Document:

sanw-ex1031_451.htm

Exhibit 10.31

[***] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both not material and would likely be competitively harmful if publicly disclosed.

 

TERMINATION AGREEMENT

This Termination Agreement (“Agreement”) is by and among Pioneer Hi-Bred International, Inc., an Iowa corporation (“Pioneer”); and S&W Seed Company, a Nevada corporation (“S&W”).

WHEREAS, Pioneer and S&W entered into a series of agreements whereby Pioneer sold certain assets related to alfalfa to S&W and entered into certain ongoing relationships relating to alfalfa research, production, and distribution;

WHEREAS, Pioneer and S&W want to terminate many of the agreements and obligations relating to alfalfa; and

WHEREAS, the parties contemporaneously are entering into a license agreement whereby S&W is providing Pioneer certain rights relating to certain alfalfa varieties;

NOW, THEREFORE, Pioneer and S&W agree as follows:

	
1.
	
Definitions.

	
 
	
1.1
	
Two entities are “Affiliates” if one of them, directly or indirectly, whether through one or more intermediaries, Controls the other, or both of them are, directly or indirectly, whether through one or more intermediaries, Controlled by the same entity.

	
 
	
1.2
	
“Control,” “Controls,” “Controlled by,” and “under common Control” shall mean (a) the ownership, directly or indirectly, whether through one or more intermediaries, of fifty percent (50%) or more of the shares of stock entitled to vote for the election of directors, in the case of a corporation, or fifty percent (50%) or more of the equity interest in the case of any other type of legal entity, (b) status as a general partner in any partnership, or (c) any other arrangement by which an entity has, directly or indirectly, the power to direct or cause the direction of the management and policies of another entity.

	
 
	
1.3
	
“Distribution Agreement” means the Alfalfa Distribution Agreement dated December 31, 2014, as amended.

	
 
	
1.4
	
“Effective Date” means May 20, 2019.

	
 
	
1.5
	
“FGI” means Forage Genetics International, LLC.

	
 
	
1.6
	
“Grower Contracts” means the grower contracts set forth on Schedule 1.5 that relate to the Pioneer Licensed Varieties.

	
 
	
1.7
	
“Grower Contract Rights” means S&W’s rights under the Grower Contracts.

	
 
	
1.8
	
“Grower Obligations” means S&W’s obligations and liabilities under the Grower Contracts, including all amounts payable to the growers [or other named parties] pursuant to the Grower Contracts from the Effective Date forward.

	
 
	
1.9
	
“Inventory” means the quantity of alfalfa varieties as set forth on Schedule 1.9.

	
 
	
1.10
	
“License Agreement” means the Alfalfa License Agreement executed contemporaneously with this Agreement, whereby S&W provides Pioneer with certain rights to the Pioneer Licensed Varieties.

1

 

	
 
	
1.11
	
“Pioneer Licensed Varieties” means the alfalfa varieties S&W licenses to Pioneer under the License Agreement.

	
 
	
1.12
	
“Production Agreement” means the Contract Alfalfa Production Services Agreement, dated December 31, 2014, as amended.

	
 
	
1.13
	
“Research Agreement” means the Research Agreement dated December 31, 2014, as amended.

	
 
	
1.14
	
“Sequestered Varieties” means inventory, currently held by Pioneer, of certain alfalfa varieties identified in Schedule 1.14.

	
2.
	
Termination and Windup of Agreements.

	
 
	
2.1
	
Grower Agreements and Inventory.

	
 
	
2.1.1
	
Assignment of Grower Agreements.

	
 
	
2.1.1.1
	
S&W hereby assigns the Grower Contract Rights to Pioneer and Pioneer hereby assumes the Grower Obligations, Within ten business days after the Effective Date, the parties will jointly notify all growers who are party to a Grower Contract of such assignment and assumption. The form of such notice shall be as set forth in Schedule 2.1.1.1.

	
 
	
2.1.1.2
	
Before S&W assigns the Grower Contract Rights, S&W shall fully satisfy all its obligations under the Grower Agreements that are required to be performed before the Effective Date. If any grower asserts a claim against Pioneer that S&W has not fully satisfied all such obligations as of the Effective Date or is otherwise in breach of a Grower Agreement as of the Effective Date, S&W shall defend Pioneer against, and indemnify Pioneer for all damages relating to, such grower assertion.

	
 
	
2.1.1.3
	
If any grower asserts a claim against S&W that Pioneer has not fully satisfied the Grower Obligations or is otherwise in breach of a Grower Agreement, Pioneer shall defend S&W against, and indemnify S&W for all damages relating to, such grower assertion.

	
 
	
2.1.1.4
	
Within ten business days after the Effective Date, S&W will provide Pioneer with all grower and company records related to the Grower Agreements.

	
 
	
2.1.1.5
	
Pioneer and S&W shall promptly execute, deliver and file, after good faith discussions, any and all agreements and other documents that shall be reasonably necessary for S&W to assign the Grower Contract Rights and Pioneer to assume the Grower Obligations.

	
 
	
2.1.2
	
Transfer of Inventory.

	
 
	
2.1.2.1
	
S&W is currently in possession of the Inventory. S&W will sell the Inventory to Pioneer, and Pioneer will purchase the Inventory from S&W as set forth in this Section 2.1.2.

2

	
 
	
2.1.2.2
	
S&W will deliver, at Pioneer’s cost, the Inventory to a location designated by Pioneer as set forth on Schedule 2.1.2.2. Pioneer will provide S&W with an expected seasonal delivery schedule on or before October 1, 2019. Pioneer may modify the delivery schedule (including with respect to the delivery date, the number of units to be delivered on a specified date, and the delivery locations from time to time by reasonable notice (at least two weeks) by Pioneer to S&W, provided that Pioneer must take delivery of all Inventory on or before March 31, 2021. The payments for the Inventory shall be due from Pioneer to S&W on the dates set forth in Schedule 2.1.2.2. For avoidance of doubt, change in the delivery schedule will not change the payment schedule in Schedule 2.1.2.2. The Inventory will be delivered from S&W’ s location in either Nampa or Five Points.

	
 
	
2.1.2.3
	
S&W represents that each lot of the Inventory has been tested for germination by an AOSA certified lab on the dates and with the results as set forth in Schedule 1.10. S&W shall retain records of such germination testing until at least March 31, 2022 and shall provide such records upon Pioneer’s request. If S&W does not provide the relevant records within ten business after Pioneer’s request or the relevant records for a given lot of Inventory do not match that set forth in Schedule 1.10, (a) if Pioneer has not already received such lot of Inventory, Pioneer shall not be obligated to purchase such lot of Inventory, or (b) if Pioneer has already received such lot of Inventory, S&W shall provide Pioneer with a refund for such lot of Inventory.

	
 
	
2.1.2.4
	
Pioneer must make any claim for shortage on a particular shipment of Inventory delivered within thirty days after Pioneer receives such shipment of Inventory from S&W. In the case of a shortage, the purchase price for the amount of Inventory not delivered will be either applied as a reduction in the final payment to S&W per Schedule 2.1.2.2 (if such payment has not yet been made at the time the shortage is reported) or after final reconciliation of payments for all shipments (if such payment has been made at the time the shortage is reported).

	
 
	
2.1.2.5
	
Ownership of the Inventory shall transfer from S&W to Pioneer upon delivery to Pioneer’s designated location. Subject to Section 2.1.2.3, Pioneer assumes all risk relating to germination of the Inventory; S&W assumes all other risk relating to the Inventory until ownership transfers to Pioneer. S&W shall not sell or otherwise transfer the Inventory to any third party. S&W shall hold any Inventory that involves traits licensed from FGI pursuant to Pioneer’s licensing from FGI.

	
 
	
2.1.2.6
	
The parties may negotiate a conditioning agreement relating to the Inventory in their discretion. Neither party has an obligation to enter into any such agreement.

	
 
	
2.1.3
	
Sequestered Varieties.

	
 
	
2.1.3.1
	
The Sequestered Varieties may not be sold until FGI provides consent to enable their sale. Pioneer will use reasonable efforts to obtain FGI’s consent to enable Pioneer and its affiliates to sell the Sequestered Varieties.

	
 
	
2.1.3.2
	
If FGI provides the necessary consent to enable sale of a given Sequestered Variety by Pioneer and its affiliates, Pioneer will have the option to purchase up to the amount of inventory of the Sequestered Variety listed on Schedule 1.14 at the purchase prices listed therein. Pioneer will make such payment within thirty days after conditioning.

3

	
 
	
2.1.3.3
	
If FGI does not provide the necessary consent to enable Pioneer and its affiliates to sell one or more Sequestered Varieties on or before October 31, 2019, Pioneer will have no obligation to purchase any such Sequestered Varieties. S&W may independently pursue consent from FGI to enable S&W to sell any Sequestered Varieties that Pioneer does not purchase (including consent for Pioneer to provide such Sequestered Varieties to S&W). If S&W obtains such consent from FGI, then Pioneer will deliver the Sequestered Varieties to S&W at S&W’s expense, and the parties will use reasonable efforts to negotiate a germplasm license to enable such sales by S&W. Unless otherwise agreed by the parties, Pioneer will hold any unpurchased Sequestered Varieties until December 31, 2019 and thereafter will destroy all inventory of such Sequestered Varieties at S&W’s expense (not to exceed $50,000).

	
 
	
2.2
	
Distribution Agreement.

	
 
	
2.2.1
	
Termination of Agreement. The parties hereby terminate the Distribution Agreement (including the Trademark License included as Appendix C to the Distribution Agreement) as of the Effective Date.

	
 
	
2.2.2
	
Payments satisfied. The parties agree that Pioneer’s payments under the Distribution Agreement are complete as of the Effective Date.

	
 
	
2.3
	
Production Agreement.

	
 
	
2.3.1
	
Termination of Agreement. The parties hereby terminate the Production Agreement as of the Effective Date.

	
 
	
2.3.2
	
Payments satisfied. The parties agree that Pioneer’s payments under the Production Agreement are complete as of the Effective Date.

	
 
	
2.4
	
Research Agreement.

	
 
	
2.4.1
	
Expiration of Agreement. The parties confirm the Research Agreement expired on February 28, 2018.

	
 
	
2.4.2
	
Completion of Certain Trials. S&W is currently managing, on behalf of Pioneer and under Pioneer’s license for all relevant traits, the research trials set forth on Schedule 2.4.2. S&W shall complete those trials pursuant to their approved protocols, and shall:

	
 
	
2.4.2.1
	
Permit Pioneer representatives access to the research trials, and such representatives may take samples from the plants during the course of the inspection;

	
 
	
2.4.2.2
	
Provide Pioneer with a copy of all data collected relating to the research trials; and

	
 
	
2.4.2.3
	
Provide Pioneer with forage-quality samples of alfalfa from the research trials as reasonably requested by Pioneer.

	
 
	
2.4.3
	
Payments Satisfied. The parties agree that Pioneer’s payments under the Research Agreement are complete as of the Effective Date.

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3.
	
License Agreement; Consideration.

	
 
	
3.1
	
The parties are contemporaneously executing the License Agreement.

	
 
	
3.2
	
In consideration for the mutual exchange herein and the rights granted in the License Agreement, Pioneer shall pay S&W forty-five million dollars ($45,000,000) within ten business days after the Effective Date.

	
 
	
3.3
	
Payment for the Inventory shall be made in the amounts and on the dates set forth in Schedule 2.1.2.2.

	
 
	
3.4
	
Funds payable to S&W under this Agreement shall be transferred pursuant to the wire instructions below:

Bank Name 

Bank Address 

 

 

Beneficiary NameS&W Seed Company

Account Number 

Routing Number 

Swift Code/ IBAN 

	
4.
	
Warranties and Disclaimer of Warranties.

	
 
	
4.1
	
Each party warrants that it is in good legal standing and has the authority to enter into this Agreement.

	
 
	
4.2
	
Other than as set forth in Subsection 2.1.2.3 and 4.1, NEITHER PARTY MAKES ANY, AND HEREBY SPECIFICALLY DISCLAIMS, ANY WARRANTIES, CONDITIONS, CLAIMS OR REPRESENTATIONS, EXPRESS, IMPLIED, OR STATUTORY, INCLUDING, WITHOUT LIMITATION, IMPLIED CONDITIONS OR WARRANTIES OF QUALITY, PERFORMANCE, NON-INFRINGEMENT, MERCHANTABILITY, OR FITNESS FOR A PARTICULAR PURPOSE, NOR ARE THERE ANY WARRANTIES CREATED BY COURSE OF DEALING, COURSE OF PERFORMANCE, OR TRADE USAGE, UNDER THIS AGREEMENT.

	
5.
	
General Provisions.

	
 
	
5.1
	
Expenses. Except as otherwise expressly provided in this Agreement, each party to this Agreement shall bear its respective expenses incurred in connection with the preparation, execution and performance of this Agreement and the License Agreement, including all fees and expenses of agents, representatives, counsel and accountants.

	
 
	
5.2
	
Confidentiality. The terms (but not the existence) of this Agreement are confidential, and no party shall make public disclosures concerning the terms of this Agreement without obtaining the prior written consent of the other party, which consent shall not be unreasonably withheld. This obligation shall expire eight years after the Effective Date. Notwithstanding the foregoing, a party may disclose the terms of this agreement (a) to comply with law or regulation; rules of any stock exchange on which shares of a party or its Affiliate are listed; or in conformity with accounting

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principles generally accepted in the United States; (b) in connection with an order or inquiry of a court or other government body, provided that the disclosing party provides the other party with notice and takes reasonable measure to obtain confidential treatment thereof; (c) in confidence to recipients’ Affiliates involved in the subject matter of this Agreement, attorneys, accountants, banks, and its advisors; or (d) in confidence, in connection with the sale of substantially all the business assets to which this Agreement relates, so long as, in each case, the entity to which disclosure is made is bound to confidentiality terms commensurate with those set forth herein; or (e) to the extent the terms of this Agreement have previously been publicly disclosed in compliance with this Agreement.

	
 
	
5.3
	
Notices. All notices, consents, waivers, and other communications under this Agreement must be in writing and shall be deemed to have been duly given when (a) delivered by hand (with written confirmation of receipt), (b) upon written confirmation of receipt when sent by facsimile transmission; provided, that a hard copy is mailed by registered mail, return receipt requested promptly thereafter or (c) when received by the addressee, if sent by a nationally recognized overnight delivery service (receipt requested), in each case to the appropriate addresses set forth below (or to such other addresses as a party may designate by notice to the other parties):

If to Pioneer:

Pioneer Hi-Bred International, Inc.

Attention: President

7100 N.W. 62nd Avenue

P.O. Box 1014

Johnston, IA 50131-1014

Fax:  

With a copy to:

Pioneer Hi-Bred International, Inc.

Attention: General Counsel

7250 N.W. 62nd Avenue

P.O. Box 1014

Johnston, IA 50131-1014

Fax: 

If to Buyer:

S&W Seed Company

106 K Street, Suite 300

Sacramento, CA 95814

Fax:  

	
 
	
5.4
	
Dispute Resolution; Governing Law; Jurisdiction.

	
 
	
5.4.1
	
Any dispute between the parties arising out of or relating to this Agreement, or the interpretation, validity or effectiveness of this Agreement, or any provision of this Agreement, in the event the parties fail to agree, shall, upon the written request of a party, be referred to designated senior management representatives of the parties for resolution. Such representatives shall promptly meet and, in good faith, attempt to resolve the controversy, claim or issues referred to them.

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5.4.2
	
If such representatives do not resolve the dispute within thirty (30) days after the dispute is referred to them, the dispute shall be settled by binding arbitration, in accordance with the Center for Public Resources (“CPR”) Rules for Non-Administered Arbitration of Business Disputes. For disputes in which the amount in controversy is less than or equal to U.S. $1,000,000, the parties shall mutually select one (1) neutral arbitrator who shall be qualified by experience and training to arbitrate commercial disputes. If the parties cannot agree on an arbitrator or if the amount in controversy exceeds U.S. $1,000,000, such dispute shall be settled by three (3) arbitrators who shall be qualified by experience and training to arbitrate commercial disputes, of whom each party involved in the arbitration shall appoint one, and the two appointees shall select the third, subject to meeting the qualifications for selection. If the parties have difficulty finding suitable arbitrators, the parties may seek assistance of CPR and its CPR Panels of Distinguished Neutrals. Judgment upon the award or other remedy rendered by the arbitrators may be entered by any court having jurisdiction thereof. The place of arbitration shall be in Wilmington, Delaware. The arbitrators shall apply the substantive law of the State of Delaware, without regard to its conflicts of law principles, and their decision thereon shall be final and binding on the parties. Discovery shall be allowed in any form agreed to by the parties, provided that if the parties cannot agree as to a form of discovery (i) all discovery shall be concluded within one hundred twenty (120) days of service of the notice of arbitration, (ii) each party shall be limited to no more than ten (10) requests for the production of any single category of documents, and (iii) each party shall be limited to two (2) depositions each with a maximum time limit that shall not exceed four (4) hours. Each party shall be responsible for and shall pay for the costs and expenses incurred by such party in connection with any such arbitration; provided, however, that all filing and arbitrators’ fees shall be borne fifty percent (50%) by Buyer and fifty percent (50%) by Seller. Each party does hereby irrevocably consent to service of process by registered mail, return receipt requested with respect to any such arbitration in accordance with and at its address set forth in Section 5.3 (as such address may be updated from time to time in accordance with the terms of Section 5.3). Any arbitration contemplated by this Section 5.4 shall be initiated by sending a demand for arbitration by registered mail, return receipt requested, to the applicable party in accordance with anu at we address set forth in the notice provision of this Agreement and such demand letter shall state the amount of relief sought by the party making the demand. This Agreement shall not be governed by the U.N. Convention on Contracts for the International Sale of Goods.

	
 
	
5.4.3
	
All proceedings and any testimony, documents, communications and materials, whether written or oral, submitted to or generated by the parties to each other or to the arbitration panel in connection with this Section 5.4 shall be deemed to be in furtherance of settlement negotiation and shall be privileged and confidential, and shielded from production in other Proceedings except as may be required by applicable law or regulation.

	
 
	
5.4.4
	
This Agreement shall be governed by the substantive laws of the State of Delaware, without regard to its conflicts of laws principles, and, except as otherwise provided herein, the State and Federal courts in the City of Wilmington, Delaware shall have exclusive jurisdiction over any Proceeding seeking to enforce any provision of, or based upon any right arising out of, this Agreement. The parties hereto do hereby irrevocably (i) submit themselves to the personal jurisdiction of such courts, (ii) agree to service of such courts’ process upon them with respect to any such proceeding, (iii) waive any objection to venue laid therein and (iv) consent to service of process by registered mail, return receipt requested to the address set forth in the notice provision of this Agreement.

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5.4.5
	
The parties acknowledge and agree that the foregoing choice of law and forum provisions are the product of an arm’s-length negotiation between the parties.

	
 
	
5.4.6
	
Notwithstanding anything to the contrary in this Section 5.4, either party to this Agreement may seek, in the State or Federal courts in the City of Wilmington, Delaware, interim or provisional injunctive relief (or similar equitable relief) to maintain the status quo until such time as the designated senior management representatives of the parties resolve a dispute referred to them or an arbitration award or other remedy is entered in connection with such dispute pursuant to this Section 5.4 and, by doing so, such party does not waive any right or remedy available under this Agreement.

	
 
	
5.5
	
No Implied Waivers; No Jury Trial. Except as otherwise set forth herein, the rights and remedies of the parties to this Agreement are cumulative and not alternative. Neither the failure nor delay by any party in exercising any right, power or privilege under this Agreement or the documents referred to in this Agreement shall operate as a waiver of such right, power or privilege, and no single or partial exercise of any such right, power or privilege shall preclude any other or further exercise of such right, power or privilege or the exercise of any other right, power or privilege. EACH PARTY HEREBY WAIVES, TO THE FULLEST EXTENT ALLOWED UNDER LEGAL REQUIREMENTS, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER, OR IN CONNECTION WITH THIS AGREEMENT.

	
 
	
5.6
	
Entire Agreement; Modification. This Agreement supersedes all prior agreements between the parties with respect to its subject matter and constitutes (along with the License Agreement) a complete and exclusive statement of the terms of the agreement between the parties with respect to its subject matter. This Agreement may not be amended except by a written agreement executed by both parties.

	
 
	
5.7
	
Assignments, Successors, and No Third-Party Rights.

	
 
	
5.7.1
	
Neither party may assign any of its rights or obligations under this Agreement, in whole or in part, without the prior written consent of the other party, such consent not to be unreasonably withheld, conditioned or delayed. Notwithstanding the foregoing, Pioneer may assign or transfer this Agreement to an Affiliate. This Agreement shall apply to, be binding in all respects upon and inure to the benefit of the successors and permitted assigns of the parties. Any attempted assignment in violation of this Section 5.7.1 shall be void.

	
 
	
5.7.2
	
Unless otherwise expressly provided herein, nothing expressed or referred to in this Agreement shall be construed to give any Person other than the parties to this Agreement any legal or equitable right, remedy or claim under or with respect to this Agreement or any provision of this Agreement. This Agreement and all of its provisions and conditions are for the sole and exclusive benefit of the parties to this Agreement and their successors and permitted assigns.

	
 
	
5.8
	
Severability. If any provision of this Agreement is held invalid or unenforceable by any court of competent jurisdiction, the other provisions of this Agreement shall remain in full force and effect. Any provision of this Agreement held invalid or unenforceable only in part or degree shall remain in full force and effect to the extent not held invalid or unenforceable.

	
 
	
5.9
	
Section Headings; Construction. The headings in this Agreement and Schedules and Exhibits attached hereto are provided for convenience only and shall not affect its construction or

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interpretation. With respect to any reference made in this Agreement to a Section. All words used in this Agreement shall be construed to be of such gender or number as the circumstances require. Unless otherwise expressly provided, the words "including", "include" and "includes" do not limit the preceding words or terms and any list of words or terms following the words "including", "include" and "includes" is not an exhaustive list. Any reference to a specific "day" or to a period of time designated in "days" shall mean a calendar day or period of calendar days unless the day or period is expressly designated as being a business day or period of business days. The use of "or" is not intended to be exclusive unless expressly indicated otherwise. All amounts denominated in dollars or "$" in this Agreement are references to United States dollars unless expressly indicated otherwise. The parties hereto acknowledge and agree that (a) each party and its counsel have reviewed and negotiated the terms and provisions of this Agreement and have contributed to its revision, (b) the rule of construction to the effect that any ambiguities are resolved against the drafting party shall not be employed in the interpretation of this Agreement and ( c) the terms and provisions of this Agreement shall be construed fairly as to all parties hereto, regardless of which party was generally responsible for the preparation of this Agreement.

IN WITNESS THERETO, the parties have executed this Termination Agreement.

PIONEER HI-BRED INTERNATIONAL, INC.

By:  /s/ James C. Collins

Title:  Executive Vice President

Date:  May 22, 2019

 

S & W SEED COMPANY

By:  /s/ Mark W. Wong

Title:  Chief Executive Officer

Date:  May 22, 2019

 

 

 

 

9

Schedule 1.5

Grower Agreements

 

[***]

 

 

Schedule 1.9

Inventory

 

[***]

 

 

Schedule 1.14

Sequestered Varieties

 

[***]

 

 

Schedule 2.1.1.1

Form of Grower Notice

 

[***]

 

 

Schedule 2.1.2.2

Delivery and payment Schedule for Inventory

 

 

				
	
September 15, 2019
	
22.2%
	
 
	
$   5,551,371.52

	
January 15, 2020
	
22.2%
	
 
	
$   5,551,371.52

	
February 15, 2020
	
22.2%
	
 
	
$   5,551,371.52

	
September 15, 2020
	
15.0%
	
 
	
$   3,750,926.70

	
January 15, 2021
	
10.0%
	
 
	
$   2,500,617.80

	
February 15, 2021
	
8.4%
	
 
	
$   2,100,518.95

	
 
	
100.0%
	
 
	
$ 25,006,178.00

 

Schedule 2.4.2

Research Trials

 

[***]sanw-ex1032_452.htm

Exhibit 10.32

[***] = Certain confidential information contained in this document, marked by brackets, has been omitted because it is both not material and would likely be competitively harmful if publicly disclosed.

 

Alfalfa License Agreement

This Alfalfa License Agreement (“Agreement”), effective May 20, 2019 (“Effective Date”), is by and between Pioneer Hi Bred International, Inc., a company organized and existing under the laws of the State of Iowa, with its principal place of business at 7100 NW 62nd Avenue, PO Box 1014, Johnston, Iowa 50131 1014, USA (“Licensee”), and S & W Seed Company, a company organized and existing under the laws of the State of Nevada, with its principal place of business at 106 K Street, Suite 300, Sacramento, CA 95814, USA (“Licensor”), (Licensee and Licensor referred to individually as a “Party” and collectively as the “Parties”).

WHEREAS, Licensee desires to acquire a license to certain Licensor alfalfa seed; and

WHEREAS, Licensor is the owner of certain alfalfa germplasm and is willing to grant such a license, subject to the terms and conditions of this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants, promises and consideration hereinafter set forth, the sufficiency of which is acknowledged by the Parties, the Parties agree as follows

	
1.
	
Definitions.

In this Agreement, unless the context otherwise requires, initially capitalized terms shall have the meaning ascribed thereto herein, including the following terms which shall have the following meanings

	
1.1
	
“Affiliate(s)” means with respect to an entity, any other entity that, directly or indirectly through one or more intermediates, Controls, is Controlled by or is under Common Control with another entity. Any entity that becomes an Affiliate after the Effective Date shall be deemed an Affiliate under this Agreement.

	
1.2
	
“Control,” “Controls,” “Controlled by,” and “under common Control” shall mean (a) the ownership, directly or indirectly, whether through one or more intermediaries, of fifty percent (50%) or more of the shares of stock entitled to vote for the election of directors, in the case of a corporation, or fifty percent (50%) or more of the equity interest in the case of any other type of legal entity, (b) status as a general partner in any partnership, or (c) any other arrangement by which an entity has, directly or indirectly, the power to direct or cause the direction of the management and policies of another entity.

	
1.3
	
“Cover” means, with respect to a given plant variety, that the unauthorized performance of any of the acts enumerated in Article 14 of the 1991 Act of the International Convention for the Protection of New Varieties of Plants or similar acts as may be provided under other applicable statutory protection systems for plant varieties (as limited by Articles 15 to 17 thereof) in respect of such variety, would infringe the breeder’s right in respect of such variety.

	
1.4
	
“Licensed Alfalfa” means the selected alfalfa commercial and pre commercial varieties/germplasm listed in Annex A of this Agreement, hereinbelow.

	
1.5
	
“Licensee Brands” means any brand owned by Licensee or its Affiliates, but excluding Dairyland and Mycogen.

	
1.6
	
“Person” means any individual, corporation, proprietorship, firm, partnership, limited-

1

		
liability company, trust, estate, association, organization, cooperative or other form of business or governmental entity, whether natural or legal.

	
1.7
	
“Statutory Right(s)” means all patents, patent applications, plant patents, plant patent applications, PVP rights (including both PVP certificates and PVP applications), and all related continuations, continuations in part, divisionals, reissues, re examinations, substitutions, and extensions thereof owned by Licensor and/or its Affiliates now or in the future to the extent that they Cover the corresponding Licensed Alfalfa, including all continuations, continuations in part, divisionals, re examinations and reissues thereof, and all rights and remedies against past, present, and future infringement, misappropriation, or other violation thereof.

	
1.8
	
“Technical Information” means the information listed in Annex B.

	
1.9
	
“Termination Agreement” means the termination agreement between Licensor and Licensee executed contemporaneously herewith.

	
1.10
	
“Territory” means worldwide excluding South America.

	
1.11
	
“Third Party” means any Person, organization, firm, corporation, partnership, or entity other than Licensee and Licensor and their respective Affiliates.

Interpretation of this Agreement shall be governed by the following rules of construction

	
 
	
a)
	
words in the singular shall be held to include the plural and vice versa and words of one gender shall be held to include the other gender unless otherwise specified;

	
 
	
b)
	
references to the terms Article, Section, paragraph, clause, Exhibit and Annex are references to the Articles, Sections, paragraphs, clauses, Exhibits and Annexes of this Agreement, unless otherwise specified;

	
 
	
c)
	
the terms “hereof,” “herein,” “hereby,” “hereto,” and derivative or similar words refer to this entire Agreement; and

	
 
	
d)
	
the word “including,” “includes,” and words of similar import when used in this Agreement shall mean “including, without limitation,” “includes, without limitation” or words of similar import, unless otherwise specified.

	
 
	
e)
	
The headings in this Agreement are for convenience only and shall not affect its interpretation.

	
2.
	
Grant of License.

	
2.1
	
Subject to the terms of this Agreement, Licensor grants to Licensee and Licensee’s Affiliates, in the Territory, the following irrevocable, perpetual, royalty free, fully paid up, sublicensable, and transferable (as set forth in Section 10 below) rights, under Licensor’s Statutory Rights and other intellectual property as set forth below

	
 
	
a.
	
a non exclusive right to make, have made, import, have imported, use, and have used Licensed Alfalfa;

	
 
	
b.
	
an exclusive right, including as to Licensor, to sell, have sold, offer for sale and have offered for sale Licensed Alfalfa in Licensee Brands;

	
 
	
c.
	
the right to apply for Statutory Rights for Licensed Alfalfa;

Page 2 of 11

	
 
	
d.
	
an exclusive right to enforce Statutory Rights covering Licensed Alfalfa in Licensee’s sole discretion, as more fully described in section 5.3 below.

	
2.2
	
For clarity, Licensee may use contractors to exercise the licenses granted hereunder.

	
2.3
	
Licensor acknowledges and understands that as part of the regular conduct of Licensee’s research program, Licensee routinely utilizes molecular techniques, molecular markers and other techniques, which shall be allowed under this Agreement.

	
2.4
	
Licensor shall, within ten days after the Effective Date, provide Licensee with all Technical Information relating to Licensed Varieties existing as of the Effective Date. Licensor shall also provide Licensee with any additional Technical Information generated by Licensor on or before January 31, 2020 within ten days after generation of any such Technical Information. Licensor grants Licensee the right to use such Technical Information in connection with the rights granted herein to Licensed Varieties.

	
3.
	
Restrictions on Use.

	
3.1
	
Each Party shall comply with all national, state and local laws and regulations relating to such Party’s activities under this Agreement.

	
3.2
	
No license is granted to either Party by this Agreement, by implication or otherwise, except as otherwise expressly provided for in this Agreement.

	
3.3
	
Subject to Section 3.5, no rights are granted herein to breed with Licensed Alfalfa.

	
3.4
	
Nothing in this Agreement shall be interpreted as providing a Party the right to use the trade name, trademarks or service marks of the other Party or its Affiliates in any advertising, publicity, news release, product labelling or for any commercial purpose, without the prior written consent of such other Party with the exception of use required in order to exercise rights hereunder.

	
3.5
	
Notwithstanding any other provision in this Agreement, no provision herein shall be deemed to limit any rights to Licensed Alfalfa Licensee or its Affiliates may have to make, use, sell, import, export and/or otherwise exploit Licensed Alfalfa in any way legally permissible under the laws of the jurisdiction in which such activities are conducted, to the extent an independent Third Party could legally do the same absent a license or other grant of rights from Licensor.

	
4.
	
Inventory of Licensed Alfalfa.

	
4.1
	
Licensor shall sell and Licensee shall purchase certain inventory of Licensed Alfalfa as specified in the Termination Agreement.

	
5.
	
Intellectual Property Rights

	
5.1
	
All right, title and interest in and to the Technical Information shall be and remain with Licensor.

	
5.2
	
All right, title and interest in and to data relating to Licensed Alfalfa generated by Licensee

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shall be and remain with Licensee.

	
5.3
	
Licensee shall have the exclusive right in the Territory (but not the obligation) to institute and conduct legal action against Third Parties for infringement related to Statutory Rights Covering Licensed Alfalfa, and to enter into settlement agreements as may be deemed appropriate by Licensee. Licensor shall provide commercially reasonable assistance (including providing data, witnesses, and documents to Licensee or its Affiliates, and, if required by law, subject to Licensee’s control and at Licensee’s expense, being a named party to any proceeding or bringing a proceeding in its own name) to Licensee and its Affiliates in connection with any proceedings or other efforts to enforce Licensee’s rights in connection with any such infringement. Licensee shall receive the full benefits, including any and all monetary recoveries, whether as compensatory or exemplary damages, of any proceeding or settlement for such infringement of such Licensed Alfalfa pursuant to this Section.

	
5.4
	
Licensor agrees to in a timely manner

	
 
	
a.
	
execute such documents as may be requested by Licensee to confirm Licensee’s ownership of Licensee’s Statutory Rights applied for pursuant to Section 2.1c); and

	
 
	
b.
	
at the reasonable request and expense of Licensee, to co operate reasonably with Licensee in any efforts to register, maintain or enforce Licensee’s Statutory Rights applied for pursuant to Section 2.1c); and

	
 
	
c.
	
require Licensor’s employees to do the same.

	
6.
	
Term and Termination.

	
6.1
	
Term. The term of this Agreement shall commence as of the date hereof and shall continue thereafter until expiration of this Agreement, which shall occur upon the last to expire of Statutory Rights Covering Licensed Alfalfa, provided that the obligations in Subsection 5.3 shall survive until the end of the applicable statute of limitations.

	
6.2
	
For the avoidance of doubt, all Licensee’s rights to Licensed Alfalfa and Technical Information shall survive expiration of this Agreement.

	
7.
	
Warranties and Indemnifications.

	
7.1
	
Licensor warrants that, to the best of its knowledge, it has full power and authority, and sufficient rights to grant the rights and license granted by this Agreement.

	
7.2
	
Licensor represents and warrants that the terms of this Agreement do not conflict with any 
other contractual obligations it may have. Licensor specifically represents and warrants that 
any genetic material introduced into the Licensed Alfalfa by Licensor (or third parties acting 
on its behalf) during the period from January 1, 2015 through the Effective Date was 
introduced in compliance with the International Treaty for PGRFA, the Convention on 
Biological Diversity, and the principles of Prior Informed Consent and Access and Benefit

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Sharing. Licensor further represents and warrants that it has not previously granted a license to sell, have sold, offer for sale, or have offered for sale Licensed Alfalfa to a Third Party.

	
7.3
	
Licensor represents and warrants that the Licensed Alfalfa and related data provided to Licensee shall be identified accurately.

	
7.4
	
BOTH PARTIES EXPRESSLY DISCLAIM ALL OTHER WARRANTIES, CONDITIONS, CLAIMS OR REPRESENTATIONS, EXPRESS, IMPLIED, OR STATUTORY, INCLUDING, WITHOUT LIMITATION, IMPLIED CONDITIONS OR WARRANTIES OF QUALITY, PERFORMANCE, NON INFRINGEMENT, MERCHANTABILITY, OR FITNESS FOR A PARTICULAR PURPOSE, NOR ARE THERE ANY WARRANTIES CREATED BY COURSE OF DEALING, COURSE OF PERFORMANCE, OR TRADE USAGE, UNDER THIS AGREEMENT.

	
8.
	
Government Registration.

	
8.1
	
Licensee shall, at its own expense, be responsible for obtaining from the relevant government authorities all registrations, approvals and/or consents and fulfilling all other requirements and completing all procedures related to this Agreement that are or may in the future be required or advisable under any law or regulation now or hereafter existing in the Territory as relates to any Licensed Alfalfa under this Agreement, provided, however, that Licensor shall, within ten business days after the Effective Date, assign all phytosanitary certificates and applications (and other similar regulatory applications), in each case to the extent relating to the Territory, that Licensor holds for Licensed Alfalfa.

	
9.
	
Assignment.

	
9.1
	
Neither Party may assign or otherwise transfer this Agreement without the consent of the other, except that either Party may, without such consent, by written notice to the other Party, assign this Agreement to one of its Affiliates.

	
9.2
	
Upon any such assignment referred to in this Section 10 the rights and obligations under this Agreement shall be binding upon and inure to the benefit of said assignee.

	
9.3
	
Any purported assignment or delegation in breach of this section 10 will be void.

	
10.
	
Force Majeure. 

	
10.1
	
Neither of the parties shall be liable for any default or delay in performance of any obligation under this Agreement to the extent caused by any of the following Act of God, war, riot, fire, explosion, drought, wind, 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).

	
10.2
	
The party invoking this Section 10 shall give the other party written notice and full particulars of such force majeure event.

Page 5 of 11

	
10.3
	
Both Parties shall use reasonable business efforts to mitigate the effects of any force majeure on their respective part.

	
11.
	
Miscellaneous.

	
11.1
	
Notices. Any notice or other communication required or permitted to be given by any Party under this Agreement shall be given in writing and shall be effective when delivered, if delivered by fax, hand, reputable courier service or five days after mailing if mailed by registered or certified mail, postage prepaid and return receipt requested, addressed to each Party at the following addresses or such other address as may be designated by notice pursuant to this Section 11.1

If to Licensor

S&W Seed Company
106 K Street, Suite 300
Sacramento, CA 95814 U.S.A.

If to Licensee

Pioneer Hi Bred International, Inc.
7100 NW 62nd Avenue, PO Box 1014
Johnston, Iowa 50131 1014

Attention:

	
11.2
	
Relationship of the Parties. The relationship of the Parties to this Agreement is strictly contractual, and the Parties hereto acknowledge that this Agreement does not create a joint venture, partnership, or the like, between them. No Party to this Agreement shall have any authority to employ any person as an employee or agent for or on behalf of any other Party for any purpose, and no Party to this Agreement, nor any person performing any duties or engaging in any work at the request of such Party, shall be deemed to be an employee or agent of any other party hereto.

	
11.3
	
Confidentiality. The terms (but not the existence) of this Agreement are confidential, and no Party shall make public disclosures concerning the terms of this Agreement without obtaining the prior written consent of the other Party, which consent shall not be unreasonably withheld. This obligation shall expire eight years after the Effective Date. Notwithstanding the foregoing, a Party may disclose the terms of this agreement (a) to comply with law or regulation; rules of any stock exchange on which shares of a Party or its Affiliate are listed; or in conformity with accounting principles generally accepted in the United States; (b) in connection with an order or inquiry of a court or other government body, provided that the disclosing Party provides the other Party with notice and takes reasonable measure to obtain confidential treatment thereof; (c) in confidence to recipients’ Affiliates involved in the subject matter of this Agreement, attorneys, accountants, banks, and its advisors; or (d) in confidence, in connection with the sale of substantially all the business assets to which this Agreement relates, so long as, in each case, the entity to which disclosure is made is bound to confidentiality terms commensurate with those set forth herein.

Page 6 of 11

	
11.4
	
Fees. Except as otherwise provided herein, each Party to this Agreement shall bear its own legal fees incurred in connection with the transactions contemplated hereby.

	
11.5
	
Further Assurances. The Parties hereto shall execute such further documents and perform such further acts (and generally cooperate with each other) as may be necessary to comply with the terms of this Agreement and consummate the transactions herein provided such acts are reasonable and at the expense of the requesting Party.

	
11.6
	
Remedies. Except as otherwise expressly stated in this Agreement, the rights and remedies of a Party set forth herein with respect to failure of the other to comply with the terms of this Agreement (including rights of full termination of this Agreement) are not exclusive, the exercise thereof shall not constitute an election of remedies and the aggrieved Party shall in all events be entitled to seek whatever additional remedies may be available.

	
11.7
	
Construction. This Agreement has been negotiated by the Parties hereto and their respective counsel. This Agreement shall be interpreted in accordance with its terms and without any strict construction in favor of or against any Party. This Agreement shall not be construed in favor of or against any Party by reason of the authorship of any provisions hereof.

	
11.8
	
No Third Party Beneficiaries. Except as expressly set forth in this Agreement, the terms of this Agreement are not intended to confer any rights or remedies upon, and shall not be enforceable by, any person or entity other than the Parties.

	
11.9
	
Affiliates. The Parties will cause their respective Affiliates to abide by and act in accordance with the terms of this Agreement and any rulings of any court before which a judicial proceeding is heard. Any act or omission of an Affiliate of a Party which would be a breach of this Agreement if by a Party shall be deemed to be a breach by such Party.

	
11.10
	
Waiver. No failure by any Party to insist upon the strict performance of any covenant, agreement, term or condition of this Agreement or to exercise any right or remedy upon a breach of such or any other covenant, agreement, term or condition of this Agreement shall operate as a waiver of such or any other covenant, agreement, term or condition of this Agreement. No waiver of any covenant, agreement, term or condition of this Agreement shall affect or alter the remainder of this Agreement, and each and every covenant, agreement, term and condition of this Agreement shall continue in full force and effect with respect to any other then existing or subsequent breach of this Agreement. No waiver of any covenant, agreement, term or condition of this Agreement shall be of any force or effect unless set forth in a writing signed by each Party to this Agreement.

	
11.11
	
Counterparts. This Agreement may be executed by the Parties in multiple counterparts, each of which shall be deemed an original and all of which, taken together, shall constitute one and the same instrument. All signatures need not be on the same counterpart.

	
11.12
	
Severability. To the extent permitted by applicable law, each provision of this Agreement shall be considered separable, and if for any reason any provision or provisions thereof are determined to be invalid and contrary to any applicable law, such invalidity shall not impair the operation of or affect those portions of this Agreement which are valid.

	
11.13
	
Governing Law. This Agreement shall be governed by, construed and enforced in 
accordance with the laws of the State of Delaware without regard to principles of conflicts of

Page 7 of 11

		
law.

	
11.14
	
Entire Agreement, Amendments. This Agreement supersedes all prior agreements between the parties with respect to its subject matter and constitutes (along with the Termination Agreement) a complete and exclusive statement of the terms of the agreement between the parties with respect to its subject matter. This Agreement may not be amended except by a written agreement executed by both parties.

[Signatures on following page]

 

Page 8 of 11

IN TESTIMONY WHEREOF, Licensee and Licensor have entered into this Agreement effective as of the Effective Date. The individuals signing below on behalf of Licensee and Licensor represent that they are authorized to sign on behalf of Licensee and Licensor, respectively, and indicate the acceptance of all of the terms of this Agreement.

SIGNED for and on behalf of PIONEER HI BRED INTERNATIONAL, INC. by

Signature  /s/ James C. Collins

Name:  James C. Collins

Title:    Executive Vice President

Date:    May 22, 2019

SIGNED for and on behalf of S&W SEED COMPANY by

Signature  /s/ Mark W. Wong

Name:  Mark W. Wong

Title:    Chief Executive Officer

Date:    May 22, 2019

 

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Annex A

Licensed Alfalfa

[***]

 

Page 10 of 11

Annex B

Technical Information

[***]

Page 11 of 11

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