Document:

exv10w27

Exhibit 10.27

*** Text Omitted and Filed Separately

Confidential Treatment Requested

Under 17 C.F.R. §§ 200.80(b)(4)

and 203.406

Agreement No. 4780

STANDARD EXCLUSIVE LICENSE AGREEMENT

WITH SUBLICENSING TERMS

TABLE OF CONTENTS

	 

	Section 1 Definitions

	Section 2 Grant

	Section 3 Due Diligence

	Section 4 Royalties

	Section 5 Certain Warranties and Disclaimers of UFRF

	Section 6 Record keeping

	Section 7 Patent Prosecution

	Section 8 Infringement and Invalidity

	Section 9 Term and Termination

	Section 10 Assignability

	Section 11 Dispute Resolution Procedures

	Section 12 Product Liability; Conduct of Business

	Section 13 Use of Names

	Section 14 Miscellaneous

	Section 15 Notices

	Section 16 Contract Formation and Authority

	Section 17 United States Government Interests

	Section 18 Confidentiality

	Section 19 University Rules and Regulations

	 

	Appendix A — Development Plan

	Appendix B — Development Report

	Appendix C — UFRF Royalty Report

	Appendix D — Milestones

     This Agreement is made effective the 3rd day of October, 2005, (the “Effective Date”) by and
between the University of Florida Research Foundation, Inc. (hereinafter called “UFRF”), a
nonstock, nonprofit Florida corporation, and BioEnergy International LLC having an address at 99
Longwater Circle, Norwell, MA 02061 (hereinafter called “Licensee”), a corporation organized and
existing under the laws of Delaware;

     WHEREAS, UFRF owns certain inventions that are described in the “Licensed Patents” defined
below, and UFRF is willing to grant a license to Licensee under any one or all of the Licensed
Patents and Licensee desires a license under all of them;

 

			
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     NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth below, the
parties covenant and agree as follows:

Section 1. Definitions

	 	1.1	 	“Licensed Patents” shall refer to and mean all of the following
UFRF intellectual property:

	 	1.1.1	 	the United States patent(s)/patent
application(s) entitled “Production of Chemicals from Lignocellulose,”
filed in the United States Patent Office on March 3rd, 2004, and
assigned Registration Number/Serial Number 10/793,568 and all United
States patents and foreign patents and patent applications based on
this U.S. application, including PCT patent number PCT/US05/06774 filed
on March 2nd, 2005.
	 
	 	1.1.2	 	United States and foreign patents issued from
the applications listed in 1.1.1 above and from divisionals and
continuations of these applications, to the extent the claims are
directed to subject matter specifically described in the applications
listed in 1.1.1 above and are dominated by the claims of those patent
applications and patents issuing thereon or reissues thereof, and any
and all foreign patents and patent applications corresponding thereto,
all to the extent owned or controlled by the University of Florida.

	 	1.2	 	“Licensed Product” and “Licensed Process” shall mean:

	 	1.2.1	 	In the case of a Licensed Product, any product
or part thereof developed by or on behalf of Licensee that:

	 	(a)	 	is covered in whole or in part by
an issued, unexpired claim or a pending claim contained in the
Licensed Patents, in any country in which any product is made,
used or sold; or
	 
	 	(b)	 	is manufactured by using a
process which is covered in whole or in part by an issued,
unexpired claim or a pending claim contained in the Licensed
Patents, in any country in which any such process is used or in
which any such product is used or sold

	 	1.2.2	 	In the case of a Licensed Process:

	 	(a)	 	any process which is covered in
whole or in part by an issued, unexpired claim or a pending
claim contained in the Licensed Patents in any country in which
such process is practiced

 

			
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	 	1.3	 	“Improvements” shall mean any modification of an invention
described in the Licensed Patents which, if unlicensed, would infringe one or
more claims of the Licensed Patents.
	 
	 	1.4	 	“Net Sales” shall mean the amount invoiced on sales of Licensed
Product and/or Licensed Processes after deducting, if not already deducted in
the amount invoiced:

	 	•	 	Trade and/or quantity discounts
	 
	 	•	 	Credits on returns and allowances
	 
	 	•	 	Outbound transportation costs paid

	 	 	The “Net Sales” for a Licensed Product or Licensed Process that is transferred to a
third party for promotional purposes without charge or at a discount shall be the
average invoiced price to the customer of that type of Licensed Product and/or
Licensed Process during the applicable calendar quarter.

	 	1.5	 	The term “Affiliate” shall mean: (a) any person or entity which
controls at least fifty percent (50%) of the equity or voting stock of the
Licensee or (b) any person or entity fifty percent (50%) of whose equity or
voting stock is owned or control led by the Licensee or (c) any person or
entity of which at least fifty percent (50%) of the equity or voting stock is
owned or controlled by the same person or entity owning or controlling at least
fifty percent (50%) of Licensee or (d) any entity in which any officer,
employee, or director is also an officer, employee, or director of Licensee or
any person who is an officer, employee or director of Licensee.
	 
	 	1.6	 	The term “Sublicensee” shall mean any third party to whom
Licensee confers the right to make, use or sell Licensed Product and/or
Licensed Processes.
	 
	 	1.7	 	“Development Plan” shall mean a written report summarizing the
development activities that are to be undertaken by the Licensee to bring
Licensed Products and/or Licensed Processes to the market. The Development
Plan is attached as Development Plan.
	 
	 	1.8	 	“Development Report” shall mean a written account of Licensee’s
progress under the Development Plan having at least the information specified
on Appendix B to this Agreement, and shall be sent to the address specified on
Appendix B .
	 
	 	1.9	 	“Licensed Field” shall be limited to the field of specialty
chemicals excluding the production of ethanol.
	 
	 	1.10	 	“Licensed Territory” shall be limited to worldwide

 

			
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Section 2. Grant

	 	2.1	 	License

	 	2.1.1	 	License Under Licensed Patents

	 	 	UFRF hereby grants to Licensee an exclusive license, limited to the Licensed Field
and the Licensed Territory, under the Licensed Patents to make, use and sell
Licensed Products and/or Licensed Processes. UFRF reserves to itself and the
University of Florida the right to make and use Licensed Products and/or Licensed
Processes solely for their internal, non-commercial: research, clinical, and
educational purposes. In addition, UFRF reserves to itself, as well as to the
University of Florida and to all non-profit research institutions, the right to use
materials that might be covered under Licensed Patents solely for their internal,
non-commercial research, educational, and clinical purposes and to meet all
applicable governmental requirements governing the ability to transfer materials.

	 	2.2	 	Sublicense.

	 	2.2.1	 	Licensee may grant written, Sublicenses to
third parties subject to UFRF prior review and consent which review and
consent shall not be unreasonably withheld. Any agreement granting a
Sublicense shall state that the Sublicense is subject to the
termination provisions as defined in Section 9.8 of this Agreement.
Licensee shall have the same responsibility for the activities of any
Sublicensee or Affiliate as if the activities were directly those of
Licensee.
	 
	 	2.2.2	 	In respect to Sublicenses granted by Licensee
under 2.2.1. Licensee shall pay to UFRF an amount equal to [...***...]
of all royalties received by Licensee for Licensed Products sold by
such Sublicensee. In addition, if Licensee receives any fees, minimum
royalties, or other payments in consideration for any rights granted
under a Sublicense, and such payments are not based directly upon the
amount or value of Licensed Products sold by the Sublicensee, then
Licensee shall pay UFRF [...***...] of all of such payments in the
manner specified in Section 4.4. Licensee shall not receive from
Sublicensees anything of value in lieu of cash payments in
consideration for any Sublicense under this Agreement without the
express prior written permission of UFRF.
	 
	 	2.2.3	 	“Permitted Deductions” means funds received as
consideration for equity purchases of LICENSEE’S securities by a
sublicense (provided that fair and commercially reasonable sublicense
fees are collected in conjunction with such transaction) and any other
payments received by LICENSEE from any sublicense for purposes of
paying or reimbursing LICENSEE for any future

 

			
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	 	 	 	research, development, testing, or engineering services actually
undertaken by or for LICENSEE related to any Licensed Product or
Licensed Process.
	 
	 	2.2.4	 	Licensee shall provide UFRF with an unredacted
copy of each sublicense agreement and any agreement which transfers
intellectual property rights granted hereunder, within thirty (30) days
prior to the execution of the sublicense agreement.
	 
	 	2.2.5	 	If Licensee is unable or unwilling to serve or
develop a potential market or market territory for which there is a
company willing to be a sublicensee. Licensee will, at UFRF’s request,
negotiate in good faith a sublicense with any such sublicensee.

Section 3. Due Diligence

	 	3.1	 	Development.

	 	3.1.1	 	Licensee agrees to and warrants that:

	 	(a)	 	it has, or will obtain, the
expertise necessary to independently evaluate the inventions of
the Licensed Patents;
	 
	 	(b)	 	it will establish and actively
and diligent!), pursue the Development Plan (see Appendix A ) to
the end that the inventions of the Licensed Patents will be
utilized to provide Licensed Products and/or Licensed Processes
for sale in the retail market within the Licensed Field;
	 
	 	(c)	 	it will diligently develop
markets for Licensed Products and Licensed Processes;
	 
	 	(d)	 	and, until the date of first
commercial sale of Licensed Products or Licensed Processes, it
will supply UFRF with a written Development Report annually
fifteen (15) days after the end of the calendar year (see
Appendix B ).

	 	 	 	UFRF’s review of Licensee’s Development Plan is solely to verify the
existence of Licensee’s commitment to development activity and to ensure
compliance with Licensee’s obligations to commercialize the inventions of
the Licensed Patents, as set forth above.

	 	3.1.2	 	Licensee agrees that the first commercial sale
of one or more products to the customer shall occur on or before August
1, 2010 or UFRF shall have the right to terminate the Agreement
pursuant to Section 9.4 hereto. In addition, Licensee will meet the
milestones shown in Appendix D or UFRF shall have the right to

 

			
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	 	 	 	terminate the Agreement pursuant to Section 9.4. Licensee will
notify UFRF in writing as each milestone is met
	 
	 	3.1.3	 	Licensee agrees that three years after the
Effective Date of this Agreement the Licensee would have achieved one
of the following milestones: a) Completion of at least one sublicense
for rights under the Licensed Patents or Licensed Process or b)
Production of 10 Kilogram sample quantities of the Licensed Products by
the Licensee. If neither of these milestones is met by the License,
then the Licensee shall pay UFRF $[...***...] for a one time,
non-refundable, 2-year extension to meet either milestone. Failure to
meet either milestone after the 2-year extension is a material breach
of this Agreement and grounds for termination pursuant to Section 9.3
hereto.
	 
	 	3.1.4	 	Upon written request by Licensee to negotiate
extensions of any Milestones Due Dates set forth in Appendix D, such
request to be received by UFRF no less than ninety (90) days prior to
any of the Due Dates subject of such request, set forth in this Section
3.1.3, such request fully describing Licensees Commercially Reasonable
Efforts to achieve the Milestone required to be met by such Due Date,
UFRF shall consider in good faith such requests. Upon granting such
request, UFRF and Licensee shall negotiate such extensions in good
faith

Section 4. Royalties

	 	4.1	 	License Issue Fee.

	 	 	Licensee agrees to pay to UFRF a License Issue Fee of one thousand dollars ($1,000)
within thirty (30) days of the Effective Date.

	 	4.2	 	Royalty

	 	4.2.1	 	Royalty on Licensed Patents. In
addition to the Section 4.1 License Issue Fee, Licensee agrees to pay
to UFRF as earned royalties a royalty calculated as a percentage of Net
Sales of Licensed Products which, if not for this Agreement, would
infringe Licensed Patents, in accordance with the terms and conditions
of this Agreement. The royalty is deemed earned as of the earlier of
the date the Licensed Product and/or Licensed Process is actually sold
and paid for, the date an invoice is sent by Licensee or its
Sublicensee(s), or the date a Licensed Product and/or Licensed Process
is transferred to a third party for any promotional reasons. If the
License Product and/or Licensed Process is sold by the Licensee the
royalty shall remain fixed while this Agreement is in effect at a rate
of [...***...] of Net Sales. If the License Product

 

			
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	 	 	 	and/or Licensed Process is sold by the Sublicensee the royalty shall
be paid to UFRF as specified in Section 2.2.2

	 	4.3	 	Other Payments.

	 	4.3.1	 	Licensee agrees to pay UFRF Minimum Royalty
payments, as follows:

	 	 	 
	Payment	 	Year
	$[...***...]

	 	2010 and every year thereafter on the same date, for the life
of this Agreement.

	 	 	The Minimum Royalty shall be paid in advance on a quarterly basis for each year in
which this Agreement is in effect. The first Minimum Royalty payment shall be due
on December 31, 2009 and shall be in the amount of $[...***...]. The Minimum
Royalty for a given year shall be due in advance and shall be paid in quarterly
installments on March 31, June 30, September 30, and December 31 for the following
quarter. Any Minimum Royalty paid in a calendar year will be credited against the
earned royalties for that calendar year. It is understood that the Minimum
Royalties will be applied to earned royalties on a calendar year basis, and that
sales of Licensed Products and/or Licensed Processes requiring the payment of earned
royalties made during a prior or subsequent calendar year shall have no effect on
the annual Minimum Royalty due UFRF for other than the same calendar year in which
the royalties were earned.

	 	4.3.2	 	In addition to all other payments required
under this Agreement, Licensee agrees to pay UFRF Milestone payments,
as follows:

	 	 	 
	Payment	 	Event
	$1,500

	 	Issuance of the Licensed Patents

	 	4.4	 	Accounting for Payments.

	 	4.4.1	 	Amounts owing to UFRF under Sections 2.2 and
4.2 shall be paid on a quarterly basis after the amount of Minimum
Royalties paid is exceeded, with such amounts due and received by UFRF
on or before the thirtieth day following the end of the calendar
quarter ending on March 31, June 30, September 30 or December 31 in
which such amounts were earned. All amounts owing to UFRF pursuant to
this agreement which remain unpaid more than thirty (30) days after
they are due to UFRF shall accrue interest until paid at the rate of
the lesser of (a) [...***...] per month or (b) the maximum amount
allowed under applicable law. However, in no event shall this interest
provision be construed as a grant of permission for any payment delays.
Licensee shall also be responsible for repayment to UFRF of any
attorney, collection agency, or other out-of-pocket UFRF expenses
required to collect

 

			
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	 	 	 	overdue payments due from this Section 4.4.1, Section 6.2 or any
other applicable section of this Agreement.
	 
	 	4.4.2	 	Except as otherwise directed, all amounts
owing to UFRF under this Agreement shall be paid in U.S. dollars to
UFRF at the following address:

	 	 	 	University of Florida Research Foundation, Inc.

223 Grinter Hall

PO Box 115500

Gainesville, Florida 32611-5500

Attention: Business Manager
	 
	 	 	 	All royalties owing with respect to Net Sales stated in currencies other
than U.S. dollars shall be converted at the rate shown in the Federal
Reserve Noon Valuation — Value of Foreign Currencies on the day preceding
the payment.

	 	4.4.3	 	A certified full accounting statement showing
how any amounts payable to UFRF under Section 4.3 have been calculated
shall be submitted to UFRF on the date of each such payment. In
addition to being certified, such accounting statements shall contain a
written representation signed by an executive officer of Licensee that
states that the statements are true, accurate, and fairly represent all
amounts payable to UFRF pursuant to this Agreement. Such accounting
shall be on a per-country and product line, model or trade name basis
and shall be summarized on the form shown in Appendix C of this
Agreement. In the event no payment is owed to UFRF because the amount
of Minimum Royalties paid has not been exceeded or otherwise, an
accounting demonstrating that fact shall be supplied to UFRF.
	 
	 	4.4.4	 	UFRF is exempt from paying income taxes under
U.S. law. Therefore, all payments due under this Agreement shall be
made without deduction for taxes, assessments, or other charges of any
kind which may be imposed on UFRF by any government outside of the
United States or any political subdivision of such government with
respect to any amounts payable to UFRF pursuant to this Agreement. All
such taxes, assessments, or other charges shall be assumed by Licensee.

Section 5. Certain Warranties and Disclaimers of UFRF

	 	5.1	 	UFRF warrants that, except as otherwise provided under Section
17.1 of this Agreement with respect to U.S. Government interests, it is the
owner of the Licensed Patents or otherwise has the right to grant the licenses

 

			
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	 	 	 	granted to Licensee in this Agreement. However, nothing in this Agreement
shall be construed as:

	 	5.1.1	 	a warranty or representation by UFRF as to the
validity or scope of any right included in the Licensed Patents;
	 
	 	5.1.2	 	a warranty or representation that anything
made, used, sold or otherwise disposed of under the license granted in
this Agreement will or will not infringe patents of third parties;
	 
	 	5.1.3	 	an obligation to bring or prosecute actions or
suits against third parties for infringement of Licensed Patents;
	 
	 	5.1.4	 	an obligation to furnish any know-how not
provided in Licensed Patents or any services other than those specified
in this Agreement; or
	 
	 	5.1.5	 	a warranty or representation by UFRF that it
will not grant licenses to others to make, use or sell products not
covered by the claims of the Licensed Patents which may be similar
and/or compete with products made or sold by Licensee.

	 	5.2	 	EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT.
UFRF MAKES NO REPRESENTATIONS AND EXTENDS NO WARRANTIES OF ANY KIND, EITHER
EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE, AND VALIDITY OF PATENT RIGHTS CLAIMS, ISSUED
OR PENDING. UFRF ASSUMES NO RESPONSIBILITIES WHATSOEVER WITH RESPECT TO USE,
SALE, OR OTHER DISPOSITION BY LICENSEE, ITS SUBLICENSEE(S), OR THEIR VENDEES OR
OTHER TRANSFEREES OF PRODUCT INCORPORATING OR MADE BY USE OF INVENTIONS
LICENSED UNDER THIS AGREEMENT.

Section 6. Record keeping

	 	6.1	 	Licensee and its Sublicensee(s) shall keep books and records
sufficient to verify the accuracy and completeness of Licensee’s and its
Sublicensee(s)’s accounting referred to above, including without limitation,
inventory, purchase and invoice records, manufacturing records, sales analysis,
general ledgers, financial statements, and tax returns relating to the Licensed
Products and/or Licensed Processes. Such books and records shall be preserved
for a period not less than six years after they are created, both during and
after the term of this Agreement.
	 
	 	6.2	 	Licensee and its Sublicensee(s) shall take all steps necessary
so that UFRF may, within thirty (30) days of its written request, audit, review
and/or

 

			
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	 	 	 	copy all of the books and records at a single U.S. location to verify the
accuracy of Licensee’s and its Sublicensee(s)’s accounting. Such review may
be performed by any authorized employees of UFRF as well as by any attorneys
and/or accountants designated by UFRF, upon reasonable notice and during
regular business hours. If a deficiency with regard to any payment
hereunder is determined, Licensee and its Sublicensee(s) shall pay the
deficiency within thirty (30) days of receiving notice thereof along with
applicable interest as described in Section 4.4.1. If a royalty payment
deficiency for a calendar year exceeds three percent (3%) of the royalties
paid for that year, then Licensee and its Sublicensee(s) shall be
responsible for paying UFRF’s out-of-pocket expenses incurred with respect
to such review.
	 
	 	6.3	 	At any time during the term of this agreement, UFRF may request
in writing that Licensee verify the calculation of any past payments owed to
UFRF through the means of a self-audit. Within ninety (90) days of the
request, Licensee shall complete a self-audit of its books and records to
verify the accuracy and completeness of the payments owed. Within thirty (30)
days of the completion of the self-audit, Licensee shall submit to UFRF a
report detailing the findings of the self-audit and the manner in which it was
conducted in order to verify the accuracy and completeness of the payments
owed. If Licensee has determined through its self-audit that there is any
payment deficiency, Licensee shall pay UFRF the deficiency along with
applicable interest under Section 4.4.1 with the submission of the self-audit
report to UFRF.

Section 7. Patent Prosecution

	 	7.1	 	UFRF shall diligently prosecute and maintain the Licensed
Patents using counsel of its choice. UFRF shall provide Licensee with copies
of all patent applications amendments, and other filings with the United States
Patent and Trademark Office and foreign patent offices. UFRF will also provide
Licensee with copies of office actions and other communications received by
UFRF from the United States Patent and Trademark Office and foreign patent
offices relating to Licensed Patents. Licensee agrees to keep such information
confidential.
	 
	 	7.2	 	Licensee shall pay to UFRF the sum of $[...***...], within 30
days of the Effective Date which sum represents costs of preparation, filing,
prosecution, issuance, and maintenance of the Licensed Patents incurred prior
to the Effective Date.
	 
	 	7.3	 	Licensee shall be responsible for and pay all past and future
costs and expenses incurred by UFRF for the preparation, filing, prosecution,
issuance, and maintenance of the Licensed Patents within thirty (30) days of
receipt of an invoice from UFRF. It shall be the responsibility of Licensee to
keep UFRF fully apprised of the “small entity” status of

 

			
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	 	 	 	Licensee and all Sublicensees with respect to the U.S. patent laws and with
respect to the patent laws of any other countries, if applicable, and to
inform UFRF of any changes in such status, within thirty days of any such
change.

Section 8. Infringement and Invalidity

	 	8.1	 	Licensee shall inform UFRF promptly in writing of any alleged
infringement of the Licensed Patents by a third party and of any available
evidence thereof.
	 
	 	8.2	 	During the term of this Agreement, UFRF shall have the right,
but shall not be obligated, to prosecute at its own expense any such
infringements of the Licensed Patents. If UFRF prosecutes any such
infringement, Licensee agrees that UFRF may include Licensee as a co-plaintiff
in any such suit, without expense to Licensee. In the event that shall
undertake the enforcement by litigation and/or defense of the Licensed Patents
by litigation, any recovery of damages by UFRF for any such suit shall be
applied first in satisfaction of any unreimbursed expenses and legal fees of
UFRF relating to the suit. The balance remaining from any such recovery shall
be divided equally between Licensee and UFRF
	 
	 	8.3	 	If within six (6) months after having been notified of any
alleged infringement, UFRF shall have been unsuccessful in persuading the
alleged infringer to desist and shall not have brought and shall not be
diligently prosecuting an infringement action, or if UFRF shall notify Licensee
at any time prior thereto of its intention not to bring suit against any
alleged infringer, then, and in those events only, Licensee shall have the
right, but shall not be obligated, to prosecute at its own expense any
infringement of the Licensed Patents, and Licensee may, for such purposes, use
the name of UFRF as party plaintiff. No settlement, consent judgment or other
voluntary final disposition of the suit may be entered into without the consent
of UFRF, which consent shall not unreasonably be withheld. Licensee shall
indemnify UFRF against any order for costs that may be made against UFRF in
such proceedings.
	 
	 	8.4	 	In the event that Licensee shall undertake the enforcement by
litigation and/or defense of the Licensed Patents by litigation, any recovery
of damages by Licensee for any such suit shall be applied first in satisfaction
of any unreimbursed expenses and legal fees of Licensee relating to the suit,
and next toward reimbursement of UFRF for any legal fees, and unreimbursed
expenses. The balance remaining from any such recovery shall be divided
equally between Licensee and UFRF.
	 
	 	8.5	 	In any infringement suit that either party may institute to
enforce the Licensed Patents pursuant to this Agreement, the other party hereto
shall, at the request and expense of the party initiating such suit, cooperate
in all

 

			
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	 	 	 	respects and, to the extent possible, have its employees testify when
requested and make available relevant records, papers, information, samples,
specimens, and the like.
	 
	 	8.6	 	In the event a declaratory judgment action alleging invalidity
or noninfringement of any of the Licensed Patents shall be brought against
Licensee, UFRF, at its option, shall have the right, within thirty (30) days
after commencement of such action, to intervene and take over the sole defense
of the action at its own expense.
	 
	 	8.7	 	In the event Licensee contests the validity of any Licensed
Patents, Licensee shall continue to pay 50% of the royalties owed to UFRF and
make other payments pursuant to this Agreement with respect to that patent as
if such contest were not underway until the patent is adjudicated invalid or
unenforceable by a court of last resort. Upon resolution of any such contest,
the Licensee’s obligation to pay royalties to UFRF shall be retroactively
restored. Any balance of royalties due to UFRF under 8.7 shall be paid to UFRF
within 30 days of the resolution of any such contest.

Section 9. Term and Termination

	 	9.1	 	The term of this license shall begin on the Effective Date of
this Agreement and continue until the earlier of the date that no Licensed
Patent remains an enforceable patent or the payment of earned royalties under
Section 4.3 once begun, ceases for more than two (2) calendar quarters.
	 
	 	9.2	 	Licensee may terminate this Agreement at any time by giving at
least sixty (60) days written notice of such termination to UFRF. Such a
notice shall be accompanied by a statement of the reasons for termination.
	 
	 	9.3	 	UFRF may terminate this Agreement by giving Licensee at least
thirty (30) days written notice if Licensee:

	 	9.3.1	 	is delinquent on any report or payment
	 
	 	9.3.2	 	provides any false report.
	 
	 	9.3.3	 	is late in paying royalties or any amounts due
to UFRF in two (2) consecutive calendar quarters
	 
	 	9.3.4	 	fails to achieve the milestones described in
Section 3.1.3 after the 2 year extension has lapsed.

	 	 	 	Termination under this Section 9.3 will take effect 30 days after written
notice by UFRF unless Licensee remedies the problem in that 30-day period.

 

			
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	 	9.4	 	UFRF may terminate this Agreement by giving Licensee at least
thirty (90) days written notice if Licensee:

	 	9.4.1	 	is not diligently developing and
commercializing Licensed Product and Licensed Process
	 
	 	9.4.2	 	misses a milestone described in Appendix D; or
	 
	 	9.4.3	 	is in breach of any provision

	 	 	 	Termination under this Section 9.4 will take effect 90 days after written
notice by UFRF unless Licensee remedies the problem in that 90-day period.
	 
	 	9.5	 	UFRF may immediately terminate this Agreement upon the
occurrence of the second separate default by Licensee within any consecutive
three-year period for failure to pay royalties, patent or any other expenses
when due.
	 
	 	9.6	 	Upon the termination of this Agreement for any reason, nothing
herein shall be construed to release either party from any obligation that
matured prior to the effective date of such termination. Licensee shall remain
obligated to provide an accounting for and to pay royalties earned to the date
of termination, and any Minimum Royalties shall be prorated as of the date of
termination by the number of days elapsed in the applicable calendar year.
Licensee may, however, after the effective date of such termination, sell all
Licensed Products, and complete Licensed Products in the process of manufacture
at the time of such termination and sell the same, provided that Licensee shall
remain obligated to provide an accounting for and to pay running royalties
thereon.
	 
	 	9.7	 	Licensee shall be obligated to deliver to UFRF, within ninety
days of the date of termination of this agreement, complete and unredacted
copies of all documentation prepared for or submitted for all regulatory
approvals of Licensed Products or Licensed Processes.
	 
	 	9.8	 	Upon termination of this Agreement for any reason, any
sublicensee not then in default, as determined by UFRF, shall receive from
UFRF, a grant similar in scope as the grant set forth in the Sublicense
Agreement with the Licensee and all other rights in the Sublicense Agreement
reasonably necessary to continue the business of such sublicensee except the
UFRF shall be under no obligation to grant any rights which UFRF does not have
or to perform any services for which it is unsuited. All payments required to
be made by such sublicensee shall, from the date of termination of this
Agreement, be paid to UFRF.

Section 10. Assignability

 

			
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	 	 	This Agreement may not be transferred or assigned by Licensee except with the prior
written consent of UFRF.

Section 11. Dispute Resolution Procedures

	 	11.1	 	Mandatory Procedures.
	 
	 	 	 	In the event either party intends to file a lawsuit against the other with
respect to any matter in connection with this Agreement, compliance with the
procedures set forth in this Section shall be a condition precedent to the
filing of such lawsuit, other than for injunctive relief. Either party may
terminate this Agreement as provided in this Agreement without following the
procedures set forth in this section.

	 	11.1.1	 	When a party intends to invoke the procedures set forth in this
section, written notice shall be provided to the other party. Within
thirty (30) days of the date of such notice, the parties agree that
representatives designated by the parties shall meet at mutually
agreeable times and engage in good faith negotiations at a mutually
convenient location to resolve such dispute.
	 
	 	11.1.2	 	If the parties fail to meet within the time period set forth in
section 11.1.1 above or if either party subsequently determines that
negotiations between the representatives of the parties are at an
impasse, the party declaring that the negotiations are at an impasse
shall give notice to the other party stating with particularity the
issues that remain in dispute.
	 
	 	11.1.3	 	Not more than 15 days after the giving of such notice of issues, each
party shall deliver to the other party a list of the names and
addresses of at least three individuals, any one of whom would be
acceptable as a neutral advisor in the dispute (the “Neutral Advisor”)
to the party delivering the list. Any individual proposed as a Neutral
Advisor shall have experience in determining, mediating, evaluating, or
trying intellectual property litigation and shall not be affiliated
with the party that is proposing such individual.
	 
	 	11.1.4	 	Within 10 days after delivery of such lists, the parties shall agree
on a Neutral Advisor. If they are unable to so agree within that time,
within 5 days, they shall each select one individual from the lists.
Within 5 days, the individuals so selected shall meet and appoint a
third individual from the lists to serve as the Neutral Advisor.
Within 30 days after the selection of a Neutral Advisor:

	 	(a)	 	The parties shall each provide a
written statement of the issues in dispute to the Neutral
Advisor.

 

			
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	 	(b)	 	The parties shall meet with the
Neutral Advisor in Gainesville, Florida on a date and time
established by the Neutral Advisor. The meeting must be
attended by persons authorized to make final decisions on behalf
of each party with respect to the dispute. At the meeting, each
party shall make a presentation with respect to its position
concerning the dispute. The Neutral Advisor will then discuss
the issues separately with each party and attempt to resolve all
issues in the dispute. At the meeting, the parties will enter
into a written settlement agreement with respect to all issues
that are resolved. Such settlement agreement shall be final and
binding with respect to such resolved issues and may not be the
subject of any lawsuit between the parties, other than a suit
for enforcement of the settlement agreement.

	 	11.1.5	 	The expenses of the neutral advisor shall be shared by the parties
equally. All other out-of-pocket costs and expenses for the
alternative dispute resolution procedure required under this Section
shall be paid by the party incurring the same.
	 
	 	11.1.6	 	Positions taken and statements made during this alternative dispute
resolution procedure shall be deemed settlement negotiations and shall
not be admissible for any purpose in any subsequent proceeding.

	 	11.2	 	Failure to Resolve Dispute.
	 
	 	 	 	If any issue is not resolved at the meeting with the Neutral Advisor, either
party may file appropriate administrative or judicial proceedings with
respect to the issue that remains in dispute. No new issues may be included
in the lawsuit without the mandatory procedures set forth in this section
having first been followed.
	 
	 	11.3	 	Survival.
	 
	 	 	 	The provisions of this Section shall survive termination of this Agreement.

Section 12. Product Liability; Conduct of Business

	 	12.1	 	Licensee and its Sublicensee(s) shall, at all times during the
term of this Agreement and thereafter, indemnify, defend and hold UFRF, the
Florida Board of Governors, the University of Florida Board of Trustees, the
University of Florida, and each of their directors, officers, employees, and
agents, and the inventors of the Licensed Patents, regardless of whether such
inventors are employed by the University of Florida at the time of the claim,
harmless against all claims and expenses, including legal expenses and
reasonable attorneys fees, whether arising from a third party claim or

 

			
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	 	 	 	resulting from UFRF’s enforcing this indemnification clause against
Licensee, arising out of the death of or injury to any person or persons or
out of any damage to property and against any other claim, proceeding,
demand, expense and liability of any kind whatsoever (other than patent
infringement claims) resulting from the production, manufacture, sale, use,
lease, consumption, marketing, or advertisement of Licensed Products or
Licensed Process(es) or arising from any right or obligation of Licensee
hereunder. Notwithstanding the above, UFRF at all times reserves the right
to retain counsel of its own to defend UFRF’s, the Florida Board of
Governors’, the University of Florida Board of Trustees’, the University of
Florida’s, and the inventor’s interests.
	 
	 	12.2	 	Licensee warrants that it now maintains and will continue to
maintain liability insurance coverage appropriate to the risk involved in
producing, manufacturing, selling, marketing, using, leasing, consuming, or
advertising the products subject to this Agreement and that such insurance
coverage lists UFRF, the Florida Board of Governors, the University of Florida
Board of Trustees, the University of Florida, and the inventors of the Licensed
Patents as additional insureds. Within ninety (90) days after the execution of
this Agreement and thereafter annually between January 1 and January 31 of each
year, Licensee will present evidence to UFRF that the coverage is being
maintained with UFRF, the University of Florida, and its inventors listed as
additional insureds. In addition, Licensee shall provide UFRF with at least
thirty (30) days prior written notice of any change in or cancellation of the
insurance coverage.

Section 13. Use of Names

	 	 	Licensee and its Sublicensee(s) shall not use the names of UFRF, or of the
University of Florida, nor of any of either institution’s employees, agents, or
affiliates, nor the name of any inventor of Licensed Patents, nor any adaptation of
such names, in any sales promotion, advertising, or any other form of publicity
without the prior written approval of UFRF in each case, except that Licensee may
state that it has received a license from UFRF under one or more or the patents
and/or applications comprising the Licensed Patents.

Section 14. Miscellaneous

	 	14.1	 	This Agreement shall be construed in accordance with the
internal laws of the State of Florida
	 
	 	14.2	 	The parties hereto are independent contractors and not joint
venturers or partners.
	 
	 	14.3	 	Licensee shall insure that it applies patent markings that meet
all requirements of U.S. law, 35 U.S.C. §287, with respect to all Licensed
Products subject to this Agreement.

 

			
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	 	14.4	 	This Agreement constitutes the full understanding between the
parties with reference to the subject matter hereof, and no statements or
agreements by or between the parties, whether orally or in writing, shall vary
or modify the written terms of this Agreement. Neither party shall claim any
amendment, modification, or release from any provisions of this Agreement by
mutual agreement, acknowledgment, or otherwise, unless such mutual agreement is
in writing, signed by the other party, and specifically states that it is an
amendment to this Agreement.
	 
	 	14.5	 	Licensee shall not encumber or otherwise grant a security
interest in any of the rights granted hereunder to any third party.
	 
	 	14.6	 	Licensee acknowledges that it is subject to and agrees to abide
by the United States laws and regulations (including the Export Administration
Act of 1979 and Arms Export Contract Act) controlling the export of technical
data, computer software, laboratory prototypes, biological material, and other
commodities. The transfer of such items may require a license from the
cognizant agency of the U.S. Government or written assurances by Licensee that
it shall not export such items to certain foreign countries without prior
approval of such agency. UFRF neither represents that a license is or is not
required or that, if required, it shall be issued.
	 
	 	14.7	 	Licensee is responsible for any and all wire/bank fees
associated with all payments due to UFRF pursuant to this agreement.

Section 15. Notices

	 	 	Any notice required to be given pursuant to the provisions of this Agreement shall
be in writing and shall be deemed to have been given

	 	•	 	when delivered personally,
	 
	 	•	 	if sent by facsimile transmission, when receipt thereof is
acknowledged at the facsimile number of the recipient as set forth
below,
	 
	 	•	 	the second day following the day on which the notice has been
delivered prepaid to a national air courier service, or
	 
	 	•	 	five (5) business days following deposit in the U.S. mail if sent
certified mail, return receipt requested:

	 	15.1	 	If to the University of Florida Research Foundation, Inc.:

President

University of Florida Research Foundation, Inc.

223 Grinter Hall

University of Florida

 

			
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Post Office Box 115500

Gainesville, FL 32611-5500

Facsimile Number: 352-846-0491

with a copy to:

Office of Technology Licensing

Attn: Director

308 Walker Hall

University of Florida

Post Office Box 115500

Gainesville, Florida 32611-5500

Facsimile Number: 352-392-6600

	 	15.2	 	If to Licensee:

Stephen J. Gatto

Chief Executive Officer

BioEnergy International, LLC

99 Longwater Circle

Norwell, MA 02061

Facsimile Number: 781-681-5055

Section 16. Contract Formation and Authority

	 	16.1	 	No agreement between the parties shall exist unless the duly
authorized representative of Licensee and the Director of the Office of
Technology Transfer of UFRF have signed this document within thirty (30) days
of the Effective Date written on the first page of this Agreement.
	 
	 	16.2	 	UFRF and Licensee hereby warrant and represent that the persons
signing this Agreement have authority to execute this Agreement on behalf of
the party for whom they have signed.
	 
	 	16.3	 	Force Majeure.
	 
	 	 	 	No default, delay, or failure to perform on the part of Licensee or UFRF
shall be considered a default, delay or failure to perform otherwise
chargeable hereunder, if such default, delay or failure to perform is due to
causes beyond either party’s reasonable control including, but not limited
to: strikes, lockouts, or inactions of governmental authorities, epidemics,
war, embargoes, fire, earthquake, acts of God, or default of common carrier.
In the event of such default, delay or failure to perform, any date or
times by which either party is otherwise scheduled to perform shall be
extended automatically for a period of time equal in duration to the time
lost by reason of the excused default, delay or failure to perform.

Section 17. United States Government Interests

 

			
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	 	17.1	 	It is understood that the United States Government (through any
of its agencies or otherwise) has funded research, Grant No. DE-FC36-01G011073,
during the course of or under which any of the inventions of the Licensed
Patents were conceived or made. The United States Government is entitled, as a
right, under the provisions of 35 U.S.C. §202-212 and applicable regulations of
Title 37 of the Code of Federal Regulations, to a non-exclusive,
nontransferable, irrevocable, paid-up license to practice or have practiced the
inventions of such Licensed Patents for governmental purposes. Any license
granted to Licensee in this Agreement shall be subject to such right.
	 
	 	17.2	 	Licensee agrees that for Licensed Products covered by the
Licensed Patents that are subject to the non-exclusive royalty-free license to
the United States Government, said Licensed Products will be manufactured
substantially in the United States. Licensee further agrees that it shall
abide by all the requirements and limitations of U.S. Code, Title 35, Chapter
18, and implementing regulations thereof, for all patent applications and
patents invented in whole or in part with federal money.

Section 18. Confidentiality

	 	18.1	 	Each Party shall maintain all information of the other Party
which is treated by such other Party as proprietary or confidential (referred
to herein as “Confidential Information”) in confidence, and shall not disclose,
divulge or otherwise communicate such confidential information to others, or
use it For any purpose, except pursuant to, and in order to carry out, the
terms and objectives of this Agreement, and each party hereby agrees to
exercise every reasonable precaution to prevent and restrain the unauthorized
disclosure of such confidential information by any of its Affiliates,
directors, officers, employees, consultants, subcontractors, sublicensees or
agents. Licensee’s Confidential Information includes but is not limited to the
Development Plan, Development Reports and all other financial and business
reports, strategies, and agreements (including Sublicenses) of Licensee. The
parties agree to keep the terms of this Agreement confidential, provided that
each party may disclose this Agreement to their authorized agents and investors
who are bound by similar confidentiality provisions. Notwithstanding the
foregoing, Confidential Information of a party shall not include information
which: (a) was lawfully known by the receiving party prior to disclosure of
such information by the disclosing party to the receiving party; (b) was or
becomes generally available in the public domain, without the fault of the
receiving party; (c) is subsequently disclosed to the receiving party by a
third party having a lawful right to make such disclosure; (d) is required by
law, rule, regulation or legal process to be disclosed, provided that the
receiving party making such disclosure shall take all reasonable steps to
restrict and maintain to the extent possible confidentiality of such disclosure
and shall provide

 

			
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	 	 	 	reasonable notice to the other party to allow such party the opportunity to
oppose the required disclosure; or (e) has been independently developed by
employees or others on behalf of the receiving party without access to or
use of disclosing party’s information as demonstrated by written record.
Each party’s obligations under this Section 18 shall extend for a period of
five (5) years from termination or expiration of this Agreement.

Section 19. University Rules and Regulations

	 	19.1	 	Licensee understands and agrees that University of Florida
personnel who are engaged by Licensee, whether as consultants, employees or
otherwise, or who possess a material financial interest in Licensee, are
subject to the University of Florida’s rule regarding outside activities and
financial interests set forth in Florida Administrative Code Rule 6C1-1.011,
the University of Florida’s Intellectual Property Policy, and a monitoring plan
which addresses conflicts of interests associated therewith. Any term or
condition of an agreement between Licensee and such University of Florida
personnel which seeks to vary or override such personnel’s obligations to the
University of Florida may not be enforced against such personnel, the
University of Florida or UFRF, without the express written consent of an
individual authorized to vary or waive such obligations on behalf of the
University of Florida and UFRF. Furthermore, should an interest of Licensee
conflict with the interest of the University of Florida, University of Florida
personnel are obligated to resolve such conflicts according to the guidelines
and policies set forth by the University of Florida.

     IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement on the dates
indicated below.

	 	 	 	 	 

	UNIVERSITY OF FLORIDA RESEARCH FOUNDATION, INC.
	 
	 	 	 	 
	By:

	 	/s/ David L. Day
	 	Date: September 27, 2005
	 

	 	 	 	 
	 

	 	David L. Day	 	 
	 

	 	Director, Office of Technology Licensing	 	 
	 
	 	 	 	 
	BIOENERGY INTERNATIONAL, LLC
	 
	 	 	 	 
	By:

	 	/s/ Stephen J. Gatto
	 	Date: October 3, 2005
	 

	 	 	 	 
	 

	 	Stephen J. Gatto	 	 
	 

	 	Chief Executive Officer	 	 

 

			
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Appendix A — Development Plan

BioEnergy will focus on the development and licensing of biocatalysts for the production of lactic
acid, other organic acids, and specialty chemicals. Unlike currently used biocatalysts which use
glucose as a substrate, BioEnergy seeks to develop biocatalysts that efficiently utilize all of the
sugar constituents found in the carbohydrate polymers of plant biomass.

Research to develop the Licensed Patents and Licensed Process will be initially conducted in
collaboration with Dr. Lonnie Ingram. It is BioEnergy’s plan to expand this research effort in the
future, and to develop a complementary in-house research team at the Sid Martin Biotechnology
Institute for commercial testing. Our research efforts will be divided into two areas due in part
to the differences in potential commercial market: I) Lactic acid biocatalysts, and 2) Biocatalysts
for Organic Acids and Specialty Chemicals. Development of the Licensed Patent addresses the later
of the two research areas.

Research Plan for Other Organic Acids and Specialty Chemicals

The initial focus of this work will be to genetically modify the backbone of metabolism to create
an E coli B pre-biocatalyst that can be tailored to the production of individual products.
Although some of the mutations we need have been engineered into a K-12 strain of E. coli, K-12
strains are less robust than derivatives of strain B and K-12 strains have defects which prevent
efficient use of xylose. UF work in this area will accelerate as the Sponsor Program Agreement
increases and as task for lactate are completed. Work on lactate will take precedence initially.
It is hoped that many of the lessons learned with lactate will reduce efforts needed for success
with these new products.

Year I.

	 	1.	 	Develop pre-biocatalyst in E. coli B that lacks all terminal fermentation
pathways and lacks the ability to produce ATP by oxidative phosphorylation.

Year II.

	 	1.	 	Modify pre-biocatalyst for the production of a single product. We select
pyruvic acid as the initial product, a sugar alcohol would be a close second.
	 
	 	2.	 	Evaluate yields and rates with laboratory sugars.
	 
	 	3.	 	Evaluate Stability

Year III

	 	4.	 	Develop strains that can efficiently convert industrial sugar sources.
	 
	 	5.	 	Develop room temperature storage methods for biocatalyst inocula.
	 
	 	6.	 	Explore the use of continuous culture or cell recycle on productivity and yield
with pure sugars and with promising industrial substrates.

 

			
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Appendix B — Development Report

When appropriate, indicate estimated start date and finish date for activities.

	I.	 	Date Development Plan Initiated and Time Period Covered by this Report.
	 
	II.	 	Development Report (4-8 paragraphs).

	 	A.	 	Activities completed since last report including the object and parameters of
the development, when initiated, when completed and the results.
	 
	 	B.	 	Activities currently under investigation, i.e., ongoing activities including
object and parameters of such

	III.	 	Future Development Activities (4-8 paragraphs).

	 	A.	 	Activities to be undertaken before next report including, but not limited to,
the type and object of any studies conducted and their projected starting and
completion dates.
	 
	 	B.	 	Estimated total development time remaining before a product will be
commercialized.

	IV.	 	Changes to Initial Development Plan (2-4 paragraphs).

	 	C.	 	Reasons for change.
	 
	 	D.	 	Variables that may cause additional changes.

	V.	 	Items to be Provided if Applicable:

	 	E.	 	Information relating to Licensed Products that has become publicly available,
e.g., published articles, competing products, patents, etc.]
	 
	 	F.	 	Development work being performed by third parties, other than Licensee, to
include name of third party,
	 
	 	G.	 	Update of competitive information trends in industry, government compliance (if
applicable) and market plan.
	 
	 	H.	 	Information and copies of relevant materials evidencing the status of any
patent applications or other protection relating to Licensed Products or the Licensed
Patents.

 

			
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PLEASE SEND DEVELOPMENT REPORTS TO:

University of Florida Research Foundation, Inc.

Attn: Director

308 Walker Hall

P.O. Box 115500

Gainesville, FL 32611-5500

Facsimile: 352-392-6600

 

			
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Appendix C — UFRF Royalty Report

	 	 	 

	Licensee:         
                    
                    
           

	 	Agreement No:           
                    
                  
           

	Inventor:        
                     
                    
           

	 	P#:              
                    
               
                    
           

	Period Covered:         From:   
                        
           

	 	Through:          
                   
                    
           

	Prepared By    
                  
                     
           

	 	Date:           
              
              
              
           

	Approved By:        
              
                     
           

	 	Date:          
                  
                     
           

If license covers several major product lines, please prepare a separate report

for each line. Then combine all product lines into a summary report.

	 	 	 	 	 

	Report Type:

	 	o
	 	Single Product Line Report:
              
                
                        
                
          
	 
	 	 	 	 
	 

	 	o
	 	Multiproduct Summary Report. Page 1 of ________ Pages
	 
	 	 	 	 
	 

	 	o
	 	Product Line Detail. Line:______ Tradename:______ Page:_____
	 
	 	 	 	 
	Report Currency:

	 	o
	 	U.S. Dollars o Other
              
                 
                       
                
          

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Unit	 	Gross	 	* Less:	 	Net	 	Royalty	 	Period Royalty Amount
	Country	 	Sales	 	$$ Sales	 	Allowances	 	$$ Sales	 	Rate	 	This Year	 	Last Year
	U.S.A.
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Canada
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Europe
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Japan
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Other:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 

Total Royalty:                     Conversion Rate:                     Royalty in U.S. Dollars: $                       
                                     

The following royalty forecast in non-binding and for UFRF’s internal planning purposes only:

Royalty Forecast Under This Agreement: Next Quarter:_____ Q2:_____ Q3:_____ Q4:_____

*On a separate page, please indicate the reasons for returns or other adjustments if significant.

Also note any unusual occurrences that affected royalty amounts during this period.

To assist UFRF’s forecasting, please comment on any significant expected trends in sales volume.

 

			
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Appendix D — Milestones

In addition to the research milestones described in Appendix A, the following milestones shall be
completed by the Licensee.

	1.	 	Licensee has already provided UFRF a preliminary business plan, dated April, 2005. By August
1, 2008, Licensee will provide UFRF a detailed document covering Licensee’s plans as to
projected product development, markets and sales forecasts, manufacturing and operations, and
financial forecasts until at least $[...***...] in revenues are achieved (“Business Plan”).
UFRF will treat this Business Plan as confidential information and to protect it as UFRF would
its own confidential information.
	 
	2.	 	By December 1, 2005, Licensee will provide to UFRF a listing of the management team or a
schedule for the recruitment of key management positions.
	 
	3.	 	By December 1, 2008, Licensee will make a prototype / begin animal studies.
	 
	4.	 	By August 1, 2010, Licensee will have a first sale of Licensed Product.
	 
	5.	 	Licensee or a sublicense must sell at least one Licensed Product every six months after the
date of first sale of a Licensed Product.

 

			
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Exhibit 10.28

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Confidential Treatment Requested

Under 17 C.F.R. §§ 200.80(b)(4)

and 203.406

STANDARD EXCLUSIVE LICENSE AGREEMENT

Agreement No: A10176

TABLE OF CONTENTS

Section 1 Definitions

Section 2 Grant

Section 3 Due Diligence

Section 4 Payments

Section 5 Certain Warranties and Disclaimers of UFRF

Section 6 Record Keeping

Section 7 Patent Prosecution

Section 8 Infringement and Invalidity

Section 9 Term and Termination

Section 10 Assignability

Section 11 Dispute Resolution Procedures

Section 12 Product Liability; Conduct of Business

Section 13 Use of Names

Section 14 Miscellaneous

Section 15 Notices

Section 16 Contract Formation and Authority

Section 17 United States Government Interests

Section 18 Confidentiality

Section 19 University Rules and Regulations

Appendix A — Development Plan

Appendix B — Development Report

Appendix C — UFRF Royalty Report

Appendix D — Milestones

     This Agreement is made effective the 15th day of June 2011, (the “Effective Date”) by and
between the University of Florida Research Foundation, Inc. (hereinafter called “UFRF”), a
nonstock, nonprofit Florida corporation, and Myriant Technologies Inc. (hereinafter called
“Licensee”), a small entity corporation organized and existing under the laws of Delaware and
having its principal office at 2 Batterymarch Park, Suite 301, Quincy, MA 02169 (the “Agreement”);
UFRF and Licensee are referred individually as Party and collectively as Parties;

     WHEREAS, UFRF owns certain inventions that are described in the “Licensed Patents” defined
below, and UFRF is willing to grant a license to Licensee under any one or all of the Licensed
Patents and Licensee desires a license under all of them;

     NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth below, the
Parties covenant and agree as follows:

 

			
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Section 1 Definitions

	 	1.1	 	“Licensed Patents” means all of the following UFRF intellectual property:

	 	1.1.1	 	the United States Provisional Patent Application
number 61/416,002 entitled “Engineering Thermotolerant Bacillus coagulans
for Production of D(-)-Lactic Acid” filed in the United States Patent and
Trademark Office on November 22, 2010 and applications based on this
United States Provisional Application;
	 
	 	1.1.2	 	any and all United States and foreign patent
applications claiming priority to any of the patent(s) and patent
application(s) identified in Section 1.1.1, and
	 
	 	1.1.3	 	any and all patents issuing from the patent
applications identified in Section 1.1.1 and 1.1.2, including, but not
limited to, letters patents, patents of addition, divisionals,
continuations, reissues, re-examinations, extensions, restorations, and
supplementary protection certificates;
	 
	 	 	 	all to the extent owned or controlled by the University of Florida.

	 	1.2	 	“Licensed Product” and “Licensed Process” means:

	 	1.2.1	 	In the case of a Licensed Product, any product or
part thereof, on a country-by-country basis, that:

	 	(a)	 	is covered in whole or in part by an
issued, unexpired claim or a pending claim contained in the
Licensed Patents, in any country in which such product is made,
used, imported or sold; or
	 
	 	(b)	 	is manufactured by using a process
which is covered in whole or in part by an issued, unexpired claim
or a pending claim contained in the Licensed Patents, in any
country in which any such process is used or in which any such
product is used, imported or sold.

	 	1.2.2	 	In the case of a Licensed Process, any process, on
a country-by-country basis:

	 	(a)	 	which is covered in whole or in part
by an issued, unexpired claim or a pending claim contained in the
Licensed Patents in any country in which such process is
practiced.

	 	1.3	 	“Net Sales” means the total dollar amount invoiced on sales of
Licensed Product and/or Licensed Processes by Licensee or Sublicensee after
deducting, if not already deducted in the amount invoiced;

	 	•	 	Trade and/or quantity discounts
	 
	 	•	 	Credits on returns and allowances
	 
	 	•	 	Outbound transportation costs paid

	 	 	 	“Net Sales” shall not include the transfer of reasonable quantities of a
Licensed Product to an Affiliate or Third Party for promotional purposes
without charge. For the purpose of calculations of royalty payment, the Net
Sales is not determined on the basis of output from the individual plants but
it is based on the aggregated annual production of Licensed Product from all
the manufacturing plants owned and, or operated either by Licensee or
Sublicensee(s) throughout the world during that year.

 

			
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	 	1.4	 	“Permitted Deductions” means: (i) funds received as consideration for
equity purchases of Licensee’s securities by a Sublicensee at the fair market value
of such equities, (ii) payments received by Licensee from any Sublicensee for
purposes of paying Licensee for any future research requested by the Sublicensee,
for development, testing, or engineering services actually undertaken by or for
Licensee related to any Licensed Product or Licensed Process. For greater clarity,
payment by a Sublicensee for future research expenses incurred by or for Licensee
after the Effective Date for research which has not been requested by Sublicensee
and has been conducted by Licensee as Licensee’s diligent pursuit of the Licensed
Patents shall not be considered a Permitted Deduction.
	 
	 	1.5	 	“Affiliate” means: (a) any person or entity which controls at
least fifty percent (50%) of the equity or voting stock of the Licensee or (b)
any person or entity fifty percent (50%) of whose equity or voting stock is owned
or controlled by the Licensee or (c) any person or entity of which at least fifty
percent (50%) of the equity or voting stock is owned or controlled by the same
person or entity owning or controlling at least fifty percent (50%) of Licensee
or (d) any entity in which any officer or employee is also an officer or employee
of Licensee or any person who is an officer or employee of Licensee.
	 
	 	1.6	 	“Patent Challenge” means a challenge to the validity,
patentability, and/or enforceability of any of the Licensed Patents or otherwise
opposing any of the Licensed Patents.
	 
	 	1.7	 	“Sublicense” means, directly or indirectly, to sublicense, grant
any other right with respect to, or agree not to assert, any right licensed to
Licensee under this Agreement.
	 
	 	1.8	 	“Sublicensee” means any Affiliate or Third Party to whom Licensee
grants a Sublicense.
	 
	 	1.9	 	“Development Plan” means a written report summarizing the
development activities that are to be undertaken by the Licensee to bring
Licensed Products and/or Licensed Processes to the market. The Development Plan
is attached as Appendix A.
	 
	 	1.10	 	“Development Report” means a written account of Licensee’s
progress under the Development Plan having at least the information specified on
Appendix B to this Agreement, and shall be sent to the address specified on
Appendix B.
	 
	 	1.11	 	“Licensed Field” shall mean the practice of the Licensed Process
for the production of lactic acid and all of its derivatives thereof and the use
of lactic acid and its derivatives for all purposes..
	 
	 	1.12	 	“Third Party” shall mean any person or entity other than a Party to
this Agreement or an Affiliate of a Party to this Agreement.
	 
	 	1.13	 	“Licensed Territory” shall be worldwide.

Section 2 Grant

	 	2.1	 	License

	 	2.1.1	 	License under Licensed Patents

	 	 	 	Subject to the terms of this agreement, UFRF hereby grants to Licensee a
royalty-bearing,

 

			
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	 	 	 	exclusive license, limited to the Licensed Field and the
Licensed Territory, under the Licensed Patents to make, have made, develop, use,
lease, import, export, offer to sell, sell and have sold Licensed Products and
Licensed Processes. This grant of exclusive license shall allow the making,
using and selling of Licensed Products and/or Licensed Processes by tolling
facilities owned and operated by Third Parties under a written agreement with
the Licensee or Sublicensee(s). UFRF reserves to itself and the University of
Florida the right under the Licensed Patents to make, have made, develop, import
and use Licensed Products and Licensed Processes solely for their internal
research, clinical and educational purposes. In addition, UFRF reserves to
itself, as well as to the University of Florida and to all non-profit research
institutions (which other non-profit research institutions shall have no right
to grant further Sublicenses), the right to use materials that might be covered
under Licensed Patents solely for their internal research, educational, and
clinical purposes and to meet all applicable governmental requirements governing
the ability to transfer materials.
	 
	 	2.2	 	Sublicense

	 	2.2.1	 	Licensee may grant written Sublicenses to Affiliates
on prior notice to UFRF. Licensee may grant written Sublicense to Third
Parties subject to UFRF prior review and consent which review and consent
shall not be unreasonably withheld or delayed. However, Licensee shall
notify UFRF of the initiation of license negotiations with all potential
Sublicensees. Any agreement granting a Sublicense shall state that the
Sublicense is subject to the terms and condition of this Agreement and to
the termination of this Agreement. Licensee shall have the same
responsibility for the activities of any Sublicensee or Affiliate as if the
activities were directly those of Licensee. Licensee shall also include
provisions in all Sublicenses to provide that in the event that Sublicensee
brings a Patent Challenge against UFRF or assists another party in bringing
a Patent Challenge against UFRF (except as required under a court order or
subpoena) then Licensee may terminate the rights of Sublicensee with
respect to the Licensed Patent that is the subject of the Patent Challenge
within thirty (30) days.
	 
	 	2.2.2	 	In respect to Sublicenses granted by Licensee under
Section 2.2.1, Licensee shall pay a royalty on Net Sales according to
Section 4.3. In addition, Licensee shall pay UFRF (subject to Permitted
Deductions provided that fair and commercially reasonable Sublicense fees
are paid to UFRF in conjunction with such transaction) [...***...] of any
fees or other payments in consideration for any rights granted under a
sublicense and such payments are not based directly upon the amount or
value of Licensed Products sold by Sublicensee (Fees) up to [...***...];
[...***...] of any Fees between [...***...] and [...***...]; and
[...***...] of Fees above [...***...]. Licensee shall not receive from
Sublicensee anything of value in lieu of cash payments in consideration for
any Sublicense under this Agreement without the express prior written
permission of UFRF.
	 
	 	2.2.3	 	Licensee shall provide UFRF with a final unredacted
copy of each Sublicense agreement and any agreement which transfers
intellectual property rights granted hereunder, within thirty (30) days
after the execution of the Sublicense agreement and further agrees to
forward to UFRF annually a copy of such reports received by Licensee from
its Sublicensees pertinent to the payments under said Sublicense
agreements.

 

			
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	 	2.2.4	 	If Licensee is either unable or unwilling to serve or
develop a potential market or market territory for which there is a company
willing to be a Sublicensee, Licensee will, at UFRF’s request, negotiate in
good faith a Sublicense with any such Sublicensee.
	 
	 	2.2.5	 	If (i) Licensee or any of its Affiliates brings a
Patent Challenge against UFRF, or (ii) Licensee or any of its Affiliates
assists another party in bringing a Patent Challenge against UFRF (except
as required under a court order or subpoena), and (iii) UFRF does not
choose to exercise its rights to terminate this Agreement pursuant to
Section 9.3 then, in the event that such a Patent Challenge is successful,
Licensee will have no right to recoup any consideration, including
royalties, paid during the period of challenge.
	 
	 	2.2.6	 	In the event that a Patent Challenge is unsuccessful,
Licensee shall reimburse UFRF for all reasonable legal fees and expenses
incurred in its defense against the Patent Challenge.

Section 3 Due Diligence

	 	3.1	 	Development

	 	3.1.1	 	Licensee agrees to and warrants that:

	 	(a)	 	it has, or will obtain, the expertise
necessary to independently evaluate the inventions of the Licensed
Patents;
	 
	 	(b)	 	it will establish and actively and
diligently pursue the Development Plan (see Appendix A ) to the
end that the inventions of the Licensed Patents will be utilized
to provide Licensed Products and/or Licensed Processes for sale in
the retail market within the Licensed Field;
	 
	 	(c)	 	it will diligently develop markets
for Licensed Products and Licensed Processes;
	 
	 	(d)	 	and, until the date of first
commercial sale of Licensed Products or Licensed Processes, it
will supply UFRF with a written Development Report annually
fifteen (15) days after the end of the calendar year (see Appendix
B ).

	 	3.1.2	 	Licensee agrees that the first commercial sale of
products to the retail customer shall occur on or before May 31, 2016 or
UFRF shall have the right to terminate the Agreement pursuant to Section
9.3 hereto. In addition, Licensee will meet the milestones shown in
Appendix D or UFRF shall have the right to terminate the Agreement
pursuant to Section 9.3. Licensee will notify UFRF in writing as each
milestone is met.
	 
	 	3.1.3	 	Licensee agrees that three years after the
Effective Date of this Agreement the Licensee will have achieved one of
the following milestones: a) Completion of at least one Sublicense for
rights under the Licensed Patents or Licensed Process or b) Production of
10 Kilogram sample quantities of the Licensed Products by the Licensee.
If neither of these milestones is met by the License, then the Licensee
shall pay UFRF [...***...] for a one-time, non-refundable, 2-year
extension to meet either milestone. Failure to meet either milestone
after the 2-year extension is a material breach of this Agreement and
grounds for termination pursuant to Section 9.3 hereto.

 

			
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	 	3.1.4	 	Upon written request by Licensee to negotiate
extensions of any milestones or due dates set forth in Appendix D, such
request to be received by UFRF no less than ninety (90) days prior to any
of the due dates subject of such request, set forth in this Section
3.1.4, such request fully describing Licensee’s diligent efforts to
achieve the milestone required to be met by such due date, UFRF shall
consider in good faith such requests. Upon granting such request, UFRF
and Licensee shall negotiate such extensions in good faith.

Section 4 Payments

	 	4.1	 	License Issue Fee
	 
	 	 	 	Licensee agrees to pay to UFRF a license issue fee of three thousand dollars
($3,000), within thirty (30) days of the Effective Date.
	 
	 	4.2	 	Annual License Maintenance Fee
	 
	 	 	 	Licensee will pay an annual license maintenance fee of [...***...], each year on
the anniversary of the Effective Date of this Agreement. The annual license
maintenance fee is payable until the first commercial sale of a Licensed Product
or Licensed Process, after which time minimum royalties instead of the annual
license maintenance fee will be due.
	 
	 	4.3	 	Royalty

	 	4.3.1	 	Royalty on Licensed Patents: Licensee agrees to
pay to UFRF as earned royalties a royalty calculated as a percentage of
Net Sales of Licensed Products which, if not for this Agreement, would
infringe Licensed Patents. The royalty is deemed earned as of the
earlier of the date the Licensed Product and or Licensed Process is
actually sold and paid (or the date an invoice is sent by Licensee or its
Sublicensee(s). If the License Product and/or Licensed Process is sold
by the Licensee the royalty shall remain fixed while this Agreement is in
effect at the following rates based on the aggregate annual production of
Licensed Products for all manufacturing by or on behalf of Licensee and
Sublicensee(s): [...***...] of aggregate Net Sales for the first
[...***...] pounds of Licensed Product sold in a calendar year;
[...***...] of aggregate Net Sales between [...***...] and [...***...]
pounds of Licensed Product during each calendar year and [...***...] of
aggregate Net Sales over [...***...] pounds of Licensed Product during
each calendar year.
	 
	 	4.3.2	 	Amounts owing to UFRF under Sections 4.3 and 4.4
shall be paid on a quarterly basis with such amounts due and received by
UFRF on or before the thirtieth (30th) day following the end
of the calendar quarter ending on March 31, June 30, September 30 or
December 31 in which such amounts were earned.

	 	4.4	 	Minimum Royalty

	 	4.4.1	 	Licensee agrees to pay UFRF minimum royalty payments, as follows:

 

			
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	Payment	 	 	Year	 	 
	$[...***...] 

	 	 	2017	 	 	(or second year of commercial sales)
	$[...***...] 

	 	 	2018	 	 	 
	$[...***...] 

	 	 	2019	 	 	 
	$[...***...] 

	 	 	2020	 	 	and every year thereafter for the life of this Agreement.

	 	4.4.2	 	The initiation of the annual minimum royalty
payment will eliminate the need for the License Maintenance Fee due under
Section 4.2.
	 
	 	4.4.3	 	The minimum royalty shall be paid in advance on a
quarterly basis on March 31, June 30, September 30, and December 31 for
the following quarters, for each year in which this Agreement is in
effect. Any minimum royalty paid in a calendar year will be credited
against the earned royalties for that calendar year. It is understood
that the minimum royalties will be applied to earned royalties on a
calendar year basis, and that sales of Licensed Products and/or Licensed
Processes requiring the payment of earned royalties made during a prior
or subsequent calendar year shall have no effect on the annual minimum
royalty due UFRF for other than the same calendar year in which the
royalties were earned.

	 	4.5	 	Milestone Payments
	 
	 	 	 	Licensee agrees to pay UFRF milestone payments within thirty (30) days of the
first achievement of such milestone, as follows:

	 	 	 	 	 
	Event	 	Due Date	 	Payment
	Issuance of US Patent

	 	 	 	$[...***...] 
	Pilot scale production of Licensed Product

	 	 	 	$[...***...] 
	First Commercial Sale

	 	May 31, 2016
	 	$[...***...] 

	 	4.6	 	Sublicense Fees
	 
	 	 	 	Licensee shall pay Sublicense fees to UFRF per Section 2.2.2 of this Agreement
within thirty days (30) of the receipt of any such fees from Sublicensee.
	 
	 	4.7	 	Accounting for Payments

	 	4.7.1	 	Any amounts which remain unpaid
after the date they are due to UFRF under this Section 4, Section
2, Section 7 or any other section of this Agreement shall accrue
interest from the due date at the rate of [...***...] per month.
However, in no event shall this interest provision be construed as
a grant of permission for any payment delays. Licensee shall also
be responsible for repayment to UFRF of any attorney, collection
agency, or other out-of-pocket UFRF expenses required to collect
overdue payments due from this Section 4, Section 4, Section 7 or
any other applicable section of this Agreement.
	 
	 	4.7.2	 	All amounts owing to UFRF under this
Agreement shall be paid in U.S. dollars to UFRF at the following
address:

University of Florida Research Foundation, Inc.

223 Grinter Hall

 

			
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PO Box 115500

Gainesville, Florida 32611-5500

Attention: Business Manager

	 	 	 	All monies owing stated in currencies other than U.S. dollars
shall be converted at the rate shown in the Federal Reserve Noon
Valuation — Value of Foreign Currencies on the day preceding the
payment due date.
	 
	 	4.7.3	 	A certified full accounting
statement showing how any amounts payable to UFRF under Section 4
have been calculated shall be submitted to UFRF on the date of
each such payment. In addition to being certified, such
accounting statements shall contain a written representation
signed by an executive officer of Licensee that states that the
statements are true, accurate, and fairly represent all amounts
payable to UFRF pursuant to this Agreement. Such accounting shall
be on a per-country and product line, model or trade name basis
and shall be summarized on the form shown in Appendix C—UFRF
Royalty Report of this Agreement.
	 
	 	4.7.4	 	In the event no payment is owed to
UFRF because the amount of minimum royalties paid has not been
exceeded or otherwise, an accounting demonstrating that fact shall
be supplied to UFRF.
	 
	 	4.7.5	 	UFRF is exempt from paying income
taxes under U.S. law. Therefore, all payments due under this
Agreement shall be made without deduction for taxes, assessments,
or other charges of any kind which may be imposed on UFRF by any
government outside of the United States or any political
subdivision of such government with respect to any amounts payable
to UFRF pursuant to this Agreement. All such taxes, assessments,
or other charges shall be assumed by Licensee.

Section 5 Certain Warranties and Disclaimers of UFRF

	 	5.1	 	UFRF warrants that, except as otherwise provided under Section 17.1
of this Agreement with respect to U.S. Government interests, it is the owner of
the Licensed Patents or otherwise has the right to grant the licenses granted to
Licensee in this Agreement. However, nothing in this Agreement shall be
construed as:

	 	5.1.1	 	a warranty or representation by UFRF as to the
validity or scope of any right included in the Licensed Patents;
	 
	 	5.1.2	 	a warranty or representation that anything made,
used, sold or otherwise disposed of under the license granted in this
Agreement will or will not infringe patents of Third Parties;
	 
	 	5.1.3	 	an obligation to bring or prosecute actions or
suits against Third Parties for infringement of Licensed Patents;
	 
	 	5.1.4	 	an obligation to furnish any know-how not provided
in Licensed Patents or any services other than those specified in this
Agreement; or

 

			
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	 	5.1.5	 	a warranty or representation by UFRF that it will
not grant licenses to others to make, use or sell products not covered by
the claims of the Licensed Patents which may be similar and/or compete
with products made or sold by Licensee.

	 	5.2	 	EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT, UFRF
MAKES NO REPRESENTATIONS AND EXTENDS NO WARRANTIES OF ANY KIND, EITHER EXPRESS OR
IMPLIED, INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY, FITNESS FOR
A PARTICULAR PURPOSE, AND VALIDITY OF PATENT RIGHTS CLAIMS, ISSUED OR PENDING.
UFRF ASSUMES NO RESPONSIBILITIES WHATSOEVER WITH RESPECT TO USE, SALE, OR OTHER
DISPOSITION BY LICENSEE, ITS SUBLICENSEE(S), OR THEIR VENDEES OR OTHER
TRANSFEREES OF PRODUCT INCORPORATING OR MADE BY USE OF INVENTIONS LICENSED UNDER
THIS AGREEMENT.

Section 6 Record Keeping

	 	6.1	 	Licensee and its Sublicensee(s) shall keep books and records
sufficient to verify the accuracy and completeness of Licensee’s and its
Sublicensee(s)’s accounting referred to above, including without limitation,
inventory, purchase and invoice records, manufacturing records, sales analysis,
general ledgers, financial statements, and tax returns relating to the Licensed
Products and/or Licensed Processes. Such books and records shall be preserved
for a period not less than six years after they are created or as required by
federal law, both during and after the term of this Agreement.
	 
	 	6.2	 	Licensee and its Sublicensee(s) shall take all steps necessary so
that UFRF may, within thirty (30) days of its written request, audit, review
and/or copy all of the books and records at a single U.S. location to verify the
accuracy of Licensee’s and its Sublicensee(s)’s accounting. Such review may be
performed by any authorized employees of UFRF as well as by any attorneys and/or
accountants designated by UFRF, upon reasonable notice and during regular
business hours. If a deficiency with regard to any payment hereunder is
determined, Licensee and its Sublicensee(s) shall pay the deficiency within
thirty (30) days of receiving notice thereof along with applicable interest as
described in Section 4.7. If a royalty payment deficiency for a calendar year
exceeds three percent (3%) of the royalties paid for that year, then Licensee and
its Sublicensee(s) shall be responsible for paying UFRF’s out-of-pocket expenses
incurred with respect to such review.
	 
	 	6.3	 	At any time during the term of this agreement, UFRF may request in
writing that Licensee verify the calculation of any past payments owed to UFRF
through the means of a self-audit. Within ninety (90) days of the request,
Licensee shall complete a self-audit of its books and records to verify the
accuracy and completeness of the payments owed. Within thirty (30) days of the
completion of the self-audit, Licensee shall submit to UFRF a report detailing
the findings of the self-audit and the manner in which it was conducted in order
to verify the accuracy and completeness of the payments owed. If Licensee has
determined through its self-audit that there is any payment deficiency, Licensee
shall pay UFRF the deficiency along with applicable interest under Section 4.7
with the submission of the self-audit report to UFRF.

Section 7 Patent Prosecution

 

			
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	 	7.1	 	UFRF shall prosecute and maintain the Licensed Patents using
counsel of its choice. UFRF shall provide Licensee with copies of all documents
sent to and received from the United States Patent and Trademark Office and
foreign patent offices relating to Licensed Patents. Licensee agrees to keep
such information confidential.
	 
	 	7.2	 	Licensee shall pay to UFRF any and all expenses associated with
preparation, filing, prosecution, issuance, maintenance, defense, and reporting
of the Licensed Patents incurred prior to the Effective Date.
	 
	 	7.3	 	Licensee shall be responsible for and pay all costs and expenses
incurred by UFRF related to the preparation, filing, prosecution (including
interferences), issuance, maintenance, defense (including oppositions) and
reporting of the Licensed Patents subsequent to and separate of those expenses
cited in Section 7.2 within thirty (30) days of receipt of an invoice from UFRF.
It shall be the responsibility of Licensee to keep UFRF fully apprised of the
“small entity” status of Licensee and all Sublicensees with respect to the U.S.
patent laws and with respect to the patent laws of any other countries, if
applicable, and to inform UFRF of any changes in writing of such status, within
thirty (30) days of any such change. In the case of foreign patent protection,
if Licensee gives sixty (60) days notice that it intends to decline to reimburse
UFRF for patent expenses for any Licensed Patent in any particular country, then
the license granted hereunder respecting such Licensed Patent shall terminate
after such sixty (60) days and Licensee relinquishes the right to commercialize
Licensed Products in the specified country.

Section 8 Infringement and Invalidity

	 	8.1	 	Licensee shall inform UFRF promptly in writing of any alleged
infringement of the Licensed Patents by a Third Party and of any available
evidence thereof.
	 
	 	8.2	 	During the term of this Agreement, UFRF shall have the right, but
shall not be obligated, to prosecute at its own expense any such infringements of
the Licensed Patents. If UFRF prosecutes any such infringement, Licensee agrees
that UFRF may include Licensee as a co-plaintiff in any such suit, without
expense to Licensee.
	 
	 	8.3	 	UFRF shall diligently strive to make a decision on whether UFRF
will bring an infringement action against the alleged infringer within thirty
(30) days of being notified of any alleged infringement. If within seventy five
(75) days after having been notified of any alleged infringement, UFRF shall have
been unsuccessful in persuading the alleged infringer to desist and shall not
have brought an infringement action against the alleged infringer, or if UFRF
shall notify Licensee at any time prior thereto of its intention not to bring
suit against the alleged infringer, then, and in those events only, Licensee
shall have the right, but shall not be obligated, to prosecute at its own expense
any infringement of the Licensed Patents, and Licensee may, for such purposes,
use the name of UFRF as party plaintiff. No settlement, consent judgment or other
voluntary final disposition of the suit may be entered into without the consent
of UFRF, which consent shall not be unreasonably withheld. Licensee shall
indemnify UFRF against any order for costs that may be made against UFRF in such
proceedings.
	 
	 	8.4	 	In the event that a declaratory judgment action is brought against
UFRF or Licensee by a Third Party alleging invalidity, unpatentability,
unenforceability, or non-infringement of the Licensed Patents, UFRF, at its
option, shall have the right within twenty (20) days after commencement of such
action to take over the sole defense of the action at its own

 

			
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	 	 	 	expense. If UFRF does not exercise this right, and assuming that Licensee is
the sole licensee of the Licensed Patents, Licensee shall have the right, but
shall not be obligated to take over the sole defense of the action at
Licensee’s sole expense, subject to Sections 8.5 and 8.6.

	 	8.5	 	In the event that Licensee shall undertake the enforcement by
litigation and/or defense of the Licensed Patents by litigation, UFRF shall have
the right, but not the obligation, to voluntarily join such litigation,
represented by its own counsel at its own expense. Any recovery of damages by
Licensee for any such suit shall be applied first in satisfaction of any
reimbursed expenses and legal fees of Licensee relating to the suit, and next
toward reimbursement of UFRF for any legal fees, and unreimbursed expenses. The
balance remaining from any such recovery shall be divided in the ratio of
[...***...]% to Licensee and [...***...]% to UFRF. In the event that UFRF shall
undertake the enforcement by litigation and/or defense of the Licensed Patents by
litigation, any recovery of damages by UFRF for any such suit shall be applied
first in satisfaction of any reimbursed expenses and legal fees of UFRF relating
to the suit, and next toward reimbursement of Licensee for any legal fees, and
unreimbursed expenses. The balance remaining from any such recovery shall be
divided in the ratio of [...***...]% to UFRF and [...***...]% to Licensee.
	 
	 	8.6	 	In any suit in which either Party is involved to enforce or defend
the Licensed Patents pursuant to this Agreement, the other Party hereto shall, at
the request and expense of the Party initiating such suit, cooperate in all
respects and, to the extent possible, have its employees testify when requested
and make available relevant records, papers, information, samples, specimens, and
the like.
	 
	 	8.7	 	In the event Licensee contests the validity of any Licensed
Patents, unless and until UFRF terminates this Agreement pursuant to Section
9.3.9, Licensee shall continue to pay royalties and make other payments pursuant
to this Agreement with respect to that patent as if such contest were not
underway until the patent is adjudicated invalid or unenforceable by a court of
last resort.

Section 9 Term and Termination

	 	9.1	 	The term of this license shall begin on the Effective Date of this
Agreement and continue until the date that no Licensed Patent remains an
enforceable patent.
	 
	 	9.2	 	Licensee may terminate this Agreement at any time by giving at
least sixty (60) days written notice of such termination to UFRF. Such a notice
shall be accompanied by a statement of the reasons for termination.
	 
	 	9.3	 	UFRF may terminate this Agreement by giving Licensee at least
thirty (30) days written notice if Licensee:

	 	9.3.1	 	is delinquent on any report or payment
	 
	 	9.3.2	 	is not diligently developing and commercializing
Licensed Products and Licensed Processes
	 
	 	9.3.3	 	is in breach of any provision

 

			
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	 	9.3.4	 	provides any false report
	 
	 	9.3.5	 	goes into bankruptcy, liquidation or proposes
having a receiver control any assets
	 
	 	9.3.6	 	violates any laws or regulations of applicable
government entities; or
	 
	 	9.3.7	 	shall cease to carry on its business pertaining to
Licensed Patents
	 
	 	9.3.8	 	if payments of earned royalties under Section 4.4
once begun, ceases for more than two (2) calendar quarters.
	 
	 	9.3.9	 	Termination under this Section 9.3 will take
effect thirty (30) days after written notice by UFRF unless Licensee
remedies the problem in that thirty (30) day period.

	 	9.4	 	If Licensee or any of its Affiliates brings a Patent Challenge
against UFRF, or assists others in bringing a Patent Challenge against UFRF
(except as required under a court order or subpoena), then UFRF may immediately
terminate Licensee’s rights under this Agreement with respect to the Licensed
Patent that is the subject of the Patent Challenge. If a Sublicensee brings a
Patent Challenge or assists another party in bringing a Patent Challenge (except
as required under a court order or subpoena), then UFRF may send a written demand
to Licensee to terminate such Sublicense with respect to such Licensed Patent.
Failure by Licensee to do so shall be deemed to constitute a material breach of
this Agreement.
	 
	 	9.5	 	UFRF may immediately terminate this Agreement upon the occurrence
of the second separate default by Licensee within any consecutive three-year
period for failure to pay royalties, patent or any other expenses when due.
	 
	 	9.6	 	Upon the termination of this Agreement for any reason, nothing
herein shall be construed to release either Party from any obligation that
matured prior to the effective date of such termination. Licensee shall remain
obligated to provide an accounting for and to pay royalties earned to the date of
termination, and any minimum royalties shall be prorated as of the date of
termination by the number of days elapsed in the applicable calendar year.
Licensee may, however, after the effective date of such termination, sell all
Licensed Products, and complete Licensed Products in the process of manufacture
at the time of such termination and sell the same, provided that Licensee shall
remain obligated to provide an accounting for and to pay running royalties
thereon.
	 
	 	9.7	 	Licensee shall be obligated to deliver to UFRF, within ninety (90)
days of the date of termination of this agreement, complete and unredacted copies
of all documentation prepared for or submitted for all regulatory approvals of
Licensed Products or Licensed Processes.
	 
	 	9.8	 	Upon termination of this Agreement for any reason, any
Sublicensee(s) not then in default, as determined by UFRF, shall receive from
UFRF a grant similar in scope as the grant set forth in the Sublicense agreement
with the Licensee and all other rights in the Sublicense agreement reasonably
necessary to continue the business of such Sublicensee, except that UFRF shall be
under no obligation to grant any rights which UFRF does not have or perform any
services for which it is unsuited. All payments required to be made by such
Sublicensee shall, from the date of termination of this Agreement, be paid to
UFRF.

 

			
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Section 10 Assignability

	 	 	This Agreement may be transferred or assigned by Licensee to an Affiliate of Licensee
on prior notice to UFRF; provided, however, that Licensee shall remain liable to UFRF
for the performance by such Affiliates of its obligations hereunder. The agreement
may not be transferred or assigned to a Third Party by Licensee except with the prior
written consent of UFRF and UFRF will not withhold such a written consent
unreasonably. Licensee will provide to UFRF a copy of any documents that assign its
rights and obligations to an Affiliate or another entity and any documents detailing
compensation received by Licensee for any assignment of UFRF’s rights to an Affiliate
or another entity. Copies of all relevant documents will be provided to UFRF within
sixty (60) days of execution or UFRF may terminate this Agreement according to
Section 9.3.

Section 11 Dispute Resolution Procedures

	 	11.1	 	Mandatory Procedures
	 
	 	 	 	In the event either Party intends to file a lawsuit against the other with
respect to any matter in connection with this Agreement, compliance with the
procedures set forth in this Section shall be a condition precedent to the
filing of such lawsuit, other than for injunctive relief. Either Party may
terminate this Agreement as provided in this Agreement without following the
procedures set forth in this section.

	 	11.1.1	 	When a Party intends to invoke the procedures set forth in this
section, written notice shall be provided to the other Party. Within
thirty (30) days of the date of such notice, the Parties agree that
representatives designated by the Parties shall meet at mutually
agreeable times and engage in good faith negotiations at a mutually
convenient location to resolve such dispute.
	 
	 	11.1.2	 	If the Parties fail to meet within the time period set forth in Section
11.1.1 above or if either Party subsequently determines that negotiations
between the representatives of the Parties are at an impasse, the Party
declaring that the negotiations are at an impasse shall give notice to
the other Party stating with particularity the issues that remain in
dispute.
	 
	 	11.1.3	 	Not more than fifteen (15) days after the giving of such notice of
issues, each Party shall deliver to the other Party a list of the names
and addresses of at least three individuals, any one of whom would be
acceptable as a neutral advisor in the dispute (the “Neutral Advisor”) to
the Party delivering the list. Any individual proposed as a Neutral
Advisor shall have experience in determining, mediating, evaluating, or
trying intellectual property litigation and shall not be affiliated with
the Party that is proposing such individual.
	 
	 	11.1.4	 	Within ten (10) days after delivery of such lists, the Parties shall
agree on a Neutral Advisor. If they are unable to so agree within that
time, within five (5) days, they shall each select one individual from
the lists. Within five (5) days, the individuals so selected shall meet
and appoint a third individual from the lists to serve as the Neutral
Advisor. Within thirty (30) days after the selection of a Neutral
Advisor:

 

			
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	 	(a)	 	The Parties shall each provide a
written statement of the issues in dispute to the Neutral Advisor.
	 
	 	(b)	 	The Parties shall meet with the
Neutral Advisor in Gainesville, Florida on a date and time
established by the Neutral Advisor. The meeting must be attended
by persons authorized to make final decisions on behalf of each
Party with respect to the dispute. At the meeting, each Party
shall make a presentation with respect to its position concerning
the dispute. The Neutral Advisor will then discuss the issues
separately with each Party and attempt to resolve all issues in
the dispute. At the meeting, the Parties will enter into a
written settlement agreement with respect to all issues that are
resolved. Such settlement agreement shall be final and binding
with respect to such resolved issues and may not be the subject of
any lawsuit between the Parties, other than a suit for enforcement
of the settlement agreement.

	 	11.1.5	 	The expenses of the neutral advisor shall be shared by the Parties
equally. All other out-of-pocket costs and expenses for the alternative
dispute resolution procedure required under this Section shall be paid by
the Party incurring the same.
	 
	 	11.1.6	 	Positions taken and statements made during this alternative dispute
resolution procedure shall be deemed settlement negotiations and shall
not be admissible for any purpose in any subsequent proceeding.

	 	11.2	 	Failure to Resolve Dispute
	 
	 	 	 	If any issue is not resolved at the meeting with the Neutral Advisor, either
Party may file appropriate administrative or judicial proceedings with respect
to the issue that remains in dispute. No new issues may be included in the
lawsuit without the mandatory procedures set forth in this section having
first been followed.

Section 12 Product Liability; Conduct of Business

	 	12.1	 	Licensee and its Sublicensee(s) shall, at all times during the term
of this Agreement and thereafter, indemnify, defend and hold UFRF, the Florida
Board of Governors, the University of Florida Board of Trustees, the University of
Florida, and each of their directors, officers, employees, and agents, and the
inventors of the Licensed Patents, regardless of whether such inventors are
employed by the University of Florida at the time of the claim, harmless against
all claims and expenses, including legal expenses and reasonable attorneys fees,
whether arising from a Third Party claim or resulting from UFRF’s enforcing this
indemnification clause against Licensee, arising out of the death of or injury to
any person or persons or out of any damage to property and against any other
claim, proceeding, demand, expense and liability of any kind whatsoever resulting
from the development, production, manufacture, sale, use, lease, consumption,
marketing, or advertisement of Licensed Products or Licensed Process(es) or
arising from any right or obligation of Licensee hereunder. Notwithstanding the
above, UFRF at all times reserves the right to retain counsel of its own to defend
UFRF’s, the Florida Board of Governors’, the University of Florida Board of
Trustees’, the University of Florida’s, and the inventor’s interests.

 

			
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	 	12.2	 	Licensee warrants that it now maintains and will continue to maintain
liability insurance coverage appropriate to the risk involved in development,
producing, manufacturing, selling, marketing, using, leasing, consuming, or
advertising the products subject to this Agreement and that such insurance
coverage lists UFRF, the Florida Board of Governors, the University of Florida
Board of Trustees, the University of Florida, and the inventors of the Licensed
Patents as additional insureds. Within ninety (90) days after the execution of
this Agreement and thereafter annually between January 1 and January 31 of each
year, Licensee will present evidence to UFRF that the coverage is being maintained
with UFRF, the University of Florida, and its inventors listed as additional
insureds. In addition, Licensee shall provide UFRF with at least thirty (30) days
prior written notice of any change in or cancellation of the insurance coverage.

Section 13 Use of Names

	 	 	Licensee and its Sublicensee(s) shall not use the names of UFRF, or of the University
of Florida, nor of any of either institution’s employees, agents, or affiliates, nor
the name of any inventor of Licensed Patents, nor any adaptation of such names, in
any promotional, advertising or marketing materials or any other similar form of
publicity, or to suggest any endorsement by the such entities or individuals, without
the prior written approval of UFRF in each case.

Section 14 Miscellaneous

	 	14.1	 	This Agreement shall be construed in accordance with the internal
laws of the State of Florida
	 
	 	14.2	 	The Parties hereto are independent contractors and not joint
venturers or partners.
	 
	 	14.3	 	Licensee shall ensure that it applies patent markings that meet all
requirements of U.S. law, 35 U.S.C. §287, with respect to all Licensed Products
subject to this Agreement.
	 
	 	14.4	 	This Agreement constitutes the full understanding between the Parties
with reference to the subject matter hereof, and no statements or agreements by or
between the Parties, whether orally or in writing, shall vary or modify the
written terms of this Agreement. Neither Party shall claim any amendment,
modification, or release from any provisions of this Agreement by mutual
agreement, acknowledgment, or otherwise, unless such mutual agreement is in
writing, signed by the other Party, and specifically states that it is an
amendment to this Agreement.
	 
	 	14.5	 	Licensee shall not encumber or otherwise grant a security interest in
any of the rights granted hereunder to any Third Party.
	 
	 	14.6	 	Licensee acknowledges that it is subject to and agrees to abide by
the United States laws and regulations (including the Export Administration Act of
1979 and Arms Export Control Act) controlling the export of technical data,
computer software, laboratory prototypes, biological material, and other
commodities. The transfer of such items may require a license from the cognizant
agency of the U.S. Government or written assurances by Licensee that it shall not
export such items to certain foreign countries and/or foreign persons without
prior approval of such agency. UFRF neither represents that a license is or is
not required or that, if required, it shall be issued.
	 
	 	14.7	 	Licensee is responsible for any and all wire/bank fees associated
with all payments due to UFRF pursuant to this Agreement.

 

			
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	 	14.8	 	Survival
	 
	 	 	 	The provisions of this Section shall survive termination of this Agreement.
Upon termination of the Agreement for any reason, the following sections of the
License Agreement will remain in force as non-cancelable obligations:

	 	•	 	Section 6 Record Keeping
	 
	 	•	 	Section 9 Requirement to pay royalties on sale of Licensed Products
made, and in process, at the time of License Agreement termination
	 
	 	•	 	Section 12 Product Liability; Conduct of Business
	 
	 	•	 	Section 13 Use of Names
	 
	 	•	 	Section 18 Confidentiality

Section 15 Notices

	 	 	Any notice required to be given pursuant to the provisions of this Agreement shall be
in writing and shall be deemed to have been given

	 	•	 	when delivered personally, or
	 
	 	•	 	if sent by facsimile transmission, when receipt thereof is acknowledged
at the facsimile number of the recipient as set forth below, or
	 
	 	•	 	the second day following the day on which the notice has been delivered
prepaid to a courier service, or
	 
	 	•	 	five (5) business days following deposit in the U.S. mail if sent
certified mail, (return receipt acknowledgement is not required to certify
delivery).

	 	15.1	 	If to the University of Florida Research Foundation, Inc.:

President

University of Florida Research Foundation, Inc.

223 Grinter Hall

University of Florida

Post Office Box 115500

Gainesville, FL 32611-5500

Facsimile Number: 352-846-0505

with a copy to:

Office of Technology Licensing

Attn: Director

308 Walker Hall

University of Florida

Post Office Box 115500

Gainesville, Florida 32611-5500

Facsimile Number: 352-392-6600

	 	15.2	 	If to Licensee:

 

			
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Stephen J. Gatto

Chief Executive Officer

Myriant Technologies Inc

1 Pine Hill Drive

Batterymarch Park II, suite 301

Quincy, MA 02169

Facsimile Number: 617-657-5210

Section 16 Contract Formation and Authority

	 	 	The submission of this Agreement does not constitute an offer, and this document
shall become effective and binding only upon the execution by duly authorized
representatives of both Licensee and UFRF. Copies of this Agreement that have not
been executed and delivered by both UFRF and Licensee shall not serve as a memorandum
or other writing evidencing an agreement between the Parties. This Agreement shall
automatically terminate and be of no further force and effect, without the
requirement of any notice from UFRF to Licensee, if UFRF does not receive the License
Issue Fee within thirty (30) days of the Effective Date.

	 	16.1	 	UFRF and Licensee hereby warrant and represent that the persons
signing this Agreement have authority to execute this Agreement on behalf of the
Party for whom they have signed.
	 
	 	16.2	 	Force Majeure
	 
	 	 	 	No default, delay, or failure to perform on the part of Licensee or UFRF shall
be considered a default, delay or failure to perform otherwise chargeable
hereunder, if such default, delay or failure to perform is due to causes beyond
either Party’s reasonable control including, but not limited to: strikes,
lockouts, or inactions of governmental authorities, epidemics, war, embargoes,
fire, earthquake, hurricane, flood, acts of God, or default of common carrier.
In the event of such default, delay or failure to perform, any date or times by
which either Party is otherwise scheduled to perform shall be extended
automatically for a period of time equal in duration to the time lost by reason
of the excused default, delay or failure to perform.

Section 17 United States Government Interests

	 	17.1	 	It is understood that the United States Government (through any of
its agencies or otherwise) has funded research, Grant No. DE-FG36-04GO14019,
during the course of or under which any of the inventions of the Licensed Patents
were conceived or made. The United States Government is entitled, as a right,
under the provisions of 35 U.S.C. §202-212 and applicable regulations of Title 37
of the Code of Federal Regulations, to a non-exclusive, nontransferable,
irrevocable, paid-up license to practice or have practiced the inventions of such
Licensed Patents for governmental purposes. Any license granted to Licensee in
this Agreement shall be subject to such right.
	 
	 	17.2	 	Licensee agrees that for Licensed Products covered by the Licensed
Patents that are subject to the non-exclusive royalty-free license to the United
States Government, said Licensed Products will be manufactured substantially in
the United States. Licensee further agrees that it shall abide by all the
requirements and limitations of U.S. Code, Title 35, Chapter 18,
and implementing regulations thereof, for all patent applications and patents
invented in whole or in part with federal money.

 

			
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Section 18 Confidentiality

	 	18.1	 	Each Party shall maintain all information of the other Party which
is treated by such other Party as proprietary or confidential (referred to herein
as “Confidential Information”) in confidence, and shall not disclose, divulge or
otherwise communicate such confidential information to others, or use it for any
purpose, except pursuant to, and in order to carry out, the terms and objectives
of this Agreement, and each Party hereby agrees to exercise every reasonable
precaution to prevent and restrain the unauthorized disclosure of such
confidential information by any of its Affiliates, directors, officers,
employees, consultants, subcontractors, Sublicensees or agents. The Parties agree
to keep the terms of this Agreement confidential, provided that each Party may
disclose this Agreement to their authorized agents and investors who are bound by
similar confidentiality provisions. Notwithstanding the foregoing, Confidential
Information of a Party shall not include information which: (a) was lawfully
known by the receiving Party prior to disclosure of such information by the
disclosing Party to the receiving Party; (b) was or becomes generally available
in the public domain, without the fault of the receiving Party; (c) is
subsequently disclosed to the receiving Party by a Third Party having a lawful
right to make such disclosure; (d) is required by law, rule, regulation or legal
process to be disclosed, provided that the receiving Party making such disclosure
shall take all reasonable steps to restrict and maintain to the extent possible
confidentiality of such disclosure and shall provide reasonable notice to the
other Party to allow such Party the opportunity to oppose the required
disclosure; or (e) has been independently developed by employees or others on
behalf of the receiving Party without access to or use of disclosing Party’s
information as demonstrated by written record. Each Party’s obligations under
this Section 18 shall extend for a period of five (5) years from termination or
expiration of this Agreement.

Section 19 University Rules and Regulations 

	 	19.1	 	Licensee understands and agrees that University of Florida
personnel who are engaged by Licensee, whether as consultants, employees or
otherwise, or who possess a material financial interest in Licensee, are subject
to the University of Florida’s rule regarding outside activities and financial
interests set forth in Florida Administrative Code Rule 6C1-1.011, the University
of Florida’s Intellectual Property Policy, and a monitoring plan which addresses
conflicts of interests associated therewith. Any term or condition of an
agreement between Licensee and such University of Florida personnel which seeks
to vary or override such personnel’s obligations to the University of Florida may
not be enforced against such personnel, the University of Florida or UFRF,
without the express written consent of an individual authorized to vary or waive
such obligations on behalf of the University of Florida and UFRF. Furthermore,
should an interest of Licensee conflict with the interest of the University of
Florida, University of Florida personnel are obligated to resolve such conflicts
according to the guidelines and policies set forth by the University of Florida.

 

			
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IN WITNESS WHEREOF, the Parties hereto have duly executed this Agreement on
the dates indicated below.

UNIVERSITY OF FLORIDA RESEARCH FOUNDATION, INC.

	 	 	 	 	 

	/s/ David L. Day	 	Date: June 16, 2011
	 	 	 
	David L. Day	 	 
	Director of Technology Licensing	 	 
	 
	 	 	 	 
	LICENSEE	 	 
	 
	 	 	 	 
	By:

	 	/s/ Stephen J. Gatto
	 	Date: June 15, 2011
	 

	 	 

	 	 
	Stephen J. Gatto	 	 
	Chief Executive Officer	 	 

 

			
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Appendix A — Development Plan

     A Development Plan of the scope outlined below shall be submitted to UFRF by Licensee
prior to the execution of this agreement. In general, the plan should provide UFRF with a summary
overview of the activities that Licensee believes are necessary to bring products to the
marketplace.

	I.	 	Development Program

	 	A.	 	Development activities to be undertaken

	 	 	Year I  — II(2011)

	 	 	 	Develop biocatalyst that can produce D(-) lactic acid in minimal salt medium.
Replace the yeast extract in the current growth medium with less expensive
substitutes such as molasses, corn steep liquor, and a mixture of vitamins and
minerals.

	 	 	Year II — III (2012 — 2013)

	 	 	 	Test the ability of the biocatalyst to grow in a cellulosic hydrolysate and
the ability of the biocatalyst to grow in the non-detoxified cellulosic
hydrolysate.

	 	 	Year IV — V (2013 -2015)

	 	 	 	Identify the fermentation conditions that would allow the production of D(-)
lactic acid in a cost-effective commercial scale.

	 	B.	 	Estimated total development time     5 Years

	II.	 	Governmental Approval

	 	 	 	 	 	 	 

	 

	 	A.
	 	Types of submissions required
	 	Not Applicable
	 
	 	 	 	 	 	 
	 

	 	B.
	 	Government agency, e.g., FDA, EPA, etc.
	 	Not Applicable
	 
	 	 	 	 	 	 
	III.	 	Proposed Market Approach	 	To be completed in 2 years
	 
	 	 	 	 	 	 
	IV.	 	Competitive Information	 	To be gathered in 1 year

	 	A.	 	Potential competitors
	 
	 	B.	 	Potential competitive devices/compositions
	 
	 	C.	 	Known competitor’s plans, developments, technical achievements
	 
	 	D.	 	Anticipated date of product launch

 

			
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Appendix B — Development Report

When appropriate, indicate estimated start date and finish date for activities.

	I.	 	Date Development Plan Initiated and Time Period Covered by this Report.
	 
	II.	 	Development Report (4-8 paragraphs).

	 	A.	 	Activities completed since last report including the object and parameters of
the development, when initiated, when completed and the results.
	 
	 	B.	 	Activities currently under investigation, i.e., ongoing activities including
object and parameters of such activities, when initiated, and projected date of
completion.

	III.	 	Future Development Activities (4-8 paragraphs).

	 	A.	 	Activities to be undertaken before next report including, but not limited to,
the type and object of any studies conducted and their projected starting and
completion dates.
	 
	 	B.	 	Estimated total development time remaining before a product will be
commercialized.

	IV.	 	Changes to Initial Development Plan (2-4 paragraphs).

	 	A.	 	Reasons for change.
	 
	 	B.	 	Variables that may cause additional changes.

	V.	 	Items to be Provided if Applicable:

	 	A.	 	Information relating to Licensed Products or Licensed Processes that has become
publicly available, e.g., published articles, competing products, patents, etc.
	 
	 	B.	 	Development work being performed by third parties, other than Licensee, to
include name of third party, reasons for use of third party, planned future uses of
third parties including reasons why and type of work.
	 
	 	C.	 	Update of competitive information trends in industry, government compliance (if
applicable) and market plan.
	 
	 	D.	 	Information and copies of relevant materials evidencing the status of any
patent applications or other protection relating to Licensed Products, or Licensed
Processes or the Licensed Patents.

PLEASE SEND DEVELOPMENT REPORTS TO:

University of Florida Research Foundation, Inc.

Attn: Director

308 Walker Hall

P.O. Box 115500

Gainesville, FL 32611-5500

Facsimile: 352-392-6600

 

			
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Appendix C — UFRF Royalty Report 

Company Name:                                         

If multiple license agreements are required to generate this product, indicate what percentage of
the royalty is attributable to each agreement.

	 	 	 

	UFRF Agreement No.:                    

	 	Percentage:                    
	UFRF Agreement No.:                    

	 	Percentage:                    

	 	 	 	 	 	 	 	 	 	 	 

	Period Covered: From:

	 	     /     /2
	 	 	 	Through:
	 	     /     /2	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 

Prepared By:    
                 
                  
                 
            
              
    Date:          
           

Print Preparer Name:

Preparer Email Address:                                                              Phone No.:    
                 

	 	 	 	 	 	 	 	 	 

	Approved By:

	 	 	 	Date:	 	 	 	 
	 

	 	 

(Requires Executive Officer Signature)
	 	 	 

	 	 

Print Officer Name:

If license covers multiple product lines, please prepare a separate spreadsheet for each product
line, and a summary report for all products combined.

The spreadsheet should include the following information:

	 	•	 	Product Name
	 
	 	•	 	Country(ies) of Sales (List each country. If royalties vary by country, provide a
breakdown of specified information for each country.)
	 
	 	•	 	Unit Sales
	 
	 	•	 	Gross Sales
	 
	 	•	 	Less Allowances (On a separate page, please indicate the reasons for returns or
other adjustments if significant.)
	 
	 	•	 	Net Sales
	 
	 	•	 	Royalty Rate (Please note any unusual occurrences that affected royalty amounts
during this period. To assist UFRF’s forecasting, please comment on any
market variables that would impact future royalties).
	 
	 	•	 	Total Royalty due this period
	 
	 	•	 	Total Royalty paid last period

 

			
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Appendix D — Milestones

In addition to the research milestones described in Appendix A, the following milestones shall be
completed by the Licensee.

	1.	 	By December 31, 2011, Licensee will provide UFRF a detailed document covering Licensee’s
plans as to projected product development, markets and sales forecasts, manufacturing and
operations, and financial forecasts until at least $[...***...] in revenue are achieved
(“Business Plan”). UFRF will treat this Business Plan as confidential information according
to Section 18 of the Agreement.
	 
	2.	 	By September 30, 2011, Licensee will provide to UFRF a listing of the management team or a
schedule for the recruitment of key management positions.
	 
	3.	 	By June 30, 2012, Licensee will have developed a biocatalyst that can produce D(-) lactic
acid in a commercially viable medium.
	 
	4.	 	By June 30, 2013, Licensee will have developed a biocatalyst to grow on a detoxified
cellulosic hydrolysate.
	 
	5.	 	By June 30, 2014, Licensee will complete at least one Sublicense for right under the Licensed
Patents or achieve the production of [...***...] sample quantities of the Licensed Product.
	 
	6.	 	By May 31, 2016 Licensee will have a first sale of Licensed Product.
	 
	7.	 	Licensee or a sublicense must continue to sell Licensed Product every six months after the
date of first sale of a Licensed Product.
	 
	8.	 	By December 31, 2016 Licensee will obtain purchase orders from at least two customers.
	 
	9.	 	By May 31, 2018, Licensee will reach annual Net Sales of at least $[...***...].
	 
	10.	 	By December 31, 2020, Licensee will reach annual Net Sales of at least $[...***...].
	 
	11.	 	By December 31, 2025, Licensee will reach annual Net Sales of at least $[...***...].

 

			
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