. Any decision which would result in a change of legal inventorship
or ownership of a patent, patent application or plant variety rights certificate
shall not be taken by an Administering Party unless it has first received
authorization in writing from the non-administering Party, provided that the
Parties shall comply with U.S. law on inventorship.
	 
	 	 	 	5. Each Party agrees to bear all legal expenses incurred by that Party as an
Administering Party in obtaining and maintaining patents and plant variety rights,
U.S. and foreign, covering Joint Inventions and jointly-owned Lines.
	 
	 	 	 	6. Joint Inventions. Subject to the restrictions set forth in Articles IV and V,
for Joint Inventions conceived in the performance of the Program, AGRILIFE and
CERES shall be deemed independent owners under 35
USC 262, in the absence of a written agreement between the Parties to the

			
	 	 	 
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	 	 	 	contrary.

	 	 	 	F. All grants of intellectual property rights to CERES pursuant to this Agreement or the
IPRA will be subject to the reservation by AGRILIFE of an irrevocable, nonexclusive,
royalty-free right to use or practice such intellectual property for research and
educational purposes only and for the conduct of third-party sponsored research subject to
the terms of this Agreement including without limitation Article IV, Article V and Article
XI and the IPRA. This reservation excludes Jointly-Owned Lines and any other intellectual
property rights of CERES.
	 
	 	 	 	G. If the Parties fail to reach agreement within a Negotiation Period, within thirty (30)
days after the end of such Negotiation Period either Party may request through written
notification to the other Party that the matter shall be settled in accordance with the
following procedures: the disputed contract terms shall be referred to a mutually agreed
impartial expert whose decision shall be final. Each Party shall submit to the expert
within fifteen (15) days of his/her appointment its position in writing on the disputed
contract terms and conditions. Such expert shall be limited to choosing one of such two
(2) Party positions on each of the contract terms and conditions or related group of
contract terms and conditions that the expert considers most reasonable in the
circumstances and shall not make any other determination. Neither Party shall be bound by
any determination by the expert which, in the opinion of Party’s counsel, will result or be
likely to result in that Party violating any applicable law or regulation.

	X.	 	PUBLICATIONS

	 
	 	A. AGRILIFE shall be free to publish the results of research performed under this Agreement
after providing CERES with a sixty (60) day period in which to review each publication for
patent purposes (enabling disclosures), to identify any inadvertent disclosure of CERES’
Confidential Information (as such term is defined in Article XI), to identify any
disclosure of any copyrights, copyrightable materials, Subject Inventions, germplasm,
Hybrids, Lines, Alleles or other intellectual property arising out of the Program (“Program
Intellectual Property”) and to identify information generated in the Program relating to
Materials, Derivatives, Progeny or the association of marker(s) with a gene which has been
defined as a Cloning Target. AGRILIFE agrees to delete, at the request of CERES, any
disclosure of CERES Confidential Information and/or any information generated in the
Program relating to the association of marker(s) with a gene which has been defined as a
Cloning Target. Notwithstanding the foregoing, AGRILIFE shall not be required to remove
from publications information generated in the Program relating to the association of
marker(s) with a gene which has been defined as a Cloning Target after the earliest of the
following events: (i) a patent application is filed on the Cloning Target in the U.S.; or
(ii) the Management Committee decides that the Cloning Target is no longer a Cloning Target
and such decision is reflected in a written document; or
(iii) at the conclusion of the Program, except if otherwise agreed by the Parties at

			
	 	 	 
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	 	 	that
time.
	 
	 	 	B. If necessary to permit the preparation and filing of patent applications and/or to
delete any disclosure of CERES’ Confidential Information, or the association of marker(s)
with a gene which has been defined as a Cloning Target, AGRILIFE shall agree to an
additional delay of publication not to exceed sixty (60) days to prepare and file necessary
applications and/or delete such CERES Confidential Information and/or information generated
in the Program relating to the association of marker(s) with a gene which has been defined
as a Cloning Target. In the event that CERES asks AGRILIFE to file a patent, CERES shall
reimburse AGRILIFE for all reasonable, documented costs incurred in such patent application
filing(s) as set forth in Article IX. Any further delay of publication shall require a
separate agreement between AGRILIFE and CERES. AGRILIFE shall reasonably and in good faith
consider and negotiate with CERES with respect to any other requests by CERES to delay any
publication.

	XI.	 	CONFIDENTIAL INFORMATION

	 	a)	 	The Parties intend to reasonably share all information and data that they develop
during the course and for the purpose of the Program. At its sole discretion, either
Party may designate information and data that it develops and shares with the other as
Confidential Information and such Confidential Information shall be subject to the terms
of this Article XI.
	 
	 	b)	 	It is contemplated that the disclosing Party (“Discloser”) may be disclosing certain
confidential and/or proprietary information to the receiving Party (“Recipient”) unknown
to the general public (hereinafter referred to as “Confidential Information”). The
Parties agree that the terms of this Article XI shall apply to any confidential and/or
proprietary information that may be disclosed under this Agreement, and that such
Confidential Information shall be used solely by Recipient for the purposes contemplated
and permitted by this Agreement or the IPRA (“Purpose”). Recipient acknowledges that the
above-described Confidential Information is confidential and/or proprietary to Discloser
and is claimed to be a valuable, special, and unique asset of Discloser.
	 
	 	c)	 	Identification of Confidential Information. Confidential Information disclosed that
Discloser, in good faith, regards as confidential and/or proprietary shall be clearly
marked as “Confidential,” “Proprietary,” or bear any other appropriate notice indicating
the sensitive nature of such Confidential Information. Any Confidential Information not
easily marked, including Confidential Information that may be orally disclosed, shall,
within thirty (30) days of its disclosure, be referenced in writing and designated
confidential by Discloser.
	 
	 	d)	 	Information shall not be afforded the protection of this Article XI of this Agreement
if such information:

			
	 	 	 
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	 	i)	 	has been, is now, or later becomes publicly available through no fault of
Recipient;
	 
	 	ii)	 	has been, is now, or later becomes rightfully learned by Recipient from a
third party who is not under restriction or duty imposed by Discloser;
	 
	 	iii)	 	has been, is now, or later is furnished to third parties by Discloser, if
such disclosure is, or has been, made to third parties without similar restriction,
duty or limitation of use;
	 
	 	iv)	 	was known to Recipient prior to the date it received such Confidential
Information from Discloser; or
	 
	 	v)	 	has been, is now, or later is independently developed by Recipient without
use of or resort to such Confidential Information, and can be so proven by clear and
convincing evidence prepared contemporaneously with such independent development.

	 	e)	 	Protection of Confidential Information. For a period of three (3) years from the
date of termination of a Project under which Confidential Information is disclosed,
Recipient will:

	 	i)	 	Maintain the Confidential Information in confidence;
	 
	 	ii)	 	Not use any such Confidential Information received from Discloser except for
the above-stated Purpose;
	 
	 	iii)	 	Disclose such Confidential Information received from Discloser only to its
employees that have a need to know such Confidential Information in order to fulfill
the Purpose; and
	 
	 	iv)	 	Not disclose any portion of the Confidential Information received from
Discloser to any third party without the prior written consent of Discloser, even if
such third party is under similar restriction on disclosure with Discloser.

	 	f)	 	Recipient agrees to use the same degree of care to protect the confidentiality of all
Confidential Information it receives as it uses to protect its own confidential and
proprietary information which it does not wish to have published or disseminated.
However, in no event shall Recipient use less than a reasonable degree of care to protect
the Confidential Information received from Discloser. Recipient further agrees that
without Discloser’s written consent, Recipient will not electronically record any
conversation or meeting with Discloser personnel or photograph any Discloser facility or
premises. In the case where AGRILIFE is the Recipient, access to Confidential Information
shall be limited to the employees and
researchers of AGRILIFE that have a need to access or know such Confidential

			
	 	 	 
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	 	 	 	Information.
	 
	 	g)	 	Notice of Legal Action. If Recipient is under a legal obligation (including, but not
limited to, pursuant to law (including Texas Government Code Chapter 552) or court order)
to disclose Confidential Information received under this Agreement, Recipient will use
reasonable efforts to promptly provide notice to Discloser, and, to the extent permitted
by applicable law and, if applicable, authorized by the Office of the Attorney General of
the State of Texas will cooperate with Discloser to protect Confidential Information, but
only to the extent required by such legal obligation. The Recipient will provide
reasonable advance written notice to the Discloser of any such legal requirement and will
use reasonable efforts to secure confidential treatment of such Confidential Information
prior to its production or disclosure.
	 
	 	h)	 	Miscellaneous Requirements for Confidential Information. All Confidential
Information disclosed under this Agreement shall remain the property of Discloser. At
Discloser’s request, all Confidential Information received by Recipient in tangible form
shall be promptly returned or destroyed, provided that each Party may retain one (1) copy
of such Confidential Information for record keeping purposes and/or for purposes of
exercising any rights or performing any obligations that survive any expiration or
termination of this Agreement. Nothing in this Article XI shall be construed as granting
a license to any patent or copyright. The disclosure of Confidential Information shall
likewise not be construed as any representation, warranty, assurance, or inducement by
either Party with respect to infringement of any patent or other proprietary right.

	XII.	 	TITLE TO EQUIPMENT
	 
	 	 	AGRILIFE shall retain title to all equipment, supplies and other items purchased and/or
fabricated with funds provided by CERES under this Agreement.
	 
	XIII.	 	GOVERNING LAW
	 
	 	 	The validity, interpretation, and enforcement of this Agreement shall be governed and
determined by the laws of the State of Texas, excluding the conflict of laws rules which
might require the application of the laws of another jurisdiction.
	 
	XIV.	 	NOTICES
	 
	 	 	Formal notices provided under this Agreement must be in writing and delivered by (i)
certified mail, return receipt requested, postage prepaid; (ii) hand delivered, costs
prepaid; (iii) facsimile with receipt of a successful transmission confirmation; (iv)
email; or (v) delivery by a reputable overnight courier service, costs prepaid (in the case
of delivery by facsimile or email the notice must be followed immediately by a copy of the
notice being delivered by a means
provided in (i), (ii), or (v)). The notice will be deemed given on the day the notice

			
	 	 	 
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	 	Page 24 of 34

 

 

	 	 	is received.
In the case of notice by facsimile or email, the notice is deemed received at the local time of the receiving machine,
and if not received, then the date the follow-up copy is received. Notices must be delivered to the following addresses or
at such other addresses as may be later designated in writing.
Notices may be required to be delivered under this Agreement to AGRILIFE, to CERES, and to
 The Texas A&M University System’s Office of Technology Commercialization (“OTC”) acting on behalf of AGRILIFE.

	 	 	 	 	 

	 

	 	AGRILIFE:
	 	Diane Gilliland
	 

	 	 	 	Director, Contracts and Grants
	 

	 	 	 	Texas AgriLife Research
	 

	 	 	 	The Office of Sponsored Research Services
	 

	 	 	 	400 Harvey Mitchell Parkway South, Suite 300
	 

	 	 	 	College Station, TX 77845-3578
	 

	 	 	 	E-Mail: d-gilliland@tamu.edu
	 

	 	 	 	Phone: (979) 845-4781
	 

	 	 	 	Fax: (979) 862-7775
	 
	 	 	 	 
	 

	 	CERES:
	 	Director of Business Development
	 

	 	 	 	cc: Legal Department
	 

	 	 	 	Ceres, Inc.
	 

	 	 	 	1535 Rancho Conejo Blvd.
	 

	 	 	 	Thousand Oaks, CA 91320
	 

	 	 	 	Phone: (805) 376-6500
	 

	 	 	 	Fax: (805) 376-6549
	 
	 	 	 	 
	 

	 	OTC:
	 	Director, Licensing and Intellectual Property
	 

	 	 	 	Office of Technology Commercialization
	 

	 	 	 	800 Raymond Stotzer Parkway, Suite 2020
	 

	 	 	 	College Station, TX 77845
	 

	 	 	 	Phone: (979) 847-8682
	 

	 	 	 	Fax: (979) 845-1402

	XV.	 	PUBLICITY
	 
	 	 	A. AGRILIFE shall have the right to acknowledge the CERES investigator, the AGRILIFE
investigator, the nature of the research, and the dollar value of the Agreement and
Projects thereunder in AGRILIFE’s records and reports.
	 
	 	 	B. Neither Party shall indicate, directly or indirectly, any endorsement by the other
Party, or any component institution or agency of such other Party, of any products or
services of such Party for any reason whatsoever, without obtaining the express, prior
written consent of such other Party. CERES shall not use the name of TAMUS, AGRILIFE, or
any component institution or agency of TAMUS, nor the names of any of their employees or
researchers nor any
adaptation in any advertising, promotional or sales literature to be disseminated to

			
	 	 	 
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	 	 	the
public without prior written consent obtained from AGRILIFE in each case, except that CERES
may continue any such use that was approved by AGRILIFE or TAMUS prior to the Effective
Date without obtaining such consent. Neither AGRILIFE nor TAMUS shall use the name of
CERES or any of its Affiliated Companies, nor the names of any of their respective
employees or researchers nor any adaptation in any advertising, promotional or sales
literature to be disseminated to the public without prior written consent obtained from
CERES in each case.
	 
	 	 	C. Notwithstanding any provision of this Article XV, either of the Parties can disclose or
otherwise acknowledge, without restriction, the existence of this Agreement as well as the
collaborative relationship between the Parties without the prior consent of the other
Party. Notwithstanding the unilateral disclosure rights provided for in this Article XV, if
the disclosure or acknowledgement takes the form of a written release by the disclosing
Party, the disclosing Party shall provide the other Party a copy of any such unilateral
disclosure prior to its release so as to allow the other Party to comment and shall take
such comments reasonably into account. However, no advance copy needs to be provided of any
releases referred to in this Article XV.C. or of any releases which are identical to
previous releases.
	 
	 	 	D. The Parties may issue joint press releases regarding their collaboration. Any such press
release and any press release by either Party will be subject to the prior written approval
of both Parties; provided however, that (i) CERES shall have the right to otherwise
disclose information as may be required in CERES’ judgment to comply with SEC or IRS
regulations or other laws, rules or regulations governing disclosure of information or to
(potential) investors or business partners and (ii) AGRILIFE shall have the right to
otherwise disclose information as may be required in AGRILIFE’s judgment to comply with
laws, rules or regulations governing disclosure of information. Notwithstanding the
unilateral disclosure rights provided for in this Article XV, the disclosing Party shall
provide the other Party a copy of any such unilateral disclosure preferably prior to its
release.

	XVI.	 	EXPORT ADMINISTRATION

	 
	 	 	The results of the Research Program obtained by AGRILIFE are expected to be ordinarily
published and shared broadly with the scientific community and therefore are expected to
constitute “fundamental research” as defined under the International Traffic in Arms
Regulations (ITAR, 22 CFR Sections 120-130) and the Export Administration Regulations (EAR, 15
CFR Sections 730-774). If CERES discloses to AGRILIFE any CERES Confidential Information that
is subject to export control, CERES will alert AGRILIFE in writing at the time of disclosure,
at which time AGRILIFE will advise CERES if it desires to take receipt of the export-controlled
materials. Neither Party shall export or re-export any United States-origin
technology, software, or products, or the direct products of that technology, software 

			
	 	 	 
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	 	Page 26 of 34

 

 

	 
	 	 	or
products under this Agreement, in violation of United States export control regulations.

	XVII.	 	INDEPENDENT CONTRACTOR

	 
	 	 	For the purposes of this Agreement and all services to be provided hereunder, the Parties shall
be, and shall be deemed to be, independent contractors, and neither Party is acting as a
partner, joint venturer, agent or employee of the other Party. The employees, researchers,
officers or agents of AGRILIFE shall not be considered or deemed to be employees, researchers,
officers or agents of CERES. Neither Party shall have authority to make any statements,
representations nor commitments of any kind, or to take any action which shall be binding on
the other Party, except as may be explicitly provided for herein or authorized in writing by
such other Party.

	 
	XVIII.	 	SEVERABILITY

	 
	 	 	If any of the provisions of this Agreement in the application thereof to any person or
circumstance, is rendered or declared illegal for any reason, or shall be invalid or
unenforceable, the remainder of this Agreement and the application of such provision to other
persons or circumstances shall not be affected thereby, but shall be enforced to the greatest
extent permitted by applicable law.

	 
	XIX.	 	HEADINGS

	 
	 	 	The headings used herein are for reference and convenience only and shall not enter into the
interpretation hereof.

	 
	XX.	 	COUNTERPARTS

	 
	 	 	This Agreement may be executed in duplicate counterparts, which taken together shall constitute
one single representation between the Parties.

	 
	XXI.	 	DISPUTE RESOLUTION

	 	a)	 	The Parties shall make every possible attempt to resolve in an amicable manner all
disputes between the Parties concerning this Agreement.
	 
	 	b)	 	The Parties must use the dispute resolution process provided in Chapter 2260, Texas
Government Code, and the related rules adopted by the Texas Attorney General to attempt to
resolve in the ordinary course of business. CERES must submit written notice of a claim
of breach of contract under this Chapter to Dr. Craig Nessler, Director, who will examine
CERES’ claim and any counterclaim and negotiate with CERES in an effort to resolve the
claim.
	 
	 	XXII.	 	MISCELLANEOUS

			
	 	 	 
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	 	 	A. This Agreement, the IPRA and the Existing License and Material Transfer Agreements
constitute the entire agreement between the Parties relative to the subject matter hereof
and thereof, and may be modified or amended only by a written agreement signed by both
Parties. As of the Effective Date, all active, ongoing or proposed activities (including
materials developed) by either Party which were initiated under the Original Agreement and
are not the subject of the Existing License and Material Transfer Agreements, including
without limitation the activities which are the subject of the Original Workplan
incorporated by reference as provided in Article II.C, shall be deemed Program activities
governed by this Agreement and for the avoidance of doubt, not by the terms and conditions
of the Original Agreement which were applicable prior to the Effective Date; subject
however to Article II.C and the last sentence of Article VIII.A. This Agreement shall be
governed and construed in accordance with the laws of the State of Texas.
	 
	 	 	B. This Agreement binds and inures to the benefit of the Parties, their successor or
assigns, but may not be assigned by either Party without the prior written consent of the
other Party; provided however, CERES shall have the right to assign its rights and
obligations under this Agreement to any Affiliated Company without such prior consent.
CERES shall also have the right to assign its rights and obligations under this Agreement
to a third party in conjunction with the transfer to such third party of substantially all
of the assets of CERES associated with performance under this Agreement or substantially
all of the stock of CERES, in each case without such prior consent. “Affiliated Company”
means any company owned or controlled by, under common control with or controlling CERES,
“control” meaning in this context the direct or indirect ownership of more than fifty
percent (50%) of the voting stock/shares of a company, or the power to nominate at least
half of the directors. Ceres Sementes do Brasil Ltda., a company incorporated under the
laws of Brazil, is an Affiliated Company of CERES.
	 
	 	 	C. The failure of either Party at any time to require performance by the other Party of any
provision of this Agreement shall in no way affect the right to require such performance at
any time thereafter nor shall the waiver by either Party of a breach of any provision be
taken or held to be a waiver of any succeeding breach of such provision or as a waiver of
the provision itself. The waiver of any provision of this Agreement must be in a writing
signed by both Parties.
	 
	 	 	D. This Agreement, to the greatest extent possible, shall be construed so as to give
validity to all of the provisions hereof. If any provision of this Agreement is or becomes
invalid, is ruled illegal by a court of competent jurisdiction or is deemed unenforceable
under the current applicable law from time to time in effect during the term of this
Agreement, the remainder of this Agreement will not be affected or impaired thereby and
will continue to be construed to the maximum extent permitted by law. In lieu of each
provision which is invalid, illegal or
unenforceable, there will be substituted or added as part of this Agreement by

			
	 	 	 
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	 	Page 28 of 34

 

 

	 	 	mutual
written agreement of the Parties, a provision which will be as similar as possible, in
economic and business objectives as intended by the Parties, to such invalid, illegal or
unenforceable provision, but will be valid, legal and enforceable.
	 
	 	 	E. Neither Party shall be liable to the other Party for any incidental, indirect, special,
or consequential damage, however caused, and on any theory of liability, arising out of or
related to this Agreement.
	 
	 	 	F. If either Party fails to fulfill its obligations hereunder (other than an obligation for
the payment of money), when such failure is due to a circumstance beyond its reasonable
control, including but not limited to fire, flood, civil commotion, riot, war (declared and
undeclared), revolution, acts of foreign or domestic terrorism, or embargos, then said
failure shall be excused for the duration of such event and for such a time thereafter as
is reasonable to enable the Parties to resume performance under this Agreement, provided
however, that in no event shall such time extend for period or more than (30) days.
	 
	 	 	G. NEITHER PARTY MAKES ANY WARRANTIES, EXPRESS OR IMPLIED, AS TO ANY MATTER WHATSOEVER,
INCLUDING, WITHOUT LIMITATION, WARRANTIES WITH RESPECT TO THE CONDUCT, COMPLETION, SUCCESS
OR PARTICULAR RESULTS OF THE PROGRAM, OR THE CONDITION, OWNERSHIP, MERCHANTABILITY, OR
FITNESS FOR A PARTICULAR PURPOSE OF THE PROGRAM OR ANY INTELLECTUAL PROPERTY OR RESEARCH
RESULTS OR THAT THE USE OF ANY INTELLECTUAL PROPERTY OR RESEARCH RESULTS WILL NOT INFRINGE
ON ANY PATENT, COPYRIGHT, TRADEMARK OR OTHER INTELLECTUAL PROPERTY RIGHT OF A THIRD PARTY.
NEITHER PARTY SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, CONSEQUENTIAL, PUNITIVE OR OTHER
DAMAGES SUFFERED BY THE OTHER PARTY OR ANY OTHER PERSON OR ENTITY RESULTING FROM THE
PROGRAM OR THE USE OF ANY INTELLECTUAL PROPERTY, ANY RESEARCH RESULTS OR ANY PRODUCTS
RESULTING THEREFROM.
	 
	 	 	H. CONCERNING THE INFORMATION AND DATA PROVIDED UNDER THIS AGREEMENT, NEITHER PARTY MAKES
ANY REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE
IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR USE AND
NON-INFRINGEMENT.
	 
	 	 	I. CONCERNING THE MATERIALS PROVIDED UNDER THIS AGREEMENT NO REPRESENTATIONS AND NO
WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO WARRANTIES
OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE, ARE PROVIDED HEREIN BY EITHER PARTY,

			
	 	 	 
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	 	 	NOR ARE ANY OBLIGATIONS WITH
RESPECT TO INFRINGEMENT OF LICENSED PATENTS OR OTHER RIGHTS OF THIRD PARTIES PROVIDED
HEREIN.
	 
	 	 	J. All representations, warranties, covenants and agreements made in this Agreement and
which by their express terms or by implication are to be performed after the execution
and/or termination hereof, or are prospective in nature, shall survive such execution
and/or termination, as the case may be.
	 
	 	 	K. In compliance with federal law, including provisions of Title IX of the Education
Amendments of 1972, Sections 503 and 504 of the Rehabilitation Act of 1973, and the
Americans with Disabilities Act of 1990, AGRILIFE and CERES will not discriminate on the
basis of race, sex, religion, color, national or ethnic origin, age, disability or military
service in their administration of policies, programs, or activities, admission policies,
other programs or employment.
	 
	 	 	L. Nothing in this Agreement waives or relinquishes the right of either Party to claim any
exemptions, privileges and immunities as may be provided by law.
	 
	 	 	M. The individuals executing this Agreement on behalf of each Party represent that they are
each the duly authorized representatives of such Party on whose behalf the individuals are
signing, each with full power and authority to bind said Party to each term and condition
set forth in this Agreement.

	XXIII.	 	ORDER OF PRECEDENCE
	 
	 	 	In the event of an inconsistency between the provisions of this Agreement, the
inconsistency shall be resolved by giving precedence in the following order:

	 	i)	 	Any license agreement between CERES and The Texas A&M University System
	 
	 	ii)	 	This Agreement
	 
	 	iii)	 	The IPRA
	 
	 	iv)	 	Project
	 
	 	v)	 	Other provisions, documents and/or specifications that are expressly
incorporated by reference into this Agreement under any Project.

[Signature page follows.]

			
	 	 	 
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	 	Page 30 of 34

 

 

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed

by their duly
authorized representatives.

	 	 	 	 	 	 	 	 	 	 	 

	For Ceres, Inc. (“CERES”)	 	 	 	For Texas AgriLife Research
(“AGRILIFE”)	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Richard Flavell	 	 	 	By:	 	/s/ Bill McCutchen	 	 
	 

	 	 

	 	 
	 	 	 	 

	 	 
	Name: Richard Flavell, CBE, FRS	 	 	 	Bill McCutchen	 	 
	Title: Chief Scientific Officer	 	 	 	Executive Associate Director, Texas
AgriLife Research	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	Date:	 	9-24-2011	 	 
	 

	 	 

	 	 
	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	For Ceres, Inc. (“CERES”)	 	 	 	For Texas AgriLife Research
(“AGRILIFE”)	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Richard Hamilton	 	 	 	By:	 	/s/ Craig Nessler	 	 
	 

	 	 

	 	 
	 	 	 	 

	 	 
	Name: Richard Hamilton	 	 	 	Craig Nessler	 	 
	Title: President & Chief Executive
Officer	 	 	 	Director, Texas AgriLife Research	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date:

	 	9/24/11	 	 	 	Date:	 	9/24/2011	 	 
	 

	 	 

	 	 
	 	 	 	 

	 	 

			
	 	 	 
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	 	Page 31 of 34

 

 

Appendix A

Proposed Project Format

Confidential and Proprietary

TITLE

Research Project Plan

Project Leads:

Ceres Contacts:

Revised/Updated:

ID:

Background

	 	1.	 	PURPOSE
	 
	 	2.	 	RATIONALE
	 
	 	3.	 	REFERENCES (if any)

Goals and Deliverables

LIST DELIVERABLES AND MILESTONES:

COMPLETION DATE:

Work Plan

	1.	 	EXPERIMENTAL DESIGN:
	 
	2.	 	TIMELINE and SCHEDULE:
	 
	3.	 	RESPONSIBLE PARTIES:

Resource Impacts

Future Directions

			
	 	 	 
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Appendix B

In-Kind Support

Technology:

Persephone.

	 	 	 	Phase I. Within sixty (60) days of the Effective Date of this Agreement, CERES and AGRILIFE
will begin good faith negotiations for a software access agreement to enable AGRILIFE’s
remote access by up to three (3) named AGRILIFE personnel to access certain Program data
solely for AGRILIFE’S use in the Program for a period not to exceed two (2) years from the
Effective Date.
	 
	 	 	 	Phase II. No later than eighteen (18) months from the Effective Date, CERES and AGRILIFE
will begin good faith negotiations for a software license agreement to enable AGRILIFE to
deploy software for up to three (3) computers, solely for AGRILIFE’s use in the Program.
Upon execution of such software license agreement, the software access agreement
contemplated in Phase I will terminate.

Services: Within the later of (i) sixty (60) days after the

Effective Date of this Agreement and
(ii) the time(s) expressly stated below, CERES and AGRILIFE will begin good faith negotiations for
appropriate contractual agreements as applicable for CERES’ provision of the following services to
AGRILIFE, solely for AGRILIFE’s use in the Program.

	1)	 	CERES will provide AGRILIFE with certain services for single marker assays as directed by
Program objectives, the scope of such services to be discussed and mutually agreed upon at the
next regular meeting of the Management Committee following the Effective Date of this
Agreement.
	 
	2)	 	CERES will provide AGRILIFE with access to certain CERES breeding nursery locations in the
U.S. and Brazil as directed by the Program objectives, the scope of such access to be
discussed and mutually agreed upon at the next regular meeting of the Management Committee
following the Effective Date of this Agreement.

			
	 	 	 
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Appendix C

Existing License and Material Transfer Agreements

	(1)	 	The Line License Agreement entered into by Ceres, Inc. and The Texas A&M University System
(of which AGRILIFE is a part) dated October 16, 2009 covering the sorghum Line known as
R07007.
	 
	(2)	 	The Line License Agreement entered into by Ceres, Inc. and The Texas A&M University System
(of which AGRILIFE is a part) dated July 12, 2011 covering the Lines known as
A/B.05040-08CS6466/6465 and A/B.05038-08CS6460/6459.
	 
	(3)	 	The Material Transfer Agreement entered into by Ceres, Inc. and The Texas A&M University
System (of which AGRILIFE is a part) dated April 23, 2008, as amended covering the S1-S2
Materials as defined therein.
	 
	(4)	 	The Material Transfer Agreement entered into by Ceres, Inc. and The Texas A&M University
System (of which AGRILIFE is a part) dated April 23, 2008, as amended covering the S3
Materials as defined therein.
	 
	(5)	 	The Material Transfer Agreement entered into by Ceres, Inc. and The Texas A&M University
System (of which AGRILIFE is a part) dated April 23, 2008, as amended covering the S4a
Materials as defined therein.
	 
	(6)	 	The Material Transfer Agreement entered into by Ceres, Inc. and The Texas A&M University
System (of which AGRILIFE is a part) dated April 23, 2008, as amended covering the S4b
Materials as defined therein.

			
	 	 	 
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	 	Page 34 of 34exv10w35

Pages where confidential treatment has been requested are stamped ‘Confidential Treatment
Requested and the Redacted Material has been separately filed with the Commission,’ and the
confidential section has been marked as follows: [***].

Exhibit 10.35

EXECUTION COPY

AMENDED AND RESTATED

INTELLECTUAL PROPERTY RIGHTS AGREEMENT

between

Ceres, Inc.

and

The Texas A&M University System

     This Amended and Restated Intellectual Property Rights Agreement (“Agreement”) is made and
entered into by and between Ceres, Inc., a corporation with principal offices in Thousand Oaks,
California, a Delaware corporation (“CERES”) and The Texas A&M University System (“SYSTEM”), an
agency of the State of Texas, collectively referred to as “Parties” and individually as “Party.”
Capitalized terms used but not defined in this Agreement have the meanings set forth in the ARSRA
(as defined below).

WITNESSETH:

WHEREAS, SYSTEM and CERES have in common the desire to encourage and facilitate the discovery,
dissemination and application of new knowledge, and CERES desires to support said research;

WHEREAS, CERES and SYSTEM, through Texas AgriLife Research (“AGRILIFE”) formerly known as The Texas
Agricultural Experiment Station, a member of SYSTEM, (“TAES”), with principal offices in College
Station, Texas, a member of SYSTEM and an agency of the State of Texas have previously entered into
and conducted research under that certain Sponsored Research Agreement dated as of August 29, 2007,
as amended, supplemented and otherwise modified by way of those certain written amendments entered
into by the Parties, effective as of June 18, 2008, July 15, 2008, October 22, 2008 and August 29,
2007 (the “SRA”) to improve germplasm, develop lines and hybrids of sorghum and its interbreeding
species and develop DNA markers and marker platform technology to advance the development of
biomass/bioenergy crops, which the Parties agreed to amend and restate in its entirety on September
24, 2011 and which is now being referred to as the Amended and Restated Sponsored Research
Agreement (“ARSRA”);

WHEREAS, pursuant to the ARSRA, CERES and SYSTEM, through AGRILIFE will continue to improve
germplasm, develop Lines, Hybrids, Derivatives and Progeny of sorghum and its interbreeding species
and develop DNA markers and marker platform technology to advance the development of
Biomass/Bioenergy/Sweet Sorghum crops;

WHEREAS, the Parties desire that CERES will commercialize such Biomass/Bioenergy/Sweet Sorghum
crops under exclusive license(s) from SYSTEM; and

WHEREAS, pursuant to the ARSRA CERES had and has the right to license certain INTELLECTUAL PROPERTY
RIGHTS from SYSTEM; and

WHEREAS, the Parties have agreed on the rights and obligations of the Parties and the procedures
for such licensing.

			
	 	 	 
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WHEREAS, the Parties entered into that certain Intellectual Property Rights Agreement, dated as of
August 27, 2007 (the “Original IPRA”) with respect to the foregoing; and

WHEREAS, the Parties desire to amend and restate the Original IPRA in its entirety in connection
with the ARSRA and as set forth below.

NOW THEREFORE, in consideration of the mutual covenants and premises contained in this Agreement,
the receipt and sufficiency of which is acknowledged, the Parties agree as follows:

Article 1. Licensing of Intellectual Property Rights

A. General

(1) All grants of intellectual property rights as set forth in Article IX of the ARSRA (other than
copyrights) will be made through the instrument of license agreements substantially in the form of
Appendices A and B. All such grants of intellectual property rights will be subject to the
reservation of rights set forth in the ARSRA, compliance with Article IV of the ARSRA, and
compliance with the Guidelines for Future Collaborative Opportunities which both Parties agree to
comply with and which are included in Appendix C (the “Guidelines”). All grants with respect to
copyrights will be made in accordance with Article IX.B. of the ARSRA.

(2) It is anticipated by the Parties that CERES may, subject to CERES Board of Directors and
shareholder approval, issue warrants as set forth in Article 5.B, giving SYSTEM the right to
purchase CERES stock for a predetermined price per share. The Parties will negotiate diligently
and in good faith about such potential grant of warrants. The Parties acknowledge and agree that
the Warrant (as defined in Article 4.B.(1) below) was issued by CERES to SYSTEM under the Original
IPRA. If the Additional Warrant (as defined in Article 4.B.(2) below has not been issued by CERES
to SYSTEM within nine (9) months after the last signature date of this Agreement, CERES shall have
no further obligation whatsoever with respect to the issuance of the Additional Warrant to SYSTEM.

B. Patentable Inventions

(1) Negotiation of a Commercial Exploitation License. SYSTEM, through AGRILIFE, has granted CERES
in the ARSRA an option to obtain an exclusive world-wide commercial exploitation license in
SYSTEM’s rights in Subject Inventions under the ARSRA, with the right to grant sublicenses. If
CERES exercises such option pursuant to the terms of the ARSRA, the Parties shall initiate
negotiation of a license agreement based on the Example License Agreement for Subject Inventions in
Appendix A and the Parties shall comply with the good faith negotiation process and timelines set
forth in the ARSRA.

(2) Joint Inventions. Joint Inventions conceived under the ARSRA shall be subject to the option
set forth in the ARSRA and the provisions of Article 1.B.(1) hereinabove.

C. Germplasm

(1) Definitions: The terms “Hybrid,” “AGRILIFE Genetic Contribution,” “Other Contributions,”
“Developed by Breeding,” “New Parental Lines,” “Lines,” “Allele,” “Derivatives,” “Progeny,”  ”Existing License and Material Transfer Agreements,” “Ceres Field,” “Biomass/Bioenergy/Sweet
Sorghum,” “Germplasm Improvement,” “Sorghum [***],” “Subject Invention,” “Program” and other
capitalized words not defined herein shall have the definitions set forth in the ARSRA.

			
	 	 	 
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	 	Page 2 of 60

Confidential Treatment Requested and the Redacted Material has been separately filed with the
Commission

 

 

(2) Negotiation of a Commercial Exploitation License. SYSTEM, through AGRILIFE, has granted CERES
in the ARSRA an option to obtain an exclusive (subject to the following sentence with respect to
AGRILIFE Lines) world-wide commercial exploitation license in SYSTEM’s rights in Lines pursuant to
the ARSRA, with the right to grant sublicenses. In the case of any AGRILIFE Line, such exclusive
license shall be subject to any non-exclusive licenses granted prior to the date of the SRA by
TAES, AGRILIFE and/or SYSTEM to any third party with respect to such AGRILIFE Line. If CERES
exercises such option pursuant to the terms of the ARSRA, the Parties shall initiate negotiation of
such license agreement based on the Example License Agreement for Lines in Appendix B and the
Parties shall comply with the good faith negotiation process and timelines set forth in the ARSRA.

Article 2. Term and Termination

A. The period of performance for this Agreement shall begin on September 3, 2007, and shall
continue until the effective Date of expiration or termination of the ARSRA, subject to earlier
termination as provided herein.

B. CERES will have the right to terminate this Agreement unilaterally by written notice to SYSTEM
if SYSTEM or AGRILIFE materially breaches this Agreement or the ARSRA, provided that such breach
remains uncured sixty (60) days after the date of a written notice provided by CERES to SYSTEM
specifying such breach.

C. Termination of this Agreement shall not affect the rights and obligations of the Parties accrued
prior to termination hereof nor any license or, except as set forth in Article 4.E, warrant grants
then in existence, subject to payment of remuneration as set forth in any relevant
license/commercialization or warrant agreements. In the event of the expiration or any termination
of this Agreement, the following provisions shall survive: Articles 2, 3, 4 and 6.

Article 3. Confidentiality

A. SYSTEM shall not disclose this Agreement or any contents of this Agreement to third parties
without the prior written consent of CERES during the term of this Agreement and for five (5) years
thereafter, but SYSTEM shall not be liable for unauthorized disclosures of information which occur
in spite of using all reasonable efforts not to disclose this Agreement or any contents of this
Agreement to third parties. SYSTEM will only make this Agreement available to SYSTEM employees or
researchers on a need-to-know basis.

B. SYSTEM shall not be obligated to keep any portion of this Agreement confidential to the extent
such portion (a) now or hereafter becomes generally available to the public on a non-confidential
basis through no fault or action or failure to act on the part of SYSTEM; or (b) is ordered
produced or disclosed by a court or administrative body of competent jurisdiction or otherwise
required by law, or required to be disclosed by the Attorney General of The State of Texas, but
only to the extent of such required production or disclosure. SYSTEM will provide reasonable
advance written notice to CERES of any such production or disclosure and will use reasonable
efforts to secure confidential treatment of any such information prior to its production or
disclosure.

Article 4. Warrants

A. Warrant.

			
	 	 	 
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Pursuant to the Warrant to Purchase Shares of Common Stock of Ceres, Inc., dated as of July 18,
2008, by and between CERES and SYSTEM (the “Warrant Agreement”), CERES has issued to SYSTEM
a warrant to purchase an aggregate of up to two hundred thousand (200,000) shares of CERES’ Common
Stock at a defined price, as further described in the Warrant Agreement and Amendment Number One
thereto, attached hereto as Appendix D and incorporated herein by this reference.

B. Additional Warrant.

In addition to the Warrant specified in Article 4.A above, subject to CERES’ Board of Directors and
shareholder approval, Articles 1.A.(2), 4.C, 4.D and 4.E and agreement by the Parties on the terms
and conditions of the warrants, CERES shall issue to SYSTEM a warrant to purchase up to two hundred
thousand (200,000) shares of CERES’ Common Stock (the “Additional Warrant”) at a defined price.
The maximum duration of the Additional Warrant would be fifteen (15) years; early termination
provisions may apply. The Additional Warrant would become exercisable in installments as follows,
provided that, at the time of SYSTEM’s exercise of such installment, (i) SYSTEM has not breached,
and is not in breach of any provision of the ARSRA, this Agreement (including without limitation
the Guidelines), Existing Licenses and Material Transfer Agreements (as defined in the ARSRA), or
any license entered into pursuant to this Agreement, (ii) SYSTEM has not proceeded to any
activities (including participation in any Additional Collaboration Project and/or use of any
Lines, Hybrids, Derivatives or Progeny developed in the Program) contrary to CERES’ expressed
preference, as referred to in clause 1.2 of the Guidelines, and (iii) SYSTEM has not collaborated
or is not collaborating with, nor has granted rights to, any party for Germplasm Improvement (as
defined in the ARSRA) of Biomass/Bioenergy/Sweet Sorghum (as defined in the ARSRA) except as
expressly permitted in the ARSRA;

     1. a first installment of sixty-six thousand six hundred sixty-seven (66,667) shares
on the fifth (5th) anniversary of the date of this Agreement, provided CERES has
not terminated this Agreement for breach as provided in Article 2.B on or before such date;

     2. a second installment of sixty-six thousand six hundred sixty-seven (66,667) shares
on the tenth (10th) anniversary of the date of this Agreement, provided CERES
has not terminated this Agreement for breach as provided in Article 2.B on or before such
date; and

     3. a third installment of sixty-six thousand six hundred sixty-six (66,666) shares on
the fifteenth (15th) anniversary of the date of this Agreement, provided CERES
has not terminated this Agreement for breach as provided in Article 2.B on or before such
date;

C. Mechanics of the Additional Warrant shall be subject to advice of the Parties’ respective
securities counsel.

D. For the avoidance of doubt, in no event shall the number of shares of CERES Common Stock that
are the subject of the Additional Warrant exceed two hundred thousand (200,000) shares.

E. Unless CERES terminates for breach as provided in Article 2.B of this Agreement, this Article 4
shall survive termination of this Agreement.

			
	 	 	 
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Article 5. Potential Collaborations

	 	A.	 	Within twelve (12) months after the date of this Agreement, the Parties will begin
non-exclusive good faith negotiations with respect to a potential collaboration in [***]
involving CERES’ technology platform (including, without limitation,
markers, genes, transgenic traits and genomics tools) and
AGRILIFE’s, as a member of SYSTEM, germplasm and breeding program. Unless the Parties
agree otherwise in writing, such negotiations shall continue until the earlier to occur of
(a) the one (1) year anniversary of the commencement of such negotiations, or (b) the
execution by the Parties of a definitive written agreement with respect to such
collaboration. For the avoidance of doubt, neither Party shall have any exclusivity or
preemptive rights, rights of first refusal or first negotiation or rights of last offer or
any similar rights with respect to such potential collaboration in [***] involving the
other Party.
	 
	 	B.	 	Within twelve (12) months after the date of this Agreement, the Parties will begin
non-exclusive good faith negotiations with respect to a potential collaboration allowing
AGRILIFE’s, as a member of SYSTEM, use of CERES’ genes and
transgenic traits for research purposes
only in crops manually agreed upon by the Parties and where CERES will have exclusive commercial
exploitation rights to such results. Unless the Parties agree otherwise in
writing, such negotiations shall continue until the earlier to occur of (a) the one (1)
year anniversary of the commencement of such negotiations, or (b) the execution by the
Parties of a definitive written agreement with respect to such collaboration. For the
avoidance of doubt, (i)neither Party shall have any exclusivity or preemptive
rights, rights of first refusal or first negotiation or rights of last offer or any
similar rights with respect to such potential collaboration in genes and transgenic traits involving
the other Party, and (ii) nothing contained herein shall prohibit or prevent CERES from
granting any rights, including without limitation exclusive rights to, or enter into any
agreements with, any third party with respect to any of its genes,
transgenic traits or technologies for use
with any crop.
	 
	 	C.	 	Within twelve (12) months after the date of this Agreement, the Parties will begin
non-exclusive good faith discussions to evaluate a potential collaboration for the
improvement and development of CERES’ Persephone software program for use in [***] and
[***] applications and potentially in plant applications.

Article 6. Miscellaneous

This Agreement, the ARSRA (including without limitation all Existing License and Material Transfer
Agreements referred to therein) and the Warrant constitute the entire agreement between the Parties
relative to the subject matter, and may be modified or amended only by a written agreement signed
by both Parties. The Parties hereby incorporate by reference Articles IV, V, VI, IX, XII, XIII,
XIV, XV, XVIII, XX, XXII and XXIII of the ARSRA as if set forth fully herein, except for purposes
of such incorporation (a) references to “AGRILIFE” therein shall be deemed to be references to
“SYSTEM,” (b) references to a “Party” therein shall be deemed to be references to a Party as
defined herein, and (c) references to the “Parties” therein shall be deemed to be references to the
Parties as defined herein.

[Signature page follows.]

			
	 	 	 
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Confidential Treatment Requested and the Redacted Material has been separately filed with the
Commission

 

 

     IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by
their duly authorized representatives.

	 	 	 	 	 	 	 	 	 

	For Ceres, Inc. (“CERES”)	 	 	 	For Texas AgriLife Research
(“AGRILIFE”), a Member of The Texas
A&M University System
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Richard Flavell
	 	 	 	By:
	 	/s/ Craig Nessler
	 

	 	 
	 	 	 	 	 	 
	Name: Richard Flavell, CBE, FRS	 	 	 	Craig Nessler
	Title: Chief Scientific Officer	 	 	 	Director, Texas AgriLife Research
	Date:

	 	 	 	 	 	Date:
	 	9/24/2011
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	For Ceres, Inc. (“CERES”)	 	 	 	For The Texas A&M University System (“TAMUS”)
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Richard Hamilton
	 	 	 	By:
	 	/s/ Brett Cornwell
	 

	 	 
	 	 	 	 	 	 
	Name: Richard Hamilton	 	 	 	Name: Brett Cornwell
	Title: President & Chief Executive Officer	 	 	 	Title: Associate Vice Chancellor for Commercialization
	Date:

	 	9/24/11
	 	 	 	Date:
	 	9-24-2011
	 

	 	 
	 	 	 	 	 	 

			
	 	 	 
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Appendix A

to the Amended and Restated Intellectual Property Rights Agreement

between Ceres, Inc. and The Texas A&M University System

Example License Agreement for Subject Inventions

LICENSE AGREEMENT

Between

Ceres, Inc.

and

The Texas A&M University System

     This agreement (“Agreement”) is made and entered into by and between Ceres, Inc., a
corporation with principal offices in Thousand Oaks, California, (“LICENSEE”) and The Texas A&M
University System with principal offices in College Station, Texas, (“SYSTEM”), an agency of the
State of Texas, collectively referred to as “Parties” and individually as “Party.”

WITNESSETH:

     WHEREAS, SYSTEM and LICENSEE have entered into an Amended and Restated Sponsored Research
Agreement dated [xxxx] (the “ARSRA”) and an associated Amended and Restated Intellectual
Property Rights Agreement (“IPRA”);

     WHEREAS, pursuant to the ARSRA a Subject Invention (as defined in the ARSRA) was created in
which SYSTEM has ownership rights; such Subject Invention relates to “___” (the “Subject Invention”);

     WHEREAS, SYSTEM desires that such intellectual property be commercialized for the public
benefit and welfare; and

     WHEREAS, LICENSEE has represented that it has certain marketing, engineering and financial
capabilities, and that it shall commit itself to a thorough and diligent program of development and
commercialization of SYSTEM’s intellectual property for public benefit; and

     WHEREAS, SYSTEM is willing to grant to LICENSEE, and LICENSEE is willing to accept, a license
to use the Subject Invention, upon the terms and conditions set forth below.

     NOW THEREFORE, in consideration of the mutual covenants and premises contained in this
Agreement, the receipt and sufficiency of which is acknowledged, the Parties agree as follows:

ARTICLE I — DEFINITIONS

	1.01	 	“LICENSED TECHNOLOGY” shall mean the Subject Invention relating to SYSTEM Disclosure of
Invention Number ________ entitled “_________________.”
	 
	1.02	 	“PATENT RIGHTS” shall mean each United States patent application filed for protection of
LICENSED TECHNOLOGY; each patent issuing from the foregoing applications; each

			
	 	 	 
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	 	 	divisional, continuation, or continuation-in-part application of the foregoing United
States applications; each equivalent patent application in each country other than the
United States which claims priority under such applications; each patent issuing from the
foregoing applications; and each extension or reissue of such patents.

	1.03	 	“LICENSED PRODUCT” or “LICENSED PRODUCTS” shall mean any product, process, or composition of
matter that is within the scope of any Valid Claim of PATENT RIGHTS. Valid Claim shall mean
and include a claim of a patent application or an unexpired patent or a patent whose
expiration date has been extended by law, so long as such claim shall not have been held
invalid and/or unenforceable in an unappealed or unappealable decision of a court or other
authority of competent jurisdiction.

	1.04	 	“EFFECTIVE DATE” shall mean the date this Agreement has been executed by the last Party.

	1.05	 	“NET SALES” shall mean LICENSEE’s and AFFILIATED COMPANIES’ receipts for sales of LICENSED
PRODUCTS or for SERVICES requiring the use of LICENSED PRODUCTS less the sum of the following:

	 	(a)	 	sales taxes, tariffs, duties and/or use taxes directly
imposed with reference to particular sales;
	 
	 	(b)	 	outbound transportation prepaid or allowed, shipping,
packaging, cost of insurance in transit paid by LICENSEE or an AFFILIATED
COMPANY;
	 
	 	(c)	 	amounts allowed or credited on returns;
	 
	 	(d)	 	customary trade, quality or cash discounts; and
	 
	 	(e)	 	[other deductions which are appropriate to sales of the
LICENSED PRODUCTS may be included.]

	 	 	No deductions shall be made for commissions paid to individuals whether independent sales
agencies or regularly employed by LICENSEE, or for the cost of collections. The value of
sample size quantities of LICENSED PRODUCTS provided for free shall not be included in NET
SALES. Where there is no identifiable sale price (except for samples as referred to in the
previous sentence) or when a LICENSED PRODUCT is sold to other than bona fide, arms length
customers of LICENSEE or any AFFILIATED COMPANY, LICENSEE or the AFFILIATED COMPANY shall
be deemed to have received an amount of NET SALES calculated based on the final sale of the
LICENSED PRODUCTS (wholesale level) to an independent third party. If no such current price
is available, a hypothetical fair market value price will be determined by the Parties
jointly in good faith for the purpose of calculating NET SALES. If trait fees are charged
by LICENSEE specifically for the LICENSED TECHNOLOGY, these fees shall be added to NET
SALES.
	 
	1.06	 	“LICENSE INCOME” shall mean the amount actually received by either LICENSEE or any AFFILIATED
COMPANY in consideration for the grant of sublicenses to sublicensees that are not AFFILIATED
COMPANIES to produce and sell LICENSED PRODUCTS, including up-front fees, lump sum payments
and any other non-running royalty-based payments made on a product-by-product and
jurisdiction-by-jurisdiction basis.

			
	 	 	 
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	1.07	 	“AFFILIATED COMPANY” shall mean any company owned or controlled by, under common control with
or controlling LICENSEE, “control” meaning in this context the direct or indirect ownership of
more than fifty percent (50%) of the voting stock/shares of a company, or the power to
nominate at least half of the directors.

	1.08	 	“SERVICE” shall mean any transaction with a third party in which LICENSEE or an AFFILIATED
COMPANY performs certain activities on behalf and at the request of a third party that would
if not performed by LICENSEE or an AFFILIATED COMPANY require a license under SYSTEM’S PATENT
RIGHTS licensed hereunder, in exchange for payment, but excluding any research collaboration
or sponsored research agreement.

ARTICLE II — LICENSE GRANT

	2.01	 	Grant. SYSTEM grants to LICENSEE and its AFFILIATED COMPANIES an exclusive world-wide license
and right under PATENT RIGHTS to make, have made, use, and sell the LICENSED PRODUCTS and to
perform SERVICES, and to grant sublicenses of the same scope, to the end of the term of this
Agreement as prescribed in Article VIII.

	2.02	 	Reservation. SYSTEM reserves an irrevocable, worldwide, nonexclusive, royalty-free right to
practice the grant made in Article 2.01 for research and educational purposes only, and not
for commercial purposes or for the commercial benefit of third parties. SYSTEM shall comply
with the provisions of the ARSRA, and the IPRA when exercising this right.

	2.03	 	[If applicable] Government Reservation. Rights under this Agreement are subject to rights
required to be granted to the Government of the United States of America pursuant to 35 USC
Section 200-212, including a nonexclusive, nontransferable, irrevocable, paid-up license to
practice or have practiced for or on behalf of the United States the Subject Inventions
throughout the world.

ARTICLE III — CONSIDERATION

	3.01	 	[Optional. Depends on CERES’ contributions to Subject Invention and the value of the Subject
Invention. Can be alternative to royalties in case Subject Invention will only be used
internally by CERES.] License Fee. In consideration for the license granted in this
Agreement, LICENSEE shall make an initial payment in the amount of ___________ dollars
($________). Such payment shall be due no later than thirty (30) days following the EFFECTIVE
DATE. Failure to make this payment within the specified period shall cause this Agreement to
immediately terminate.

	3.02	 	Royalty Rate. As [additional] consideration for the license granted in this Agreement,
LICENSEE shall remit to SYSTEM a royalty of ____ percent (__%) of NET SALES. [Take into
account stacking with other technologies and value of licensed technology to determine rate.]

	3.03	 	[Optional] Minimum Annual Consideration. In order to maintain this exclusive license to
PATENT RIGHTS, LICENSEE shall pay to SYSTEM minimum annual consideration in accordance with
the following schedule:

	 	 	 

	(a) Calendar Year 20_
	 	$ _____
	 
	 	 
	(b) Calendar Years 20__ and 20_
	 	$_____
	 
	 	 
	(c) Calendar Year 20__ and every year thereafter
through the expiration of this Agreement
	 	$_____

 
			
	 	 	 
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	 	 	In the event that LICENSEE’s payment of royalties for the Calendar Year due under Article
3.02 do not meet or exceed the required minimum annual consideration, as specified in this
Article, LICENSEE’s royalty payment for the last quarter of such Calendar Year shall
include payment of the balance needed to achieve the required minimum. In the event this
Agreement expires or is terminated prior to the end of a Calendar Year, the corresponding
minimum annual consideration provided for in this Article shall be prorated for that year.
	 
	3.04	 	Patent Expenses [Reimbursement]. As additional consideration for the license granted in this
Agreement, LICENSEE shall bear the expenses incurred in the prosecution and maintenance of
PATENT RIGHTS, as further described in Article VI.

	3.05	 	If an exclusive license reverts to or is non-exclusive pursuant to Articles 3.02, 5.02 or
6.05, or upon LICENSEE’s election, a lower royalty rate shall be negotiated in good faith
between the Parties. The start of such negotiations shall be evidenced by written notice from
one Party to the other initiating such negotiations, and such negotiations shall not extend
beyond ninety (90) days from the start thereof without the mutual consent of both Parties
(“Negotiation Period”). If the Parties fail to reach agreement within the Negotiation Period,
the lower royalty rate shall be settled in accordance with the following procedures: the
disputed royalty rate shall be referred to a mutually agreed impartial expert whose decision
shall be final. Each Party shall submit to the expert within fifteen (15) days of his
appointment its position in writing on the disputed royalty rate. Such expert shall be
limited to choosing the one of such two (2) party positions that the expert considers most
reasonable in the circumstances and shall not make any other determination. Neither Party
shall be bound by any determination by the expert which, in the opinion of Party’s counsel,
will result or be likely to result in that Party violating any applicable law or regulation.

ARTICLE IV —SUBLICENSES

	4.01	 	Sublicenses. LICENSEE and its AFFILIATED COMPANIES may grant sublicenses to persons, firms or
corporations under such conditions as it may arrange, subject to terms and conditions
consistent with this Agreement, as long as each such sublicense is not repugnant to the public
policies of SYSTEM, the State of Texas, or the United States

	4.02	 	Sublicensee Consideration. Sales of LICENSED PRODUCTS by each sublicensee shall be subject to
the unit royalty due to SYSTEM prescribed in Article 3.02. Further, LICENSEE shall pay to
SYSTEM a royalty of ____ percent (___%) LICENSE INCOME. [Take into account stacking
with other technologies and value of licensed technology to determine rate.]

	4.03	 	Reporting. LICENSEE shall notify SYSTEM of the grant of sublicense to a third party and
provide a redacted copy of the sublicense to SYSTEM. LICENSEE shall not redact any
information unless it could be reasonably considered sensitive to LICENSEE’s business. Upon
reasonable notice by SYSTEM, SYSTEM may through an attorney-at-law review an unredacted copy
of the sublicense but shall not provide any redacted information to business persons within
SYSTEM. LICENSEE shall also provide SYSTEM with the

			
	 	 	 
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	 	 	name, address and scope of each sublicense and a copy of each sublicensee’s report as is
pertinent to calculation of amounts due SYSTEM under this Agreement.

	4.04	 	Non-Cash Transactions. Where there is no identifiable LICENSE INCOME, a hypothetical fair
market value price will be determined by the Parties jointly in good faith for the purpose of
calculating LICENSE INCOME.

ARTICLE V — LICENSEE RESPONSIBILITIES

	5.01	 	Diligence. LICENSEE will use commercially reasonable efforts to actively market the LICENSED
PRODUCTS and SERVICES and will provide a non-binding marketing plan to SYSTEM reflecting its
marketing efforts within ninety (90) days from the EFFECTIVE DATE. LICENSEE will provide
annual updates of such marketing plan.

	5.02	 	Failure to Maintain Diligence. Minimum diligence requirements for the LICENSED PRODUCTS and
SERVICES shall be satisfied by the payment of the minimum annual consideration amounts for the
prescribed BUSINESS YEARS set forth in Article 3.03. If LICENSEE fails to pay to SYSTEM the
prescribed minimum annual consideration within thirty (30) days after the receipt of a written
notice from SYSTEM notifying LICENSEE of the payment failure, SYSTEM shall have the right to
convert the license granted to LICENSEE with respect to each aspect of LICENSED PRODUCTS and
SERVICES to non-exclusive, by written notice to LICENSEE.

	5.03	 	Legal Compliance. LICENSEE must comply with all applicable federal, state and local laws and
regulations in its exercise of all rights granted to it by SYSTEM under this Agreement.

	5.04	 	[If applicable] No Royalties for Sales to U.S. Government. In accordance with 35 USC Section
200-212, LICENSEE has no duty to pay SYSTEM royalties under this Agreement on NET SALES made
to the United States Government, including any United States Government agency. LICENSEE
shall reduce the amount charged for a LICENSED PRODUCT sold to the United States Government by
an amount equal to the royalty otherwise due SYSTEM.

	5.05	 	[If applicable] U.S. Manufacture. In accordance with 35 USC Section 200-212, LICENSED
PRODUCTS shall be manufactured substantially in the United States of America.

ARTICLE VI — PATENTS

	6.01	 	Filing. SYSTEM will have the right to prepare and file, in accordance with its best
judgment, any and all applications for patents covering LICENSED TECHNOLOGY in the United
States that are solely owned by SYSTEM and LICENSEE will have the right to prepare and file
such applications for LICENSED TECHNOLOGY jointly owned by LICENSEE and SYSTEM. Applications
for patents shall be filed in the name of SYSTEM if owned by SYSTEM pursuant to the ARSRA and
in the joint names of SYSTEM and LICENSEE if jointly owned pursuant to the ARSRA. At
LICENSEE’s discretion, patents applications may be filed in any other jurisdiction in the
world.

			
	 	 	 
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	6.02	 	Abandoning patent applications. The following rules shall apply with respect to applications
for patents or SYSTEM owned or jointly owned LICENSED TECHNOLOGY. If the party controlling
prosecution intends to abandon any patent application or patent that party shall first give
sufficient written notice to the other party to permit the other party the opportunity to
assume such filing, examination and/or maintenance. LICENSEE and SYSTEM will consult with
regard to protection of LICENSED TECHNOLOGY.

	6.03	 	Jurisdictions. The obligations of this Article 6.03 shall not apply to any jurisdictions in
which the prosecuting party has elected not to apply for intellectual property protection.
LICENSEE and SYSTEM shall avoid carrying out any act that would prejudice the grant of patent
rights.

	6.04	 	Patent Maintenance. SYSTEM shall maintain at least one U.S. patent resulting from the
prosecution described hereinabove.

	6.05	 	Election not to file. LICENSEE will direct SYSTEM in writing no later than nine (9) months
following the date of filing for each U.S. patent application as to LICENSEE’s selection of
countries outside the United States in which SYSTEM shall seek corresponding patent
protection. SYSTEM shall then have the right to file corresponding patent applications at its
own expense in those countries not selected by LICENSEE; however, the license granted to
LICENSEE in this Agreement shall be non-exclusive in the countries where SYSTEM has filed and
is prosecuting patents or applications at its own expense.

	6.06	 	Prosecution and Maintenance of Non-U.S. Patents. Should LICENSEE select a country other than
the United States in which to file each corresponding patent application, and subsequently
elects not to continue to reimburse SYSTEM for the diligent prosecution and maintenance of
such patent or patent application, it shall so notify SYSTEM at least three (3) months prior
to taking (or not taking) any action which would result in abandonment, withdrawal, or lapse
of such patent or application. SYSTEM shall then have the right to continue maintenance or
prosecution of each such patent or application at its own expense; however, expenses incurred
prior to the point of LICENSEE taking (or not taking) such action shall remain the
responsibility of LICENSEE. The license granted to LICENSEE in this Agreement shall revert to
non-exclusive in the countries where SYSTEM is maintaining or prosecuting such patent or
application at its own expense.

	6.07	 	Financial Responsibility. Except as set forth in Articles 6.05 and 6.06, LICENSEE shall
reimburse SYSTEM for all expenses incurred by SYSTEM in filing, prosecuting, and maintaining
each patent application and patent under PATENT RIGHTS. LICENSEE shall provide payment as
reimbursement of SYSTEM’s documented expenses incurred in filing, prosecuting or maintaining
patent applications or patents as described above within thirty (30) days of receipt of
SYSTEM’s supporting invoice. SYSTEM shall use patent counsel reasonably acceptable to
LICENSEE. LICENSEE acknowledges, however, that SYSTEM’s patent counsel must be approved by
the Attorney General of the State of Texas.

	6.08	 	Information. SYSTEM shall disclose to LICENSEE the complete texts of all patent applications
filed by SYSTEM under PATENT RIGHTS as well as all information received concerning office
actions, the institution or possible institution of any interference, opposition,
re-examination, reissue, revocation, nullification or any other

			
	 	 	 
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	 	 	official proceeding involving PATENT RIGHTS, all in a timely manner so as to allow LICENSEE
to provide input i.e. at least thirty (30) days before a filing needs to be made or a
decision needs to be taken. SYSTEM shall provide to LICENSEE the opportunity to provide
input to the development of each patent application and any official proceedings
thereafter, and will take such input into account.

ARTICLE VII — PAYMENTS AND REPORTS

	7.01	 	When Payments are Due. Unless otherwise specified, payments shall be made annually. Payments
shall be made to The Texas A&M University System, in College Station, Texas, not later than
sixty (60) days after the last day of the calendar year in which they accrue.

	7.02	 	Royalty Reports. LICENSEE shall provide a sales report to SYSTEM each year, providing
information sufficient to allow SYSTEM to calculate amounts due SYSTEM for the reporting
period, in the form attached hereto as ANNEX I.

	7.03	 	Currency. Payment due to SYSTEM shall be paid in U.S. dollars. Royalty payments requiring
conversion shall use the exchange rate as reported in The Wall Street Journal on the
last business day of the royalty reporting period.

	7.04	 	Inspection of Books and Records. At its own expense, SYSTEM may annually inspect LICENSEE’s
books and records as needed to determine royalties payable. LICENSEE shall maintain such books
and records for at least three (3) years following the dates of the underlying transactions.
Any such inspections shall be in confidence and conducted during ordinary business hours, and
SYSTEM will provide LICENSEE prior notice two (2) weeks before making such inspections. SYSTEM
must employ an independent Certified Public Accountant reasonably acceptable to LICENSEE for
this purpose, who will only report to SYSTEM such information as necessary, to determine
royalties payable to SYSTEM and LICENSEE’s compliance with any related obligations to SYSTEM.
If SYSTEM’s audit identifies a shortage of five percent (5%) or more of amounts due to SYSTEM,
then LICENSEE shall pay the costs of SYSTEM’s audit. LICENSEE shall pay all amounts due as a
consequence of such audit to SYSTEM promptly, with interest.

	7.05	 	Interest Charges. Overdue payments may, at the sole discretion of SYSTEM, be subject to a
daily charge commencing on the 31st day after such payment is due, compounded monthly, at the
rate of either one and one-half percent (1.5%) per month or the highest legal interest rate,
whichever is lower. The payment of such interest will not foreclose SYSTEM from exercising any
other rights it may have as a consequence of the lateness of any payment.

ARTICLE VIII — TERM AND TERMINATION

	8.01	 	Expiration. This Agreement, unless sooner terminated as provided herein, shall remain in
effect on a country-by-country basis until (a) failure of SYSTEM to obtain at least one issued
patent for protection of LICENSED TECHNOLOGY, (b) expiration of the last to expire patent
under PATENT RIGHTS, or (c) final and unappealable determination by a court of competent
jurisdiction that PATENT RIGHTS are invalid.

	8.02	 	Termination by Licensee. LICENSEE may terminate this Agreement by providing written notice
to SYSTEM at least ninety (90) days before the termination is to take effect.

			
	 	 	 
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	8.03	 	Termination by System. If LICENSEE materially breaches this Agreement, SYSTEM may give
LICENSEE written notice of the breach. LICENSEE shall have a period of sixty (60) days from
receipt of the notice to cure the breach. If LICENSEE does not cure the breach within this
period, SYSTEM may terminate this Agreement in writing without further notice.

	8.04	 	Matters Surviving Termination. All accrued obligations and claims, including reimbursement
of patent expenses, license fee obligations, royalty obligations, minimum annual consideration
obligations, interest charge obligations, and all other financial obligations, and claims or
causes of action for breach of this Agreement, shall survive termination of this Agreement.
Obligations of confidentiality shall survive termination of this Agreement. This section
controls in the case of a conflict with any other section of this Agreement.

ARTICLE IX — INDEMNIFICATION AND REPRESENTATION

	9.01	 	Indemnification. LICENSEE SHALL AT ALL TIMES DURING THE TERM OF THIS AGREEMENT AND THEREAFTER
INDEMNIFY, DEFEND, AND HOLD HARMLESS SYSTEM, ITS REGENTS, OFFICERS, AND EMPLOYEES AGAINST ANY
CLAIM, PROCEEDING, DEMAND, LIABILITY OR EXPENSE (INCLUDING LEGAL EXPENSE AND REASONABLE
ATTORNEYS’ FEES) WHICH RELATES TO INJURY TO PERSONS OR TO PROPERTY, ANY ACTION BROUGHT BY A
THIRD PARTY ALLEGING INFRINGEMENT OF INTELLECTUAL PROPERTY RIGHTS, OR AGAINST ANY OTHER CLAIM,
PROCEEDING, DEMAND, EXPENSE, AND LIABILITY OF ANY KIND WHATSOEVER RESULTING FROM THE
PRODUCTION, MANUFACTURE, SALE, COMMERCIAL USE, LEASE, CONSUMPTION, OR ADVERTISEMENT OF
LICENSED PRODUCTS OR ARISING FROM ANY OBLIGATION OF LICENSEE OR SUBLICENSEE(S) UNDER THIS
AGREEMENT AND NOT CAUSED BY BREACH OF THIS AGREEMENT BY SYSTEM (HEREINAFTER JOINTLY REFERRED
TO AS “CLAIMS”), PROVIDED THAT SYSTEM SHALL PROMPTLY PROVIDE WRITTEN NOTICE OF ANY CLAIM TO
LICENSEE, AND THAT, SUBJECT TO THE APPROVAL OF THE ATTORNEY GENERAL OF THE STATE OF TEXAS,
LICENSEE SHALL HAVE THE RIGHT TO CONDUCT THE DEFENSE OF ANY CLAIM, AND THAT SYSTEM SHALL
COOPERATE WITH LICENSEE AS LICENSEE MAY REQUEST IN ANY SUCH DEFENSE, AT LICENSEE’S REQUEST AND
EXPENSE.

	9.02	 	Representation. SYSTEM represents that it owns and has title to PATENT RIGHTS and has the
full right and power to grant the license set forth in Article 2.01, and that there are no
outstanding agreements, assignments, or encumbrances inconsistent with the provisions of this
Agreement. SYSTEM MAKES NO OTHER REPRESENTATIONS AND EXTENDS NO OTHER WARRANTIES OF ANY KIND,
EITHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY OR
FITNESS FOR A PARTICULAR PURPOSE, NOR DOES SYSTEM ASSUME ANY OBLIGATIONS WITH RESPECT TO
INFRINGEMENT OF PATENT RIGHTS OR OTHER RIGHTS OF THIRD PARTIES DUE TO LICENSEE’S ACTIVITIES
UNDER THIS AGREEMENT.

ARTICLE X — NOTICES

			
	 	 	 
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	10.01	 	Notices. Payments, notices, or other communications required by this Agreement shall be
sufficiently made or given if mailed by certified First Class United States mail, postage
pre-paid, or by commercial carrier (e.g., FedEx, UPS, etc.) when such carrier maintains
receipt or record of delivery, addressed to the address stated below, or to the last address
specified in writing by the intended recipient.
	 
	 	 	If to SYSTEM:

Director, Licensing and Intellectual Property

Office of Technology Commercialization

800 Raymond Stotzer Parkway, Suite 2020

College Station, TX 77845

Phone: (979) 847-8682

Fax: (979) 845-1402

	 	 	 

	If to LICENSEE for Legal Matters:

	 	for Financial Matters:
	         Director of Business Development

	 	Director of Business Development
	         cc: Legal Department

	 	cc: Chief Financial Officer
	         Ceres, Inc.

	 	Ceres, Inc.
	         1535 Rancho Conejo Blvd.

	 	1535 Rancho Conejo Blvd.
	         Thousand Oaks, CA 91320

	 	Thousand Oaks, CA 91320

ARTICLE XI — MISCELLANEOUS PROVISIONS

	11.01	 	Notice of Infringement. SYSTEM and LICENSEE shall promptly notify one another in writing of
any alleged infringement of any PATENT RIGHTS. Within thirty (30) days after receipt of such
notice, SYSTEM and LICENSEE shall formulate a strategy for resolving the alleged infringement.
LICENSEE acknowledges that SYSTEM’s involvement, participation, and representation in any
litigation requires the prior written consent of SYSTEM and the Attorney General of the State
of Texas, and subject to the granting of that consent, SYSTEM may be joined as a party in any
action brought by LICENSEE, so long as LICENSEE shall pay all of SYSTEM’s reasonable costs and
expenses. LICENSEE will have the right, at its own discretion and expense, to take any action
to enforce and to initiate and prosecute suits for infringement PATENT RIGHTS covering jointly
owned Subject Inventions. LICENSEE and SYSTEM will consult with each other upon a course of
action and enforcement strategy. LICENSEE will be responsible for the conduct of any such
enforcement action, and SYSTEM will reasonably cooperate with LICENSEE to effect the
enforcement action, and if appropriate, determine a settlement position. LICENSEE shall be
responsible for retaining counsel but will consult with SYSTEM and retain counsel reasonably
acceptable to SYSTEM. For purposes of settlement, LICENSEE shall be the contact with the
Parties’ counsel as well as the opposing Party(ies) and shall have the right to enter into
settlements, subject to the prior written consent of SYSTEM if such settlement involves any
admission adverse to LICENSEE or SYSTEM and further, if required by applicable law, of the
Attorney General of the State of Texas, in the case of SYSTEM such consent not to be
unreasonably withheld and to be provided to LICENSEE within ten (10) business days of receipt
of LICENSEE’s written request. LICENSEE shall keep SYSTEM advised as to all developments with
respect to the enforcement action and settlement discussions, which
includes supplying to SYSTEM copies of all papers received and filed in sufficient time for
SYSTEM to comment thereon. SYSTEM may attend any and all meetings with the Parties’
counsel and the opposing side for settlement purposes. If necessary, and subject to 

 
			
	 	 	 
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	 	 	the consent of the Attorney General of the State of Texas, SYSTEM agrees to enter into a joint
defense agreement. Any damages received by LICENSEE as a result of an enforcement action
of rights to jointly owned Subject Inventions, after deduction of all enforcement related
costs incurred by LICENSEE, shall be considered as NET SALES or LICENSE INCOME, as
appropriate, for the purpose of remuneration payments to SYSTEM.

	11.02	 	Export Controls. It is understood that SYSTEM is subject to United States laws and
regulations controlling the export of technical data, computer software, laboratory prototypes
and other commodities, and that its obligations hereunder are contingent on compliance with
applicable United States export laws and regulations. The transfer of certain technical data
and commodities may require a license from the cognizant agency of the United States
Government or written assurances by LICENSEE that LICENSEE shall not export data or
commodities to certain countries without prior approval of such agency. SYSTEM neither
represents that a license shall not be required nor that, if required, it shall be issued.

	11.03	 	Confidential Information. Sales reports submitted by LICENSEE under Article VII and audit
reports made pursuant to Article 7.04 shall be considered as Confidential Information under
this Agreement and shall not be disclosed by SYSTEM to any third party except as may be
required in response to a valid order of a court or other government body of the United States
or any political subdivision thereof, as required under the Texas Public Information Act.
Should the Parties contemplate exchange of other information of a confidential nature, they
shall enter into a separate confidentiality agreement.

	11.04	 	Non-Use of Names. LICENSEE shall not use the names of The Texas A&M University System, nor
of any of its employees or components, nor any adaptation thereof, in any advertising,
promotional or sales literature without the prior written consent obtained from SYSTEM in each
case, except that LICENSEE may state that it is licensed by SYSTEM under PATENT RIGHTS.

	11.05	 	Trademarks. LICENSEE may select, own and use its own trademark on LICENSED PRODUCTS.
However, nothing herein shall be construed as granting to LICENSEE any license or other right
under any trade name, trademark, or service mark owned or licensed by SYSTEM. Conversely,
SYSTEM shall have no rights to trade names, trademarks, or service marks owned by LICENSEE.

	11.06	 	Assignment of this Agreement. This Agreement binds and enures to the benefit of the
Parties, their successor or assigns, but may not be assigned by either Party without the prior
written consent of the other Party; provided however, LICENSEE shall have the right to assign
its rights and obligations under this Agreement to any AFFILIATED COMPANY without such prior
consent, but with written notice to SYSTEM. LICENSEE shall also have the right to assign its
rights and obligations under this Agreement to a third party in conjunction with the transfer
to such third party of substantially all of the assets of LICENSEE associated with performance
under this Agreement without such prior consent.

	11.07	 	Force Majeure. Other than an obligation for the payment of money, SYSTEM, upon receipt of
documentation from LICENSEE which it deems appropriate, shall excuse any
breach of this Agreement, which is proximately caused by war, strike, act of God, or other
similar circumstance normally deemed outside the control of well-managed businesses.

			
	 	 	 
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	11.08	 	Entire Agreement. Other than the ARSRA and the IPRA and any licenses issued by SYSTEM to
CERES thereunder, this Agreement contains the entire understanding of the Parties with respect
to PATENT RIGHTS, and supersedes all other written and oral agreements between the Parties
with respect to PATENT RIGHTS. It may be modified only by a written amendment signed by the
Parties.

	11.09	 	Governing Law. The validity, interpretation, and enforcement of this Agreement shall be
governed and determined by the laws of the State of Texas, excluding the conflict of laws
rules which might require the application of the laws of another jurisdiction.

	11.10	 	Disputes.

A. The Parties shall make every possible attempt to resolve in an amicable manner all
disputes between the Parties concerning the interpretation of this Agreement.

B. The Parties must use the dispute resolution process provided in Chapter 2260, Texas
Government Code, and the related rules adopted by the Texas Attorney General to attempt to
resolve any claim for breach of contract made by LICENSEE that cannot be resolved in the
ordinary course of business. LICENSEE must submit written notice of a claim of breach of
contract under this Chapter to B.J. Crain, Associate Vice Chancellor, who will examine
LICENSEE’s claim and any counterclaim and negotiate with LICENSEE in an effort to resolve
the claim.

	11.11	 	Headings. Headings appear solely for convenience of reference. Such headings are not part
of, and shall not be used to construe, this Agreement.

	11.12	 	No Waiver; Severability. No waiver of any breach of this Agreement shall constitute a
waiver of any other breach of the same or other provision of this Agreement and no waiver
shall be effective unless made in writing. This Agreement, to the greatest extent
possible, shall be construed so as to give validity to all of the provisions hereof. If any
provision of this Agreement is or becomes invalid, is ruled illegal by a court of competent
jurisdiction or is deemed unenforceable under the current applicable law from time to time in
effect during the term of this Agreement, the remainder of this Agreement will not be affected
or impaired thereby and will continue to be construed to the maximum extent permitted by law.
In lieu of each provision which is invalid, illegal or unenforceable, there will be
substituted or added as part of this Agreement by mutual written agreement of the Parties, a
provision which will be as similar as possible, in economic and business objectives as
intended by the Parties to such invalid, illegal or unenforceable provision, but will be
valid, legal and enforceable.

	11.13	 	Damages. Neither Party shall be liable for indirect, special, remote, incidental or
consequential damages or loss of profit in connection with this Agreement or its
implementation.

ARTICLE XII — CONFIDENTIALITY

	12.01	 	As used in this Agreement, the term “Confidential Information” shall mean all
non-public-information received by one Party from the other in the framework of this
Agreement. Confidential Information may include, but is not limited to, information

			
	 	 	 
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	 	 	concerning the disclosing Party’s operations, research, processes, techniques, data, sales,
marketing, promotion and other activities. Any reports provided by LICENSEE to SYSTEM
pursuant to this Agreement are Confidential Information. Confidential Information
disclosed that Discloser, in good faith, regards as confidential and/or proprietary shall be
clearly marked as “Confidential,” “Proprietary,” or bear any other appropriate notice
indicating the sensitive nature of such Confidential Information. Any Confidential
Information not easily marked, including Confidential Information that may be orally
disclosed, shall, within thirty (30) days of its disclosure, be referenced in writing and
designated confidential by Discloser.

	12.02	 	Sales reports submitted by LICENSEE under Article VII and audit reports made pursuant to
Article 7.04 shall be considered as Confidential Information under this Agreement and shall
not be disclosed by SYSTEM to any third party except as may be required in response to a valid
order of a court or other government body of the United States or any political subdivision
thereof, as required under the Texas Public Information Act. Should the Parties contemplate
exchange of other information of a confidential nature, they shall enter into a separate
confidentiality agreement.

	12.03	 	From receipt to five (5) years after the disclosure of the relevant Confidential
Information, the receiving Party shall not use, except as is expressly allowed by this
Agreement, and/or disclose any Confidential Information to any third party without the prior
written consent of the disclosing Party. Confidential Information shall only be made
accessible to each Party’s employees and/or agents on a need-to-know basis.

	12.04	 	The receiving Party shall have no obligations of confidentiality for information that: can
be established through clear and convincing evidence to be in the possession of the receiving
Party prior to the disclosure by the disclosing Party; is or becomes public knowledge through
no fault of the receiving Party; is acquired from others not under an obligation of
confidentiality to the disclosing Party; and/or was independently developed by the receiving
Party as demonstrated by clear and convincing evidence prepared contemporaneously with such
independent development. In addition, LICENSEE shall have the right to use and disclose
SYSTEM Confidential Information (a) as required to file for INTELLECTUAL PROPERTY RIGHTS, (b)
as required to exercise its commercialization rights granted in or on the basis of this
Agreement and for related marketing activities, (c) as required by laws, rules or regulations
or court orders such as, without limitation, SEC or IRS regulations, or (d) in LICENSEE’S
reasonable judgment, to (potential) investors and business partners. Further, SYSTEM shall
have the right to use and disclose LICENSEE Confidential Information if any such information
is ordered produced or disclosed by a court or administrative body of competent jurisdiction
or otherwise required by law, or required to be disclosed by the Attorney General of The State
of Texas, but only to the extent of such required production or disclosure. To the extent
reasonably possible SYSTEM will give prior written notice of such required production or
disclosure to LICENSEE and if so requested by LICENSEE, use reasonable efforts to obtain
confidential treatment of the information disclosed to the maximum extent possible.

     The Parties have caused this Agreement to become effective as of the date last executed below.

			
	 	 	 
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	For Ceres, Inc. (“CERES”)	 	 	 	For The Texas A&M University System
(“TAMUS”)
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 	 	 
	Name:	 	 	 	Brett Cornwell
	Title:	 	 	 	Associate Vice Chancellor for Commercialization
	Date:

	 	 	 	 	 	Date:	 	 
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	For Ceres, Inc. (“CERES”)	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 	 	 
	Title:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 

			
	 	 	 
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ANNEX I

to the Example License Agreement for Subject Inventions

between Ceres, Inc. and The Texas A&M University System

Royalty Report

[template to be developed during negotiations of license]

			
	 	 	 
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Appendix B

to the Amended and Restated Intellectual Property Rights Agreement

between Ceres, Inc. and The Texas A&M University System

Example License Agreement for Lines

LINE LICENSE AGREEMENT

Between

Ceres, Inc.

and

The Texas A&M University System

     This agreement (“Agreement”) is made and entered into by and between Ceres, Inc., a
corporation with principal offices in Thousand Oaks, California, (“LICENSEE”) and The Texas A&M
University System with principal offices in College Station, Texas, (“SYSTEM”), an agency of the
State of Texas, collectively referred to as “Parties” and individually as “Party.”

WITNESSETH:

     WHEREAS, SYSTEM, through The Texas Agricultural Experiment Station (a member of SYSTEM, and
now known as Texas AgriLife Research) (“AGRILIFE”), and LICENSEE have entered into an Amended and
Restated Sponsored Research Agreement dated [insert final ARSRA date] (the “ARSRA”) as well as an
associated Amended And Restated Intellectual Property Rights Agreement dated as of August 29, 2007
(“IPRA”);

     WHEREAS, one or more LINES (as defined hereinafter) have been created by SYSTEM and used by
LICENSEE pursuant to the ARSRA;

     WHEREAS, SYSTEM desires that the LINES be commercialized for the public benefit and welfare;

     WHEREAS, SYSTEM has provided the LINES to LICENSEE and LICENSEE has created the HYBRIDS, NEW
PARENTAL LINES, and/or DERIVATIVES (as defined hereinafter);

     WHEREAS, the HYBRIDS, NEW PARENTAL LINES, and/or DERIVATIVES, as applicable, are ready to be
commercialized;

     WHEREAS, LICENSEE has represented that it has certain marketing, engineering and financial
capabilities, and that it shall commit itself to a thorough and diligent program of development and
commercialization of the LINES and HYBRIDS, NEW PARENTAL LINES, and/or DERIVATIVES for public
benefit; and

			
	 	 	 
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     WHEREAS, SYSTEM is willing to grant to LICENSEE, and LICENSEE is willing to accept, a license
to use the LINES, upon the terms and conditions set forth below.

     NOW THEREFORE, in consideration of the mutual covenants and premises contained in this
Agreement, the receipt and sufficiency of which is acknowledged, the Parties agree as follows:

ARTICLE I — DEFINITIONS

	1.01	 	“AFFILIATED COMPANY” shall mean any company owned or controlled by, under common control with
or controlling LICENSEE, “control” meaning in this context the direct or indirect ownership of
more than fifty percent (50%) of the voting stock/shares of a company, or the power to
nominate at least half of the directors.

	1.02	 	“AGRILIFE GENETIC CONTRIBUTION” shall mean, for any specific HYBRID, DERIVATIVE or NEW
PARENTAL LINE: (a) the proportion of the nuclear genes of the HYBRID, DERIVATIVE or the NEW
PARENTAL LINE, as applicable, arisen from LINES, based on genetic contribution as determined
by pedigree as defined in the ARSRA; (b) a contribution to be determined on a case-by-case
basis in each case where a specific valuable phenotype of that HYBRID, DERIVATIVE or the NEW
PARENTAL LINE, as applicable, is attributable to specific ALLELE(s) optioned or licensed to
LICENSEE by SYSTEM; and (c) OTHER CONTRIBUTIONS from AGRILIFE.

	1.03	 	“ALLELE” shall mean a particular form of one or more genes determinant for a valuable
characteristic of a plant (e.g. drought tolerance, specific flowering time), discovered in the
Program as defined under the ARSRA by SYSTEM or by SYSTEM and LICENSEE jointly; provided that
the particular form of such gene or genes is covered by a VALID CLAIM.

	1.04	 	“BUSINESS YEAR” shall mean the twelve (12)-month period beginning September 1 and ending
August 31 of the following calendar year (e.g. the 2011 BUSINESS YEAR runs from September 1,
2010 through August 31, 2011.). LICENSEE may request from time to time to amend the starting
and ending dates defined as the BUSINESS YEAR as may be reasonable for the conduct of
LICENSEE’s business. Such amendment must be mutually agreed to in writing by the Parties.

	1.05	 	“COMMERCIAL SEED” shall mean seed of HYBRIDS that is sold for purposes other than the
production of propagating material.

	1.06	 	“DERIVATIVES” means plants made by a Receiving Party from the Original Materials (as defined
in the ARSRA) of the other Party through traditional or artificial means, excluding, however,
PROGENY of the Original Materials. DERIVATIVES further means any plant part or seed of
DERIVATIVES or biological samples derived from DERIVATIVES, or any PROGENY of DERIVATIVES.

	1.07	 	“EFFECTIVE DATE” shall mean the date this Agreement has been executed by the last Party.

	1.08	 	“EXISTING HYBRIDS” shall mean those HYBRIDS designated as [Identify one or more which are
subject of this license], developed and owned by LICENSEE prior to the EFFECTIVE DATE.

			
	 	 	 
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	1.09	 	“HYBRID” shall mean a seed or plant that has resulted from genetic crossbreeding between two
or more lines where those lines include (i) the LINE or (ii) one or more NEW PARENTAL LINES.

	1.10	 	“INTELLECTUAL PROPERTY RIGHTS” shall mean all rights in any patent, plant variety protection
certification, plant breeders’ rights, or any applications thereof, or any other intellectual
property protection, covering the LINES, HYBRIDS, DERIVATIVES, or NEW PARENTAL LINES, that may
be filed or exist in any jurisdiction in the world, with the exception of trademarks and
service marks. A list of such INTELLECTUAL PROPERTY RIGHTS will be more specifically included
in ANNEX I, which may be amended from time to time as provided in Article 6.05 and
evidenced in writing.

	1.11	 	“LICENSE INCOME” shall mean the amount actually received by either LICENSEE or any AFFILIATED
COMPANY in consideration for the grant of sublicenses to sublicensees that are not AFFILIATED
COMPANIES to the LINES or any HYBRID, DERIVATIVE or NEW PARENTAL LINE to exploit the same and
to produce and sell COMMERCIAL SEED, including up-front fees, lump sum payments and any
running royalties on a product-by-product and jurisdiction-by-jurisdiction basis.

	1.12	 	“LINE” and “LINES” shall mean [describe one or more Lines to be licensed, as applicable] of
the sorghum lines designated as [identify], which were created by SYSTEM either prior to the
conduct of the SRA (as defined in the ARSRA) or during the Program as defined in the ARSRA and
in which SYSTEM has ownership rights, and new genetic lines or populations developed by
LICENSEE through further selection within the LINES, as distinguished from crossing followed
by selection. LINE or LINES includes PROGENY.

	1.13	 	“NEW PARENTAL LINES” shall mean new genetic lines or populations which are developed by
breeding by LICENSEE and which has one or more of the LINES as a progenitor.

	1.14	 	“NET SALES” shall mean LICENSEE’s and AFFILIATED COMPANIES’ receipts for sales of COMMERCIAL
SEED or for SERVICES requiring the use of the LINES, to a bona fide, arms length customer,
less the sum of the following:

	 	(a)	 	sales taxes, tariffs, duties and/or use taxes directly
imposed with reference to particular sales;
	 
	 	(b)	 	outbound transportation prepaid or allowed, shipping,
packaging, cost of insurance in transit paid by LICENSEE or an AFFILIATED
COMPANY;
	 
	 	(c)	 	amounts allowed or credited on returns;
	 
	 	(d)	 	customary trade, quantity or cash discounts;
	 
	 	(e)	 	cost of any coating materials or treatments that may have
been applied to the COMMERCIAL SEED; and
	 
	 	(f)	 	other deductions which are appropriate to sales of the
LICENSED PRODUCTS may be included by mutual agreement of the Parties, to be
specified in ANNEX II to this Agreement.

	 	 	No deductions shall be made for commissions paid to individuals whether independent sales
agencies or regularly employed by LICENSEE. The value of sample size quantities

			
	 	 	 
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	 	 	of seed provided for demonstration, marketing or research purposes shall not be included in
NET SALES. Where there is no identifiable sale price (except for samples as referred to in
the previous sentence), or when COMMERCIAL SEED is sold to other than a bona fide, arms
length customer of LICENSEE or an AFFILIATED COMPANY, LICENSEE or the AFFILIATED COMPANY
shall be deemed to have received an amount of NET SALES calculated based on the final sale
of the COMMERCIAL SEED to an independent third party. If no such current price is
available, a hypothetical fair market value price will be determined by the Parties jointly
in good faith for the purpose of calculating NET SALES. Further, TRAIT FEES, if any, net
of any applicable deductions, shall be added to NET SALES if related to a trait contributed
by SYSTEM. NET SALES shall not include sales of COMMERCIAL SEED by LICENSEE to any
AFFILIATED COMPANY, by any AFFILIATED COMPANY to LICENSEE, or by any AFFILIATED COMPANY to
any other AFFILIATED COMPANY, except if the entity to which the COMMERCIAL SEED is sold is
the end user of such COMMERCIAL SEED.

	1.15	 	“OTHER CONTRIBUTIONS” shall mean (i) intellectual and technical contributions to the
development of the LINES or if from LICENSEE, to the development of the LINES, DERIVATIVES,
NEW PARENTAL LINES or HYBRIDS such as, without limitation, markers, gene-trait association
knowledge or composition knowledge, that inform the breeding and selection process, or
transgenic traits and (ii) financial contributions to the development of the LINES, or if from
LICENSEE, to the development of the LINES, NEW PARENTAL LINES, DERIVATIVES, or HYBRIDS.

	1.16	 	“PROGENY” shall mean the offspring of a plant produced through asexual propagation or sexual
multiplication or maintenance where such offspring is not substantially genetically different
from such plant.

	1.17	 	“SERVICE” shall mean any transaction with a third party in which LICENSEE or an AFFILIATED
COMPANY performs certain activities on behalf and at the request of a third party that would
if not performed by LICENSEE or an AFFILIATED COMPANY require a license under SYSTEM’S
INTELLECTUAL PROPERTY RIGHTS licensed hereunder, in exchange for payment, but excluding any
research collaboration or sponsored research agreement.

	1.18	 	“TRAIT FEE” shall mean any upfront or annual fee collected by LICENSEE or any AFFILIATED
COMPANY in conjunction with NET SALES as an additional remuneration for the sale of COMMERCIAL
SEED that has a particular valuable trait or characteristic.

	1.19	 	“VALID CLAIM” shall mean a claim of a patent application or patent owned or co-owned by
SYSTEM, which claim has been maintained and has not expired and which has not been declared
invalid or unenforceable by a competent court or authority in a final judgment against which
no appeal to a court or authority having mandatory jurisdiction is possible or the term for
any such appeal has expired without the appeal being filed.

ARTICLE II — LICENSE GRANT

	2.01	 	Grant of Rights in LINES. Subject to the reservations in Article 2.02, SYSTEM grants to
LICENSEE and its AFFILIATED COMPANIES an exclusive world-wide license and right, including a
license under SYSTEM’s rights and interest in any INTELLECTUAL

			
	 	 	 
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	 	 	PROPERTY RIGHTS covering the LINES, DERIVATIVES, and/or HYBRIDS (i) to maintain and
increase seed of the LINES; (ii) to develop NEW PARENTAL LINES; (iii) to develop
DERIVATIVES, and/or HYBRIDS; and (iv) to produce and sell COMMERCIAL SEED, and to grant
sublicenses of the same scope, including the right to sublicense use of NEW PARENTAL LINES,
DERIVATIVES, and/or HYBRIDS to the end of the term of this Agreement as prescribed in
Article VIII.

	2.02	 	Reservation. SYSTEM reserves an irrevocable, worldwide, nonexclusive, royalty-free right to
practice the grant made in Article 2.01 under (i), (ii) and (iii) for research, demonstration
and educational purposes only, and not for commercial purposes or for the commercial benefit
of third parties. SYSTEM shall comply with the provisions of the ARSRA, and the IPRA, when
exercising this right..

	2.03	 	[if applicable] Government Reservation. Rights under this Agreement are subject to rights
required to be granted to the Government of the United States of America pursuant to 35 USC
Section 200-212, including a nonexclusive, nontransferable, irrevocable, paid-up license to
practice or have practiced for or on behalf of the United States any patented LINES throughout
the world.

ARTICLE III — CONSIDERATION

	3.01	 	Up-front Fee. As consideration for the license granted in this Agreement, LICENSEE shall pay
a single up-front fee of [identify word and number amount].

	3.02	 	Royalty Rate. In addition, LICENSEE shall pay SYSTEM a royalty on NET SALES of COMMERCIAL
SEED of each HYBRID, which will be calculated in accordance with this Article 3.02. Whenever a
particular HYBRID, or for sublicensing purposes, a particular DERIVATIVE and/or NEW PARENTAL
LINE is ready for commercial release, LICENSEE will notify SYSTEM thereof, and provide the
applicable royalty rate based on the principles set forth in this Article 3.02 with
information on the calculation of such rate.

	 	a)	 	Base Rate. Where the COMMERCIAL SEED is of a HYBRID which is entirely
composed of AGRILIFE GENETIC CONTRIBUTION, and no OTHER CONTRIBUTIONS from LICENSEE,
the royalty rate shall be [identify word and number amount] (XX%) of NET SALES if the
HYBRID results solely from the LINE or LINES and another line licensed under the same
terms and conditions regarding royalty payments from SYSTEM;
	 
	 	 	 	If a HYBRID is not entirely composed of AGRILIFE GENETIC CONTRIBUTION, the royalty
rate shall be calculated by taking the base rate specified in this Article 3.02(a),
and reducing the applicable base rate in function of the dilution of the AGRILIFE
GENETIC CONTRIBUTION in such HYBRID by:

	 	—	 	OTHER CONTRIBUTIONS from LICENSEE; and
	 
	 	—	 	crossing of the LINE OR LINES which is or are a progenitor of
such HYBRID with other germplasm, including, but not limited to
DERIVATIVES, and/or NEW PARENTAL LINES.

			
	 	 	 
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	 	 	 	On the basis of the foregoing calculation, the royalty rate on NET SALES for the
EXISTING HYBRIDS is [insert word and number amount] (this should be specified here
since the EXISTING HYBRIDS are defined/known at time of execution). The applicable
royalty rate for other HYBRIDS, DERIVATIVES, or NEW PARENTAL LINES created using
the LINES will be determined using the process described in this Article 3.02.
	 
	 	b)	 	No royalties shall be due with respect to HYBRIDS, DERIVATIVES, or NEW
PARENTAL LINES that contain less than five percent (5%) AGRILIFE GENETIC CONTRIBUTION
and contain no specific ALLELE(s).
	 
	 	c)	 	If SYSTEM has any comments or questions concerning LICENSEE’s applicable
royalty rate for a HYBRID, DERIVATIVE, or NEW PARENTAL LINE, SYSTEM will inform
LICENSEE thereof in writing within thirty (30) days from the date of LICENSEE’s
notification and the Parties will discuss in good faith. If SYSTEM does not respond
in writing to the aforementioned notification of LICENSEE within thirty (30) days, the
royalty rates in such notification shall be final. If a dispute regarding the royalty
rate arises that cannot be resolved amicably within thirty (30) days after LICENSEE’s
aforementioned notification, the following procedures shall apply: such dispute shall
be referred to a mutually agreed expert whose decision shall be final. Each Party
shall submit to the expert within fifteen (15) days of his appointment its position in
writing on the appropriate royalty rate. Such expert shall be required to choose the
one of such two (2) party positions that the expert considers most reasonable in the
circumstances and shall not make any independent determination (“Royalty Expertise
Procedure”).

	3.03	 	Minimum Annual Consideration. In order to maintain this exclusive license to the LINE,
LICENSEE shall pay to SYSTEM minimum annual consideration as follows:

	 	(a)	 	for the 20___ BUSINESS YEAR: no payment will be due;
	 
	 	(b)	 	for the 20__ BUSINESS YEAR: [identify word and number amount]; and
	 
	 	(c)	 	for the 20__ BUSINESS YEAR until [the 20___ BUSINESS YEAR or termination or
expiration of this Agreement]: [identify word and number amount] per BUSINESS YEAR.

	 	 	LICENSEE’S payment of royalties for a BUSINESS YEAR due under Articles 3.02 and 4.02, shall
be credited against the minimum annual consideration due in respect of such BUSINESS YEAR
pursuant to this Article 3.03. In the event that LICENSEE’s payment of royalties for a
BUSINESS YEAR due under Articles 3.02 and 4.02 do not meet or exceed the required minimum
annual consideration, as specified in this Article, LICENSEE’s royalty payment for the
BUSINESS YEAR shall include payment of the balance needed to achieve the required minimum.
In the event this Agreement expires or is terminated prior to the end of a BUSINESS YEAR,
the corresponding minimum annual consideration provided for in this Article shall be
prorated for that BUSINESS YEAR.
	 
	3.04	 	Intellectual Property Rights. The royalties and other payments due under Articles III and IV
of this Agreement are in consideration of all INTELLECTUAL PROPERTY RIGHTS listed in ANNEX I.
As additional consideration for the license granted in this Agreement,

			
	 	 	 
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	 	 	LICENSEE shall bear the reasonable documented expenses incurred in the filing, prosecution
and maintenance of INTELLECTUAL PROPERTY RIGHTS on which an exclusive license is granted
pursuant to Article 2.01, as further described in
Article VI.

	3.04	 	Non-exclusive License Royalty Rate. If an exclusive license on a LINE, which is a parental
line of the HYBRID of which COMMERCIAL SEED is sold, reverts to or is non-exclusive pursuant
to Article 5.02 or any other applicable provisions or upon LICENSEE’s election, a lower
royalty rate not to exceed fifty percent (50%) of the exclusive royalty rate shall be
negotiated in good faith between the Parties. The start of such negotiations shall be
evidenced by written notice from one Party to the other initiating such negotiations, and such
negotiations shall not extend beyond ninety (90) days from the start thereof without the
mutual consent of both Parties (“Negotiation Period”). If the Parties fail to reach agreement
within the Negotiation Period, the non-exclusive royalty rate shall be settled in accordance
with the following procedures: the disputed royalty rate shall be referred to a mutually
agreed impartial expert whose decision shall be final. Each Party shall submit to the expert
within fifteen (15) days of his appointment its position in writing on the disputed royalty
rate. Such expert shall be limited to choosing the one of such two (2) party positions that
the expert considers most reasonable in the circumstances and shall not make any other
determination. Neither Party shall be bound by any determination by the expert which, in the
opinion of Party’s counsel, will result or be likely to result in that Party violating any
applicable law or regulation.

	3.05	 	Royalty Duration. The license granted under this Agreement in respect of the LINES shall be
deemed to be fully paid up, and no further amounts shall be due or payable by LICENSEE under
this Agreement in respect of such LINE or LINES (including, without limitation, in respect of
any HYBRID, DERIVATIVE or NEW PARENTAL LINE), on a country-by-country basis, with effect from
(a) the expiration of all registered or patented INTELLECTUAL PROPERTY RIGHTS solely or
jointly owned by SYSTEM covering such LINE in such country, or (b) in countries where the LINE
which is not covered by any registered or patented INTELLECTUAL PROPERTY RIGHTS solely or
jointly owned by SYSTEM in such country, the expiration of all registered or patented
INTELLECTUAL PROPERTY RIGHTS solely or jointly owned by SYSTEM covering such LINE in the
United States of America.

ARTICLE IV —SUBLICENSES

	4.01	 	Sublicenses. LICENSEE and its AFFILIATED COMPANIES may grant sublicenses to persons, firms or
corporations under such conditions as it may arrange, subject to terms and conditions
consistent with this Agreement, as long as each such sublicense is not repugnant to the public
policies of SYSTEM, the State of Texas, or the United States.

	4.02	 	Sublicensee Consideration. LICENSEE shall pay to SYSTEM a royalty on LICENSE INCOME as
follows:

	 	a)	 	Base Rate. Where the sublicense is for a HYBRID, DERIVATIVE or a LINE which
is entirely composed of AGRILIFE GENETIC CONTRIBUTION, and no OTHER CONTRIBUTIONS from
LICENSEE, the royalty rate shall be [insert word and number amount] percent (XX%) of
LICENSE INCOME.

			
	 	 	 
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	 	b)	 	If the sublicense is for a HYBRID, DERIVATIVE or LINE that is not entirely
composed of AGRILIFE GENETIC CONTRIBUTION, or for a NEW PARENTAL LINE, the royalty
rate shall be calculated by taking:

	 	(i)	 	the base rate specified in Article 4.02(a);
	 
	 	(ii)	 	and reducing the applicable base rate in function of the
dilution of the AGRILIFE GENETIC CONTRIBUTION in such HYBRID, LINE or NEW
PARENTAL LINE by:

	 	—	 	 OTHER CONTRIBUTIONS from LICENSEE, and
	 
	 	—	 	 in the case of HYBRIDS, the crossing of the LINE which is a
progenitor of such HYBRID with other germplasm, including, but not
limited to, DERIVATIVES, and/or NEW PARENTAL LINES.

On the basis of the foregoing calculation, the royalty rate on LICENSE INCOME for
the EXISTING HYBRIDS is [insert word and number amount] percent (XX%). For other
HYBRIDS, DERIVATIVES, or NEW PARENTAL LINES created using the LINES, the process
for determining the applicable royalty rate as described in this Article 4.02 and
as defined in Articles 3 and 4 of Appendix B of the IPRA in effect upon the
EFFECTIVE DATE of this Agreement shall be used.

	4.03	 	Reporting. LICENSEE shall notify SYSTEM of the grant of sublicense to a third party and
provide a redacted copy of the sublicense to SYSTEM. LICENSEE shall not redact any
information unless it could be reasonably considered sensitive to LICENSEE’s business. Upon
reasonable notice by SYSTEM, SYSTEM may through an attorney-at-law review an unredacted copy
of the sublicense but shall not provide any redacted information to business persons within
SYSTEM. LICENSEE shall also provide SYSTEM with the name, address and scope of each
sublicense and a copy of each sublicensee’s report as is pertinent to calculation of amounts
due SYSTEM under this Agreement.

	4.04	 	Non-Cash Transactions. Where there is no identifiable LICENSE INCOME, a hypothetical fair
market value price will be determined by the Parties jointly in good faith for the purpose of
calculating LICENSE INCOME.

ARTICLE V — LICENSEE RESPONSIBILITIES

	5.03	 	Diligence. LICENSEE will use commercially reasonable efforts to actively market the EXISTING
HYBRIDS and will provide a non-binding marketing plan to SYSTEM reflecting its marketing
efforts within ninety (90) days from the EFFECTIVE DATE. LICENSEE will provide annual updates
of such marketing plan.

	5.04	 	Failure to Maintain Diligence. Minimum diligence requirements for the LINE shall be satisfied
by the payment of the minimum annual consideration amounts for the prescribed BUSINESS YEARS
set forth in Article 3.03. If LICENSEE fails to pay to SYSTEM the prescribed minimum annual
consideration within thirty (30) days after the receipt of a written notice from SYSTEM
notifying LICENSEE of the payment failure, SYSTEM shall have the right to convert the license
granted to LICENSEE with respect to each LINE to non-exclusive, by written notice to LICENSEE.

			
	 	 	 
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	5.05	 	Legal Compliance. LICENSEE must comply with all applicable federal, state and local laws and
regulations in its exercise of all rights granted to it by SYSTEM under this Agreement.

	5.06	 	[if applicable] No Royalties for Sales to U.S. Government. In accordance with 35 USC
Section 200-212, LICENSEE has no duty to pay SYSTEM royalties under this agreement on NET
SALES made to the United States Government, including any United States Government Agency.
LICENSEE shall reduce the amount charged for COMMERCIAL SEED covered by patent applications or
patents licensed under this Agreement sold to the United States Government by an amount equal
to the royalty otherwise due SYSTEM.

	5.07	 	[if applicable] U.S. Manufacture. In accordance with 35 USC Section 200-212, COMMERCIAL SEED
covered by patent applications or patents licensed under this Agreement shall be manufactured
substantially in the United States of America.

ARTICLE VI — INTELLECTUAL PROPERTY

	6.01	 	Filing. LICENSEE will have the right to prepare and file, in consultation with SYSTEM, any
and all applications for patents, plant variety rights or other forms of intellectual property
protection or variety registration, in any jurisdiction throughout the world, for HYBRIDS, the
LINES and NEW PARENTAL LINES, whether solely or jointly owned by SYSTEM. At the request of
LICENSEE, SYSTEM will cooperate fully with LICENSEE by providing information and executing
documents necessary for LICENSEE to conduct the activities concerning the filings, prosecution
and other proceedings anticipated under this paragraph. Applications for patents or plant
variety rights on each particular HYBRID or the LINES shall be filed in the name of SYSTEM
(AGRILIFE) if owned by SYSTEM pursuant to the ARSRA, in the name of LICENSEE (CERES) if owned
by LICENSEE pursuant to the ARSRA and in the joint names of SYSTEM (AGRILIFE) and LICENSEE
(CERES) if jointly owned pursuant to the ARSRA. Applications for patents or plant variety
rights on NEW PARENTAL LINES shall be filed in the name of LICENSEE (CERES). For the avoidance
of doubt, LICENSEE acknowledges that applications filed under this Article 6.01 that are
solely in the name of LICENSEE shall not affect LICENSEE’s obligations to SYSTEM, including
but not limited to LICENSEE’s obligations under Article III with respect to the LINE, HYBRIDS,
and NEW PARENTAL LINES claimed in such applications.

	6.02	 	Abandoning IP Applications. The following rules shall apply with respect to applications for
intellectual property protection on SYSTEM owned or jointly owned LINES or HYBRIDS. If the
Party controlling prosecution intends to abandon any patent plant variety rights, pending or
granted in any jurisdiction, that Party shall first give sufficient written notice to the
other Party to permit the other Party the opportunity to assume such filing, examination
and/or maintenance.

	6.03	 	Jurisdiction. The obligations of this Article 6.03 shall not apply to any jurisdictions in
which the prosecuting Party has elected not to apply for intellectual property protection.
LICENSEE and SYSTEM shall avoid carrying out any act that would prejudice the grant of
INTELLECTUAL PROPERTY RIGHTS. Without limitation, neither Party shall make available
reproductive material of the HYBRIDS or LINE at a date or in a manner that

			
	 	 	 
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	 	 	might jeopardize the right to seek INTELLECTUAL PROPERTY RIGHTS protection for the HYBRIDS
or LINE.

[add sections 6.04-6.08 from Appendix A if patents are licensed under this license.]

	6.04	 	Information. The provisions of this Article shall apply with respect to applications for
intellectual property protection on SYSTEM owned or jointly owned LINE or HYBRIDS. LICENSEE
shall keep SYSTEM promptly and fully informed of the course of patent and plant variety rights
prosecution or other proceedings. LICENSEE shall provide to SYSTEM the opportunity to provide
input to the development of the patent and plant variety rights application(s) and any
official proceedings thereafter. LICENSEE shall disclose to SYSTEM the complete texts of all
patent and plant variety rights applications filed by LICENSEE under INTELLECTUAL PROPERTY
RIGHTS as well as all information received concerning office actions, the institution or
possible institution of any interference, opposition, re-examination, reissue, revocation,
nullification or any other official proceeding involving INTELLECTUAL PROPERTY RIGHTS. If
LICENSEE fails to reasonably incorporate the input of SYSTEM, or fails to keep SYSTEM
informed, LICENSEE, upon the request of SYSTEM, must transfer prosecution of the
application(s) to SYSTEM. Nothing in this Article 6.04 affects LICENSEE’s obligations under
Article 3.04 of this Agreement.

	6.05	 	List of INTELLECTUAL PROPERTY RIGHTS. The list of INTELLECTUAL PROPERTY RIGHTS existing as
of the EFFECTIVE DATE is included in ANNEX I. When either Party files for or obtains
additional INTELLECTUAL PROPERTY RIGHTS, such Party will provide to the other Party an updated
version of ANNEX I, including a list of such additional INTELLECTUAL PROPERTY RIGHTS
and such updated version of ANNEX I will be substituted for the then existing version.

ARTICLE VII — PAYMENTS AND REPORTS

	7.01	 	When Payments are Due. Unless otherwise specified, payments shall be made annually. Payments
shall be made to The Texas A&M University System, in College Station, Texas, not later than
sixty (60) days after the last day of the BUSINESS YEAR in which they accrue.

	7.02	 	Royalty Reports. LICENSEE shall provide a sales report to SYSTEM each BUSINESS YEAR,
providing information sufficient to allow SYSTEM to calculate amounts due to SYSTEM for the
reporting period, in the form attached hereto as ANNEX II.

	7.03	 	Currency. Payment due to SYSTEM shall be paid in U.S. dollars. Royalty payments requiring
conversion shall use the exchange rate as reported in The Wall Street Journal on the
last business day of the royalty reporting period.

	7.04	 	Inspection of Books and Records. At its own expense, SYSTEM may annually inspect LICENSEE’s
books and records as needed to determine royalties payable. LICENSEE shall maintain such books
and records for at least three (3) BUSINESS YEARS following the dates of the underlying
transactions. Any such inspections shall be in confidence and conducted during ordinary
business hours, and SYSTEM will provide LICENSEE prior notice two (2) weeks before making such
inspections. SYSTEM must employ an

			
	 	 	 
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	 	 	independent Certified Public Accountant reasonably acceptable to LICENSEE for this purpose,
who will only report to SYSTEM such information as necessary, to determine royalties
payable to SYSTEM and LICENSEE’s compliance with any related obligations to SYSTEM. If
SYSTEM’s audit identifies a shortage of five percent (5%) or more of amounts due to SYSTEM,
then LICENSEE shall pay the costs of SYSTEM’s audit. LICENSEE shall pay all amounts due as
a consequence of such audit to SYSTEM promptly, with interest.

	7.05	 	Interest Charges. Overdue payments may, at the sole discretion of SYSTEM, be subject to a
daily charge commencing on the 31st day after such payment is due, compounded monthly, at the
rate of either one and one-half percent (1.5%) per month or the highest legal interest rate,
whichever is lower. The payment of such interest will not foreclose SYSTEM from exercising any
other rights it may have as a consequence of the lateness of any payment.

ARTICLE VIII — TERM AND TERMINATION

	8.01	 	Expiration. Subject to any other rights of termination under this Article VIII, this
Agreement shall remain in full force and effect on a country-by-country basis until all
registered or patented INTELLECTUAL PROPERTY RIGHTS solely or jointly owned by SYSTEM and
covering such LINES in such country have expired.

	8.02	 	Termination by Licensee. LICENSEE may terminate this Agreement by providing written notice
to SYSTEM at least ninety (90) days before the termination is to take effect.

	8.03	 	Termination by System. If LICENSEE materially breaches this Agreement, SYSTEM may give
LICENSEE written notice of the breach. LICENSEE shall have a period of sixty (60) days from
receipt of the notice to cure the breach. If LICENSEE does not cure the breach within this
period, SYSTEM may terminate this Agreement in writing without further notice.

	8.04	 	Matters Surviving Termination. All accrued obligations and claims, including reimbursement
of patent expenses, license fee obligations, royalty obligations, minimum annual consideration
obligations, interest charge obligations, and all other financial obligations, and claims or
causes of action for breach of this Agreement, shall survive termination of this Agreement.
Obligations of confidentiality shall survive termination of this Agreement. This section
controls in the case of a conflict with any other section of this Agreement.

ARTICLE IX — INDEMNIFICATION AND REPRESENTATION

	9.01	 	Indemnification. LICENSEE SHALL AT ALL TIMES DURING THE TERM OF THIS AGREEMENT AND
THEREAFTER INDEMNIFY, DEFEND, AND HOLD HARMLESS SYSTEM, ITS REGENTS, OFFICERS, AND EMPLOYEES
AGAINST ANY CLAIM, PROCEEDING, DEMAND, LIABILITY OR EXPENSE (INCLUDING LEGAL EXPENSE AND
REASONABLE ATTORNEYS’ FEES) WHICH RELATES TO INJURY TO PERSONS OR TO PROPERTY, ANY ACTION
BROUGHT BY A THIRD PARTY ALLEGING INFRINGEMENT OF INTELLECTUAL PROPERTY RIGHTS, OR AGAINST ANY
OTHER CLAIM,

			
	 	 	 
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	 	 	PROCEEDING, DEMAND, EXPENSE, AND LIABILITY OF ANY KIND WHATSOEVER RESULTING FROM THE
PRODUCTION, MANUFACTURE, SALE, COMMERCIAL USE, LEASE, CONSUMPTION, OR ADVERTISEMENT OF
COMMERCIAL SEED OR ARISING FROM ANY OBLIGATION OF LICENSEE OR SUBLICENSEE(S) UNDER THIS
AGREEMENT AND NOT CAUSED BY BREACH OF THIS AGREEMENT BY SYSTEM (HEREINAFTER JOINTLY
REFERRED TO AS “CLAIMS”), PROVIDED THAT SYSTEM SHALL PROMPTLY PROVIDE WRITTEN NOTICE OF ANY
CLAIM TO LICENSEE, AND THAT, SUBJECT TO THE APPROVAL OF THE ATTORNEY GENERAL OF THE STATE
OF TEXAS, LICENSEE SHALL HAVE THE RIGHT TO CONDUCT THE DEFENSE OF ANY CLAIM, AND THAT
SYSTEM SHALL COOPERATE WITH LICENSEE AS LICENSEE MAY REQUEST IN ANY SUCH DEFENSE, AT
LICENSEE’S REQUEST AND EXPENSE.

	9.02	 	Representation. SYSTEM represents that it has the full right and power to grant the license
set forth in Article 2.01, and that there are no outstanding agreements, assignments, or
encumbrances inconsistent with the provisions of this Agreement. SYSTEM MAKES NO OTHER
REPRESENTATIONS AND EXTENDS NO OTHER WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED,
INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR
PURPOSE, NOR DOES SYSTEM ASSUME ANY OBLIGATIONS WITH RESPECT TO INFRINGEMENT OF PATENT RIGHTS
OR OTHER RIGHTS OF THIRD PARTIES DUE TO LICENSEE’S ACTIVITIES UNDER THIS AGREEMENT.

ARTICLE X — NOTICES

	10.01	 	Notices. Payments, notices, or other communications required by this Agreement shall be
sufficiently made or given if mailed by certified First Class United States mail, postage
pre-paid, or by commercial carrier (e.g., FedEx, UPS, etc.) when such carrier maintains
receipt or record of delivery, addressed to the address stated below, or to the last address
specified in writing by the intended recipient.

	 	 	 

	If to SYSTEM:

	 	Director, Licensing and Intellectual Property

Office of Technology Commercialization

800 Raymond Stotzer Parkway, Suite 2020

College Station, TX 77845

Phone: (979) 847-8682

Fax: (979) 845-1402

	 	 	 

	If to LICENSEE for Legal Matters:

	 	for Financial Matters:
	
                        Vice President of Operations

	 	Vice President of Operations
	                        cc: Legal Department

	 	cc: Chief Financial Officer
	                        Ceres, Inc.

	 	Ceres, Inc.
	                        1535 Rancho Conejo Blvd.

	 	1535 Rancho Conejo Blvd.
	                        Thousand Oaks, CA 91320

	 	Thousand Oaks, CA 91320

ARTICLE XI — MISCELLANEOUS PROVISIONS

			
	 	 	 
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	11.01	 	Notice of Infringement. SYSTEM and LICENSEE shall promptly notify one another in writing of
any alleged infringement of any INTELLECTUAL PROPERTY RIGHTS. Within thirty (30) days after
receipt of such notice, SYSTEM and LICENSEE shall formulate a strategy for resolving the
alleged infringement. LICENSEE acknowledges that SYSTEM’s involvement, participation, and
representation in any litigation requires the prior written consent of SYSTEM and the Attorney
General of the State of Texas, and subject to the granting of that consent, SYSTEM may be
joined as a party in any action brought by LICENSEE, so long as LICENSEE shall pay all of
SYSTEM’s reasonable costs and expenses. LICENSEE will have the right, at its own discretion
and expense, to take any action to enforce and to initiate and prosecute suits for
infringement of INTELLECTUAL PROPERTY RIGHTS covering the LINE, HYBRIDS, DERIVATIVES, and/or
NEW PARENTAL LINES. LICENSEE and SYSTEM will consult with each other upon a course of action
and enforcement strategy. LICENSEE will be responsible for the conduct of any such
enforcement action, and SYSTEM will reasonably cooperate with LICENSEE to effect the
enforcement action, and if appropriate, determine a settlement position. LICENSEE shall be
responsible for retaining counsel but will consult with SYSTEM and retain counsel reasonably
acceptable to SYSTEM. For purposes of settlement, LICENSEE shall be the contact with the
Parties’ counsel as well as the opposing Party(ies) and shall have the right to enter into
settlements, subject to the prior written consent of SYSTEM if such settlement involves any
admission adverse to LICENSEE or SYSTEM and further, if required by applicable law, of the
Attorney General of the State of Texas, in the case of SYSTEM such consent not to be
unreasonably withheld and to be provided to LICENSEE within ten (10) business days of receipt
of LICENSEE’s written request LICENSEE shall keep SYSTEM advised as to all developments with
respect to the enforcement action and settlement discussions, which includes supplying to
SYSTEM copies of all papers received and filed in sufficient time for SYSTEM to comment
thereon. SYSTEM may attend any and all meetings with the Parties’ counsel and the opposing
side for settlement purposes. If necessary, and subject to
the consent of the Attorney
General of the State of Texas, SYSTEM agrees to enter into a joint defense agreement. Any
damages received by LICENSEE as a result of an enforcement action of rights to jointly owned
INTELLECTUAL PROPERTY RIGHTS, after deduction of all enforcement related costs incurred by
LICENSEE, shall be considered as NET SALES or LICENSE INCOME, as appropriate, for the
purpose of remuneration payments to SYSTEM.

	11.02	 	Export Controls. It is understood that SYSTEM is subject to United States laws and
regulations controlling the export of technical data, computer software, laboratory prototypes
and other commodities, and that its obligations hereunder are contingent on compliance with
applicable United States export laws and regulations. The transfer of certain technical data
and commodities may require a license from the cognizant agency of the United States
Government or written assurances by LICENSEE that LICENSEE shall not export data or
commodities to certain countries without prior approval of such agency. SYSTEM neither
represents that a license shall not be required nor that, if required, it shall be issued.

	11.03	 	Non-Use of Names. LICENSEE shall not use the names of The Texas A&M University System, nor
of any of its employees or components, nor any adaptation thereof, in any advertising,
promotional or sales literature without the prior written consent obtained from
SYSTEM in each case, except that LICENSEE may state that it is licensed by SYSTEM under
INTELLECTUAL PROPERTY RIGHTS.

			
	 	 	 
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	11.04	 	Trademarks. LICENSEE may select, own and use its own trademark on COMMERCIAL SEED and in
connection with SERVICES. However, nothing herein shall be construed as granting to LICENSEE
any license or other right under any trade name, trademark, or service mark owned or licensed
by SYSTEM. Conversely, SYSTEM shall have no rights to trade names, trademarks, or service
marks owned by LICENSEE.

	11.05	 	Assignment of this Agreement. This Agreement binds and enures to the benefit of the
Parties, their successor or assigns, but may not be assigned by either Party without the prior
written consent of the other Party; provided however, LICENSEE shall have the right to assign
its rights and obligations under this Agreement to any AFFILIATED COMPANY without such prior
consent, but with written notice to SYSTEM. LICENSEE shall also have the right to assign its
rights and obligations under this Agreement to a third party in conjunction with the transfer
to such third party of substantially all of the assets of LICENSEE associated with performance
under this Agreement without such prior consent.

	11.06	 	Force Majeure. Other than an obligation for the payment of money, SYSTEM, upon receipt of
documentation from LICENSEE which it deems appropriate, shall excuse any breach of this
Agreement, which is proximately caused by war, strike, act of God, or other similar
circumstance normally deemed outside the control of well-managed businesses.

	11.07	 	Entire Agreement. Other than the ARSRA and the IPRA, Existing License Agreements and
Material Transfer Agreements (as defined in the ARSRA), and any license agreement executed
pursuant to [Article 1.A.(1) of the IPRA], this Agreement contains the entire understanding of
the Parties with respect to INTELLECTUAL PROPERTY RIGHTS, and supersedes all other written and
oral agreements between the Parties with respect to INTELLECTUAL PROPERTY RIGHTS. It may be
modified only by a written amendment or agreement signed by the Parties, except as provided in
[Article 6.05].

	11.08	 	Governing Law. The validity, interpretation, and enforcement of this Agreement shall be
governed and determined by the laws of the State of Texas, excluding the conflict of laws
rules which might require the application of the laws of another jurisdiction.

	11.9	 	Disputes.

A. The Parties shall make every possible attempt to resolve in an amicable manner all
disputes between the Parties concerning the interpretation of this Agreement.

B. The Parties must use the dispute resolution process provided in Chapter 2260, Texas
Government Code, and the related rules adopted by the Texas Attorney General to attempt to
resolve any claim for breach of contract made by LICENSEE that cannot be resolved in the
ordinary course of business. LICENSEE must submit written notice of a claim of breach of
contract under this Chapter to B.J. Crain, Associate Vice Chancellor, who will examine
LICENSEE’s claim and any counterclaim and negotiate with LICENSEE in an effort to resolve
the claim.

	11.10	 	Headings. Headings appear solely for convenience of reference. Such headings are not part
of, and shall not be used to construe, this Agreement.

	11.12	 	No Waiver; Severability. No waiver of any breach of this Agreement shall constitute a
waiver of any other breach of the same or other provision of this Agreement and no waiver

			
	 	 	 
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	 	 	shall be effective unless made in writing. This Agreement, to the greatest extent
possible, shall be construed so as to give validity to all of the provisions hereof. If any
provision of this Agreement is or becomes invalid, is ruled illegal by a court of competent
jurisdiction or is deemed unenforceable under the current applicable law from time to time in
effect during the term of this Agreement, the remainder of this Agreement will not be affected
or impaired thereby and will continue to be construed to the maximum extent permitted by law.
In lieu of each provision which is invalid, illegal or unenforceable, there will be
substituted or added as part of this Agreement by mutual written agreement of the Parties, a
provision which will be as similar as possible, in economic and business objectives as
intended by the Parties to such invalid, illegal or unenforceable provision, but will be
valid, legal and enforceable.

	11.13	 	Damages. Neither Party shall be liable for indirect, special, remote, incidental or
consequential damages or loss of profit in connection with this Agreement or its
implementation.

ARTICLE XII — CONFIDENTIALITY

	12.01	 	As used in this Agreement, the term “Confidential Information” shall mean all
non-public-information received by one Party from the other in the framework of this
Agreement. Confidential Information may include, but is not limited to, information
concerning the disclosing Party’s operations, research, processes, techniques, data, sales,
marketing, promotion and other activities. Any reports provided by LICENSEE to SYSTEM
pursuant to this Agreement are Confidential Information. Confidential Information
disclosed that Discloser, in good faith, regards as confidential and/or proprietary shall be
clearly marked as “Confidential,” “Proprietary,” or bear any other appropriate notice
indicating the sensitive nature of such Confidential Information. Any Confidential
Information not easily marked, including Confidential Information that may be orally
disclosed, shall, within thirty (30) days of its disclosure, be referenced in writing and
designated confidential by Discloser.

	12.02	 	Sales reports submitted by LICENSEE under Article VII and audit reports made pursuant to
Article 7.04 shall be considered as Confidential Information under this Agreement and shall
not be disclosed by SYSTEM to any third party except as may be required in response to a valid
order of a court or other government body of the United States or any political subdivision
thereof, as required under the Texas Public Information Act. Should the Parties contemplate
exchange of other information of a confidential nature, they shall enter into a separate
confidentiality agreement.

	12.03	 	From receipt to five (5) years after the disclosure of the relevant Confidential
Information, the receiving Party shall not use, except as is expressly allowed by this
Agreement, and/or disclose any Confidential Information to any third party without the prior
written consent of the disclosing Party. Confidential Information shall only be made
accessible to each Party’s employees and/or agents on a need-to-know basis.

	12.04	 	The receiving Party shall have no obligations of confidentiality for information that: can
be established through clear and convincing evidence to be in the possession of the
receiving Party prior to the disclosure by the disclosing Party; is or becomes public
knowledge through no fault of the receiving Party; is acquired from others not under an
obligation of confidentiality to the disclosing Party; and/or was independently developed

			
	 	 	 
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	 	Page 35 of 60

 

 

	 	 	by the receiving Party as demonstrated by clear and convincing evidence prepared
contemporaneously with such independent development. In addition, LICENSEE shall have the
right to use and disclose SYSTEM Confidential Information (a) as required to file for
INTELLECTUAL PROPERTY RIGHTS, (b) as required to exercise its commercialization rights
granted in or on the basis of this Agreement and for related marketing activities, (c) as
required by laws, rules or regulations or court orders such as, without limitation, SEC or
IRS regulations, or (d) in LICENSEE’S reasonable judgment, to (potential) investors and
business partners. Further, SYSTEM shall have the right to use and disclose LICENSEE
Confidential Information if any such information is ordered produced or disclosed by a
court or administrative body of competent jurisdiction or otherwise required by law, or
required to be disclosed by the Attorney General of The State of Texas, but only to the
extent of such required production or disclosure. To the extent reasonably possible
SYSTEM will give prior written notice of such required production or disclosure to LICENSEE
and if so requested by LICENSEE, use reasonable efforts to obtain confidential treatment of
the information disclosed to the maximum extent possible.

[Signature page follows]

 
			
	 	 	 
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     The Parties have caused this Agreement to become effective as of the date last executed below.

	 	 	 	 	 	 	 	 	 

	CERES, INC.	 	 	 	THE TEXAS A&M UNIVERSITY SYSTEM
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	By:	 	 	 	Brett L. Cornwell
	Title:
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Associate Vice Chancellor for

Commercialization
	 
	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	Date:	 	 
	 

	 	 
	 	 	 	 	 	 

			
	 	 	 
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ANNEX I

to the Example LINE LICENSE AGREEMENT

between Ceres, Inc. and The Texas A&M University System

LINES

SYSTEM INTELLECTUAL PROPERTY RIGHTS

(include all patent applications/patents (including on Subject Inventions covering Lines), plant

variety protection rights, etc.

			
	 	 	 
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	 	Page 38 of 60

 

 

ANNEX II

to the Example LINE LICENSE AGREEMENT

between Ceres, Inc. and The Texas A&M University System

Royalty Report

Date of report: þ

BUSINESS YEAR of report: þ

HYBRID, DERIVATIVE OR

NEW PARENTAL 

LINE: [identify]

LINE(s): [identify]

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Royalty Calculation     
	 	 	 	 	 	 	 	 	 	 	AGRILIFE	 	 
	 	 	 	 	 	 	 	 	 	 	GENETIC	 	 
	 	 	 	 	 	 	OTHER	 	CONTRIBUTION	 	Royalty
	 	 	Base Rate	 	CONTRIBUTIONS*	 	**	 	Rate
	NET SALES
	 	XX%	 	 	0	%	 	 	50	%	 	 	X	%
	LICENSE INCOME
	 	XX%	 	 	0	%	 	 	50	%	 	XX%

	 	 	 
	*OTHER CONTRIBUTIONS
	Name of Contribution	 	Deduction %
	None

	 	None

 

			
	**	 	AGRILIFE GENETIC
CONTRIBUTION
[Additional Information
if Needed]

Total revenue: [$X]

Additional deductions for NET SALES None

NET SALES for BUSINESS YEAR: [$X]

Royalties due on NET SALES: [$X]

LICENSE INCOME for BUSINESS YEAR: [$X]

Royalties due on LICENSE INCOME: [$X]

[If other HYBRIDS, DERIVATIVES, PROGENY and/or NEW PARENTAL LINES are developed, this format
will be used.]

			
	 	 	 
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Appendix C

to the Amended and Restated Intellectual Property Rights Agreement

Between

Ceres, Inc.

and

The Texas A&M University System

Guidelines for Future Collaborative Opportunities

(Capitalized words are as defined in the Amended and Restated Sponsored Research

 Agreement
(“ARSRA”))

PURPOSE:

CERES and SYSTEM may jointly pursue collaborative activities with third party collaborators.
During the term of the Program, SYSTEM will notify CERES, in writing, of any contemplated internal
projects or projects with third parties that specifically involve Lines, Hybrids, and/or
Derivatives and/or Progeny (as defined in the ARSRA) and that do not involve Germplasm Improvement
(as defined in the ARSRA) (hereinafter “Additional Collaboration Project”). CERES will notify
SYSTEM of certain contemplated projects as provided hereinafter. The Parties will comply with the
provisions set forth hereinafter under SYSTEM CONTACT PROCESS and CERES CONTACT PROCESS. These
guidelines do not apply to Germplasm Improvement, which is addressed in the ARSRA.

GUIDING PRINCIPLES:

The principles contained within this Appendix are meant to guide discussions of potential future
Additional Collaboration Project opportunities between CERES and SYSTEM. CERES is generally
interested in pursuing Additional Collaboration Project opportunities with SYSTEM as long as the
opportunity is consistent with CERES’ business interests and has no negative impact on CERES’
commercialization activities or competitive position. CERES’ intention is to position itself as
the leading provider of proprietary improved sorghum within the CERES Field (as defined in the
ARSRA) market. Both Parties agree that product differentiation, intellectual property protection,
and exclusive access are important factors to build a leading position in this market. Both
Parties recognize that participation of a Party in an Additional Collaboration Project initiated by
the other Party is subject, among other factors, to its capacity to do so, and the Parties reaching
an agreement through good faith discussions.

SYSTEM CONTACT PROCESS:

During the term of the Program the following process will apply in the event that SYSTEM is
contacted regarding an Additional Collaboration Project with a third party, or in the event that
SYSTEM is contemplating an internal Additional Collaboration Project:

SYSTEM will notify: 1) the contacting party or internal project principal investigator of the
rights of CERES to participate and 2) CERES in writing within thirty (30) days of receiving a bona
fide contact from a third party or a research proposal from an internal project principal
investigator. CERES will respond, in writing, within thirty (30) days of receipt of notice with a
decision about whether it wishes to participate in the opportunity.

	 	1.1.	 	If CERES elects to participate in the Additional Collaboration Project CERES and

			
	 	 	 
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	 	Page 40 of 60

 

 

	 	 	 	SYSTEM will discuss in good faith the development of a joint proposal.

	 	1.2.	 	If CERES elects not to participate in the Additional Collaboration Project, CERES
will notify SYSTEM in writing that CERES does not wish to participate in the Additional
Collaboration Project and, if applicable, will provide reasons as to why CERES would
prefer that SYSTEM not use Lines, Hybrids, Derivatives or Progeny developed in the
Program, or not to pursue the activity at all, and SYSTEM will take CERES’ rationale into
account in deciding how to proceed. The Parties agree to meet within thirty (30) days of
the receipt of CERES’ response to discuss CERES rationale and preference for SYSTEM not to
use Lines, Hybrids, Derivatives or Progeny, or not to pursue the activity.
	 
	 	1.2.1.	 	If SYSTEM elects to pursue the Additional Collaboration Project:

	 	1.2.1.1.	 	SYSTEM will take measures to ensure that material developed in the Program
and results of the Additional Collaboration Project are properly blinded so as
not to allow differentiation from other material;
	 
	 	1.2.1.2.	 	the Additional Collaboration Project will occur at a SYSTEM research
facility;
	 
	 	1.2.1.3.	 	CERES will have access to the results of such Additional Collaboration
Project to the extent allowed by the relevant agreements between SYSTEM and
the third party and SYSTEM will use reasonable efforts to obtain such right
for CERES;
	 
	 	1.2.1.4.	 	if any result obtained in an Additional Collaboration Project using
material developed in the Program has an application for Germplasm
Improvement, SYSTEM will grant CERES an option to negotiate an exclusive
license to use such result for Germplasm Improvement.

CERES CONTACT PROCESS:

During the term of the Program the following process will apply. If CERES is approached by a third
party with a project to be conducted by such party or by CERES, related to extension research,
logistics, agriculture economics, or agricultural engineering for sorghum to be used as feedstock
for the bioenergy market, the following process will apply. If the entity to be conducting or
commissioning the research is located in the State of Texas and the work to be conducted is in the
State of Texas, CERES will, unless it deems the matter sensitive, or is restricted by
confidentiality or is requested not to disclose the matter by the third party, notify SYSTEM in
writing if CERES wishes to pursue the project jointly with SYSTEM or to give SYSTEM the opportunity
to pursue the project individually. In all other cases, CERES will use its discretion as to
whether or not to involve SYSTEM in the project. After written notification, SYSTEM will respond,
in writing, within thirty (30) days of receipt with a decision to pursue the project requested by
CERES. If SYSTEM does not respond, in writing, within thirty (30) days of receipt with a decision
to pursue the project, CERES may elect to pursue the project individually.

NOTIFICATION:

The Parties shall notify one another in writing at the following addresses:

			
	 	 	 
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	 	Page 41 of 60

 

 

CERES Contact for Collaborative Opportunities:

Director of Business Development

Ceres, Inc.

1535 Rancho Conejo Blvd.

Thousand Oaks, CA 91320

cc: Legal Department

SYSTEM Contact for Collaborative Opportunities:

Bill F. McCutchen, Ph.D.

Agriculture and Life Sciences Building

600 John Kimbrough Boulevard, Suite 512

College Station, TX 77843

			
	 	 	 
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	 	Page 42 of 60

 

 

Appendix D

to the Amended and Restated Intellectual Property Rights Agreement

Between

Ceres, Inc.

and

The Texas A&M University System

Warrant to Purchase Shares of Common Stock of Ceres, Inc., dated as of July 18, 2008, by and

between CERES and SYSTEM

and

Amendment No. 1

Warrant to Purchase Shares of Common Stock

THIS WARRANT AND THE SECURITIES FOR WHICH IT MAY BE EXERCISED HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR QUALIFIED OR REGISTERED UNDER
STATE SECURITIES OR BLUE SKY LAWS AND THE APPLICABLE RULES AND REGULATIONS THEREUNDER. THESE
SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO DISTRIBUTION, AND NEITHER THESE
SECURITIES NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE SOLD, OFFERED FOR SALE, PLEDGED,
HYPOTHECATED OR OTHERWISE TRANSFERRED OR DISPOSED OF EXCEPT IN COMPLIANCE WITH THE SECURITIES ACT,
APPLICABLE STATE SECURITIES OR BLUE SKY LAWS AND THE APPLICABLE RULES AND REGULATIONS THEREUNDER.
THE ISSUER OF THIS WARRANT MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE REASONABLY
SATISFACTORY TO THE ISSUER, IN ITS SOLE DISCRETION, TO THE EFFECT THAT ANY PROPOSED TRANSFER OR
RESALE IS IN COMPLIANCE WITH THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS. THIS
CERTIFICATE MUST BE SURRENDERED TO THE COMPANY OR ITS TRANSFER AGENT AS A CONDITION PRECEDENT TO
THE SALE, PLEDGE OR OTHER TRANSFER OF ANY INTEREST IN ANY SECURITIES REPRESENTED BY THIS
CERTIFICATE.

THE SECURITIES FOR WHICH THIS WARRANT MAY BE EXERCISED WILL BE SUBJECT TO THE TERMS AND CONDITIONS
OF AN AMENDED AND RESTATED RIGHT OF FIRST REFUSAL AGREEMENT BY AND AMONG THE HOLDER, THE COMPANY
AND CERTAIN HOLDERS OF CAPITAL STOCK OF THE COMPANY AND AN AMENDED AND RESTATED INVESTORS’ RIGHTS
AGREEMENT AMONG THE HOLDER, THE COMPANY AND CERTAIN HOLDERS OF CAPITAL STOCK OF THE COMPANY.
COPIES OF THESE AGREEMENTS
MAY BE OBTAINED UPON WRITTEN REQUEST OF THE SECRETARY OF THE COMPANY.

 
			
	 	 	 
	Amended and Restated Intellectual Property Rights Agreement
	 	Page 43 of 60

 

 

WARRANT TO PURCHASE SHARES OF COMMON STOCK

of

CERES, INC.

          This certifies that, for value received, The Texas A&M University System, an agency of the
State of Texas (the “Holder”), is entitled, subject to the terms set forth below, to
purchase from Ceres, Inc., a Delaware corporation (the “Company”), that certain number of
shares of the Company’s common stock, par value $.01 per share (the “Common Stock”), as
determined in Section 1 below, upon surrender hereof, at the principal office of the Company
referred to below, with the Notice of Exercise form attached hereto duly executed, and simultaneous
payment therefore in lawful money of the United States or otherwise as hereinafter provided, at the
Exercise Price set forth in Section 3 below. The number of shares for which this Warrant shall be
exercisable and the Exercise Price per share of Common Stock are subject to adjustment from time to
time as provided in Section 10 below. The term “Warrant” as used herein shall include this
Warrant and any warrants delivered in substitution or exchange therefore as provided herein. Each
capitalized term used but not defined herein shall have the meaning ascribed thereto in the
Intellectual Property Rights Agreement dated August 29, 2007 between the Company and the Holder
(the “IP Agreement”).

          1. Number of Shares. (a) This Warrant shall be exercisable for an aggregate of up to
200,000 shares (the “Shares”) of Common Stock, subject to adjustment as set forth in Section 10
below, and shall become exercisable in installments as follows:

     (i) equal installments of twenty five hundred (2,500) shares of Common Stock
each time a Research Milestone — Marker-Trait Association, as defined in Article
5.A.1. of the IP Agreement (“Marker-Trait Association Milestone”), is
reached, up to a maximum of five such installments;

     (ii) equal installments of twenty five hundred (2,500) shares of Common Stock
each time a Research Milestone — Lines, as defined in Article 5.A.2. of the IP
Agreement (“Lines Milestone”), is reached, up to a maximum of five such
installments; and

     (iii) equal installments of five thousand (5,000) shares of Common Stock each
time a Commercial Milestone, as defined in Article 5.A.3. of the IP Agreement
(“Commercial Milestone”), is reached, up to a maximum of five such
installments.

     (b) The number of shares of Common Stock for which this Warrant may become exercisable
pursuant to the achievement of a Marker-Trait Association Milestone, a Lines Milestone or a
Commercial Milestone shall be multiplied by

 
			
	 	 	 
	Amended and Restated Intellectual Property Rights Agreement
	 	Page 44 of 60

 

 

four (4) with respect to each particular installment (an “Installment”)
provided that, at the time such milestone is achieved, (i) the Holder has not breached, and
is not in breach of any provisions of the Sponsored Research Agreement, dated August 29,
2007, between the Company and the Holder (the “SRA”), the IP Agreement including
the Guidelines for Future Collaborative Opportunities attached as Appendix C thereto (the
“Guidelines”), or any license entered into pursuant to the IP Agreement, (ii) the
Holder has not proceeded to any activities, such as participation in an Additional
Collaboration Project and/or use of Lines or Hybrids developed in the Program, contrary to
the Company’s expressed preference, as referred to in Clause 1.2 of the Guidelines, and
(iii) the Holder has not collaborated or is not collaborating with, nor has granted rights
to, any other party other than an academic organization for Germplasm Improvement, as
defined in the SRA, of Biomass/Bioenergy Sorghum, as defined in the SRA, intended to be
used for the bioenergy market.

          2. Term of Warrant. This Warrant shall remain exercisable for a period of ten (10)
years from August 29, 2007 (the “Exercise Period”). Nothing to the contrary withstanding,
this Warrant shall terminate and may no longer be exercised upon the termination by the Company of
the IP Agreement pursuant to Section 4.B.5 thereof or upon termination by the Company of the SRA in
event that the Holder breaches any provision of the SRA.

          3. Exercise Price. The exercise price shall be $10.00 per share (the “Exercise
Price”).

          4. Exercise of Warrant.

     (a) The purchase rights for the Shares represented by this Warrant are exercisable by
the Holder, subject to Section 1 hereof, in whole or in part, such number of Shares and the
Exercise Price being subject to adjustment as provided in Section 10 below, at any time, or
from time to time, during the applicable Exercise Period, by the surrender of this Warrant
and the Notice of Exercise annexed hereto duly completed and executed on behalf of the
Holder, at the office of the Company (or such other office or agency of the Company as it
may designate by notice in writing to the Holder at the address of the Holder appearing on
the books of the Company), upon payment in cash, by cashier’s check or by wire transfer in
immediately available funds of the purchase price of the Shares to be purchased.

     (b) Any Installment of this Warrant shall be deemed to have been exercised immediately
prior to the close of business on the date of its surrender for exercise as provided above,
and the person entitled to receive the Shares issuable upon such exercise shall be treated
for all purposes as the holder of record of such Shares as of the close of business on such
date. As promptly as practicable on or after such date and in any event within ten (10)
business days thereafter, the Company, at its expense, shall issue and deliver to the
person or persons entitled to receive the same a certificate or certificates for the number
of Shares issuable upon such exercise. In the event that any Installment of this Warrant
is exercised in part,

 
			
	 	 	 
	Amended and Restated Intellectual Property Rights Agreement
	 	Page 45 of 60

 

 

the Company, at its expense, will execute and deliver a new Warrant of like tenor
exercisable for the maximum number of Shares for which this Warrant may then be exercised.
All other terms and conditions of such amended Warrant shall be identical to those
contained herein.

     (c) Upon the first exercise of this Warrant in whole or in part, as provided in
Section 1, the Holder shall execute and become a party to (i) the Fifth Amended and
Restated Right of First Refusal and Co-Sale Agreement dated September 5, 2007, as amended
(the “Right of First Refusal and Co-Sale Agreement”) among the Company, the Investors (as
defined therein) and the Founders (as defined therein), and (ii) the Amended and Restated
Investors’ Rights Agreement Dated September 5, 2007 (the “Investors’ Rights Agreement”), as
amended, between the Company and the Investors (as defined therein).

     (d) Notwithstanding any provisions herein to the contrary, if the fair market value of
one share of Common Stock is greater than the Exercise Price (at the date of calculation as
set forth below), in lieu of exercising this Warrant for cash, the Holder may elect to
receive shares equal to the value (as determined below) of this Warrant (or the portion
thereof being canceled) by the surrender of this Warrant at the office of the Company (or
such other office or agency of the Company as it may designate by notice in writing to the
Holder at the address of the Holder appearing on the books of the Company) together with
the Notice of Exercise annexed hereto duly completed and executed on behalf of the Holder
and notice of such election in which event the Company shall issue to the Holder a number
of shares of Common Stock computed using the following formula:

	 	 	 	 	 

	X =

	 	Y (A-B)

A
	 	 

			
	Where X = 	 	the number of shares of Common Stock to be issued to the Holder 
	 
	Y =	 	 the number of shares of Common Stock purchasable
under the Warrant or, if only a portion of the Warrant is being exercised,
the portion of the Warrant being canceled (at the date of such
calculation)
	 
	A =	 	 the fair market value of one share of Common Stock
(at the date of such calculation)
	 
	B =	 	 Exercise Price (as adjusted to the date of such calculation)

     For purposes of the above calculation, the fair market value of one share of Common Stock
shall be determined as follows:

(i) in the event that the Common Stock is listed or admitted to trading on the
NASDAQ Global Select Market or any other national securities exchange, the average
of the last reported sales price on such exchange for

 
			
	 	 	 
	Amended and Restated Intellectual Property Rights Agreement
	 	Page 46 of 60

 

 

the ten (10) consecutive trading days prior to the date of determination of such
fair market value;

(ii) in the event such security is no longer listed or admitted to trading on any
national securities exchange or traded on any national market system, the average
of the reported closing bid and ask prices in the over-the-counter market on such
date as shown by the NASD automated quotation system, or if such securities are not
then quoted on such system, as published by the National Quotation Bureau,
Incorporated or any similar successor organization, and in either case as reported
by any member firm of any national securities exchange selected by the Company; or

(iii) in the event clauses (i) or (ii) are not applicable, the fair market value as
determined by the Company’s Board of Directors in good faith.

          5. No Fractional Shares or Scrip. No fractional Shares or scrip representing
fractional Shares shall be issued upon the exercise of any Installment of this Warrant. In lieu of
any fractional Share to which the Holder would otherwise be entitled, the Company shall make a cash
payment equal to the Exercise Price multiplied by such fraction.

          6. Replacement of Warrant. On receipt of evidence reasonably satisfactory to the
Company of the loss, theft, destruction, or mutilation of this Warrant and, in the case of loss,
theft or destruction, on delivery of an affidavit of loss of stock certificate and indemnity
agreement reasonably satisfactory in form and substance to the Company or, in the case of
mutilation, on surrender and cancellation of this Warrant, the Company at its expense shall execute
and deliver, in lieu of this Warrant, a new warrant of like tenor and amount.

          7. Rights of Stockholders. Subject to Section 10 of this Warrant, the Holder, in its
capacity as such, shall not be entitled to vote or receive dividends or be deemed the holder of the
Shares or any other securities of the Company that may at any time be issuable on the exercise
hereof for any purpose, nor shall anything contained herein be construed to confer upon the Holder,
as such, any of the rights of a stockholder of the Company, such as any right to vote for the
election of directors or upon any matter submitted to stockholders at any meeting thereof, to give
or withhold consent to any corporate action (whether upon any recapitalization, issuance of stock,
reclassification of stock, change of par value, or change of stock to no par value, consolidation,
merger, conveyance or otherwise), to receive notice of meetings, or to receive dividends or
subscription rights or otherwise, until any Installment of this Warrant shall have been exercised
and the Shares purchasable upon the exercise hereof shall have been issued, as provided herein.

          8. Transfer of Warrant.

     (a) Warrant Register. The Company will maintain a register (the “Warrant
Register”) containing the names and addresses of the Holder or Holders.

 
			
	 	 	 
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Any Holder of this Warrant may change its address as shown on the Warrant Register by
written notice to the Company requesting such change. Any notice or written communication
required or permitted to be given to the Holder may be delivered or given by mail to such
Holder as shown on the Warrant Register and at the address shown on the Warrant Register.
Until this Warrant is transferred on the Warrant Register of the Company, the Company may
treat the Holder as shown on the Warrant Register as the absolute owner of this Warrant for
all purposes, notwithstanding any notice to the contrary.

     (b) Warrant Agent. The Company may, by written notice to the Holder, appoint
an agent for the purpose of maintaining the Warrant Register referred to in Section 8(a)
above, issuing the Shares or other securities then issuable upon the exercise of this
Warrant, exchanging this Warrant, replacing this Warrant, or any or all of the foregoing.
Thereafter, any such registration, issuance, exchange or replacement, as the case may be,
shall be made at the office of such agent.

     (c) Transferability and Non-negotiability of Warrant. This Warrant may not be
transferred or assigned in whole or in part without the prior written consent of the
Company. Any transfer of this Warrant must comply with the requirements of this Section 8,
and any assignee or transferee of this Warrant shall be required to accept this Warrant
subject to all rights and obligations of the Holder set forth herein. In addition, this
Warrant may not be transferred in whole or in part without compliance with all applicable
Federal and state securities laws by the transferor and the transferee (including the
delivery of investment representation letters and legal opinions reasonably satisfactory to
the Company, if such are requested by the Company).

     (d) Exchange of Warrant Upon a Transfer. On surrender of this Warrant for
exchange, properly endorsed on the Assignment Form, and subject to the provisions of this
Warrant with respect to compliance with all applicable Federal and state securities laws,
and with the limitations on assignments and transfers and contained in this Section 8, the
Company at its expense shall issue to or on the order of the Holder a new warrant or
warrants of like tenor, in the name of the Holder or as the Holder (on payment by the
Holder of any applicable transfer taxes) may direct, for the number of Shares issuable upon
exercise thereof.

     (e) Compliance with Securities Laws.

     (i) The Holder of this Warrant, by acceptance hereof, acknowledges that this
Warrant and the Shares to be issued upon exercise hereof are being acquired solely
for the Holder’s own account and not as a nominee for any other party, for
investment, and that the Holder will not offer, sell, pledge, hypothecate or
otherwise transfer or dispose of this Warrant or any Shares to be issued upon
exercise hereof except under circumstances that will not result in a violation of
the Securities Act or any state securities or blue sky laws.

 
			
	 	 	 
	Amended and Restated Intellectual Property Rights Agreement
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     (ii) The Holder of this Warrant understands that neither this Warrant nor the
Shares have been registered under the Securities Act. The Holder of this Warrant
also understands that the Warrant and the Shares are being offered and sold
pursuant to an exemption from registration contained in the Securities Act based in
part upon the Holder’s representations contained herein.

     (iii) The Holder hereby represents and warrants that the Holder has
substantial experience in evaluating and investing in private placement
transactions of securities in companies similar to the Company so that it is
capable of evaluating the merits and risks of its investment in the Company and has
the capacity to protect its own interests. The Holder must bear the economic risk
of this investment indefinitely unless the Warrant (or the Shares) are registered
pursuant to the Securities Act, or an exemption from registration is available.
The Holder understands that the Company has no present intention of registering the
Warrant or the Shares. The Holder also understands that there is no assurance that
any exemption from registration under the Securities Act will be available and
that, even if available, such exemption may not allow the Holder to transfer all or
any portion of the Warrant or the Shares under the circumstances, in the amounts or
at the times the Holder might propose.

     (iv) The Holder represents and warrants that it is a governmental or
quasi-governmental authority of any nature (including any governmental agency,
branch, department, official, or entity and any court or other tribunal).

     (v) This Warrant and all Shares issued upon exercise hereof shall be stamped or
imprinted with legends in substantially the following forms (in addition to any
legend required by state securities laws or any agreement to which the Holder is a
party):

     (A) “THIS WARRANT AND THE SECURITIES FOR WHICH IT MAY BE EXERCISED HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”)
OR QUALIFIED OR REGISTERED UNDER STATE SECURITIES OR BLUE SKY LAWS, AND THE
APPLICABLE RULES AND REGULATIONS THEREUNDER. THESE SECURITIES HAVE BEEN ACQUIRED
FOR INVESTMENT AND NOT WITH A VIEW TO DISTRIBUTION, AND NEITHER THESE SECURITIES
NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE SOLD, OFFERED FOR SALE, PLEDGED,
HYPOTHECATED OR OTHERWISE TRANSFERRED OR DISPOSED OF EXCEPT IN COMPLIANCE WITH THE
SECURITIES ACT, APPLICABLE STATE SECURITIES OR BLUE SKY LAWS AND THE APPLICABLE
RULES AND REGULATIONS THEREUNDER. THE ISSUER OF THIS WARRANT MAY REQUIRE AN
OPINION OF COUNSEL IN FORM

 
			
	 	 	 
	Amended and Restated Intellectual Property Rights Agreement
	 	Page 49 of 60

 

 

AND SUBSTANCE REASONABLY SATISFACTORY TO THE ISSUER, IN ITS SOLE DISCRETION,
TO THE EFFECT THAT ANY PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE WITH THE
SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS. THIS CERTIFICATE MUST BE
SURRENDERED TO THE COMPANY OR ITS TRANSFER AGENT AS A CONDITION PRECEDENT TO THE
SALE, PLEDGE OR OTHER TRANSFER OF ANY INTEREST IN ANY SECURITIES REPRESENTED BY
THIS CERTIFICATE.”

     (B) “THE SECURITIES FOR WHICH THIS WARRANT MAY BE EXERCISED ARE SUBJECT TO THE
TERMS AND CONDITIONS OF AN AMENDED AND RESTATED RIGHT OF FIRST REFUSAL AGREEMENT BY
AND AMONG THE HOLDER, THE CORPORATION AND CERTAIN HOLDERS OF CAPITAL STOCK OF THE
COMPANY AND AN AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT AMONG THE HOLDER,
THE COMPANY AND CERTAIN HOLDERS OF CAPITAL STOCK OF THE COMPANY. COPIES OF THESE
AGREEMENTS MAY BE OBTAINED UPON WRITTEN REQUEST OF THE SECRETARY OF THE COMPANY.”

          9. Reservation of Stock. The Company covenants that during the term this Warrant is
exercisable, the Company will reserve from its authorized and unissued Shares a sufficient number
of shares to provide for the issuance of the Shares upon the exercise of this Warrant and, from
time to time, will take all steps necessary to amend its Certificate of Incorporation (the
“Charter”) to provide sufficient reserves of Shares issuable upon exercise of the Warrant. The
Company further covenants that all Shares that may be issued upon the exercise of this Warrant,
upon exercise of the rights represented by this Warrant and payment of the Exercise Price all as
set forth herein, will be duly authorized, validly issued and fully paid and non-assessable. The
Company agrees that its issuance of this Warrant shall constitute full authority to its officers
who are charged with the duty of executing stock certificates to execute and issue the necessary
certificates for the Shares upon the exercise of this Warrant.

          10. Adjustments. The Exercise Price and the number of Shares purchasable hereunder
are subject to adjustment from time to time as follows:

     10.1 Merger, Sale of Assets, Etc.

     (a) If at any time, while this Warrant, or any portion thereof, is outstanding
and unexpired there shall be (i) a reorganization (other than a combination,
reclassification, exchange or subdivision of shares otherwise provided for herein),
(ii) a merger or consolidation of the Company with or into another corporation in
which the Company is not the surviving entity, or a reverse triangular merger in
which the Company is the surviving entity but the shares of the Company’s capital
stock outstanding immediately

 
			
	 	 	 
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prior to the merger are converted by virtue of the merger into other property,
whether in the form of securities, cash or otherwise, then, as a part of such
reorganization, merger or consolidation, if any Installment of this Warrant remains
unexercised prior to such reorganization, merger or consolidation, lawful provision
shall be made so that the holder of this Warrant shall thereafter be entitled to
receive upon exercise of this Warrant, during the periods specified herein and upon
payment of the Exercise Price then in effect, the number of shares of stock or
other securities or property of the successor corporation resulting from such
reorganization, merger or consolidation, which a holder of the Shares deliverable
upon exercise of this Warrant would have been entitled to receive in such
reorganization, consolidation or merger if this Warrant had been exercised
immediately before such reorganization, merger or consolidation, all subject to
further adjustment as provided in this Section 10. The foregoing provisions of
this Section 10.1 shall similarly apply to successive reorganizations,
consolidations or mergers, and to the stock or securities of any other corporation
which are at the time receivable upon the exercise of this Warrant. If the per
share consideration payable to the holder hereof for shares in connection with any
such transaction is in a form other than cash or marketable securities, then the
value of such consideration shall be determined in good faith by the Company’s
Board of Directors. In all events, appropriate adjustment (as determined in good
faith by the Company’s Board of Directors) shall be made in the application of the
provisions of this Warrant with respect to the rights and interests of the Holder
after the transaction, to the end that the provisions of this Warrant shall be
applicable after that event, as near as reasonably may be, in relation to any
 shares or other property deliverable after that event upon exercise of this
Warrant.

     (b) Notices of Record Date. In the event that the Company shall
propose at any time to merge with or into any other corporation, or sell, lease or
convey all or substantially all its property or business, or to liquidate, dissolve
or wind up, then the Company shall send to the holder of this Warrant at least ten
(10) days’ prior written notice of the date on which a record shall be taken for
determining rights to vote in respect of such event.

     10.2 Reclassification, etc. If the Company at any time while any Installment of this
Warrant, or any portion thereof, remains outstanding and unexpired shall, by reclassification of
securities or otherwise, change any of the securities as to which purchase rights under this
Warrant exist into the same or a different number of securities of any other class or classes, this
Warrant shall thereafter represent the right to acquire such number and kind of securities as would
have been issuable as the result of such change with respect to the securities which were subject
to the purchase rights under this Warrant immediately prior to such reclassification or other
change and the Exercise Price therefore shall be appropriately adjusted, all subject to further
adjustment as provided in this Section 10.

 
			
	 	 	 
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               10.3 Adjustments for Dividends in Stock or Other Securities or Property. If while
this Warrant, or any portion hereof, remains outstanding and unexpired the holders of the
securities as to which purchase rights under this Warrant exist at the time shall have received,
or, on or after the record date fixed for the determination of eligible stockholders, shall have
become entitled to receive, without payment therefore, other or additional stock or other
securities or property (other than cash) of the Company by way of dividend, then and in each case,
this Warrant shall represent the right to acquire, in addition to the number of Shares of the
security receivable upon exercise of this Warrant, and without payment of any additional
consideration therefore, the amount of such other or additional stock or other securities or
property (other than cash) of the Company which such holder would hold on the date of such exercise
had it been the holder of record of the security receivable upon exercise of this Warrant on the
date hereof and had thereafter, during the period from the date hereof to and including the date of
such exercise, retained such shares and/or all other additional stock available by it as aforesaid
during such period, giving effect to all adjustments called for during such period by the
provisions of this Section 10.

               10.4 No Impairment. The Company will not, by any voluntary action, avoid or seek to
avoid the observance or performance of any of the terms to be observed or performed hereunder by
the Company, but will at all times in good faith assist in the carrying out of all the provisions
of this Section 10 and in the taking of all such action as may be necessary or appropriate in order
to protect the rights of the holders of this Warrant against impairment.

          11. Miscellaneous.

          11.1 Governing Law. This Warrant shall be governed by and construed under the laws of
the State of Delaware as applied to agreements among Delaware residents entered into and to be
performed entirely within Delaware.

          11.2 Entire Agreement. This Warrant, the exhibits and schedules hereto, and the
documents referred to herein, constitute the entire agreement and understanding of the parties
hereto with respect to the subject matter hereof, and supersede all prior agreements and
understandings, whether oral or written, between the parties hereto with respect to the subject
matter hereof.

          11.3 Binding Effect. This Warrant and the various rights and obligations arising
hereunder shall inure to the benefit of and be binding upon the Company and its successors and
assigns, and Holder and its permitted successors and assigns.

          11.4 Waiver; Consent. Any term of this Warrant may be amended with the written
consent of the Company and the Holder. No waivers of or exceptions to any term, condition or
provision of this Warrant, in any one or more instances, shall be deemed to be, or construed as, a
further or continuing waiver of any such term, condition or provision.

          11.5 Severability. If one or more provisions of this Warrant are held to

 
			
	 	 	 
	Amended and Restated Intellectual Property Rights Agreement
	 	Page 52 of 60

 

 

be unenforceable under applicable law, such provision shall be excluded from this Warrant and
the balance of the Warrant shall be interpreted as if such provision were so excluded and the
balance shall be enforceable in accordance with its terms.

	[Remainder of Page Intentionally Left Blank]

 
			
	 	 	 
	Amended and Restated Intellectual Property Rights Agreement
	 	Page 53 of 60

 

 

          IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officers
thereunto duly authorized on __________, 2008.

	 	 	 	 	 
	 	CERES, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	Richard Hamilton 	 
	 	 	Title:  	Chief Executive Officer 	 
	 
	 	THE TEXAS A&M UNIVERSITY SYSTEM

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

			
	Amended and Restated Intellectual Property Rights Agreement
	 	Page 54 of 60

 

 

NOTICE OF EXERCISE

To: Ceres, Inc.

     (1) The undersigned hereby elects to purchase _______ shares of Common Stock, par value $.01
per share, of Ceres, Inc. (the “Shares”), pursuant to the terms of the attached Warrant.

     (2) The undersigned tenders herewith payment of the purchase price for such Shares in full:

	 	o	 	in cash
	 
	 	o	 	elects to receive a number of shares upon
exercise calculated in accordance with Section 4(d) of the Warrant,
if such section is applicable at the date of exercise.

     (3) In exercising this Warrant, the undersigned hereby confirms and acknowledges that (i) the
Shares are being acquired solely for the account of the undersigned and not as a nominee for any
other party, for investment, and that the undersigned will not offer, sell, pledge, hypothecate or
otherwise transfer or dispose of any such Shares except under circumstances that will not result in
a violation of the Securities Act of 1933, as amended (the “Securities Act”), or any state
securities or blue sky laws, and (ii) the undersigned is an “accredited investor” (as defined in
Rule 501(a) of Regulation D under the Securities Act.

     (4) Please issue a certificate or certificates representing said Shares in the name of the
undersigned or in such other name as is specified below:

	 	 	 

	 

	 	 
	 

	 	[Name]
	 
	 	 
	 

	 	 
	 

	 	[Name]

     (5) Please issue a new Warrant for the unexercised portion of the attached Warrant in the name
of the undersigned or in such other name as is specified below:

	 	 	 

	 

	 	 
	 

	 	[Name]

	 	 	 

	 

	 	 
	Date:                    , 20__ 

	 	[Signature]

 
			
	 	 	 
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	 	Page 55 of 60

 

 

FORM OF ASSIGNMENT

(To be executed by the registered holder hereof)

     FOR VALUE RECEIVED, the undersigned registered owner of this Warrant hereby sells, assigns and
transfers unto the assignee named below all the rights of the undersigned under this Warrant with
respect to the number of shares of Common Stock, par value $.01 per share, of Ceres, Inc. covered
thereby set forth below:

	 	 	 	 	 
	 	 	Address and Jurisdiction	 	Number of Shares
	Name of Assignee	 	of Organization	 	of Common Stock
	 
	 
	 	 
	 	 

	 	 	 

	Dated:                     

	 	 
	 

	 	Signature of Registered Holder
	 
	 	 
	 

	 	 
	 

	 	Name of Registered Holder
	 

	 	(Please Print)

	 	 	 

	Witness:
	 	 
	 
	 

	 	 

 
			
	 	 	 
	Amended and Restated Intellectual Property Rights Agreement
	 	Page 56 of 60

 

 

AMENDMENT NO. 1

TO

WARRANT TO PURCHASE SHARES OF COMMON STOCK

          This AMENDMENT NO. 1 TO WARRANT TO PURCHASE SHARES OF COMMON STOCK (this “Amendment”)
is entered into as of September 24, 2011 between The Texas A&M University System, an agency of the
State of Texas (the “Holder”), and Ceres, Inc., a Delaware corporation (the
“Company”).

          Reference is made to that certain Warrant to Purchase Shares of Common Stock (the
“Warrant”) issued by the Company in favor of the Holder having the issue date of July 18,
2008. Terms defined in the Warrant are used herein as therein defined.

          In connection with the execution of the IP Agreement (as defined below) by the Company and the
Holder and the execution of the ARSRA (as defined below) by the Company and Texas Agrilife
Research, a member of the Holder, the parties hereby agree to amend the Warrant as follows:

          The last sentence of the first paragraph of the Warrant is hereby amended in its entirety to
read as follows:

“Each capitalized term used but not defined herein shall have the meaning
ascribed thereto in the Intellectual Property Rights Agreement dated
August 29, 2007 between the Company and the Holder, as amended and
restated by the Company and Holder as of September 24, 2011 by way of the
Amended and Restated Intellectual Property Rights Agreement (the “IP
Agreement”).”

          Section 1(a) of the Warrant is hereby amended in its entirety to read as follows:

“This Warrant shall be exercisable for an aggregate of up to 200,000
shares (the “Shares”) of Common Stock, subject to adjustment as set forth
in Section 10 below, and shall become exercisable in installments as
follows:

     (i) equal installments of twenty five hundred (2,500) shares of
Common Stock each time a Marker-Trait Association Milestone is reached, up
to a maximum of five such installments;

     (ii) equal installments of twenty five hundred (2,500) shares of
Common Stock each time a Lines Milestone is reached, up to a maximum of
five such installments; and

			
	 	 	 
	Amended and Restated Intellectual Property Rights Agreement
	 	Page 57 of 60

 

 

(iii) equal installments of five thousand (5,000) shares of Common
Stock each time a Commercial Milestone is reached, up to a maximum of five
such installments.

For the avoidance of doubt, in no event shall the number of shares of
Common Stock that are the subject of this Warrant exceed 200,000 shares.”

          Section 1(b) of the Warrant is hereby amended in its entirety to read as follows:

“The number of shares of Common Stock for which this Warrant may become
exercisable pursuant to the achievement of a Marker-Trait Association
Milestone, a Lines Milestone or a Commercial Milestone shall be multiplied
by four (4) with respect to each particular installment (an
“Installment”) provided that, at the time such milestone is
achieved, (i) neither the Holder nor Texas Agrilife Research, a member of
the Holder (“Texas Agrilife”) has breached, or is in breach of,
any provisions of the Sponsored Research Agreement, dated August 29, 2007,
between the Company and the Holder (the “SRA”), as amended and
restated by the Company and Texas AgriLife by way of the Amended and
Restated Sponsored Research Agreement, dated September 24, 2011, between
the Company and Texas Agrilife (the “ARSRA”), the IP Agreement
including the Guidelines for Future Collaborative Opportunities attached
as Appendix C thereto (the “Guidelines”), or any license entered
into pursuant to the IP Agreement, (ii) neither the Holder nor Texas
Agrilife has proceeded to any activities, such as participation in an
Additional Collaboration Project and/or use of Lines or Hybrids developed
in the Program, contrary to the Company’s expressed preference, as
referred to in Clause 1.2 of the Guidelines, and (iii) neither the Holder
nor Texas Agrilife has collaborated or is collaborating with, nor has
granted rights to, any other party for Germplasm Improvement of
Biomass/Bioenergy/Sweet Sorghum.”

          Section 1 of the Warrant is hereby amended by adding the following subsection (c):

“(c) For purposes of this Warrant:

“Marker-Trait Association Milestone” means the execution by the
Holder and the Company of an exclusive license agreement for a patented or
patent pending marker-trait association discovered in the Program (as
defined in the ARSRA), which marker and related data have been transferred
from the Holder to the Company, for a gene defined in the Program or by
the Executive Committee (as

 
			
	 	 	 
	Amended and Restated Intellectual Property Rights Agreement
	 	Page 58 of 60

 

 

defined in the ARSRA) which the Holder has used to develop a Line (as
defined in the ARSRA) and/or Derivative (as defined in the ARSRA), which
Line or Derivative and related data have also been transferred from the
Holder to the Company.

“Lines Milestone” means the exclusive licensing of a distinct Line
or Derivative through execution by the Holder and the Company of an
exclusive license agreement granting rights in such Line or Derivative
(including related lines and populations) developed in the Program.

“Commercial Milestone” means market introduction in the United
States or Brazil of a Hybrid (as defined in the ARSRA) or Derivative
having at least one finished inbred Line that is stable, pure and
reproducible and that is developed in the Program as a parental line and
transferred from the Holder to the Company as breeder seed suitable for
commercial increase and which Hybrid or Derivative is royalty bearing
under an exclusive license to such Line from the Holder to the Company.”

          Section 2 of the Warrant is hereby amended in its entirety to read as follows:

“Term of Warrant. This Warrant shall remain exercisable for a
period of ten (10) years from August 29, 2007 (the “Exercise
Period”). Nothing to the contrary withstanding, this Warrant shall
terminate and may no longer be exercised upon the termination by the
Company of the IP Agreement pursuant to Section 2.B thereof or upon
termination by the Company of the ARSRA in the event that AGRILIFE
materially breaches any provision of the ARSRA which breach is not cured
within sixty (60) days after the date of written notice provided by CERES
to AGRILIFE specifying such breach.”

          This Amendment and the Warrant set forth in full all of the representations and agreements of
the parties with respect to the subject matter hereof and supersede all prior discussions,
representations, agreements and understandings between the parties with respect to the subject
matter hereof. Except as herein expressly amended, all of the terms and provisions of the Warrant
shall continue in full force and effect and the same are hereby ratified and confirmed. This
Amendment is deemed attached to and made part of the Warrant instrument, which all together shall
comprise the Warrant instrument.

[Remainder of Page Intentionally Left Blank]

 
			
	 	 	 
	Amended and Restated Intellectual Property Rights Agreement
	 	Page 59 of 60

 

 

     IN WITNESS WHEREOF, each of the parties has caused this Amendment to be executed by its
officers thereunder duly authorized on the date first written above.

	 	 	 	 	 	 	 	 	 

	Company:	 	 	 	Holder:
	 
	 	 	 	 	 	 	 	 
	Ceres, Inc.	 	 	 	The Texas A&M University System
	 
	 	 	 	 	 	 	 	 
	By

	 	 	 	 	 	By	 	 
	 

	 	 
	 	 	 	 	 	 
	Name: Paul Kuc	 	 	 	Name:
	Title: Chief Financial Officer	 	 	 	Title:
	 
	 	 	 	 	 	 	 	 
	Ceres, Inc.	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Name: Richard Hamilton	 	 	 	 	 	 
	Title: President & Chief Executive
Officer	 	 	 	 	 	 

 
			
	 	 	 
	Amended and Restated Intellectual Property Rights Agreement
	 	Page 60 of 60

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