Document:

Exhibit 10.1

 

[...*...] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

 

LICENSE AGREEMENT

 

THIS LICENSE AGREEMENT MADE AS OF THE 2nd DAY OF October 2006

 

BETWEEN:

 

THE GOVERNORS OF THE UNIVERSITY OF ALBERTA

a corporation under the Universities Act, R.S.A. 1980, c. U-5,

Edmonton, Alberta, Canada T6G 2El, having a place of business at

Suite 4000, 10230 - Jasper Avenue, Edmonton, AB T5J 4P6

CANADA

(hereinafter known as “University”)

 

and

 

ARCADIA BIOSCIENCES, INC.

a corporation incorporated under the laws of Arizona, having a place of business at

202 Cousteau Place, Suite 200, Davis, California 95616

(hereinafter known as “Arcadia”)

 

RECITALS

 

WHEREAS Arcadia is engaged in the business of researching, developing and commercializing technology relating to improved performance of plants;

 

AND WHEREAS AgriGenomics Inc. (“AgriGenomics”) was a spin-off company of the University of Alberta and was engaged in the business of developing and commercializing technology, namely, genetically engineering plants to exhibit desirable characteristics, such as nitrogen use efficiency;

 

AND WHEREAS under a Master Affiliation Agreement and a License Agreement (the “License Agreement”), each dated April 1, 2000, AgriGenomics was granted by the University rights to use and sublicense certain technology and to manufacture, distribute, and sell certain products on the terms and conditions set forth in the License Agreement with the University;

 

AND WHEREAS AgriGenomics, the University of Alberta, and Seaphire International, Inc. (“Seaphire”) entered into a Sublicense Agreement (“Sublicense”) dated June 14, 2002, which Sublicense contained a provision whereby the University was obligated to offer Seaphire a direct license agreement with the University if the License Agreement was terminated by the University;

 

AND WHEREAS Arcadia acquired all assets of Seaphire including all rights under the Sublicense;

 

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AND WHEREAS the University terminated the License Agreement effective October 2, 2006, and Arcadia now wishes to exercise its right to acquire a license to the Technology from the University on terms and conditions no less favorable to Arcadia than those found in the License Agreement, pursuant to Section 3.6 of the Sublicense.

 

NOW THEREFORE this Agreement WITNESSETH that in consideration of the premises and of the mutual covenants herein set forth, the parties hereto have covenanted and agreed as follows:

 

Article 1 — DEFINITIONS

 

1.01        In this Agreement, unless a contrary intention appears, the following words and phrases shall mean:

 

(a)           “Commencement Date” means October 2, 2006.  This Agreement will be deemed to have come into force on the 2nd day of October, 2006 and shall be read and construed accordingly.

 

(b)           “Field of Use” means the development of methods, products, and services related to agriculture, which the Parties agree shall include production, marketing, distribution and sales of plants, seed and crops, and products therefrom, the products from which are sold or used for food, feed, industrial products, therapeutic products, turf and lawn, horticulture, bioremediation and other agricultural applications;

 

(c)           “Improvements” includes any and all improvements, variations, updates, modifications and enhancements relating to the Technology or the University Patents;

 

(d)           “Materials” includes all seeds, plants, cell lines, vectors, plasmids, clones, micro organisms, antibodies, antigens, test plates, reagents, chemicals, compounds, physical samples, models and specimens delivered by the University to AgriGenomics including those specifically described as nitrogen-efficient plants, disease resistant plants and insect resistant plants, and all progeny and derivatives thereof;

 

(e)           “Net Royalty Revenue” as used herein shall mean the gross revenue of Arcadia and any Related Person from sublicensing all or any part of the Technology and the University Patents, or Improvements, to another person, less the following:

 

(i)            fees or commissions paid to any third party broker or the like in connection with the execution of the sublicense; and

 

(ii)           that part of any tax or duty actually paid by Arcadia in connection with any sublicensing activities for which Arcadia is not eligible for a refund of the tax paid (for greater clarity, if Arcadia is eligible for a partial refund, only the portion of the tax paid that is not

 

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eligible to be refunded shall be included in the deduction from gross revenue).

 

(f)            “Net Sales” as used herein shall mean Arcadia’s gross collected sales revenue from Products and any item, matter, product or thing containing or incorporating the Products, less the following:

 

(i)            fees or commissions paid to any third party and reasonable trade, quantity, or cash discounts, but with respect to any of the preceding adjustments, only insofar as actually allowed or paid in connection with the sale in question;

 

(ii)           credits or allowances, if any, given or made on account of rejection or return of defective Products; and

 

(iii)          that part of any sales tax, excise tax, and manufactured goods duty actually paid by Arcadia with respect to any Products for which Arcadia is not eligible for a refund of the tax paid (for greater clarity, if Arcadia is eligible for a partial refund, only the portion of the tax paid that is not eligible to be refunded shall be included in the deduction from gross sales revenue).

 

(g)           “Product” means any product or substance that consists of, or incorporates the Technology or the University Patents and “Products” means more than one Product

 

(h)           “Related Person(s)”has the meaning assigned to it in section 251 of the Income Tax &, Stats. Can. 1970-71-72, c. 63, as amended.

 

(i)            “Royalty Due Dates” means the last working day of June and December of each and every year during which this Agreement remains in full force and effect.

 

(j)            “Technology” refers to University references #95036 “A method to increase seed and seedling vigour”, #99038 “Identification of genes for root maggot resistance in canola” #99043 “Identification of genes for flea beetle resistance in canola” and #2000006 “Tissue-specific expression of target genes in plants” and includes any and all Materials, knowledge, know-how and/or technique or techniques invented, being invented, developed and/or acquired prior to or after the Effective Date, by the University or Arcadia based upon the University Patents and/or the above University references. The definition specifically excludes new technologies developed by the University for which separate license agreements would need to be concluded.  The definition also specifically excludes technology developed by Arcadia in accordance with Paragraph 10.02 and any inventions, developments, or improvements relevant to the Field of Use developed by the

 

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AgriGenomics and/or Dr. Allen Good pursuant to research funded in whole or in part by Arcadia;

 

(k)           “University of Alberta Trade-marks” means any mark, trade-mark service mark, logo, insignia, seal, design or other symbol/device used by the University and associated with or referring to the University or any of its facilities.

 

(l)            “University Patents” means the patents identified on Schedule 1, and future patents and applications filed in other jurisdictions relating to the Technology, together with re-issued patents, patents issued from a continuation application, divisional application or continuation-in part application.

 

Article 2 - PROPERTY RIGHTS IN AND TO THE TECHNOLOGY

 

2.01        Except as otherwise provided in Section 1.01(j) and Article 10, the parties hereto hereby acknowledge and agree that the University owns any and all right, title and interest in and to the Technology and the University Patents, including any and all Improvements, variations and enhancements made with respect to the Technology that are developed at the University both before and after the Commencement Date.

 

2.02        Arcadia shall, at the request of the University, enter into such further agreements and execute any and all documents as may be required to ensure that ownership of the Technology and the University Patents reside with the University.

 

2.03        The parties shall deliver to each other, in writing the details of any and all Improvements, variations, updates, modifications and enhancements relating to the Technology and the University Patents.

 

2.04        The University agrees to use commercially reasonable efforts to inform relevant University researchers (including University personnel, contractors, and students) of Arcadia’s rights and the University’s obligations under this Agreement.  Arcadia acknowledges, however, that University policies governing the academic freedom of University researchers may, in some instances, make it impossible for the University to compel action or inaction of University researchers in order for the University to satisfy some of its obligations under this Agreement with respect to transfer, disclosure, license, or publication of certain aspects of the Technology that may be developed in the future.  This acknowledgement by Arcadia shall not be interpreted as a waiver of the University’s obligation to act in good faith in its efforts to comply with its obligations under this Agreement.

 

In any event, the University will use commercially reasonable efforts to inform relevant University researchers of Arcadia’s interest in exploring the possibility of future business relationships with University researchers with respect to aspects of the Technology developed in the future, as well as New Technologies.

 

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Article 3 - GRANT OF LICENSE

 

3.01        In consideration of the royalty payments reserved herein, and the covenants on the part of Arcadia contained herein, the University hereby grants to Arcadia an exclusive, worldwide license to use and sublicense the Technology and the University Patents, including any Improvements made with respect to the Technology; and to manufacture, distribute, import, use, offer to sell and sell Products on the terms and conditions hereinafter set forth within the Field of Use (the “License”).

 

3.02        Notwithstanding Article 3.01 herein, the parties acknowledge and agree that the University may use the Technology without charge in any manner whatsoever for research, scholarly publication (as per Article 11), educational, or other non-commercial use.

 

Article 4 — TERM OF LICENSE

 

4.01        This Agreement will terminate on the expiration of the last of the University Patents, unless earlier terminated pursuant to the provisions of this Agreement.

 

Article 5 — ROYALTIES

 

5.01        Arcadia will pay to the University [...*...] of all lump sum payments, cash consideration, non-cash consideration, and/or equity received as an initial, up-front fee in exchange for granting any sublicense. The maximum cumulative amount for all sublicenses that will be paid to the University pursuant to this Section 5.01 is [...*...].

 

5.02        Arcadia will make annual royalty payments to the University based on Net Sales and Net Royalty Revenue as follows:

 

(a)           [...*...] of Arcadia’s Net Sales of Products in the particular calendar year;

 

(b)           Arcadia shall pay to the University a royalty equal to [...*...] of Arcadia’s Net Royalty Revenue in the particular calendar year for all sublicenses to use all or any part of the Technology, the University Patents and Improvements owned by the University;

 

(c)           in the event that Arcadia is required to pay royalties to any third party to use any part of the Technology, the University Patents, and/or Improvements owned by the University in order to realize Net Sales or Net Royalty Revenue from the Technology, the University Patents, and/or Improvements, the percentage of royalties paid to the University will be reduced accordingly, with a maximum reduction of [...*...] (which, for purposes of clarity, translates to a minimum royalty of [...*...] of

 

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Net Sales and [...*...] of Net Royalty Revenue to be paid to the University in accordance with Sections 5.02(a)-(c)); and

 

(d)           the parties further agree that the total of all royalties and sublicense fee sharing payments made pursuant to Sections 5.01 and 5.02 of this Agreement shall be capped at a total maximum amount of [...*...] dollars.

 

5.03        If Arcadia is found to be deficient in the payment of royalties to the University following an audit as described in Article 12.04, then Arcadia shall pay an interest penalty of prime plus three percent (3%) on the outstanding amount.

 

5.04        The royalty shall become due and payable on each respective Royalty Due Date and shall be calculated with respect to the Net Sales and Net Royalty Revenue of Arcadia in the six (6) month period immediately preceding the applicable Royalty Due Date. Arcadia shall pay such royalty within thirty (30) days of the same becoming due and payable.

 

5.05        All payments of royalties made by Arcadia to the University hereunder shall be made in United States dollars without any reduction or deduction of any nature or kind whatsoever, except as may be prescribed by Canadian law.

 

5.06        Products shall be deemed to have been sold and included in the Net Sales of Arcadia upon receipt of payment by Arcadia.

 

5.07        Arcadia shall have the option to buyout the license fee sharing payments and royalties specified in Sections 5.01 and 5.02 above at any time prior to December 31, 2010, for the sum of [...*...] dollars less any royalties and sublicense fee sharing payments previously paid to the University pursuant to this Article 5.

 

Article 6 - ROYALTY PAYMENTS AFTER TERMINATION

 

6.01        Arcadia shall cease to use the Technology in any manner whatsoever or to manufacture the Products within five (5) clear days from the date that this Agreement is terminated (“Effective Date of Termination”).  Arcadia shall then deliver or cause to be delivered to the University an Accounting within thirty (30) clear days from the Effective Date of Termination. The Accounting will specify, in or on such terms as the University may in its sole discretion require, the inventory or stock of Products manufactured and remaining unsold (the “Unsold Products”) on the Effective Date of Termination. The Unsold Products shall be sold under the direction of the University in any or all parts of the world where Arcadia is permitted by law to sell the Unsold Products until the Unsold Products have all been sold. Arcadia will make royalty payments to the University in the same manner specified in Article 5 herein on all Unsold Products.

 

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Article 7 - SUBLICENSING GRANT

 

7.01        Arcadia shall have the right to grant sublicenses with respect to the Technology and the University Patents, including any Improvements made with respect to the Technology; upon the general terms and conditions contained in this Agreement, but not including the specific royalty provisions hereof.

 

7.02        Any sublicense granted by Arcadia shall be personal to the sublicensee and shall not be assignable without the prior written consent of the University, except as in connection with the sale or transfer of all or substantially all of the sublicensee’s assets (or all or substantially all of sublicensee’s assets related to the sublicense), such consent not to be unreasonably withheld; provided, however, that Arcadia shall provide written notice to the University, no less frequently than annually, of any assignments by sublicensees not requiring prior written consent of the University.  Such sublicenses shall contain covenants by the sublicensee to observe and perform similar terms and conditions to those in this Agreement so far as the same may be capable of observance and performance by the sublicensee, including, without limitation, the provisions for insurance and termination, but not including the specific royalty provisions hereof.

 

7.03        Arcadia will not market, lease, or sublicense the Technology to any Related Person or Persons without the express written consent of the University, which consent shall not be unreasonably withheld.

 

7.04        Arcadia shall notify the University of sublicensing activities, and shall furnish the University with a copy of each sublicense granted within thirty (30) days after execution of same.

 

Article 8 — ASSIGNMENT

 

8.01        Except as provided for in Article 7 herein, and except as in connection with the sale or transfer of al or substantially all of a party’s assets (or all or substantially all of a party’s assets related to this Agreement), this Agreement shall not be assigned by either party without the prior written consent of the other party, which consent shall not be unreasonably withheld.

 

Article 9 — PATENTS

 

9.01        Arcadia shall have the right to identify any other process, use or products arising out of the Technology that may be patentable and take all reasonable steps to apply for a patent in the name of the University (subject to Article 10), provided that Arcadia pays all costs of applying for, registering, and maintaining the patent in those jurisdictions in which Arcadia might designate that a patent is required.

 

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9.02        In the event of the issuance of a patent arising out of the Technology, Arcadia shall have the right to become, and shall become, the licensee of the same all pursuant to the terms contained herein.

 

9.03        Arcadia shall assume all responsibility (including payment and management) for maintenance of any issued University Patents.

 

Article 10 — OWNERSHIP OF TECHNOLOGY & IMPROVEMENTS

 

10.01      The parties hereby acknowledge and agree that the University owns any and all right, title, and interest in and to the Technology and the University Patents, including any and all Improvements made with respect to the Technology and/or the University Patents developed at the University before the Effective Date of this Agreement or the effective date of the Sublicense.

 

10.02      The parties hereby acknowledge and agree that Arcadia owns any and all right, title interest in and to:

 

(i)            any and all improvements made with respect to the Technology and/or the University Patents developed pursuant to and in the course of private research conducted by Arcadia or its agents, contractors, subcontractors or employees and conducted without the use of laboratory facilities provided by the University;

 

(ii)           any and all improvements made with respect to the Technology and/or the University Patents developed pursuant to research sponsored in whole or in part by Arcadia and conducted without the use of laboratory facilities provided by the University;

 

(iii)          any and all inventions, technology, developments, and/or other intellectual property developed pursuant to research sponsored in whole or in part by Arcadia and conducted without the use of laboratory facilities provided by the University; and

 

(iv)          any and all

 

(A)          improvements made with respect to the Technology and/or the University Patents developed pursuant to and in the course of private research conducted by Arcadia or its agents, contractors, subcontractors or employees

 

(B)          improvements made with respect to the Technology and/or the University Patents developed pursuant to research sponsored in whole or in part by Arcadia and conducted by AgriGenomics without the use of laboratory facilities provided by the University; and

 

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(C)          inventions, technology, developments, and/or other intellectual property developed pursuant to research sponsored by Arcadia, other than Improvements owned by the University under Section 10.01.

 

10.03      Arcadia shall, at the request of the University, enter into such further agreements and execute any and all documents as may be required to ensure that ownership of the Technology and the University Patents, including applicable Improvements, as set out in Section 10.01, reside with the University.

 

10.04      The University shall, at the request of Arcadia, enter into such further agreements and execute any and all documents as may be required to ensure that ownership of any and all Improvements and the University Patents as set out in Section 10.02 above, reside with Arcadia.

 

10.05      The University hereby releases any claim to any claim of right, title, or other forms of ownership to any improvements owned by Arcadia as defined in Section 10.02.

 

Article 11 - PUBLICATION AND CONFIDENTIALITY

 

11.01      The parties hereto acknowledge and agree that they will treat the Technology as confidential and that they will not disclose or communicate or cause to be disclosed or communicated the Technology to any person or organization without the appropriate non-disclosure agreements, except as permitted under a sublicense.

 

11.02      The parties covenant and agree that they will initiate and maintain an appropriate internal program limiting the internal distribution of the Technology to their officers, servants or agents and to take the appropriate non-disclosure agreements from persons who may have access to the Technology.

 

11.03      Notwithstanding anything contained in Sections 11.01, 11.02 or elsewhere in this Agreement, the parties acknowledge that as the University is a public educational institution, it cannot be exposed to claims for damages that may result from a breach of this Agreement. Arcadia, therefore, covenants and agrees that the University shall not be liable to Arcadia for any loss or damage, whether direct, indirect,  consequential, incidental, special or any other similar or like damages, that may arise or do arise from the breach of this Agreement by the University or any of its servants, agents, students or faculty.

 

11.04      The University shall be permitted to present at symposia, national or regional professional meetings, and to publish in journals or other publications accounts of its research relating to the Technology, provided that Arcadia shall have been

 

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furnished copies of any proposed disclosure at least sixty (60) days in advance of the presentation or publication date and does not within forty-five (45) days after receipt of the proposed disclosure object to such presentation or publication. In the event objection is made, such disclosure shall not be made for a period of three (3) months after the date Arcadia has made said objection. The University shall co-operate in all reasonable respects in making revisions to any proposed disclosure if considered by Arcadia to be objectionable. After the three (3) month period has elapsed, the University shall be free to present and/or publish said proposed disclosure.

 

Article 12 - ACCOUNTING RECORDS

 

12.01      Arcadia shall maintain at its principal place of business, or such other place as may be most convenient, separate accounts and reasonable records of business done pursuant to this Agreement, such accounts and records to be in sufficient detail to enable proper returns to be made under this Agreement, and Arcadia shall require sublicensees to keep similar accounts.

 

12.02      Arcadia shall deliver to the University on the date thirty (30) days after the Royalty Due Date, together with the royalty payable thereunder, an accounting statement (the “Accounting”) setting out in detail how Net Sales and Net Royalty Revenue were determined.

 

12.03      The calculation of royalties shall be carried out in accordance with generally accepted accounting principles in effect in the United States, including, without limitation, those approved or recommended from time to time by the American Institute of Certified Public Accountants, or any successor institute, applied on a consistent basis.

 

12.04      Arcadia shall retain the accounts and records referred to in Article 12.01 above for at least three (3) years after the date upon which they were made and shall permit any duly authorized representative of the University to inspect such accounts and records during normal business hours of Arcadia at the University’s expense. Arcadia shall furnish such reasonable evidence as such representative may deem necessary to verify the Accounting and will permit such representative to make copies of or extracts from such accounts, records and agreements at the University’s expense.

 

12.05      During the term of this Agreement and thereafter, all information provided to the University or its representatives pursuant to this Article shall remain confidential and be treated as such by the University, and the University will not make same available to any other person except as may be required by law.

 

12.06      Notwithstanding the termination of this Agreement, this Article 12 shall remain in full force and effect until:

 

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(a)           all payments of royalties required to be made by Arcadia to the University under this Agreement have been made by Arcadia to the University; and

(b)           any other claim or claims of any nature or kind whatsoever of the University against Arcadia have been settled.

 

Article 13 - PRODUCTION AND MARKETING

 

13.01      Arcadia shall use its best efforts to promote, market, and sell the Products and utilize the Technology and to meet or cause to be met the world market demand for the Products and the utilization of the Technology, either directly or through its sublicensees.

 

13.02      Arcadia shall not use any of the University of Alberta Trade-marks or make reference to the University or its name in any advertising publicity whatsoever, without the prior written consent of the University.

 

13.03      In the event that the University is of the view that Arcadia is in breach of the covenant contained in this Article 13, the University shall notify Arcadia and the parties hereto shall appoint an independent evaluator (the “Evaluator”), mutually acceptable to both parties, to review the efforts made by Arcadia with respect to the promotion, marketing and sale of the Products and sublicensing of the Technology (the “Evaluation”).

 

13.04      In the event that the parties cannot agree on the Evaluator, the appointing authority shall be the Alberta International Commercial Arbitration Centre. Evaluations shall be limited to one (1) per calendar year.

 

13.05      If the Evaluator determines that Arcadia is in breach of the covenant contained in this Article 13, then the University shall have the right to terminate this Agreement as provided in Article 17 herein. If the Evaluator determines that Arcadia is not in breach of the covenant contained in this Article 13, then the University shall not terminate this Agreement for breach of this Article.

 

13.06      The cost of an evaluation hereunder shall be borne fifty percent (50%) by Arcadia and fifty percent (50%) by the University.

 

Article 14 — INSURANCE

 

14.01      One (1) month prior to the first sale of a Product, Arcadia will give notice to the University of the terms and amount of the public liability and product liability insurance which it has placed in respect of the same, which in no case shall be less than the insurance which a reasonable and prudent businessmen carrying on a similar line of business would acquire. This insurance shall be placed with a reputable and financially secure insurance carrier, shall include the University, the Board of Governors, its faculty, officers, employees, students and agents as additional insureds, and shall provide primary coverage with respect to the

 

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activities contemplated by this Agreement. Such policy shall include severability of interest and cross-liability clauses and shall provide that the policy shall not be canceled or materially altered except upon at least thirty (30) days’ written notice to the University. The University shall have the right to require reasonable amendments to the terms or the amount of coverage contained in the policy. Failing the parties agreeing on the appropriate terms or the amount of coverage, then the matter shall be determined by arbitration as provided for herein. Arcadia shall provide the University with certificates of insurance evidencing such coverage seven days before commencement of sales of any Product and Arcadia covenants not to sell any Product before such certificate is provided and approved by the University.

 

Article 15 - DISCLAIMER OF WARRANTY

 

15.01      The University makes no representations or warranties, either express or implied, with respect to the Technology or Products and specifically disclaims any implied warranty of merchantability and fitness for a particular purpose. The University shall in no event be liable for any loss of profits, be they direct, consequential, incidental, or special or other similar or like damages arising from any defect, error or failure to perform with respect to the Technology or Products, even if the University has been advised of the possibility of such damages.

 

15.02      IN NO EVENT SHALL ANY PARTY BE LIABLE FOR INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, EXEMPLARY OR PUNITIVE DAMAGES FOR ANY BREACH OF ITS OBLIGATIONS OR WARRANTIES, EXPRESS OR IMPLIED RESULTING FROM THIS AGREEMENT (INCLUDING LOSS OF PROFITS OR BUSINESS, LOST OPPORTUNITY OR LOSS OF BUSINESS REPUTATION), EVEN IF THE PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

 

15.03      Nothing in this Agreement shall be construed as:

 

(a)           a warranty or representation by the University as to the validity or scope of the License granted pursuant to this Agreement,

(b)           a warranty or representation by the University that anything made, used, sold or otherwise disposed of under the License granted in this Agreement is or will be free from infringement of patents, copyrights, trade-marks, registered design or other intellectual property rights,

(c)           an obligation by the University to bring or prosecute actions or suits against third parties for infringement of patents, copyrights, trade-marks, registered design or other intellectual property or contractual rights, or

(d)           the conferring by the University of the right to use in advertising or publicity the UNIVERSITY OF ALBERTA Trade-marks.

 

15.04      Notwithstanding the foregoing, the University stipulates that the License granted herein is granted by the University in good faith and in reliance on the

 

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University’s belief that the University is the rightful assignee and owner of the University Patents.

 

Article 16 — TERMINATION

 

16.01      Subject to Article 16.02, the University may, at its option and in its sole discretion, terminate this Agreement on the happening of any one or more of the following events forthwith delivering notice in writing to this effect to Arcadia:

 

(a)           if any proceeding under the Bankruptcy Act of Canada, or any other statute of similar purport is commenced by or against Arcadia which results in Arcadia being adjudged bankrupt, (such proceedings shall not include a general proposal to creditors provided such proposal is not made under the provisions of the Bankruptcy Act of Canada or any other statute of similar purport), or

(b)           if any execution, sequestration, or any another process of any court becomes enforceable against Arcadia or if any such process is levied on the rights under this Agreement or upon any of the monies due to the University and is not released or satisfied by Arcadia within thirty (30) days thereafter,

(c)           or if any resolution is passed or order made or other steps taken for the winding up, liquidation or other termination of the existence of Arcadia, or

(d)           if Arcadia grants a security interest in the Technology, other than to the University by operation of this Agreement, or

(e)           if Arcadia ceases or threatens to cease to carry on its business.

 

16.02      Other than as set out in Article 16.01 herein, if either party shall be in default under or shall fail to comply with the terms of this Agreement and:

 

(a)           if such default is reasonably curable within ninety (90) days after receipt of notice of such default and such default or failure to comply is not cured within ninety (90) days after receipt of written notice thereof, or

(b)           if such default is not reasonably curable within ninety (90) days after receipt of written notice thereof, and such default or failure to comply is not cured within such further reasonable period of time as may be necessary for the curing of such default or failure to comply,

(c)           then the non-defaulting party shall have the right to terminate this Agreement by written notice to that effect.

 

16.03      If this Agreement is terminated by the University pursuant to Article 16.01 or 16.02 herein, Arcadia shall make royalty payments to the University in the manner specified in Article 5 herein, and the University may proceed to enforce payment of all debts owed to the University and to exercise any or all of the rights and remedies contained herein or otherwise available to the University by law or in equity. The University shall have the right to enforce one or more remedies

 

[...*...] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

 

13

 

successively or concurrently in accordance with applicable law and the University expressly retains all rights and remedies including all of the rights it may have under the Personal Property Security Act. Without restricting the generality of the foregoing, the University may immediately and without notice enter Arcadia’s premises and repossess any or all of the Technology, demand payment of any deficiency after the sale of the Technology and sue Arcadia for any deficiency, and appoint by instrument in writing a receiver of Arcadia, and remove or replace such receiver from time to time or institute proceedings in any court of competent jurisdiction for the appointment of a receiver, Any such receiver appointed by the University so far as responsibility for his acts will be deemed to be the agent of Arcadia. All charges or expenses incurred by the University in the enforcement of its rights or remedies against Arcadia including without limitation the University’s solicitors fees and disbursements on an indemnity basis and the costs of any receiver appointed pursuant to this article may, at the option of the University be deducted from any proceeds of disposition of the Technology before payment to Arcadia or any other entitled party to be added to and become part of the obligations owed by Arcadia to the University.

 

Article 17 — INDEMNITY

 

17.01      Arcadia hereby indemnifies, holds harmless and defends the University, its officers, employees and agents against any and all claims arising out of the exercise of any rights under this Agreement including, without limiting the generality of the foregoing, against any damages or losses, consequential or otherwise, arising from or out of the use of Technology or Products licensed under this Agreement by Arcadia or its sublicensees, or their customers or end-users howsoever the same may arise.

 

17.02      Arcadia covenants and agrees that it has the expertise necessary to handle the Materials and Technology with care and without danger to Arcadia, its employees, agents, or the public. Arcadia covenants that it will not accept delivery of the Materials or Technology until it has requested and received from the University all necessary information and advice to ensure that it is capable of handling the Materials and Technology in a safe and prudent manner in accordance with this Article 17.02.

 

17.03      Arcadia covenants and agrees that it will comply with all laws, regulations and ordinances, whether Federal, Provincial, Municipal or otherwise with respect to the Materials, the Technology and/or this Agreement.

 

17.04      Arcadia shall, upon receiving at least ten (10) business days’ notice from the University, permit any duly authorized representative of the University during normal business hours and at the University’s sole risk and expense to enter upon and into any premises occupied by Arcadia for the purpose of ascertaining whether or not the provisions of this Agreement have been, are being, or will be complied with by Arcadia.

 

[...*...] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

 

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Article 18 - INFRINGEMENTS

 

18.01      Upon learning of any possible infringement by any third party of any claim involving the University Patents, each party shall promptly notify the other, in writing, with details of the possible infringement.  At its sole discretion, the University will take any steps necessary, at its expense, to eliminate such infringement, including the commencement of legal action, if necessary.  The University may also, in its sole discretion, defend the University Patents against any claims of invalidity.

 

18.02      In the event that the University fails to take action to eliminate infringement by any third party or is unable to enforce its rights against such a third party, Arcadia may elect to pay the University for the cost of taking such action to enforce its rights or Arcadia may take direct action to enforce the University Patents.  If Arcadia pays the costs for enforcing the University Patents or elects to take direct action in enforcing the University Patents, Arcadia may recover fifty percent (50%) of such costs by crediting them against any sublicense fees and royalties owed to the University.  In the event Arcadia takes direct action to enforce the University Patents and is awarded money damages, costs, and/or attorneys’ fees, Arcadia shall reimburse the University for all costs previously credited against sublicense fees and royalties, such reimbursement not to exceed the total amount of the monetary award.  Arcadia shall be entitled to all money damages, costs, and/or attorneys’ fees awarded to it that exceed the total costs previously credited against sublicense fees and royalties.

 

18.03      The parties agree that if a party brings an infringement suit pursuant to this Section, the other parties shall join as plaintiffs, if requested, and shall cooperate and assist in the preparation and prosecution of the suit.

 

Article 19 — INDEPENDENCE

 

19.01      Nothing contained herein shall be deemed or construed to create between the parties hereto a partnership or joint venture. No party shall have the authority to act on behalf of any other party, or to commit any other party in any manner or cause whatsoever or to use any other party’s name in any way not specifically authorized by this Agreement. No party shall be liable for any act, omission, representation, obligation or debt of any other party, even if informed of such act, omission, representation, obligation or debt.

 

Article 20 - GOVERNING LAW AND ARBITRATION

 

20.01      This Agreement shall be governed by and construed in accordance with the laws of the Province of Alberta and the laws of Canada in force therein.

 

[...*...] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

 

15

 

20.02      Except as otherwise specified herein, should any dispute arise between the parties concerning this Agreement, the parties agree to first attempt to resolve the dispute in good faith.  If within sixty (60) days of one party providing written notice of such dispute to the other party such dispute is not resolved as aforesaid, then the dispute shall immediately thereafter be referred for resolution to binding arbitration by a single arbitrator under the rules of the Arbitration Act (Alberta) which shall be held at a neutral site in Calgary, Alberta and in accordance with the following rules:

 

(a)           The arbitration shall be by one arbitrator and the parties will meet in an attempt in good faith to appoint a sole arbitrator.  If they are unable within ten days of the first written demand for a meeting for that purpose to agree upon a sole arbitrator, then the arbitrator shall be appointed pursuant to the rules of Arbitration Act (Alberta);

 

(b)           The arbitrator or arbitrators selected to act hereunder will be qualified by education and training to pass upon the particular question in dispute.  The sole arbitrator chosen in accordance with the above procedure will, subject to the completion of any discovery permitted under the following paragraph, proceed immediately to hear and determine the matter or matters in dispute;

 

(c)           As soon as practicable after the arbitrator has been duly selected, the party demanding arbitration shall deliver to the other parties and the arbitrator, particulars of its dispute, together with any documents or evidence relied upon by the party demanding arbitration.  Within twenty (20) days of receipt of the particulars of the party demanding arbitration, the other party shall deliver the particulars of its response to the party demanding arbitration and the arbitrator, together with any documents or evidence relied upon by the relied upon by the other party;

 

(d)           The sole arbitrator may in his discretion conduct, or will at the written request of any party to the dispute, permit the parties to conduct, pre-arbitration discovery in a manner consistent with the rules for civil actions brought in a Court in Calgary, Alberta;

 

(e)           The arbitrator may in his or her discretion hold a hearing, and shall do so at the written request of any party to the dispute, with respect to preliminary or other issues.  Where no hearing is held, the arbitrator shall consider only the particulars and the documentary evidence submitted by the parties;

 

(f)           The arbitrator shall have all the powers conferred upon him by the rules of the Arbitration Act (Alberta) including, without limitation, the power to obtain the assistance, advice or opinion of any chartered accountant, lawyer, appraiser, valuator or other expert whom he thinks necessary and qualified;

 

[...*...] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

 

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(g)           The decision of the sole arbitrator will be in writing and signed by the sole arbitrator and will be final and binding upon all parties to any matter or matters so submitted to arbitration and the parties will perform the terms and conditions thereof.  No party will be deemed to be in default of any matter being arbitrated until ten (10) days after a copy of the decision of the arbitrator is delivered to each party;

 

(h)           The decision of the arbitrator will be made within forty-five (45) days after his appointment or within twenty (20) days after the completion of any discovery conducted with respect thereto, whichever is later.  In the event the sole arbitrator fails to make a decision within sixty (60) days after he was appointed or within forty (40) days after the completion of any discovery, whichever is later, then any of the parties concerned may elect to have a new sole arbitrator chosen as if none had been selected; and

 

(i)            Unless the arbitrator otherwise directs, each party to the dispute shall bear its own costs and expenses thereof and the unsuccessful party shall bear the costs of the arbitrator and of any experts appointed by the arbitrator.

 

20.03      Section 20.02 of this Article shall not prevent a party hereto from applying to a court of competent jurisdiction for interim protection such as, by way of example, an interim injunction.

 

Article 21 — INUREMENT

 

21.01      Subject to the limitations herein before expressed, this Agreement shall inure to the benefit of and be binding upon the parties, and their respective successors and permitted assigns.

 

Article 22 — HEADINGS

 

22.01      Marginal headings as used in this Agreement are for the convenience of reference only and do not form a part of this Agreement and are not be used in the interpretation hereof.

 

Article 23 - SURVIVAL OF COVENANTS

 

23.01      The terms and provisions, covenants and conditions contained in this Agreement which by the terms hereof require their performance by the parties hereto after the expiration or termination of this Agreement shall be and remain in force notwithstanding such expiration or other termination of this Agreement for any reason whatsoever.

 

Article 24 - NON-WAIVER

 

24.01      No condoning, excusing or overlooking by any party of any default, breach or nonobservance by any other party at any time or times in respect of any

 

[...*...] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

 

17

 

covenants, provisos, or conditions of this Agreement shall operate as a waiver of such party’s rights under this Agreement in respect of any continuing or subsequent default, breach or non-observance, so as to defeat in any way the rights of such party in respect of any such continuing or subsequent default or breach and no waiver shall be inferred from or implied by anything done or omitted by such party, save only an express waiver in writing.

 

24.02      No exercise of a specific right or remedy by any party precludes it from or prejudices it in exercising another right or pursuing another remedy or maintaining an action to which it may otherwise be entitled either at law or in equity.

 

Article 25 - SEVERABILITY

 

25.01      In the event that any part, section, clause, paragraph or subparagraph of this Agreement shall be held to be indefinite, invalid, illegal or otherwise violable or unenforceable, the entire agreement shall not fail on account thereof, and the balance of the Agreement shall continue in full force and effect.

 

Article 26 - NOTICES

 

26.01      Every notice, consent or other communication provided for in this Agreement or arising in connection therewith shall be in writing and shall be mailed, delivered or sent via facsimile to the parties to which it is to be given as follows:

 

if to the University, at

 

University of Alberta, c/o TEC Edmonton

Suite 4000, 10230 - Jasper Avenue,

Edmonton, AB

T5J 4P6

Facsimile:  (780) 492-7876

Attention:  Director, Industry Liaison Office

 

if to Arcadia, at

 

202 Cousteau Place, Suite 200

Davis, California, United States of America

95616

Facsimile:  (530) 756-7027

Attention:  Eric Rey

 

26.02      Each party may change its mailing, delivering or facsimile address by giving written notice to each other party to that effect.

 

26.03      Every such notice, consent or other communication delivered shall be deemed to have been given and received on the day such communication was delivered and

 

[...*...] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

 

18

 

every notice, consent or other communication transmitted by facsimile shall be deemed to have been given and received on the day such communication was transmitted by facsimile, if transmitted prior to 5:00pm (local time of the recipient) on such day, and otherwise, on the day following the date of transmission, provided however that if such day falls on a weekend or statutory holiday, then the notice, consent or other communication shall be deemed to have been given and received on the next business day following such day. Every such communication mailed by prepaid registered post in an envelope addressed to the party to whom the same is directed, will be deemed to have been given to and received by the addressee on the fifteenth (15th) business day following the mailing; except where there exists a labour strike or disturbance the result of which is the interference of normal mail deliveries, in which case every notice, consent, or other communication provided for in this Agreement or arising in connection therewith will be in writing and will be delivered to the parties at the above address.

 

Article 27 — GENERAL

 

27.01      This Agreement sets forth the entire understanding between the parties and no modifications hereof shall be binding unless executed in writing by the parties hereto.

 

27.02      Time shall be of the essence of this Agreement.

 

27.03      Whenever the singular or masculine or neuter is used throughout this Agreement the same shall be construed as meaning the plural or feminine or body corporate when the context of the parties hereto may require.

 

27.04      This Agreement may be executed in one or more counterparts with the same effect as if the parties all signed the same document.  All counterparts will be considered to be originals and together and will constitute one instrument. This Agreement may be executed by facsimile and a facsimile copy of this document shall constitute sufficient evidence of the execution of the Agreement.

 

[SIGNATURE PAGE FOLLOWS]

 

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19

 

IN WITNESS WHEREOF the parties hereto have executed and delivered this Agreement in duplicate at the date set forth above.

 

 

ON BEHALF OF THE GOVERNORS OF THE UNIVERSITY OF ALBERTA

 

 

	
Per:
    	
/s/ Pamela Freeman
    	
 
    	
Date:
    	
September 5,   2008
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
Pamela Freeman
    	
 
    	
Title:
    	
Acting   CEO, TEC Edmonton
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
ON BEHALF OF ARCADIA BIOSCIENCES, INC.
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Per:
    	
/s/ Eric J. Rey
    	
 
    	
Date:
    	
September 5,   2008
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
Eric J. Rey
    	
 
    	
Title:
    	
President
    

 

[...*...] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

 

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Schedule 1

 

1.     Plants Having Enhanced Nitrogen Assimilation/Metabolism

 

	
Inventors:
    	
Allen   G. Good, Edmonton, Alberta, Canada
    
	
 
    	
Virginia   L. Stroeher, Calgary, Alberta, Canada
    
	
 
    	
Douglas   G. Muench, Pullman, Washington, US
    
	
 
    	
 
    
	
APPLICATIONS:
    	
 
    	
Filed
    
	
Priority:
    	
US
    	
08/599,968
    	
February 14,   1996 (1)
    
	
 
    	
CAN
    	
2,169,502
    	
February 14,   1996 (1), (2), (3)
    
	
 
    	
 
    	
 
    	
 
    
	
Subsequent:
    	
PCT
    	
CA97/00100
    	
February 14,   1997 (1)
    
	
 
    	
CON
    	
09/568,221
    	
May 9,   2000(3)
    
	
 
    	
CON
    	
10/321,718
    	
December 17,   2002(3)
    

 

	
ISSUED PATENTS:
    
	
US
    	
6,084,153
    	
July 4,   2000
    	
Priority:   February 14, 1996
    
	
GB
    	
2,325,232
    	
November 29,   2000
    	
Priority:   February 14, 1996
    
	
GB
    	
2,349,886
    	
December 27,   2000
    	
Priority:   February 14, 1996
    
	
AU
    	
727264
    	
December 7,   2000
    	
Priority:   February 14, 1996
    
	
AU
    	
760622
    	
September 4,   2003
    	
Priority:   February 14, 1996
    
	
 
    	
 
    	
 
    	
 
    
	
1.
    	
Prepared   and submitted by Bennett, Jones, Verchere (Edmonton, Canada).
    
	
2.
    	
Canadian   patent counsel is now Gowlings, Lafleur, Henderson (Ottawa, Canada)
    
	
3.
    	
Handled   by Morrison & Foerster (San Francisco, CA USA).
    

 

2.     Tissue-Specific Expression of Target Genes

 

	
Inventor:
    	
Allen   G. Good, Edmonton, Alberta, Canada
    
	
 
    	
 
    
	
APPLICATIONS:
    	
 
    	
Filed
    
	
US 09/493,803
    	
 
    	
January 28,   2000 (1)
    
	
(CIP of US 08/599,968 — Priority:  February 14, 1996)
    	
 
    
				

 

	
PCT
    	
CA01/00066
    	
 
    	
January 29,   2001 (2)
    
	
BR
    	
P101079000
    	
 
    	
January 29,   2001(3)
    
	
CA
    	
2,398,510
    	
 
    	
January 29,   2001(2),(3)
    
	
EP
    	
1250445
    	
 
    	
January 29,   2001(3)
    
	
AU
    	
782263
    	
 
    	
January 29,   2001(3)
    
	
 
    	
 
    	
 
    	
 
    
	
1.
    	
Prepared   and submitted by Lahive and Cockfield (Boston, MA USA).  Application now abandoned.
    
	
2.
    	
Prepared   and submitted by Gowlings, Lafleur, Henderson (Ottawa, Canada)
    
	
3.
    	
Priority   date: January 28, 2000.  Submitted   by Morrison & Foerster (San Francisco, CA USA).
    

 

[...*...] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

 

i

 

3.     Plants with Enhanced Levels of Nitrogen Utilization Proteins in their Root Epidermis and Uses Thereof

 

	
Inventor:
    	
Allen   G. Good, Edmonton, Alberta, Canada
    
	
 
    	
 
    
	
APPLICATIONS:
    	
 
    	
Filed
    
	
US   10/756,213
    	
 
    	
 
    	
January 12,   2004(1)
    
	
(CIP   of US 10/321,718 (pending), which is a CON of US 09/568,221 (now abandoned),   which is a CIP of US 09/493,803 (now abandoned), which is a CIP of US   08/599,968 — Priority:    February 14, 1996)
    
	
 
    
	
1.
    	
Prepared   and submitted by Morrison & Foerster (San Francisco, CA USA)
    
					

 

[...*...] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

 

iiExhibit 10.2

 

[...*...] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

 

INTELLECTUAL PROPERTY LICENSE AGREEMENT

 

This Intellectual Property License Agreement (“Agreement”), effective nunc pro tunc as of January 1, 2003 (the “Effective Date”), is entered into by and between Arcadia Biosciences, Inc. an Arizona corporation with a principal office at 202 Cousteau Place, Suite 200, Davis, CA 95616  (“ARCADIA”) and Blue Horse Labs, Inc., an Arizona corporation with a principal office at [...*...] (“BLUE HORSE”).  The parties to this Agreement are collectively referred to as the “Parties” and individually as a “Party”.

 

WHEREAS, BLUE HORSE and ARCADIA entered into that certain Sponsored Research and Development Agreement (the “R&D Agreement”), having an effective date of January 1, 2003, which agreement is incorporated herein by reference;

 

WHEREAS, pursuant to the R&D Agreement, BLUE HORSE funded the development of certain intellectual property by ARCADIA and became the sole owner of such intellectual property (the “Blue Horse IP”) that it funded; and

 

WHEREAS, BLUE HORSE desires to grant and ARCADIA desires to obtain a license to the Blue Horse IP in accordance with the terms and conditions of this Agreement;

 

NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

 

AGREEMENT

 

1.                                      DEFINITIONS.

 

Terms in this Agreement defined in the singular have the same meanings when used in the plural and vice versa.  For purposes of this Agreement, the following words and phrases shall have the following meanings:

 

1.1.                            “Affiliate” means with respect to any person or entity, any other person or entity that directly or indirectly controls, is controlled by or is under common control with such person or entity.  A person or entity shall be deemed to be “controlled” by any other person or entity if such other person or entity (i) possesses, directly or indirectly, power to direct or cause the direction of the management and policies of such person or entity whether by contract or otherwise, (ii) has direct or indirect ownership of at least fifty percent (50%) (in the aggregate) of the voting power of all outstanding shares entitled to vote at a general election of directors of the person or entity, or (iii) has direct or indirect ownership of at least fifty percent (50%) of the equity interests in a partnership or a limited liability company.  Notwithstanding the foregoing, for purposes of this Agreement, “Affiliates” shall not include BLUE HORSE.

 

1.2.                            “Field of Use” as used herein shall mean development and commercialization of methods, products, and services related to plants, which shall include, but not be limited to, production of plants, seed, crops, and products therefrom.

 

1

 

1.3.                            “Blue Horse IP” as used herein shall mean the intellectual property listed in Appendix A, which is the subject of this Agreement, the development of which was funded by BLUE HORSE pursuant to the R&D Agreement.

 

1.4.                            “Product” means any product, good, or service, the use, manufacture, sale, offer for sale, import, or export of which Product would, absent the licenses granted hereunder, infringe an issued and unexpired claim of the Blue Horse IP that has not been held unenforceable or invalid by a court or other governmental agency of competent jurisdiction in an unappealed or unappealable decision and that has not been disclaimed or admitted to be invalid or unenforceable through reissue or otherwise.

 

1.5.                            “Net Revenues” means the gross amount invoiced by ARCADIA or its Affiliates for the sale or other disposition of Products during the applicable period in arm’s length transactions after deduction of the following items, provided and to the extent such items are actually incurred and do not exceed reasonable and customary amounts in each market in which such sales or other dispositions occurred:  (i) commissions paid to non-Affiliated third parties; (ii) royalties paid for licenses necessary to develop and/or commercialize Products; (iii) trade and quantity discounts and rebates; (iv) credits or allowances made for rejection or return of previously sold Products; (v) any tax or government charge levied on the sale, such as value added tax (but not including income tax); (vi) any charges for freight or insurance, and (vii) bad debts and/or uncollectible amounts, provided that all such amounts have been formally designated as such in accordance with generally accepted accounting principles (GAAP), and further provided that such allowance shall not be applicable in the event and to the extent ARCADIA ultimately collects any such designated amounts.  In the event that the Products are sold or otherwise transferred to an Affiliate or a third party for a price lower than if they had been sold to a third party in an arm’s length transaction (“fair market value”), then Net Revenues shall be the fair market value of the Products to an end-user of the Products to whom ARCADIA customarily in the ordinary course of its business sells Products.  Net Revenues also shall include all amounts received by ARCADIA in connection with any license of all or part of the Blue Horse IP, including, without limitation, license fees, license maintenance fees, and milestone payments, but not including equity consideration or reimbursements for actual research and development costs incurred by ARCADIA.

 

1.6.                            “Term” has the meaning provided in Section 3.1.

 

2.                                      GRANT OF LICENSE; ELECTION TO PURCHASE.

 

2.1.                            Exclusive License Grant.  Subject to the terms and conditions contained in this Agreement, BLUE HORSE grants to ARCADIA and its Affiliates, and ARCADIA accepts for itself and on behalf of its Affiliates, an exclusive, worldwide, sublicensable license under the Blue Horse IP to (i) research, develop, make, have made, use, have used, import, export, distribute, sell, have sold, offer for sale, and otherwise exploit Products in the Field of Use for commercial and/or research purposes, and (ii) otherwise utilize the Blue Horse IP for any reasonable commercial and/or research purposes (the “Exclusive ARCADIA License”).

 

2.2.                            Sublicenses.  ARCADIA and its Affiliates are entitled to grant sublicenses under the Exclusive ARCADIA License.

 

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2.3.                            Election to Purchase Intellectual Property Rights.

 

2.3.1.                  At any time during the Term of this Agreement, ARCADIA shall have the right to purchase all or part of BLUE HORSE’s rights under this Agreement including (i) all rights of BLUE HORSE in the Blue Horse IP, and (ii) BLUE HORSE’s right to receive a share of Net Revenues.  ARCADIA may exercise this right by providing BLUE HORSE with a Notice of Election.  The purchase price of BLUE HORSE’s rights shall be the fair market value of that portion of the Blue Horse IP proposed to be purchased as determined by averaging the appraised value of that portion of the Blue Horse IP as determined in good faith by an appraiser retained by ARCADIA and an appraiser retained by BLUE HORSE.  Each Party shall bear the cost associated with its respective appraiser.  The payment of fair market value and documentation of any required assignment of rights (and recordation thereof, if applicable, with the United States Patent and Trademark Office) shall occur within ninety (90) days of ARCADIA’s Notice of Election unless otherwise mutually agreed in writing by the Parties.  In determining the purchase price of BLUE HORSE’s rights under this Agreement, the value of BLUE HORSE’s right to receive a share of Net Revenues shall be equal to the fair market value of BLUE HORSE’s right to receive the stated share of Net Revenues as of the date of ARCADIA’s Notice of Election.

 

2.3.2.                  In the event that BLUE HORSE ceases to do business or otherwise terminates its business operations, BLUE HORSE shall promptly provide ARCADIA with written notice of the same, and ARCADIA shall have thirty (30) days from receipt of such written notice in which to exercise a first right of refusal to purchase all or part of BLUE HORSE’s rights under this Agreement, including (i) all rights of BLUE HORSE in the Blue Horse IP, and (ii) BLUE HORSE’s right to receive a share of Net Revenues.  ARCADIA may exercise this right by notifying BLUE HORSE in writing of its election (“Notice of Election”).  Where ARCADIA’s Notice of Election has not been received by BLUE HORSE within thirty (30) days of ARCADIA’s receipt of BLUE HORSE’s written notification, ARCADIA shall be deemed to have waived its purchase rights.  The purchase price of BLUE HORSE’s rights shall be the fair market value of that portion of the Blue Horse IP proposed to be purchased as determined by averaging the appraised value of that portion of the Blue Horse IP as determined in good faith by an appraiser retained by ARCADIA and an appraiser retained by BLUE HORSE.  Each Party shall bear the cost associated with its respective appraiser.  The payment of fair market value and documentation of any required assignment of rights (and recordation thereof, if applicable, with the United States Patent and Trademark Office) shall occur within ninety (90) days of ARCADIA’s Notice of Election unless otherwise mutually agreed in writing by the Parties.  In determining the purchase price of BLUE HORSE’s rights under this Agreement, the value of BLUE HORSE’s right to receive a share of Net Revenues shall be the fair market value of BLUE HORSE’s right to receive the stated share of Net Revenues as of the date of ARCADIA’s Notice of Election.  Where ARCADIA elects not to purchase BLUE HORSE’s rights herein, and any rights of BLUE HORSE in this Agreement and/or the Blue Horse IP are transferred to a third party as a result of the termination or cessation of business of BLUE HORSE, this Agreement shall not terminate and the successor in interest to BLUE HORSE shall automatically succeed to all BLUE HORSE’s rights and obligations hereunder without change in the terms or other provisions of this Agreement.

 

[...*...] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

 

3

 

TERM; TERMINATION.

 

3.1.                            Term.  The Agreement will begin on the Effective Date and will expire concurrently with the last to expire patent contained within the Blue Horse IP (the “Term”).

 

3.2.                            Early Termination.  Either Party may, upon notice to the other, terminate this Agreement if the other Party materially breaches this Agreement and fails to cure such breach within ninety (90) days after receiving written notice thereof from the non-breaching Party. For the avoidance of doubt, termination of this Agreement shall be effective only if (i) the non-breaching Party provides notice of breach to the other Party, (ii) such breach is not cured within ninety (90) days, and (iii) the non-breaching Party then provides the other Party notice of termination upon expiration of such cure period.  The effective date of termination shall be the date of receipt of such notice of termination by the breaching Party.  If the default is cured during such period, the notice will have no force or effect.  The Parties acknowledge that termination of this Agreement for breach shall terminate any licenses granted hereunder to ARCADIA and its Affiliates in the Blue Horse IP, as well as any and all sublicenses thereto.

 

4.                                      PAYMENTS; REPORTING; RECORDS.

 

4.1.                            Revenue Sharing. In consideration of the Exclusive ARCADIA License pursuant to which the Blue Horse IP is herein licensed by BLUE HORSE to ARCADIA, ARCADIA agrees to pay BLUE HORSE a royalty of [...*...] percent [...*...] of the total Net Revenues received by ARCADIA and/or its Affiliates during the Term.

 

4.2.                            Form of Payment.  For any payment due to BLUE HORSE in accordance with Section 4.1, BLUE HORSE may, in its sole discretion and upon ARCADIA’s written request, elect to accept ARCADIA stock in lieu of a cash payment.  If BLUE HORSE so elects, then, subject to compliance with all applicable laws (including all applicable federal and state securities laws), ARCADIA shall issue to BLUE HORSE a number of shares of Arcadia Capital Stock having a then-current fair market value equivalent to the cash amount due pursuant to Section 4.1.  The Capital Stock so issued shall be Preferred Stock of ARCADIA having terms, rights, and preferences at least equal to any outstanding series or class of ARCADIA Preferred Stock or, if no ARCADIA Preferred Stock is outstanding, shall be Common Stock of ARCADIA.  In any event, the ARCADIA Capital Stock to be issued shall be valued by averaging the appraised value of the shares to be issued as determined in good faith by an appraiser retained by ARCADIA and an appraiser retained by BLUE HORSE, each to bear the cost of its appraiser.

 

4.3.                            Reporting.  Within thirty (60) days of the end of the applicable annual period (based on a calendar year) following the first commercial sale of a Product and within thirty (60) days after the end of each annual period thereafter, ARCADIA shall make a written report to BLUE HORSE setting forth that information, including that of Affiliates and sublicensees, necessary to permit BLUE HORSE to calculate and confirm the revenue share payment due BLUE HORSE, even if no payment is due.  At the time each report is made, ARCADIA shall pay to BLUE HORSE or any Affiliate of BLUE HORSE as BLUE HORSE may direct, the amounts shown by such report to be payable hereunder.  Payments due on sales in foreign

 

[...*...] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

 

4

 

currency shall be calculated in United States dollars on the basis of the exchange rate in effect for purchase of dollars at Chase Manhattan Bank, New York, New York, on the last business day of the last-preceding December.

 

4.4.                            Books and Records for Payments.  ARCADIA shall keep, and shall cause its Affiliates to keep, books and records in such reasonable detail as will permit the reports provided for in this Section to be made and the revenue share payable hereunder to be determined.  ARCADIA further agrees to permit its and its Affiliates’ books and records to be inspected and audited from time to time (but not more often than once annually) during reasonable business hours by an independent auditor, designated by BLUE HORSE and approved by ARCADIA, which approval will not be unreasonably withheld, to the extent necessary to verify the reports provided for in this Section; provided, however, that such auditor shall indicate to BLUE HORSE only whether the reports and revenue share paid are correct, and if not, the reason why not.  In the event that such an audit results in additional revenue share being owed to BLUE HORSE, such amount shall be paid within twenty (20) days from written notice of deficiency along with interest calculated as from the date the correct payment was due to the date of actual payment at an annual rate of five (5) percentage points above the prime rate quoted by Chase Manhattan Bank, New York, New York, on the day payment was due, or at the greatest rate permitted by law, if lower, until paid.  If the original revenue share payment was more than ten percent (10%) less than it should have been, the cost of the audit shall be reimbursed by ARCADIA.

 

4.5.                            Late Payment.  If any revenue share payments owed under this Agreement are not paid when due, the unpaid amount shall bear interest, compounded annually, at an annual rate of two (2) percentage points above the prime rate quoted by Chase Manhattan Bank of New York on the day payment was due or at the greatest rate permitted by law, if lower, until paid or offset.  Any amount that remains unpaid on account of a good faith dispute for which the provisions of Section 7.2 have been invoked shall, if ultimately deemed to be owed to BLUE HORSE, bear interest, compounded annually, at an annual rate equal to the prime rate quoted by Chase Manhattan Bank of New York on the day the amount was due.

 

5.                                      CONFIDENTIALITY.

 

5.1.                            As used herein, “Confidential Information” means any information of a Party that is designated confidential in writing at the time of disclosure, or if disclosed orally, information which the receiving Party reasonably should have known was confidential or which is confirmed in writing as confidential within thirty (30) days.

 

5.2.                            Obligations.  Should either Party disclose to the other any of such Party’s Confidential Information (the “Disclosing Party”), the Party receiving the Confidential Information (the “Receiving Party”) shall maintain the Confidential Information in confidence, shall use at least the same degree of care to maintain the secrecy of the Confidential Information as it uses in maintaining the secrecy of its own proprietary, confidential and trade secret information, shall always use at least a reasonable degree of care in maintaining the secrecy of the Confidential Information, shall use the Confidential Information only for the purpose of performing its obligations under this Agreement and exercising its rights under this Agreement unless otherwise agreed in writing by the Disclosing Party, and shall deliver to the Disclosing

 

[...*...] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

 

5

 

Party, in accordance with any request from the Disclosing Party, all copies, notes, packages, diagrams, computer memory media and all other materials containing any portion of the Disclosing Party’s Confidential Information which reasonably is not required by the Receiving Party to perform its obligations under and/or to exercise its rights under this Agreement.  The Receiving Party shall not disclose any of the Disclosing Party’s Confidential Information to any person except to those Receiving Party Affiliates, employees and consultants having a need to know such Confidential Information in order to accomplish the purposes and intent of this Agreement.  The Receiving Party shall ensure that each such Affiliate, employee and consultant has been instructed to keep confidential the Confidential Information of the Disclosing Party and shall ensure that each such Affiliate, employee or consultant has signed a confidentiality agreement covering the Confidential Information of the Disclosing Party.

 

5.3.                            Exceptions.  Notwithstanding Section 5.1:

 

5.3.1.                  A Receiving Party shall have no obligation with respect to any portion of Confidential Information of the Disclosing Party that (i) the Receiving Party is able to demonstrate, in writing, was rightfully known to the Receiving Party on a non-confidential basis prior to receipt of such information from the Disclosing Party, (ii) is lawfully obtained by the Receiving Party from a third party under no obligation of confidentiality, (iii) is independently developed by the Receiving Party without use of the Confidential Information of the Disclosing Party, or (iv) is or becomes publicly available other than as a result of any act or failure to act of the Receiving Party.

 

5.3.2.                  A Receiving Party may disclose the Confidential Information of the Disclosing Party pursuant to a subpoena or other legal process, provided that the Disclosing Party is provided prior notice reasonably sufficient to permit the Disclosing Party to obtain a protective order, and provided further that such disclosure shall not relieve the Receiving Party from future adherence to Section 5.1 with respect to such Confidential Information.

 

5.3.3.                  A Receiving Party may also disclose the Confidential Information of the Disclosing Party for purposes of soliciting or securing financing and/or in connection with the Receiving Party’s licensing activities, provided that (i) such disclosure of Confidential Information is reasonably necessary to advance such financing and/or licensing activities, and (ii) the third party(ies) to whom such Confidential Information is disclosed agree(s), in writing, to maintain the confidentiality of such Confidential Information.

 

5.4.                            Reservation. Unless expressly provided for in this Agreement, a Disclosing Party shall retain all rights, title and interest in its own Confidential Information.

 

5.5.                            Agreement as Confidential Information.  Neither Party shall issue a press release or other publication announcing the existence of this Agreement or disclose the terms and conditions of the Agreement to any third party without the prior written consent of the other Party; except, however, that each Party may disclose the terms and conditions of this Agreement: (i) as required by any court or other governmental body; (ii) as otherwise required by law; (iii) to its legal counsel; (iv) in confidence, to accountants, banks, and financing sources and their advisors solely for the purposes of a Party’s securing financing; (v) in connection with the enforcement of this Agreement or rights under this Agreement; or (vi) in confidence, in

 

[...*...] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

 

6

 

connection with an actual or proposed merger, acquisition, license negotiation, or similar transaction solely for use in the due diligence investigation in connection with such transaction.

 

5.6.                            Actions on Termination.  Upon any termination of this Agreement, BLUE HORSE agrees to return or permanently destroy, at ARCADIA’s sole discretion and upon ARCADIA’s written request, all Confidential Information owned by ARCADIA in BLUE HORSE’s possession.  Upon any termination of this Agreement, ARCADIA agrees to return or permanently destroy, at BLUE HORSE’s sole discretion and upon BLUE HORSE’s written request, all Confidential Information owned by BLUE HORSE in ARCADIA’s possession.

 

6.                                      REPRESENTATIONS AND WARRANTIES; LIMITATION OF LIABILITY.

 

6.1.                            Right to Enter Agreement.  ARCADIA and BLUE HORSE each represent and warrant that they have the right to make conveyances and grants in accordance with this Agreement.

 

6.2.                            Limitation of Liability.  EXCEPT FOR BREACHES OF THE CONFIDENTIALITY OBLIGATIONS HEREIN, NEITHER PARTY WILL BE LIABLE TO THE OTHER WITH RESPECT TO THE SUBJECT MATTER OF THIS AGREEMENT FOR ANY INCIDENTAL, INDIRECT, CONSEQUENTIAL, SPECIAL, OR PUNITIVE DAMAGES, OR LOST PROFITS OR THE COST OF PROCUREMENT OF SUBSTITUTE GOODS, TECHNOLOGY OR SERVICES REGARDLESS OF WHETHER ANY SUCH CLAIM FOR DAMAGES, LOST PROFITS OR OTHER COSTS IS BASED ON TORT, WARRANTY, CONTRACT OR ANY OTHER LEGAL THEORY, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

 

6.3.                            Risk of Failure; No Representations.  ARCADIA and BLUE HORSE each recognize that risk is inherent in the collaborative efforts such as those being undertaken in this Agreement and each therefore voluntarily assumes this risk. Accordingly, subject to the rights to terminate provided in Section 2, any other failure of any Intellectual Property provided for use in connection with or developed under this Agreement to perform as desired despite the reasonable efforts of the responsible Party or Parties will not be deemed to be a breach of this Agreement.  Other than as expressly set forth in this Agreement, NEITHER PARTY MAKES ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, WITH RESPECT TO INTELLECTUAL PROPERTY OWNED OR LICENSED BY THAT PARTY OR ANY KNOW-HOW INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF NONINFRINGEMENT, PATENTABILITY, MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

 

7.                                      APPLICABLE LAW; DISPUTE RESOLUTION.

 

7.1.                            Governing Law; Jurisdiction.  The validity, interpretation and performance of this Agreement and any dispute connected with this agreement shall be governed by and determined in accordance with the statutory, regulatory, and decisional law of the state of Arizona and any legal actions or proceedings brought by either Party shall be subject to the exclusive jurisdiction of the state and federal courts in Maricopa County, Arizona, and any mediation or arbitration proceeding initiated by either Party pursuant to Section 7.2 shall occur in Maricopa County,

 

[...*...] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

 

7

 

Arizona (unless otherwise agreed by both Parties), and each Party hereby consents to the jurisdiction of the courts as provided above.

 

7.2.                            Dispute Resolution. If a dispute arises out of or relates to this Agreement, or the breach thereof, and if the dispute cannot be settled through negotiation, the Parties agree first to try in good faith to settle the dispute by mediation before resorting to arbitration, litigation, or some other dispute resolution procedure.  Unless the Parties agree otherwise, any such mediation shall be held in Phoenix, Arizona.

 

8.                                      MISCELLANEOUS PROVISIONS.

 

8.1.                            Notices.  All notices and other communications required or permitted under this Agreement shall be deemed to be properly given when in writing and sent by registered or certified mail, postage prepaid or by reputable courier service providing evidence of delivery or by facsimile with receipt confirmation, to the other Party at the address set forth below, or at such other address as either Party may in writing designate from time to time for these purposes.

 

If to BLUE HORSE:                                 Blue Horse Labs, Inc.

[...*...]

[...*...]

[...*...]

Attention: President

Fax No.: [...*...]

 

If to ARCADIA:                                                      Arcadia Biosciences, Inc.

202 Cousteau Place #200

Davis, CA 95616

Attention:  President

Fax No.:  530-756-7027

 

8.2.                            Assignability.  The rights and obligations acquired herein by the Parties are not assignable, transferable or otherwise conveyable, in whole or part (by operation of law or otherwise) to any third party without the consent of other Party, which shall not be unreasonably withheld; provided, however, that either Party may, without such consent, assign its rights and obligations hereunder to any purchaser of all or substantially all of the assets of the Party related to this Agreement or to any successor corporation resulting from any merger or consolidation of a Party.  Moreover, either Party may, without the consent of the other Party, assign to any purchaser of all or substantially all of the assets of the Party related to any program identified in the Sponsored Research Agreement (i.e., [...*...]), its rights and obligations hereunder applicable to such program.  Any attempted assignment conflicting with this Section shall be null and void and without effect.

 

8.3.                            Severability.  In case any one or more of the provisions contained in this Agreement shall for any reason be held invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions hereof, but this Agreement shall be construed as if such invalid or illegal or unenforceable provisions had never been contained herein.

 

[...*...] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

 

8

 

8.4.         Counterparts.  This Agreement may be executed in two (2) counterparts, each of which shall be an original with the same effect as if the signatures thereto and hereto were upon the same instrument.

 

8.5.         Headings.  Headings as to the contents of particular Sections are for convenience only and are in no way to be construed as part of this Agreement or as a limitation of the scope of the particular Sections to which they refer.

 

8.6.         Force Majeure.  Except for payments of money, neither of the Parties shall be liable for any default or delay in performance of any obligation under this Agreement caused by any of the following:  act of nature, war, riot, fire, explosion, accident, flood, sabotage, compliance with governmental requests, laws, regulations, orders or actions, national defense requirements or any other event beyond the reasonable control of such Party; or labor trouble, strike, lockout or injunction (provided that neither of the Parties shall be required to settle a labor dispute against its own best judgment). The Party invoking this subparagraph shall give the other Party written notice pursuant to Section 8.1 and full particulars of such force majeure event as soon as possible after the occurrence of the cause upon which said Party is relying. Both ARCADIA and BLUE HORSE shall use reasonable efforts to mitigate the effects of any force majeure on their respective part.

 

8.7.         Negation of Agency.  It is agreed and understood by the Parties hereto that each of BLUE HORSE and ARCADIA, in performance of its obligations and responsibilities under this Agreement, is an independent contractor and that nothing herein contained shall be deemed to create an agency, partnership, joint venture or similar relationship between the Parties.  The manner by which each of BLUE HORSE and ARCADIA carries out its performance under this Agreement is within each of BLUE HORSE’s and ARCADIA’s sole discretion and control.

 

8.8.         Other Requests.  The Parties hereto agree that upon reasonable request of the other Party, each such Party shall execute and deliver such additional documents and Agreements, and take such further actions, as may be necessary in order to fulfill and give effect to the terms of this Agreement.

 

8.9.         Integration; Amendment and Waiver.  This Agreement, including any exhibits or other attachments hereto, constitutes the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior or contemporaneous understandings or agreements, whether written or oral, between the Parties with respect to the subject matter hereof.  This Agreement may be amended, modified, superseded or canceled, and any of the terms may be waived, only by a written instrument executed by both Parties or, in the case of waiver, by the Party or Parties waiving compliance.  The delay or failure of any Party at any time or times to require performance of any provisions shall in no manner affect the rights at a later time to enforce the same.  No waiver by any Party of any condition or of the breach of any term contained in this Agreement, whether by conduct, or otherwise, in any one or more instances, shall be deemed to be, or considered as, a further or continuing waiver of any such condition or of the breach of such term or any other term of this Agreement.

 

[...*...] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

 

9

 

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed and delivered as of the Effective Date.

 

 

	
BLUE   HORSE LABS, INC. 
    	
ARCADIA   BIOSCIENCES, INC. 
    
	
 
    	
 
    
	
By:
    	
/s/   Jonathan Thatcher
    	
 
    	
By:
    	
/s/   Eric J. Rey
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
Jonathan   Thatcher
    	
 
    	
Name:
    	
Eric   J. Rey
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Its:
    	
Treasurer
    	
 
    	
Its:
    	
President   & CEO
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Date:
    	
5/19/08
    	
 
    	
Date:
    	
5/15/08
    

 

Signature Page to Intellectual Property License Agreement

 

[...*...] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

 

10

 

APPENDIX A

BLUE HORSE IP

 

	
Country
   Code
    	
 
    	
Application
    Number
    	
 
    	
Title
    	
 
    	
Inventors
    	
 
    	
Filing
    Date
    	
 
    	
Patent
   Number
    
	
US
    	
 
    	
11/438,951
    	
 
    	
Safflower with elevated gamma-linolenic   acid
    	
 
    	
Emlay, Donald Flider, Frank J. Knauf, Vic   C. Rey, Eric Shewmaker, Christine
    	
 
    	
5/22/2006
    	
 
    	
 
    
	
PCT
    	
 
    	
PCT/US2006/20047
    	
 
    	
Safflower with elevated gamma-linolenic   acid
    	
 
    	
Emlay, Donald Flider, Frank J. Knauf, Vic   C. Rey. Eric Shewmaker, Christine
    	
 
    	
5/22/2006
    	
 
    	
 
    
	
AR
    	
 
    	
P060102090
    	
 
    	
Safflower with elevated gamma-linolenic   acid
    	
 
    	
Emlay, Donald Flider, Frank J. Knauf, Vic   C. Rey. Eric Shewmaker, Christine
    	
 
    	
5/22/2006
    	
 
    	
 
    
	
US
    	
 
    	
11/644,321
    	
 
    	
Nitrogen-efficient monocot plants
    	
 
    	
Good, Allen G. Depauw, Mary Shrawat, Askok   Theodoris, George Kridl, Jean C.
    	
 
    	
12/21/2006
    	
 
    	
 
    
	
PCT
    	
 
    	
PCT/US2006/49241
    	
 
    	
Nitrogen-efficient monocot plants
    	
 
    	
Good, Allen G. Depauw, Mary Shrawat, Askok   Theodoris, George Kridl, Jean C.
    	
 
    	
12/21/2006
    	
 
    	
 
    
	
AR
    	
 
    	
60105745
    	
 
    	
Nitrogen-efficient monocot plants
    	
 
    	
Good, Allen G. Depauw, Mary Shrawat, Askok   Theodoris, George Kridl, Jean C.
    	
 
    	
12/21/2006
    	
 
    	
 
    
	
TH
    	
 
    	
601006505
    	
 
    	
Nitrogen-efficient monocot plants
    	
 
    	
Good, Allen G. Depauw, Mary Shrawat, Askok   Theodoris, George Kridl, Jean C.
    	
 
    	
12/22/2006
    	
 
    	
 
    

 

[...*...] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

 

A-1

 

	
Country
   Code
    	
 
    	
Application
    Number
    	
 
    	
Title
    	
 
    	
Inventors
    	
 
    	
Filing
    Date
    	
 
    	
Patent
   Number
    
	
US
    	
 
    	
11/644,453
    	
 
    	
Promoter sequence obtained from rice and methods   of use
    	
 
    	
Good, Allen G. Depauw, Mary Shrawat, Askok
    	
 
    	
12/21/2006
    	
 
    	
 
    
	
PCT
    	
 
    	
PCT/US2006/48875
    	
 
    	
Promoter sequence obtained from rice and methods   of use
    	
 
    	
Good, Allen G. Depauw, Mary Shrawat, Askok
    	
 
    	
12/21/2006
    	
 
    	
 
    
	
AR
    	
 
    	
60105746
    	
 
    	
Promoter sequence obtained from rice and methods   of use
    	
 
    	
Good, Allen G. Depauw, Mary Shrawat, Askok
    	
 
    	
12/21/2006
    	
 
    	
 
    
	
TH
    	
 
    	
601006506
    	
 
    	
Promoter sequence obtained from rice and methods   of use
    	
 
    	
Good, Allen G. Depauw, Mary Shrawat, Askok
    	
 
    	
12/22/2006
    	
 
    	
 
    
	
US
    	
 
    	
60/797,001
    	
 
    	
Nitrogen-efficient field-grown plants
    	
 
    	
Lu, Zhongjin
    	
 
    	
5/2/2006
    	
 
    	
 
    

 

[...*...] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

 

A-2

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