Document:

Registration Rights Agreement

 
Exhibit 10.1

 
REGISTRATION RIGHTS AGREEMENT

 
THIS REGISTRATION RIGHTS AGREEMENT is
entered into effective as of February 7, 2003 by and among Syntroleum Corporation, a Delaware corporation (the “Company”), and the individuals listed as “Investors” on the signature pages hereto (each an “Investor” and,
collectively, the “Investors”). 
 
RECITALS 
 
WHEREAS, the
Company and the Investors are parties to that certain Securities Purchase Agreement, dated as of February 7, 2003 (the “Purchase Agreement”), providing for the sales by the Company and the purchases by the Investors of shares of the
Company’s Common Stock, par value $0.01 per share (the “Common Stock”), and warrants (the “Warrants”) to purchase shares of Common Stock (the “Warrant Shares”); and 
 
WHEREAS, the sales of the Common Stock and the Warrants to the
Investors are conditioned upon granting the rights set forth herein to the respective Investors; 
 
NOW THEREFORE, in consideration of the foregoing, the parties agree as follows: 
 
SECTION 1 
DEFINITIONS 
 
1
Certain Definitions. As used in this Agreement, the following terms shall have the following respective meanings: 
 
“Affiliate” shall mean, with respect to any Person, any other Person controlling, controlled by or under direct or
indirect common control with such Person (for the purposes of this definition “control,” when used with respect to any specified Person, shall mean the power to direct the management and policies of such Person, directly or indirectly,
whether through ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” shall have meanings correlative to the foregoing). 
 
“Closing Date” means February 7, 2003.

 
“Exchange Act” means the
Securities Exchange Act of 1934, as amended. 
 
“Holder” means each of the Investors, and any Person holding Registrable Securities to whom the rights under Section 2.1 have been transferred in accordance with Section 2.1(i) hereof. 
 
“Indemnitee” shall have the meaning ascribed
to such term in Section 2.1(f). 
 
“Indemnified Party” shall have the meaning ascribed to such term in Section 2.1(f). 
 

 
“Indemnifying Party” shall have the meaning ascribed to such term in Section 2.1(f). 
 
“Person” shall mean any person, individual, corporation, partnership, trust or other nongovernmental entity or any
governmental agency, court, authority or other body (whether foreign, federal, state, local or otherwise). 
 
The terms “register,” “registered” and “registration” refer to the registration
effected by preparing and filing a registration statement in compliance with the Securities Act, and the declaration or ordering of the effectiveness of such registration statement. 
 
“Registrable Securities” shall mean (A) the Shares, (B) the Warrant Shares, and (C) any
shares of Common Stock issued as (or issuable upon the conversion of any warrant, right or other security which is issued as) a dividend or other distribution with respect to or in replacement of the Shares or the Warrant Shares; provided, however,
that securities shall only be treated as Registrable Securities if and only for so long as they are held by a Holder or a permitted transferee pursuant to subsection 2.1(i) and (1) have not been disposed of pursuant to a registration statement
declared effective by the SEC, (2) have not been sold in a transaction exempt from the registration and prospectus delivery requirements of the Securities Act so that all transfer restrictions and restrictive legends with respect thereto are removed
upon the consummation of such sale, or (3) such Holder may sell under Rule 144 under the Securities Act in a three-month period all Registrable Securities then held by such Holder. 
 
“Registration Expenses” shall mean all expenses incurred by the Company in complying with
Section 2.1(a) or (b) hereof, including, without limitation, all registration, qualification and filing fees, printing expenses, escrow fees, fees and expenses of counsel for the Company, blue sky fees and expenses (for a reasonable number of
states) and the expense of any special audits incident to or required by any such registration (but excluding the fees of legal counsel for any Holder). 
 
“Registration Statement” shall mean a registration statement under the Securities Act filed by the Company with the SEC.

 
“Registration Period” shall
have the meaning ascribed to such term in Section 2.1(d). 
 
“SEC” means the Securities and Exchange Commission of the United States or any other U.S. federal agency at the time administering the Securities Act. 
 
“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations
of the Commission thereunder, all as the same shall be in effect at the time. 
 
“Selling Expenses” shall mean all underwriting discounts and selling commissions and similar fees applicable to the sale of Registrable Securities and all fees and expenses of legal
counsel for any Holder and all transfer taxes. 
 
“Shares” means the shares of Common Stock purchased by the Investors pursuant to the Purchase Agreement. 
 

2 

 
SECTION 2

REGISTRATION RIGHTS 
 
1 Registration Rights. 
 
(a) Piggyback Registration. (i) If the Company at any time proposes to register any of its Common Stock or any other of its
securities (collectively with the Common Stock, “Other Securities”) under the Securities Act, whether or not for sale for its own account, in a manner which would permit registration of Registrable Securities for sale for cash to the
public under the Securities Act, it will at such time give prompt written notice to each Holder of its intention to do so at least 10 business days prior to the anticipated filing date of the Registration Statement relating to such registration.
Such notice shall offer each such Holder the opportunity to include in such Registration Statement such number of Registrable Securities as each such Holder may request. Upon the written request of any such Holder made within 5 business days after
the receipt of the Company’s notice (which request shall specify the number of Registrable Securities intended to be disposed of and the intended method of disposition thereof), the Company shall effect, in the manner set forth in Section 2(d),
in connection with the registration of the Other Securities, the registration under the Securities Act of all Registrable Securities which the Company has been so requested to register, to the extent required to permit the disposition (in accordance
with such intended methods thereof) of the Registrable Securities so requested to be registered, provided that: if at any time after giving written notice of its intention to register any securities and prior to the effective date of such
registration, the Company shall determine for any reason not to register or to delay registration of such securities, the Company may, at its election, give written notice of such determination to the Holders and, thereupon, (A) in the case of a
determination not to register, the Company shall be relieved of its obligation to register any Registrable Securities in connection with such registration and (B) in the case of a determination to delay such registration, the Company shall be
permitted to delay registration of any Registrable Securities requested to be included in such registration for the same period as the delay in registering such other securities, but, in either such case, without prejudice to the rights of the
Holders under Section 2(b); 
 
(ii) If the
registration referred to in the first sentence of this Section 2(a) is to be a registration in connection with an underwritten offering on behalf of either the Company or holders of securities (other than Registrable Securities) of the Company
(“Other Holders”), and the managing underwriter for such offering advises the Company in writing that, in such firm’s opinion, such offering would be materially and adversely affected by the inclusion therein of Registrable Securities
requested to be included therein because such Registrable Securities are not of the same type, class or series as the securities to be offered and sold in such offering on behalf of the Company and/or the Other Holders, the Company may exclude all
such Registrable Securities from such offering; 
 
(iii) If the registration referred to in the first sentence of this Section 2(a) is to be a registration in connection with an underwritten primary offering on behalf of the Company, and the managing underwriter for such offering
advises the Company in writing that, in such firm’s opinion, such offering would be materially and adversely affected by the inclusion therein of the Registrable Securities requested to be included therein because the number or 
 

3 

 
principal amount of such
Registrable Securities, considered together with the number or principal amount of securities proposed to be offered by the Company, exceeds the aggregate number or principal amount of securities which, in such firm’s opinion, can be sold in
such offering without materially and adversely affecting the offering, the Company shall include in such registration: (1) first, all securities the Company proposes to sell for its own account (“Company Securities”) and (2) second, the
number or principal amount of Registrable Securities and securities, if any, requested to be included therein by Other Holders in excess of the number or principal amount of Company Securities which, in the opinion of such underwriter, can be so
sold without materially and adversely affecting such offering (allocated pro rata among the Holders and the Other Holders on the basis of the number of securities (including Registrable Securities) requested to be included therein by each
Holder and each such Other Holder); 
 
(iv) If the
registration referred to in the first sentence of this Section 2(a) is to be a registration in connection with an underwritten secondary offering on behalf of Other Holders made pursuant to demand registration rights granted by the Company to such
Other Holders (the “Initiating Holders”), and the managing underwriter for such offering advises the Company in writing that, in such firm’s opinion, such offering would be materially and adversely affected by the inclusion therein of
the Registrable Securities requested to be included therein because the number or principal amount of such Registrable Securities, considered together with the number or principal amount of securities proposed to be offered by the Initiating
Holders, exceeds the aggregate number or principal amount of securities which, in such firm’s opinion, can be sold in such offering without materially and adversely affecting the offering, the Company shall include in such registration; (1)
first, to the extent the registration rights granted to an Initiating Holder permit it to exclude other securities from its registration on substantially the same basis as that set forth in Section 2(a)(iii) hereof, all securities any such
Initiating Holder proposes to sell for its own account, and (2) second, the number or principal amount of additional securities (including Registrable Securities) that such managing underwriter advises can be sold without materially and adversely
affecting such offering, allocated pro rata among any Other Holders to which clause (1) does not apply and the Holders on the basis of the number of securities (including Registrable Securities) requested to be included therein by each Holder
and each such Other Holder; 
 
(v) The Company
shall not be required to effect any registration of Registrable Securities under this Section 2(a) incidental to the registration of any of its securities in connection with stock option or other executive or employee benefit or compensation plans
of the Company; 
 
(vi) No registration of
Registrable Securities effected under this Section 2(a) shall relieve the Company of its obligation to effect any registration of Registrable Securities required of the Company pursuant to Section 2(b) hereof; and 
 
(vii) The provisions of this Section 2(a) shall not require
the Company to include Registrable Securities in any registration statement of the Company that has been filed prior to the date of this Agreement. 
 

4 

 
(b) Demand
Registration. No later than 60 days following January 1, 2004, the Company will file a Registration Statement on Form S-3 with the SEC with respect to the Registrable Securities and will use its commercially reasonable best efforts to cause such
Registration Statement to be declared effective by the SEC. 
 
(c) Expenses of Registration. All Registration Expenses incurred in connection with any registration, qualification or compliance pursuant to subsection 2.1(a) or (b) shall be borne by the Company. All Selling Expenses
relating to the sale of securities registered by or on behalf of Holders shall be borne by such Holders pro rata on the basis of the number of securities so registered except to the extent such Selling Expense is specifically attributable to one
Holder, in which case it shall be borne by such Holder. 
 
(d) Registration Procedures. In the case of the registration, qualification or compliance effected by the Company pursuant to this Agreement, the Company will, upon reasonable request, inform each Holder as to the status of
such registration, qualification and compliance. At its expense, the Company will during such time as the Holder holds Registrable Securities: 
 
(i) use its commercially reasonable best efforts to keep such registration, and any qualification or compliance under state securities
laws which the Company determines to obtain, effective until at least the first anniversary of the Closing Date or until the Holders have completed the distribution described in the registration statement relating thereto, whichever first occurs;

 
(ii) furnish such number of prospectuses and
other documents incident thereto as the Holders from time to time may reasonably request; 
 
(iii) use its commercially reasonable best efforts to register or qualify such Registrable Securities under such other securities or blue sky laws of such jurisdictions as any Holder reasonably
requests and do any and all other acts and things which may be reasonably necessary or advisable to enable such Holder to consummate the disposition of the Registrable Securities owned by such Holder in such jurisdictions; provided, that the Company
will not be required to (A) qualify generally to do business in any jurisdiction where it would not otherwise be required to qualify but for this Section 2.1(d), or (B) subject itself to income taxation in any such jurisdiction; 
 
(iv) notify each Holder of such Registrable Securities, at
any time when a prospectus relating thereto is required to be delivered under the Securities Act, of the happening of any event as a result of which the prospectus included in such Registration Statement contains an untrue statement of a material
fact or omits any fact necessary to make the statements therein not misleading, and, at the request of any such Holder, the Company will prepare a supplement or amendment to such prospectus so that, as thereafter delivered to the purchasers of such
Registrable Securities, such prospectus will not contain an untrue statement of a material fact or omit to state any fact necessary to make the statements therein not misleading; 
 

5 

 
(v) cause all
such Registrable Securities to be listed or quoted on each securities exchange or automated quotation system on which similar securities issued by the Company are then listed or quoted; 
 
(vi) appoint a transfer agent and registrar for all such Registrable Securities not later than the effective
date of such Registration Statement; and 
 
(vii)
The Company will use its commercially reasonable best efforts to effect the registration, qualifications or compliances (including, without limitation, the execution of any required undertaking to file post-effective amendments, appropriate
qualifications under applicable blue sky or other state securities laws and appropriate compliance with applicable securities laws, requirements or regulations) as may be so reasonably requested and as would permit or facilitate the sale and
distribution of all Registrable Securities; provided that the Company shall not be obligated to take any action to effect any such state registration, qualification or compliance pursuant to this Section 2 in any particular jurisdiction in which the
Company would be required to execute a general consent to service of process in effecting such registration, qualification or compliance unless the Company is already subject to service or is required to qualify in such jurisdiction, as the case may
be, and except as may be required by the Securities Act. 
 
The
period of time during which the Company is required hereunder to keep the Registration Statement effective is referred to herein as “the Registration Period.” 
 
(e) Delay of Registration. The Holders shall have no right to take any action to restrain, enjoin or
otherwise delay any registration pursuant to subsection 2.1(a) or (b) hereof as a result of any controversy that may arise with respect to the interpretation or implementation of this Agreement. 
 
(f) Indemnification. 
 
(i) To the extent permitted by law, the Company will
indemnify each Holder and each Person controlling such Holder within the meaning of Section 15 of the Securities Act, with respect to which any registration, qualification or compliance has been effected pursuant to this Agreement, (each an
“Indemnitee”), against all claims, losses, damages and liabilities (or actions in respect thereof), including any of the foregoing incurred in settlement of any litigation, commenced or threatened, arising out of or based on any untrue
statement of a material fact contained in any registration statement, prospectus, offering circular or other document, or any amendment or supplement thereof, incident to any such registration, qualification or compliance, or based on any omission
to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, and will reimburse each Indemnitee for reasonable legal and any other expenses reasonably incurred in connection with
investigating, preparing or defending any such claim, loss, damage, liability or action; provided that the Company will not be liable in the case of any untrue statement or omission to the extent that such untrue statement or omission is made in
reliance upon and in conformity with written information furnished to the Company by an instrument duly executed by or on behalf of such Indemnitee and stated to be specifically for use in preparation of such registration 
 

6 

statement, prospectus, offering circular or other document; and provided that the Company will not be
liable in any such case where the expense, claim, loss, damage or liability arises out of or is related to the failure of the Holder to comply with the covenants and agreements contained in this Agreement respecting sales of Registrable Securities;
and, provided, further, that the indemnity with respect to any preliminary prospectus shall not apply to the extent that any such claim, loss, damage or liability results from the fact that a current copy of the prospectus was not sent or given to
the Person asserting any such claims, losses, damages or liabilities at or prior to the written confirmation of the sale of the Registrable Securities confirmed to such Person if such current copy of the prospectus would have cured the defect giving
rise to such claim, loss, damage or liability. 
 
(ii) To the extent permitted by law, each Holder will severally, if Registrable Securities held by such Holder are included in the securities as to which such registration, qualification or compliance is being effected, indemnify the
Company, each of its directors, officers, employees, legal counsel and accountants and each Person who controls the Company within the meaning of Section 15 of the Securities Act, against all claims, losses, damages and liabilities (or actions in
respect thereof), including any of the foregoing incurred in settlement of any litigation, commenced or threatened, arising out of or based on any untrue statement of a material fact contained in any registration statement, prospectus, offering
circular or other document, or any amendment or supplement thereof, incident to any such registration, qualification or compliance, or based on any omission to state therein a material fact required to be stated therein or necessary to make the
statements therein not misleading, or any failure by a Holder to comply with the covenants or agreements contained in this Agreement respecting the Registrable Securities and will reimburse the Company, such directors, officers, employees, legal
counsel and accountants and such controlling Person for reasonable legal and any other expenses reasonably incurred in connection with investigating, preparing or defending any such claim, loss, damage, liability or action; provided that such Holder
will only be liable in the case of any untrue statement or omission to the extent that such untrue statement or omission is made in reliance upon and in conformity with written information furnished to the Company by an instrument duly executed by
or on behalf of the Holder and stated to be specifically for use in preparation of such registration statement, prospectus, offering circular or other document. Notwithstanding the foregoing, in no event shall a Holder be liable for any such claims,
losses, damages or liabilities in excess of the proceeds received by such Holder in the offering, except in the event of fraud by such Holder. 
 
(iii) Each party entitled to indemnification under this subsection 2.1(f) (the “Indemnified Party”) shall give notice to the
party required to provide indemnification (the “Indemnifying Party”) promptly after such Indemnified Party has actual knowledge of any claim as to which indemnity may be sought, and shall permit the Indemnifying Party to assume the defense
of any such claim or any litigation resulting therefrom, provided that counsel for the Indemnifying Party, who shall conduct the defense of such claim or litigation, shall be approved by the Indemnified Party (whose approval shall not unreasonably
be withheld), and the Indemnified Party may participate in such defense at such party’s expense, and provided further that the failure of any Indemnified Party to give notice as provided herein shall not relieve the Indemnifying Party of its
obligations under this Agreement, unless such failure is prejudicial to the Indemnifying Party in defending such claim or litigation. An Indemnifying Party shall not be 
 

7 

liable for any settlement of an action or claim effected without its written consent (which consent will
not be unreasonably withheld). 
 
(iv) If the
indemnification provided for in this subsection 2.1(f) is held by a court of competent jurisdiction to be unavailable to an Indemnified Party with respect to any loss, liability, claim, damage or expense referred to therein, then the Indemnifying
Party, in lieu of indemnifying such Indemnified Party thereunder, shall contribute to the amount paid or payable by such Indemnified Party as a result of such loss, liability, claim, damage or expense in such proportion as is appropriate to reflect
the relative fault of the Indemnifying Party on the one hand and of the Indemnified Party on the other in connection with the statements or omissions which resulted in such loss, liability, claim, damage or expense as well as any other relevant
equitable considerations. The relative fault of the Indemnifying Party and of the Indemnified Party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a
material fact relates to information supplied by the Indemnifying Party or by the Indemnified Party and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission.

 
(g) Covenants of Holders. 
 
(i) Each Holder agrees that, upon receipt of any notice from
the Company of the happening of any event requiring the preparation of a supplement or amendment to a prospectus relating to Registrable Securities so that, as thereafter delivered to the Holders, such prospectus will not contain an untrue statement
of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading, each Holder will forthwith discontinue disposition of Registrable Securities pursuant to the registration
statement contemplated by subsection 2.1(a) or (b) until its receipt of copies of the supplemented or amended prospectus from the Company and, if so directed by the Company, each Holder shall deliver to the Company all copies, other than permanent
file copies then in such Holder’s possession, of the prospectus covering such Registrable Securities current at the time of receipt of such notice. 
 
(ii) Each Holder severally agrees for a period of 90 days from the effective date of any registration (other than a registration effected
solely to implement an employee benefit plan) of securities of the Company for any underwritten offering in which securities of the Company are sold not to sell, make any short sale of, loan, grant any option for the purchase of, or otherwise
dispose of any Registrable Securities or any other stock of the Company held by such Holder, other than shares of Registrable Securities included in such registration, without the prior written consent of the Company or the underwriters managing
such underwritten offering, as the case may be; provided that this obligation is subject to the condition that all executive officers and directors of the Company shall enter into similar agreements. 
 
(iii) Each Holder agrees to suspend, upon request of the
Company, any disposition of Registrable Securities pursuant to the Registration Statement and prospectus contemplated by subsection 2.1(a) of (b) during any period, not to exceed in the aggregate 90 days in any 12-month period, when the Company
determines in good faith that offers and sales 
 

8 

pursuant thereto should not be made by reason of the presence of material, undisclosed circumstances or
developments with respect to which the disclosure that would be required in such a prospectus is premature, would have an adverse effect on the Company or is otherwise inadvisable. Any such request by the Company shall be held confidential by the
Holder. 
 
(iv) Each Holder agrees to notify the
Company, at any time when a prospectus relating to the registration statement contemplated by subsection 2.1(a) or (b) is required to be delivered by it under the Securities Act, of the occurrence of any event relating to the Holder which requires
the preparation of a supplement or amendment to such prospectus so that, as thereafter delivered to the purchasers of Registrable Securities, such prospectus will not contain an untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the statements therein not misleading relating to the Holder, and each Holder shall promptly make available to the Company the information to enable the Company to prepare any such supplement or
amendment. Each Holder also agrees that, upon delivery of any notice by it to the Company of the happening of any event of the kind described in the preceding sentence of this subsection, the Holder will forthwith discontinue disposition of
Registrable Securities pursuant to such registration statement until its receipt of the copies of the supplemental or amended prospectus contemplated by this subsection, which the Company shall promptly make available to each Holder and, if so
directed by the Company, each Holder shall deliver to the Company all copies, other than permanent file copies then in such Holder’s possession, of the prospectus covering such Registrable Securities current at the time of receipt of such
notice. 
 
(v) Each Holder shall promptly furnish
to the Company such information regarding such Holder and the distribution proposed by such Holder as the Company may request in writing or as shall be required in connection with any registration, qualification or compliance referred to in this
Section 2.1. The Holder will promptly keep the Company informed as to all sales of Registerable Securities made under the Registration Statement and assist the Company in updating such information in the Registration Statement and any prospectus
supplement relating thereto. 
 
(vi) Each Holder
hereby covenants with the Company (1) not to make any sale of the Shares without effectively causing the prospectus delivery requirements under the Securities Act to be satisfied, and (2) if such Shares are to be sold by any method or in any
transaction other than on a national securities exchange, in the over-the-counter market, on the Nasdaq, in privately negotiated transactions, or in a combination of such methods, to notify the Company at least five business days prior to the date
on which the Purchaser first offers to sell any such Shares. 
 
(vii) Each Holder acknowledges and agrees that the Registrable Securities sold pursuant to the registration statement described in this Section are not transferable on the books of the Company unless the stock certificate submitted
to the transfer agent evidencing such Shares is accompanied by a certificate reasonably satisfactory to the Company to the effect that (A) the Registrable Securities have been sold in accordance with such registration statement and (B) the
requirement of delivering a current prospectus has been satisfied. 
 

9 

 
(viii) Each
Holder agrees that it will not effect any disposition of the Registrable Securities that would constitute a sale within the meaning of the Securities Act except as contemplated in the registration statement referred to in this Section 2.1. Each
Holder agrees not to take any action with respect to any distribution deemed to be made pursuant to such registration statement that constitutes a violation of Regulation M under the Exchange Act or any other applicable rule, regulation or law.

 
(h) Rule 144 Reporting. With a view to
making available to the Holders the benefits of certain rules and regulations of the SEC which at any time permit the sale of the Registrable Securities to the public without registration, the Company agrees to use its reasonable best efforts to:

 
(i) make and keep public information available,
as those terms are understood and defined in Rule 144 under the Securities Act, at all times; and 
 
(ii) file with the SEC in a timely manner all reports and other documents required of the Company under the Exchange Act. 
 
(i) Transfer of Registration Rights. The rights to
cause the Company to register Registrable Securities granted to the Holders by the Company under subsection 2.1(a) and (b) may be assigned in full by a Holder to an Affiliate of such Holder; provided that: (i) such transfer may otherwise be effected
in accordance with applicable securities laws; (ii) such Holder gives prior written notice to the Company; and (iii) such transferee agrees to comply with the terms and provisions of this Agreement and the Purchase Agreement and such transfer is
otherwise in compliance with this Agreement and the Purchase Agreement. Except as specifically permitted by this paragraph (i), the rights of a Holder with respect to Registrable Securities as set out herein shall not be transferable to any other
Person, and any attempted transfer shall cause all rights of such Holder therein to be forfeited. 
 
SECTION 3 
MISCELLANEOUS 
 
1 Governing Law. This Agreement shall be governed by
and construed in accordance with the laws of the State of Delaware, without regard to any principles of conflicts of law thereof. 
 
2 Severability. In the event that any provision of this Agreement becomes or is declared by a court of competent
jurisdiction to be illegal, invalid, unenforceable or void, this Agreement shall continue in full force and effect without said provision. In such event, the parties shall negotiate, in good faith, a legal, valid and binding substitute provision
which most nearly effects the intent of the parties in entering into this Agreement. 
 
3 Notices. All notices and other communications required or permitted hereunder shall be in writing (or in the form of a telex or telecopy (confirmed in writing) to be given only during
the recipient’s normal business hours unless arrangements have otherwise been made to receive such notice by telex or telecopy outside of normal business hours) and shall be mailed by registered or certified mail, postage prepaid, or otherwise
delivered by hand, messenger, or telex 
 

10 

or telecopy (as provided above) addressed (a) if to an Investor, at such address as such Investor shall
have furnished to the Company in writing or (b) if to the Company, one copy should be sent to its principal executive offices and addressed to the attention of the President, or at such other address as the Company shall have furnished to the
Investors. 
 
Each such notice or other
communication shall for all purposes of this Agreement be treated as effective or having been given when delivered if delivered personally, or, if sent by mail, at the earlier of its receipt or 72 hours after the same has been deposited in a
regularly maintained receptacle for the deposit of the United States mail, addressed and mailed as aforesaid, or, if by telex or telecopy pursuant to the above, when received. 
 
4 Facsimile Signatures. Any signature page delivered by a fax machine or telecopy machine shall
be binding to the same extent as an original signature page, with regard to any agreement subject to the terms hereof or any amendment thereto. Any party who delivers such a signature page agrees to later deliver an original counterpart to any party
which requests it. 
 
5 Counterparts.
This Agreement may be executed in any number of counterparts, each of which shall be enforceable against the parties actually executing such counterparts and all of which together shall constitute one instrument. 
 
6 Titles and Subtitles. The titles and subtitles
used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement. 
 
7 Termination. Except as otherwise provided herein, this Agreement shall terminate on the tenth anniversary of the date
hereof. 
 
8 Waivers and Amendments.
With the written consent of the Company and the Holders holding at least a majority of the Registrable Securities, any provision of this Agreement may be waived (either generally or in a particular instance, either retroactively or prospectively and
either for a specified period of time or indefinitely) or amended. Upon the effectuation of each such waiver or amendment, the Company shall promptly give written notice thereof to the Holders, if any, who have not previously received notice thereof
or consented thereto in writing. 
 
9
Successors and Assigns. Except as otherwise provided herein, the provisions hereof shall inure to the benefit of and be binding upon, the successors, assigns, heirs, executors and administrators of the parties hereto. 
 
10 Entire Agreement; Amendment. This Agreement
constitutes the full and entire understanding and agreement between the parties with regard to the subject hereof. 
 
11 Construction. Whenever the context so requires, the singular number includes the plural and vice versa, and a reference
to one gender includes the other gender or the neuter. 
 
12 Interpretation. The parties hereto acknowledge and agree that: (i) 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 (ii) the terms and provisions of this 
 

11 

Agreement shall be construed fairly as to all parties hereto and not in favor of or against any party,
regardless of which party was generally responsible for the preparation of this Agreement. 
 

12 

 
IN WITNESS
WHEREOF, the parties have executed this Registration Rights Agreement as of the date first above written. 
 

	  SYNTROLEUM CORPORATION

	
	  By:
	  	  /s/ Kenneth L. Agee

	  	  	  Name: Kenneth L. Agee

	  	  	

	  	  	  Title:    Chief Executive Officer

	  	  	

 

	  INVESTORS:

	
	  MICHAEL ZILKHA

	
	  /s/ Michael Zilkha

	  Michael Zilkha

 

	  SELIM K. ZILKHA TRUST

	
	  By:
	  	  /s/ Selim K. Zilkha

	  	  	  Name: Selim K. Zilkha
  Title:   Trustee

 
 
 

13EXHIBIT 10.16

                       SOFTWARE LICENSE, SOURCE CODE, AND
                    DERIVATIVE PRODUCT DISTRIBUTION AGREEMENT

                                           License Agreement No.  ______________

         This Software License, Source Code, and Derivative Product Distribution
Agreement (the "Agreement") is entered into this _27th day of November, 2002, by
and between M2, INC., a Florida corporation with its principal place of business
at 850  Trafalgar  Court,  Suite  100,  Maitland,  Florida  32751,  (hereinafter
referred to as "LICENSEE"  or "M2") and DIGITAL  COURIER  TECHNOLOGIES,  INC., a
Delaware  corporation  with its  principal  place of  business  at 348 East 6400
South,  Suite 220, Salt Lake City,  Utah 84107,  and all of its  affiliates  and
subsidiaries, (hereinafter collectively referred to as "DCTI" or "DCTi").

     WHEREAS, DCTI owns the Licensed Software (as defined below);

     WHEREAS, DCTI desires to License its software in the ways set  forth below;
and

         WHEREAS,  LICENSEE  desires to  acquire a license  to use the  Licensed
Software subject to the terms and conditions set forth below.

     NOW,  THEREFORE,  for good and  valuable  consideration,  the  receipt  and
sufficiency of which are hereby acknowledged, the parties agree as follows:

1. DEFINITIONS

        1.1   "Documentation"  shall mean such  manuals and other  standard  end
              user  and  technical  documentation  that  DCTI  ordinarily  makes
              available  with a  program,  including  amendments  and  revisions
              thereto.

        1.2   "Licensed  Materials"  means one copy of the Source Code, one copy
              of the executable code (i.e. object code) of the Licensed Software
              and a copy of all Documentation relating to the Licensed Software,
              including,  without  limitation,  textual and/or graphic material,
              perceivable  directly by humans and/or with the aid of a device or
              a machine, and all of the documentation reasonably necessary for a
              user to operate the Licensed Software.

        1.3   "Licensed  Software"  means the  collection  of computer  programs
              described in the attached Exhibit A.

                                       1
<PAGE>

        1.4   "Source Code" means software in human-readable form, including but
              not limited to, programmers' comments,  data files and structures,
              macros,  object  libraries,  programming  tools  not  commercially
              available,   technical   specifications,   flowcharts   and  logic
              diagrams,  schematics,  annotations and  documentation  reasonably
              required  or  necessary  to  enable  an  independent  third  party
              programmer with reasonable programming skills to create,  operate,
              maintain,  modify and improve the software without the help of any
              other  person.  Data  files  containing  Source  Code  must  be in
              standard ASCII format and be readable by a text editor.

        1.5   "Transaction"  shall mean that function by which a single  message
              exchange is processed,  facilitated and/or completed by or through
              the licensed material.

2. DELIVERY AND ACCEPTANCE

        2.1   Delivery.   DCTI  agrees  to  deliver  to  LICENSEE  the  Licensed
              Materials  listed on Exhibit A within three (3)  business  days of
              the execution of this Agreement.

        2.2   Acceptance.  LICENSEE  shall  have  five (5) days from the date of
              receipt  of  the  Licensed  Materials  to  evaluate  the  Licensed
              Materials for substantial  conformity with the  specifications set
              forth on Exhibit  A, and either  accept,  return  for  rework,  or
              reject the Licensed Materials.  LICENSEE shall be entitled to test
              and  evaluate the  Licensed  Materials by whatever  means it deems
              appropriate   consistent   with  DCTI's  rights  in  the  Licensed
              Materials,  and  DCTI  hereby  grants  to  LICENSEE  any  licenses
              necessary  for  LICENSEE  to perform its  evaluation.  If LICENSEE
              returns Licensed Materials for rework,  DCTI agrees to correct the
              listed defects and resubmit the Licensed  Materials for evaluation
              by  LICENSEE  under the same  acceptance  procedure.  In the event
              LICENSEE  rejects  the  Licensed  Materials,  it shall  give  DCTI
              written   notice  of   rejection   stating  the  reasons  for  its
              unacceptability.  No  payment  shall be  payable to DCTI until the
              Licensed  Materials  have been  accepted by LICENSEE in writing or
              LICENSEE fails to reject the Licensed  Materials within such 5 day
              period at which time the Licensed  Materials will have been deemed
              accepted.

3. RIGHTS GRANTED AND RESTRICTIONS

         License Grant. DCTI hereby grants to LICENSEE  a fully-paid, perpetual,
         non-exclusive,   irrevocable,   transferable,   assignable,   worldwide
         license,  with limited  rights to  sublicense  as more fully set out in
         paragraph  3.1 of  this  Agreement  (the  "License")  to  the  Licensed
         Materials  for the uses set forth in Section  1.2.  This License has no
         limitation as to seats or site.

         3.1  Uses.  LICENSEE  has the  right  to use for any and all  purposes,
              market,  transfer,  assign,  and/or resell the Licensed  Materials
              under  its own  name or  that  of DCTI , at its  sole  discretion.
              LICENSEE may further  sublicense  any and all  licensed  materials
              that  LICENSEE  or its  agents  have  enhanced  or from  which the

                                       2
<PAGE>

              LICENSEE has made derivative products,  programs,  applications or
              code.  The  License  granted  herein  shall  be for the use of the
              Licensed  Materials by LICENSEE in  connection  with any or all of
              its  business  operations,   including  without  limitation,   the
              operations  of its  affiliates,  wherever  the same may be located
              from time to time and specifically  includes the right to install,
              execute,  use,  copy,  test,  display,  distribute and perform the
              Licensed  Software.  The License granted herein shall additionally
              include the right to make back-up copies of the Licensed Materials
              for  back-up  purposes  and the  right  to  create  derivative  or
              compatible works of the Licensed  Materials,  as well as the right
              to  sub-license,  resell,  transfer,  and/or  assign the  Licensed
              Materials and  derivative  works thereof to LICENSEE's  customers,
              under DCTI or LICENSEE's name.

        3.2   Trademarks. Neither party is granted any right or interest to the,
              trademarks  or trade  names  (collectively,  "Marks") of the other
              party.  Neither  party may use the other's Marks without the prior
              written consent of the other party. Notwithstanding the foregoing,
              DCTI agrees that LICENSEE may, in its discretion,  use DCTI's name
              and the Licensed  Software name in identification of the existence
              of the Licensed Software as bundled with a LICENSEE Product.

        3.3   Licensed Software. LICENSEE shall not be an owner of any copies of
              the Licensed  Software,  but, rather, is licensed pursuant to this
              Agreement to use such  copies.  LICENSEE  acknowledges  and agrees
              that, as between LICENSEE and DCTI, all right, title, and interest
              in the Licensed Software and any part thereof, including,  without
              limitation,  all rights to patent, copyright,  trademark and trade
              secret rights and all other  intellectual  property rights therein
              and thereto,  and all copies thereof, in whatever form,  including
              any written  documentation and all other material  describing such
              Licensed Software, shall at all times remain solely with DCTI.

         3.4  LICENSEE  Modification.  LICENSEE shall have the right, in its own
              discretion,  to independently modify the Licensed Software for its
              own purposes and use, through the services of its own employees or
              of  independent  contractors,  provided  that  same  agree  not to
              disclose or  distribute  any part of the Licensed  Software to any
              other person or entity or  otherwise  violate  DCTI's  proprietary
              rights therein.  LICENSEE SHALL BE THE OWNER OF ANY MODIFICATIONS,
              DERIVATIVE OR COMPATIBLE  WORKS.  DCTI shall not  incorporate  any
              such  modifications  into its software for  distribution  to third
              parties without the prior written consent of the LICENSEE.

4. PAYMENT

         Payment.  In  consideration  for the  rights  and  licenses  granted to
         LICENSEE  under  this  Agreement,  LICENSEE  shall pay DCTI a  one-time
         license  fee of Fifty  Thousand  Dollars  ($50,000.00)  within five (5)
         business days of its acceptance of the Licensed Materials in accordance
         with Section.

                                       3
<PAGE>

        4.1   Royalty.  For a period  of two  years  from  commencement  of this
              Agreement,  LICENSEE shall pay DCTI 1/10 of a cent ($.001) for all
              accounts   receivable  revenue  generated  by  actual  Transaction
              processing as defined herein.

        4.2   Taxes. DCTI shall be solely  responsible for taxes on amounts paid
              to DCTI by LICENSEE under this Agreement,  including all state and
              local use, sales, property (ad valorem) and similar taxes.

        4.3   Right of First  Refusal.  In the  event  that  DCTI  endeavors  to
              transfer  its  title to the  Licensed  Materials,  either by sale,
              gift,   private  corporate   restructuring,   or  in  a  voluntary
              Bankruptcy  proceeding,  DCTI will first give LICENSEE  notice and
              opportunity to purchase ownership rights in the Licensed Materials
              prior to obligating DCTI to the transfer of ownership  rights to a
              third party.

         4.4  Right of  Notice.  DCTI  hereby  agrees to give  LICENSEE  15 days
              notice  prior  to  conveying  to any  third  party  the  right  to
              sub-license or resell the Licensed Materials.

5. WARRANTY AND INDEMNIFICATION

        5.1   General Warranty. DCTI warrants and represents as follows:

              (a) The Licensed Materials do not contain any unauthorized  codes,
              such as a virus, Trojan Horse, or other software routines designed
              to provide  unauthorized  access,  to disable,  erase or otherwise
              harm software, hardware or data, nor does it contain any self-help
              code,  such as any back door, time bomb, drop dead device or other
              software   routine   designed   to  disable  a  computer   program
              automatically  with  passage  of time or under  the  control  of a
              person other than the LICENSEE;

              (b)  DCTI  has  all  right,  title,  ownership  and  other  rights
              necessary to grant the License to LICENSEE,  free and clear of all
              liens, security interests, pledges, encumbrances or charges of any
              kind;

              (c) The use of the Licensed  Materials  by LICENSEE in  accordance
              with this  Agreement will not violate or infringe upon any patent,
              copyright,  trade secret or other intellectual  property rights of
              other persons or entities; and

              (d) The  Licensed  Software  will operate in  accordance  with and
              substantially  conform  to the  specifications  set  forth  in the
              Documentation and the  specifications set forth on Exhibit A or as
              subsequently modified by mutual agreement of the parties.

                                       4
<PAGE>

        5.2   Indemnification.  DCTI shall  defend,  indemnify and hold harmless
              the LICENSEE, its corporate affiliates,  and any employee or agent
              thereof  (each of the  foregoing  being  hereinafter  referred  to
              individually as the "Indemnified  Party") against all liability to
              third  parties  arising  from (a) the  negligence  or  willful  or
              intentional  misconduct or omission of the DCTI or its agents,  or
              (b) the License granted herein to LICENSEE for use of the Licensed
              Materials,  including  without  limitation,  the  violation of any
              third party's trade secrets,  proprietary information,  trademark,
              copyright or patent rights in connection with the licensing of the
              Licensed Materials.  DCTI may, at its option, conduct a defense in
              such third party action  arising as described  herein and LICENSEE
              shall   cooperate   in  good   faith  with  such   defense.   This
              indemnification  is limited to the Licensed Software  delivered to
              the LICENSEE or as modified by DCTI and does not cover third party
              claims  arising from  modifications  to the Licensed  Software not
              authorized by DCTI. If a third party claim causes LICENSEE's quiet
              enjoyment  and  use  of the  Licensed  Materials  to be  seriously
              endangered or disrupted, DCTI shall:

              (a) replace the Licensed Materials, without any additional charge,
              with a  compatible,  functionally  equivalent  and  non-infringing
              product;

              (b) modify the Licensed Materials to avoid the infringement; or

              (c)  obtain a license  for the  LICENSEE  to  continue  to use the
              Licensed  Materials  and pay for any  additional  fee required for
              such license.

6. MAINTENANCE.

         During the term of this Agreement,  DCTI shall, at no additional  cost,
         (a) provide to LICENSEE all upgrades, modifications and enhancements to
         the Licensed  Materials created by DCTI, and (b) correct any defects or
         malfunctions in the Licensed Materials. For purposes of this Section 6,
         "Upgrade" shall mean any correction of any defect or malfunction in the
         Licensed  Materials,  "Modification"  shall  mean  any  change  to  the
         Licensed  Materials which improves the efficiency and  effectiveness of
         the basic program functions,  but which do not change such functions or
         create  one or more new  functions,  and  "Enhancement"  shall mean any
         changes  in the  Licensed  Materials  that  modify  the  basic  program
         functions  of the Licensed  Materials or add one or more new ones.  All
         such   Upgrades,   Modifications,   Enhancements,   new   releases  and
         corrections shall constitute Licensed Materials.

7. LIMITED LIABILITY

         EXCEPT FOR ANY DAMAGES CAUSED BY WILLFUL OR  INTENTIONAL  MISCONDUCT OR
         OMISSION,  OR GROSS  NEGLIGENCE,  NEITHER  DCTI NOR  LICENSEE,  NOR ANY

                                       5
<PAGE>

         PERSON ACTING ON ITS BEHALF (AS AN EMPLOYEE,  OFFICER,  DIRECTOR, AGENT
         OR   OTHERWISE),   SHALL   HAVE  ANY   LIABILITY   HEREUNDER   FOR  ANY
         CONSEQUENTIAL,  INCIDENTAL, SPECIAL OR PUNITIVE DAMAGES, OR ANY DAMAGES
         BASED  ON  THIRD  PARTY  CLAIMS  RELATING  TO THE  USE OF THE  LICENSED
         MATERIALS,  INCLUDING  LOSS OF PROFITS  ARISING OUT OF THIS  AGREEMENT,
         WHETHER ANY SUCH CLAIM IS BASED UPON CONTRACT OR TORT.

8. CONFIDENTIAL INFORMATION

        8.1   Licensed Materials.  All Licensed Software in object code form and
              related  Documentation  provided to LICENSEE  hereunder are deemed
              non-confidential, and LICENSEE is not under any obligation to DCTI
              to restrict  access to or use of such Licensed  Software in object
              code form or related  Documentation,  provided LICENSEE  otherwise
              complies with the terms of this Agreement.

        8.2   Confidential  Information.  During  the  term of  this  Agreement,
              either party may receive or have access to technical  information,
              as  well  as  information  about  product  plans  and  strategies,
              promotions,   customers   and   related   non-technical   business
              information   which  the   disclosing   party   considers   to  be
              confidential   ("Confidential   Information").    In   the   event
              Confidential  Information is disclosed, the disclosing party shall
              (i)  mark  the   information  as   confidential  at  the  time  of
              disclosure,   or  (ii)  if  disclosed  orally  but  stated  to  be
              confidential,   designate  such  information  as  confidential  in
              writing by summarizing the Confidential  Information disclosed and
              sending  such summary to the  receiving  party within a reasonable
              period of time after  such oral  disclosure.  Notwithstanding  any
              provision  to the  contrary,  all source  code  provided by either
              party to the other,  and all business  information with respect to
              any  unpublished or future DCTI or LICENSEE  products,  are deemed
              Confidential Information for the purposes of this Section 8.

        8.3   Nondisclosure.   Confidential  Information  may  be  used  by  the
              receiving  party  only in a manner  consistent  with such  party's
              rights and obligations  under this Agreement.  The receiving party
              shall protect the Confidential Information of the disclosing party
              by using the same  degree of care (but not less than a  reasonable
              degree of care) to prevent the unauthorized use,  dissemination or
              publication  of such  Confidential  Information,  as the receiving
              party uses to protect  its own  Confidential  Information  of like
              nature.  The  receiving  party's  obligation  under this Section 8
              shall  be for a  period  of  three  (3)  years  after  the date of
              disclosure  except for either  party's  source code which shall be
              held  confidential in perpetuity.  The foregoing  obligation shall
              not apply to any  information  that is: (i)  already  known by the
              receiving  party  prior to  disclosure;  (ii)  publicly  available
              through no fault of the receiving party; (iii) rightfully received
              from a  third  party  without  a  duty  of  confidentiality;  (iv)
              disclosed by the disclosing  party to a third party without a duty

                                       6
<PAGE>

              of   confidentiality   on  such  third  party;  (v)  independently
              developed by the receiving  party prior to or  independent  of the
              disclosure;  (vi)  disclosed  under  operation  of law;  or  (vii)
              disclosed by the receiving party with the disclosing party's prior
              written approval.

        8.4   Notification.  Each party  agrees to notify the other  promptly on
              the event of any breach of security  under  conditions in which it
              would appear that any  Confidential  Information was prejudiced or
              exposed to loss. Each party shall, upon request of the other, take
              all other  reasonable  steps  necessary to recover any compromised
              Confidential  Information disclosed to or placed in the possession
              of each  party by  virtue  of this  Agreement.  Each  party  shall
              individually bear the cost of taking any such steps.

        8.5   Remedies.  Each party  acknowledges  that any breach of any of its
              obligations  under this  section 8 is likely to cause or  threaten
              irreparable harm to the other, and accordingly, agree that in such
              event,  the aggrieved party shall be entitled to equitable  relief
              to  protect  its  interest  therein,  which  will  be  limited  to
              preliminary and permanent  injunctive relief for both LICENSEE and
              DCTI but will not limit the aggrieved party from seeking  expanded
              remedies from other unrelated third parties.

9. OTHER PROVISIONS

        9.1   Authorization.  This  Agreement  has been duly  authorized  by all
              necessary  corporate  action  on the part of the each  party.  The
              Agreement  constitutes  the  parties'  valid and  legally  binding
              obligation,  enforceable  against it in accordance with its terms.
              DCTI has the full corporate power and authority to enter into this
              Agreement.  LICENSEE has the full corporate power and authority to
              enter into this Agreement.

        9.2   Publicity.  Each party  agrees not to  publicize  or disclose  the
              existence or terms of this Agreement to any third party (except as
              allowed in this  agreement in Section 3) without the prior written
              consent of the other except as required by law. In particular,  no
              press releases  shall be made without the written  consent of each
              party.

        9.3   Independent  Contractors.  The  relationship  of the parties under
              this  Agreement is that of  independent  contractors,  and neither
              party is an  employee,  agent,  partner or joint  venturer  of the
              other.

        9.4   Relationship  Managers.  Each party  designates  the person(s) set
              forth on Exhibit B as the  primary  contact(s)  of each party with
              respect to this Agreement,  which person(s) may be redesignated by
              a party by written notice to the other.

                                       7
<PAGE>

Disputes and Governing Law.

         (a) Dispute Resolution.  In the event of a dispute between the parties,
the issue will first be escalated to the individuals identified on Exhibit B. If
these individuals cannot resolve the dispute within two (2) weeks of notice, the
issue will be escalated  to the legal  counsel of each party and/or the parties'
principals.  Either party may initiate dispute resolution by notice to the other
party.  Such notice will be without  prejudice to the invoking party's rights to
any  other  remedy  permitted  hereunder.  The  parties  will  use  commercially
reasonable  efforts to arrange meetings or telephone  conferences,  as needed at
mutually  convenient times and places,  to facilitate  negotiations  between the
parties.  In the event that the parties  fail or are unable to resolve a dispute
between them after  exhausting  the  escalation  process set forth  above,  then
either  party may  declare  that a deadlock  exists.  In the event of a deadlock
after  undertaking the forgoing steps to resolve the dispute in good faith,  the
parties  shall  attempt  to  resolve  the  dispute  through  mediation  prior to
instituting litigation or other adversary proceeding.

         (b) Mediation.  A party shall  initiate a mediation by serving  written
notice on the other party by overnight mail. The parties may select any mediator
mutually  agreeable to them.  If the parties  cannot agree on a mediator  within
fifteen (15) days,  they will,  within five (5) days  thereafter  submit a joint
request for mediation to the Orlando, Florida office of the American Arbitration
Association  ("AAA") and request the AAA to select an appropriate  mediator with
experience  in  resolving  software  development  and  licensing  disputes.  The
mediation  session  shall occur within  thirty (30) days of the selection of the
mediator  unless the parties  mutually  agree to extend this time,  and shall be
scheduled for not less than one day. Each party agrees to send a  representative
with  full  settlement  authority  to the  mediation.  The  mediation  shall  be
conducted  exclusively in Tampa,  Florida or within 100 miles  thereout,  unless
otherwise  agreed by the parties.  The parties  agree to hold the content of the
mediation in confidence and further agree that the mediator is disqualified as a
litigation  witness for any party to the  mediation.  The parties  further agree
that the mediation shall be considered to be a form of settlement  negotiations,
the content of which shall not be  admissible  as evidence of  liability  in any
judicial  proceeding.  Each party shall bear its own expenses and an equal share
of the  expenses of the mediator  and,  where  applicable,  the AAA. The parties
agree that any refusal to mediate under this section is a breach of contract for
which  damages may be recovered  in  litigation  between the parties.  Except as
provided  below,  if  the  party  who  ultimately  prevails  in  any  litigation
institutes a court action or other adversary proceeding without first attempting
mediation as required  hereby,  SUCH  PREVAILING  PARTY SHALL NOT BE ENTITLED TO
ATTORNEYS'  FEES OR COSTS THAT MIGHT  OTHERWISE  BE  AVAILABLE  TO IT UNDER THIS
CONTRACT OR IN COURT ACTION.

         (c)  Litigation.  In the  event  a  dispute  is not  resolved  by  such
mediation,  the parties shall have the right to initiate a suit, action or other
adversary  proceeding  before  the  appropriate  court  exclusively  within  the
jurisdiction  of the state and federal  courts in the state of  Florida.  In the
event of such suit, action or other adversary proceeding, the Parties hereto (a)
submit to the exclusive personal jurisdiction of the federal and state courts in
the State of Florida,  County of Orange and (b)  expressly  waive any right they

                                       8
<PAGE>

may have to a jury trial and agree that any such proceeding  shall be tried by a
judge  without a jury.  All  defenses  based on  passage of time shall be tolled
pending mediation, unless otherwise prohibited by law.

         (d)  Applicable  Law. This Agreement  shall be governed by,  construed,
enforced and interpreted in accordance with the internal substantive laws of the
State of Florida.

         (e) Interim  Relief.  Nothing in this  Section  shall be  construed  to
preclude any party from seeking  injunctive or other provisional relief in order
to protect its rights pending  mediation,  provided however that such relief may
only be sought within the  appropriate  judicial forum as provided in Subsection
(c) above.  In the event a party seeks interim relief  without first  attempting
mediation,  such party shall not forfeit its entitlement to legal fees and costs
that would otherwise be available to it only if such party  initiates  mediation
within fifteen (15) days after  initiating the action seeking interim relief.  A
request  to a court  for  interim  relief  shall  not be  deemed a waiver of the
obligation to mediate.

        9.5   Notice.  Any notice or other  communication  required or otherwise
              provided for under this Agreement shall be in writing and shall be
              deemed given when  delivered by hand or by courier or express mail
              or by registered or certified  United States mail,  return receipt
              requested,   postage  prepaid,  or  by  facsimile  if  receipt  is
              acknowledged (except that a notice of termination or default shall
              not  be  sent  by  facsimile)   and  shall  be  addressed  to  the
              appropriate relationship manager as set forth on Exhibit B.

        9.6   Assignment.  This Agreement shall be binding upon and inure to the
              benefit of the  parties  hereto and their  respective  affiliates,
              successors  and  permitted  assigns.  DCTI  may  not  assign  this
              Agreement or its  interest or  obligations  hereunder  without the
              prior consent of LICENSEE.  LICENSEE may assign this  Agreement or
              its  interest or  obligations  hereunder  without  DCTI's  consent
              including,  but not  limited  to, in  connection  with a change of
              control of LICENSEE,  a merger of LICENSEE with another entity, or
              the sale of all or substantially all of the assets of LICENSEE.

        9.7   Severability.  The  terms of this  Agreement  shall be  applicable
              severally to each Licensed Software program, if more than one, and
              any dispute  affecting  either party's rights or obligations as to
              one or more  Licensed  Software  program(s)  shall not  affect the
              rights  granted  hereunder  as  to  any  other  Licensed  Software
              program(s).  If any  provision  of  this  Agreement  is held to be
              invalid or  unenforceable  by a court of  competent  jurisdiction,
              then the remaining  provisions  will  nevertheless  remain in full
              force and effect,  and the parties will  negotiate in good faith a
              substitute,  valid and  enforceable  provision  which most  nearly
              effects the parties' intent in entering into this Agreement.

                                       9
<PAGE>

        9.8   Headings. The captions and headings used in this Agreement are for
              convenience in reference  only, and are not to be construed in any
              way as  terms  or be  used to  interpret  the  provisions  of this
              Agreement.

        9.9   Distribution  Obligation.  LICENSEE  may  in its  sole  discretion
              decide to distribute or not  distribute  the Licensed  Software or
              derivative products created from the Licensed Software as it deems
              appropriate.

        9.10  Relationship of Parties.  In performing under this Agreement,  the
              parties are acting as independent  contractors  and this Agreement
              shall not be  construed as imposing  liability  upon one party for
              the acts or omissions  of the other or as  providing  either party
              with  the  right,  power  or  authority  to  impose  any  duty  or
              obligation on the other except as expressly provided herein.

        9.11  Modifications.  This  Agreement  may be modified only by a writing
              signed by an authorized representative of each party.

        9.12  Waiver.  Neither  party's  failure to  exercise  any of its rights
              hereunder shall  constitute or be deemed a waiver or forfeiture of
              any such rights.

        9.13  Force Majeure.  Nonperformance  of either party will be excused to
              the extent  that  performance  is rendered  impossible  by strike,
              fire, flood,  governmental acts or orders or restrictions or other
              similar  reason where failure to perform is beyond the control and
              not caused by the negligence of the non performing party, provided
              that  the  non  performing  party  gives  prompt  notice  of  such
              conditions to the other party and makes all reasonable  efforts to
              perform.

        9.14  Entire  Agreement.  This document  represents the entire agreement
              between  the  parties  as to the  matters  set  forth  herein  and
              supersedes    all   prior    discussions,    representations    or
              understandings between them.

        9.15  Exhibits.  Each of the Exhibits  referred to in this  Agreement is
              incorporated in full in this Agreement wherever reference to it is
              made.

        9.16  Counterparts. This Agreement may be executed in counterparts, each
              of which shall be deemed an original.

        9.17  Items  8.1  through  8.5  of  this Agreement   shall  survive  the
              Agreement.

                                       10
<PAGE>

         IN WITNESS WHEREOF, this Agreement has been executed below on behalf of
each corporation's duly authorized officer as of the date first set forth above.

M2, INC                                         DIGITAL COURIER
                                                    TECHNOLOGIES, INC

By:  /s/ Joseph W. Adams                        By: /s/ Don Marshall
    -------------------------                       ---------------------

Print Name: Joseph W. Adams                     Print Name: Don Marshall
Title: President and CEO                        Title:  CEO

                                       11
<PAGE>

                                    EXHIBIT A

         iGuard - Fraud monitor and  management  systems for acquiring  merchant
         transaction processing. Includes a Transaction Processing Rules Engine,
         Fraud Alert Case Engine,  and Fraud Alert Case Work Flow Queue  manager
         system.

         netClearing - An Internet  Payment Gateway process (IPG).  Includes the
         i24Admin  merchant  administration  system, a merchant-agent  portfolio
         reporting  system (PRS),  and a merchant  reporting and  administrative
         system (MRS).

         SecureCharge - A transaction  authorization  and  settlement  reporting
         system,   including  a  batch-based   transaction   authorization   and
         settlement system (SecureBatch).

         ePos - A consumer-to-merchant payments processing module.

         eBatch - A merchant  payments module  permitting batch  submissions for
         transaction authorization, capture, settlement and reporting.

         SecureCart - An internet  shopping cart application  including  various
         security provisions

         SecureTrans - Used in conjunction with SecureCart, this module provides
         for processing secure payments transactions.

         OFS - An order fulfillment  system which includes payments  processing,
         order management and tracking,  shipping reports and product back-order
         and tracking logic.

         SMS - A subscription management system which tracks orders and acquires
         payments for products or services on a recurring billing basis.

                                       1
<PAGE>

                                      DCTI
                               e-payment services

DCTi netClearing and iGuard

                                   Version 1.0

Table of Contents

Payment Processing with DCTI................................................3

The SecureCharge(R)and SecureBatch(R)Payment Plug-In........................3

ePOS........................................................................3

eBATCH......................................................................3

iGuard Fraud Control........................................................3

Merchant Tools and Reports..................................................4

NetClearing Payment Services for Financial Institutions.....................4

Internet Payment Gateway....................................................4

Risk Management.............................................................5

Tools and Reports...........................................................5

Risk Management and Internet Fraud Control..................................6

Credit Card Clearing Process................................................8

Technology..................................................................9

Performance and attributes..................................................9

                                       2
<PAGE>

Payment Processing with DCTI
----------------------------

DCTI offers credit-card processing services for Visa(R), MasterCard(R), American
Express(R),  Discover(R),  Diners Club(R),  and can support all other major card
schemas.  Payment  features of the DCTI service  include  authentication,  fraud
control, authorization, settlement handling, and real-time reporting.

The SecureCharge(R) and SecureBatch(R) Payment Plug-In
------------------------------------------------------

Designed for ease of use, DCTI's  SecureCharge(R)  and  SecureBatch(R)  "Payment
Plug-in"  software  delivers  transaction  processing  capabilities  in a small,
easy-to-install, thin-client format. Because the Payment Plug-ins are built with
technology  based on open  standards,  clients can quickly and easily  integrate
them into a wide range of e-commerce server platforms,  software  packages,  and
financial systems  infrastructure.  Once installed,  these lightweight  software
libraries  enable   application   programming   interfaces  (API)  that  can  be
implemented  in a secure  yet  simple  manner.  Once  implemented,  the  payment
plug-ins handle all security  protocols,  communication  protocols,  and message
formatting.  The payment plugins securely transmit  transaction data to the DCTI
Internet Payment Gateway,  discussed below. The gateway examines the transaction
for  potential  fraudulent  activity,  logs the  transaction  in a database  for
reporting, and routes the transaction to the card networks for authorization.

The  plug-ins are  available  in a variety of  languages on all major  operating
systems and are provided in a concise SDK (Software  Development  Kit). The DCTI
SecureCharge  and SecureBatch SDK contain the plug-in  software  libraries,  API
documentation,  software  languages  and sample  code for  implemention  in CGI,
ISAPI,  NSAPI,  COM/Active-X,  Visual Basic, C/C++, Java, and Perl for both Unix
and Windows platforms.

ePOS
----

DCTI's ePOS(R) is an easy-to-use,  Web-based point-of-sale terminal application.
Merchants  can use ePOS from a desktop  computer to submit credit card and order
information to the DCTI Internet  Payment  Gateway,  discussed  below.  With its
Web-based   functionality,   ePOS  provides  flexibility  for  multiple  station
processing  facilities such as call centers and customer service  centers.  Most
importantly,  because ePOS accesses DCTI's Payment Plug-in,  transactions can be
processed with the same rapid response times, Web-based reporting, and access to
important fraud protection service.

eBATCH
------

DCTI's eBATCH(R) is an easy-to-use Web-based  point-of-sale terminal application
designed  for  multi-transaction  processing.  Merchants  can use eBATCH  from a
desktop  computer  to  submit  files  of  credit  card  transactions  and  order
information  to  the  DCTI  Internet   Payment   Gateway.   With  its  Web-based
functionality,  eBATCH  provides  flexibility  for multiple  station  processing
facilities such as call centers and customer service centers to upload recurring
transactions. Most importantly,  because eBATCH accesses DCTI's Internet Payment
Gateway,  transactions  can be  processed  with the same rapid  response  times,
Web-based  reporting,  and access to important fraud protection  services as are
available for other credit card transactions.

iGuard Fraud Control
--------------------

All transactions passed to DCTI's Internet Payment Gateway are guarded by DCTI's
iGuard Payment Protection  System, a suite of fraud-detection  software routines
and  applications.   The  iGuard  System  constantly   monitors  for  suspicious
transactions  and data entry  errors.  Merchants  are alerted to evidence of the
misuse of card  information,  detected by such  metrics as the  verification  of
addresses, velocity of purchases, and bad card histories.

                                       3
<PAGE>

Merchant Tools and Reports
--------------------------

DCTI offers its merchant clients 24/7 access to account information on a secure,
password-protected  Web site  called  MRS(R)  (Merchant  Reporting  Suite).  The
security sub system of MRS is a tool and resource rights based system made up of
users and  groups.  With the  appropriate  login and  password  information,  an
authorized  user can access this Web site via a desktop  computer with and a web
browser.  Because  DCTI's  system  captures  and  displays  transaction  data in
real-time,  all reports provide an accurate reflection of account activity.  The
primary  categories of information and  functionality  available to the users of
the MRS(R) system include:

        o     My Account
                o    Account Profiles
                o    User and Group Security Sub-System Management
                o    Processing Profiles
        o    Account Activity Reports
                o    Transaction Summaries
                o    Detailed Transaction Reports
                o    Account Velocity Reporting
                o    Advanced Ad Hoc Transaction Searches
                o    Customer Risk and Valuation Tools
        o    Reconciliation Reports
                o    Chargeback and Exceptions Management
                o    Account Ledgers
        o    EPOS
        o    eBATCH
        o    Secure Electronic Document Delivery System
        o    Integrated System News
        o    Extensive Online Help

NetClearing Payment Services for Financial Institutions

DCTI's payment services for financial institutions provide an outsource solution
for electronic  payment services and merchant  portfolio  management  tools. The
payment services software suite is called PRS(R) (Portfolio Reporting Suite) and
includes  a  white  labeled   netClearing   Internet  Payment  Gateway,   direct
connections  to  credit  card  networks,  and an  extensive  array of  portfolio
management  tools that  provide  reliable  transaction  processing  services for
institutions with an existing merchant acquiring program.  With DCTI's Web-based
portfolio management tools,  financial institutions can better control the level
of risk associated with their portfolio,  a merchant category,  or an individual
merchant.

Internet Payment Gateway
------------------------

The Internet Payment Gateway is a term used to describe the collection of DCTI's
risk management,  reporting, and merchant account management tools that interact
directly  with  legacy  financial  and  banking  networks,   operating  systems,
acquiring  gateways,  and  credit-card  networks.  The gateway is comprised of a
commerce  server  located at one DCTI's data centers in Salt Lake City,  Utah or
Clearwater,  Florida, a transaction database,  and fraud screening software that
seamlessly integrate into existing systems.

Integrating  a portfolio  of  merchants  with the  Internet  Payment  Gateway is
straightforward  and  efficient.  Online account  management  tools come with an
easy-to-use  administration  interface  that helps users perform  functions that
include adding and updating merchants, accessing reports, and monitoring fraud.

                                       4
<PAGE>

Risk Management
---------------

Both merchants and financial  institutions are protected by DCTI's iGuard matrix
of fraud detection analysis and software. Through iGuard, an individual merchant
or an entire  merchant  portfolio  can be monitored for  potentially  fraudulent
credit-card activity and data entry errors.

The risk management  software alerts  financial  institutions to evidence of the
misuse of card information, detected by such metrics as the use of a compromised
Bank   Identification   Number  (a  "BIN"),   unusual   velocity  or  volume  of
transactions,   or  the  use  of  a  compromised  card  number.   Fraud  control
administrators  (such as risk management officers) can use DCTI's secure PRS Web
site to manage their merchant portfolio and to set fraud detection limits with a
graphical user interface.

Tools and Reports
-----------------

DCTI offers real-time  activity  reports and portfolio  management tools through
the secure  password-protected PRS Web site. The security sub system of PRS is a
tool and resource  rights based system made up of users and groups.  Clients can
log-on to the secure Web site to view and react to  transactions  as they occur.
All reports are generated from the live transaction database. Custom reports are
dynamically  generated  based  on any of 16  user  selected  parameters  such as
transaction number, cardholder, or BIN.

Because DCTI has direct  access to the card  networks the Company can record and
display  transaction  activity in real-time.  Reporting  functions  available to
financial institution clients include:

o    Portfolio Analysis
o    General Overview
o    Settlement Analysis
o    Volume Analysis
o    Per Ticket Analysis
o    Merchant Activity
o    Detailed Transaction Reports
o    Transaction Summary Reports
o    Deposit Baseline Reviews
o    Merchant Velocity
o    Violation Review
o    Extensive Searching Capabilities
o    Ad Hoc Transaction Searches
o    Card Holder Name Searches
o    Credit Card Number Searches
o    Bin Searches
o    Fraud and Reporting
o    Card Holder Risk and Valuation Analysis
o    By Portfolio or Merchant
o    Stolen Card Activity
o    Captured Transaction Report
o    iGuard Fraud Profile Administration
o    iGuard Fraud Case Management Suite
o    iGuard Fraud Alert Engine
o    Reconciliation Systems
o    Settlement Report Management
o    Merchant Ledger Management
o    Adjustment Management

                                       5
<PAGE>

o    Chargeback and Exceptions Management
o    Merchant Management
o    Merchant Account Management
o    Processing Profile Management
o    Security Sub System Controls
o    User and Group Management
o    Tool and Resource Management

Risk Management and Internet Fraud Control
------------------------------------------

DCTI's  iGuard  fraud-screening  software  suite helps  merchants  reduce  their
exposure to losses  generated by credit-card  fraud or data entry errors.  These
controls were developed specifically for e-commerce businesses,  which typically
experience  higher  rates of  credit-card  fraud.  The software  provides  added
protection  for  processing  banks and merchants by scrubbing  all  transactions
through various  fraud-detection  software  routines and databases.  Potentially
fraudulent  transactions  are detected and rejected  prior to  authorization  or
caught by a fraud alert engine and placed in a fraud case management system.

Following is a description of the primary fraud detection  routines DCTI can use
to scrub its clients' transactions:

         Checksum (Luhn check)
         A basic  check of how many digits are in a credit card number to ensure
         the customer's credit card is valid.

         Address Verification System ("AVS")
         Merchants can require  customers to submit the billing address of their
         credit  card.  The address  supplied by the customer is compared to the
         address on file with the issuing bank.  Merchants may choose the degree
         of match  (between  credit  card  number  and  address)  at  which  the
         transaction should be rejected.

         Difference between name and card number
         A credit  card  number  can be matched  to a  cardholder's  name for an
         existing  client.  A  mismatch  may  indicate  that  a  card  has  been
         compromised.

         Unusual frequency of purchases
         A merchant may record  information  about how frequently its product or
         service is  typically  purchased  with a particular  card  number.  The
         information is matched to actual  activity so merchants are notified of
         any significant variation from that mean.

         Unusual time of day for purchases
         A merchant may record typical transaction volumes for a particular time
         of day. The  information is matched to actual activity so merchants are
         notified of any significant variation from that mean.

         Compromised BIN and card database
         All  transactions  can be checked  against a  database  of BINs or card
         numbers that may have been compromised. These options include:

BIN screening
A BIN corresponds to a whole set of cards that a card issuing bank has released.
When the security of a BIN is  compromised,  chances for fraud  increase for all
cards  bearing  that BIN.  DCTI BIN  screens  help to flag  numbers  that may be
compromised.

                                       6
<PAGE>

Card  screening
Transactions  may be checked  against a database  of  invalid,  compromised  and
otherwise questionable credit card numbers.

Declined card screening
All  transactions  may be checked against a database of credit card numbers that
have declined charges recently.  This service saves clients  transaction fees by
declining the charge before it is submitted to the banking network.

         Summary activity
         Financial institutions can monitor activity of a single merchant or all
         merchants to track  sales,  credits and single  transactions.  Even the
         flow of money across  credit  cards can be reviewed to reveal  customer
         histories, purchasing habits, and money flow into or out of a card on a
         daily basis or on an historical timeline.

         Fraud reporting
         Financial  institutions  can survey and analyze  activity by BIN,  card
         number,  AVS  and  velocity  of  purchases.  Stolen  credit  cards  and
         questionable transactions present themselves on demand.

         BIN check
         Entire BINs can be reviewed for questionable activity and transactions.
         Customer  data  associated  with credit cards can be compared to locate
         unreported,  stolen or generated  card usage.  Related  merchants are a
         mouse click away from review of any suspicious transaction.

         Unusual activity
         DCTI also provides the ability to generate 90-day baseline data for any
         merchant  in a bank's  portfolio.  Side  reports  offer the  ability to
         locate  transactions  exceeding  the baseline by whatever  range a Bank
         determines is valid for that merchant. Excessive tickets, unusual daily
         deposits and more can be located quickly and reviewed 24/7.

         Review merchant and portfolio activity in real-time
         A  financial  institution's  entire  merchant  portfolio  or  a  single
         merchant  account can be viewed with DCTI's online charting tools.  The
         ability to graphically review a merchant's dollar and transaction count
         can be a simple indicator of merchant or consumer fraud. Peak hours can
         be located  within hourly  summaries  that appear in easy to understand
         bar charts.

                                       7
<PAGE>
1a Merchant Web Site

      Real-time reporting

1b Internet Payment
   Gateway

VISA MC AMEX Discover
Credit Card Network

3a Issuing Bank

2 Settlement Authority

3b Merchant Bank

Credit Card Clearing Process

To better understand DCTI's products and services, the following explanation and
diagram describe how the credit card clearing process works, and how the Company
simplifies  the process.  DCTI  generates  real-time  reporting and  transaction
management   services   through  a  secure  Web  server.   Information  such  as
authorization  notices and  settlement  data from the credit card  companies are
stored  in the DCTI  database,  which  generates  reports  on the  DCTI  account
activity  reporting sites. This means that merchants and financial  institutions
can  view  real-time  transaction  information  any  time  of the  day via a Web
browser.
         1    Authorization - When merchants are ready to begin accepting credit
              cards as  payment  for goods or  services  on their Web site (1a),
              they can  download  DCTI's  Payment  Plug-In  and  request  DCTI's
              assistance in establishing a merchant account. They are then ready
              to begin accepting payments.

     Once the customer  submits a credit card number on the merchant's Web site,
     the Payment  Plug-in  contacts the DCTI  Internet  Payment  Gateway (1b) to
     initiate fraud screening and then to request  authorization,  final sale or
     credit.

         2    If the transaction is not rejected for potential  fraud,  the DCTI
              Internet Payment Gateway then sends the transaction information to
              the credit card network (1c) for  authorization  or declination of
              the charge. This process is completed  in-house;  the Company does
              not use third party  acquiring  processors.  If the transaction is
              approved,  an authorization code is returned to the merchant's Web
              site and the  authorization is complete.  With DCTI's system,  the
              real-time authorization and capture process occurs within seconds.
              Batch requests are completed within ten to thirty minutes.

         3    Settlement - Once the product the customer  ordered is shipped (or
              downloaded),  the authorization  code is used to settle the amount
              of the transaction. DCTI's Internet Payment Gateway and the credit
              card network exchange  information  with the Settlement  Authority
              (2) to confirm the transaction.

                                       8
<PAGE>

         4    Funds transfer - Finally the Settlement Authority requests a funds
              transfer from the Issuing Bank (3a), which moves money through the
              Settlement  Authority into the  merchant's  bank (3b). The payment
              process is now complete.

Technology

We have  computer  facilities  in Salt Lake  City,  Utah to  support  all of our
products  and  services.  This data  center has  redundant  systems in place for
power,  telecommunications,  environmental  controls,  and fire suppression that
assure  consistently   optimal  performance  through   state-of-the-art   system
scalability and reliability. Features of the data center include:

         o        multiple  fiber  optic  OC-3's from  distinct  Tier 1 Internet
                  Service Providers  providing highly scalable  bandwidth,  load
                  balancing, fault tolerance, and data redundancy for e-commerce
                  and other Internet applications and customers;

         o        fully  redundant   network   architecture   composed  of  dual
                  switches,  routers,  firewalls,  and  load  balancing  devices
                  providing  internet  scalability,  load  balancing  and  fault
                  tolerance;

         o        a  range  of high  availability  multiprocessor  servers  from
                  various  manufacturers  including  Hewlett-Packard,  Dell, Sun
                  Microsystems  and Tandem  Computers  supporting  our  business
                  operations.  The super-scalar processing architecture of these
                  systems manages our service components including  simultaneous
                  payment  processing,  real-time report generation and merchant
                  accounting; and

         o        modern fire retardant  systems,  security systems,  quad-power
                  conditioners,  and industrial battery backup arrays as well as
                  an  8-day  backup  diesel   generator,   which  all  guarantee
                  continuous power and environmental control to insure seamless,
                  around-the-clock systems uptime and availability.

Performance and attributes

DCTI's technology gives online businesses the high-speed  performance they need.
Transactions  are  usually  complete in 1-2  seconds.  DCTi's  Internet  Payment
Gateway architecture provide fast, secure, and reliable performance.

o     Capacity

         The entire Internet  Payment  Gateway (IPG) is continually  tracked for
         availability. Once every minute, a test transaction is sent to Visa and
         MasterCard.  Also, all transaction  servers are equipped with Redundant
         Arrays of  Independent  Disks  (RAID) and  multiple  power  supplies to
         ensure network availability.

o     Security

         Firewall  systems exceed  industry  standards and work in tandem with a
         state of the art intrusion  detection system,  which uses algorithms to
         detect any hacking  attempt.  Connections and information are protected
         by standard RSA encryption to SSLv3.0.

o     Scalability

         DCTI's  infrastructure  is highly  scalable  for future  expansion  and
increased performance requirements.

                                       9
<PAGE>

                                    EXHIBIT B

                        NOTICE AND RELATIONSHIP MANAGERS

LICENSEE:                           DCTI:

Joseph W. Adams                         Don Marshall
M2, Inc.                                Digital Courier Technologies, Inc.
850 Trafalgar Court, Suite 100          348 East 6400 South, Suite 220
Maitland, Florida 32751                 Salt Lake City, Utah  84107

Notices with respect to the  administration of this Agreement shall be addressed
to the Business  Manager set forth above and cc: to LICENSEE's  legal department
at:

Andrea T. Tullo
Shumaker, Loop & Kendrick, LLP
101  East Kennedy Boulevard, Suite 2800
Tampa, FL  33602

                                       10
<PAGE>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00047-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00047-of-00352.parquet"}]]