Document:

Exhibit

Exhibit 10.11

INTRACOASTAL POINTE  OFFICE  BUILDING 
LEASE AGREEMENT

TENANT:

DYADIC  INTERNATIONAL,  INC.

LANDLORD:

QUENTIN  PARTNERS  CO. 
as Agent for
lntracoastal  Pointe,  Inc.
851  S.E. Johnson Avenue,  Suite 100
Stuart,  Florida 34994
772-220-4127

December,  2010

INTRACOASTAL POINTE OFFICE BUILDING 
LEASE AGREEMENT

THIS LEASE AGREEMENT  (sometimes hereinafter referred to as the "Lease") is made and entered into this 30th day of December, 2010 by and between Quentin Partners Co. as Agent for lntracoastal Pointe, Inc., (Florida corporations) (hereinafter collectively called "Landlord"), whose address for purposes hereof is 851 S.E. Johnson Avenue, Suite 100, Stuart,  Florida  34994;  and  Dyadic  International,  Inc.,    (hereinafter  called  "Tenant"). Tenant's address, for purposes hereof until commencement of the term of this Lease, being 140 lntracoastal Pointe Drive, Suite 404, Jupiter, Florida 33477 and thereafter being that of the Leased Premises (hereinafter defined).

WITNESSETH:

		
	1.
	LEASED PREMISES: Subject to and upon the terms, provisions, covenants and conditions  hereinafter  set  forth,  and  each  in   consideration   of  the  duties, covenants and obligations of the other hereunder, Landlord does hereby lease, demise and let to Tenant and Tenant does  hereby lease,  demise and let from Landlord  those  certain  premises  (hereinafter  sometimes  called the  "Leased Premises")  in  the  lntracoastal  Pointe  Office  Building   (hereinafter  sometimes referred to as "Building") located at 140 lntracoastal Pointe Drive, Jupiter, Florida 33477, such Leased Premises being more particularly described as follows:

Suites 404 and 405, 4,872± square feet of Gross Rentable Area, located on the fourth floor of the Building.

The term "Gross Rentable Area" as used herein, shall refer to all area measured from the outside surface of the outer glass or finished walls of the building to the outside surface  of the opposite  outer wall, glass, or in the case of multi-tenant floors, to the midpoint of the walls separating the Leased Premises of adjacent tenants.  The term "Gross Rentable Area" includes a pro rata share of all common areas and facilities of the  Building,  but not limited to, bathrooms,  hallways and service facilities, the  rent and expenses  of which  are to be shared  by Tenant proportionately.   No deductions from Gross  Rentable Area are made for columns or projections necessary to the Building.  The Gross Rentable Area in the Leased Premises has been calculated on the basis of the foregoing definition and is hereby stipulated  for all purposes hereof to be 4,872± square  feet, whether the same should  be  more  or  less  as  a  result  of minor  variations  resulting  from  actual construction and completion of the Leased Premises for occupancy so long as such work is done substantially in accordance with the approved plans.

2.    A.    TERM: The term of this Lease Agreement on the Leased Premises shall be for a
period of (36) thirty-six months. The Commencement Date of the term shall be 
January 1,  2011.Landlord will make all diligent attempts to have space ready. The
rent for partial months shall be prorated. The Term of the Lease shall expire (unless
sooner terminated as provided  herein) at 11 :59 p.m. E.D.T. on December 31, 2013.

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B.    Early Termination:

Tenant shall have the right to terminate the Lease with a six (6) month notice  at any time on or after January 1,  2012  by delivering written  notice  ("Early Termination  Notice") to Landlord its intention to do so.

3.    A.    Annual Rent:  During the term of this Lease, Tenant agrees and covenants to pay
the Landlord Annual Rent as follows:

1/01/11  - 12/31/13:  $11.50 per square foot;  $56,028.00/year; $4,669.00/month*

*Tenant will pay first month's rent plus CAM as defined in the lease (Section 3C, currently at $8.00 psf) and sales tax (currently at 6.5%) totaling $8,431.61, upon lease execution.

Total Annual Rent per year is payable without demand, notice or offset in advance in equal monthly installments of one-twelfth of the Annual Rent due and payable on the first day of each and every calendar month of the term of the Lease, in the currency of the United States of America at the offices of Landlord or elsewhere as designated from time to time by Landlord's written notice to Tenant.  The monthly installment of Annual  Rent shall be   prorated in the case of partial months.   In addition to the Annual Rent,  Tenant shall pay to the Landlord  on the first day of each month a sum equal to any sales tax, tax on rentals, and any other charges, taxes  or impositions,  now in  existence  or  hereafter  imposed  based  upon  the privilege of renting the Leased Premises or upon the amount of Annual Rent, pro rata expenses, and all other amounts owed by Tenant hereunder.  Nothing herein shall,  however,  require Tenant to  pay any  Federal  or  State  taxes  on  income imposed upon Landlord.

The  Tenant  will  pay for  the  electric  for  the  Leased  Premises,  which  shall  be separately metered. The Tenant will be responsible to maintain its Leased Premises space (including all water connections, appliances and kitchens).

LATE CHARGES.  The parties agree that late payment by Tenant to Landlord  of rent will cause Landlord to incur costs not contemplated  by this lease, the amount of which is extremely difficult to ascertain.  Therefore, the parties agree that if any installment of rent is not received by Landlord within 7 days after rent is due, Tenant will pay to Landlord a sum equal to 15% of monthly rent as a late charge.

INSUFFICIENT FUNDS.  If any of Tenant's checks bounce, Landlord will charge a fee of $100.00 for administrative  cost plus all bank fees.

		
	B.
	PRORATA SHARE OF EXPENSES AS ADDITIONAL RENT: In addition to the Annual Rent and other sums to be paid hereunder by Tenant,  Tenant shall pay a prorata share of all expenses incurred by Landlord in connection with the ownership, operation, maintenance and management of the Building and the 

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land upon which it is located.  Tenant's pro-rata share shall be $8.00 per square foot.

The expenses for which the Tenant shall pay a prorata  share  according to the aforesaid formula include but are not limited to the following:

		
	(1)
	Real Property Taxes and Assessments.  Tenant shall pay its pro-rata share of all real property taxes and assessments and all tangible personal property taxes which may be levied or assessed by any lawful authority against the land, the improvements located on the land (including the Building) and all personal  property  owned  by Landlord  and  used  in  connection  with  the operation  and  management  thereof.    A  tax  bill  or  photocopy  thereof submitted  by Landlord to Tenant shall be sufficient evidence of the amount of taxes assessed or levied against the property to which the bill relates. The real property taxes and assessments herein referred to shall be the real property taxes and assessments on the property with a physical address of 140  lntracoastal  Pointe  Drive,  Jupiter,  Florida  33477.    Tenant shall  be responsible for paying all taxes on Tenant's own personal property and all taxes due with respect to any leasehold improvements which exceed the value of the improvements provided by Landlord to Tenant.

		
	(2)
	Insurance.  Tenant shall pay its prorata share of the cost of all insurance coverage carried by Landlord with respect to the Building and land, including without limitation insurance against liability, casualty, loss of damage to the Building, rent loss, flood insurance,  and worker's compensation.

		
	(3)
	Utilities.  Tenant shall pay its prorata share of the cost of all utilities including electricity, water, gas, fuel, trash and garbage collection fees, Tenant Association fees, drainage district tax, and any sewer service charges for the Building  (but as provided  in Section  10, Tenant  shall be  responsible  for paying all electricity to the Leased Premises).

(4)    General Services and Expenses (for the Building Common Areas): 
		
	(a)
	Janitorial services.

		
	(b)
	Maintenance and repair.

		
	(c)
	Landscaping maintenance, supplies and refurbishing.

		
	(d)
	Cleaning, maintaining,  resurfacing, and striping of the parking area. 

		
	(e)
	Operatorless elevator service and maintenance.

		
	(f)
	Supplies for restrooms and other public portions of the Building and the property.

		
	(g)
	Maintenance of air conditioning, heating, sprinkler, access control and other mechanical systems.

		
	(h)
	Building management fees.

		
	(i)
	Expenses for access control if and to the extent provided by Landlord. In the event Landlord does provide access control, Tenant specifically agrees that Landlord shall not be liable in the event of any loss or 

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damage  suffered  by Tenant as a result  of any failure to exclude access to any unauthorized  personnel.
		
	(j)
	Reserve for renewal, replacement, and capital improvements of ten percent of annual expenses  excluding the reserve for renewal and replacement.

		
	(k)
	Amortization  of the cost of capital  improvements  (together with  a reasonable  finance charge) as may be required  by governmental authority.

		
	(I)
	Professional fees (including attorneys and accountants)  incurred in connection with the operation of the Building; and

		
	(m)
	Compensation  of employees  at the level of building  manager and below in connection with operation of the Building.

The costs to be shared on a prorata basis by Tenant shall not include payments of principal and interest on any mortgage or deed of trust upon the building,  or the costs of improvements made for particular tenants.

Landlord does not warrant that any of the services will be free from interruption caused by repairs, renewal, improvement, alterations, strikes, lockouts, accidents, inability of Landlord to obtain fuel or supplies  or any other causes.   Any  such interruption of service shall never be deemed an eviction or disturbance of Tenant's use and possession of the premises or any part thereof or render the Landlord liable to the Tenant for damages or relieve the Tenant from performance of the Tenant's obligations under this Lease.  Landlord agrees, however, that Landlord will make reasonable  efforts  at  all times  to  promptly remedy  any  situation  which  might interrupt such services.

		
	C.
	OTHER  PROVISIONS  AFFECTING  RENTAL  PAYMENTS  AND ADDITIONAL   RENT:  Notwithstanding   anything  in  the  foregoing  to  the contrary, the Tenant's obligations under Section 3(B) shall be computed as the costs of owning,  operating and managing  the Building  is $8.00*  per square foot (base CAM rate).   The prorata share shall be $8.00 p.s.f.  over the term of the Lease.  Tenant shall pay in advance, in monthly installments as herein set forth. The amount due under this Section shall be paid  by Tenant to Landlord without notice or demand and without abatement, deduction or set-off in monthly installments, in advance on the first day of each calendar month during the term of this Lease as provided for herein. Landlord shall have all the rights and remedies provided herein or by law for the purposes of collection thereof. Tenant may not disclose any information regarding Building expenses without the approval of Landlord.

		
	4.
	SECURITY DEPOSIT: Tenant concurrently with the execution of this Lease shall pay the sum of zero dollars.  It is understood that Tenant paid a previous Landlord a security deposit of four thousand four hundred twenty-three dollars and 84 cents ($4,423.84),  which was  never  transferred  to the current  Landlord  because  the previous  Landlord went  out  of business.   Tenant's  lease  signed June 28, 2001 stated  that  Quentin  Partners Co. would  assume  responsibility for this  security deposit of $4,423.84 provided Tenant remained in good standing through December 31, 2005, which was the case.  As a courtesy for tenant goodwill, this sum shall be deemed by Landlord as security for the payment by Tenant of the rents and all other payments herein agreed to be paid by Tenant and for the faithful 

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performance by Tenant  of the  terms,  provisions,  and  conditions  of this  Lease.    Landlord,  at Landlord's option, may at the time of any default by Tenant under any of the terms, provisions, covenants or conditions of this Lease apply said sum or any part thereof towards the payment of the rents and all other sums payable by Tenant under this Lease. Landlord will notify the Tenant in writing when this action has been taken. Tenant shall remain liable for any amounts that such sum shall be insufficient to pay and shall within three (3) days after demand by Landlord restore the security deposit to the amount originally required hereby.  Landlord may exhaust any or all rights and remedies against Tenant before resorting to the security deposit, but nothing herein contained shall require or be deemed to require Landlord to do so.  In the event the deposit shall  not be utilized for  any such purpose,  then such deposit  shall  be returned  by Landlord  to Tenant after the  expiration  of the term  of this  Lease. Landlord shall not be required to pay Tenant any interest on the security deposit.

		
	5.
	USE: The Tenant will use and occupy the Leased Premises for the following use or purpose and for no other use or purpose: Office. 

Notwithstanding anything to the contrary in this Lease, the Leased Premises shall not be used for any purpose which would (i) adversely affect the appearance of the Building, (ii) except for general office use,  be visible from the exterior of, or the public areas of the Building, (iii) adversely affect ventilation in other areas of the Building  (including without limitation the creation of offensive odors),  (iv) create unreasonable elevator loads, (v) cause structural loads to be exceeded, (vi) create unreasonable noise levels, (vii) violate building codes, zoning ordinances, or other applicable laws or otherwise constitute illegal use, (viii) adversely affect the mechanical, electrical, plumbing or other base Building systems, (ix) result in the generation, treatment, storage, discharge, disposal, possession, processing or other handling  of chemicals  or any hazardous material  in the  Leased  Premises,  the Building,  or any  Building  systems,  including  in  particular  disposal  in  the  base Building  plumbing,  heating,  ventilating  or air-conditioning  systems,  (x)  involve printing,  photographic processing or other process involving the use of chemicals and equipment not generally used in office buildings, or (xi) otherwise unreasonably interfere with Building operations or other tenants of the Building.  (xii) Tenant is responsible for any and all damage throughout the building which might result from its shipping and/or receiving operations.  In all events, Tenant shall not engage in any activity which is not in keeping with the standards of the Building.

		
	6.
	IMPROVEMENTS: Tenant may create two offices from a conference room and hallway in the southwest corner of Suite 405 (see plan). Tenant shall maintain all improvements installed in accordance with said plans. The final plans for Tenant's interior improvements ("Tenant Improvements") shall be submitted to Landlord  and shall be subject to approval by Landlord and the Town of Jupiter prior to commencement  of construction.   Landlord's  approval shall not be unreasonably withheld provided that such improvements do not adversely affect Building structure or Building systems and are not visible from the exterior of the Leased Premises. The plans submitted by Tenant shall not be deemed final unless they are sufficient to meet all requirements  necessary to allow Landlord to obtain a building 

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permit. After the plans have been submitted to and approved by Landlord no changes shall be permitted without Landlord's written consent.

Should Tenant desire water and sewer service within the Leased Premises other than those existing, said installation and connection  shall be at the Tenant's sole expense.  Tenant shall be responsible for damages, if any, to the Building or to the Leased Premises, as a result of the original installation, leaks, water pipe breakage or other failure in the system which may occur after the original installation.

All Tenant Improvements made to the Leased Premises shall become the property of the Landlord  upon expiration or termination of this Lease.

		
	7.
	CONTRACTORS.   All outside contractors will be licensed, insured for liability and carry an occupational  license valid in the municipality in which they are going to work.   Landlord must be notified  of the names of these contractors and provided with a copy of their licenses and insurance.   (see Section 14 - Liens.)

		
	8.
	TENANT'S RIGHTS AND RESTRICTIONS AS TO BUSINESS SIGNS: Tenant may, at its own expense, erect or place, of a quality, size, and in a manner approved in writing by Landlord, and based on Landlord's building standard, graphics identifying Tenant  on  the  main  entrance  door  of the  Leased  Premises  or as  otherwise designated by Landlord. Such signs shall be kept in a good state of repair and Tenant shall repair any damage that may have been done to the Leased Premises by the erection, existence or removal of such signs.  At the end of the Lease term, Tenant shall remove the signs at its expense.

Except as provided above, no sign, notice or other advertisement shall be inscribed, painted, affixed or displayed on any of the windows or on the exterior of any of the doors  of the  Leased  Premises,  nor anywhere  visible  from  outside the  Leased Premises  without prior written consent  of Landlord  (which  may  be granted  or withheld by Landlord in its sole discretion).

Landlord agrees that during the entire term of this Lease Landlord shall make space available on the building directory board of the building for the name of Tenant's firm, company, corporation or business entity.  Landlord shall maintain the Tenant's name on the sign, unless a federal, state or local code prohibits either the sign or limits  use  of  such  sign.  Landlord  has  the  right  to  approve  signage  prior  to installation.

		
	9.
	CONDITION OF PREMISES: Tenant is in possession of the Leased Premises and Tenant acknowledges the Leased Premises are  in good and satisfactory condition.

		
	10.
	QUIET POSSESSION: Upon payment by Tenant of the rental herein provided, and upon the observance  and performance  of all terms,  provisions, covenants and conditions on Tenant's part to be observed and performed, Tenant shall, subject to all of the terms, provisions, covenants and conditions  of this Lease Agreement, peaceably and quietly hold and enjoy the Leased Premises for the term hereby leased.

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	11.
	TENANT'S  ELECTRICAL:  Tenant shall use only office  machines and equipment that operate  on the  Building's standard  electric circuits,  but which  in  no event overload the Building's standard electrical circuits from which the Tenant obtains electric current or which will, in the opinion of Landlord, interfere with the reasonable use of the Building by Landlord or other tenants  or which shall create a hazard within the Leased Premises. Tenant shall comply with all governmental mandates regarding  temperature  control.  Tenant shall  be responsible  for  payment of all charges for electric consumption within the Leased Premises.

		
	12.
	CHARGES  FOR  SERVICE:  Any  charges  against  Tenant  by  Landlord  or  its subsidiaries  or agents for services or for work done on the Leased Premises  by order of Tenant, or otherwise accruing under this Lease, shall be considered as rent due hereunder for all purposes.

		
	13.
	REMEDIES UPON TENANT'S  DEFAULT. In the event Tenant shall abandon or vacate the Leased Premises or at any time be in default in the payment when due of Annual Base Rent,  or other charges herein required  to be paid by Tenant or in the observance  or performance  of any of the other covenants and agreements required to be performed and observed by Tenant hereunder and any such default shall continue  for  a period  of three (3) days  after written  notice to Tenant for monetary obligations and ten (10) days after written notice to Tenant for all other obligations, then Tenant shall be in default hereunder and Landlord shall be entitled to  any and  all  remedies  available  at  law or  in  equity and  all other  remedies specifically  provided  herein.  Without  limiting  the  generality  of  the  foregoing, Landlord may:

		
	(A)
	Terminate  this  Lease  and  Tenant's  right  to  possession  of the  Leased Premises by any lawful means, in which case this Lease shall terminate and Tenant shall immediately surrender possession of the Leased Premises to Landlord. In such event Landlord shall be entitled to recover from Tenant all damages incurred by Landlord  by reason of Tenant's default including,  but not limited to, the cost of recovering possession of the Leased Premises, expenses  of reletting,  reasonable  attorney's  fees,  and  any  real  estate commission paid; and the difference at the time of termination between the amount by which the unpaid Annual Base Rent (as is reasonably projected  by Landlord) for the balance of the term.

		
	(B)
	Maintain  this  Lease  in  full  force  and  effect  and  allow  Tenant to retain possession of the Leased Premises, in which case this Lease shall continue in effect whether or not Tenant shall have abandoned the Leased Premises. In such event,  Landlord shall be entitled to enforce all of Landlord's rights and remedies under this Lease, including the right to recover the Annual Base Rent and other charges as they become due hereunder; and/or

		
	(C)
	Terminate Tenant's  right of possession,  but  not this  Lease, whereupon Landlord  will  use commercially  reasonable  efforts  to attempt to relet the Leased Premises for Tenant's account;  in which case Tenant shall remain liable  to  Landlord  for  the  amount,  if  any,  by which the  rental  and other charges  required to be paid  

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hereunder  exceed  the  net amount actually received by Landlord from any such reletting (after deducting from the rental received from the new tenant any amounts paid by Landlord in obtaining the new lease including all real estate commissions,  concessions, and other costs).  Such amounts owed by Tenant shall be paid to Landlord from time to time upon demand; and/or

		
	(D)
	Declare the balance of the Annual Rent and the balance of Tenant's pro rata share of expenses (agreed at $8.00. Psf) for the entire remaining term of this Lease to be immediately due and payable the space would then continue to be available to Tenant; and/or

		
	(E)
	Charge a fifteen percent (15%) fee on any outstanding balance; and/or

		
	(F)
	Pursue any other remedy now or hereafter available to Landlord at law or equity.

During any period in which Tenant is in default beyond any applicable grace period Tenant shall not be entitled to exercise any options,  privileges, or rights contained in this Lease.

		
	14.
	ALTERATIONS AND REPAIRS: Tenant will, at Tenant's own expense,  keep the Leased Premises in  good repair and tenantable  condition during the Lease term and will replace at its own expense any and all broken glass caused by Tenant in and about said Leased Premises.

Tenant will make  no alteration, additions  or improvements in or to the  Leased Premises without the written consent of Landlord, and all additions, fixtures, carpet or improvements,  except office furniture and trade fixtures which shall be readily removable without injury to the Leased Premises, shall be and remain a part of the Leased Premises at the expiration of this Lease: provided, however, if Landlord requests removal of any alterations, additions or fixtures installed by Tenant, Tenant shall cause them to be removed at Tenant's cost.

		
	15.
	LIENS: Tenant agrees to pay all liens of contractors, subcontractors,  mechanics, laborers, material men, and other items of like costs and charges, including bond premiums for release of liens and attorney's fees reasonably incurred in and about the defense of any suit in discharging the Leased Premises or any part thereof from any liens, judgments or encumbrances  caused or suffered by Tenant.  In the event any such lien shall be made or filed, Tenant shall bond against or discharge the same within ten (10) days after the same has been made or filed. The expenses, costs  and  charges  above  referred  to  shall  be considered  as  rent  due  for  all purposes of this Lease.

Tenant shall not have any authority to create any liens for labor or materials on the Landlord's  interest  in  the Leased  Premises  or the Building  and all persons contracting with  the Tenant for the destruction  or removal of any facilities or other improvements or for the erection, installation, alteration or repair  of  any  facilities  or  other  improvements  on  or  about  the  Leased Premises,  and all material  men, contractors,  mechanics  and laborers,  are hereby charged with notice that they must look only to the Tenant's interest in the Leased Premises to secure the payment of any bill for work done or material furnished at the request or instruction of Tenant.

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	16.
	PARKING: Landlord grants to Tenant the right to use in common with other tenants entitled to similar use thereof the parking areas for parking automobiles of Tenant's customers,  clients and invitees.

Landlord may require Tenant and its employees to use a parking area designated by Landlord  as an employee  parking area and Tenant shall take all necessary action  to  assure that Tenant's  employees  shall  use  the  designated  employee parking area as designated by Landlord.

Any reserved parking spaces shall be in areas designated  by Landlord. Landlord shall not be liable for any damage of any nature whatsoever  to, or any theft of, automobiles or other vehicles  or appurtenant parking areas.   Tenant has three reserved parking spaces, numbered 6, 7, 8.

		
	17.
	ESTOPPEL CERTIFICATE:  Tenant agrees that from time to time,  upon  not less than seven (7) days prior request by Landlord, Tenant will deliver to Landlord a statement in writing certifying: (a) that this Lease is unmodified and in full force and effect or,  if there  have  been modifications,  that the Lease,  as modified,  is  in  full force and effect and stating the modifications;  (b) the dates to which the rent and other charges  have  been  paid;  (c) that  Landlord  is  not  in  default  under any provisions of this Lease, or if in  default,  the nature thereof in  detail; and (d) such other matters as Landlord shall reasonably request.

		
	18.
	LANDLORD'S MORTGAGE: If the Building and/or Leased Premises are at anytime subject to a mortgage, and Tenant has received written notice from Mortgagee of same, then in any instance in which Tenant gives notice to Landlord alleging default by Landlord hereunder, Tenant will also simultaneously give a copy of such notice to Landlord's Mortgagee and Landlord's Mortgagee shall have the right (but not the obligation)  to cure or remedy such default during the period that is permitted to Landlord hereunder, plus an additional period of thirty (30) days, or such greater period as may reasonably be required for the Mortgagee to effect the cure (including if title or possession  by the Mortgagee  is required to effect the cure any period required  by Mortgagee  to foreclose  or otherwise  obtain  title  and  possession). Tenant will accept such curative or remedial  action (if any) taken  by Landlord's Mortgagee with the same effect as if such action had been taken by Landlord.

This Lease shall be subject and subordinate  to any mortgage  now or hereafter covering the Building or Leased Premises. The foregoing provision shall be self• operative  but,  Tenant  shall  upon  Landlord's   request  promptly  execute  any instrument or instruments which  Landlord  may deem necessary or desirable  to further evidence  the subordination of the Lease to any and all such mortgages and/or deeds of trust. Tenant hereby appoints Landlord and or Landlord's successor(s) in interest as Tenant's attorney-in-fact to execute any and all documents necessary to effectuate all the provisions of this Section.

		
	19.
	ASSIGNMENT  BY LANDLORD:  If the interests of Landlord under this Lease shall be  transferred voluntarily or by reason  of foreclosure or other  proceedings  for enforcement 

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of any mortgage on the Leased Premises, Tenant shall be bound to such transferee (herein sometimes called the "Purchaser"), for the balance of the term  hereof remaining  and any extensions  or renewals  thereof which  may  be effected  in accordance with the terms and provisions hereof, with the same force and effect as if the Purchaser were the Landlord under this Lease, and Tenant does hereby agree to attorn to the Purchaser, as its Landlord, said attornment to be effective and self-operative without the execution of any further instruments upon the  Purchaser succeeding  to  the  interest  of Landlord  under this  Lease.  The respective rights and obligations of Tenant and the Purchaser upon such attornment to the extent of the then remaining balance of the term of this Lease and any such extensions and renewals shall be and are the same as those set forth herein. In the event of such transfer of Landlord's interest, Landlord shall be released and relieved from all liability and responsibility thereafter accruing to Tenant under this Lease or otherwise, and Landlord's successor by acceptance of rent from Tenant hereunder shall become liable and responsible  to Tenant in respect to all obligations of the Landlord  under this Lease.

		
	20.
	ASSIGNMENT  AND SUBLEASING  BY TENANT: Without the written consent of Landlord first obtained in each case, Tenant shall not assign, transfer, mortgage, pledge, or otherwise  encumber or dispose of this Lease for the term hereof, or underlet the Leased Premises or any part thereof or permit the Leased Premises to be occupied by anybody other than the Tenant. No assignment of this Lease nor sublease  of the  Leased  Premises  shall  release  Tenant  from  any  obligations contained herein. The Landlord  may after default by the Tenant collect or accept rent from  the  assignee,  undertenant,  or occupant  and  apply  the  net  amount collected or accepted to the rent and other amounts herein reserved, but no such collection or acceptance shall be deemed a waiver of this covenant or the acceptance  of the assignee, undertenant or occupant as Tenant, nor shall it be construed as, or implied to be, a release of the Tenant from the further observance and performance by the Tenant of the terms, provisions, covenants and conditions herein contained. In the event Tenant desires Landlord's consent to any assignment or sublease Tenant shall provide such information as Landlord shall reasonably require to evaluate the proposed assignee or subtenant, including without limitation, name, references, audited financial statements and nature of business. Any assignee or subtenant must agree in writing to be bound by all terms and provisions hereof (except that as to subtenants, the subtenant's rental will be governed by its sublease).

		
	21.
	SUCCESSORS AND ASSIGNS: All terms, provisions, covenants and conditions to be observed  and performed by Tenant shall be applicable to and binding upon Tenant's respective heirs, administrators, executors, successors and assigns, subject, however, to the restrictions as to assignment or subletting by Tenant as provided herein. All expressed covenants of this Lease shall be deemed  to be covenants running with the land.

		
	22.
	INSURANCE; TENANT'S INDEMNIFICATION: Tenant shall, during the entire Lease term, at its sole cost and expense, provide and keep in full force and effect a policy of Commercial General Liability insurance covering the Leased Premises, and the business  operation  by Tenant  in  an  amount  of  not  less  than  $3,000,000.00 combined single limit liability for bodily injury and property damage. The policy shall name Quentin Partners Co. and lntracoastal Pointe Inc., and any person, firms or corporations  designated  by Landlord  as 

10

an additional  insured,  and Tenant as insured, and shall contain  a clause  that the insurance carrier will not cancel or change the insurance without first giving the Landlord ten (10) days prior written notice. The insurance shall be with an insurance company acceptable to Landlord and the insurance carrier shall provide Landlord a true copy of said policy and a certificate of insurance.

Tenant agrees to pay any increase  in  premiums for fire  and extended coverage insurance  that may be charged during  the term of this Lease resulting  from the activity  of Tenant  or merchandise  stored  by Tenant  in  the  Leased  Premises, whether or not  Landlord  has  consented  to the  same.  Bills for  such  additional premiums shall be rendered by Landlord to Tenant at such times as Landlord may elect, and shall  be due from,  and payable  by Tenant  when  rendered,  and the amount thereof shall be deemed to be additional rent.

Tenant will indemnify Landlord and save it harmless from and against any and all claims,  actions,  damages,  liability and expense  in  connection  with  loss by fire, personal injury and/or damage to property arising from or out of any occurrence in, upon or at the Leased Premises or any part thereof, or occasioned wholly or in part by any act or omission  of Tenant,  its agents,  guests,  contractors,  employees, servants, subtenants,  assignees,  or concessionaires.  Tenant  shall also pay all costs, expenses  and reasonable attorneys' fees (including appeals) that may be incurred or paid by Landlord in enforcing the covenants and agreements in this Lease.

Tenant shall replace, at the expense of Tenant, any and all plate and other glass damaged or broken arising from or out of any act of Tenant, its agents, guests, contractors,  employees,  servants, subtenants or concessionaires.

Landlord and Tenant hereby waive any and all rights of recovery against each other, their officers, employees and agents, for loss occurring to the Leased Premises to the extent covered  by insurance proceeds provided that the applicable insurance policy contains a waiver  of a right of subrogation.  Each party shall use reasonable efforts to obtain a waiver of subrogation from the insurance carrier providing their insurance.

		
	23.
	MUTUAL INDEMNITIES: In consideration of the Leased Premises being leased to Tenant for the above rental, Tenant agrees: that Tenant, at all times, will indemnify and hold  harmless Landlord from all losses, damages,  liabilities and expenses, which may arise or be claimed against Landlord and be in favor  of any persons, firms or corporations, for any injuries or damages to person or property, consequent upon or arising from any acts, omissions, neglect or fault of Tenant, its agents, servants, employees, licensees, visitors, customers, patrons or invitees, or consequent upon or arising from Tenant's failure to comply with any laws, statutes, ordinances, codes or regulations or any provisions of this Lease. Landlord shall not be liable to Tenant for any damages,  losses or injuries to the persons or property of Tenant which may be caused by the acts, neglect, omissions or faults of any persons,  firms  or corporations,  except when such injury,  loss  or damage results from gross  negligence or willful misconduct of Landlord, its agents or employees. All personal property placed or moved into the Leased Premises or the Building shall be at the risk of Tenant or 

11

the owners thereof, and Landlord shall not be liable to Tenant for any damages to said personal property. Tenant shall maintain at all times during the term of this Lease an insurance policy or policies in an amount or amounts sufficient to indemnify Landlord and to pay Landlord's damages, if any, resulting from any matter set forth in this Section.

In case Landlord shall be made a party to any third party litigation commenced by or against Tenant, Tenant shall protect and hold Landlord  harmless and shall pay all cost, expenses and reasonable attorney's fees incurred or paid by Landlord in connection with such litigation.

In consideration of the Leased Premises  being leased to Tenant for the above rental, Landlord agrees: that Landlord, at all times, will indemnify and hold harmless Tenant from all losses, damages, liabilities and expenses, which may arise or be claimed against Tenant and be in favor of any persons, firms or corporations, for any injuries or damages to person or property, consequent upon or arising from any acts,  omissions,  neglect or fault  of Landlord,  its  agents,  servants,  employees, licensees,  visitors,  customers, patrons or invitees,  or consequent upon  or arising from Landlord's failure to comply with any laws, statutes, ordinances,  codes or regulations or any provisions of this Lease.  Tenant shall not be liable to Landlord for any damages,  losses or injuries to the persons or property of Landlord which may be caused by the acts, neglect, omissions or faults of any persons, firms or corporations,  except  when  such  injury,  loss  or  damage  results  from  gross negligence or willful misconduct of Tenant, its agents or employees.  Landlord shall maintain at all times during the term of this Lease an insurance policy or policies in an amount or amounts sufficient to indemnify Tenant and to pay Tenant's damages, if any,  resulting from any matter set forth in this Section.

In case Tenant shall be made a party to any third party litigation commenced by or against Landlord, Landlord shall protect and hold Tenant harmless and shall pay all cost, expenses and reasonable attorneys' fees and disbursements incurred or paid by Tenant in connection with such litigation.

		
	24.
	ATTORNEY'S  FEES: If the Tenant defaults in the performance of any of the terms, provisions,  covenants and  conditions  of this  Lease  and by reason  thereof the Landlord  employs the services of an attorney to enforce performance of same by the Tenant or to perform any services based upon said default, the Tenant agrees to pay reasonable attorney's fees and all expenses, costs and charges incurred by the Landlord pertaining thereto and enforcement of any remedy available to the Landlord.

In the event of the institution of litigation to enforce the provisions of the Lease to evict Tenant, or to collect moneys due from the date of default in the event of a money judgment,  Tenant  shall  be  responsible  for  cost  of such  litigation  and reasonable attorney's fees at the trial  level and at all levels of appeal.

In the event Landlord is the prevailing party, the awardable sums with all costs, interest and damages shall be deemed additional rent hereunder and shall be due from Tenant to 

12

Landlord on the first day of the month following the month in which the respective expenses, etc., were incurred.

In the event the Tenant is the prevailing party, the awardable sums with all costs shall be bourne by Landlord.

		
	25.
	GOVERNMENTAL REGULATIONS: Tenant shall faithfully observe in the use of the Leased Premises all municipal and county ordinances and codes and state, local and federal statutes or laws, rules, regulations, or other governmental requirements now in force or which may hereafter be in force.

		
	26.
	FIRE OR CASUALTY: In the event the Building shall be destroyed, or so damaged, or injured by fire or other casualty during the term of this Lease whereby the Leased Premises shall  be  rendered  untenantable, the Landlord  shall have the right to render the Leased Premises tenantable by repairs within one hundred eighty (180) days therefrom.  If the Leased Premises are not or will not be rendered tenantable within said time, it shall be optional with either party hereto to cancel this Lease, and in the event of such cancellation, the rent shall be paid only to the date of such fire or casualty. Landlord shall also have the option to cancel this Lease in the event the Building  is  damaged  to  such  an  extent  that  Landlord  elects  not to  repair the damage. Any cancellation shall be evidenced in writing. During any time that the Leased Premises are untenantable due to causes set forth in this Section, the rent or a just and fair proportion thereof (based upon the portion of the Leased Premises that are not untenantable)shall  be abated.

Landlord shall not restore fixtures and improvements  installed  by Tenant either at the commencement of the Lease or during the leasehold term.

		
	27.
	EMINENT DOMAIN:  If there shall be taken during the term of this Lease any part of the  Leased  Premises,  parking  facilities  or  Building,  other than  a  part  not interfering with  maintenance,  operation  or use of the Leased Premises, Landlord may elect to terminate this Lease or to continue same in effect.  If Landlord elects to continue the Lease, the rental shall be reduced in proportion to the area of the Leased Premises so taken and Landlord shall repair any damage to the Leased Premises, parking facilities, or Building resulting from such taking. If any part of the Leased Premises is taken by condemnation  or eminent domain and the Landlord elects to continue the Lease, the rental assessment shall be reduced in proportion to the area of the Leased Premises so taken and Landlord shall repair any damage to the Leased Premises resulting from such taking. All sums awarded  or agreed upon between Landlord and the condemning authority for the taking of the interest of Landlord and/or Tenant, whether as damages or as compensation, and whether for partial or total condemnation, will be the property of the Landlord, except that Tenant shall be entitled to any award for Tenant's moving expenses or personal property (but in  no event shall Tenant be entitled to any award for the loss of the leasehold  estate).  If this Lease should be terminated  under any provisions of this Section, rental shall be payable up to the date that possession is taken by the taking authority, and Landlord will refund to Tenant any prepaid unaccrued rent less any sum or amount then owing by Tenant to Landlord.

13

		
	28.
	ABANDONMENT:  If,  during the term of the Lease, Tenant shall abandon, vacate or remove from  the  Leased  Premises the  major  portion  of the  goods, wares, equipment or furnishings usually kept on said Leased Premises,  and shall cease doing business in said Leased Premises, or shall suffer the rent to be in arrears, Landlord  may,  at  its  option,  cancel  this  Lease  by written  notice  to Tenant  at Tenant's address, or Landlord may enter said Leased Premises as the agent of Tenant by force or otherwise, without being liable in any way therefore, and rel et the Leased Premises with or without any furniture that may be therein as the agent of Tenant,  at such  price and  upon  such terms  and for such  duration  of time  as Landlord may determine  and receive the rent and for such expenses therefore, applying the same to the payment of the sums due by Tenant, and if the full rental herein provided shall not be realized by Landlord over and above the expense to Landlord of such  reletting,  Tenant shall  pay any   deficiency provided  that the Landlord has made reasonable efforts to achieve a fair lease.

		
	29.
	BANKRUPTCY: It is agreed between the parties hereto that: if Tenant shall be adjudicated bankrupt or insolvent or take the benefit of any federal reorganization or compensation  proceeding or make a general assignment or take the benefit of any insolvency law; or, if Tenant's leasehold interest under this Lease shall be sold under any execution or process of law; or if a trustee in bankruptcy or a receiver be appointed or elected or had for Tenant (whether under Federal or State Laws); or if said Premises shall be abandoned or deserted; or if Tenant shall fail to perform any of the terms, provisions, covenants or conditions of this Lease on Tenant's part to be performed; or if this Lease or the Term thereof be transferred or pass to or devolve upon any persons, firms, officers or corporations,  then and in any such event this Lease and the Term of this Lease, at Landlord's option, shall expire and end five  (5)  days  after Landlord  has given Tenant written  notice  of such  act, condition or default and Tenant hereby agrees immediately then to quit and surrender said Leased Premises to Landlord; but this shall not impair or affect Landlord's right to maintain summary proceeding for the recovery of the possession of the Leased Premises in all cases as provided for by law.  If the term of this Lease shall be so terminated, Landlord may immediately or at any time thereafter, re-enter or repossess the Leased Premises and remove all persons and property therefrom without being liable for trespass or damages.

		
	30.
	(DELETED).

		
	31.
	WAIVER: Failure of Landlord to declare any default immediately upon occurrence thereof, or delay in taking any action in connection therewith, shall not waive such default, but Landlord shall the right to declare any such default at any time and take such action as might be lawful or authorized hereunder, in law and/or in equity. No waiver by Landlord of a default by Tenant shall be effective unless contained in a written instrument signed by Landlord.

No waiver of any term, provision, condition or covenant of this Lease by Landlord shall be deemed to imply or constitute a further waiver by Landlord of any other term, provision,  condition or covenant of this Lease.

14

		
	32.
	RIGHT OF ENTRY: Landlord, or any of his agents, shall have the right to enter the Leased Premises at any time for exigent circumstances and during all reasonable hours with  reasonable  notice,  to  examine  the same  or to  make such  repairs, additions or alterations as may be deemed necessary for the safety, comfort or preservation  thereof,  or of the Building, or to exhibit the Leased Premises at any time within one hundred  eighty  (180)  days before  the expiration of this  Lease. Landlord will retain pass keys and any passcodes to gain entry to the entire Premises.  Said right of entry shall also exist for the purpose of removing placards, sign fixtures,  alterations or additions which do not conform to this Lease. 

		
	33.
	NOTICES: Any notice to be given shall be sent by certified mail, or hand delivered to the Parties designated address or to such other place or places as The Parties may specify in writing.

		
	34.
	RULES AND REGULATIONS:  Tenant agrees to comply with all reasonable rules and regulations Landlord may adopt from time to time of operation of the Building and  parking  facilities  and  protection  and welfare  of the  Building  and  parking facilities, the tenants, visitors, and occupants of the Building. The present rules and regulations, with respect to which Tenant hereby agrees to comply, entitled "Rules and Regulations" (Exhibit A) are attached hereto and are by this reference incorporated herein. Any future rules and regulations shall become a part of this Lease and Tenant hereby agrees to comply with the same upon delivery of a copy thereof to Tenant, providing the same are reasonable and do not deprive Tenant of its  rights established under this Lease.

		
	35.
	CONTROL OF COMMON AREAS AND PARKING FACILITIES BY LANDLORD: All automobile parking areas, driveways, entrances and exits thereto, Common Areas and other facilities furnished by Landlord, including all parking areas, truck way or ways, loading areas, pedestrian walkways and ramps, landscaped areas, stairways, corridors, Common Areas and other areas and improvements provided by Landlord for the general use,  in common,  of tenants,  their officers,  agents,  employees, servants, invitees, licensees, visitors, patrons, and customers, shall be at all times subject to the exclusive control and management of Landlord and Landlord shall have  the right from time to time  to change location  and arrangement of parking areas and other facilities herein above referred to; to restrict parking by and enforce parking charges (by operation of meters or otherwise) upon visitors, patrons, and customers; to close all or any portion of said areas legally sufficient to prevent a dedication thereof or the  accrual  of any rights to any  person  or public  areas, common areas or facilities; to discourage non-tenant parking; and to do and perform such other acts in and to said areas and improvements, as, in the sole judgment of Landlord,  the  Landlord  shall  determine  to  be  advisable  with  a  view  to  the convenience  and  use  thereof  by  tenants,  their  officers,  agents,  employees, servants, invitees, visitors, patrons, licensees and customers. Landlord will operate and maintain the Common Areas and other facilities referred to in such reasonable manner as Landlord shall determine from time to time. Without limiting the scope of such discretion,  Landlord shall have the full  right and authority to designate  a manager of the parking facilities and/or Common Area and other facilities who shall have full authority to make and enforce rules and regulations regarding the use of the  same  or to  employ  all  personnel  and to  make  and  enforce  all  rules  and regulations pertaining to and necessary for the proper operation and 

15

maintenance of the parking areas and/or common areas and other facilities.  Reference in this Section to parking areas and/or facilities shall in no way be construed  as giving Tenant hereunder any rights and/or privileges in connection with such parking areas and/or facilities unless such rights and/or privileges are expressly set forth in this Lease.

		
	36.
	SURRENDER  OF LEASED PREMISES: Tenant agrees to surrender lo Landlord, at the end of the term of this Lease and/or upon any cancellation of this Lease, said Leased  Premises  in  as  good  condition  as the  Leased  Premises  were  at the beginning of the term of the Lease,  ordinary wear and tear and damage by fire or other casually not caused by Tenant's negligence, excepted. Tenant agrees that if Tenant does not surrender said Leased Premises lo Landlord at the end of the term of this Lease, then Tenant will pay to Landlord two (2) times the monthly rent paid in the final month of Tenant's term hereunder for each month that Tenant  holds over; in addition Tenant shall pay all damages that Landlord may suffer on account of Tenant's failure to so surrender to Landlord possession of the Leased Premises, and will indemnify and save Landlord  harmless from and against all claims made by  any  succeeding  tenant  of the  Leased  Premises  so  far  as  such  delay  is occasioned by failure of Tenant to so surrender the Leased Premises in accordance herewith or otherwise.

No receipt of money by Landlord from Tenant after termination of this Lease or the service of any suit or final judgment for possession  shall reinstate,  continue or extend the term of this Lease or affect any such notice, demand, suit or judgment.

No act or thing done by Landlord or its agents during the term hereby granted shall be  deemed  an  acceptance  of  a  surrender  of the  Leased  Premises  and  no agreement to accept a surrender of the Leased Premises shall be valid unless it be made in writing and subscribed by a duly authorized officer or agent of Landlord.

		
	37.
	TAXES ON TENANT'S PERSONAL PROPERTY: Tenant shall be responsible for and pay before delinquency all municipal, county or state taxes assessed during the term of this Lease against any occupancy interest or personal property of any kind, owned by or placed in, upon or about the Leased Premises by the Tenant.

		
	38.
	PRIOR OCCUPANCY: If Tenant, with Landlord's consent, shall occupy the Leased Premises prior to the beginning of the Lease term specified in Section 2 hereof, all provisions of this Lease shall be in full force and effect commencing upon such occupancy, and rent for such period shall be paid by Tenant at the same rate herein specified.

		
	39.
	SHORT  FORM  LEASE:  Tenant shall,  if so  required  by Landlord  at any time, execute a short form Lease in recordable form setting forth the name of the parties, the term of the  Lease (stating the  commencement  of Lease term called for  in Section 2), and the description of the Leased Premises, and such other matters as Landlord shall reasonably request.  In no event shall the Tenant record this Lease, any memorandum thereof or reference thereto, amongst the Public Records of any County of the State of Florida without the prior written consent of Landlord. Any violation of this provision by Tenant shall be immediate default hereunder.

16

		
	40.
	WAIVER OF TRIAL BY JURY: Landlord and Tenant hereby waive trial by jury in any action, proceeding or counterclaim brought by either of the parties hereto against the other on any matter arising about, of or in any way connected with the Lease, the relationship  of Landlord and Tenant or Tenant's  use of or occupancy  of the Premises. Tenant further agrees  that it shall not interpose any counterclaim or counterclaims in a summary proceeding or in any action based upon nonpayment of rent or any other payment required of Tenant hereunder.

		
	41.
	(DELETED)

		
	42.
	SEVERABILITY: If any terms, provision, covenant or condition of this Lease or the application thereof to any person or circumstance shall, to any extent be invalid or unenforceable,  the  remainder of this  Lease,  or the  application  of such  terms, provisions, covenant or condition to persons or circumstances other than those as to which it is held invalid or unenforceable shall not be affected thereby and each term,  provision,  covenant  or  condition  of  this  Lease  shall  be  valid  and  be enforceable to the fullest extent permitted by law. This Lease shall be construed in accordance with the laws of the State of Florida.

		
	43.
	TIME: It is understood and agreed between the parties hereto that time is of the essence of all the terms,  provisions,  and covenants and conditions of the Lease.

		
	44.
	DEFINITIONS.

		
	(A)
	The terms  Landlord and Tenant, as herein contained, shall include singular and/or plural, masculine, feminine, and/or neuter, heirs, successors, executors, administrators, personal representatives and/or assigns wherever the context so requires or admits. The terms provisions, covenants and conditions of this Lease are expressed in the total language of this Lease Agreement and the Section headings are solely for the convenience  of the reader and are not intended to be all inclusive.

		
	(B)
	Calendar Year shall be a twelve month period ending on each December 31. 

		
	(C)
	Base Year is  the Calendar Year in  which the Lease Commencement  Date occurs.

		
	(D)
	Base Month is the month in which the lease commences.

		
	(E)
	The Consumer Price Index is the United States Bureau of Labor Statistics, "Revised   Consumer  Price  Index,  for  Urban  Wage  Earners  and  Clerical Workers,  All terms (1967=100)" or any successor  thereto published  by the United States Department of Labor, Bureau of Labor Statistics; provided, that should the said Consumer Price Index or the manner of computing or reporting same be discontinued or changed, the parties shall attempt to agree upon a substitute formula, and failing such agreement the matter shall be determined by  arbitration  in  Jupiter  under  the  Rules  of  the  American   Arbitration Association  then prevailing.

		
	(F)
	Code  shall mean  the City of Jupiter (County,  State, or Federal)  building, Electrical, Air Conditioning, Plumbing or other, as the same may be applicable.

		
	(G)
	Building means the actual structure wherein the Leased Premises are located. 

		
	(H)
	Pro ration of rent shall be over a thirty (30) day month.

17

		
	45.
	TENDER   AND   DELIVERY  OF  LEASE   INSTRUMENT:  Submission   of  this instrument for examination  does  not  constitute  an offer,  right of first  refusal, reservation of or option for the Leased Premises or any other space or premises in, on or about the Building. This instrument becomes effective as a Lease upon execution and delivery by both Landlord and Tenant.

		
	46.
	SERVICES: Services to be provided to Tenant shall be common area janitorial service (weekday nights), automatic elevator service, public stairs, water at points of supply for general use by Tenant throughout the year, electricity, heat and air conditioning as noted herein to be operated Monday through  Friday 7:00 a.m. to 8:00 p.m. and 8:00 a.m. to 1:00 p.m. Saturdays,  excluding legal  holidays.

		
	47.
	JANITORIAL SERVICES: Tenant shall be responsible  for contracting with and payment of janitorial services within their Leased Premises to a quality standard commensurate with other similar quality buildings  in the area. (See Section  7.) Landlord will make available to Tenant a suitable janitorial service.

		
	48.
	WRITTEN AGREEMENT: This Lease contains the entire agreement between the parties hereto and all previous negotiations leading thereto, and it may be modified only by an agreement in writing signed by Landlord  and Tenant.  No surrender of the Leased Premises or of the remainder of the terms of the Lease shall be valid unless accepted by Landlord in writing. Tenant acknowledges  and agrees that Tenant  has not relied upon any statement, representation, prior written or prior contemporaneous oral promises, agreements or warranties  except such as are expressed herein.

		
	49.
	RIGHT TO SELL CONDOMINIUM UNITS: Landlord reserves the right to cause the building and surrounding property, including the leasehold premises, to be converted to a condominium to be created by the Landlord as may be reasonably necessary regarding the creation of the condominium and agrees to execute any and all documents which may be required to create said condominium, provided that such action required  by the Tenant  shall be at no cost to the Tenant.  This action shall not intefere with Tenants Leasehold rights.

		
	50.
	LIMITATIONS  OF  LANDLORD'S  PERSONAL  LIABILITY.  Tenant  specifically agrees to look solely to Landlord's interest in the Building for the recovery of any judgment from  Landlord,  it  being agreed  that  Landlord  (and  any  partners of Landlord and any trustees, officers, shareholders or employees of Landlord) shall never be personally liable for any such judgment. The provisions contained in the foregoing sentence are not intended to, and shall not, limit any right that Tenant might otherwise have to obtain  injunctive relief against  Landlord or Landlord's successors  in interest, or any other action not involving the personal  liability of Landlord's to respond in monetary damages from assets other than Landlord's interest in the Building  of any suit or action in connection with enforcement or collection of amounts which may become owing or payable under or on account of insurance maintained  by Landlord.

18

		
	51.
	SMOKING.  This is a non-smoking building.  Tenant and its employees shall smoke outside the building.  Under no circumstances shall Tenant allow its employees to smoke in the suite, hallways, stairwells, entry way, or elevators of the Building. Tenant and its employees shall not leave remnants or partially smoked items on the grounds except in receptacles specifically designed for the purpose.

		
	52.
	BROKERAGE.  All  parties  agree  that  there  are  no  brokers  involved  in  this transaction.

		
	53.
	Authority. The undersigned represent and warrant that they are duly authorized to enter this contract.

19

IN  WITNESS  WHEREOF,  the parties  hereto  have  signed and delivered this Lease in duplicate at Palm Beach County,  Florida,  on the date written below.

	
			
	LANDLORD:
	 
	TENANT:

	 
	 
	 

	QUENTIN  PARTNERS CO.
	 
	DYADIC INTERNATIONAL,  INC.

	As Agent For:
	 
	 

	lntracoastal  Pointe, Inc.
	 
	 

	 
	 
	 

	 
	 
	 

	/s/ James Q. Riordan, Jr.
	 
	/s/ Mark Emalfarb

	By: James Q. Riordan, Jr.
	 
	Mark Emalfarb

	President
	 
	President & CEO

	
			
	WITNESS:
	 
	WITNESS:

	 
	 
	 

	 
	 
	 

	/s/ Sharon L. Wood
	 
	/s/ Michael I. Faby

	 
	 
	 

	Sharon L. Wood
	 
	Michael I. Faby

	 
	 
	(Printed name of Witness)

	 
	 
	 

	1/5/2011
	 
	28 December 2010

	Date
	 
	Date

20

EXHIBIT A
RULES  AND REGULATIONS

		
	1.
	Landlord reserves the right to refuse access to any persons Landlord in good faith judges to be a threat to the safety, reputation,  or property of the Office  Building  Project and its occupants.

		
	2.
	Tenant shall not suffer or permit the obstruction of any Common  Areas,  including driveways,  walkways, stairways, and doorways of the Building.  These shall not be obstructed or used for any purpose other than ingress to and egress from the units. No furniture, equipment, or other personal articles shall be placed in the entrances, stairways or other common  elements.

		
	3.
	No exterior of any premises or the windows or doors thereof or any other portions of the common elements shall be painted or decorated in any manner by any Tenant. No sign, notice, lettering, or advertising shall be inscribed or exposed on or at any window, door, or at any other part of the Building; nor shall anything be projected out of any window of the building. Tenant shall not be allowed to put their names on any entry to the building or entrance to any unit, except In the proper place provided by the Landlord for such purpose. No protective window film, shades, awnings, window guards, ventilators, fans or air-conditioning devices shall be used in or about the Building or common  elements except such as shall have been approved in writing by Landlord.

		
	4.
	No Tenant shall make or permit any noise or objectionable odor that will disturb  or annoy the occupants  of any of the premises  in  the Building  or do or perm it anything  to be done therein which will interfere with the rights,  comfort, or convenience of other Tenants.

		
	5.
	Each Tenant shall keep his unit in a good state of preservation and cleanliness and shall not sweep or throw or permit to be swept or thrown therefrom, or from the doors or windows thereof, any dirt or other substances. All garbage and refuse from the Building shall be deposited with care In receptacles intended for such purpose only at such times and in  such manner as Landlord  may direct.  Disposal  for all garbage  that is  not in  the course of normal day to day operations -- i.e. shipping boxes for computers printers, filing cabinets, and other large  Items -- must be handled  by tenant at tenant's cost.

		
	6.
	Water closets and other water apparatus  in the Building shall not be used for any purpose other than those for which they were constructed nor shall any sweepings, rubbish, rags, paper, ashes, or any other article be thrown into the same.  Any damage resulting from misuse of any water closet or other apparatus shall be paid for by the Tenant causing such damage.

		
	7.
	The agents of the Landlord and any contractor or workman authorized  by the Landlord may enter any unit at any reasonable hour of the day for any purpose permitted under the terms of the Lease or Building Rules. No Tenant shall engage  any employee of the Landlord for any private  business of the Tenant without prior consent of the Landlord.  Tenant shall  not employ any service  or contractor for services  or work  to  be performed in the Building, except as approved by Landlord.

		
	8.
	No bird or animal shall be kept or harbored In the Building unless the same  in each instance be expressly permitted  in writing by the Landlord.   In  no event shall dogs be permitted  in  any of the public portions of the buildings or development unless carried or on a leash.  The Tenant shall Indemnify the Landlord and hold It harmless against any loss or liability of any kind or character whatsoever arising from or as a result of having any animal in the building.

		
	9.
	No  radio or television aerial shall be attached to or hung from  the exterior of the building without written approval by the Landlord.

		
	10.
	The Landlord shall retain a passkey to each unit.  No Tenant shall alter any lock on any door leading  into his unit without prior consent of the Landlord. Tenant shall not alter any lock or Install new or additional locks or bolts to the common areas of the property.

		
	11.
	No Tenant, or any employee or any client, visitor, or guest of a  Tenant shall be allowed on the roof of the building without the express permission of the Landlord.

		
	12.
	All damage to the building or common elements caused by the moving or carrying of any article therein shall be paid by the Tenant responsible for the presence of such article.

		
	13.
	No Tenant shall interfere In any manner with any portion of the electrical system and lighting apparatus which are  part of the common  elements and not part of the Tenant's.

		
	14.
	No Tenant shall use or permit to be brought into the building any flammable  oils or fluids such as gasoline, kerosene,  naptha,  benzine or other explosives  or any hazardous  materials  or articles  deemed  hazardous to life,  limb or property.

		
	15.
	The Tenant must keep the Interiors of the leased  premises clean and free from obstructions.  The Landlord assumes no liability for loss or damage to articles stored  or placed In  the building.

		
	16.
	Tenant shall be held responsible for the actions of Its employees, visitors, clients, or guests. Any damage to the building or equipment caused by Tenant, its employees, guests, visitors, or clients shall be repaired at the expense of the Tenant.

		
	17.
	Complaints regarding the management of the building and grounds or regarding the actions of other Tenants shall be made in writing to the Landlord.

		
	18.
	Parking of motor vehicles, including  motorcycles, mopeds, trailers,  or bicycles by Tenant, its employees, guests, clients, or visitors shall be only in the space designated as parking; no unattended vehicle shall at any time by left in such a manner as to impede the passage of traffic or to Impair proper access to parking areas. No repair,  cleaning, or maintenance of motor vehicles, Including  motorcycles,  mopeds, trailers, or bicycles shall occur on the property, with exception of emergency repair to have vehicle removed to a qualified  repair facility.  No storage of motor vehicles, including  motorcycles,  mopeds, trailers, bicycles or any objects shall be permitted on the driveway and parking areas and the same shall at all times be kept free of unreasonable accumulation of debris or rubbish  of any kind.

		
	19.
	Supplies, goods,  and packages  of every kind  are  to be delivered in  such a manner as the Landlord or  Its agents  may prescribe  and the Landlord  Is  not responsible for the loss or damage of any such property.

		
	20.
	No  unit shall be  used or occupied  in such manner as to obstruct or interfere with the enjoyment of other occupants, or other residents of adjoining  units,  nor shall any nuisance or immoral or illegal activity be committed or permitted to occur In or about any unit or upon any part of the common element of the property.

		
	21.
	The common elements are intended for use for the purpose of affording vehicular and pedestrian movement within the property and of providing access to the units.  No part of the common elements shall be obstructed so as to Interfere with Its use for the purposes herein above recited nor shall any part of the common elements be used for general storage purposes, nor anything done thereon in any manner which shall increase the rate of hazard and liability insurance covering said area and Improvements situated  thereon.

		
	22.
	Tenant shall be responsible for the inappropriate use of any toilet rooms, plumbing or other utilities. No foreign substances  of any kind are to be inserted  therein.

		
	23.
	Tenant shall not deface the walls, partitions or other surfaces of the premises or Office Building  Project.

		
	24.
	Furniture, significant freight and equipment shall be moved Into or out of the building only with the Landlord's knowledge  and consent,  and subject to such  reasonable limitations, techniques  and timing,  as  may be designated by Landlord. Tenant shall be responsible for any damage to the Office Building Project arising from any such  activity.   Tenant may be  asked  to provide  a deposit against possible  damage  resulting  from movements of the aforementioned.

		
	25.
	Landlord reserves the right to close and lock the Building on Saturdays, Sundays and legal holidays, and on other days  between the hours of 6:00 P.M. and 6:00 A.M. of the following day. If Tenant uses the Premises during such periods, Tenant shall be responsible for securely locking any doors it may have opened for entry.

		
	26.
	Tenant shall return all keys at the termination of its tenancy and shall be responsible for the cost of replacing any keys that are  lost.

		
	27.
	No Tenant,  employee or invitee shall go up on the roof of the Building.

		
	28.
	Tenant shall  not suffer or permit smoking  or carrying  of lighted  cigars or cigarettes  in areas  reasonably designated  by Landlord or by applicable governmental agencies as non-smoking  areas.

		
	29.
	Tenant shall not use any method of heating  or air conditioning other than as provided  by Landlord.

		
	30.
	Tenant shall not  install,  maintain  or operate any vending machines upon  the Premises without Landlord's written  consent.

		
	31.
	The Premises shall not be used for loading  or manufacturing, cooking or food preparation.

		
	32.
	Tenant shall comply with all safety, fire protection and evacuation regulations established by Landlord or any applicable governmental agency.

		
	33.
	Tenant assumes all risks from theft or vandalism and agrees to keep its Premises locked as may be required.

		
	34.
	Landlord reserves the right to waive any one of these rules or regulations, and/or as to any particular Tenant, and any such waiver shall not constitute a waiver of any other rule or regulation or any subsequent application thereof to such Tenant.

		
	35.
	Landlord reserves the right to make such other reasonable rules and  regulations as it may from time to time deem necessary for the appropriate  operation  and safety of the Building  Project and its  occupants. Tenant agrees to abide by these rules and regulations. These Building Rules may be added to or repealed at anytime by the Landlord.

INTRACOASTAL POINTE OFFICE BUILDING 
AMENDMENT TO OFFICE LEASE

This Amendment to Office Lease Agreement made and entered into this 8th day of June, 2018 by and between Quentin Partners Co. as Agent for lntracoastal Pointe, Inc. (both Florida corporations), as "Landlord;" and Dyadic International, Inc., as "Tenant."

WITNESSETH:

WHEREAS, Landlord and Tenant entered into that Office Lease dated December 30, 2010, and the subsequent Amendments; relative to the Leased Premises set forth therein. Premises currently consist of Suite 404 and 405 (4,872 ± s.f.); and

WHEREAS, Landlord and Tenant now desire to extend the term of the lease by twelve months.

TERM: Term will begin on July 1, 2018 and end on June 30, 2019 (unless otherwise terminated
as provided in the Lease).

TOTAL RENT:
7/01/18-6/30/19: $12.50 per square foot; $60,900.00 I year; $5,075.00 I month*
*All rates plus CAM (which shall never be less than $9.30 psf) plus sales tax (currently at 6.8%).

PREMISES: Landlord will deliver premises in an "as is" condition.

Except as set forth herein, all other terms, conditions, provisions and requirements of the Lease remain unchanged and in full force and effect.

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed on the day and year first above written.

	
			
	LANDLORD:
	 
	TENANT:

	QUENTIN  PARTNERS CO.
	 
	DYADIC INTERNATIONAL,  INC.

	As Agent For: lntracoastal  Pointe, Inc.
	 
	 

	 
	 
	 

	/s/ James Q. Riordan, Jr.
	 
	/s/ Mark Emalfarb

	 By: James Q. Riordan, Jr., President
	 
	Mark Emalfarb, CEO

	 
	 
	 

	 
	 
	 

	WITNESS:
	 
	WITNESS:

	 
	 
	 

	/s/ Sharon Wood
	 
	/s/ Heidi Zosiak

	Sharon Wood
	 
	Heidi ZosiakExhibit

Exhibit 10.12
EXECUTION VERSION

[*] indicates that a confidential portion of the text of this agreement has been omitted. The non-public
information has been filed separately with the Securities and Exchange Commission.

PHARMA LICENSE AGREEMENT

This PHARMA LICENSE AGREEMENT (the “Agreement”) is made as of December 31, 2015, and effective as of the Effective Date (as that term is defined below) by and between Danisco US, Inc., a Delaware corporation having a place of business at Building 356, DuPont Experimental Station, Wilmington, Delaware (“Danisco”) and Dyadic International, Inc., a Delaware corporation having its principal office at 140 Intracoastal Pointe Drive, Suite 404, Jupiter, Florida (“Dyadic”). Danisco and Dyadic are each referred to herein by name or, individually, as a “Party” or, collectively, as “Parties.” As used in this Agreement, capitalized terms shall have the meanings indicated in Article 1 of this Agreement or as specified elsewhere in the Agreement. Other capitalized terms used but not otherwise defined herein shall have the meanings assigned to them in the Asset Purchase Agreement.

WHEREAS, pursuant to and in accordance with the terms of the Asset Purchase Agreement, Danisco will acquire all patents, know-how and assets relating to the generation and use of Dyadic’s proprietary Myceliopthora thermophila (formerly classified as Chrysosporium lucknowense, “C1”) technology for the expression of genes and secretion of certain corresponding substances and, in connection therewith, Danisco will acquire ownership of all C1 Strains, as well as the Dyadic Know-How, and Dyadic Materials, including, without limitation, certain Genetic Tools;

WHEREAS, Dyadic desires to obtain, and Danisco is willing to grant to Dyadic access and a co- exclusive license, with the right to enforce, with respect to certain patent rights, materials and related know-how, as more specifically provided for hereinafter, in order to permit Dyadic and its Sublicensees to use the C1 Strains, or the Danisco Improved Strains, as well as certain related Know-How and Dyadic Materials, to offer services and to make, use, sell, offer to sell, have made, import and export compositions of matter, but in each case, solely in the Pharmaceutical Field and on the terms and conditions herein;

WHEREAS, Danisco is willing to provide certain Services, when and if agreed, related to the use of the C1 Strains as a Pharmaceutical Platform, all on the terms and conditions herein, and

WHEREAS, in the event Danisco, Dyadic or its Sublicensees use, as applicable, the C1 Strains or the Danisco Improved Strains to make, have made, use, sell, offer to sell, import or export, Pharmaceutical Products or provide services in the Pharmaceutical Field, the Parties have agreed that certain royalties may be payable based on such sales, in all events in accordance with the terms and conditions herein;

NOW, THEREFORE, in consideration of the mutual covenants and agreements provided herein below and other consideration, the receipt and sufficiency of which is hereby acknowledged, Danisco and Dyadic hereby agree as follows:

1

ARTICLE 1 DEFINITIONS

“Affiliate” means, with respect to any Person, any other Person that is controlled by, controls, or is under common control with such first Person, as the case may be. For purposes of this definition of “Affiliate”, the term “control” means (a) direct or indirect ownership of fifty percent (50%) or more of the voting interest in the entity in question, or fifty percent (50%) or more interest in the income of the entity in question; provided, however, that if local Law requires a minimum percentage of local ownership of greater than fifty percent (50%), control will be established by direct or indirect beneficial ownership of such greater percentage, or (b) possession, directly or indirectly, of the power to direct or cause the direction of management or policies of the entity in question (whether through ownership of securities or other ownership interests, by contract or otherwise).

“Asset Purchase Agreement” means the Asset Purchase and Sale Agreement dated November 9, 2015 between Danisco, Dyadic and Dyadic International (USA), Inc., a Florida corporation, pursuant to which Danisco will acquire certain assets related to C1 Strains, on the terms and subject to the conditions set forth therein.

“C1 Genomic Information” means the genome sequence of C1 Strains and any associated annotations, software, software tools related thereto, all as more fully described in Exhibit A.

“C1 Strain(s)” means, individually and collectively, the Myceliophthora thermophila strains acquired by Danisco from Dyadic or its Affiliates pursuant to the Asset Purchase Agreement.

“Confidential Information” means any information of a confidential and proprietary nature, whether oral, written, visual, electromagnetic, or in any other form, which is disclosed by a Party or Licensed Party and which is designated as being confidential in writing within three (3) Business Days of the date of disclosure. Confidential Information does not include information which (i) is or becomes generally available to the public other than as a result of a disclosure by the receiving Party or its Representatives in breach of this Agreement, (ii) is or becomes available to the receiving Party or its Representatives from a source other than the disclosing Party or its Representatives, which such source is not known by the receiving Party to be subject to a contractual obligation to the Disclosing Party prohibiting such disclosure, or (iii) is independently developed by the receiving Party or its Representatives by persons who, the receiving Party can demonstrate by clear and convincing evidence, had no access to, and developed such information without reference to the Confidential Information of the disclosing Party.

“Control” or “Controlled” means ownership or possession of the ability to assign, grant access, license or sublicense, with the right, inter alia, to use, as provided for, in any case without violating the applicable terms of any agreement or other arrangement with any Third Party.

2

“Danisco Background Technology” means Know-How and Genetic Tools known to Danisco and its Affiliates prior to the Effective Date.

“Danisco Background Tool” means any Genetic Tool that consists essentially of either (a) a Genetic Tool owned or controlled by Danisco or any Affiliate of Danisco prior to the Effective 
Date or that is developed or obtained by Danisco or any Affiliate of Danisco not pursuant to the Services, or (b) such a Genetic Tool that is modified as part of the provision of the Services solely in order to enable use of such Genetic Tool in a C1 Strain or a Danisco Improved Strain. For the avoidance of doubt, the foregoing does not include, and expressly, excludes the Genetic Tools acquired pursuant to the Asset Purchase Agreement and any Services Generated Genetic Tools.

“Danisco Confidential Information” means (i) Confidential Information, created after the Effective Date, relating to any C1 Strain, C1 Genomic Information, Dyadic Material, Danisco Improved Strain, Genetic Tool, Dyadic Know-How, or Danisco Know-How licensed by Danisco under this Agreement, and (ii) Confidential Information of Danisco learned by Dyadic as a result of Danisco’s performance of the Services or the transfer of technology pursuant to Article 3.

“Danisco Know-How” means Know-How regarding C1 Strains or Danisco Improved Strains (i) which is actually used and/or developed by the Designated Employees in the course of providing Services to grow any C1 Strain or Danisco Improved Strain to express any Pharmaceutical Product, (ii) which Danisco is free to disclose without breaching any bona fide obligations of confidentiality to any Third Party, and (iii) which is useful with respect to the use of the C1 Strains or Danisco Improved Strains in the Pharmaceutical Field. Notwithstanding anything herein to the contrary, Know-How not actually used in the course of providing Services and included in the definition of Danisco Background Technology is not included in Danisco Know- How unless necessary to grow any C1 Strain or Danisco Improved Strain transferred to Dyadic to express any Pharmaceutical Product. Know-How developed under the Services provided for in Exhibit B which has no known utility in the Pharmaceutical Field shall not be deemed to be Danisco Know-How.

“Danisco Improved Strain” means a C1 Strain modified to express or secrete a Pharmaceutical Product where the performance or characteristics of such C1 Strain, including, without limitation, with respect to any composition of matter produced or expressed therein, has been materially altered as a result of work done by or on behalf of Danisco pursuant to Exhibit B and where such C1 Strain, as materially altered, would, to one reasonably skilled in the art, be useful in the Pharmaceutical Field.

“Danisco Patents” means those Patents, other than the Dyadic Patents, Controlled by Danisco after the Effective Date reasonably necessary for the use of any C1 Strain or modified C1 Strain in the Pharmaceutical Field, including, but not limited to, use thereof as a Pharmaceutical Platform but excluding any claim of such a Patent that exclusively covers, as a composition of matter or method of manufacture, (a) the specific structure, other than as a generic claim, of a Pharmaceutical Product, or (b) an industrial enzyme; provided, however, that the foregoing shall not be interpreted in a manner which limits or 

3

otherwise interferes with Dyadic or its Sublicensees’ right hereunder with respect to any Pharmaceutical Product that has a different structure, including, without limitation, a distinct amino acid or chemical structure.

“Dyadic Confidential Information” means (i) the identity, characteristics, uses, including any indication, and/or genetic sequence of any Pharmaceutical Product owned, Controlled or being worked on by Dyadic or its Sublicensee, including with respect to which Services will be provided under Exhibit B (ii) Dyadic’s selection criteria or assay for identifying Pharmaceutical
Products that can be expressed by C1 Strains, (iii) Confidential Information which Danisco, through its Relationship Manager, agrees in writing to receive after Dyadic discloses in writing and in general the contents of such Confidential Information, provided, however, the Relationship Manager shall not refuse to except such information as Confidential Information, if such information is reasonably necessary for Danisco to perform the Services provided in Exhibit B and (iv) all Confidential Information disclosed by Dyadic pursuant to Section 2.1(b). Notwithstanding the foregoing, in the event that the identity of a Pharmaceutical Product and/or the identity of any pharmaceutical companies interested in such Pharmaceutical Product becomes publicly available, then the identity, characteristics, uses, including any indication, of such Pharmaceutical Product, the fact that Dyadic is interested in producing such Pharmaceutical Product, and/or the fact that Dyadic is working with any such pharmaceutical company with respect to such Pharmaceutical Product shall not be considered to be Dyadic Confidential Information.
“Dyadic Know-How” means the Transferred Know-How relating to the engineering, production, fermentation, composition and use of C1 Strains, as such information existed as of the Effective Date.
“Dyadic Material(s)” means the materials set forth on Exhibit A.
“Dyadic Patents” means the Transferred Patents related to the composition and use of C1 Strains.
“Dosage Forms” means the final dosage form in which a Pharmaceutical Product will be administered to a human or animal.
“Effective Date” means the Closing Date of the Asset Purchase Agreement.
“Genetic Tools” means any composition of matter and genetic elements useful for using, manipulating, engineering, transforming, transfecting, modifying or altering a C1 Strain that was transferred to Danisco pursuant to the Asset Purchase Agreement. Without limiting or expanding the foregoing, Genetic Tools shall include those identified on Exhibit A.
“Improvement” means (a) with respect to each licensee of Dyadic or its Affiliates under a Transferred Agreement, the definition given to that term in the applicable Transferred Agreement, and (b) any modification to a C1 Strain, Genetic Tool, Dyadic Know-How, or 

4

Dyadic Material which improves the ability or characteristics of a C1 Strain with respect to the expression or screening of products other than Pharmaceutical Products.
“Industrial C1 Strain” means any C1 Strain which, to one ordinarily skilled in the art, is primarily useful outside the Pharmaceutical Field and has no significant utility inside the Pharmaceutical Field.
“Industrial C1 Patents” means Patents exclusively covering the practice or use of the Industrial C1 Strains.
“Know-How” means, to the extent necessary or reasonably useful to the use of a C1 Strain or Danisco Improved Strain, any and all technical information, regulatory information, processes, 
procedures, methods, formulae, protocols, and techniques relating thereto, including, without limitation, the information and fermentation protocols listed on Exhibit A. Expressly included in Know-How is any such Know-How relating to C1 Genomic Information or Genetic Tools.

“Law” means, individually and collectively, any and all laws, ordinances, orders, rules, rulings, directives and regulations of any kind whatsoever of any governmental, court or regulatory authority within the applicable jurisdiction, including the Patent laws of any relevant jurisdiction.

“Licensed Parties” means (a) Dyadic and (b) direct and indirect Sublicensees of Dyadic.

“Net Sales” means all revenues received in connection with the sale of a Pharmaceutical Product or a Dosage Form which was produced, with respect to sales by Danisco, using a C1 Strain or an improved C1 Strain, or, with respect to sales by a Licensed Party, using any C1 Strain or improved C1 Strain where such production is covered by a Danisco Patent minus (i) import, export, excise and sales taxes, and custom duties; (ii) costs of insurance, packing, and transportation customarily charged in the industry; and (iii) rebates, credits and allowances provided with respect to such sales.

“Patents” means (a) United States, Patent Cooperation Treaty, and non-US national patents, re- examinations, reissues, renewals, extensions and term restorations, utility models and registrations, design patents, inventors’ certificates and counterparts thereof; and (b) pending applications for United States and foreign patents, including, without limitation, provisional applications, continuations, continued prosecution, divisional and substitute applications, and counterparts thereof.

“Person” means any individual, corporation, partnership, association, joint-stock company, trust, unincorporated organization or government or political subdivision thereof.

“Pharmaceutical Field” means the development and use of a C1 Strain as a Pharmaceutical Platform for the research, discovery, development, manufacture or commercialization of any Pharmaceutical Product.

5

“Pharmaceutical Improvement” means any modification to a C1 Strain, Genetic Tool, Dyadic Know-How, or Dyadic Material which improves the ability or characteristics of a C1 Strain with respect to the expression or screening of Pharmaceutical Products.

“Pharmaceutical Patent” means the claim of any Patent covering a composition of matter consisting of a specific Pharmaceutical Product identified by biologic activity relevant to the Pharmaceutical Field, chemical structure or amino acid sequence or the expression of such amino acid sequence for such specific Pharmaceutical Product in a C1 Strain. For the avoidance of doubt, a Pharmaceutical Patent does not include a Patent which claims the production of a class of Pharmaceutical Products (e.g., vaccines or antibodies) in a C1 Strain or Danisco Improved Strain or using any Know-How, including Dyadic Know-How, Dyadic Materials, or Danisco Know-How, specifically relating thereto.

“Pharmaceutical Platform” means a C1 Strain useful for the discovery, development, expression, modification, improvement, manufacture or commercialization of a composition of matter comprising a Pharmaceutical Product.

“Pharmaceutical Product” means (i) an active pharmaceutical ingredient or active moiety intended for the treatment, diagnosis or prophylaxis of any disease or medical condition in a human or any other animal, (ii) an intermediate which is subsequently processed into an active pharmaceutical ingredient, or (iii) a processing aid used in the production of an active pharmaceutical ingredient. Notwithstanding the foregoing, a Pharmaceutical Product does not mean any enzyme, protein, reactant or biosynthetic product sold as an industrial enzyme and used industrially in grain sugar or fiber processing, animal nutrition, food applications, personal care, fabric and home care, or biofuels and any other application for which industrial enzymes have been traditionally used. With respect to the foregoing sentence, it is understood that a composition of matter that also may have functionality with respect to the excluded categories set forth therein shall not be deemed to be excluded from the definition of a Pharmaceutical Product when intended for the treatment, diagnosis or prophylaxis of any disease or medical condition in a human or any other animal.

“Sanofi Agreement" means an agreement titled "Proof of Concept, Exclusive License Option & Technology Transfer Agreement" entered into between Sanofi Pasteur S.A., EnGen BIO, Inc., and Dyadic Nederland B.V., dated March 30, 2011, as amended.

“Services” means the activities set forth in Exhibit B, as such Exhibit B may be amended or supplemented, the operative and other provisions of which are incorporated herein as if set forth in full.

“Services Generated Tools” means Genetic Tools generated in the course of the provision of the Services. For the avoidance of doubt expressly excluded from the definition of Services Generated Tools is any Danisco Background Tool.

6

“Sublicensee” means any Person doing business in the Pharmaceutical Field (other than Sanofi Pasteur S.A. and its Affiliates and then solely to the extent relating to a sublicense granted pursuant to Section 2.1(a)(v) hereof) which is a direct or indirect sublicensee of Dyadic in accordance with the terms of this Agreement or to which any C1 Strain, Dyadic Know-How, Dyadic Materials, Danisco Improved Strain, Danisco Know-How, Genetic Tool, or any Dyadic Patent or Danisco Patent is sub-licensed by Dyadic under a written Sublicense Agreement granted in all events in compliance with the requirements of Section 2.1(b) of this Agreement.
“Sublicense Agreement” means an agreement between Dyadic and a Sublicensee that meets the requirements set forth in Section 2.1(b).
“Third Party” means any Person other than Danisco, Dyadic, any Affiliate of either Danisco or Dyadic, or any Sublicensee.
“Transferred Contract Party” means a party to a Transferred Contract other than Dyadic, Dyadic International (USA), Inc., a Florida corporation, or Dyadic Netherland BV. For the purposes of this Agreement, each reference to a Transferred Contract shall be a reference to the Transferred 
Contract as it exists as of the Effective Date, it being understood that Danisco may enter into amendments to or extend the term of any Transferred Contract where (i) such amendment or term extension is unrelated to the Pharmaceutical Field; (ii) does not extend any additional rights to the counterparty to the Transferred Contract in the Pharmaceutical Field and (iii) such amendment does not alter, waive, amend or diminish the rights of Licensed Parties with respect to the Pharmaceutical Field.

ARTICLE 2 LICENSE AND TECHNOLOGY TRANSFER

2.1 Grants to and Covenants by Dyadic and Dyadic Sublicensees and Sublicensing

		
	(a)
	License Grants

		
	(i)
	Subject to the terms and conditions of this Agreement, Danisco on behalf of itself and its Affiliates hereby grants to Dyadic:

(A) a co-exclusive (as between Danisco and Dyadic, but subject to the rights of any Third Party under any Transferred Contract), a non- transferable (except as provided in Section 10.3), worldwide, royalty free, perpetual (subject to Section 9.2) license, with the right to enforce (subject to Section 4.2), and grant sublicenses pursuant to and in accordance with this Section 2.1(a) and Section 2.1(b), to use the C1 Strains, the Dyadic Materials, and the Danisco Improved Strains, and practice under the Dyadic Patents,

(B) a non-exclusive, non-transferable (except as provided in Section 10.3), worldwide, royalty free, perpetual (subject to Section 9.2) 

7

license, with the right to grant sublicenses pursuant to and in accordance with this Section 2.1(a)(i) and Section 2.1(b), to use the Genetic Tools (excluding Danisco Background Technology and Danisco Background Tools), the Services Generated Tools, the Dyadic Know-How and Danisco Know-How,

in the case of (A) and (B) solely to: (1) make, have made (subject to Section 2.1(b)), use, sell, offer to sell, export and import Pharmaceutical Products and (2) provide services using the C1 Strains and any improved C1 Strain, including Danisco Improved Strains but excluding any Danisco Background Technology or Danisco Background Tool embodied therein, as a Pharmaceutical Platform, in both cases, solely for use in the Pharmaceutical Field. Such right to grant sublicenses does not include the further right of any Sublicensee to further sublicense the C1 Strains, the Danisco Improved Strains, the Dyadic Know-How, the Danisco Know-How, the Dyadic Materials, the Genetic Tools, the Services Generated Tools, and the Dyadic Patents for any purpose except to the extent necessary to have Third Parties conduct contract research on behalf of a Licensed Party regarding use of C1 Strains, Dyadic Materials or the Dyadic Know-How or modifications thereto as a Pharmaceutical Platform or for a Sublicensee to exercise its “have made”
rights or, with respect to a Pharmaceutical Product, to grant limited sublicenses within multiple tiers of Sublicensee Affiliates or Third Parties solely to permit manufacturing, distributing or marketing such Pharmaceutical Product on behalf of such Sublicensee.

(ii) Subject to the terms and conditions of this Agreement, Danisco on behalf of itself and its Affiliates hereby grants to Dyadic a non-exclusive, non-transferable (except as provided in Section 10.3), worldwide, royalty free, perpetual (subject to Section 9.2) license with the right to grant sublicenses pursuant to and in accordance with this Section 2.1(a)(i) and Section 2.1(b), to use the Danisco Background Technology and the Danisco Background Tools solely to express the specific polypeptide expressed by the Danisco Improved Strain as to which the Services were provided using such Danisco Background Technology or such Danisco Background Tool. Such right to grant sublicenses does not include the further right of any Sublicensee to further sublicense the Danisco Background Technology and the Danisco Background Tools except to permit the expression of the specific polypeptide expressed by the Danisco Improved Strain as to which the Services were provided with respect to such Danisco Background Tool or Danisco Background Technology.

(iii) Subject to the terms and conditions of this Agreement, Danisco on behalf of itself and its Affiliates hereby grants to Dyadic a co-exclusive (as between Danisco and Dyadic, but subject to the rights of any Third Party under any Transferred Contract), non-transferable (except as provided in Section 10.3), worldwide, royalty bearing, perpetual (subject to Section 9.2) right and license, 

8

with the right to grant sublicenses and to enforce (subject to Section 4.2), pursuant to and in accordance with this Section 2.1(a)(ii) and Section 2.1(b), to practice under the Danisco Patents to (A) make, have made (subject to Section 2.1(b)), use, sell, offer to sell, export and import Pharmaceutical Products and (B) provide services using the C1 Strains or a Danisco Improved Strain as a Pharmaceutical Platform, in both cases, solely for use in the Pharmaceutical Field. Such right to grant sublicenses does not include the further right of any Sublicensee to further sublicense the Danisco Patents for any purpose except to the extent necessary to have Third Parties conduct contract research using the C1 Strains or for a Sublicensee to exercise its “have made” rights or, with respect to a Pharmaceutical Product, to grant limited sublicenses within multiple tiers of Sublicensee Affiliates or Third Parties solely to permit manufacturing, distributing or marketing such Pharmaceutical Product on behalf of such Sublicensee.

(iv)With respect to the grant provided for in Section 2.1(a)(iii), such grant shall be royalty bearing in accordance with the following table:

[*]

Such royalty shall be payable to Danisco within thirty (30) Business Days from the end of each calendar quarter by Dyadic or its Sublicensee and a report regarding Net Sales shall be provided to Danisco. Dyadic and its Sublicensees, no more than once every twelve (12) months, shall permit an audit of their books and records by a national accounting firm designated by Danisco. Such accounting firm shall confirm the accuracy of any royalty calculation and shall not disclose to Danisco any other information of Dyadic or its Sublicensees other than the correct calculation of Net Sales and the amount of the royalty payable to Danisco. In the event that such audit reveals an underpayment of any royalty of more than one percent (1%), the Licensed Party which is obligated to pay such royalty shall reimburse Danisco for the cost of such audit.
Notwithstanding the foregoing, in the event that Danisco owes a royalty or other payment to a Third Party as a result of the use by a Licensed Party of the rights licensed under Section 2.1, the Licensed Party, exercising its sole judgment, shall either forego the right to proceed under such licensed right or, in addition to the royalties provided for above, reimburse Danisco for all payments due to any such Third Party arising from such use upon delivery of an invoice therefor. With respect to any rights provided for in this paragraph, the Licensed Parties shall abide by any conditions for such use applicable to Danisco activities in the Pharmaceutical Field and negotiated in good faith. During the period in which Services are provided, if either Party identifies potential opportunities for in-licensing technology suitable for use in improving C1 Strains as Pharmaceutical Platform, then such Party may provide notice to the patent committee referenced below for consideration. Subject to obligations of confidentiality, prior to using any technology which would result in application of the first sentence of this paragraph, notice will be provided to Dyadic. Within a reasonable time after such notice, but in any event within sixty (60) days after receipt of such notice, Dyadic shall be free to provide alternatives or 

9

comment on such technology and Danisco shall consider such advice; provided however Danisco may proceed or not in its sole discretion exercised in objective good faith.

Except with respect to rights foregone by a Licensed Party pursuant to the preceding paragraph, Danisco and its Affiliates shall not assert, subject to the payment of any royalty provided for herein, as applicable, any Dyadic Patent or Danisco Patent or make a claim of misappropriation or breach of confidentiality, with respect to any Danisco Background Technology (but only to the extent rights are granted to such Danisco Background Technology as set forth in the next sentence), Danisco Know-How, Dyadic Know-How, Dyadic Materials or Genetic Tools against any Licensed Party which, in accordance with the limitations provided for herein, is using a C1 Strain, Dyadic Know-How, Dyadic Materials, Danisco Improved Strain, Danisco Know-How, or Genetic Tool in providing services using C1 Strains as a Pharmaceutical Platform or to produce Pharmaceutical Products, in each case, in compliance with its obligations to Danisco under this Agreement and any Sublicense Agreement. For the purposes of the foregoing, the right granted with respect to any Danisco Background Technology only extends so far as is reasonably necessary for a Licensed Party to actually grow any C1 Strain, C1 Improved Strain or any progeny thereof actually provided by Danisco pursuant to the provision of Services under this Agreement, or express or purify any Pharmaceutical Product which is the subject of a Service, or if such Danisco Background Technology is publically available.

(v) Danisco, on behalf of itself and its Affiliates, hereby grants to Dyadic an exclusive, but subject to the rights of any Third Party under any Transferred Contract, non-transferable, worldwide, royalty free, license, with the right to enforce (subject to Section 4.2), and grant a sublicense solely to Sanofi Pasteur S.A. or its Affiliates in accordance with the terms of the Sanofi Agreement, to use the C1 Strains, the Dyadic Materials, and practice under the Dyadic Patents solely to make, have made, use, sell, offer for sale, or import Products (as that term is defined in Exhibit B to the Sanofi Agreement) for use solely in [*] vaccines. Dyadic shall promptly notify Danisco in the event that (A) Sanofi Pasteur S.A. (or its affiliate, assignee or successor) exercises the License Option (as defined in the Sanofi Agreement), (B) the Option Period (as defined in the Sanofi Agreement) expires, (C) the Sanofi Agreement terminates or expires prior to the exercise of the License Option and/or (D) the license agreement contemplated by the Sanofi Agreement or any sublicense agreement executed among the parties in connection therewith and pursuant to this Section 2.1(a)(iv) terminates or expires. In the event that the Option Period expires prior to the exercise of the License Option, the Sanofi Agreement terminates or expires prior to the exercise of the License Option or the license agreement contemplated by the Sanofi Agreement or any sublicense agreement executed among the parties in connection therewith and pursuant to this Section 2.1(a)(v) terminates or expires, the license set forth in this Section 2.1(a)(v) shall automatically terminate and this Section 2.1(a)(v) shall be of no further force or effect.

(b)    Sublicenses. The license granted pursuant to Section 2.1(a)(i) and (ii) includes the right to grant sublicenses within the scope of such license solely as set forth in this Section 2.1(b) pursuant to a written agreement (each a “Sublicense Agreement”) which will contain provisions consistent with the following:

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	(i)
	Each Sublicense Agreement shall include this Agreement as an attachment after redaction of Sections 3.2, 3.3 and 3.4.

		
	(ii)
	Each Sublicense Agreement shall include a provision which reads as follows: 

“Sublicensee acknowledges that it has read the Pharma License Agreement entered into between Danisco US Inc. and Dyadic International Inc. and agrees to be bound by the provisions of such License Agreement as if it were a party to such License Agreement. For the avoidance of doubt, this includes the provisions of Section 10.7 regarding resolution of disputes.”

		
	(iii)
	Each Sublicense Agreement shall include a provision which reads as follows:

“Sublicensee agrees that Danisco US Inc. or any authorized assignee of Danisco US Inc. is an intended third party beneficiary to any Sublicense Agreement and shall be entitled to enforce the terms of this Agreement directly against Sublicensee.”

		
	(iv)
	Each Sublicense Agreement shall include a provision which reads as follows:

“This Sublicense Agreement shall not be further sublicensed except that, as applicable, the C1 Strains, the Danisco Improved Strains, the Dyadic Know-How, the Dyadic Materials, Dyadic Patents, Danisco Know-How, the Genetic Tools and the Danisco Patents may be further sublicensed to the extent necessary to Third Parties having no economic interest in the Pharmaceutical Product under development to provide contract research services or contract manufacturing services for a Licensed Party, for a Sublicensee to exercise its ‘have made’ rights or, with respect to a Pharmaceutical Product, to grant limited sublicenses within multiple tiers of Sublicensee Affiliates or Third Parties solely to permit manufacturing, distributing or marketing such Pharmaceutical Product on behalf of such Sublicensee under terms no less restrictive than the terms set forth in Section 2.2 of the Pharma License Agreement entered into between Danisco US Inc. and Dyadic International Inc. ”

During January of each year during the Term of this Agreement, Dyadic shall notify Danisco in writing of the identity and address of each active Sublicensee, and when publicly available, shall promptly report to a designated risk manager at Danisco or an Affiliate of Danisco, who shall not share the information except as needed to assess and manage risk, the identity and proposed indication of the Pharmaceutical Product that is the subject of the Sublicense. All such disclosures shall be deemed to be Dyadic Confidential Information.

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2.2 Covenants by Licensed Parties

(a)    Licensed Parties shall not (i) use any C1 Strain, improved C1 Strain, Dyadic Know-How, Dyadic Materials, Danisco Know-How, Danisco Improved Strain, Genetic Tools, or practice under the Dyadic Patents or Danisco Patents outside of the Pharmaceutical Field and shall exercise the rights licensed hereunder in compliance with applicable law, or (ii) transfer, license or grant access to any C1 Strain, improved C1 Strain, Dyadic Know-How, Dyadic Materials, Genetic Tools, Danisco Know-How, Danisco Improved Strain, Dyadic Patents or Danisco Patents or derivatives thereof to any Third Party other than in accordance with this Agreement. Any uncured breach of this covenant by a Sublicensee or Dyadic, when finally adjudicated in accordance with Article 10, shall be a material breach of, as applicable, this Agreement or the Sublicense Agreement. Dyadic agrees to notify Danisco in writing within fifteen (15) Business Days if Dyadic has a reasonable basis to believe that any Sublicensee has breached this covenant. In addition to the right of Danisco to proceed separately against any such Sublicensee, Dyadic shall take all commercially reasonable measures to prevent any such Sublicensee from continuing such breach, provided, however, that Danisco shall be given the right to elect which entity takes the initial enforcement step within ten (10) Business Days of the report of a potential breach. Subject to the foregoing sentence and Danisco’s right pursuant to Section 9.2(a) hereof, the Parties will work in good faith to allocate the responsibility for resolving such allegations of unlicensed use cooperatively, it being understood that Danisco shall have the final say.

(b)    In the event that Danisco has a reasonable basis to believe that any Licensed Party or Sanofi is using or has used C1 Strain, Dyadic Know-How, Dyadic Materials, Genetic Tools, Danisco Know-How, Danisco Improved Strain or derivatives thereof or practiced under the Dyadic Patents or Danisco Patents in a manner that is inconsistent with the terms of this Agreement, Danisco shall, within fifteen (15) Business Days of its first having such a reasonable basis, provide written notice to Dyadic describing such use and providing reasonable detail as to the basis for the allegation that such use is not permitted by this Agreement. As soon as practicable, but in no event later than fifteen (15) Business Days after Dyadic’s receipt of such written notice, the Parties shall confer, either in person or by telephone, to discuss and attempt to resolve Danisco’s concerns. In the event that Danisco’s concerns are not resolved in such conference, Dyadic will initiate an investigation regarding Danisco’s concerns and will, subject to any confidentiality obligations it may have, provide to Danisco a summary of its findings. The Parties will work in good faith to allocate the responsibility for resolving such allegations of unlicensed use cooperatively. In addition to the right of Danisco to proceed separately against any such Sublicensee, Dyadic shall take all commercially reasonable measures to prevent any such Sublicensee from continuing such breach, provided, however, that Danisco shall be given the right to elect which entity takes the initial enforcement step within ten (10) Business Days of the report of a potential breach. Subject to the foregoing sentence and Danisco’s right pursuant to Section 9.2(a) hereof, the Parties will work in good faith to allocate the responsibility for resolving such allegations of unlicensed use cooperatively, it being understood that Danisco shall have the final say.

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(c)    In all circumstances of an actual or alleged breach of the obligations provided for under this Section 2.2, Dyadic or the applicable Sublicensee shall be free to deny that the allegations are true, that the allegations are not prohibited by this Agreement, or contend that the operative provisions of the Sublicense Agreement are immaterial. In such a case, no breach will be deemed to have occurred unless and until it has been finally adjudicated under the dispute resolution procedures of Section 10.7 of this Agreement or the applicable Sublicense Agreement that there has been a material breach of the obligations provided for under this Agreement and that Danisco will suffer or has suffered more than a de minimis injury as a result thereof.

(d)    Dyadic (on behalf of itself, its predecessors, successors, and their respective successors, parent and subsidiary corporations, together with each of their assigns, and legal representatives) hereby covenants and agrees, and shall cause its Affiliates and Sublicensees and Sanofi (each a “Dyadic Party”) to covenant and agree in a written agreement not to commence, aid, prosecute or cause to be commenced or prosecuted, any legal action or other proceeding against any Transferred Contract Party or any of its Affiliates, or any of its or their successors and assigns, or any of its or their licensees, sublicensees, third-party toll manufacturers, or direct or indirect customers or distributors solely in connection with the exercise of the rights granted to such Transferred Contract Party in accordance with the applicable Transferred Contract wherein any Dyadic Party alleges infringement (direct or contributory) or inducement of infringement of any Patent owned or Controlled by such Dyadic Party claiming an Improvement as defined in Part (a) of that definition. Nothing in the foregoing shall be deemed to include a Pharmaceutical Patent not required to be included in such covenant unless adjudicated to be so included.

2.3 Ownership of Patents and Grant of Rights to Danisco

(a)    Patents based on inventions created or made by Danisco, a Third Party under Danisco’s Control, or jointly with such Third Party that (i) arise out of the Services and (ii) which would constitute a Pharmaceutical Patent, shall be solely owned by Dyadic. All other Patents which are based on inventions created or made by Danisco, a Third Party under Danisco’s Control or jointly with such Third Party as a result of the Services or inventions made by Danisco outside of the Services shall be owned solely by Danisco.

(b)    Inventions, Pharmaceutical Improvements, or Know-How made by a Licensed Party, a Third Party under a Licensed Party’s control, or jointly with such Third Party, and any resulting Patents, which relate solely to the Pharmaceutical Field, including, without limitation, any improvements to the C1 Strains, Dyadic Know-How or Dyadic Materials which relate solely to the Pharmaceutical Field shall be, as between Dyadic and Danisco, solely owned by Dyadic. Such Patents, when disclosed publically, are hereby licensed to Danisco in accordance with the other terms of this Agreement, including, without limitation, the royalty provisions of Section 3.4. Each Licensed Party, on its own behalf and on behalf of any Third Party it Controls will not attempt to make any Improvements or inventions solely outside of the Pharmaceutical Field and will not, without Danisco’s prior written consent, file for Patents or make any disclosure of any invention with applicability 

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solely outside of the Pharmaceutical Field. In the event that any Industrial C1 Strain or Industrial C1 Patents or any invention, Improvement, or Know-How relating exclusively thereto is created, each Licensed Party will promptly disclose such invention, Improvement, or Know-How relating exclusively thereto to Danisco and, in accordance with the provisions of this Agreement will immediately assign, without consideration, all such Industrial C1 Strains or Industrial C1 Patents or any invention, Improvement, or Know-How relating exclusively thereto to Danisco.

(c)    Inventions, Improvements, or Know-How made by a Licensed Party, a Third Party under a Licensed Party’s Control, or jointly with such Third Party, and any resulting Patents, which have applicability both within and without the Pharmaceutical Field shall be solely owned by Danisco, provided, however, if a Licensed Party, using objective evidence, can establish that the potential use of such inventions, Improvements, or Know-How outside the Pharmaceutical Field is de minimis, it shall be owned by the Licensed Party, provided, however, that if Danisco, in good faith, objectively exercised, concludes that the dissemination of any C1 Strain or Danisco Improved Strain or Know-How that embodies such an Improvement could cause more than a de minimis injury to Danisco’s activities outside of the Pharmaceutical Field, then Danisco shall own such inventions, Improvements, or Know-How and any resulting Patents. Such Patents, inventions, Improvements, or Know-How covered by this Section 2.3(c) are hereby licensed under Section 2.1 to Dyadic or under Section 2.3(f), 2.3(g) and 2.3(h) to Danisco in accordance with the other terms of this Agreement, including, without limitation, as applicable the royalty provisions of Sections 2.1 and 3.4, it being understood that any such Patent, invention, Improvement, or Know-How made by a Licensed Party, a Third Party under a Licensed Party’s Control, or jointly with such Third Party and as to whose ownership is transferred to Danisco shall not be royalty-bearing with respect to any use under this Section 2.3 with respect to any Licensed Party. For the avoidance of doubt, inventions, and any Patent claims arising therefrom, comprising any modification of any C1 Strain, the Dyadic Know-How or the Dyadic Materials to enable or improve the production of Pharmaceutical Products, including without limitation, claims relating to compositions of matter that meet the definition of Pharmaceutical Product and that contain non-immunogenic or human-like proteins or groups, sugars and acids, are solely inside the Pharmaceutical Field. For the further avoidance of doubt, subject to rights granted to Third Parties under the Transferred Contracts, Danisco shall have no right and shall quitclaim any right or license under this Agreement under any Patent claim owned by a Sublicensee covering exclusively the use of specific production hosts other than C1 Strains to produce Pharmaceutical Products and such Patent rights shall be owned by the Sublicensee which made the invention which resulted in the Patent.

(d)    Where Dyadic physically transfers to a Sublicensee any untransformed or untransfected C1 Strain or Danisco Improved Strain, all such physical transfers shall be under a valid, written Sublicense Agreement containing provisions extending to Danisco the rights provided for in Section 2.3(b) and (c). In the event that Dyadic is unable to obtain such rights from any potential transferee, then Dyadic may not physically transfer to such Sublicensee any C1 Strain or Danisco Improved Strain other than a C1 Strain that has been transformed or transfected to express or secrete a specific Pharmaceutical Product and 

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under conditions prohibiting such Sublicensee from reverse engineering such transformed or transfected C1 Strain to its untransformed or untransfected state.

(e)    All inventions, Improvements, Pharmaceutical Improvements, or Know-How developed or used in the performance of Services by Danisco, a Third Party under Danisco’s Control, or jointly with such Third Party, not otherwise covered by Sections 2.3(a), (b) or (c), shall be owned by Danisco.

(f)    With respect to any Patent where the ownership rights are assigned to a Licensed Party under this Agreement, the Licensed Party hereby grants to Danisco an exclusive, irrevocable, worldwide, royalty free license, with the right to sublicense, to make, have made, use, sell, offer for sale, import or export any product that is outside of the Pharmaceutical Field, provided, however, that such license shall not cover the production of the Pharmaceutical Products in production hosts other than C1 Strains.

(g)    With respect to any Patent where the ownership rights are assigned to a Licensed Party under this Agreement, the Licensed Party hereby grants to Danisco a non-exclusive, irrevocable, worldwide, royalty bearing license, without the right to sublicense, to make, have made, use, sell, offer for sale, import or export any product in the Pharmaceutical Field.

(h)    Subject to the restrictions set forth in Section 3.3, with respect to any Patent where the ownership rights are assigned to a Licensed Party under this Agreement, the Licensed Party hereby grants to Danisco a non-exclusive, irrevocable, worldwide, royalty free license without the right to sublicense, to research and develop any product in any field including the Pharmaceutical Field.

2.4    No Implied Licenses. Neither Danisco nor any Licensed Party (or any sublicensee of any Licensed Party) has any rights or obligations under this Agreement except as expressly stated herein. Danisco retains all rights in and to the C1 Strains, Danisco Improved Strains, Genetic Tools, Dyadic Know-How, Danisco Know-How, Danisco Background Technology, Dyadic Materials, Dyadic Patents, and Danisco Patents except for the grants of rights for the periods as expressly provided under the terms of this Agreement.

ARTICLE 3 SERVICES TO BE PROVIDED BY DANISCO AND PAYMENTS

3.1 Services
Each Party shall appoint a single individual (the “Relationship Manager”), who may be replaced on written notice to the other Party, to manage the provision of the Services and to discuss any potential deviations or changes in the deliverables or work-plans that may be agreed hereunder. The Relationship Manager shall not have the authority to modify this Agreement, including, without limitation, the Services, deliverables and work-plans provided for in Exhibit B, or to otherwise bind, as applicable, Danisco or Dyadic. Any modification to any work-plans shall be agreed to by the Parties in writing. The 

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Relationship Manager will be primarily responsible for all communications regarding the Services and coordinating the activities to be performed by each Party related to the Service.
Promptly after the Effective Date, Danisco shall ask Transferred Employees, to the extent such Transferred Employees remain employed by Danisco or its Affiliates, to continue the work in the Pharmaceutical Field that they were performing prior to the Effective Date, and the Relationship Managers shall meet to review the current status of Dyadic’s work to use C1 Strains for the production of Pharmaceutical Products and Dyadic’s objectives for the Services including the identity of the Pharmaceutical Products to be produced, and realistic milestone objectives for expression of such Pharmaceutical Products in the C1 Strains listed in Exhibit A. Based on the available information and such preliminary work with the C1 Strains as Danisco may believe to be necessary to determine the feasibility of using C1 Strains for production of the Pharmaceutical Products designated by Dyadic, the Parties, using commercially reasonable efforts for a period of up to sixty (60) days from the Effective Date, shall negotiate in good faith to agree upon a work plan covering those subjects set forth in Exhibit B that sets forth in greater detail the Services and the objectives of the Parties. Upon agreement to such work plan, Danisco will designate employees of Danisco or any Affiliate of Danisco (herein the “Designated Employees”) who will be assigned to implement the work plan. Such work-plan shall be signed by the Parties and become Exhibit B to this Agreement. Nothing shall require Danisco to agree to any Services, objective or milestone that in its judgment cannot realistically be accomplished in C1 Strains, in facilities maintained by Danisco and its Affiliates or by the Designated Employees. Subject to this Section 3, if the Parties shall execute Exhibit B, for a period of three (3) years from the Effective Date or until Dyadic terminates the Services, Danisco shall use its good faith efforts to provide the Designated Employees with the necessary time and laboratory resources to enable them to perform the Services and attempt to achieve Dyadic’s objectives. Danisco may change the identity of the Designated Employees at any time and from time to time by written notice to Dyadic. Dyadic acknowledges that the Services involve research and that the results of research and the timing of such results will always be uncertain.
Dyadic agrees that it will minimize to the maximum extent possible the disclosure of Dyadic Confidential Information to Danisco and shall only provide such information to those Designated Employees who have a need to know.
Through the Relationship Manager, Danisco will inform and obtain written consent from Dyadic's relationship manager prior to the application of any Danisco Background Technology in the course of providing Services. In the event such Danisco Background Technology is applied in the course of providing Services, Dyadic or, as applicable, a Licensed Party, shall be free to use, royalty-free, with, a right of sub-license as provided for in Section 2.1(a)(i) and 2.1(a)(ii), such Danisco Background Technology and/or any Danisco Background Tools, solely as is reasonably necessary to grow the C1 Strain or Danisco Improved Strain to express the Pharmaceutical Product with which it has been transformed or transfected, in each case, to the extent such C1 Strain, Danisco Improved Strain or Pharmaceutical Product were the subject of Services provided hereunder.

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In the event that the Parties do not agree to a detailed Exhibit B within sixty (60) days of the Effective Date or at any time after such detailed Exhibit B has been in effect for six (6) months, Dyadic may terminate the obligation of Danisco to provide the Services and the obligation of Dyadic to pay for Services (other than any Services rendered prior to the effectiveness of such termination) by providing Danisco with thirty (30) days prior written notice of such termination. In such event, during such thirty (30) day period Danisco shall, pursuant to the license set forth in Section 2.1, transfer progeny of such C1 Strains, or if applicable Danisco Improved Strains, that have been developed pursuant to the Services, as well as any Dyadic Know-How, Danisco Know-How, the Genetic Tools listed in Exhibit A, and any Services Generated Tools which relate to C1 Strains in the Pharmaceutical Field, and Danisco shall submit its final invoice to Dyadic for the FTEs used in performing work in the Pharmaceutical Field for Dyadic and in transferring technology to Dyadic pursuant to the following paragraph.
During the period when Danisco is providing Services, or during the 60 day period after the Effective Date, Danisco will, upon request by Dyadic, use commercially reasonable efforts to transfer to Dyadic or, if Dyadic does not currently employ or have access to Persons with technical training, Sanofi or its Affiliates, or a Sublicensee information sufficient to enable persons of ordinary skill in the art to grow Danisco Improved Strains and express Pharmaceutical Products in such Danisco Improved Strains, and use and grow the Danisco Improved Strains and the C1 Strains and the Genetic Tools and information listed in Exhibit A, and any Services Generated Tool to express Pharmaceutical Products (hereinafter defined as “Technology Transfer Services”), provided, however, it being understood that any such use by the Licensed Parties of the information to be provided pursuant to the Technology Transfer Services shall in all events be subject to the terms of this Agreement. Nothing herein shall require Danisco to (i) transfer technology regarding how to use Danisco Background Technology or Danisco Background Tools except with respect to the use of such Danisco Background Technology or Danisco Background Tools to grow a Danisco Improved Strain and express a Pharmaceutical Product in such Danisco Improved Strain or (ii) transfer technology that has been previously transferred five times to an employee or contractor of Dyadic with technical training. During the 60 day period after the Effective Date, and during the period Services are provided, if any, and at the end of such period, Danisco shall engage in regular technology transfer activities as reasonably requested by Dyadic, and also transfer activities as relating to the Services and any deliverables to be provided pursuant to Exhibit B, provided, however, that any such use by the Licensed Parties of such transferred technology shall in all events be subject to the terms of this Agreement. Dyadic shall have a period of six (6) months after termination of the period during which Danisco is obligated to provide Services to request additional technology transfer services with respect to the technology to be transferred under this paragraph. After such six (6) month period, Danisco’s obligation to transfer under this paragraph shall be deemed to be complete.

Danisco makes no and expressly disclaims any, and Dyadic disclaims reliance on any, express or implied representation or warranty regarding the success of such efforts, 

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training and education, and Dyadic acknowledges that not all Pharmaceutical Products will be able to be produced in C1 Strains.

Danisco shall keep Dyadic reasonably informed of progress with respect to data, Services, Services Generated Tools, and the Danisco Improved Strains generated under the Services other than Danisco Background Tools. Danisco shall provide Dyadic with detailed quarterly written reports regarding details and results of the Services.

During the 60 day period after the Effective Date, and during the period that Services are being provided under this Agreement, and for six (6) months after termination of Services, Danisco shall provide Dyadic reasonable access to, and use rights and Know-How related to, (i) the Transferred Books and Records pertaining how to modify, use and grow C1 Strains in the Pharmaceutical Field, including without limitation, any records evidencing lab notebooks, inventions or discoveries made by employees of Dyadic or any Affiliate of Dyadic prior to the Effective Date, (ii) all genomic and other data, regulatory filings and approvals relating to C1 Strains obtained or made by Dyadic prior to the Effective Date, and (iii) all toxicity and pathogenicity data including but not limited to the data generated as part of the submission and approval of the U.S. Food and Drug Administration Generally Regarded as Safe (“GRAS”) Notification #292, and any and all additional data generated subsequent to the GRAS #292 Notification, but prior to the Effective Date of the Pharma License. Licensed Parties acknowledge that Danisco makes no and expressly disclaims any, and Licensed Parties disclaim reliance on any express or implied representations or warranties regarding any strain produced by Danisco for Dyadic or any other Licensed Party, that Danisco makes no makes no and expressly disclaims any, and Licensed Parties disclaim reliance on any, express or implied representation or warranty regarding the safety or efficacy of any Pharmaceutical Product produced by such strain, and that Danisco makes no and expressly disclaims any, and Licensed Parties disclaim reliance on any, express or implied representation or warranty regarding the Services or that any strain or any Pharmaceutical Product or that the manufacture of such Pharmaceutical Product does not infringe the intellectual property rights of any Third Party.

After the termination of the Services or with Danisco’s prior written consent, Dyadic will be free, without liability of any kind, to solicit up to five (5) employees of Danisco who are Transferred Employees and who have been providing Services to Dyadic with respect to the Pharmaceutical Field to resign from Danisco and become employees of Dyadic. Prior to such solicitation, Dyadic will give the Relationship Manager thirty (30) days notice indicating the names of the Transferred Employees to be solicited and Dyadic will cooperate with Danisco to permit the transition of any work activities being undertaken by such employee to another employee, provided, however, that in no event shall any such employee be delayed more than sixty (60) days in accepting employment and working for a Licensed Party.
3.2  Dyadic Payments To Danisco for Services

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Dyadic shall make payments to Danisco for Full Time Equivalents (which is 1,720 hours per year or an “FTE”) used by Danisco to provide the Services. Without Dyadic’s prior written consent, Danisco will not assign more than [*]. FTEs to provide such Services. Danisco shall keep records with respect to the allocation of time spent by Designated Employees in providing Services and shall invoice Dyadic at the end of each calendar quarter for Services provided pursuant to Section 3.1 at the greater of (a) [*] annual rate per FTE multiplied by FTEs utilized during that quarter, and (b) [*] per calendar quarter. In addition, Dyadic shall reimburse Danisco for any Third Party costs reasonably incurred in providing Services. Danisco shall request Dyadic’s approval for any Third Party expenditure in excess of [*] in the aggregate during any calendar year. Dyadic shall pay such invoice within thirty (30) days from receipt.
In the event that Dyadic does not consent to reimburse Danisco for Third Party costs contemplated by Exhibit B, Danisco shall have no obligation to perform the Services associated with such Third Party expenditures.

3.3 Danisco Business Activities
Except as expressly set forth in this Section 3.3, nothing in this Agreement shall prevent Danisco or any Affiliate of Danisco from engaging in any business using any strain, Know-How or Dyadic Materials licensed or developed hereunder, from selling any Pharmaceutical Product, from providing services to any Third Party, or from using the C1 Strains, Dyadic Know-How, Dyadic Materials and Danisco Improved Strains, Genetic Tools, Danisco Know-How, Dyadic Patents, Danisco Patents or any other Know-How in any business or field, including, but not limited to, engaging in business in the Pharmaceutical Field or in the business of researching, developing, producing or selling any Pharmaceutical Product or Dosage Form. As an express limitation on the foregoing, until the sooner of [*], Danisco will not grant sublicenses to Third Parties to use any C1 Strain (which for the purposes of all of Section 3.3 includes a Danisco Improved Strain) in the Pharmaceutical Field or provide any C1 Strain, Dyadic Know-How (only as it relates to the Pharmaceutical Field) or Dyadic Material or modified C1 Strain or modified Dyadic Materials or Know-How relating thereto (which for the purposes of this Section 3.3 shall include Danisco Know-How (only as it relates to the Pharmaceutical Field)) (“Restricted Materials”) to any Third Party, for use in the Pharmaceutical Field except that (i) Danisco may provide Restricted Materials for use in the Pharmaceutical Field to Third Parties pursuant to and in accordance with the terms and conditions of any Transferred Contract and (ii) Danisco may provide, but not sublicense, Restricted Materials to any Third Party providing contract research services, tolling services, or manufacturing services for Danisco or any Affiliate of Danisco where such use is solely in providing such services for Danisco or such Affiliate and where such Third Party is not directly or indirectly the entity that sells, markets or distributes the Dosage Form (each a “Service Provider”), and (iii) without limitation to the foregoing, Danisco may provide Know-How concerning C1 Strains, Genetic Tools, the Dyadic Know-How, the Danisco Know-How, the Dyadic Materials, Danisco Improved Strains or any derivatives thereof useful for creating or modifying such C1 Strains, Danisco Improved 

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Strains or any derivatives thereof to any Third Party or government agency to the extent that such information is necessary for legal or regulatory reasons. For the avoidance of doubt, Danisco is not subject to any restriction regarding use of or sublicensing of any C1 Strain or modified C1 Strain for uses outside the Pharmaceutical Field nor is Danisco subject to any restriction regarding the transfer of any C1 Strain or modified C1 Strain for uses outside of the Pharmaceutical Field.
Any transfer of a C1 Strain for use in the Pharmaceutical Field permitted by this Section 3.3, which such transfer is made prior to the sooner of [*], will be accompanied by a valid written agreement, directly enforceable by Dyadic against the transferee, that: (i) implements the restrictions provided for by this Section 3.3; (ii) expressly excludes the right to use such Restricted Materials in the Pharmaceutical Field except as permitted above, and (iii) gives written notice that Dyadic has co-exclusive rights, with the rights to enforce the contractual restrictions set forth in Section 3.3, to use the C1 Strains and the Dyadic Materials in the Pharmaceutical Field and that Dyadic is an intended third party beneficiary of such restrictions on the use of the Restricted Materials in the Pharmaceutical Field.
Nothing herein (including, but not limited to, the previous sentence) shall require Danisco to commence any proceeding against any Third Party to enforce any restriction on the use of any Restricted Materials in the Pharmaceutical Field or otherwise, provided, however, Danisco will use commercially reasonable efforts to prevent such use and will cooperate fully with Dyadic at Dyadic’s expense to enforce its rights under this License Agreement and the written agreement required herein. In the event that Dyadic identifies to Danisco any Third Party which it believes is using any Restricted Materials in ways that are inconsistent with the foregoing, Dyadic may provide the name of such Third Party to Danisco and Danisco will advise Dyadic if such Third Party has received such Restricted Materials pursuant to an agreement with Danisco contemplated by this Section 3.3. Once each calendar year, Dyadic may provide Danisco with a written notice requesting confirmation that Danisco has not provided Restricted Materials to Third Parties for use in the Pharmaceutical Field except to the extent that such transfer is permitted by Article 3 of this Agreement. In such event, Danisco shall respond to such Dyadic request.

[*]

3.4 Danisco Payments to Dyadic
With respect to any Pharmaceutical Product produced in a C1 Strain by Danisco or an Affiliate of Danisco, Danisco shall, at the end of each calendar quarter commencing on the first commercial sale of such Pharmaceutical Product and until [*] after the first commercial sale of such Pharmaceutical Product, pay to Dyadic the royalty provided for in the table below.
With respect to any Pharmaceutical Product produced in a C1 Strain by Danisco or an Affiliate of Danisco, Danisco shall at the end of each calendar quarter commencing on the [*] anniversary of the first commercial sale of such 

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Pharmaceutical Product and until [*] after the first commercial sale of such Pharmaceutical Product, pay to Dyadic the royalty provided for in the table below provided that, and only as long as, (i) Dyadic owns at least one non-expired valid patent claiming the production, use or sale of such Pharmaceutical Product by Danisco, or (ii) Danisco is practicing under a non-expired Dyadic Patent to produce, use or sell such Pharmaceutical Product.
[*]
Danisco agrees that where the production or sale of a Pharmaceutical Product or Dosage Form that is produced in a C1 Strain or Danisco Improved Strain, and where such production or sale is covered by a valid claim of a Patent owned by a Sublicensee of Dyadic pursuant to the terms of this Agreement, whether such Patent is subsequently assigned to Danisco or Dyadic, the applicable royalty rate will be increased by [*]. Thus, as an illustrative example, the applicable rate for the use of such C1 Strain or Danisco Improved Strain with respect to arm’s length sales of a Dosage Form where Danisco is the selling party of such Dosage Form and a C1 Strain or Danisco Improved Strain covered by a valid claim of a Patent owned by a Sublicensee of Dyadic is used to produce a composition of matter that is not an active ingredient but that is used to create an active ingredient included in a Dosage Form would be [*] and not [*].
Such royalty shall be payable to Dyadic within thirty (30) Business Days from the end of each calendar quarter by Danisco and a report regarding Net Sales shall be provided to Dyadic. Danisco, no more than once every twelve (12) months, shall permit an audit of their books and records by a national accounting firm designated by Dyadic. Such accounting firm shall confirm the accuracy of any royalty calculation and shall not disclose to Dyadic any other information of other than the correct calculation of Net Sales and the amount of the royalty payable to Dyadic. In the event that such audit reveals an underpayment of any royalty of more than one percent (1%), Danisco shall reimburse Dyadic for the cost of such audit.

ARTICLE 4 DISCLOSURE OF INVENTIONS AND RESULTS; PROSECUTION, MAINTENANCE AND ENFORCEMENT OF PATENTS

4.1    Disclosure Obligations

During the period for which Services are being provided by Danisco to Dyadic, Danisco shall provide to Dyadic pursuant to the terms of the licenses set forth in Article 2 the deliverables specified under the Work Plan, any Dyadic Material, Danisco Improved Strain, and Danisco Know-How, in each case which is developed by the Designated Employees in the course of providing Services during the Services period and that has utility in the Pharmaceutical Field. Notwithstanding the foregoing, nothing shall require Danisco to disclose information which is subject to confidentiality obligations to Third Parties or disclose Danisco Background Technology, except where such disclosure of Danisco Background Technology is necessary to grow the C1 Strain or Danisco Improved 

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Strain to express the Pharmaceutical Product with respect to which such C1 Strain and/or Danisco Improved strain has been transformed or transfected.

After the sooner of three (3) years from the Effective Date or, in the event Dyadic terminates Services, the date of such termination, except for Dyadic’s and, as applicable, its Sublicensee’s obligations relating to inventions relating to the Industrial C1 Strains or Industrial C1 Patents, neither Party nor any Licensed Party shall be obligated to disclose any invention, Improvement, Pharmaceutical Improvement, or Know-How to the other Party or any Licensed Party.

4.2 Prosecution and Enforcement of Patents

(a)    Danisco shall have the exclusive right to control, at its sole expense, the filing, registration, prosecution, maintenance, enforcement and defense (such as responding to oppositions, nullity actions, re-examinations, revocation actions and similar proceedings) including the right to refrain from filing or maintaining, any Patents or patent applications, covering an invention where ownership is allocated to Danisco or such Patents are otherwise Controlled by Danisco. Notwithstanding the foregoing in the case of substantiated allegations of infringement activity in the Pharmaceutical Field under any Patents owned or Controlled by Danisco pursuant to this Agreement or the Asset Purchase Agreement, Dyadic, shall have the first option to enforce and to control any such action for infringement claim asserted by Dyadic. Danisco shall have the option to join in asserting a claim for infringement and participate in any settlement discussions and shall have a share in the recovery of any damages or settlement terms, after appropriate compensation to Dyadic and, if applicable, Danisco for expenses incurred including, without limitation, attorney’s fees, in proportion to the damages established by each Party. Without limiting the foregoing, Dyadic’s enforcement rights shall include the right to cause Danisco to execute such documents, including joining litigation as a party, as may be required to permit Dyadic to enforce any applicable Patents against any infringers, but solely with respect to the Pharmaceutical Field. No settlement agreement may without Danisco’s written consent limit Danisco’s rights with respect to C1 Strains, Dyadic Materials, or Dyadic Know-How or Danisco’s rights under this Agreement.

(b)    Each Licensed Party shall have the exclusive right to control, at its sole expense, the filing, registration, prosecution, maintenance, enforcement and defense (such as responding to oppositions, nullity actions, re-examinations, revocation actions and similar proceedings) including the right to refrain from filing or maintaining, any Patents or patent applications, covering an invention where ownership is allocated to the Licensed Party.

(c)    If a Party decides to decline to control the filing, registration, prosecution or maintenance of any Patents or patent applications it owns or Controls pursuant to Section 2.3 of this Agreement (the “Declining Party”), the Declining Party will immediately notify the other Party of such decision in writing, in order to give the other Party (the “Acting Party”) the opportunity, at its sole discretion, to assume responsibility for the filing, registration, prosecution or maintenance of such Patents or patent applications before such Patents or patent applications are potentially negatively impacted by the Declining Party’s 

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decision, including without limitation the Acting Party being barred from acting by virtue of the lapse of any official Patent Registry deadlines. If the Acting Party provides the Declining Party with written notice of its decision to assume responsibility for the filing, registration, prosecution or maintenance of these Patents or patent applications no later than thirty (30) days after receipt of the Declining Party’s notice, then Declining Party promptly will assign all right, title and interest the Declining Party has in such Patents or patent applications to the Acting Party, and the Acting hereby grants to the Declining Party an irrevocable non-assert to the Declining Party and the Declining Party’s Affiliates and Customers under such assigned Patent or patent applications provided that such non-assert as it applies to Dyadic shall be limited to the scope of rights granted to Dyadic in Section 2.1.

(d)    Within thirty (30) days of the execution of this Agreement, the Parties will establish a patent committee to review ownership allocations in accordance with Section 2.3 of this Agreement as well as receive updates on the filing, prosecution and maintenance of Patents that are subject to this Agreement. Such patent committee shall meet on a regular basis when determined by such committee. The patent committee shall be comprised of one (1) representative of each Party and include representation of the Party’s patent groups. The Parties agree that, to the extent possible and to the extent consistent with either Party’s internal patent strategy, any Patents containing inventions specifically related to the Pharmaceutical Field will be filed as independent Patents from inventions relating within and without the Pharmaceutical Field. The Parties also agree that prior to imitating any interferences relating to Patents within the Pharmaceutical Field, the matter will be reviewed in the first instance by the patent committee who shall attempt to resolve any matters in good faith. The Parties also agree that disputes relating to the characterization of inventions arising under this Agreement will first be presented to the patent committee, where the Parties will discuss in good faith how to characterize the invention. If the Parties are unable to reach a conclusion, the patent committee shall have the authority to decide the matter, subject to the dispute resolution procedures provided for in Section 10.7.

ARTICLE 5 CONFIDENTIALITY

5.1 Confidentiality Obligations. Each Party agrees that for seven (7) years after the termination or expiration of this Agreement, all Danisco Confidential Information and all Dyadic Confidential Information disclosed under this Agreement shall be maintained in strict confidence by the receiving Party, and shall not be used by the receiving Party for any purpose other than the purposes expressly permitted by this Agreement, and shall not be disclosed by the receiving Party to any Third Party except to Sublicensees and to permitted Third Parties such as contract research and/or manufacturing entities which have agreed in writing to obligations of confidentiality and non-use consistent with the obligations of the Parties under this Agreement.

5.2 Permitted Usage. Each of Danisco and any Licensed Party may use and disclose Confidential Information of the other Party as follows: (a) under appropriate confidentiality provisions no less restrictive than those in this Agreement, in connection with the performance of its obligations or exercise of rights granted to such Party in this 

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Agreement, including, without limitation Sublicensee and Third Party acting as contract researchers; (b) in connection with the filing for, prosecution, maintenance and enforcement of Patents where ownership of the invention to which such Patent relates is assigned to such Licensed Party in accordance with this Agreement; (c) in connection with prosecuting or defending litigation, complying with applicable governmental regulations, filing for, obtaining and maintaining regulatory approvals, or as otherwise required by Law or as permitted by this Agreement; (d) in communication with potential or actual Sublicensees who prior to such disclosure have agreed in writing to be bound by obligations of confidentiality and non-use no less restrictive than the obligations set forth in this Article 5; (e) in confidence to potential or actual investment bankers, advisors (including without limitation financial advisors and accountants), investors, lenders, acquirers, merger partners, or other potential financial or strategic partners, and their attorneys and agents) on a need to know basis who, prior to such disclosure, have agreed in writing to be bound by obligations of confidentiality and non-use no less restrictive than the obligations set forth in this Article 5; provided, however, that the receiving Party shall remain responsible for any failure by any Person who receives Confidential Information pursuant to this Section 5.2 to treat such Confidential Information as required under this Article 5; (f) to the extent mutually agreed to by the Parties in writing, or (g) under appropriate confidentiality provisions no less restrictive than those in this Agreement, in connection with, and solely to the extent necessary for, Danisco’s performance of its obligations to any Third Party under any Transferred Contract. For clarity, nothing in this Section 5.2 expands the permitted use or disclosure of any C1 Strain, Dyadic Materials, Danisco Improved Strain, Genetic Tools, Dyadic Know-How, Danisco Know-How, Dyadic Patents or Danisco Patents beyond the rights expressly licensed under Article 2.

5.3 Confidential Terms. Except as provided herein, each of the Parties agrees not to disclose to any Third Party the terms and conditions of this Agreement without the prior approval of the other Party. Notwithstanding the foregoing, a Party may disclose the terms of this Agreement in confidence to its Affiliates in connection with the performance of this Agreement and solely on a need-to-know basis; to potential or actual Sublicensees, who prior to disclosure must agree to be bound by obligations of confidentiality and non-use no less restrictive than the obligations set forth herein; or in confidence to potential or actual investment bankers, advisors (including without limitation financial advisors and accountants), investors, lenders, acquirers, merger partners, or other potential financial or strategic partners, and their attorneys and agents) on a need to know basis who, prior to such disclosure, have agreed in writing to be bound by obligations of confidentiality and non-use no less restrictive than the obligations set forth in this Article 5; provided, however, that the receiving Party shall remain responsible for any failure by any Person who receives Confidential Information pursuant to this Section 5.3 to treat such Confidential Information as required under this Article 5. In addition, a Party may disclose the existence (but not the terms and conditions) of this Agreement to Third Parties, subject to Section 5.5.

5.4 Exceptions for Applicable Law or Regulation. Notwithstanding anything to the contrary in this Article 5, a Party may disclose any Confidential Information of the other Party or the terms of this Agreement that is required to be disclosed under Law (including, 

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without limitation, the requirements of securities filings); provided that, except where impracticable, such Party shall give the other Party reasonable advance notice of such disclosure requirement (which shall include a copy of any applicable subpoena or order) and shall afford the other Party a reasonable opportunity to oppose, limit or secure confidential treatment for such required disclosure. In the event of any such required disclosure, a Party shall disclose only that portion of the Confidential Information of the other Party that is required by Law to be disclosed and, in the event a protective order is obtained by the other Party, nothing in this Article 5 shall be construed to authorize the Party that is subject to the disclosure requirement to use or disclose any Confidential Information of the other Party to any Person other than as required by Law or beyond the scope of the protective order. A Party may disclose this Agreement if required to be disclosed by Law to the extent, and only to the extent, such Law requires such disclosure and, in such an event, such Party provides the other Party a reasonable opportunity to review and comment on the general text of such disclosure, which comments shall be incorporated by the disclosing Party if reasonable under the circumstances.

5.5 Public Announcements. Except to the extent required by Law, no Party shall make any public announcement concerning this Agreement or the terms hereof without the prior written consent of the other Party, such consent not to be unreasonably withheld or delayed. Once such consent has been given, the Party as to whom consent has been given shall be free to make public announcements or disclosures substantially similar to that already approved by the other Party. Upon the Effective Date, Dyadic may make a public announcement in a form to be reasonably agreed to by Danisco advising Third Parties that it is licensed to use certain C1 Strains and related technology in the Pharmaceutical Field and, after agreement by the Parties with respect to a detailed Exhibit B, that Danisco is providing certain services for Dyadic. In addition, Dyadic may advise potential Sublicensees of the existence and terms of this Agreement except that the provisions of Article 3 shall not be disclosed to any Third Party. Within sixty (60) days of the Effective Date, the Parties shall negotiate in good faith with respect to those Sections of this Agreement and the rights of the Parties hereunder that may be disclosed without further consent of both Parties. Notwithstanding the foregoing, after notice to the other Party and after appropriate consideration of any objection from such other Party, each Party shall be free to make all such disclosures as may be required by applicable securities or disclosures law.

ARTICLE 6 INDEMNIFICATION

6.1 Indemnification of Danisco. The Licensed Parties shall indemnify, defend and hold Danisco and its Affiliates, agents, employees, officers, and directors (the “Danisco Indemnitees”) harmless from and against any and all liability, damage, loss, cost, or expense (including without limitation reasonable attorneys’ fees) arising out of claims or suits related to: (a) breach by any Licensed Party of any of its representations, warranties, or covenants under this Agreement; (b) the negligence or willful misconduct of Dyadic or its Affiliates or Sublicensees, and it’s or their directors, officers, agents, employees, or consultants; (c) any use, exploitation or sublicense by, or under the authority of, Dyadic, any Affiliate of Dyadic or any Sublicensee of the licenses granted under Section 2.1,

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 including, without limitation, any development, manufacture, distribution, offer for sale, sale, export, or transfer of any C1 Strain, Dyadic Material, Danisco Improved Strain or any Pharmaceutical Product or Dosage Form; and (d) any Service provided by Danisco or its Affiliates pursuant to Article 3; provided, however, that Dyadic’s obligations under Section 6.1(d) will not apply if it has been determined pursuant to Section 10.7 that such liability is due primarily to the willful and knowing misconduct of any of the Danisco Indemnitees.

6.2 Indemnification of Dyadic. Danisco shall indemnify, defend and hold Dyadic and its Affiliates, agents, employees, officers, and directors (the “Dyadic Indemnitees”) harmless from and against any and all liability, damage, loss, cost, or expense (including without limitation reasonable attorneys’ fees) arising out of claims or suits related to intentional misconduct in the performance of the Services (if applicable) which irreversibly injures Dyadic.

6.2 Procedure. As a condition for either a Danisco Indemnitee or a Dyadic Indemnitee to receive indemnification under this Agreement, it shall: (a) promptly deliver notice in writing (a “Claim Notice”) to the Party from whom it seeks an indemnification as soon as it becomes aware of a claim or suit for which indemnification may be sought (provided that the failure to give a Claim Notice promptly shall not prejudice the rights of the applicable Danisco Indemnitee or Dyadic Indemnitee except to the extent that the failure to give prompt notice materially adversely affects the ability of the indemnifying party to defend the claim or suit); (b) cooperate with the indemnifying party in the defense of such claim or suit; and (c) if the indemnifying party confirms in writing to the Danisco Indemnitee or Dyadic Indemnitee its intention to defend such claim or suit within ten (10) days after receipt of the Claim Notice, permit the indemnifying party to control the defense of such claim or suit, including without limitation the right to select defense counsel; provided that, if the indemnifying party fails to (i) provide such confirmation in writing within such ten (10) day period or (ii) after providing such confirmation, diligently and reasonably defend such suit or claim at any time, the indemnifying party’s right to defend the claim or suit shall terminate immediately and the Danisco Indemnitee or Dyadic Indemnitee may assume the defense of such claim or suit at the sole expense of the indemnifying party but may not settle or compromise such claim or suit without the consent of the indemnifying party, not to be unreasonably withheld or delayed. In no event, however, may the indemnifying party compromise or settle any claim or suit in a manner which admits fault or negligence on the part of any Danisco Indemnitee or Dyadic Indemnitee or that otherwise materially affects such Danisco Indemnitee or Dyadic Indemnitee’s rights under this Agreement or otherwise, or requires any payment by an Danisco Indemnitee or Dyadic Indemnitee without the prior written consent of such Danisco Indemnitee or Dyadic Indemnitee. Except as expressly provided above, the indemnifying party will have no indemnity liability under this Agreement with respect to claims or suits settled or compromised without its prior written consent.

ARTICLE 7 REPRESENTATIONS, WARRANTIES AND COVENANTS

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7.1 General. Each Party represents and warrants to the other that: (a) it is duly organized and validly existing under the Law of the jurisdiction of its incorporation, and has full corporate power and authority to enter into this Agreement and to carry out the provisions hereof; (b) it is qualified to do business and is in good standing in each jurisdiction in which it conducts business; (c) duly authorized to execute and deliver this Agreement and to perform its obligations hereunder, and the person executing this Agreement on its behalf has been duly authorized to do so by all requisite corporate action; (d) this Agreement is legally binding upon it and enforceable in accordance with its terms and the execution, delivery and performance of this Agreement by it does not conflict with any agreement, instrument or understanding, oral or written, to which it is a party or by which it may be bound, nor violate any material Law; and (e) it is not aware of any action, suit or inquiry or investigation instituted by any Person which questions or threatens the validity of this Agreement.

7.2 Representations and Covenants by Danisco. Danisco represents and warrants that, subject to any deficiencies in title with respect to assets acquired from Dyadic under the Asset Purchase Agreement, it has good legal title to all Dyadic Patents, Danisco Patents, Dyadic Know-How, Danisco Know-How, Dyadic Materials and Danisco Improved Strains that are licensed pursuant to Article 2 and that it is not party to any agreement (other than any Transferred Contract) with any Third Party that is inconsistent with the terms of this Agreement. Except to the extent contemplated by any Transferred Contract, Danisco shall take no action that would permit any Person that is a party to a Transferred Contract to assert any Patent covering an Improvement against any Licensed Party.

7.3 Representations, Warranties and Covenants By Licensed Parties. Each Licensed Party represents and warrants that: (i) it has the all rights to any Pharmaceutical Product that will be the subject of any Service provided by Danisco pursuant to Article 3; and (ii) it is and will continue to be in compliance with all Laws relating to the research, development, manufacture, commercialization and sale of any Pharmaceutical Product or Dosage Form that is produced pursuant to the license granted in Article 2 or with respect to which Danisco provides Services pursuant to Article 3.

7.4 Disclaimer. EXCEPT AS PROVIDED IN THIS ARTICLE 7 (AND WITHOUT LIMITATION TO ARTICLE 3 HEREOF), DANISCO MAKES NO, AND THE LICENSED PARTIES DISCLAIM RELIANCE ON ANY, REPRESENTATION OR WARRANTY (EXPRESS, IMPLIED, STATUTORY OR OTHERWISE) WITH RESPECT TO THE SUBJECT MATTER OF THIS AGREEMENT, INCLUDING WITHOUT LIMITATION WITH RESPECT TO THE SERVICES, ANY DYADIC MATERIALS, DYADIC KNOW-HOW, DANISCO IMPROVED STRAINS AND DANISCO KNOW-HOW LICENSED HEREUNDER OR USED IN PERFORMING SERVICES, OR ANY PHARMACEUTICAL PRODUCT PRODUCED USING ANY SUCH DYADIC MATERIALS, DYADIC KNOW-HOW, DANISCO IMPROVED STRAINS AND DANISCO KNOW-HOW, AND DANISCO SPECIFICALLY DISCLAIMS, AND THE LICENSED PARTIES DISCLAIM RELIANCE ON, ANY AND ALL IMPLIED WARRANTIES OR CONDITIONS OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, ALL WARRANTIES THAT THE 

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DYADIC PATENTS OR DANISCO PATENTS ARE VALID AND ENFORCEABLE, AND THAT THE USE OF THE DYADIC MATERIALS, THE DANISCO IMPROVED STRAINS, DYADIC KNOW-HOW, OR DANISCO KNOW-HOW TO PRODUCE PHARMACEUTICAL PRODUCTS DOES NOT INFRINGE THE INTELLECTUAL PROPERTY RIGHTS OF THIRD PARTIES. DANISCO SPECIFICALLY DISCLAIMS, AND THE LICENSED PARTIES DISCLAIM RELIANCE ON, ANY REPRESENTATION OR WARRANTY THAT THE STRAINS LICENSED UNDER THIS AGREEMENT AND ANY DERIVATIVES OR MODIFICATIONS (A) ARE ANYTHING OTHER THAN EXPERIMENTAL IN NATURE, (B) HAVE CHARACTERISTICS THAT ARE ALL KNOWN, AND (C) ARE SUITABLE FOR USE IN PRODUCING ANY PHARMACEUTICAL PRODUCT.

ARTICLE 8 LIMITATION OF LIABILITY

8.1 EXCEPT WITH RESPECT TO THE WRONGFUL DISCLOSURE OR USE OF C1 STRAINS BY DANISCO OR A LICENSED PARTY, OR THE FAILURE OF DANISCO OR A LICENSED PARTY TO MAKE PAYMENTS PROVIDED FOR BY THIS AGREEMENT, OR THE BREACH OF ARTICLES 2 THROUGH 7 OF AGREEMENT BY A LICENSED PARTY, NEITHER DANISCO NOR ANY LICENSED PARTY NOR ANY OF THEIR RESPECTIVE AFFILIATES WILL BE LIABLE FOR SPECIAL, INDIRECT, INCIDENTAL, CONSEQUENTIAL OR EXEMPLARY DAMAGES, WHETHER IN CONTRACT, WARRANTY, NEGLIGENCE, TORT, STRICT LIABILITY OR OTHERWISE, ARISING OUT OF THE PERFORMANCE OR FAILURE TO PERFORM ANY OF THE PROVISIONS OF THIS AGREEMENT, EXCEPT TO THE EXTENT SUCH DAMAGES ARE PAYABLE IN CONNECTION WITH A THIRD PARTY CLAIM. DANISCO’S MAXIMUM LIABILITY TO DYADIC AND DYADIC LICENSEES UNDER THIS AGREEMENT PURSUANT TO SECTION 6.2 SHALL BE THE AMOUNT PAID TO DANISCO FOR THE SERVICES WHICH RELATE TO THE CLAIM. NEITHER PARTY SHALL HAVE ANY LIABILITY TO THE OTHER PARTY FOR ANY DIRECT, SPECIAL, INDIRECT, INCIDENTAL, CONSEQUENTIAL OR EXEMPLARY DAMAGES, WHETHER IN CONTRACT, WARRANTY, NEGLIGENCE, TORT, STRICT LIABILITY OR OTHERWISE, ARISING FROM, IN THE CASE OF DYADIC, ANY USE OF RESTRICTED MATERIALS BY ANY THIRD PARTY OR SUBLICENSEE OUTSIDE THE PHARMACEUTICAL FIELD AND, IN THE CASE OF DANISCO, ANY USE OF RESTRICTED MATERIALS BY ANY THIRD PARTY OR LICENSEE OF DANISCO IN THE PHARMACEUTICAL FIELD IN WAYS PROHIBITED BY THIS AGREEMENT UNLESS DYADIC OR DANISCO EXPRESSLY AND KNOWINGLY GRANTED A LICENSE PERMITTING SUCH IMPROPER USE.

ARTICLE 9 TERM AND TERMINATION

9.1 Term. Subject to Section 9.2, the term of this Agreement shall commence on the Effective Date and continue in full force and effect so long as any Licensed Party is using any C1 Strain or Danisco Improved Strain, Dyadic Know-How, or Dyadic Materials, or is practicing under any Patents licensed hereunder, provided, however, that any inactivity by 

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Dyadic with respect to the Pharmaceutical Field for less than one (1) year shall not be deemed a basis for expiration of this Agreement.

9.2 Termination and Patent Challenges

(a)    Termination For Breach. Notwithstanding anything herein to the contrary, if any Licensed Party shall at any time breach any material term or condition of its Sublicense Agreement, Dyadic shall advise Danisco in writing of such breach and provide Danisco with all facts known to Dyadic relating to such breach. Dyadic shall use reasonable efforts to remedy or cause its Sublicensee to remedy such breach. In addition, Danisco may commence a dispute against any Licensed Party pursuant to Section 10.7 to recover damages from and obtain injunctive or any other form of equitable relief against the Licensed Party which has breached its obligations. If the breaching Licensed Party shall fail to have cured such breach within sixty (60) days after it has been determined pursuant to Section 10.7 that such Licensed Party is in default, then Danisco may, at its option, and without liability to Dyadic or such Licensed Party terminate and revoke the sublicense running to the applicable Dyadic Sublicensee or if Dyadic is the breaching Party terminate the license grants running to Dyadic in Section 2.1. Any such termination of the license grants running to Dyadic shall not affect the rights of any Dyadic Sublicensee under a Sublicense granted prior to the effective date of such termination.
(b)    Dyadic Remedies. In the event that Dyadic provides written notice to Danisco of the breach of its obligations under any section of this Agreement and Danisco does not cure such breach within sixty (60) days after receipt of such written notice, then Dyadic shall be free to initiate arbitration with respect to such allegations of breach. Such arbitration shall be conducted in an expedited manner, but in no case shall the matter not be decided in less than one year without Dyadic’s consent. If Danisco by the end of such arbitration has not cured such breach and the arbitrators find such a breach exists, the arbitrators shall award equitable relief directing Danisco to discontinue conduct found to violate this Agreement and award such other relief as may be appropriate.

(c)    Patent Challenge. To the extent permitted by Law, in the event that a Party or a Licensed Party wishes to challenge the validity of any Patent subject to this Agreement, other than a Pharmaceutical Patent, such Party or Licensed Party shall first provide sixty (60) days prior written notice of such intent and if such patent challenge is unsuccessful in whole or in part reimburse the other Party’s or Licensed Party’s reasonable attorney’s fees and costs incurred in defending the validity of the Patent in question.

(d)    Danisco Remedies. Danisco may, by delivering written notice to Dyadic, terminate this Agreement immediately and without liability to any Licensed Party, in the event that any court or arbitrator of competent jurisdiction shall determine that Danisco does not have the right to license any C1 Strain, improved C1 Strain, Dyadic Know-How, Dyadic Material, Danisco Know-How, Danisco Improved Strain, Genetic Tool, Dyadic Patent or Danisco Patent for use in the Pharmaceutical Field.

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9.3 Effect of Termination

(a)    Rights and Obligations Upon Termination by Danisco for Breach. As of the effective date of a termination of any license to a Licensed Party pursuant to Section 9.2(a): (i) Section 2.1 shall terminate with respect to the rights granted to the Licensed Party which has breached and all rights in any Dyadic Material, Danisco Improved Strain or any derivative or modification thereof, Dyadic Know-How and Danisco Know-How licensed to the Licensed Party which has breached shall terminate and revert to Danisco; (ii) Dyadic, in the case of a termination of Dyadic’s rights, shall return to Danisco, and the applicable Sublicensee, in the case of a termination of such Sublicensee’s rights, shall return to Dyadic any Dyadic Materials or Danisco Improved Strains and derivatives and modifications thereof, Dyadic Know-How and Danisco Know-How provided to or created by or under the authority of such Party; and (iii) the Licensed Party which has breached shall return to Danisco and cease using all Confidential Information of Danisco including, but not limited to, Dyadic Know-How and Danisco Know-How.

(b)    Accrued Rights. Termination or expiration of this Agreement for any reason will be without prejudice to any rights that will have accrued to the benefit of a Party prior to such termination or expiration. Such termination or expiration will not relieve a Party from accrued payment obligations or from obligations which are expressly indicated to survive termination or expiration of this Agreement.

9.4 Survival. Sections 2.1(a)(iii) (insofar as it relates to the payment of any royalty incurred prior to the expiration or termination of this Agreement), 2.2(a), 2.2(d), 2.3, 2.4, 3.2, 3.4 (insofar as it relates to the payment of any royalty incurred prior to the expiration or termination of this Agreement), 4.2, 9.3, and 9.4, and Articles 5, 6, 7, 8 and 10, together with any other provisions necessary to give effect thereto, shall survive any expiration or termination of this Agreement.

Article 10 GENERAL PROVISIONS
10.1 Entire Agreement of the Parties; Amendments. This Agreement constitutes and contains the entire understanding and agreement of the Parties respecting the subject matter hereof and cancels and supersedes any and all prior and contemporaneous negotiations, correspondence, understandings, and agreements between the Parties, whether oral or written, regarding such subject matter. No waiver, modification, amendment or alteration of any provision of this Agreement will be valid or effective unless made in writing and signed by each of the Parties.
10.2 Further Actions. Each Party agrees to execute, acknowledge, and deliver such further instruments and to do all such other acts as may be necessary or appropriate in order to carry out the express provisions of this Agreement.

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10.3 Assignments. Neither this Agreement nor any interest hereunder may be assigned, nor any other obligation delegated, by a Party without the prior written consent of the other Party; provided, however, that a Party shall have the right to assign this Agreement without consent of the other Party to an Affiliate of the assigning Party provided or to any successor in interest to the assigning Party by operation of law, merger, consolidation, or other business reorganization or the sale of all or substantially all of its assets relating to the subject matter of this Agreement. This Agreement shall be binding upon successors and permitted assigns of the Parties. Any assignment not in accordance with this Section 10.3 will be null and void. Notwithstanding any assignment or transfer by operation of law, merger, consolidation or otherwise, the assigning Party shall remain primarily liable for any breaches of the assignee under this Agreement.
10.4 Performance by Affiliates. The Parties recognize that each may perform some or all of its obligations under this Agreement through wholly owned Affiliates or may exercise some or all of its rights under this Agreement through wholly owned Affiliates, provided, however, that each Party shall remain responsible and be guarantor of the performance by such Affiliates and shall cause such Affiliates to comply with the provisions of this Agreement in connection with such performance. In particular and without limitation, (i) all Affiliates of a Party that receive Confidential Information of the other Party pursuant to this Agreement shall be governed and bound by all obligations set forth in Article 5, and (ii) all Affiliates of, as applicable, Dyadic or Danisco, that have access to C1 Strains, Danisco Improved Strains, Improvements, Pharmaceutical Improvements, Dyadic Materials, Genetic Tools or Know-How relating thereto shall be governed and bound by all obligations set forth in this Agreement. Each Party will prohibit all of its Affiliates from taking any action that such Party is prohibited from taking under this Agreement as if such Affiliates were parties to this Agreement.
10.5 Relationship of the Parties. The Parties shall perform their obligations under this Agreement as independent contractors and nothing in this Agreement is intended or will be deemed to constitute a partnership, agency or employer-employee relationship between the Parties. Neither Party will have any right, power or authority to assume, create, or incur any expense, liability, or obligation, express or implied, on behalf of the other.
10.6 Notices. Any notice, request, delivery, approval or consent required or permitted to be given under this Agreement will be in writing and will be deemed to have been sufficiently given if delivered in person, transmitted by facsimile (receipt verified) or by express courier service (signature required) or five (5) days after it was sent by registered letter, return receipt requested (or its equivalent) to the Party to which it is directed at its address or facsimile number shown below or such other address or facsimile number as such Party will have last given by notice to the other Party.

If to Danisco:

Danisco US Inc.
c/o President – DuPont Industrial Biosciences

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Building 356
Danisco Experimental Station
Wilmington, DE 19880

With a copy to: E. I. du Pont de Nemours and Company
Attention: Legal Department – General Counsel
Fax: 302-773-4679

If to Dyadic: Dyadic International, Inc.
140 Intracoastal Pointe Drive, Suite 404
Jupiter, FL 33477-5094
Attention: Mark A. Emalfarb
Fax: (561) 743-8343

With a copy to:
Cahill Gordon & Rekindle LLP
80 Pine Street
New York, New York 10005
Attention: Michael B. Weiss
Email:
mweiss@cahill.com

10.7 Governing Law; Dispute Resolution.

		
	(a)
	The rights and obligations of the Licensed Parties under this Agreement shall be governed, and shall be interpreted, construed, and enforced, in all respects by the Law of the State of Delaware without giving effect to any conflict of Law rule that would result in the application of the Law of any jurisdiction other than the internal Law of the State of Delaware to the rights and duties of the Parties.

		
	(b)
	If Danisco and any Licensed Party are unable to resolve any dispute between them arising out of this Agreement, either Danisco or any Licensed Party, by written notice to the other, may have such dispute referred to the President of DuPont Industrial Biosciences and the Chief Executive Officer of Dyadic or any other Licensed Party, for attempted resolution by good faith negotiations within fifteen (15) days after such notice is received.

		
	(c)
	If Danisco and Dyadic or the relevant other Licensed Party do not agree upon a resolution of the dispute, Danisco and the Licensed Parties agree that any dispute that remains unresolved rising out of or relating to this Agreement, including the breach, termination or validity thereof, shall be finally resolved by arbitration in accordance with the International Institute for Conflict Prevention and Resolution (“CPR”) Rules for Administered Arbitration (the “Administered Rules” or “Rules”) by three arbitrators, of whom each party to the dispute shall designate one, with the third arbitrator to be designated by the two party-appointed arbitrators. The arbitration shall 

32

be governed by the Federal Arbitration Act, 9 USC §§ 1 et seq., and judgment upon the award rendered by the arbitrators may be entered by any court having jurisdiction thereof. The place of the arbitration shall be New York, New York and shall be conducted in accordance with the requirements of CPR’s Appeal Procedure. An appeal may be taken under the CPR Arbitration Appeal Procedure from any final award of an arbitral panel in any arbitration arising out of or related to this agreement that is conducted in accordance with the requirements of such Appeal Procedure. Unless otherwise agreed by the parties and the appeal tribunal, the appeal shall be conducted at the place of the original arbitration.

		
	(d)
	Danisco and the Licensed Parties agree that money damages alone will be inadequate to compensate for any breach of this Agreement and that injunctive relief will be awarded to the extent necessary to restrain any Licensed Party from using any Dyadic Material, Danisco Improved Strain, Dyadic Know-How, Danisco Know-How, Danisco Background Technology, Danisco Background Tool, or Services Generated Tool outside of the Pharmaceutical Field or to restrain Danisco from violating the provisions of Section 3.3.

10.8 Rights in Bankruptcy. The Parties acknowledge and agree that this Agreement constitutes a license of rights to “intellectual property” as that term is defined in Section 101(35A) of Title 11, United States Code (the “Bankruptcy Code”) and is therefore governed by Section 365(n) of the Bankruptcy Code. The Parties shall retain and may fully exercise all of their respective rights and elections under the Bankruptcy Code. Notwithstanding anything to the contrary, if a Chapter 11 petition is filed by or against Dyadic, Dyadic shall seek approval of the bankruptcy court to assume this Agreement pursuant to 11 U.S.C. § 363.

10.9 Captions. The captions to this Agreement are for convenience only, and are to be of no force or effect in construing or interpreting any of the provisions of this Agreement.

10.10 Waiver. A waiver by a Party of any of the terms and conditions of this Agreement in any instance will not be deemed or construed to be a waiver of such term or condition for the future, or of any subsequent breach hereof. All rights, remedies, undertakings, obligations, and agreements contained in this Agreement will be cumulative and none of them will be in limitation of any other remedy, right, undertaking, obligation, or agreement of either Party.

10.11 Severability. When possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid under Law, but, if any provision of this Agreement is held to be prohibited by or invalid under Law, such provision will be ineffective but only to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or of this Agreement. The Parties will make a good faith effort to replace the invalid or unenforceable provision with a valid one which in its economic effect is most consistent with the invalid or unenforceable provision.

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10.12 Force Majeure. No liability shall result from a force majeure event or any delay in performance or nonperformance, directly or indirectly caused by circumstances beyond the control of the Party affected, including, but not limited to, act of God, fire, explosion, flood, war, utility failure, order of any court, act or inaction of or by any local or national government or agency, accident, labor strike, pandemic, death, termination or resignation of key employees, inability to obtain material, failure of equipment transportation, or failure of usual transportation mode.

10.13 Counterparts. This Agreement may be executed simultaneously in counterparts, any one of which need not contain the signature of more than one Person but all such counterparts taken together will constitute one and the same agreement.

10.14 Rules of Construction.

		
	(a)
	When a reference is made in this Agreement to an Article, a Section, an Exhibit or a Schedule, such reference shall be to an Article of, a Section of, or an Exhibit or a Schedule to this Agreement unless otherwise indicated.

		
	(b)
	Whenever the words “include,” “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation.”

		
	(c)
	The Parties hereto have participated jointly in the negotiation and drafting of this Agreement with the assistance of counsel and other advisors and, in the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as jointly drafted by the parties hereto and thereto, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provision of this Agreement.

IN WITNESS WHEREOF,  the Parties have executed this Agreement  in  duplicate originals by their duly authorized representatives as of the Effective Date.

	
						
	Danisco USA Inc.
	 
	Dyadic International, Inc.
	 

	 
	 
	 
	 
	 
	 

	By:
	/s/ [*]
	 
	By:
	/s/ Mark Emalfarb
	 

	Name:
	[*]
	 
	Name:
	Mark Emalfarb
	 

	Title:
	[*]
	 
	Title:
	President & CEO
	 

34

EXHIBIT A 
DYADIC MATERIALS

[*]

35

EXHIBIT B
SERVICES

[*]

36

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