Document:

Filed by Bowne Pure Compliance

Exhibit 10.4

EXECUTION VERSION

DATED
                    
2008 

GYPSUM TRANSPORTATION LIMITED

- to -

DVB BANK SE

 

DEED OF ASSIGNMENT

m.v. “GYPSUM CENTENNIAL”

 

STEPHENSON HARWOOD

One, St. Paul’s Churchyard

London EC4M 8SH

Tel: 020 7329 4422

Fax: 020 7329 7100

Ref: 819/1575/47-00986

 

 

 

CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	1 Definitions and Interpretation
	 	 	2	 
	 
	 	 	 	 
	2 Covenant to Pay and Perform
	 	 	4	 
	 
	 	 	 	 
	3 Assignment
	 	 	4	 
	 
	 	 	 	 
	4 Ancillary Provisions
	 	 	6	 
	 
	 	 	 	 
	5 Application of Moneys
	 	 	6	 
	 
	 	 	 	 
	6 Power of Attorney
	 	 	7	 
	 
	 	 	 	 
	7 Partial Invalidity
	 	 	7	 
	 
	 	 	 	 
	8 Further Assurance
	 	 	7	 
	 
	 	 	 	 
	9 Miscellaneous
	 	 	7	 
	 
	 	 	 	 
	10 Re-Assignment
	 	 	8	 
	 
	 	 	 	 
	11 Notices
	 	 	8	 
	 
	 	 	 	 
	12 Counterparts
	 	 	8	 
	 
	 	 	 	 
	13 Law and Jurisdiction
	 	 	8	 
	 
	 	 	 	 
	APPENDIX A
	 	 	11	 
	 
	 	 	 	 
	APPENDIX B
	 	 	12	 
	 
	 	 	 	 
	APPENDIX C
	 	 	13	 
	 
	 	 	 	 
	APPENDIX D
	 	 	14	 
	 
	 	 	 	 
	Acknowledgement
	 	 	16	 
	 
	 	 	 	 

 

 

 

DEED OF ASSIGNMENT

Dated:
                     2008

BY:

	(1)	 	GYPSUM TRANSPORTATION LIMITED, a company incorporated according to the law of Bermuda whose
registered office is at Clarendon House, 2 Church Street, Hamilton HM11, Bermuda (the “Owner”)

IN FAVOUR OF:

	(2)	 	DVB BANK SE with its registered office in Frankfurt and acting through its office at Parklaan
2, 3016BB Rotterdam, The Netherlands (the “Assignee”).

WHEREAS:

	(A)	 	Each of the banks listed in Schedule 1 to the Loan Agreement (as defined below) (collectively
the “Banks”) has agreed to advance to the Owner its respective Commitment of an aggregate
amount not exceeding the total of (i) the lesser of forty million Dollars ($40,000,000) and
fifty per centum (50%) of the Market Value of Vessel A (in respect of Tranche A) and (ii) the
lesser of fifty million Dollars ($50,000,000) and fifty per centum (50%) of the Market Value
of Vessel B (in respect of Tranche B) (the “Loan”) on the terms and subject to the conditions
set out in a loan agreement dated 2008 made between the
Owner (as borrower), the Banks (as lenders), and the Assignee as agent and security trustee
for the Banks (the “Loan Agreement”).

	(B)	 	Pursuant to the Loan Agreement, and as a condition precedent to the several obligations of
the Banks to make the Loan available to the Owner, the Owner has, amongst other things, agreed
to execute and deliver in favour of the Assignee as security trustee for the Finance Parties a
first priority statutory mortgage of the Owner’s Bermuda flag vessel m.v. “GYPSUM CENTENNIAL”
(the “Vessel” and together with the m.v. “GYPSUM INTEGRITY” the “Vessels”) together with a
collateral deed of covenants (together the “Mortgage”) and this Deed as security for the
payment of the Indebtedness.

	(C)	 	The Owner is the legal and beneficial owner of the Vessel and the Assigned Property and has
executed the Mortgage on the same date as this Deed.

 

 

 

THIS DEED WITNESSES as follows:

	1	 	Definitions and Interpretation

	 	1.1	 	In this Deed:

	 
	 	 	 	“Assigned Property” means the Insurances, the Earnings and the Requisition
Compensation and the CoA Rights.

	 
	 	 	 	“CoAs” means each of:-

	 	(a)	 	the contract of affreightment commencing as of
January 1, 2008 made between the Borrower and United States Gypsum
Company;

	 	(b)	 	the contract of affreightment dated 30 October
2007 made between the Borrower and Public Service of New Hampshire
Company;

	 	(c)	 	the contract of affreightment dated 18 April
2008 made between the Borrower and Mt. Tom Generating Co. LLC; and

	 	(d)	 	any future contracts of affreightment to be
entered into by the Borrower in respect of the Vessel

(each a “COA”).

“CoA Rights” means all of the rights of the Borrower under or pursuant to the CoAs.

“Earnings” means all hires, freights, pool income and other sums payable to or for
the account of the Owner in respect of the Vessel including (without limitation) all
payments under the CoAs remuneration for salvage and towage services, demurrage and
detention moneys, contributions in general average, compensation in respect of any
requisition for hire, and damages and other payments (whether awarded by any court
or arbitral tribunal or by agreement or otherwise) for breach, termination or
variation of any contract for the operation, employment or use of the Vessel.

“Finance Parties” means the Assignee and the Banks and “Finance Party” means any one
of them.

“Indebtedness” means the Loan; all other sums of any nature (together with all
interest on any of those sums) which from time to time may be payable by the Owner
to the Banks or to the Assignee pursuant to the Security Documents; any
damages payable as a result of any breach by the Owner of any of the Security
Documents; and any damages or other sums payable as a result of any of the
obligations of the Owner under or pursuant to any of the Security Documents being
disclaimed by a liquidator or any other person, or, where the context permits, the
amount thereof for the time being outstanding.

 

2

 

“Insurances” means all policies and contracts of insurance (including all entries in
protection and indemnity or war risks associations) which are from time to time
taken out or entered into in respect of or in connection with the Vessel or her
increased value or the Earnings and (where the context permits) all benefits under
such contracts and policies, including all claims of any nature and returns of
premium.

“Requisition Compensation” means all compensation or other money which may from time
to time be payable to the Owner as a result of the Vessel being requisitioned for
title or in any other way compulsorily acquired (other than by way of requisition
for hire).

“Security Documents” means the Loan Agreement, the Mortgages, the Assignments, the
Guarantee, the Account Security Deed, the Managers’ Undertakings or (where the
context permits) any one or more of them, and any other agreement or document which
may at any time be executed by any person as security for the payment of all or any
part of the Indebtedness.

	 	1.2	 	Unless otherwise specified in this Deed, or unless the context otherwise
requires, all words and expressions defined in the Loan Agreement shall have the same
meaning when used in this Deed.

	 
	 	1.3	 	In this Deed:

	 	1.3.1	 	words denoting the plural number include the singular and vice versa;

	 
	 	1.3.2	 	words denoting persons include corporations, partnerships,
associations of persons (whether incorporated or not) or governmental or
quasi-governmental bodies or authorities and vice versa;

	 
	 	1.3.3	 	references to Clauses are references to clauses of this Deed;

	 
	 	1.3.4	 	references to this Deed include the recitals to this Deed;

 

3

 

	 	1.3.5	 	the headings and contents page(s) are for the purpose of
reference only, have no legal or other significance, and shall be ignored in
the interpretation of this Deed;

	 	1.3.6	 	references to any document (including, without limitation, to
any of the Security Documents) are, unless the context otherwise requires,
references to that document as amended, supplemented, novated or replaced from
time to time;

	 	1.3.7	 	references to statutes or provisions of statutes are
references to those statutes, or those provisions, as from time to time
amended, replaced or re-enacted; and

	 	1.3.8	 	references to any Finance Party include its successors,
transferees and assignees.

	2	 	Covenant to Pay and Perform

The Owner agrees to pay to the Finance Parties all moneys comprised in the Indebtedness and
to perform all its other obligations arising out of the Security Documents as and when the
same shall be due for payment or performance.

	3	 	Assignment

	 	3.1	 	In order to secure the payment of the Indebtedness and the performance by the
Owner of all its other obligations under or arising out of the Security Documents the
Owner with full title guarantee assigns and agrees to assign absolutely and
unconditionally to the Assignee as security trustee for the Finance Parties all the
Owner’s right, title and interest, present and future, in and to the Assigned Property.

	 	3.2	 	The Owner warrants that it has not disposed of, nor created or permitted any
Encumbrance or other third party right to arise on or over, any of the Assigned
Property other than Permitted Encumbrances.

 

4

 

	 	3.3	 	The Owner undertakes:

	 	3.3.1	 	immediately following the execution of this Deed and at any
other time reasonably required by the Assignee during the Facility Period, to
give written notice (materially in the form set out in Appendix A or in such
other form as the Assignee may require) to the underwriters (or, in the case of
entries in protection and indemnity or war risks associations or clubs, to
the managers of those associations or clubs) of the assignment of the
Insurances contained in this Deed; and

	 	3.3.2	 	immediately following the execution of this Deed and at any
other time required by the Assignee during the Facility Period, to give to the
Assignee a written authority (materially in the form set out in Appendix B or
in such other form as the Assignee may require) addressed to the managers of
each protection and indemnity or war risks association or club in which the
Vessel is entered irrevocably authorising those managers to give to the
Assignee or its agents such information and documents relating to the entry of
the Vessel in the association or club as the Assignee may from time to time
reasonably require; and

	 	3.3.3	 	to procure that a loss payable clause materially in the form
set out in Appendix C (or in such other form as the Assignee may approve) or,
in the case of entries in a protection and indemnity association, a note of the
Assignee’s interest in such form as the Assignee may approve, shall be endorsed
on or attached to the policies, cover notes or certificates of entry relating
to the Insurances and that letters of undertaking in such form as the Assignee
may approve shall be issued to the Assignee by the brokers through whom the
Insurances are placed (or, in the case of entries in protection and indemnity
or war risks associations, by their managers); and

	 	3.3.4	 	immediately following the execution of this Deed in respect of
the existing COAs and immediately following the execution of any future COAs to
give written notice (materially in the form of Appendix D or in such other form
as the Assignee may require) to the counterparties to each CoA of the
assignment of the Earnings contained in this Deed, and to procure the
acknowledgement of that notice by such counterparties in the manner provided in
the notice; and

	 	3.3.5	 	from time to time immediately on the written request of the
Assignee to give such further written notice in such form as the Assignee shall
reasonably require of the assignment of the Earnings and/or the Requisition
Compensation contained in this Deed.

 

5

 

	4	 	Ancillary Provisions

	 	4.1	 	The Owner undertakes to reimburse the Assignee on demand for all reasonable
sums which the Assignee may from time to time pay or become liable for in or about the
protection, maintenance or enforcement of the rights created in favour of the Assignee
by this Deed or in or about the exercise by the Assignee of any of the powers vested in
it under or pursuant to this Deed, together in each case with interest at the Default
Rate from the date when those sums were paid by the Assignee until the date of actual
receipt, before or after any relevant judgment, and to keep the Assignee fully and
effectually indemnified from and against all actions, losses, claims, proceedings,
costs, demands and liabilities which the Assignee may suffer or incur under or in
connection with the Assigned Property, except when due to the Assignee’s wilful
misconduct or gross negligence.

	 	4.2	 	Notwithstanding the assignments contained in this Deed, the Assignee shall not
be obliged to make any enquiry as to the nature or sufficiency of any payment received
by it under or in connection with this Deed nor to make any claim or take any other
action to collect any money or to enforce any rights or benefits assigned to the
Assignee by this Deed or to which the Assignee may at any time be entitled under or
pursuant to this Deed.

	 	4.3	 	The Owner shall remain liable to perform all the obligations assumed by it in
relation to the Assigned Property and the Assignee shall be under no obligation of any
kind in respect of the Assigned Property nor under any liability in the event of any
failure by the Owner to perform, or breach by the Owner of, any of those obligations.

	 	4.4	 	The Owner undertakes to hold the original copies of any and all documents in
connection with any of the Assigned Property to the order of the Assignee.

	5	 	Application of Moneys

	 	5.1	 	The benefits and proceeds of any of the Insurances shall be distributed in
accordance with the terms of any relevant loss payable clause referred to in
Clause 3.3.3.

	 	5.2	 	Subject to Clause 5.1, the benefits and proceeds of any of the Assigned
Property shall, unless otherwise agreed by the Assignee or otherwise expressly provided
in the Loan Agreement, be applied by the Assignee in or towards satisfaction, or by way
of retention on account, of the Indebtedness, in such manner as the Assignee may in
its discretion determine.

 

6

 

	6	 	Power of Attorney

So far as may be necessary to give effect to this Deed the Owner hereby irrevocably appoints
the Assignee its attorney (with unlimited power of substitution and delegation) for the
purpose of doing in the name of the Owner all acts which the Owner could do in relation to
the Assigned Property. Such power of attorney shall only be exercisable during the
continuance of an Event of Default. The Assignee shall advise the Owner of the exercise of
such power of attorney pursuant to this Clause, promptly following the exercise of such
power of attorney.

	7	 	Partial Invalidity

If, at any time, any provision of this Deed is or becomes illegal, invalid or unenforceable
in any respect under any law of any jurisdiction, neither the legality, validity or
enforceability of the remaining provisions nor the legality, validity or enforceability of
such provision under the law of any other jurisdiction will in any way be affected or
impaired.

	8	 	Further Assurance

The Owner agrees that from time to time on the written request of the Assignee it will
immediately execute and deliver to the Assignee all further documents which the Assignee may
reasonably require for the purpose of obtaining the full benefits of this Deed.

	9	 	Miscellaneous

	 	9.1	 	In the event of there being any conflict between this Deed and the Loan
Agreement or the Mortgage, the Loan Agreement or the Mortgage (as the case may be)
shall prevail.

	 	9.2	 	All the covenants and agreements of the Owner in this Deed shall bind the Owner
and its successors and permitted assignees and shall inure to the benefit of the
Finance Parties and their respective successors, transferees and assignees.

	 	9.3	 	The representations and warranties on the part of the Owner contained in this
Deed shall survive the execution of this Deed.

 

7

 

	 	9.4	 	The rights of the Assignee under this Deed shall not be affected by any change
in the constitution of the Owner or by the liquidation, bankruptcy or insolvency of the
Owner.

	 	9.5	 	No variation or amendment of this Deed shall be valid unless in writing and
signed on behalf of the Owner and the Assignee.

	 	9.6	 	Other than the Finance Parties, a person who is not a party to this Deed has no
right under the Contracts (Rights of Third Parties) Act 1999 to enforce or to enjoy the
benefit of any term of this Deed.

	10	 	Re-Assignment

Following the expiry of the Facility Period the Assignee will, at the cost of and on the
request of the Owner, promptly execute and deliver a re-assignment to the Owner of the
Assigned Property, to the extent then still subsisting and capable of re-assignment.

	11	 	Notices

The provisions of clause 16 of the Loan Agreement shall (mutatis mutandis) apply to this
Deed as if it were set out in full with references to this Deed substituted for references
to the Loan Agreement.

	12	 	Counterparts

This Deed may be executed in any number of counterparts, and this has the same effect as if
the signatures on the counterparts were on a single copy of this Deed.

	13	 	Law and Jurisdiction

	 	13.1	 	This Deed shall in all respects be governed by and interpreted in accordance
with English law.

	 	13.2	 	For the exclusive benefit of the Assignee, the Owner irrevocably agrees that
the courts of England are to have jurisdiction to settle any disputes which may arise
out of or in connection with this Deed and that any proceedings may be brought in those
courts.

 

8

 

	 	13.3	 	Nothing contained in this Clause shall limit the right of the Assignee to
commence any proceedings against the Owner in any other court of competent jurisdiction
nor shall the commencement of any proceedings against the Owner in one or more
jurisdictions preclude the commencement of any proceedings in any other
jurisdiction, whether concurrently or not.

	 	13.4	 	The Owner irrevocably waives any objection which it may now or in the future
have to the laying of the venue of any proceedings in any court referred to in this
Clause and any claim that those proceedings have been brought in an inconvenient or
inappropriate forum, and irrevocably agrees that a judgment in any proceedings
commenced in any such court shall be conclusive and binding on it and may be enforced
in the courts of any other jurisdiction.

	 	13.5	 	Without prejudice to any other mode of service allowed under any relevant law,
the Owner:

	 	13.5.1	 	irrevocably appoints USG (U.K.) Ltd, 1 Swan Road, South West Industrial
Estate, Peterlee, County Durham, SR8 2HS, Attention: Secretary, as its agent
for service of process in relation to any proceedings before the English
courts; and

	 	13.5.2	 	agrees that failure by a process agent to notify the Owner of the process
will not invalidate the proceedings concerned.

 

9

 

IN WITNESS of which this Deed has been duly executed and delivered the day and year first before
written.

	 	 	 
	SIGNED and DELIVERED

	 	) 
	as a DEED

	 	) 
	by GYPSUM TRANSPORTATION

	 	) 
	LIMITED

	 	) 
	acting by

	 	) 
	 

	 	) 
	its duly authorised

	 	) 
	 

	 	) 
	in the presence of:

	 	) 
	 
	 	 
	SIGNED and DELIVERED

	 	) 
	as a DEED

	 	) 
	by DVB BANK SE

	 	) 
	acting by

	 	) 
	 

	 	) 
	its duly authorised

	 	) 
	 

	 	) 
	in the presence of:

	 	) 

 

10

 

APPENDIX A

NOTICE OF ASSIGNMENT

(For attachment by way of endorsement to

all policies, contracts and cover notes)

We, Gypsum Transportation Limited of Clarendon House, 2 Church Street, Hamilton HM11, Bermuda, the
owner of the m.v. “Gypsum Centennial” (the “Vessel”) GIVE NOTICE that, by an assignment in writing
dated
                     2008, we assigned to DVB Bank SE with its registered office in Frankfurt, acting through its
office at Parklaan 2, 3016BB Rotterdam, The Netherlands (as security trustee for itself and others)
all our right, title and interest in and to all insurances effected or to be effected in respect of
the Vessel, including the insurances constituted by the policy on which this notice is endorsed,
and including all money payable and to become payable thereunder or in connection therewith
(including return of premiums).

	 	 	 	 	 
	Signed:
	 	 	 	 
	 

	 	 

	 	 

 For and on behalf of

 Gypsum Transportation Limited

Dated:
                     2008

 

11

 

APPENDIX B

To: Willis

We, Gypsum Transportation Limited of Clarendon House, 2 Church Street, Hamilton HM11, Bermuda, the
owner of the m.v. “Gypsum Centennial” (the “Vessel”) irrevocably authorise you to disclose to DVB
Bank SE (the “Assignee”) or its agents all information and documents relating to the entry of the
Vessel in [name of association or club] as the Assignee or its agents may from time to time
require.

Please note that this authority may not be varied or revoked without the prior written consent of
the Assignee.

	 	 	 	 	 
	Signed:
	 	 	 	 
	 

	 	 

	 	 

 For and on behalf of

 Gypsum Transportation Limited

Dated:
                     2008

 

12

 

APPENDIX C

Loss Payable Clause

It is noted that, by an assignment in writing collateral to a first priority statutory mortgage and
deed of covenants both dated
                     2008 (together the “Mortgage”), Gypsum Transportation Limited of Clarendon House, 2 Church Street, Hamilton HM11,
Bermuda (the “Owner”), owner of the vessel m.v. “GYPSUM CENTENNIAL” (the “Vessel”), assigned
absolutely to DVB Bank SE with its registered office in Frankfurt, acting through its office at
Parklaan 2, 3016BB Rotterdam, The Netherlands (as security trustee for itself and others) (the
“Mortgagee”) this policy and all benefits of this policy, including all claims of any nature
(including return of premiums) under this policy.

Claims payable under this policy in respect of a total or constructive total or an arranged or
agreed or compromised total loss or unrepaired damage and all claims which (in the opinion of the
Mortgagee) are analogous thereto shall be payable to the Mortgagee up to the Mortgagee’s mortgage
interest.

Subject thereto, all other claims, unless and until underwriters have received notice from the
Mortgagee of an event of default under the Mortgage, in which event all claims under this policy
shall be payable directly to the Mortgagee up to the Mortgagee’s mortgage interest, shall be
payable as follows:

	(i)	 	a claim in respect of any one casualty where the aggregate claim against all insurers does
not exceed FIVE HUNDRED THOUSAND UNITED STATES DOLLARS (US$500,000) or the equivalent in any
other currency, prior to adjustment for any franchise or deductible under the terms of the
policy, shall be paid directly to the Owner for the repair, salvage or other charges involved
or as a reimbursement if the Owner has fully repaired the damage and paid all of the salvage
or other charges;

	(ii)	 	a claim in respect of any one casualty where the aggregate claim against all insurers exceeds
FIVE HUNDRED THOUSAND UNITED STATES DOLLARS (US$500,000) or the equivalent in any other
currency prior to adjustment for any franchise or deductible under the terms of the policy,
shall, subject to the prior written consent of the Mortgagee, be paid to the Owner as and when
the Vessel is restored to her former state and condition and the liability in respect of which
the insurance loss is payable is discharged, and provided that the insurers may with such
consent make payment on account of repairs in the course of being effected,
but, in the absence of such prior written consent shall be payable directly to the Mortgagee
up to the Mortgagee’s mortgage interest.

 

13

 

APPENDIX D

Notice of Assignment of Contract of Affreightment

To:

Dear Sirs

We hereby notify you that we have assigned in favour of DVB Bank SE (the “Lender”) pursuant to an
assignment of created by us in favour of the Lender dated
                     2008, as security for a loan made to us,
all our right, title and interest in and to the Contract of Affreightment made between ourselves
and yourselves dated [                    ] (the “Contract”) including all monies payable by you to us in respect of
the Contract.

With effect from the date you receive this notice:

	(a)	 	all payments to be made by you to us under or in respect of the Contract should be made to
our account number [                    ] held with [                    ] or as the Lender may otherwise specify in writing from
time to time;

	 
	(b)	 	we remain liable to perform all the obligations assumed by us under the Contract;

	(c)	 	no changes may be made to the Contract and no rights of termination may be exercised by us
without the reasonable consent of the Lender; and

	(d)	 	you are hereby authorised and instructed to provide to the Lender such information relating
to the Contract as the Lender may request and to send to it copies of all notices issued by
you under the Contract, and to provide us with copies of such request and notices.

These instructions may not be revoked or varied without the prior written consent of the Lender.

 

14

 

Please acknowledge receipt of this notice by signing and returning the enclosed copy of this notice
to the Lender at Parklaan 2, 3016BB Rotterdam, The Netherlands.

Yours faithfully

	 	 	 
	 
	 	 
	 

For and on behalf of

	 	 
	GYPSUM TRANSPORTATION LIMITED
	 	 
	 
	 	 
	Date:                      2008
	 	 

 

15

 

Acknowledgement

of Assignment of Contract of Affreightment

			
	To:	 	(i) DVB Bank SE (the “Lender”)

(ii) Gypsum Transportation Limited (the “Company”)

We acknowledge receipt of the notice set out above and confirm that:

	(a)	 	we shall comply with the terms of the notice;

	 
	(b)	 	we have not received notice of any other interest in respect of the Contract;

	 
	(c)	 	no amendment, waiver or release of any right, interest or benefit under the Contract shall be
effective without the prior written consent of the Lender;

	 
	(d)	 	we shall not exercise any right to terminate the Contract or enforce any of our rights unless
we have given 30 days’ prior written notice to the Lender of the proposed exercise or
enforcement;

	 
	(e)	 	no default by the Company of any of the terms of the Contract shall be deemed to have
occurred until the expiry of 30 days after the date notice of that default is given to the
Lender with details of the steps required to remedy that default;

	 
	(f)	 	we consent to the assignment reflected in the notice; and

	 
	[(g)	 	we waive the requirement that the Lender as assignee assume in writing the obligations of the
Company as assignor under the Contract, as required pursuant to paragraph 27 of the Contact
and confirm that we may look only to the Company for performance under the Contract] [COA
dated 1 January 2008 only.]

 

16

 

This acknowledgement shall be governed by English law and is executed and delivered as a deed.

	 	 	 
	 
	 	 
	 

For and on behalf of

	 	 
	[                                         ]
	 	 
	 
	 	 
	Date:                      2008
	 	 

 

17Filed by Bowne Pure Compliance

Exhibit 10.15

PATENT PURCHASE AGREEMENT

This Patent Purchase Agreement (this “Agreement”), between World Waste Technologies, Inc., a
California corporation (the “Seller”), and CleanTech Biofuels, Inc., a Delaware corporation (the
“Buyer”), is entered into as of October 22, 2008 (the “Effective Date”). The Seller and the Buyer
together may be referred to herein as the “Parties” and each of them may be referred to herein as a
“Party.”

RECITALS

WHEREAS, the Seller owns U.S. Patent No. 6,306,248 (the “Patent”); and

WHEREAS, the Buyer wishes to buy the Patent and certain other associated rights, and the
Seller is willing to sell the Patent and certain associated rights, all in accordance with the
terms of this Agreement;

NOW THEREFORE, in consideration of the foregoing recitals and of the following covenants, the
sufficiency of which are hereby acknowledged, the Seller and the Buyer hereby agree as follows:

	1.	 	Sale of Patent

1.1. Purchase and Sale of Patent. At the Closing (as defined below), the Seller
hereby agrees to sell, transfer and deliver to the Buyer, and the Buyer hereby agrees to
purchase and pay for, all of the Seller’s right, title and interest in and to the Patent,
including (i) all rights, claims, credits, judgments, choses in action, or rights for past,
present or future infringement against third parties relating to the Patent, (ii) all
inventions (whether patentable or unpatentable and whether or not reduced to practice),
improvements thereto, and patents, patent applications, and patent disclosures, together
with all reissuances, continuations, continuations-in-part, revisions, extensions, and
reexaminations thereof, (iii) all trademarks, service marks, trade dress, logos, and trade
names (whether or not registered), together with all translations, adaptations, derivations,
and combinations thereof and including all goodwill associated therewith, and all
applications, registrations, and renewals in connection therewith, (iv) all copyrightable
works, all copyrights, and all applications, registrations, and renewals in connections
therewith, (v) all trade secrets and confidential business information (including research
and development, know-how, formulas, compositions, manufacturing and production processes
and techniques, technical data, designs, drawings, and specifications), (vi) all computer
software (including data and related documentation), (vii) all other proprietary rights, and
(viii) all copies and tangible embodiments thereof (in whatever form or medium), in the case
of each of (i) through (viii), if and solely to the extent that they (1) directly relate to,
directly describe or directly involve the technology described in the Patent, (2) are, to
the Seller’s Knowledge (as defined below), in the actual possession of the Seller, and (3)
do not violate any of the Ancillary Agreements (as defined below). All of the foregoing are
referred to herein as the “Acquired Patent.” The Seller makes no representations or
warranties as to what, if anything, is in its possession with respect to the foregoing,
other than the actual Patent. The term “Seller’s Knowledge” means the
actual knowledge of Seller’s chief executive officer or chief operating officer, without
independent inquiry or investigation.

 

 

 

1.2. Consideration. At the Closing, the Buyer shall pay the Seller a total of
$600,000.00 for the Acquired Patent. The foregoing purchase price shall be paid on the
Closing Date as follows: (i) $150,000.00 in the form of cash in immediately available funds
(the “Initial Payment”), and (ii) $450,000.00 in the form of a Note for a term of nine
months bearing interest at the rate of 6.0% (the “Note”) to be issued on the Closing Date in
the form of Exhibit A attached hereto. The Note shall be secured by a pledge of the
Patent pursuant to a Security Agreement in the form of Exhibit B attached hereto
(the “Security Agreement”). In addition, in consideration for the Seller entering into this
Agreement, Buyer shall, on the Closing Date, issue to Seller (i) an immediately exercisable
warrant to purchase up to 900,000 shares of the Common Stock of the Buyer at a price equal
to $0.45 per share (the “Warrant”) and (ii) a contingent warrant to purchase up to an
additional 900,000 shares of the Common Stock of the Buyer at a price equal to $0.45 per
share (the “Contingent Warrant”), in the respective forms of Exhibit C and
Exhibit D attached hereto.

1.3. Assignment of Litigation Rights. The Seller may currently have the right to
initiate legal proceedings against third parties and to collect damages and other payments
relating to the Acquired Patent, including claims for patent infringement (any such
possible rights and actions relating to the Acquired Patent that are assigned hereunder are
referred to as the “Potential Claims”). Effective as of the Closing, the Seller hereby
assigns and transfers any and all rights it currently has or hereafter may acquire (i) to
initiate legal proceedings against any party related to the Potential Claims, if any, and
(ii) to collect and keep for its own benefit all damages or other payments that it may
collect from any party based on any Potential Claims. Nothing herein, however, shall grant
the Buyer any rights that the Seller currently has or may hereafter acquire to initiate and
pursue legal proceedings based on any patents, patent applications or other intellectual
property owned by the Seller other than the Acquired Patent, all of which are
expressly retained by the Seller.

1.4. Status of Various Agreements. The Buyer understands that the Seller initially
acquired the Patent from the University of Alabama in Huntsville (“UAH”) pursuant to a
Patent Assignment Agreement, a copy of which is attached hereto as Exhibit E (the
“UAH Patent Assignment”). The Buyer acknowledges that it is acquiring the Patent hereunder
subject in all respects to the UAH Patent Assignment. The Buyer further understands that
the Seller had sub-licensed the Patent pursuant to a Revised Amended and Restated
Technology License Agreement between the Seller and Bio-Products International, Inc.
(“BPI”), dated August 19, 2005, a copy of which is attached hereto as Exhibit F
(the “BPI License Agreement”). Although the Seller believes that the BPI License Agreement
is no longer effective, the Buyer acknowledges that the Seller is making no representations
or warranties with respect to the status of such agreement, and that if such agreement is
in effect, the Buyer is acquiring the Acquired Patent subject in all respects thereto. The
Buyer further acknowledges that the use of the Acquired Patent is subject to a license
agreement between UAH and BPI (the “Main License Agreement”). In this regard, the Buyer
acknowledges that it is acquiring the
Acquired Patent subject to an exclusive worldwide license and subject to any other licenses
and sub-licenses that the holder of such license may have granted.

 

2

 

1.5. Closing. The closing of the transactions contemplated hereby (the “Closing”)
shall take place at the offices of TroyGould PC, 1801 Century Park East, Los Angeles,
California, on the Effective Date (the “Closing Date”).

1.6. The Seller’s Deliveries at Closing. On the Closing Date, the Seller shall
execute and deliver, or cause to be executed and delivered, to the Buyer, an Assignment of
Patent (the “Assignment of Patent”) in the form set forth on Exhibit G hereto, the
Security Agreement (duly executed by the Seller), and such other instruments of conveyance
and assignment as the Buyer and its counsel shall deem reasonably necessary to vest in the
Buyer the right, title and interest in and to the Acquired Patent. Notwithstanding the
foregoing, the Seller shall not be obligated to deliver to the Buyer any documentation or
other materials relating to the Patent (as described in Section 1.1) unless and until the
Note has been repaid in full.

1.7. The Buyer’s Deliveries at Closing. On the Closing Date, the Buyer shall
deliver to the Seller the Closing Payment by wire transfer of immediately available funds in
accordance with the wire instructions set forth in Schedule 1 hereto, the Note, the
Warrant, the Contingent Warrant and the Security Agreement (each duly executed by the
Buyer).

	2.	 	Representations and Warranties.

2.1. Representations and Warranties of the Seller. The Seller hereby represents and
warrants to the Buyer as follows, which representations shall be true and correct as of the
date of this Agreement and as of the Closing Date:

2.1.1. Organization and Authorization. (i) The Seller is duly organized,
validly existing and in good standing under the laws of its jurisdiction of
organization, with all requisite corporate power and authority to enter into this
Agreement and the transactions contemplated hereby, (ii) the execution, delivery and
performance of this Agreement and the Assignment of Patent has been authorized by
all necessary corporate action of the Seller, (iii) each of this Agreement and the
Assignment of Patent is a valid, binding obligation of the Seller, enforceable
against the Seller in accordance with its terms except as may be limited by
applicable federal or state bankruptcy, insolvency, reorganization, moratorium or
other laws affecting creditors’ rights generally; and (iv) the CES Agreement (as
defined below) is the full and complete agreement on the subject matter thereof and
there have been no extensions, modifications, waivers, or amendments thereto.
Notwithstanding the foregoing, the Buyer acknowledges its understanding that the
Seller has granted to CES (as defined below) a series of extensions of time to
conclude the consummation of the transactions contemplated by the CES Agreement.
Although the Seller believes that it currently has no obligations to CES under the
CES Agreement, the Seller makes no representations or warranties to the Buyer with
respect thereto and the Buyer
agrees to assume any risk associated therewith as provided for in Section 2.2.2
hereof.

 

3

 

2.1.2. Status of Patent. To the Seller’s actual knowledge, without
independent investigation or inquiry, (i) the Acquired Patent includes all of the
applications owned or controlled by the Seller on the date hereof that relate to
processes for cleaning and separating municipal solid waste into its component parts
or any equipment designed for such purposes, (ii) there are no other US or foreign
filings owned or controlled by the Seller filed prior to the date hereof which claim
rights in any technology that could be used to clean and separate municipal solid
waste into its component parts, and (iii) the Seller has provided the Buyer with
copies of all existing agreements relating to the right to use all or part of the
Acquired Patent that are in the Seller’s possession. The Buyer expressly
acknowledges that it understands that the holder of the worldwide license to the
Patent and other parties (i) may have foreign patent applications pending relating
to technology that could be used to clean and separate municipal solid waste into
its component parts, and (ii) may have granted sublicenses to third parties with
respect to the Patent.

2.1.3. Indemnification. The Seller shall indemnify, defend and hold
harmless the Buyer and each of its shareholders, directors, officers, employees,
agents, attorneys and representatives, from and against any and all Losses (as
defined below) which may be incurred or suffered by any such party and which arises
out of or results from any breach of any representation, warranty, covenant or
agreement of the Seller contained in this Agreement. “Losses” means any claim,
liability, obligation, loss, damage, assessment, penalty, judgment, settlement,
cost and expense, and including reasonable fees and disbursements incurred in
investigating, preparing, defending against or prosecuting any claim.

2.2. Representations and Warranties of the Buyer. The Buyer hereby represents and
warrants to the Seller as follows:

2.2.1. Organization and Authorization. (i) The Buyer is duly organized,
validly existing and in good standing under the laws of its jurisdiction of
organization, with all requisite corporate power and authority to enter into this
Agreement, the Security Agreement, the Note, the Warrant and the Contingent Warrant
(collectively, the “Transaction Documents”) and the transactions contemplated hereby
and thereby; (ii) the execution, delivery and performance of each Transaction
Document has been authorized by all necessary corporate action of the Buyer; and
(iii) each Transaction Document is a valid, binding obligation of the Buyer,
enforceable against the Buyer in accordance with its terms except as may be limited
by applicable federal or state bankruptcy, insolvency, reorganization, moratorium or
other laws affecting creditors’ rights generally.

 

4

 

2.2.2. CES Agreement. The Buyer hereby acknowledges that it is aware that
the Seller is party to an agreement (the “CES Agreement”) relating to the sale of
the Acquired Patent to Clean Earth Solutions, Inc. (“CES”). A copy of the CES
Agreement is attached hereto as Exhibit H. The Buyer further acknowledges
that it is fully aware of all of the circumstances surrounding the CES Agreement and
that in entering into this Agreement, it is assuming all risks associated with any
possible claims that might be made against it or the Seller by CES arising under the
CES Agreement with respect to the performance thereof after the date of this
Agreement.

2.2.3. Indemnification. The Buyer shall indemnify, defend and hold
harmless the Seller, the Seller’s current and future affiliates, and each of their
respective shareholders, directors, officers, employees, agents, attorneys and
representatives, from and against any and all Losses which may be incurred or
suffered by any such party and which arises out of or results from (i) any breach of
any representation, warranty, covenant or agreement of the Buyer contained in any
Transaction Document, (ii) any action taken by CES or any of the License Parties (as
defined below) (or any of their sub-licensees) against the Seller as a result of the
Seller entering into this Agreement, and (iii) any use by the Buyer of the Acquired
Patent following the Closing.

2.2.4. Capitalization; Warrants The capitalization of the Buyer is as set
forth on the Capitalization Schedule attached hereto as Schedule 2. The
 shares of Common Stock issuable upon exercise of each of the Warrant and the
Contingent Warrant will, upon issuance, be validly issued and outstanding, fully
paid and non-assessable shares of the Buyer’s Common Stock, with no personal
liability attaching to the ownership thereof, free and clear of any liens whatsoever
and with no restrictions on the voting rights or transfer thereof and other
incidents of record and beneficial ownership pertaining thereto.

2.3. Definitions. As used herein, the following terms shall be defined as follows:

2.3.1. “Ancillary Agreements” means the UAH Patent Assignment, the BPI License
Agreement, the Main License Agreement and the CES Agreement.

2.3.2. “License Parties” means the UAH, BPI and CES, and their respective
affiliates.

2.4. Disclaimer. EXCEPT AS EXPRESSLY SET FORTH IN SECTION 2.1, THE ACQUIRED PATENT
IS BEING SOLD “AS-IS AND WHERE-IS” AND THE SELLER MAKES NO, AND HEREBY DISCLAIMS ANY,
REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, TO THE BUYER WITH RESPECT TO THE ACQUIRED
PATENT OR THE TRANSACTIONS CONTEMPLATED HEREBY, INCLUDING, WITHOUT LIMITATION, WARRANTIES OF
VALIDITY, MERCHANTABILITY, NONINFRINGEMENT, AND FITNESS FOR A PARTICULAR PURPOSE. Without
limiting the generality of the foregoing, the Seller makes no representations as to the
efficacy or usefulness of the Acquired Patent and the associated licenses and sub-licenses,
and the Seller assumes no responsibility for the successful or unsuccessful application of
the technology contained in the Acquired Patent or in the Buyer’s ability to
successfully defend the Acquired Patent, collect fees from licensees, resell the Acquired
Patent, or use the Acquired Patent in any way.

 

5

 

2.5. LIMITATION ON LIABILITY. THE SELLER SHALL HAVE NO LIABILITY WITH RESPECT TO
ITS OBLIGATIONS UNDER THIS AGREEMENT OR OTHERWISE FOR CONSEQUENTIAL, EXEMPLARY, SPECIAL,
INDIRECT, INCIDENTAL OR PUNITIVE DAMAGES, EVEN IF IT HAS BEEN ADVISED OF THE POSSIBILITY OF
SUCH DAMAGES. IN ANY EVENT, THE LIABILITY OF THE SELLER TO THE BUYER FOR ANY REASON AND
UPON ANY CAUSE OF ACTION OR CLAIM IN CONTRACT, TORT OR OTHERWISE WITH RESPECT TO THIS
AGREEMENT SHALL BE LIMITED TO THE AMOUNTS ACTUALLY PAID BY THE BUYER TO THE SELLER
HEREUNDER. BOTH PARTIES UNDERSTAND AND AGREE THAT THE LIMITATIONS AND EXCLUSIONS SET FORTH
HEREIN REPRESENT THE PARTIES’ AGREEMENT AS TO THE ALLOCATION OF RISK BETWEEN THE PARTIES
UNDER THIS AGREEMENT.

	3.	 	Conditions to Closing 

3.1. Seller’s Closing Conditions. The Seller’s obligations to consummate the
transactions contemplated hereby are subject to the satisfaction of the following conditions
as of the Closing Date:

3.1.1. Representations and Warranties; Performance of Obligations. All
representations and warranties of the Buyer contained in each Transaction Document
shall be true and correct in all material respects as of the Closing Date with the
same force and effect as though made at and as of the Closing Date and all of the
terms, covenants and conditions of each Transaction Document to be complied with,
performed and satisfied by the Buyer at or before the Closing Date shall have been
complied with, performed and satisfied in all material respects.

3.2. Buyer’s Closing Conditions. The Buyer’s obligations to consummate the
transactions contemplated hereby are subject to the satisfaction of the following conditions
as of the Closing Date:

3.2.1. Representations and Warranties; Performance of Obligations. All
representations and warranties of the Seller contained in this Agreement shall be
true and correct in all material respects as of the Closing Date with the same force
and effect as though made at and as of the Closing Date and all of the terms,
covenants and conditions of this Agreement to be complied with, performed and
satisfied by the Seller at or before the Closing Date shall have been complied with,
performed and satisfied in all material respects.

 

6

 

4. Omitted

5. Confidentiality.

5.1. Either Party may disclose or may have disclosed (the “Disclosing Party”) to the other
party (the “Receiving Party”) certain information that the Disclosing Party considers to be
confidential and/or proprietary, including, but not limited to confidential and/or
proprietary information relating to the Acquired Patent, the Disclosing Party’s technical
processes and formulas, product designs, customer lists, product and business plans,
revenues, projections, marketing and other data (collectively, “Confidential Information”).
Notwithstanding the foregoing, Confidential Information does not include information (i)
already known by the Receiving Party without an obligation of confidentiality, (ii) publicly
known or which becomes publicly known through no omission or unauthorized act of the
Receiving Party, (iii) rightfully received from a third party without any obligation of
confidentiality, or (iv) independently developed by the Receiving Party without use of the
Disclosing Party’s Confidential Information.

5.2. The Receiving Party shall make use of the Confidential Information only for the
purposes of this Agreement and shall protect the Disclosing Party’s Confidential Information
by using the same degree of care, but not less than a reasonable degree of care, to prevent
the unauthorized access, use, dissemination, or publication of the Confidential Information
as the Receiving Party uses to protect its own Confidential Information of a like nature.

5.3. All Confidential Information shall remain the property of the Disclosing Party, and
such Confidential Information and all copies thereof (if any), shall be promptly returned to
the Disclosing Party upon request or upon termination of this Agreement or, at the
Disclosing Party’s sole option, destroyed, in which case the Disclosing Party shall be
notified promptly in writing when its Confidential Information has been destroyed. The
furnishing of any Confidential Information between the Parties shall not constitute the
granting of any right or license to use such Confidential Information.

5.4. The Buyer acknowledges and agrees that (i) certain Confidential Information about the
Seller, including this Agreement, constitutes “confidential information” within the meaning
of Regulation FD promulgated by the Securities and Exchange Commission, and (ii) it is are
aware that federal securities laws prohibit any person who has confidential information
about a public company from purchasing or selling, directly or indirectly, securities of
such public company (including entering into hedging transactions involving such
securities), or from communicating such information to any other person under circumstances
in which it is reasonably foreseeable that such person is likely to trade in such
securities.

 

7

 

6. Notices. Any notice or communication required or permitted to be delivered to any Party
under this Agreement shall be in writing and shall be deemed properly delivered, given and received
when delivered (by hand, by registered mail, by courier or express delivery service or by fax) to
the address or fax number set forth beneath the name of such Party below (or to such other address
or fax number as such Party shall have specified in a written notice given to the other Party
hereto):

	 	 	 
	If to the Seller:

	 	World Waste Technologies, Inc.
	 

	 	13500 Evening Creek Drive North
	 

	 	Suite 440
	 

	 	San Diego, California 92128
	 

	 	Attention: Chief Executive Officer
	 

	 	Facsimile: (858) 486-3352
	 
	 	 
	With a copy to:

	 	TroyGould PC
	 

	 	1801 Century Park East, 16th Floor
	 

	 	Los Angeles, California 90067
	 

	 	Attention: Lawrence P. Schnapp
	 

	 	Fax: (310) 201-4746
	 
	 	 
	If to the Buyer to:

	 	CleanTech Biofuels, Inc.
	 

	 	7386 Pershing Avenue
	 

	 	St. Louis, Missouri 63130
	 

	 	Attention: Michael D. Kime
	 

	 	Facsimile: (314) 802-8675

7. Termination; Survival of Representations, Warranties and Covenants; Etc. This Agreement
shall terminate automatically if the Closing does not occur on or before October 
 _____ 

, 2008. No
termination of this Agreement shall relieve any Party from liability for any breach of this
Agreement committed prior to termination. All representations and warranties contained in this
Agreement shall survive for a period of two years following the Closing Date. The provisions of
Sections 2.1.3, 2.2.3, 2.3, 2.4, 2.5, 5, 6 and 8 and shall survive the termination of this
Agreement.

	8.	 	Miscellaneous.

8.1. Governing Law; Jurisdiction. This Agreement was executed in, and the
transactions contemplated by and the provisions of this Agreement shall be governed by and
construed in accordance with, the laws of the State of California, without giving effect to
the conflict of laws provisions thereof; and both Parties consent to the jurisdiction of the
state and federal courts sitting in California.

8.2. Expenses. Except as provide for in Section 2.1.3 and 2.2.3, each Party shall
be responsible for its own expenses incurred in connection with this Agreement and the
transactions contemplated hereby, and the Buyer shall be responsible for all filing and
recordation fees relating to the transfer of the Acquired Patent hereunder.

8.3. Entire Agreement; Third Party Beneficiaries; Assignment; Etc. This Agreement,
including all exhibits and schedules attached hereto, constitutes and contains the entire
agreement of the Parties and supersedes any and all prior negotiations, correspondence,
understandings and agreements between the Parties respecting the subject matter hereof,
except that the terms and conditions of that certain Confidentiality Agreement between the
Parties shall remain in effect. No Transaction Document is intended to confer upon any
person other than the Parties thereto any rights or remedies. Neither Party may
assign its rights or obligations under any Transaction Document without the prior written
consent of the other Party (not to be unreasonably withheld).

 

8

 

8.4. Counterparts. This Agreement may be executed in counterparts and shall be
effective when each Party has executed at least one of the counterparts even though both
Parties have not executed the same counterpart.

IN WITNESS WHEREOF, this Agreement has been executed as of the date first written above.

	 	 	 	 	 
	 	SELLER: WORLD WASTE TECHNOLOGIES, INC.

	 	By:  	
 	 
	 	 	Name:  	John Pimentel 	 
	 	 	Title:  	President and Chief Executive Officer 	 

	 	 	 	 	 
	 	BUYER:      CLEANTECH BIOFUELS, INC.

	 
	 	By:  	
 	 
	 	 	Name:  	Edward P. Hennessey 	 
	 	 	Title:  	President 	 

 

9

 

EXHIBIT A

FORM OF NOTE

 

 

 

EXHIBIT B

FORM OF SECURITY AGREEMENT

 

 

 

EXHIBIT C

FORM OF WARRANT

 

 

 

EXHIBIT D

FORM OF CONTINGENT WARRANT

 

 

 

EXHIBIT E

UAH PATENT ASSIGNMENT

 

 

 

EXHIBIT F

BPI LICENSE AGREEMENT

 

 

 

EXHIBIT G

FORM OF PATENT ASSIGNMENT

 

 

 

EXHIBIT H

CES AGREEMENT

 

 

 

Schedule 1

Wire Instructions

 

 

 

Schedule 2

Capitalization Schedule

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