Document:

Exhibit 10.5 -

    
      

      

    

    

      Exhibit
        10.5

      

      [*]
        INDICATES CONFIDENTIAL PORTION HAS BEEN OMITTED PURSUANT
        TO A REQUEST FOR CONFIDENTIAL TREATMENT AND
        HAS
        BEEN FILED SEPARATELY WITH THE COMMISSION

      

      

       

      STRATEGIC
        ALLIANCE AGREEMENT

       

      THIS
        STRATEGIC ALLIANCE AGREEMENT is entered into and effective as of December
        29,
        2006 by and between Cummins Power Generation Inc., a Delaware corporation
        (“Cummins”) and Chapeau, Inc. d/b/a BluePoint Energy, Inc., a Utah corporation
        (“BluePoint”). Cummins and BluePoint are sometimes referred to herein,
        individually, as a “Party” and, together, as the “Parties.” 

       

      RECITALS

       

      WHEREAS,
        Cummins has superior expertise in developing, marketing, selling, distributing,
        servicing and maintaining Cummins power generation and related products
        (“Cummins Products”); and

       

      WHEREAS,
        BluePoint has superior expertise in developing, financing, packaging, and
        engineering combined heat and power ( “CHP”) products 1 megawatt and below;
        and

      

      WHEREAS,
        BluePoint has developed expertise in marketing and funding its proprietary
        discount energy purchase (“DEP”) agreements which dramatically enhance market
        penetration of CHP products and projects; and

       

      WHEREAS,
        BluePoint has developed the EnviroGenTM Energy Module line of products (the
“System”) and has expertise in integrating and packaging the System; and

      

      WHEREAS,
        Cummins desires for BluePoint to integrate, manufacture and supply Systems
        integrating Cummins Products exclusively, both diesel and natural gas prime
        mover-based, and to be commercially co-branded as or similar to EnviroGenTM
        Energy Module - Powered by Cummins Inside;
        and

       

      WHEREAS,
        Cummins and BluePoint desire to develop state-of-the-art “packaged” CHP
        co-branded EnviroGenTM Energy Modules -
        Powered by Cummins Inside
        through
        prime mover technology collaboration; and

       

      WHEREAS,
        Cummins and BluePoint desire to make available for sale on an exclusive basis,
        except as otherwise precluded by any previous commitments, alliances or
        agreements entered into by Cummins, EnviroGenTM Energy Modules - Powered
        by Cummins Inside
        up to 1
        megawatt in packaged size through Cummins’s worldwide distribution network;
        and

       

      

       

      
        
           

        

        
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      WHEREAS,
        the Parties will mutually benefit from this Agreement due to the additional
        credibility, product availability and revenues achieved; and

       

      WHEREAS,
        Cummins and BluePoint desire to enter into this Agreement to formalize a
        joint
        strategic relationship;

       

      NOW,
        THEREFORE, in consideration of the obligations herein made and undertaken,
        the
        Parties, intending to be legally bound, covenant and agree as
        follows:

       

      1.   Cummins
        Obligations.
        Cummins
        shall have the following obligations under this Agreement:

       

      (a)   Integration
        Assistance.
        Cummins, either directly or through a Cummins authorized designee, will provide
        [*] assistance related to integration of Cummins Products into the
        System.

      

      (b)   Technical
        Training.
        Cummins
        , either directly or through a Cummins authorized designee, will provide
        technical training to BluePoint personnel with respect to Cummins Products.
        [*]

      

      (c)   Marketing
        Activities.
        Cummins
        will assist in activities to jointly co-brand and market the Systems through
        targeted members of distribution and support network of Cummins. Marketing
        assistance will be provided through Cummins for applications suitable for
        the
        BluePoint System. [*] 

      

      (d)   Service
        and Maintenance Activities.
        Cummins
        will assist, either directly or through a Cummins authorized designee, in
        activities to service, maintain and support the [*] Systems, under a separately
        negotiated maintenance agreement, throughout the distribution and support
        network of Cummins. During the [*] first 12 months of this Agreement, Cummins
        Service and Maintenance obligations will be limited to the [*] unless authorized
        earlier by Cummins. Furthermore, [*]BluePoint will use its best commercially
        reasonable effort to identify geographies in which the System will be deployed.
        [*]

       

      (e)   Supply
        Cummins Products to BluePoint [*].
        Cummins
        will use its best commercially reasonable efforts to provide to BluePoint
        certain Cummins Products [*] 

      

      (f)    Key
        Cummins Personnel.
        Key
        Cummins personnel will initially include [*] and [*]; or their designees
        and
        other senior management personnel as required.

      

      2.   BluePoint
        Obligations.
        BluePoint shall have the following obligations under this
        Agreement:

       

      (a) Financing
        Activities.
        BluePoint will use its best commercially reasonable efforts to promote and
        enable the BluePoint DEP model for those customers referred to BluePoint
        by
        Cummins or members of the distribution and support network of Cummins that
        prefer not to undertake the capital investment to build, own, operate and
        maintain the System. 

      

      
        
           

        

        
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                (b)

              	
                 [*]

              

      

      

      (c)   Manufacturing.
        BluePoint will assemble, manufacture and package Systems incorporating Cummins
        Products exclusively. [*]BluePoint will deliver Systems incorporating
        exclusively Cummins Products to Cummins distributors and dealers [*]

      

      (d)   Technical
        Training.
        BluePoint will provide technical training and marketing materials with respect
        to the Systems to Cummins personnel. 

      

      (e)   Marketing
        Activities.
        In
        addition to BluePoint’s own internal sales efforts, BluePoint will also assist
        in activities to jointly market the System and related cogeneration products,
        services and support as requested by Cummins and/or Cummins distributors
        .

       

      (f)    Evaluate
        Cummins Products.
        BluePoint will assess Cummins Products [*] 

      

      (g    Purchase
        Estimates.
        BluePoint will provide for the 24-month period subsequent to the effective
        date
        of this Agreement purchase estimates of all prime movers as set forth in
        Exhibit
        A attached hereto and a part hereof. [*]

      

      (h)   Key
        BluePoint Personnel.
        Key
        BluePoint personnel will initially include Guy A. Archbold, Chief Executive
        Officer of BluePoint and Steven P. Brandon, Executive Vice President or their
        designees and other senior management personnel as required.

      

      3.   Contact
        Persons.
        Each of
        Cummins and BluePoint shall designate a contact person for purposes of
        monitoring performance of each Party under this Agreement. Initially, the
        contact person for Cummins will be [*]and the contact person for BluePoint
        will
        be Guy A. Archbold.

      

      4.   [*]
        Installation.
        [*] The
        Parties agree that no integrated CHP System, as contemplated by this Agreement,
        will be commissioned for commercial sale and installation unless both Parties
        approve the readiness of the product for the proposed application and
        installation. 

      

      5.   Exclusive
        Alliance.
        During
        the term of this Agreement, neither Cummins, nor BluePoint, nor their respective
        affiliates or subsidiaries will enter into a similar joint strategic agreement
        with any competitor of the other Party for the sole purpose of developing
        packaged CHP products up to 1 megawatt in packaged size without prior written
        consent of the other Party. [*] 

      

      6.   Relationship
        of the Parties.
        The
        relationship of Cummins and BluePoint is solely that of independent contractors,
        and nothing in this Agreement shall be construed to (i) give either party
        the
        power to direct and control the day-to-day activities of the other or (ii)
        constitute the parties as joint venturers, co-owners or otherwise as
        participants in a joint or common undertaking or (iii) make either party
        an
        agent of the other for any purpose whatsoever.

      

      
        
           

        

        
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      7.   Protection
        of Confidential Information.
        The
        Parties acknowledge and agree that they are bound and shall continue to be
        bound
        by the terms of that certain Mutual Nondisclosure Agreement dated October
        27,
        2006 by and between Cummins and BluePoint and that such Nondisclosure Agreement
        shall continue in full force and effect for so long as this Agreement has
        not
        been terminated.

       

      
        	 	
                8.

              	
                Intellectual
                  Property

              

      

       

      
        	 	
                8.1

              	
                DEFINITIONS

              

      

       

      A.   “Intellectual
        Property” means any inventions, ideas, discoveries, developments, improvements,
        innovations, and know-how, whether or not patentable; copyrightable works,
        such
        as reports, databases, and documentation; trade secrets; such as software;
        including source code and object code; compositions of matter; procedures;
        and
        experimental results. 

       

      B.   “Background
        Intellectual Property” means all Intellectual Property developed, conceived, or
        controlled by a Party or their respective employees, agents, or contractors
        that
        was developed prior to the effective date of this Agreement, prior to or
        separate from the Program, and is necessary to utilize or otherwise practice
        the
        BLUEPOINT Technology or CUMMINS Technology, as applicable. All Background
        Intellectual Property is and shall remain the separate intellectual property
        of
        the Party who developed, conceived, or controlled it. 

       

      C.   “BLUEPOINT
        Reserved Intellectual Property” means all Intellectual Property developed,
        conceived, or made by the Parties or their employees, agents, or contractors,
        whether alone or in concert, whether or not conceived, made, or developed
        during
        working hours, solely in connection with and under the Program, but which
        expressly excludes any Intellectual Property pertaining to: 

       

      i.
    packaging
        combined heat and power systems; and

       

      ii.    non-generator
        interfaces from combined heat and power systems; 

       

      D.   “CUMMINS
        Reserved Intellectual Property” means all Intellectual Property developed,
        conceived, or made by the Parties or their employees, agents, or contractors,
        whether alone or in concert, whether or not conceived, made, or developed
        during
        working hours, solely in connection with and under the Program limited to
        that
        Intellectual Property pertaining to: 

       

      i.     generators;

       

      ii.    interfaces
        to generators;

       

      iii.   engines
        and technologies associated with G-Drive engines; 

       

      iv.   generator
        technology necessary for all applications not part of the Program;
        and

       

      
        
           

        

        
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      v.    Any
        other
        information or technology not otherwise set forth hereinunder in Program
        Intellectual Property or Jointly Developed Intellectual Property.

       

      E.   “CUMMINS
        Technology” means all Intellectual Property disclosed by CUMMINS under this
        Agreement, including but not limited to materials, compositions, or products
        developed therefrom, whether in existence prior to the effective date of
        this
        Agreement or subsequently developed by Cummins independent of BLUEPOINT,
        including all Background Intellectual Property of the CUMMINS and CUMMINS
        Reserved Intellectual Property, or cooperatively with BLUEPOINT under this
        Program excluding any BLUEPOINT Intellectual Property or BLUEPOINT Technology
        

       

      F.   “BLUEPOINT
        Technology” means all Intellectual Property disclosed by BLUEPOINT under this
        Agreement, including but not limited to materials, compositions, or products
        developed therefrom, whether in existence prior to the effective date of
        this
        Agreement or subsequently developed by BLUEPOINT independent of CUMMINS,
        including all Background Intellectual Property of BLUEPOINT and BLUEPOINT
        Reserved Intellectual Property, or cooperatively with CUMMINS under this
        Program. 

       

      G.   “Jointly
        Developed Intellectual Property” means all Intellectual Property jointly
        developed, conceived, or made by the Parties or their employees, agents,
        or
        contractors, whether or not conceived, made, or developed during working
        hours,
        solely in connection with and under the Program limited to that Intellectual
        Property created under the Program, such as all designs, plans, reports,
        specifications, drawings, schematics, prototypes, models, inventions, work
        in
        progress and all other information and items made during the course of this
        Agreement arising solely from the services performed pursuant to this Agreement
        which may or may not be incorporated in the Product, exclusive of any CUMMINS
        Intellectual Property, CUMMINS Technology, BLUEPOINT Intellectual Property,
        BLUEPOINT Technology and any Background Intellectual Party of either of CUMMINS
        or BLUEPOINT. 

       

      H.   “Product”
shall
        mean the prototypes and resulting developed offering readied for commercial
        use
        by BLUEPOINT resulting under the Program inclusive of components under the
        relevant Cummins Products and
        parts
        list which will support the Program and which shall be produced and offered
        for
        sale by the Cummins distribution channel. 

       

      I.    “Program”
        shall mean the process under which joint development work and product
        improvement work will be performed for the purpose of creating or improving
        the
        interface between a Cummins Product and a CHP System, as contemplated by
        this
        Agreement. 

       

      8.2. 
          Communications.
        The
        Parties agree to communicate to one another all Intellectual Property created
        under the Program, and agree to grant one another and their affiliates an
        irrevocable, non-exclusive, fully-paid up, royalty free license to make,
        have
        made, use, sell, and lease the Jointly Developed Intellectual Property,
        including the right to make derivate works of or have made derivative works
        of
        the Jointly Developed Intellectual Property, and each shall execute or cause
        its
        employees, contractors or subcontractors to execute any and all reasonable
        documents which may become necessary for the Parties to utilize, assign or
        otherwise cause this license or the underlying rights therein to be available
        to
        the other. 

       

      

       

      
        
           

        

        
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      8.3. 
          Markings.
        The
        Parties agree to mark and attribute all drawings, graphics, technical analyses,
        models, prototypes, writings, computer programs, algorithms, and other materials
        developed under the Program, which are not otherwise CUMMINS Technology or
        BLUEPOINT Technology, to the extent possible, as:

       

      a.
        “Confidential and Proprietary Information” to their respective Party owner in
        accordance with the Program and the definitions hereunder.

       

      8.4  
          Covenant
        Not to Sue.
        The
        Parties agree that neither they nor any of their employees or subcontractors
        will sue the other, the other’s customers, or the other’s suppliers for
        infringement of patents, copyrights, trade secrets or other proprietary rights
        of the other arising from the sale or use of Product(s) or processes utilizing
        the Product(s), but only where the Product(s) is made, sold, offered or used
        in
        an authorized manner expressly set forth hereinunder. The covenants of this
        paragraph expressly exclude any unauthorized activities, any non-Program
        related
        activities including any “aftermarket” products, and/or activities involving
        portions, components, combinations, improvements, and derivative works of
        Product(s) not otherwise expressly reserved elsewhere herein. 

       

      8.5  
          No
        Infringement of 3rd
        Parties.
        The
        Parties agree that they will not knowingly infringe and are unaware of any
        actual or alleged claim for infringement for the patent, copyright or trade
        secret rights of any third parties in the performance of this Agreement,
        and
        agree to advise the other in writing within thirty (30) days of being or
        first
        becoming knowledgable if one is, or becomes, aware that the other’s role,
        participation, development or use of any aspect of the Program would violate
        the
        intellectual property rights of a third party.

       

      8.6  
          No
        Disclosure.
        Each
        Party agrees not to disclose to any third party, or use, except in connection
        with the Program, any confidential information disclosed by the other Party
        relating to processes, products, equipment or trade secrets, as well as
        confidential information resulting from the Program. Any information not
        available to the public shall be considered confidential for the purposes
        of
        this Agreement; but should any of this information be published or otherwise
        made available to the public by a Party or by third parties without breach
        of
        this Agreement, each Party shall be free to use for its own purposes that
        information which is actually publicly available. 

       

      a.    Except
        for internal purposes, each Party further agrees that it will not utilize
        any of
        the work product developed by the other that is expressly and directly related
        to Jointly Developed Intellectual Property herein on behalf of any party
        other
        than themselves 

       

      

       

      
        
           

        

        
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      8.7. 
          Return
        of
        Party Property. Excepting that which may be applicable to Jointly Developed
        Intellectual Property, all materials including, without limitation, documents,
        drawings, physical and electronic models, sketches, designs, computer tapes
        and
        disks, and lists furnished by one Party to the other, shall remain the property
        of the furnishing Party and shall be returned promptly upon completion of
        the
        Program by the receiving Party or at any time upon written request by the
        furnishing Party. Except as may be provided elsewhere in this Agreement,
        the
        Parties agrees not to make any copies of such materials without the other’s
        permission, and to return all copies with the original materials and delete
        all
        electronic versions of such materials. The Parties shall be permitted to
        make a
        reasonable number of internal copies for each of their use required in their
        performance of this Agreement.

       

      8.8  
          Jointly
        Owned IP.
        The
        Jointly Developed Intellectual Property shall be jointly and equally owned
        by
        the Parties where each Party shall equally contribute to the costs associated
        with any formal protections (i.e., patent applications, etc.) associated
        therewith. [*]

       

      8.8 
          Miscellaneous. 

       

      
        	 	
                a.

              	
                The
                  Parties shall not be financially accountable to the other for costs
                  associated with the development or protection of any their individually
                  owned intellectual property rights.

              

      

       

      
        	 	
                b.

              	
                Neither
                  Party grants to the other any license to or in any Intellectual
                  Property
                  or Technology not otherwise expressly set forth
                  herein.

              

      

       

      
        	 	
                c.

              	
                The
                  Parties agree that each Party may independently and freely make
                  improvements, make, have made, sell, offer for sale, and otherwise
                  transfer their respective Technology and Intellectual Property
                  without
                  restriction.

              

      

       

      
        	 	
                d.

              	
                The
                  Parties shall mutually agree, within thirty (30) days after execution
                  of
                  this Agreement, to establishing a formal process in the Program
                  for
                  creating and providing for adequate intellectual property protection
                  and
                  associated costs with the process. 

              

      

       

      
        	 	
                e.

              	
                Records
                  and Reports.
                  The Parties agree to keep and maintain adequate and current records
                  of all
                  Jointly Developed Intellectual Property made by themselves (in
                  the form of
                  notes, sketches, drawings or other means as may be specified by
                  the
                  Parties) for a period of five years after termination of this Agreement
                  which records shall be available to and remain the sole property
                  of
                  BluePoint at all times. 

              

      

       

      
        	 	
                f.

              	
                Parties
                  Assistance.
                  Parties further agree as to all Jointly Developed Intellectual
                  Property to
                  reasonably assist one another in the creation and execution of
                  formal
                  intellectual property protections. 

              

      

       

      

       

      
        
           

        

        
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                9.

              	
                Term
                  and Termination.
                  

              

      

       

      (a)   This
        Agreement will commence on the date first written above and will continue
        until
        the earlier of (i) December 29, 2011, unless one Party delivers a notice of
        termination to the other Party not later than thirty (30) days prior to such
        termination date or yearly anniversary thereafter, or (ii) termination as
        provided below. 

       

      (b)   Either
        Party may terminate this Agreement upon thirty (30) days written notice to
        the
        other Party if such other Party refuses to, is unable to perform or is in
        breach
        of any material provision of this Agreement; provided however that such noticed
        Party shall have a period of thirty (30) days to cure performance deficiency
        or
        breach per such notice. 

       

      (c)   Upon
        any
        such termination of this Agreement all rights and duties of the Parties toward
        each other shall cease except: Section 7 (Protection of Confidential
        Information), Section 8 (Ownership of Intellectual Property), Section 10
        (Returning Documents) and Section 11 (Indemnification) shall survive termination
        of this Agreement.

       

      (d)   This
        Agreement shall be predicated upon [*]EnviroGenTM Energy Module [*]that shall
        meet the application performance standards established by Cummins.
        [*]

       

      10. 
          Returning
        Documents.
        Each
        Party agrees that, upon termination of this Agreement, it shall deliver to
        the
        other Party or Parties (and will not keep in its possession or deliver to
        anyone
        else) any and all devices, records, data, notes, reports, proposals, lists,
        correspondence, specifications, drawings, blueprints, sketches, materials,
        equipment, other documents or property, or reproductions of any of the
        aforementioned items belonging to such other Party, its successors or assigns.
        

       

      11. 
          Indemnification.
        Each
        Party (the “Indemnifying Party”) shall indemnify, defend and hold harmless, the
        other Party and its affiliates, officers, directors, employees and shareholders
        (collectively, the “Indemnified Party”) against and in respect of any and all
        damages, losses, claims, penalties, liabilities, costs and expenses (including,
        without limitation, all fines, interest, reasonable legal fees and expenses
        and
        amounts paid in settlement), that arise from or relate or are attributable
        to
        any breach of any representation, warranty, covenant or agreement on the
        part of
        the Indemnifying Party in this Agreement. Promptly after the assertion of
        any
        claim by a third party or occurrence of any event which may give rise to
        a claim
        for indemnification from the Indemnifying Party, the Indemnified Party shall
        notify the Indemnifying Party in writing of such claim. The Indemnifying
        Party
        shall have the right to assume the control and defense of any such action,
        provided,
        that
        the Indemnified Party may participate in the defense of such action subject
        to
        the Indemnifying Party’s reasonable direction and at the Indemnified Party’s
        sole cost and expense. The Party contesting any such claim shall be furnished
        all reasonable assistance in connection therewith by the other Party and
        be
        given full access to all information relevant thereto. In no event shall
        any
        such claim be settled without the Indemnifying Party’s consent.

       

      

       

      
        
           

        

        
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      12. 
          Representations
        and Warranties.
        Each
        Party hereby represents and warrants to the other Party as follows:

       

      (a)   Corporate
        Status.
        Such
        Party is a corporation duly incorporated, validly existing, and in good standing
        under the laws of its state of incorporation, and has all requisite corporate
        power and authority to own, operate and lease its properties and to carry
        on its
        business as and in the places where such properties are now owned, operated
        and
        leased or such business is now being conducted.

       

      (b)   Authorization;
        Validity.
        When
        executed and delivered by such Party, this Agreement will constitute the
        valid
        and legally binding obligation of such Party, enforceable against such Party
        in
        accordance with its terms, subject to applicable bankruptcy, insolvency,
        reorganization and moratorium laws and other laws of general application
        affecting the enforcement of creditors' rights generally and general principles
        of equity. 

       

      (c)   No
        Conflict.
        The
        execution, delivery and performance of this Agreement do not and will not
        violate any material agreements to which such Party is a party. 

       

      (d)   Approvals
        and Consents.
        No
        action, approval, consent or authorization, including, but not limited to,
        any
        action, approval, consent or authorization by any governmental or
        quasi-governmental board, agency, commission, bureau, or instrumentality
        is
        necessary or required in order to constitute this Agreement as the valid,
        binding and enforceable obligation of such Party in accordance with its
        terms.

       

      
        	 	
                13.

              	
                Miscellaneous.

              

      

       

      (a)   Entire
        Agreement.
        This
        Agreement, together with the exhibits attached hereto, if any, constitutes
        the
        entire agreement between the BluePoint and Cummins relating to the subject
        matter hereof and supersedes all prior, written or oral negotiations,
        representations or agreements. No modification of this Agreement shall be
        binding on any Party unless it is in writing and signed by all Parties.

       

      (b)   Severability.
        The
        provisions of this Agreement are severable, and if one or more provisions
        are
        judicially determined to be illegal or otherwise unenforceable, in whole
        or in
        part, the remaining provisions or portions of this Agreement shall nevertheless
        be binding on and enforceable by and between the Parties hereto. 

       

      (c)   Assignment.
        This
        Agreement shall inure to the benefit of and be binding upon the successors
        and
        assigns of the Parties hereto. 

       

      (d)   Governing
        Law.
        The
        rights and obligations of the Parties to this Agreement shall be governed
        by and
        construed in accordance with the laws of the State of Indiana, without regard
        to
        its conflict of laws, rules or provisions. 

       

      (e)   Heading.
        Section
        headings are for convenience of reference only and shall not be considered
        in
        the interpretation of this Agreement. 

       

       

      
        
           

        

        
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      (f)    Unavoidable
        Delays.
        Either
        Party shall be excused for any delays or defaults in the performance of this
        Agreement (except the payment of amounts due and payable hereunder) unavoidably
        caused by the act of the other, the act of any agent of the other, the act
        of
        any governmental authority, acts of God, the elements, war, litigation, strikes,
        walkouts, or any other cause beyond its reasonable control. Each Party shall
        use
        all reasonable diligence to avoid any such delay or default and to resume
        performance under this Agreement as soon as practicable after such delay
        or
        default. 

       

      (g)   Notices.
        All
        notices and other communications required or permitted hereunder shall be
        in
        writing and shall be deemed effectively given upon personal delivery or on
        the
        day sent by facsimile transmission if a true and correct copy is sent the
        same
        day by first class mail, postage prepaid, or by dispatch by an internationally
        recognized express courier service, and in each case addressed as
        follows:

       

      
        	 	
                If
                  to Cummins:

              	
                Cummins
                  Inc.

              

      

      [*]

       

      Attn:
        Senior Counsel for Power Generation

       

      
        	 	
                If
                  to BluePoint:

              	
                Chapeau,
                  Inc.

              

      

      d/b/a
        BluePoint Energy, Inc.

      1190
        Suncast Lane, Suite 2

      El
        Dorado
        Hills, California 95762

      

      (h)   Counterparts.
        This
        Agreement may be executed in one or more counterparts, and when so executed
        each
        counterpart shall be deemed to be an original, and said counterparts together
        shall constitute one and the same instrument.

       

      

       

      

       

      

       

      

       

      

       

      
        
           

        

        
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      IN
        WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the
        date
        first above written. 

       

      

       

      
        	 	
                CUMMINS
                  POWER GENERATION INC.

                 

              
	 	
                By:
                  

              	
                   
                   
                  [*]                                                   

              
	 	 	
                Name:
                  [*]

              
	 	 	
                Title:
                  [*] 

              
	 	 	 
	 	 	 
	 	
                CHAPEAU,
                  INC. 

              
	 	
                D/B/A
                  BLUEPOINT ENERGY, INC.

                 

              
	 	
                By:
                  

              	
                     
                  /s/ Guy A.
                  Archbold                         
                  

              
	 	 	
                Name:
                  Guy A. Archbold

              
	 	 	
                Title:
                  Chief Executive Officer

              

      

      

       

      

       

      

       

      

       

      

       

      

       

      
        
           

        

        
          Page
            11 of
            12

          
            

          

        

        
           

        

      

      STRATEGIC
        ALLIANCE AGREEMENT

       

      by
        and between

      Cummins
        Power Generation Inc. and

      Chapeau,
        Inc. dba BluePoint Energy, Inc.

      

      December
        29, 2006

       

      Exhibit
        A

       

      Engine
        Purchase Estimates

       

      
        	
                Period

              	
                       
                  Projected Megawatts(1)(2)

              
	
                [*]

              	
                [*]

              
	
                [*]

              	
                [*]

              
	
                [*]

              	
                [*]

              
	
                [*]

              	
                [*]

              
	
                [*]

              	
                [*]

              
	
                [*]

              	
                [*]

              
	
                [*]

              	
                [*]

              

      

      

       

      
        	 	
                (1)

              	
                Estimated
                  megawatt demand in connection with projects projecting to close
                  during the
                  noted period.

              

      

       

      
        	 	
                (2)

              	
                The
                  demand for the projected megawatts is anticipated to be filled
                  by a
                  combination of [*]engines, the distribution [*]to be dependent
                  upon actual
                  site specifications and project configurations.

              

      

      
 

       

       

       

       

       

       

       

       

       

       

       

       

       

      Page
        12 of 12Exhibit
10.1

Confidential
Treatment has been requested for portions of this exhibit. The copy filed
herewith omits the information subject to the confidentiality request.  Omissions are designated as “***”. A complete
version of this exhibit has been filed separately with the Securities and
Exchange Commission.

COMMERCIAL LICENSE AGREEMENT

THIS AGREEMENT (“Agreement”) dated as of December 21, 2006 (“Effective
Date”) is entered into by and between SENESCO TECHNOLOGIES, INC, a Delaware
corporation with principal offices at 303 George Street, Suite 420, New
Brunswick, NJ  08901 (“STI”) and
ARBORGEN, LLC, a Delaware limited liability company with principle offices at
180 Westvaco Rd., Summerville, SC 29484 (“AG”).

RECITALS

WHEREAS, STI owns and controls technology, know-how and United States
and foreign patents and patent applications concerning methods for controlling
plant senescence involving altering the expression of plant genes and their
cognate expressed proteins that are induced during or coincident with the onset
of senescence;

WHEREAS, AG is a forestry biotech company in the business of research,
development, and commercialization of genetically improved trees;

WHEREAS, STI desires to grant to AG, and AG desires to obtain from STI,
a commercial license under the STI Technology (as defined herein) on the terms
and conditions set forth in this Agreement.

NOW THEREFORE, in consideration of the premises and the faithful
performance of the mutual covenants hereinafter set forth, the parties hereto
hereby agree as follows:

1.             DEFINITIONS

As used in this Agreement, the following defined terms shall have the
respective meanings set forth below:

1.1                                 “Affiliate” means any entity which
controls, is controlled by, or is under common control with another
entity.  An entity is deemed to be in
control of another entity (controlled entity) if such company directly or
indirectly owns 50% or more in nominal value of the issued equity share capital
of such other company, or 50% or more of the shares entitled to vote upon the election
of: (i) the directors; (ii) persons performing functions similar to those
performed by directors; or (iii) persons otherwise having the right to elect or
appoint (a) directors having the majority vote of the Board of Directors, or
(b) other persons having the majority vote of the highest and most
authoritative directive body of such other company.  Notwithstanding the foregoing, Affiliates of
AG include, without limitation, International Paper Company, MeadWestvaco
Corporation, and Rubicon Limited.

1.2                                 “Confidential Information” means any
information received by either Party, including all business, technical and
other information, whether disclosed in writing, orally or in any other form,
tangible or intangible, including but not limited to: information concerning
inventions (including patent applications and related documents), discoveries,
techniques, processes, designs, biological materials, specifications,
algorithms, data, finances and plans, customer lists, business plans,
contracts, marketing plans, production plans, distribution plans, system
implementations plans, business concepts, supplier information, business
procedures, business operations; all know-how and trade secrets; and all other
unpublished copyrightable material. 
Confidential Information does not include information which:

(i)                                     is in the public domain prior to disclosure
by the disclosing Party or later enters the public domain through no act or
omission of the receiving Party in breach of this Agreement;

(ii)                                  the receiving Party possessed or controlled
prior to disclosure by the disclosing Party;

(iii)                               a Third Party discloses or makes available,
without an obligation of confidentiality, to the receiving Party;

(iv)                              the receiving Party develops or discovers
independently of any Confidential Information of the disclosing Party; or

(v)                                 the receiving Party is required to disclose
or make available in order to comply with a Federal, state, local, or foreign
law, but only to the extent reasonably necessary to so comply and only upon, to
the extent permitted, providing the disclosing Party with prior notice and an
opportunity to restrict or prevent the disclosure.

1.3                                 “Field” means ***.

1.4                                 “Incremental Net Sales” means Net
Sales in the Territory of a Licensed Product determined as follows:

(i)            The ***.

(ii)           If a ***.

1.5                                 “Licensed Product” means any
product containing STI Technology within the Field.

1.6                                 “Net Sales” of a Licensed Product
means the gross sales revenues and the fair market value of any other
consideration actually received by AG or its Affiliates and sublicensees from
Third Parties arising from the sale in the Territory of such Licensed Product
to such Third Parties, less (i) normal and customary trade, quantity and cash
discounts; rebates; sales, use, and other similar taxes; and transportation,
shipping

 2
 

insurance, handling, and packing charges; and (ii) credits and
allowances on account of returns or retroactive price reductions in lieu of
returns, whether or not during the applicable royalty reporting period.

1.7           “Party” means each of STI and AG.

1.8                                 “STI Development” means any
improvement or development, whether or not patentable or protectable as a trade
secret, relating to or deriving from the STI Technology, made by or on behalf
of STI or acquired from a Third Party, prior to and/or during the term of this
Agreement, including all patents and patent applications to be filed relating
to any such improvements or developments.

1.9                                 “STI Patents” means (i) all U.S. and
foreign patent applications owned or controlled by or licensed to STI or its
Affiliates, pending as of the Effective Date or at any time thereafter during
the term hereof, pertaining to controlling senescence, including original
applications, provisionals, divisions, continuations, continuations in part,
extensions, PCT applications, renewals, reissues, or reexamination applications
or supplemental prosecution certificates, including, but not limited to, all
applications listed in Appendix A; (ii) all U.S. and foreign patents that have
issued or will issue from any application identified in clause 1.11(i) hereof;
and (iii) all U.S. and foreign applications that claim priority in any way from
any application or patent identified in clause 1.11 (i) or (ii).

1.10                           “STI Technology” means STI Patents,
STI Confidential Information, STI Developments, and STI know-how, materials,
information and methods (whether developed by or on behalf of STI or acquired
from a Third Party), including, but not limited to methods for controlling
plant senescence involving altering the expression of plant genes and their
cognate expressed proteins that are induced during or coincident with the onset
of senescence.

1.11                           “Territory”
means worldwide.

1.12                           “Third Party”
means all persons and entities other than STI and AG and their respective Affiliates.

1.13                           “Valid
Claim” means an issued claim of any unexpired patent included among the STI
Patents, which claim has not been held unenforceable, unpatentable or invalid
by a decision of a court or governmental body of competent jurisdiction, unappealable
or unappealed within the time allowed for appeal, which has not been rendered
unenforceable through disclaimer or otherwise or which has not been lost
through an interference or opposition proceeding.

2.             LICENSE GRANT

2.1                               STI grants to AG an exclusive license in the
Field and in the Territory to practice and use the STI Technology and to
develop, make, have made, use, sell, offer to sell, and import

 3
 

Licensed Products.

2.2                                 AG has the right to grant sublicenses
hereunder, provided, however, that STI receives a copy of all
sublicenses (subject to redaction for any confidential and proprietary
information), and (b) that the rights of any sublicensee are no greater than
those granted to AG under this Agreement. 
AG shall not receive from sublicensees anything in lieu of cash payments
in consideration for any sublicense under this Agreement without the prior
written consent of STI, which consent shall not be withheld, delayed, or
conditioned unreasonably.

2.3                                 The Parties acknowledge and agree (a) that
the property licensed hereunder to AG constitutes “intellectual property” as
defined in Section 101(56) of the U.S. Bankruptcy Code, and (b) that this
Agreement is governed by Section 365(n) of the U.S. Bankruptcy Code in the
event that STI commences as a case under same.

2.4                                 Effective
with the Effective Date of this Agreement, AG covenants to STI that AG will not
sell any product in the Field developed or produced using a process that
controls cell death excluding cell death directed to cell differentiation by
modifying membrane integrity, provided, however, (I) that the foregoing
covenant shall not apply in any country to the extent that no Valid Claim
covers any Licensed Product that materially competes with such product in the
Field, and (II) that AG may continue to conduct research and development on,
and may commercialize, any product under development by or on behalf of AG as
of such effective date..  

3.                                      TERM

The term of  this Agreement shall
commence as of the Effective Date, and shall expire upon the expiration of the
last to expire of the STI Patents, unless earlier terminated pursuant to
Section 9 hereof or unless extended by mutual written agreement of the
Parties.  Upon the expiration of the term
hereof, the license granted to AG by Section 2.1 hereof shall be irrevocable
and fully paid up.

4.             PATENTS, PATENT APPLICATIONS
AND PATENT ENFORCEMENT

4.1                                 AG acknowledges that all the STI Technology
is and shall remain the property of STI, and except as provided herein, all
right, title and interest in the STI Technology is and shall remain with STI.

4.2                                 STI shall retain the sole right to prosecute
and maintain any and all patents and patent applications relating to STI
Technology in its sole and absolute discretion. 
If STI decides not to file or to continue to prosecute any patent
application or to continue to maintain any patent on any STI Technology in any
of the United States, Canada, Australia, New Zealand, Argentina, Brazil, Chile,
China, Japan, and European Union, then STI must notify AG of the decision at
least sixty (60) days prior to any applicable patent application or patent
deadline, and AG thereafter shall have the right to file or to continue to
prosecute and maintain, at AG’s expense, and in AG’s name, any such patent

 4
 

application or patent and to practice, worldwide, without any
compensation to STI, any such patent application or patent.

4.3                                 If either Party learns at any time of any
infringement or misappropriation or threatened infringement or misappropriation
in the Field of the STI Technology, that Party will give written notice of that
infringement or misappropriation to the other Party.  Within sixty (60) days from the other Party’s
receipt of that notice, either Party will be at liberty to decline, by written
notice to the other Party, to institute or join in instituting any proceedings
in respect of that infringement or misappropriation.  If either Party so declines, the other Party
can institute such proceedings in its name or in the name of the Party so
declining and will be entitled to retain the whole of any damages recovered as
a result of the proceedings, but only upon previously and properly indemnifying
the Party so declining against all costs, damages, and expenses in respect of
the proceedings.  If neither Party so
declines within such sixty (60) days, then the Parties, if either Party so
requires, forthwith will join in instituting and will prosecute in good faith
and diligently the proceedings, and all costs and expenses thereby incurred and
all damages thereby recovered will be shared equally by the Parties.  For any infringement or misappropriation or
threatened infringement or misappropriation outside the Field, STI shall have
the sole and absolute discretion to institute and pursue any proceeding in
respect of such infringement or misappropriation outside the Field, shall have
complete control of any such proceeding, and shall retain 100% of any monies
received in such proceeding, including all damage awards and settlement
payments. Should STI and AG agree to jointly institute proceedings, they will
determine at that time the sharing of expense and sharing of any award or
judgment. 

4.4                                 STI will defend, at STI’s cost, any action or
proceeding instituted for the revocation of any STI Patent otherwise than by
way of counterclaim in an action for infringement of the STI Patent.

5.             CONSIDERATION

5.1                                 AG shall make the following payments to STI:

(a)          $*** by ***;

(b)         $*** by ***; and

(c)          $*** by ***.

5.2                                 (a)   AG shall
pay, and shall cause *** to pay, to STI *** equal to *** of *** of ***.  In the event that AG *** a *** to *** and ***
does not *** the product to ***, AG will pay *** on ***.

(b)   For each ***, AG shall pay to STI *** on the
*** in *** so long as a *** such *** such ***.  For each ***, AG shall
pay to STI, for *** from the date of this Agreement, the *** on the *** in each
*** in which *** such ***.

 5
 

(c)   No multiple running royalties shall be
payable hereunder because any Licensed Product, the making, having made, using,
offering for sale, importation, or sale of which is covered by more than one
(1) Valid Claim.  Only one multiple
running royalty shall be payable hereunder on the sale of an individual unit of
Licensed Product.

5.3                                 Commencing with *** of AG *** during which AG
***, and continuing thereafter for the next ***, AG shall pay to STI pursuant
to Section 5.2 hereof a ***.

5.4                                 AG shall be entitled to credit any amount
paid to STI pursuant to Section 5.1 hereof against any royalties or other
amounts otherwise due and payable to STI pursuant to Section 5.3 hereof.  AG shall be entitled to credit any amount
paid or deemed to be paid to STI pursuant to Section 5.3 hereof against any
royalties otherwise due and payable to STI pursuant to Section 5.2 hereof.

5.5                                 Any tax required to be withheld by AG under
the laws of any country for the account of STI shall be paid by AG for and on
behalf of STI to the appropriate tax authority in such country, and AG shall
furnish STI with reasonable proof of payment of such tax.  Any such tax required to be withheld for the
account of STI shall be an expense of and shall be borne solely by STI.

5.6                                AG shall pay, and shall cause its Affiliates
and sublicensees to pay, to STI all amounts due and payable under Section 5
hereof in U.S. Dollars.  Notwithstanding
anything else to the contrary, if, at any time, legal restrictions prevent the
prompt remittance of part of or all of the royalties due and payable with
respect to a country where the sale of Licensed Products gives rise to the
obligation of AG and its Affiliates and sublicensees to pay royalties thereon
in accordance with Section 5 hereof, AG and its Affiliates and sublicensees
shall have the right to pay the royalties by depositing the amount thereof in
local currency to an account in STI’s name in a bank or depository in such
country.

6.             REPORTING &
RECORDKEEPING.

6.1                                AG shall, and shall cause its Affiliates and
sublicensees to, keep and maintain accurate records in sufficient detail to
enable the royalty due and payable under Section 5 hereof to be
determined.  Commencing with the first
fiscal quarter of AG during which the sale of a Licensed Product gives rise to
the obligation of AG and its Affiliates and sublicensees to pay royalties
thereon in accordance with Section 5, AG shall furnish, or shall cause its
Affiliates and sublicensees to furnish, to STI a quarterly royalty report for
such fiscal quarter.  Each such report
shall be deemed to be Confidential Information of AG, and the covenants in
Section 7 hereof shall apply to such reports. 
Each such report shall show:  (i)
the calculation of Net Sales and Incremental Net Sales for the applicable
fiscal quarter; and (ii) the royalties in U.S. Dollars which is due and payable
for such quarter.

6.2                                 With respect to sales of Licensed Products
invoiced in U.S. Dollars, the gross sales revenues, Net Sales, Incremental Net
Sales, and royalties due and payable shall be expressed in U.S. Dollars.  With respect to sales of Licensed Products
invoiced in a

 6
 

currency other than U.S.
Dollars, the gross sales revenues, Net Sales, Incremental Net Sales, and
royalties due and payable shall be expressed in the domestic currency of the
party making the sale together with the equivalent in U.S. Dollars of the
royalty payable, calculated using the simply average of the exchange rates
published in The Wall Street Journal on the last day of each month
during the reporting period.  If any of
ArborGen or its Affiliates or licensees makes any sales invoiced in a currency
other than its domestic currency, the gross sales revenues, Net Sales, and
Incremental Net Sales shall be converted to its domestic currency in accordance
with the normal accounting practices of ArborGen or its Affiliates or
licensees.

6.3                                STI shall have the right, upon prior written
notice of thirty (30) days to AG, to appoint an independent certified public
accounting firm, to inspect, during normal business hours, and at STI’s
expense, those accounting records of AG as may be necessary solely to verify
the accuracy of the quarterly reports required to be furnished by AG under
Section 6.1 hereof.  Such accounting firm
shall be subject to the prior written consent of AG, such consent not to be
withheld, delayed, or conditioned unreasonably. 
STI may exercise such right not more than once in each AG fiscal year
and not more than once in respect of any AG fiscal year.  With respect to each AG fiscal year, such
right shall expire forty-eight (48) months following the end of such fiscal
year, and the quarterly reports for such year then shall be binding and conclusive
upon STI and AG, unless STI has exercised its right of inspection before the
expiration.  Before commencing the
inspection, the accounting firm shall execute and deliver, for the benefit of
AG, a nondisclosure agreement reasonably acceptable to AG, by which such firm
agrees to keep and maintain, at all times, in strictest confidence all
Confidential Information disclosed or otherwise made available to such firm as
a result of the inspection.  Upon
completion of the inspection, such firm shall prepare and provide
simultaneously to STI and AG a written report summarizing the results of the
inspection.  Such firm shall not provide
STI with copies of any documents or other information made available to such
firm as a result of the inspection.  If
the report shows an underpayment of royalties by AG or its Affiliates or
sublicensees, AG, within thirty (30) days of AG’s receipt of the report, shall
remit to STI the amount of the underpayment. 
If the report shows that the underpayment exceeds ten (10%) of the total
royalties owed for the fiscal year then being reviewed, AG, within thirty (30)
days of AG’s receipt of reasonable substantiation, shall reimburse STI for STI’s
out-of-pocket costs for the fees and expenses of such accounting firm.  If the report shows an overpayment of
royalties by AG, AG may credit the amount of the overpayment against royalties
due and payable in subsequent fiscal quarters.

7.             CONFIDENTIALITY

7.1                                 Each Party shall respect Confidential
Information disclosed or made available to it by the other Party and shall
treat such Confidential Information in the same manner as if the receiving
Party would treat its own Confidential Information.  The receiving Party shall not disclose such
Confidential Information to any Third Party or to the public except as provided
herein.

 7
 

7.2                                 Each disclosing Party shall designate its
Confidential Information, when disclosed in writing, by stating that such
information is confidential.  When
disclosed orally or visually, each disclosing Party shall state orally that
such information is considered confidential at the time of the disclosure, and
shall provide the receiving Party a written notice summarizing such
Confidential Information within thirty (30) days of the oral or visual
disclosure.

7.3                                 Each Party shall treat and hold as
confidential and shall not disclose to or provide access to a Third Party or to
the public any Confidential Information disclosed or made available to it by
the other Party and will cause its respective agents, representatives, and
employees to do likewise.

7.4                                 Each Party shall use Confidential Information
disclosed or made available to it by the other Party only for the uses
permitted by this Agreement and for any other purpose mutually agreeable to the
Parties or as required by law.

7.5                                 Each Party may disclose Confidential Information
disclosed or made available to it by the other Party, only to the extent the
receiving Party is required to do so pursuant to a final court order; provided,
however, that the receiving Party (i) promptly notifies the disclosing
Party upon its receipt of any pleading, discovery request, interrogatory,
motion or other paper that requests or demands disclosure of such Confidential
Information, and (ii) provides the disclosing Party a reasonable opportunity,
at its expense, to contest any requirement of disclosure, to seek judicial
protection against the disclosure and to have such disclosure as is required
made under a protective secrecy order.

7.6                                 Each Party will return or destroy any
materials containing Confidential Information disclosed or made available by
the other Party, upon the written request of the disclosing Party.  If destroyed, the receiving Party shall
provide the disclosing Party with written certification of destruction of the
materials containing such Confidential Information, said certification to be
signed by an officer of the receiving Party.

7.7                                 Each Party agrees that only those of its
employees, contractors and consultants who need to know the Confidential
Information disclosed or made available to it by the other Party will have access
to same, and then only to the extent necessary to carry out their respective
tasks.  Each employee, contractor, and
consultant to which such Confidential Information will be disclosed must be
bound by confidentiality provisions substantially similar to those in Section 8
hereof.  Each receiving Party agrees to
be responsible for any use by its employees, contractors, and consultants of
such Confidential Information.

7.8                                 Each Party agrees not to disclose the terms
of this Agreement other than as required by law to any regulatory or judicial
body, or as necessary to potential investors or financiers (provided such
potential investors or financiers are subject to confidentiality undertakings)
without the express prior written consent of the other party, which consent
shall not be unreasonably withheld, delayed or conditioned.  The Parties, however, shall be permitted to
prepare press releases disclosing the existence of the Agreement in accordance
with Section 7.9 hereof.

 8
 

7.9                                 Prior to issuing any reports, statements,
press releases, publications, or other disclosures to Third Parties, including
the SEC, regarding this Agreement or the transactions contemplated herein, the
Parties shall exchange copies of said disclosure at least ten (10) days in
advance in the case of press releases and at least sixty (60) days in advance
in the case of any other disclosures, and the Parties shall consult with each
other regarding the content of said disclosure. 
Except as otherwise required by law, neither Party shall issue any such
disclosure without the prior written approval of the other Party, not
unreasonably withheld.

8.             REPRESENTATIONS  AND 
WARRANTIES

8.1                                 STI represents
that, to the best of its knowledge, STI is legally entitled to disclose the STI
Confidential Information disclosed by it, and that, to the best of its
knowledge, the disclosure of the STI Confidential Information under this
Agreement does not violate, infringe or misappropriate any right of a Third
Party.  Except for the warranties
provided in Section 8 hereof, no other warranties are made, whether express or
implied, and STI expressly disclaims all other warranties, including without
limitation, merchantability, fitness for a particular purpose, and
non-infringement.

8.2                                 AG represents
that, to the best of its knowledge, AG is legally entitled to disclose the AG
Confidential Information disclosed by it, and that, to the best of its
knowledge, the disclosure of the AG Confidential Information under this
Agreement does not violate, infringe, or misappropriate any right of a Third
Party.  Except for the warranties
provided in Section 8, no other warranties are made, whether express or
implied, and AG expressly disclaims all other warranties, including, without
limitation, merchantability, fitness for a particular purpose, and
non-infringement.

8.3                                 STI represents
(a) that STI is the sole and exclusive assignee and owner of the STI Patents
and the STI Technology, (b) that STI has not previously assigned, transferred,
conveyed, or otherwise encumbered any right, title, and interest in or to the
rights licensed hereunder, (c) that no issued STI Patent has been held invalid
or unenforceable, in whole or in part, and (d) that there are no claims,
judgments, or settlements to be paid by STI or pending or threatened claims or
litigation to the STI Patents and the STI Technology.

9.                                      DEFAULT AND TERMINATION

9.1                                 Either Party may terminate this Agreement
upon ninety (90) days notice if the other Party fails to fulfill or perform any
one or more of its material duties, obligations, or responsibilities pursuant
to this Agreement and does not cure said failure within sixty (60) days after
receiving notice of said failure.

9.2                                 STI may terminate this agreement if AG
declares or petitions for bankruptcy, is the subject of a bankruptcy petition
filed against it, makes an assignment for the benefit of creditors or seeks
similar relief under state law, or becomes insolvent.

 9
 

9.3                                 Upon termination of this Agreement by STI
pursuant to Section 9.1 hereof, (i) AG shall cease to be licensed under the STI
Patents; (ii) all moneys owed by AG to STI shall become immediately due and
payable; (iii) all STI Confidential Information exchanged pursuant to this
Agreement shall be returned immediately to STI; and (iv) all AG Confidential
Information exchanged pursuant to this Agreement shall be returned immediately
to AG.

9.4                                 Notwithstanding anything else to the contrary
in this Agreement, AG may terminate this Agreement at any time on or after
February 1, 2007, by prior written notice to STI of at least sixty (60)
days.  In the event that AG terminates
this Agreement pursuant to the foregoing sentence, (i) AG shall cease to be
licensed under the STI Patents; (ii) all moneys owed by AG to STI as of the
date of such notice shall be paid promptly; (iii) all STI Confidential
Information exchanged pursuant to this Agreement shall be returned immediately
to STI; and (iv) all AG Confidential Information exchanged pursuant to this
Agreement shall be returned immediately to AG.

10.                               PATENT MARKING

AG shall insure that it and its sublicensee(s) apply patent markings
that meet all requirements of U.S. law, 35 U.S.C. 287, with respect to all
Licensed Products subject to this Agreement.

11.                               PRODUCT LIABILITY

AG shall, at all times during the term of this Agreement and
thereafter, indemnify, defend and hold STI and the inventors of the STI Patents
harmless against all claims and expenses, including reasonable legal expenses
and attorneys fees, arising out of the death of or injury to any person or
persons or out of any damage to property and against any other claim,
proceeding, demand, expense and liability of any kind (other than patent
infringement claims and claims resulting from STI’s own negligence or the
negligence of the inventors of the Licensed patents) resulting from the
production, manufacture, sale, use, lease, consumption or advertisement of
Licensed Products arising from any right or obligation of AG or any sublicensee
hereunder.  STI at all times reserves the
right to select and retain, at its expense, counsel of its own to defend STI’s
interests.

IN NO EVENT WILL A PARTY TO THIS AGREEMENT BE LIABLE TO THE OTHER PARTY
HERETO OR TO ANY THIRD PARTY FOR LOST PROFITS OR LOST SAVINGS OR PUNITIVE,
EXEMPLARY, INCIDENTAL, CONSEQUENTIAL, OR SPECIAL DAMAGES.

12.                               USE OF NAMES

AG and its sublicensee(s) shall not use STI’s name, the name of any
inventor of inventions governed by this Agreement in sales promotion,
advertising, or any other form of publicity without the prior written approval
of the entity or person whose name is

 10
 

being used.  STI shall not use
the name of AG or any of its sublicensee(s) in any press release, advertising,
or any other form of publicity without the prior written approval of AG or any
its sublicensee(s), as applicable.

13.          DISPUTE RESOLUTION

13.1                          STI and AG shall attempt in good faith and
diligently to resolve any dispute arising out of or relating to this Agreement
that otherwise is not resolved in the normal course of business.  Either Party (“Notifying Party”) may
provide, pursuant to this Section 14, the other Party (“Receiving Party”)
with: (i) a written notice of the dispute and a summary thereof, (ii) the name
and contact information of an executive who has authority to settle the dispute
and who has been designated to meet with an executive of Receiving Party to
resolve the dispute, and (iii) copies of any material documents in its
possession or control.  Within twenty
(20) calendar days of its receipt of such notice and documents, Receiving Party
shall provide Notifying Party with: (i) a written summary of its position on
such dispute, (ii) the name and contact information of an executive who has
authority to settle the dispute and who has been designated to meet with
Notifying Party’s executive to resolve the dispute, and (iii) copies of any
other material documents in its possession or control.

13.2                          Within twenty (20) days of Notifying Party’s
receipt of Receiving Party’s information required by Section 13.1 hereof, the
designated executives shall meet, in person, at a mutually acceptable time and
place, and thereafter as often as they reasonably deem necessary, to exchange
relevant information and to attempt in good faith and diligently to resolve the
dispute.  If an executive intends to be
accompanied at any meeting or on any telephone call by counsel, the executive
shall provide the other designated executive with the name and contact
information for such counsel at least seven (7) calendar days in advance of the
meeting or call; the other designated executive thereafter shall have an
opportunity to be accompanied by counsel. 
All negotiations pursuant to Section 13 hereof shall be treated as
compromise and settlement negotiations for purposes of the Federal Rules of
Evidence and state rules of evidence.  If
the Parties fail to resolve the dispute within sixty (60) days of Notifying
Party’s receipt of such information, or if the designated executives fail to
meet within the twenty (20) days, either Party may initiate arbitration of the
dispute pursuant to Section 13.3 hereof.

13.3                          Any dispute arising out of or relating to
this Agreement that otherwise is not resolved pursuant to Sections 13.1 and
13.2 hereof, shall be settled by binding arbitration held in New York, New
York, at a location to be agreed upon, in accordance with the then Commercial
Arbitration Rules of the American Arbitration Association, except as otherwise
specifically provided in Section 13 hereof. 
If the dispute (exclusive of attorney fees and expenses) shall appear,
at the time of the demand for arbitration, to exceed U.S. $1 Million, then the
panel to be appointed shall consist of three (3) neutral arbitrators;
otherwise, the panel shall consist of one (1) neutral arbitrator.  The panel shall allow such discovery as the
panel considers reasonably appropriate under the circumstances and shall
resolve the dispute as expeditiously as practicable, and, if reasonably
practicable, within 120 days after the selection of the panel.  The panel shall give the Parties written

 11
 

notice of the decision, with
reasons therefore set out, and shall, upon the request of a Party within ten
(10) calendar days of receiving the decision, have thirty (30) days to
reconsider and modify the decision. 
Thereafter, the decision of the panel shall be final, binding, and
nonappealable with respect to the Parties and their Affiliates.  The panel shall have authority to award
relief under legal or equitable principles, including interim or preliminary
relief, and to allocate responsibility for the costs of the arbitration.  The fact that the dispute resolution
procedures specified in this Section 14 shall have been or may be invoked shall
not excuse either Party from performing its obligations under this Agreement.

13.4                          All negotiations pursuant to Section 13
hereof, all information disclosed or made available by a Party to the other
Party pursuant such Section, all proceedings under Section 13.3 hereof, and all
evidence given or discovered pursuant to such proceedings shall be maintained
in strictest confidence.

14.          CHOICE OF LAW; CHOICE OF
FORUM

This Agreement shall be construed and interpreted in accordance with
the laws of the State of New York without reference to its choice of law
principles.  Subject to Section 14
hereof, the state and federal courts in Southern District of New York shall
have exclusive jurisdiction of any dispute arising out of or relating to this
Agreement.

15.          ENTIRE AGREEMENT

This Agreement contains the entire understanding and agreement between
STI and AG with respect to the subject matter hereof, and supersedes all prior
oral or written understandings and agreements relating thereto, including the
Development and Option Agreement, dated as of June 28, 2002, by and between STI
and AG.  Neither Party shall be bound by
any conditions, definitions, warranties, understandings, or representations
concerning the subject matter hereof except as are (i) provided in this
Agreement, (ii) contained in any prior existing written agreement between the
Parties, or (iii) duly set forth on or after the Effective Date in a written
instrument subscribed by an authorized representative of the Party to be bound
thereby.

16.          NO WAIVER

No waiver by either Party, whether express or implied, of any provision
of this Agreement, or of any breach or default thereof, shall constitute a
continuing waiver of such provision or of any other provision of this
Agreement.  Either Party’s acceptance of
payments by the other under this Agreement shall not be deemed a waiver of any
violation of or default under any of the provisions of this Agreement.

 12
 

17.          RELATIONSHIP OF THE PARTIES

Nothing
in this Agreement contained shall be construed to constitute the Parties as
partners or as joint venturers, or either as agent or employee of the other
Party.  No Party shall take any action
that purports to bind the other Party.

18.          SEVERABILITY

If any provision or any portion of any provision of this Agreement
shall be held to be void or unenforceable, the remaining provisions of this
Agreement and the remaining portion of any provision held void or unenforceable
in part shall continue in full force and effect.

19.          CONSTRUCTION

This Agreement shall be construed without regard to any presumption or
other rule requiring construction against the Party causing this Agreement to
be drafted.  If any words or phrases in
this Agreement shall have been stricken out or otherwise eliminated, whether or
not any other words or phrases have been added, this Agreement shall be
construed as if those words or phrases were never included in this Agreement,
and no implication or inference shall be drawn from the fact that the words or
phrases were so stricken out or otherwise eliminated.

20.          HEADINGS

The captions and paragraph headings appearing in this Agreement are
inserted for convenience and reference only and in no way define, limit or
describe the scope or intent of this Agreement or any of the provisions
thereof.

21.          ASSIGNMENT

21.1                     No Party may assign any of its rights under
this Agreement, except with the prior written consent of the other Party, such
consent not to be withheld, delayed or conditioned unreasonably.  Without such consent, all assignments of
rights are prohibited under Section 21 hereof, whether they are voluntary or
involuntary, by merger, consolidation, change of control, dissolution, operation
of law or any other manner.  No Party may
delegate any performance under this Agreement. 
Notwithstanding anything else to the contrary in this Section, by
written notice by the assigning Party to the nonassigning Party, each Party may
assign any of its rights and delegate performance under this Agreement to an
assignee (including an Affiliate) of all or substantially all of its assets
related to this Agreement.  Any purported
assignment of rights or delegation of performance in violation of this Section
is void.  Despite any delegation, the
delegating Party remains liable for any performance it delegated.

21.2                        This Agreement shall inure to the benefit of and be binding upon the
Parties and their successors and permitted assigns.

 13
 

22.                               NOTICES

All reports, approvals, requests, demands and notices required or
permitted by this Agreement to be given to a Party (hereafter “Notices”) shall
be in writing.  Notices shall be hand
delivered, sent by certified or registered mail, return receipt requested, or
sent via a reputable private express service which requires the addressee to
acknowledge receipt thereof.  Except as
otherwise provided in this Agreement, Notices shall be effective upon
dispatch.  Notices shall be sent to the
Party concerned as follows (or at such other address as a Party may specify by
notice to the other Party):

	
  As to STI:

  	
   

  	
  Senesco Technologies, Inc.

  
	
   

  	
   

  	
  303 George
  Street, Suite 420

  
	
   

  	
   

  	
  New Brunswick,
  NJ 08901

  
	
   

  	
   

  	
  Facsimile: (732)
  296-9292

  
	
   

  	
   

  	
  Attn: Sascha
  Fedyszyn, Vice President Corporate Development

  

 

	
  As to AG:

  	
   

  	
  ArborGen, LLC

  
	
   

  	
   

  	
  180 Westvaco
  Road

  
	
   

  	
   

  	
  P. O. Box 840001

  
	
   

  	
   

  	
  Summerville, SC
  29484

  
	
   

  	
   

  	
  Facsimile:
  843.851.5071

  
	
   

  	
   

  	
  Attn: Chief
  Executive Officer

  

 

23.          SURVIVAL OF TERMS

The obligations set forth in Section 7 shall survive the termination of
this Agreement.

24.          APPENDICES

All Appendices referenced herein are hereby made a part of this
Agreement.

IN WITNESS WHEREOF, each Party has caused this Agreement to be executed
by its duly authorized representative as of the day and year first above
written.

	
  SENESCO TECHNOLOGIES, INC.

  	
   

  	
   

  	
   

  	
  ARBORGEN, LLC

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Bruce Galton

  	
   

  	
   

  	
   

  	
  By:

  	
  /s/ James E. Mann

  	
   

  
	
  Name:

  	
  Bruce Galton

  	
   

  	
   

  	
   

  	
  Name:

  	
  James E. Mann

  	
   

  
	
  Title:

  	
  Chief Executive Officer

  	
   

  	
   

  	
   

  	
  Title:

  	
  Vice President

  	
   

  
											

 14
 

APPENDIX A

STI Patents

***

 15

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