Document:

exv10w26

Exhibit 10.26

*** Text Omitted and Filed Separately

Confidential Treatment Requested

Under 17 C.F.R. §§ 200.80(b)(4)

and 203.406

Agreement No. 4779

STANDARD EXCLUSIVE LICENSE AGREEMENT

WITH SUBLICENSING TERMS

TABLE OF CONTENTS

	 	 	 

	Section 1

	 	Definitions
	Section 2

	 	Grant
	Section 3

	 	Due Diligence
	Section 4

	 	Royalties
	Section 5

	 	Certain Warranties and Disclaimers of UFRF
	Section 6

	 	Record keeping
	Section 7

	 	Patent Prosecution
	Section 8

	 	Infringement and Invalidity Section 9 Term and Termination
	Section 10

	 	Assignability
	Section 11

	 	Dispute Resolution Procedures
	Section 12

	 	Product Liability; Conduct of Business
	Section 13

	 	Use of Names
	Section 14

	 	Miscellaneous
	Section 15

	 	Notices
	Section 16

	 	Contract Formation and Authority
	Section 17

	 	United States Government Interests
	Section 18

	 	Confidentiality
	Section 19

	 	University Rules and Regulations
	 
	Appendix A

	 	Development Plan
	Appendix B

	 	Development Report
	Appendix C

	 	UFRF Royalty Report
	Appendix D

	 	Milestones

This Agreement is made effective the 3rdday of October, 2005, (the “Effective Date”) by and between
the University of Florida Research Foundation, Inc. (hereinafter called “UFRF”), a nonstock,
nonprofit Florida corporation, and BioEnergy International LLC having an address at 99 Longwater
Circle, Norwell, MA 02061 (hereinafter called “Licensee”), a corporation organized and existing
under the laws of Delaware;

     WHEREAS, UFRF owns certain inventions that are described in the “Licensed Patents” defined
below, and UFRF is willing to grant a license to Licensee under any one or all of the Licensed
Patents and Licensee desires a license under all of them;

     NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth below,
the parties covenant and agree as follows:

			
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Section 1. Definitions

	 	1.1	 	“Licensed Patents” shall refer to and mean all of the following
UFRF intellectual property:

	 	1.1.1	 	the United States patent(s)/patent
application(s) entitled “Materials and Methods for the efficient
Production of Acetate and other Products,” filed in the United States
Patent Office on November 6th, 2002, assigned Registration
Number/Serial Number 60/424,372 and filed as US Utility Patent
Application on November 6th, 2003 and assigned Registration
Number/Serial Number 10/703,812 and all United States patents and
foreign patents and patent applications based on this U.S. application,
including PCT patent number PCT/US03/35878 filed on November 6th, 2003.
	 
	 	1.1.2	 	United States and foreign patents issued from
the applications listed in 1.1.1 above and from divisionals and
continuations of these applications, to the extent the claims are
directed to subject matter specifically described in the applications
listed in 1.1.1 above and are dominated by the claims of those patent
applications and patents issuing thereon or reissues thereof, and any
and all foreign patents and patent applications corresponding thereto,
all to the extent owned or controlled by the University of Florida.

	 	1.2	 	“Licensed Product” and “Licensed Process” shall mean:

	 	1.2.1	 	In the case of a Licensed Product, any product
or part thereof developed by or on behalf of Licensee that:

	 	(a)	 	is covered in whole or in part by
an issued, unexpired claim or a pending claim contained in the
Licensed Patents, in any country in which any product is made,
used or sold; or
	 
	 	(b)	 	is manufactured by using a
process which is covered in whole or in part by an issued,
unexpired claim or a pending claim contained in the Licensed
Patents, in any country in which any such process is used or in
which any such product is used or sold

	 	1.2.2	 	In the case of a Licensed Process:

	 	(a)	 	any process which is covered in
whole or in part by an issued, unexpired claim or a pending
claim contained in the Licensed Patents in any country in which
such process is practiced

			
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	 	1.3	 	“Improvements” shall mean any modification of an invention
described in the Licensed Patents which, if unlicensed, would infringe one or
more claims of the Licensed Patents.
	 
	 	1.4	 	“Net Sales” shall mean the amount invoiced on sales of Licensed
Product and/or Licensed Processes after deducting, if not already deducted in
the amount invoiced:

	 	•	 	Trade and/or quantity discounts
	 
	 	•	 	Credits on returns and allowances
	 
	 	•	 	Outbound transportation costs paid

	 	 	 	The “Net Sales” for a Licensed Product or Licensed Process that is
transferred to a third party for promotional purposes without charge or at a
discount shall be the average invoiced price to the customer of that type of
Licensed Product and/or Licensed Process during the applicable calendar
quarter.

	 	1.5	 	The term “Affiliate” shall mean: (a) any person or entity
which controls at least fifty percent (50%) of the equity or voting stock of
the Licensee or (b) any person or entity fifty percent (50%) of whose equity or
voting stock is owned or controlled by the Licensee or (c) any person or entity
of which at least fifty percent (50%) of the equity or voting stock is owned or
controlled by the same person or entity owning or controlling at least fifty
percent (50%) of Licensee or (d) any entity in which any officer, employee, or
director is also an officer, employee, or director of Licensee or any person
who is an officer, employee or director of Licensee.
	 
	 	1.6	 	The term “Sublicensee” shall mean any third party to whom
Licensee confers the right to make, use or sell Licensed Product and/or
Licensed Processes.
	 
	 	1.7	 	“Development Plan” shall mean a written report summarizing the development
activities that are to be undertaken by the Licensee to bring Licensed Products
and/or Licensed Processes to the market. The Development Plan is attached as
Development Plan.
	 
	 	1.8	 	“Development Report” shall mean a written account of Licensee’s
progress under the Development Plan having at least the information specified
on Appendix B to this Agreement, and shall be sent to the address specified on
Appendix B .
	 
	 	1.9	 	“Licensed Field” shall be limited to the field of specialty
chemicals excluding the production of ethanol.
	 
	 	1.10	 	“Licensed Territory” shall be limited to worldwide

			
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Section 2.
Grant

	 	2.1	 	License.

	 	2.1.1	 	License Under Licensed Patents

	 	 	 	UFRF hereby grants to Licensee an exclusive license,
limited to the Licensed Field and the Licensed
Territory, under the Licensed Patents to make, use
and sell Licensed Products and/or Licensed Processes.
UFRF reserves to itself and the University of
Florida the right to make and use Licensed Products
and/or Licensed Processes solely for their internal,
non-commercial: research, clinical, and educational
purposes. In addition, UFRF reserves to itself, as
well as to the University of Florida and to all
non-profit research institutions, the right to use
materials that might be covered under Licensed
Patents solely for their internal, non-commercial
research, educational, and clinical purposes and to
meet all applicable governmental requirements
governing the ability to transfer materials.

	 	2.2	 	Sublicense.

	 	2.2.1	 	Licensee may grant written, Sublicenses to
third parties subject to UFRF prior review and consent which review and
consent shall not be unreasonably withheld. Any agreement granting a
Sublicense shall state that the Sublicense is subject to the
termination provisions as defined in Section 9.8 of this Agreement.
Licensee shall have the same responsibility for the activities of any
Sublicensee or Affiliate as if the activities were directly those of
Licensee.
	 
	 	2.2.2	 	In respect to Sublicenses granted by Licensee
under 2.2.1, Licensee shall pay to UFRF an amount equal to [...***...]
of all royalties received by Licensee for Licensed Products sold by
such Sublicensee. In addition, if Licensee receives any fees, minimum
royalties, or other payments in consideration for any rights granted
under a Sublicense, and such payments are not based directly upon the
amount or value of Licensed Products sold by the Sublicensee, then
Licensee shall pay UFRF [...***...] of all of such payments in the
manner specified in Section 4.4. Licensee shall not receive from
Sublicensees anything of value in lieu of cash payments in
consideration for any Sublicense under this Agreement without the
express prior written permission of UFRF.

			
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	 	2.2.3	 	“Permitted Deductions” means funds received as
consideration for equity purchases of LICENSEE’S securities by a
sublicense (provided that fair and commercially reasonable sublicense
fees are collected in conjunction with such transaction) and any other
payments received by LICENSEE from any sublicense for purposes of
paying or reimbursing LICENSEE for any future research, development,
testing, or engineering services actually undertaken by or for LICENSEE
related to any Licensed Product or Licensed Process.
	 
	 	2.2.4	 	Licensee shall provide UFRF with an unredacted
copy of each sublicense agreement and any agreement which transfers
intellectual property rights granted hereunder, within thirty (30) days
prior to the execution of the sublicense agreement.
	 
	 	2.2.5	 	If Licensee is unable or unwilling to serve or
develop a potential market or market territory for which there is a
company willing to be a sublicensee, Licensee will, at UFRF’s request,
negotiate in good faith a sublicense with any such sublicensee.

Section 3.
Due Diligence

	 	3.1	 	Development.

	 	3.1.1	 	Licensee agrees to and warrants that:

	 	(a)	 	it has, or will obtain, the
expertise necessary to independently evaluate the inventions of
the Licensed Patents;
	 
	 	(b)	 	it will establish and actively
and diligently pursue the Development Plan (see Appendix A ) to
the end that the inventions of the Licensed Patents will be
utilized to provide Licensed Products and/or Licensed Processes
for sale in the retail market within the Licensed Field;
	 
	 	(c)	 	it will diligently develop
markets for Licensed Products and Licensed Processes;
	 
	 	(d)	 	and, until the date of first
commercial sale of Licensed Products or Licensed Processes, it
will supply UFRF with a written Development Report annually
fifteen (15) days after the end of the calendar year (see
Appendix B ).

	 	 	 	UFRF’s review of Licensee’s Development Plan
is solely to verify the existence of
Licensee’s commitment to development

			
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	 	 	 	activity and to ensure compliance with
Licensee’s obligations to commercialize the
inventions of the Licensed Patents, as set
forth above.

	 	3.1.2	 	Licensee agrees that the first commercial sale
of one or more products to the customer shall occur on or before August
1, 2010 or UFRF shall have the right to terminate the Agreement
pursuant to Section 9.4 hereto. In addition, Licensee will meet the
milestones shown in Appendix D or UFRF shall have the right to
terminate the Agreement pursuant to Section 9.4. Licensee will notify
UFRF in writing as each milestone is met
	 
	 	3.1.3	 	Licensee agrees that three years after the
Effective Date of this Agreement the Licensee would have achieved one
of the following milestones: a) Completion of at least one sublicense
for rights under the Licensed Patents or Licensed Process or b)
Production of 10 Kilogram sample quantities of the Licensed Products by
the Licensee. If neither of these milestones is met by the License,
then the Licensee shall pay UFRF $[...***...] for a one time,
non-refundable, 2-year extension to meet either milestone. Failure to
meet either milestone after the 2-year extension is a material breach
of this Agreement and grounds for termination pursuant to Section 9.3
hereto.
	 
	 	3.1.4	 	Upon written request by Licensee to negotiate
extensions of any Milestones Due Dates set forth in Appendix D, such
request to be received by UFRF no less than ninety (90) days prior to
any of the Due Dates subject of such request, set forth in this Section
3.1.3, such request fully describing Licensees Commercially Reasonable
Efforts to achieve the Milestone required to be met by such Due Date.
UFRF shall consider in good faith such requests. Upon granting such
request, UFRF and Licensee shall negotiate such extensions in good
faith

Section 4.
Royalties

	 	4.1	 	License Issue Fee.

	 	 	 	Licensee agrees to pay to UFRF a License Issue Fee of [...***...] within
thirty (30) days of the Effective Date.

	 	4.2	 	Royalty.

	 	4.2.1	 	Royalty on Licensed Patents. In
addition to the Section 4.1 License Issue Fee, Licensee agrees to pay
to UFRF as earned royalties a royalty calculated as a percentage of Net
Sales of Licensed Products which, if not for this Agreement, would
infringe

			
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	 	 	 	Licensed Patents, in accordance with the terms and conditions of this
Agreement. The royalty is deemed earned as of the earlier of the
date the Licensed Product and/or Licensed Process is actually sold
and paid for, the date an invoice is sent by Licensee or its
Sublicensee(s), or the date a Licensed Product and/or Licensed
Process is transferred to a third party for any promotional reasons.
If the License Product and/or Licensed Process is sold by the
Licensee the royalty shall remain fixed while this Agreement is in
effect at a rate of [...***...] of Net Sales. If the License Product
and/or Licensed Process is sold by the Sublicensee the royalty shall
be paid to UFRF as specified in Section 2.2.2

	 	4.3	 	Other Payments.

	 	4.3.1	 	Licensee agrees to pay UFRF Minimum Royalty
payments, as follows:
	 
	 	 	 	Payment            Year
	 	 	 	$[...***...] 2010 and every year thereafter on the same date, for the life
of this Agreement.

	 	 	 	The Minimum Royalty shall be paid in advance on a quarterly basis for each
year in which this Agreement is in effect. The first Minimum Royalty
payment shall be due on December 31, 2009 and shall be in the amount of
$[...***...]. The Minimum Royalty for a given year shall be due in advance
and shall be paid in quarterly installments on March 31, June 30, September
30, and December 31 for the following quarter. Any Minimum Royalty paid in
a calendar year will be credited against the earned royalties for that
calendar year. It is understood that the Minimum Royalties will be applied
to earned royalties on a calendar year basis, and that sales of Licensed
Products and/or Licensed Processes requiring the payment of earned royalties
made during a prior or subsequent calendar year shall have no effect on the
annual Minimum Royalty due UFRF for other than the same calendar year in
which the royalties were earned.

	 	4.3.2	 	In addition to all other payments required
under this Agreement, Licensee agrees to pay UFRF Milestone payments,
as follows:

	 	 	 	Payment            Event
	 	 	 	$[...***...] Issuance of the Licensed Permits

	 	4.4	 	Accounting for Payments.

	 	4.4.1	 	Amounts owing to UFRF under Sections 2.2 and
4.2 shall be paid on a quarterly basis after the amount of Minimum
Royalties paid is exceeded, with such amounts due and received by UFRF
on or before the thirtieth day following the end of the calendar
quarter ending on March 31, June 30, September 30 or December 31 in

			
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	 	 	 	which such amounts were earned. All amounts owing to UFRF pursuant
to this agreement which remain unpaid more than thirty (30) days
after they are due to UFRF shall accrue interest until paid at the
rate of the lesser of (a) [...***...] per month or (b) the maximum
amount allowed under applicable law. However, in no event shall this
interest provision be construed as a grant of permission for any
payment delays. Licensee shall also be responsible for repayment to
UFRF of any attorney, collection agency, or other out-of-pocket UFRF
expenses required to collect overdue payments due from this Section
4.4.1, Section 6.2 or any other applicable section of this Agreement.
	 
	 	4.4.2	 	Except as otherwise directed, all amounts
owing to UFRF under this Agreement shall be paid in U.S. dollars to
UFRF at the following address:
	 
	 	 	 	University of Florida Research Foundation, Inc.

223 Grinter Hall PO Box 115500

Gainesville, Florida 32611-5500

Attention: Business Manager
	 
	 	4.4.3	 	All royalties owing with respect to Net Sales
stated in currencies other than U.S. dollars shall be converted at the
rate shown in the Federal Reserve Noon Valuation — Value of Foreign
Currencies on the day preceding the payment. A certified full
accounting statement showing how any amounts payable to UFRF under
Section 4.3 have been calculated shall be submitted to UFRF on the date
of each such payment. In addition to being certified, such accounting
statements shall contain a written representation signed by an
executive officer of Licensee that states that the statements are true,
accurate, and fairly represent all amounts payable to UFRF pursuant to
this Agreement. Such accounting shall be on a per-country and product
line, model or trade name basis and shall be summarized on the form
shown in Appendix C of this Agreement. in the event no payment is owed
to UFRF because the amount of Minimum Royalties paid has not been
exceeded or otherwise, an accounting demonstrating that fact shall be
supplied to UFRF.
	 
	 	4.4.4	 	UFRF is exempt from paying income taxes under
U.S. law. Therefore, all payments due under this Agreement shall be
made without deduction for taxes, assessments, or other charges of any
kind which may be imposed on UFRF by any government outside of the
United States or any political subdivision of such government with
respect to any amounts payable to UFRF pursuant to this Agreement. All
such taxes, assessments, or other charges shall be assumed by Licensee.

			
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Section 5. Certain Warranties and Disclaimers of UFRF

	 	5.1	 	UFRF warrants that, except as otherwise provided under Section
17.1 of this Agreement with respect to U.S. Government interests, it is the
owner of the Licensed Patents or otherwise has the right to grant the licenses
granted to Licensee in this Agreement. However, nothing in this Agreement
shall be construed as:

	 	5.1.1	 	a warranty or representation by UFRF as to the
validity or scope of any right included in the Licensed Patents;
	 
	 	5.1.2	 	a warranty or representation that anything
made, used, sold or otherwise disposed of under the license granted in
this Agreement will or will not infringe patents of third parties;
	 
	 	5.1.3	 	an obligation to bring or prosecute actions or
suits against third parties for infringement of Licensed Patents;
	 
	 	5.1.4	 	an obligation to furnish any know-how not
provided in Licensed Patents or any services other than those specified
in this Agreement; or
	 
	 	5.1.5	 	a warranty or representation by UFRF that it
will not grant licenses to others to make, use or sell products not
covered by the claims of the Licensed Patents which may be similar
and/or compete with products made or sold by Licensee.

	 	5.2	 	EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT,
UFRF MAKES NO REPRESENTATIONS AND EXTENDS NO WARRANTIES OF ANY KIND, EITHER
EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE, AND VALIDITY OF PATENT RIGHTS CLAIMS, ISSUED
OR PENDING. UFRF ASSUMES NO RESPONSIBILITIES WHATSOEVER WITH RESPECT TO USE,
SALE, OR OTHER DISPOSITION BY LICENSEE, ITS SUBLICENSEE(S), OR THEIR VENDEES OR
OTHER TRANSFEREES OF PRODUCT INCORPORATING OR MADE BY USE OF INVENTIONS
LICENSED UNDER THIS AGREEMENT.

Section 6. Record Keeping

	 	6.1	 	Licensee and its Sublicensee(s) shall keep books and records
sufficient to verify the accuracy and completeness of Licensee’s and its
Sublicensee(s)’s accounting referred to above, including without limitation,
inventory, purchase and invoice records, manufacturing records, sales analysis,
general ledgers, financial statements, and tax returns relating to the Licensed
Products and/or Licensed Processes. Such

			
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	 	 	 	books and records shall be preserved for a period not less than six years
after they are created, both during and after the term of this Agreement.

	 	6.2	 	Licensee and its Sublicensee(s) shall take all steps necessary
so that UFRF may, within thirty (30) days of its written request, audit, review
and/or copy all of the books and records at a single U.S. location to verify
the accuracy of Licensee’s and its Sublicensee(s)’s accounting. Such review
may be performed by any authorized employees of UFRF as well as by any
attorneys and/or accountants designated by UFRF, upon reasonable notice and
during regular business hours. If a deficiency with regard to any payment
hereunder is determined, Licensee and its Sublicensee(s) shall pay the
deficiency within thirty (30) days of receiving notice thereof along with
applicable interest as described in Section 4.4.1. If a royalty payment
deficiency for a calendar year exceeds three percent (3%) of the royalties paid
for that year, then Licensee and its Sublicensee(s) shall be responsible for
paying UFRF’s out-of-pocket expenses incurred with respect to such review.
	 
	 	6.3	 	At any time during the term of this agreement, UFRF may request
in writing that Licensee verify the calculation of any past payments owed to
UFRF through the means of a self-audit. Within ninety (90) days of the
request, Licensee shall complete a self-audit of its books and records to
verify the accuracy and completeness of the payments owed. Within thirty (30)
days of the completion of the self-audit, Licensee shall submit to UFRF a
report detailing the findings of the self-audit and the manner in which it was
conducted in order to verify the accuracy and completeness of the payments
owed. If Licensee has determined through its self-audit that there is any
payment deficiency, Licensee shall pay UFRF the deficiency along with
applicable interest under Section 4.4.1 with the submission of the self-audit
report to UFRF.

Section 7. Patent Prosecution

	 	7.1	 	UFRF shall diligently prosecute and maintain the Licensed
Patents using counsel of its choice. UFRF shall provide Licensee with copies
of all patent applications amendments, and other filings with the United States
Patent and Trademark Office and foreign patent offices. UFRF will also provide
Licensee with copies of office actions and other communications received by
UFRF from the United States Patent and Trademark Office and foreign patent
offices relating to Licensed Patents. Licensee agrees to keep such information
confidential.
	 
	 	7.2	 	Licensee shall pay to UFRF the sum of $[...***...], within 30
days of the Effective Date which sum represents costs of preparation, filing,
prosecution, issuance, and maintenance of the Licensed Patents incurred prior
to the Effective Date.

			
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	 	7.3	 	Licensee shall be responsible for and pay all past and future
costs and expenses incurred by UFRF for the preparation, filing, prosecution,
issuance, and maintenance of the Licensed Patents within thirty (30) days of
receipt of an invoice from UFRF. It shall be the responsibility of Licensee to
keep UFRF fully apprised of the “small entity” status of Licensee and all
Sublicensees with respect to the U.S. patent laws and with respect to the
patent laws of any other countries, if applicable, and to inform UFRF of any
changes in such status, within thirty days of any such change.

Section 8. Infringement and Invalidity

	 	8.1	 	Licensee shall inform UFRF promptly in writing of any alleged
infringement of the Licensed Patents by a third party and of any available
evidence thereof.
	 
	 	8.2	 	During the term of this Agreement, UFRF shall have the right,
but shall not be obligated, to prosecute at its own expense any such
infringements of the Licensed Patents. If UFRF prosecutes any such
infringement, Licensee agrees that UFRF may include Licensee as a co-plaintiff
in any such suit, without expense to Licensee. In the event that UFRF shall
undertake the enforcement by litigation and/or defense of the Licensed Patents
by litigation, any recovery of damages by UFRF for any such suit shall be
applied first in satisfaction of any unreimbursed expenses and legal fees of
UFRF relating to the suit. The balance remaining from any such recovery shall
be divided equally between Licensee and UFRF
	 
	 	8.3	 	If within six (6) months after having been notified of any
alleged infringement, UFRF shall have been unsuccessful in persuading the
alleged infringer to desist and shall not have brought and shall not be
diligently prosecuting an infringement action, or if UFRF shall notify Licensee
at any time prior thereto of its intention not to bring suit against any
alleged infringer, then, and in those events only, Licensee shall have the
right, but shall not be obligated, to prosecute at its own expense any
infringement of the Licensed Patents, and Licensee may, for such purposes, use
the name of UFRF as party plaintiff. No settlement, consent judgment or other
voluntary final disposition of the suit may be entered into without the consent
of UFRF, which consent shall not unreasonably be withheld. Licensee shall
indemnify UFRF against any order for costs that may be made against UFRF in
such proceedings.
	 
	 	8.4	 	In the event that Licensee shall undertake the enforcement by
litigation and/or defense of the Licensed Patents by litigation, any recovery
of damages by Licensee for any such suit shall be applied first in satisfaction
of any unreimbursed expenses and legal fees of Licensee relating to the suit,
and next toward reimbursement of UFRF for any legal fees, and

			
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	 	 	 	unreimbursed expenses. The balance remaining from any such recovery shall
be divided equally between Licensee and UFRF.

	 	8.5	 	In any infringement suit that either party may institute to
enforce the Licensed Patents pursuant to this Agreement, the other party hereto
shall, at the request and expense of the party initiating such suit, cooperate
in all respects and, to the extent possible, have its employees testify when
requested and make available relevant records, papers, information, samples,
specimens, and the like.
	 
	 	8.6	 	In the event a declaratory judgment action alleging invalidity
or noninfringement of any of the Licensed Patents shall be brought against
Licensee, UFRF, at its option, shall have the right, within thirty (30) days
after commencement of such action, to intervene and take over the sole defense
of the action at its own expense.
	 
	 	8.7	 	In the event Licensee contests the validity of any Licensed
Patents, Licensee shall continue to pay 50% of the royalties owed to UFRF and
make other payments pursuant to this Agreement with respect to that patent as
if such contest were not underway until the patent is adjudicated invalid or
unenforceable by a court of last resort. Upon resolution of any such contest,
the Licensee’s obligation to pay royalties to UFRF shall be retroactively
restored. Any balance of royalties due to UFRF under 8.7 shall be paid to UFRF
within 30 days of the resolution of any such contest.

Section 9. Term and Termination

	 	9.1	 	The term of this license shall begin on the Effective Date of
this Agreement and continue until the earlier of the date that no Licensed
Patent remains an enforceable patent or the payment of earned royalties under
Section 4.3 once begun, ceases for more than two (2) calendar quarters.
	 
	 	9.2	 	Licensee may terminate this Agreement at any time by giving at
least sixty (60) days written notice of such termination to UFRF. Such a
notice shall be accompanied by a statement of the reasons for termination.
	 
	 	9.3	 	UFRF may terminate this Agreement by giving Licensee at least
thirty (30) days written notice if Licensee:

	 	9.3.1	 	is delinquent on any report or payment
	 
	 	9.3.2	 	provides any false report.
	 
	 	9.3.3	 	is late in paying royalties or any amounts due
to UFRF in two (2) consecutive calendar quarters

			
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	 	9.3.4	 	fails to achieve the milestones described in
Section 3.1.3 after the 2 year extension has lapsed.

	 	 	 	Termination under this Section 9.3 will take effect 30 days after written
notice by UFRF unless Licensee remedies the problem in that 30-day period.

	 	9.4	 	UFRF may terminate this Agreement by giving Licensee at least
thirty (90) days written notice if Licensee:

	 	9.4.1	 	is not diligently developing and
commercializing Licensed Product and Licensed Process 9.4.2 misses a
milestone described in Appendix D; or
	 
	 	9.4.2	 	is in breach of any provision

	 	 	Termination under this Section 9.4 will take effect 90 days after written notice by
UFRF unless Licensee remedies the problem in that 90-day period.

	 	9.5	 	UFRF may immediately terminate this Agreement upon the
occurrence of the second separate default by Licensee within any consecutive
three-year period for failure to pay royalties, patent or any other expenses
when due.
	 
	 	9.6	 	Upon the termination of this Agreement for any reason, nothing
herein shall be construed to release either party from any obligation that
matured prior to the effective date of such termination. Licensee shall remain
obligated to provide an accounting for and to pay royalties earned to the date
of termination, and any Minimum Royalties shall be prorated as of the date of
termination by the number of days elapsed in the applicable calendar year.
Licensee may, however, after the effective date of such termination, set] all
Licensed Products, and complete Licensed Products in the process of manufacture
at the time of such termination and sell the same, provided that Licensee shall
remain obligated to provide an accounting for and to pay running royalties
thereon.
	 
	 	9.7	 	Licensee shall be obligated to deliver to UFRF, within ninety
days of the date of termination of this agreement, complete and unredacted
copies of all documentation prepared for or submitted for all regulatory
approvals of Licensed Products or Licensed Processes.
	 
	 	9.8	 	Upon termination of this Agreement for any reason, any
sublicensee not then in default, as determined by UFRF, shall receive from
UFRF, a grant similar in scope as the grant set forth in the Sublicense
Agreement with the Licensee and all other rights in the Sublicense Agreement
reasonably necessary to continue the business of such sublicensee except the
UFRF shall be under no obligation to grant any rights which UFRF does not have
or to perform any services for which it is unsuited. All payments required

			
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	 	 	 	to be made by such sublicensee shall, from the date of termination of this
Agreement, be paid to UFRF.

Section 10. Assignability

	 	 	 	This Agreement may not be transferred or assigned by Licensee except
with the prior written consent of UFRF.

Section 11. Dispute Resolution Procedures

	 	11.1	 	Mandatory Procedures.
	 
	 	 	 	In the event either party intends to file a lawsuit against the other with
respect to any matter in connection with this Agreement, compliance with the
procedures set forth in this Section shall be a condition precedent to the
filing of such lawsuit, other than for injunctive relief. Either party may
terminate this Agreement as provided in this Agreement without following the
procedures set forth in this section.

	 	11.1.1	 	When a party intends to invoke the procedures set forth in this
section, written notice shall be provided to the other party. Within
thirty (30) days of the date of such notice, the parties agree that
representatives designated by the parties shall meet at mutually
agreeable times and engage in good faith negotiations at a mutually
convenient location to resolve such dispute.
	 
	 	11.1.2	 	If the parties fail to meet within the time period set forth in
section 11.1.1 above or if either party subsequently determines that
negotiations between the representatives of the parties are at an
impasse, the party declaring that the negotiations are at an impasse
shall give notice to the other party stating with particularity the
issues that remain in dispute.
	 
	 	11.1.3	 	Not more than 15 days after the giving of such notice of issues, each
party shall deliver to the other party a list of the names and
addresses of at least three individuals, any one of whom would be
acceptable as a neutral advisor in the dispute (the “Neutral Advisor”)
to the party delivering the list. Any individual proposed as a Neutral
Advisor shall have experience in determining, mediating, evaluating, or
trying intellectual property litigation and shall not be affiliated
with the party that is proposing such individual.
	 
	 	11.1.4	 	Within 10 days after delivery of such lists, the parties shall agree
on a Neutral Advisor. If they are unable to so agree within that time,
within 5 days, they shall each select one individual from the lists.
Within 5 days, the individuals so selected shall meet and

			
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	 	 	 	appoint a third individual from the lists to serve as the Neutral
Advisor. Within 30 days after the selection of a Neutral Advisor:

	 	(a)	 	The parties shall each provide a
written statement of the issues in dispute to the Neutral
Advisor.
	 
	 	(b)	 	The parties shall meet with the
Neutral Advisor in Gainesville, Florida on a date and time
established by the Neutral Advisor. The meeting must be
attended by persons authorized to make final decisions on behalf
of each party with respect to the dispute. At the meeting, each
party shall make a presentation with respect to its position
concerning the dispute. The Neutral Advisor will then discuss
the issues separately with each party and attempt to resolve all
issues in the dispute. At the meeting, the parties will enter
into a written settlement agreement with respect to all issues
that are resolved. Such settlement agreement shall be final and
binding with respect to such resolved issues and may not be the
subject of any lawsuit between the parties, other than a suit
for enforcement of the settlement agreement.

	 	11.1.5	 	The expenses of the neutral advisor shall be shared by the parties
equally. All other out-of-pocket costs and expenses for the
alternative dispute resolution procedure required under this Section
shall be paid by the party incurring the same.
	 
	 	11.1.6	 	Positions taken and statements made during this alternative dispute
resolution procedure shall be deemed settlement negotiations and shall
not be admissible for any purpose in any subsequent proceeding.

	 	11.2	 	Failure to Resolve Dispute.
	 
	 	 	 	If any issue is not resolved at the meeting with the Neutral Advisor, either
party may file appropriate administrative or judicial proceedings with
respect to the issue that remains in dispute. No new issues may be included
in the lawsuit without the mandatory procedures set forth in this section
having first been followed.

	 	11.3	 	Survival.

	 	 	 	The provisions of this Section shall survive termination of this Agreement.

Section 12. Product Liability; Conduct of Business

	 	12.1	 	Licensee and its Sublicensee(s) shall, at all times during the
term of this Agreement and thereafter, indemnify, defend and hold UFRF, the
Florida

			
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	 	 	 	Board of Governors, the University of Florida Board of Trustees, the
University of Florida, and each of their directors, officers, employees, and
agents, and the inventors of the Licensed Patents, regardless of whether
such inventors are employed by the University of Florida at the time of the
claim, harmless against all claims and expenses, including legal expenses
and reasonable attorneys fees, whether arising from a third party claim or
resulting from UFRF’s enforcing this indemnification clause against
Licensee, arising out of the death of or injury to any person or persons or
out of any damage to property and against any other claim, proceeding,
demand, expense and liability of any kind whatsoever (other than patent
infringement claims) resulting from the production, manufacture, sale, use,
lease, consumption, marketing, or advertisement of Licensed Products or
Licensed Process(es) or arising from any right or obligation of Licensee
hereunder. Notwithstanding the above, UFRF at all times reserves the right
to retain counsel of its own to defend UFRF’s, the Florida Board of
Governors’, the University of Florida Board of Trustees’, the University of
Florida’s, and the inventor’s interests.
	 
	 	12.2	 	Licensee warrants that it now maintains and will continue to
maintain liability insurance coverage appropriate to the risk involved in
producing, manufacturing, selling, marketing, using, leasing, consuming, or
advertising the products subject to this Agreement and that such insurance
coverage lists UFRF, the Florida Board of Governors, the University of Florida
Board of Trustees, the University of Florida, and the inventors of the Licensed
Patents as additional insureds. Within ninety (90) days after the execution of
this Agreement and thereafter annually between January 1 and January 31 of each
year, Licensee will present evidence to UFRF that the coverage is being
maintained with UFRF, the University of Florida, and its inventors listed as
additional insureds. In addition, Licensee shall provide UFRF with at least
thirty (30) days prior written notice of any change in or cancellation of the
insurance coverage.

Section 13. Use of Names

	 	13.1	 	Licensee and its Sublicensee(s) shall not use the names of
UFRF, or of the University of Florida, nor of any of either institution’s
employees, agents, or affiliates, nor the name of any inventor of Licensed
Patents, nor any adaptation of such names, in any sales promotion, advertising,
or any other form of publicity without the prior written approval of UFRF in
each case, except that Licensee may state that it has received a license from
U1-RF under one or more or the patents and/or applications comprising the
Licensed Patents.

Section 14. Miscellaneous

	 	14.1	 	This Agreement shall be construed in accordance with the
internal laws of the State of Florida.

			
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	 	14.2	 	The parties hereto are independent contractors and not joint
venturers or partners.
	 
	 	14.3	 	Licensee shall insure that it applies patent markings that meet
all requirements of U.S. law, 35 U.S.C. §287, with respect to all Licensed
Products subject to this Agreement.
	 
	 	14.4	 	This Agreement constitutes the full understanding between the
parties with reference to the subject matter hereof, and no statements or
agreements by or between the parties, whether orally or in writing, shall vary
or modify the written terms of this Agreement. Neither party shall claim any
amendment, modification, or release from any provisions of this Agreement by
mutual agreement, acknowledgment, or otherwise, unless such mutual agreement is
in writing, signed by the other party, and specifically states that it is an
amendment to this Agreement.
	 
	 	14.5	 	Licensee shall not encumber or otherwise grant a security
interest in any of the rights granted hereunder to any third party.
	 
	 	14.6	 	Licensee acknowledges that it is subject to and agrees to abide
by the United States laws and regulations (including the Export Administration
Act of 1979 and Arms Export Contract Act) controlling the export of technical
data, computer software, laboratory prototypes, biological material, and other
commodities. The transfer of such items may require a license from the
cognizant agency of the U.S. Government or written assurances by Licensee that
it shall not export such items to certain foreign countries without prior
approval of such agency. UFRF neither represents that a license is or is not
required or that, if required, it shall be issued.
	 
	 	14.7	 	Licensee is responsible for any and all wire/bank fees
associated with all payments due to UFRF pursuant to this agreement.

Section 15. Notices

	 	 	 	Any notice required to be given pursuant to the provisions of this Agreement shall
he in writing and shall be deemed to have been given

	 	•	 	when delivered personally,
	 
	 	•	 	if sent by facsimile transmission, when receipt thereof is
acknowledged at the facsimile number of the recipient as set forth
below,
	 
	 	•	 	the second day following the day on which the notice has been
delivered prepaid to a national air courier service, or
	 
	 	•	 	five (5) business days following deposit in the U.S. mail if sent
certified mail, return receipt requested:

	 	15.1	 	If to the University of Florida Research Foundation, Inc.:

			
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President

University of Florida Research Foundation, Inc.

223 Grinter Hall

University of Florida

Post Office Box 115500

Gainesville, FL 32611-5500

Facsimile Number: 352-846-0491

with a copy to:

Office of Technology Licensing Attn: Director

308 Walker Hall

University of Florida

Post Office Box 115500

Gainesville, Florida 32611-5500

Facsimile Number: 352-392-6600

15.2 If to Licensee:

Stephen J. Gatto

Chief Executive Officer

BioEnergy International, LLC 99 Longwater Circle

Norwell, MA 02061

Facsimile Number: 781-681-5055

Section 16. Contract Formation and Authority

	 	16.1	 	No agreement between the parties shall exist unless the duly
authorized representative of Licensee and the Director of the Office of
Technology Transfer of UFRF have signed this document within thirty (30) days
of the Effective Date written on the first page of this Agreement.
	 
	 	16.2	 	UFRF and Licensee hereby warrant and represent that the persons
signing this Agreement have authority to execute this Agreement on behalf of
the party for whom they have signed.
	 
	 	16.3	 	Force Majeure.
	 
	 	 	 	No default, delay, or failure to perform on the part of Licensee or UFRF
shall be considered a default, delay or failure to perform otherwise
chargeable hereunder, if such default, delay or failure to perform is due to
causes beyond either party’s reasonable control including, but not limited
to: strikes, lockouts, or inactions of governmental authorities, epidemics,
war, embargoes, fire, earthquake, acts of God, or default of common carrier.
In the event of such default, delay or failure to perform, any date
or times by which either party is otherwise scheduled to perform shall he
extended automatically for a period of time equal in duration to the time
lost by reason of the excused default, delay or failure to perform.

Section 17. United States Government Interests

			
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	 	17.1	 	It is understood that the United States Government (through any
of its agencies or otherwise) has funded research, Grant Nos.
DE-FG02-96ER20222, 00-52104-9704, 2001-35504-10669, during the course of or
under which any of the inventions of the Licensed Patents were conceived or
made. The United States Government is entitled, as a right, under the
provisions of 35 U.S.C. §202-212 and applicable regulations of Title 37 of the
Code of Federal Regulations, to a non-exclusive, nontransferable, irrevocable,
paid-up license to practice or have practiced the inventions of such Licensed
Patents for governmental purposes. Any license granted to Licensee in this
Agreement shall be subject to such right.
	 
	 	17.2	 	Licensee agrees that for Licensed Products covered by the
Licensed Patents that are subject to the non-exclusive royalty-free license to
the United States Government, said Licensed Products will be manufactured
substantially in the United States. Licensee further agrees that it shall
abide by all the requirements and limitations of U.S. Code, Title 35, Chapter
18, and implementing regulations thereof, for all patent applications and
patents invented in whole or in part with federal money.

Section 18. Confidentiality

	 	18.1	 	Each Party shall maintain all information of the other Party
which is treated by such other Party as proprietary or confidential (referred
to herein as “Confidential Information”) in confidence, and shall not disclose,
divulge or otherwise communicate such confidential information to others, or
use it for any purpose, except pursuant to, and in order to carry out, the
terms and objectives of this Agreement, and each party hereby agrees to
exercise every reasonable precaution to prevent and restrain the unauthorized
disclosure of such confidential information by any of its Affiliates,
directors, officers, employees, consultants, subcontractors, sublicensees or
agents. Licensee’s Confidential Information includes but is not limited to the
Development Plan, Development Reports and all other financial and business
reports, strategies, and agreements (including Sublicenses) of Licensee. The
parties agree to keep the terms of this Agreement confidential, provided that
each party may disclose this Agreement to their authorized agents and investors
who are bound by similar confidentiality provisions. Notwithstanding the
foregoing, Confidential Information of a party shall not include information
which: (a) was lawfully known by the receiving party prior to disclosure of
such information by the disclosing party to the receiving party; (b) was or
becomes generally available in the public
domain, without the fault of the receiving party; (c) is subsequently
disclosed to the receiving party by a third party having a lawful right to
make such disclosure; (d) is required by law, rule, regulation or legal
process to be disclosed, provided that the receiving party making such
disclosure shall take all reasonable steps to restrict and maintain to the
extent possible confidentiality of such disclosure and shall provide

			
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	 	 	 	reasonable notice to the other party to allow such party the opportunity to
oppose the required disclosure; or (e) has been independently developed by
employees or others on behalf of the receiving party without access to or
use of disclosing party’s information as demonstrated by written record.
Each party’s obligations under this Section 18 shall extend for a period of
five (5) years from termination or expiration of this Agreement.

Section 19. University Rules and Regulations

	 	19.1	 	Licensee understands and agrees that University of Florida
personnel who are engaged by Licensee, whether as consultants, employees or
otherwise, or who possess a material financial interest in Licensee, are
subject to the University of Florida’s rule regarding outside activities and
financial interests set forth in Florida Administrative Code Rule 6C1-1.011,
the University of Florida’s Intellectual Property Policy, and a monitoring plan
which addresses conflicts of interests associated therewith. Any term or
condition of an agreement between Licensee and such University of Florida
personnel which seeks to vary or override such personnel’s obligations to the
University of Florida may not be enforced against such personnel, the
University of Florida or UFRF, without the express written consent of an
individual authorized to vary or waive such obligations on behalf of the
University of Florida and UFRF. Furthermore, should an interest of Licensee
conflict with the interest of the University of Florida, University of Florida
personnel are obligated to resolve such conflicts according to the guidelines
and policies set forth by the University of Florida.

     IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement on the dates
indicated below.

	 	 	 	 	 

	UNIVERSITY OF FLORIDA RESEARCH FOUNDATION, INC.	 	 
	 
	 	 	 	 
	By:

	 	/s/ David L. Day
 

David L. Day
	 	Date: September 27, 2005 
	 

	 	Director, Office of Technology Licensing	 	 
	 
	 	 	 	 
	BIOENERGY INTERNATIONAL, LLC	 	 
	 
	 	 	 	 
	By:

	 	/s/ Stephen J. Gatto
 

Stephen J. Gatto
	 	Date: October 3, 2005 
	 

	 	Chief Executive Officer	 	 

			
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Appendix A — Development Plan

BioEnergy will focus on the development and licensing of biocatalysts for the production of lactic
acid, other organic acids, and specialty chemicals. Unlike currently used biocatalysts which use
glucose as a substrate, BioEnergy seeks to develop biocatalysts that efficiently utilize all of the
sugar constituents found in the carbohydrate polymers of plant biomass.

Research to develop the Licensed Patents and Licensed Process will be initially conducted in
collaboration with Dr. Lonnie Ingram. It is BioEnergy’s plan to expand this research effort in the
future, and to develop a complementary in-house research team at the Sid Martin Biotechnology
Institute for commercial testing. Our research efforts will be divided into two areas due in part
to the differences in potential commercial market: 1) Lactic acid biocatalysts, and 2) Biocatalysts
for Organic Acids and Specialty Chemicals. Development of the Licensed Patent addresses the later
of the two research areas.

Research Plan for Other Organic Acids and Specialty Chemicals

The initial focus of this work will be to genetically modify the backbone of metabolism to create
an E coli B pre-biocatalyst that can be tailored to the production of individual products.
Although some of the mutations we need have been engineered into a K-12 strain of E. coli, K-12
strains are less robust than derivatives of strain B and K-12 strains have defects which prevent
efficient use of xylose. UF work in this area will accelerate as the Sponsor Program Agreement
increases and as task for lactate are completed. Work on lactate will take precedence initially.
It is hoped that many of the lessons learned with lactate will reduce efforts needed for success
with these new products.

Year I.

	 	1.	 	Develop pre-biocatalyst in E. coli B that lacks all terminal
fermentation pathways and lacks the ability to produce ATP by oxidative
phosphorylation.

Year II.

	 	1.	 	Modify pre-biocatalyst for the production of a single product.
We select pyruvic acid as the initial product, a sugar alcohol would be a close
second.
	 
	 	2.	 	Evaluate yields and rates with laboratory sugars.
	 
	 	3.	 	Evaluate Stability

Year III

	 	1.	 	Develop strains that can efficiently convert industrial sugar
sources.
	 
	 	2.	 	Develop room temperature storage methods for biocatalyst
inocula.
	 
	 	3.	 	Explore the use of continuous culture or cell recycle on
productivity and yield with pure sugars and with promising industrial
substrates.

			
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Appendix B — Development Report 

When appropriate, indicate estimated start date and finish date for activities.

	I.	 	Date Development Plan Initiated and Time Period Covered by this Report.
	 
	II.	 	Development Report (4-8 paragraphs).

	 	A.	 	Activities completed since last report including the object and parameters of
the development, when initiated, when completed and the results.
	 
	 	B.	 	Activities currently under investigation, i.e., ongoing activities including
object and parameters of such

	III.	 	Future Development Activities (4-8 paragraphs).

	 	A.	 	Activities to be undertaken before next report including, but not limited to,
the type and object of any studies conducted and their projected starting and
completion dates.
	 
	 	B.	 	Estimated total development time remaining before a product will be
commercialized.

	IV.	 	Changes to Initial Development Plan (2-4 paragraphs).

	 	A.	 	Reasons for change.
	 
	 	B.	 	Variables that may cause additional changes.

	V.	 	Items to be Provided if Applicable:

	 	A.	 	Information relating to Licensed Products that has become publicly available,
e.g., published articles, competing products, patents, etc.
	 
	 	B.	 	Development work being performed by third parties, other than Licensee, to
include name of third party,
	 
	 	C.	 	Update of competitive information trends in industry, government compliance (if
applicable) and market plan.
	 
	 	D.	 	Information and copies of relevant materials evidencing the status of any
patent applications or other protection relating to Licensed Products or the Licensed
Patents.

			
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PLEASE SEND DEVELOPMENT REPORTS TO:

University of Florida Research Foundation, Inc.

Attn: Director

308 Walker Hall

P.O. Box 115500

Gainesville, FL 32611-5500

Facsimile: 352-392-6600

			
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Appendix C — UFRF Royalty Report

	 	 	 

	Licensee:__________________________

	 	Agreement No: ______________________
	Inventor:__________________________

	 	P#: _______________________________
	Period Covered:      From: ___________

	 	Through:___________
	Prepared By________________________

	 	Date:______________________________
	Approved By:_______________________

	 	Date: ______________________________

If license covers several major product lines, please prepare a separate report

for each line. Then combine all product lines into a summary report.

	 	 	 

	Report Type:

	 	o Single Product Line Report:______________________
	 
	 

	 	o Multiproduct Summary Report. Page 1 of ________ Pages
	 
	 

	 	o
Product Line Detail. Line:______ Tradename:______ Page:_____
	 
	Report Currency:

	 	o U.S. Dollars o Other______________________

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Period Royalty Amount	 
	 	 	Unit	 	 	Gross	 	 	* Less:	 	 	Net	 	 	Royalty	 	 	 	 	 	 	 
	Country	 	Sales	 	 	$$ Sales	 	 	Allowances	 	 	$$ Sales	 	 	Rate	 	 	This Year	 	 	Last Year	 
	U.S.A.
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Canada
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Europe
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Japan
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Other:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

Total
Royalty:__________ Conversion
Rate:__________ Royalty in
U.S. Dollars: $                    
     

The following royalty forecast in non-binding and for UFRF’s internal planning purposes only:

Royalty Forecast Under This Agreement: Next Quarter:_____ Q2:_____ Q3:_____ Q4:_____

*On a separate page, please indicate the reasons for returns or other adjustments if significant.

Also note any unusual occurrences that affected royalty amounts during this period.

To assist UFRF’s forecasting, please comment on any significant expected trends in sales volume.

			
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Appendix D — Milestones

In addition to the research milestones described in Appendix A, the following milestones shall be
completed by the Licensee.

	1.	 	Licensee has already provided UFRF a preliminary business plan, dated April, 2005. By August
1, 2008, Licensee will provide UFRF a detailed document covering Licensee’s plans as to
projected product development, markets and sales forecasts, manufacturing and operations, and
financial forecasts until at least $[...***...] in revenues are achieved (“Business Plan”).
UFRF will treat this Business Plan as confidential information and to protect it as UFRF would
its own confidential information.
	 
	2.	 	By December 1, 2005, Licensee will provide to UFRF a listing of the management team or a
schedule for the recruitment of key management positions.
	 
	3.	 	By December 1, 2008, Licensee will make a prototype / begin animal studies.
	 
	4.	 	By August 1, 2010, Licensee will have a first sale of Licensed Product.
	 
	5.	 	Licensee or a sublicense must sell at least one Licensed Product every six months after the
date of first sale of a Licensed Product.

			
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Exhibit 10.27

*** Text Omitted and Filed Separately

Confidential Treatment Requested

Under 17 C.F.R. §§ 200.80(b)(4)

and 203.406

Agreement No. 4780

STANDARD EXCLUSIVE LICENSE AGREEMENT

WITH SUBLICENSING TERMS

TABLE OF CONTENTS

	 	 	 

	Section 1
	 	Definitions
	Section 2
	 	Grant
	Section 3
	 	Due Diligence
	Section 4
	 	Royalties
	Section 5
	 	Certain Warranties and Disclaimers of UFRF
	Section 6
	 	Record keeping
	Section 7
	 	Patent Prosecution
	Section 8
	 	Infringement and Invalidity
	Section 9
	 	Term and Termination
	Section 10
	 	Assignability
	Section 11
	 	Dispute Resolution Procedures
	Section 12
	 	Product Liability; Conduct of Business
	Section 13
	 	Use of Names
	Section 14
	 	Miscellaneous
	Section 15
	 	Notices
	Section 16
	 	Contract Formation and Authority
	Section 17
	 	United States Government Interests
	Section 18
	 	Confidentiality
	Section 19
	 	University Rules and Regulations
	 
	 	 
	Appendix A — Development Plan
	Appendix B — Development Report
	Appendix C — UFRF Royalty Report
	Appendix D — Milestones

     This Agreement is made effective the 3rd day of October, 2005, (the “Effective Date”) by and
between the University of Florida Research Foundation, Inc. (hereinafter called “UFRF”), a
nonstock, nonprofit Florida corporation, and BioEnergy International LLC having an
address at 99 Longwater Circle, Norwell, MA 02061 (hereinafter called “Licensee”), a corporation
organized and existing under the laws of Delaware;

     WHEREAS, UFRF owns certain inventions that are described in the “Licensed Patents” defined
below, and UFRF is willing to grant a license to Licensee under any one or all of the Licensed
Patents and Licensee desires a license under all of them;

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     NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth below, the
parties covenant and agree as follows:

Section 1. Definitions

	 	1.1	 	“Licensed Patents” shall refer to and mean all of the following
UFRF intellectual property:

	 	1.1.1	 	the United States patent(s)/patent
application(s) entitled “Production of Chemicals from Lignocellulose,”
filed in the United States Patent Office on March 3rd, 2004, and
assigned Registration Number/Serial Number 10/793,568 and all United
States patents and foreign patents and patent applications based on
this U.S. application, including PCT patent number PCT/US05/06774 filed
on March 2nd, 2005.
	 
	 	1.1.2	 	United States and foreign patents issued from
the applications listed in 1.1.1 above and from divisionals and
continuations of these applications, to the extent the claims are
directed to subject matter specifically described in the applications
listed in 1.1.1 above and are dominated by the claims of those patent
applications and patents issuing thereon or reissues thereof, and any
and all foreign patents and patent applications corresponding thereto,
all to the extent owned or controlled by the University of Florida.

	 	1.2	 	“Licensed Product” and “Licensed Process” shall mean:

	 	1.2.1	 	In the case of a Licensed Product, any product
or part thereof developed by or on behalf of Licensee that:

	 	(a)	 	is covered in whole or in part by
an issued, unexpired claim or a pending claim contained in the
Licensed Patents, in any country in which any product is made,
used or sold; or
	 
	 	(b)	 	is manufactured by using a
process which is covered in whole or in part by an issued,
unexpired claim or a pending claim contained in the Licensed
Patents, in any country in which any such process is used or in
which any such product is used or sold

	 	1.2.2	 	In the case of a Licensed Process:

	 	(a)	 	any process which is covered in
whole or in part by an issued, unexpired claim or a pending
claim contained in the Licensed Patents in any country in which
such process is practiced

			
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	 	1.3	 	“Improvements” shall mean any modification of an invention
described in the Licensed Patents which, if unlicensed, would infringe one or
more claims of the Licensed Patents.
	 
	 	1.4	 	“Net Sales” shall mean the amount invoiced on sales of Licensed
Product and/or Licensed Processes after deducting, if not already deducted in
the amount invoiced:

	 	•	 	Trade and/or quantity discounts
	 
	 	•	 	Credits on returns and allowances
	 
	 	•	 	Outbound transportation costs paid

	 	 	The “Net Sales” for a Licensed Product or Licensed Process that is transferred to a
third party for promotional purposes without charge or at a discount shall be the
average invoiced price to the customer of that type of Licensed Product and/or
Licensed Process during the applicable calendar quarter.

	 	1.5	 	The term “Affiliate” shall mean: (a) any person or entity which
controls at least fifty percent (50%) of the equity or voting stock of the
Licensee or (b) any person or entity fifty percent (50%) of whose equity or
voting stock is owned or control led by the Licensee or (c) any person or
entity of which at least fifty percent (50%) of the equity or voting stock is
owned or controlled by the same person or entity owning or controlling at least
fifty percent (50%) of Licensee or (d) any entity in which any officer,
employee, or director is also an officer, employee, or director of Licensee or
any person who is an officer, employee or director of Licensee.
	 
	 	1.6	 	The term “Sublicensee” shall mean any third party to whom
Licensee confers the right to make, use or sell Licensed Product and/or
Licensed Processes.
	 
	 	1.7	 	“Development Plan” shall mean a written report summarizing the
development activities that are to be undertaken by the Licensee to bring
Licensed Products and/or Licensed Processes to the market. The Development
Plan is attached as Development Plan.
	 
	 	1.8	 	“Development Report” shall mean a written account of Licensee’s
progress under the Development Plan having at least the information
specified on Appendix B to this Agreement, and shall be sent to the address
specified on Appendix B .
	 
	 	1.9	 	“Licensed Field” shall be limited to the field of specialty
chemicals excluding the production of ethanol.
	 
	 	1.10	 	“Licensed Territory” shall be limited to worldwide

			
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Section 2. Grant

	 	2.1	 	License.

	 	2.1.1	 	License Under Licensed Patents

	 	 	UFRF hereby grants to Licensee an exclusive license, limited to the Licensed Field
and the Licensed Territory, under the Licensed Patents to make, use and sell
Licensed Products and/or Licensed Processes. UFRF reserves to itself and the
University of Florida the right to make and use Licensed Products and/or Licensed
Processes solely for their internal, non-commercial: research, clinical, and
educational purposes. In addition, UFRF reserves to itself, as well as to the
University of Florida and to all non-profit research institutions, the right to use
materials that might be covered under Licensed Patents solely for their internal,
non-commercial research, educational, and clinical purposes and to meet all
applicable governmental requirements governing the ability to transfer materials.

	 	2.2	 	Sublicense.

	 	2.2.1	 	Licensee may grant written, Sublicenses to
third parties subject to UFRF prior review and consent which review and
consent shall not be unreasonably withheld. Any agreement granting a
Sublicense shall state that the Sublicense is subject to the
termination provisions as defined in Section 9.8 of this Agreement.
Licensee shall have the same responsibility for the activities of any
Sublicensee or Affiliate as if the activities were directly those of
Licensee.
	 
	 	2.2.2	 	In respect to Sublicenses granted by Licensee
under 2.2.1. Licensee shall pay to UFRF an amount equal to [...***...]
of all royalties received by Licensee for Licensed Products sold by
such Sublicensee. In addition, if Licensee receives any fees, minimum
royalties, or other payments in consideration for any rights granted
under a Sublicense, and such payments are not based directly upon the
amount or value of Licensed Products sold by the Sublicensee, then
Licensee shall pay UFRF [...***...] of all of such payments in the
manner specified in Section 4.4. Licensee shall not receive from
Sublicensees anything of value in lieu of cash payments in
consideration for any Sublicense under this Agreement without the
express prior written permission of UFRF.

	 	2.2.3	 	“Permitted Deductions” means funds received as
consideration for equity purchases of LICENSEE’S securities by a
sublicense (provided that fair and commercially reasonable sublicense
fees are collected in conjunction with such transaction) and any other
payments received by LICENSEE from any sublicense for purposes of
paying or reimbursing LICENSEE for any future

			
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	 	 	 	research, development, testing, or engineering services actually undertaken by or for LICENSEE
related to any Licensed Product or Licensed Process.
	 
	 	2.2.4	 	Licensee shall provide UFRF with an unredacted
copy of each sublicense agreement and any agreement which transfers
intellectual property rights granted hereunder, within thirty (30) days
prior to the execution of the sublicense agreement.
	 
	 	2.2.5	 	If Licensee is unable or unwilling to serve or
develop a potential market or market territory for which there is a
company willing to be a sublicensee. Licensee will at UFRF’s request,
negotiate in good faith a sublicense with any such sublicensee.

Section 3. Due Diligence

	 	3.1	 	Development.

	 	3.1.1	 	Licensee agrees to and warrants that:

	 	(a)	 	it has, or will obtain, the
expertise necessary to independently evaluate the inventions of
the Licensed Patents;
	 
	 	(b)	 	it will establish and actively
and diligent!), pursue the Development Plan (see Appendix A ) to
the end that the inventions of the Licensed Patents will be
utilized to provide Licensed Products and/or Licensed Processes
for sale in the retail market within the Licensed Field;
	 
	 	(c)	 	it will diligently develop
markets for Licensed Products and Licensed Processes;
	 
	 	(d)	 	and, until the date of first
commercial sale of Licensed Products or Licensed Processes, it
will supply UFRF with a written Development Report annually
fifteen (15) days after the end of the calendar year (see
Appendix B ).

	 	 	 	UFRF’s review of Licensee’s Development Plan is solely to verify the
existence of Licensee’s commitment to development activity and to ensure
compliance with Licensee’s obligations to commercialize the inventions of
the Licensed Patents, as set forth above.

	 	3.1.2	 	Licensee agrees that the first commercial sale
of one or more products to the customer shall occur on or before August
1, 2010 or UFRF shall have the right to terminate the Agreement
pursuant to Section 9.4 hereto. In addition, Licensee will meet the
milestones shown in Appendix D or UFRF shall have the right to

			
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	 	 	 	terminate the Agreement pursuant to Section 9.4. Licensee will notify
UFRF in writing as each milestone is met
	 
	 	3.1.3	 	Licensee agrees that three years after the
Effective Date of this Agreement the Licensee would have achieved one
of the following milestones: a) Completion of at least one sublicense
for rights under the Licensed Patents or Licensed Process or b)
Production of 10 Kilogram sample quantities of the Licensed Products by
the Licensee. If neither of these milestones is met by the License,
then the Licensee shall pay UFRF $[...***...] for a one time,
non-refundable, 2-year extension to meet either milestone. Failure to
meet either milestone after the 2-year extension is a material breach
of this Agreement and grounds for termination pursuant to Section 9.3
hereto.
	 
	 	3.1.4	 	Upon written request by Licensee to negotiate
extensions of any Milestones Due Dates set forth in Appendix D, such
request to be received by UFRF no less than ninety (90) days prior to
any of the Due Dates subject of such request, set forth in this Section
3.1.3, such request fully describing Licensees Commercially Reasonable
Efforts to achieve the Milestone required to be met by such Due Date,
UFRF shall consider in good faith such requests. Upon granting such
request, UFRF and Licensee shall negotiate such extensions in good
faith

	 	 	Section 4. Royalties

	 	4.1	 	License Issue Fee.

	 	 	 	Licensee agrees to pay to UFRF a License Issue Fee of [...***...] within thirty (30)
days of the Effective Date.

	 	4.2	 	Royalty.

	 	4.2.1	 	Royalty on Licensed Patents. In
addition to the Section 4.1 License Issue Fee, Licensee agrees to pay
to UFRF as earned royalties a royalty calculated as a percentage of Net
Sales of Licensed Products which, if not for this Agreement, would
infringe Licensed Patents, in accordance with the terms and conditions
of this Agreement. The royalty is deemed earned as of the earlier of
the date the Licensed Product and/or Licensed Process is actually sold
and paid for, the date an invoice is sent by Licensee or its
Sublicensee(s), or the date a Licensed Product and/or Licensed
Process is transferred to a third party for any promotional reasons.
If the License Product and/or Licensed Process is sold by the
Licensee the royalty shall remain fixed while this Agreement is in
effect at a rate of [...***...] of Net Sales. If the License Product

			
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	 	 	 	and/or Licensed Process is sold by the Sublicensee the royalty shall
be paid to UFRF as specified in Section 2.2.2

	 	4.3	 	Other Payments.

	 	4.3.1	 	Licensee agrees to pay UFRF Minimum Royalty
payments, as follows:

	 	 	 	 	 

	 

	 	Payment
	 	Year
	 

	 	$[...***...]
	 	2010 and every year thereafter on the same
 date, for the life
of this Agreement.

	 	 	The Minimum Royalty shall be paid in advance on a quarterly basis for each year in
which this Agreement is in effect. The first Minimum Royalty payment shall be due
on December 31, 2009 and shall be in the amount of $[...***...]. The Minimum
Royalty for a given year shall be due in advance and shall be paid in quarterly
installments on March 31, June 30, September 30, and December 31 for the following
quarter. Any Minimum Royalty paid in a calendar year will be credited against the
earned royalties for that calendar year. It is understood that the Minimum
Royalties will be applied to earned royalties on a calendar year basis, and that
sales of Licensed Products and/or Licensed Processes requiring the payment of earned
royalties made during a prior or subsequent calendar year shall have no effect on
the annual Minimum Royalty due UFRF for other than the same calendar year in which
the royalties were earned.

	 	4.3.2	 	In addition to all other payments required
under this Agreement, Licensee agrees to pay UFRF Milestone payments,
as follows:

	 	 	 	 	 

	 

	 	Payment
	 	Event
	 

	 	$[...***...]
	 	Issuance of the Licensed Patents

	 	4.4	 	Accounting for Payments.

	 	4.4.1	 	Amounts owing to UFRF under Sections 2.2 and
4.2 shall be paid on a quarterly basis after the amount of Minimum
Royalties paid is exceeded, with such amounts due and received by UFRF
on or before the thirtieth day following the end of the calendar
quarter ending on March 31, June 30, September 30 or December 31 in
which such amounts were earned. All amounts owing to UFRF pursuant to
this agreement which remain unpaid more than thirty (30) days after
they are due to UFRF shall accrue interest until paid at the rate of
the lesser of (a) [...***...] per month or (b) the
maximum amount allowed under applicable law. However, in no event
shall this interest provision be construed as a grant of permission
for any payment delays. Licensee shall also be responsible for
repayment to UFRF of any attorney, collection agency, or other
out-of-pocket UFRF expenses required to collect

			
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	 	 	 	overdue payments due
from this Section 4.4.1, Section 6.2 or any other applicable section
of this Agreement.
	 
	 	4.4.2	 	Except as otherwise directed, all amounts
owing to UFRF under this Agreement shall be paid in U.S. dollars to
UFRF at the following address:

University of Florida Research Foundation, Inc.

223 Grinter Hall

PO Box 115500

Gainesville, Florida 32611-5500

Attention: Business Manager

	 	 	 	All royalties owing with respect to Net Sales stated in currencies other
than U.S. dollars shall be converted at the rate shown in the Federal
Reserve Noon Valuation — Value of Foreign Currencies on the day preceding
the payment.

	 	4.4.3	 	A certified full accounting statement showing
how any amounts payable to UFRF under Section 4.3 have been calculated
shall be submitted to UFRF on the date of each such payment. In
addition to being certified, such accounting statements shall contain a
written representation signed by an executive officer of Licensee that
states that the statements are true, accurate, and fairly represent all
amounts payable to UFRF pursuant to this Agreement. Such accounting
shall be on a per-country and product line, model or trade name basis
and shall be summarized on the form shown in Appendix C of this
Agreement. In the event no payment is owed to UFRF because the amount
of Minimum Royalties paid has not been exceeded or otherwise, an
accounting demonstrating that fact shall be supplied to UFRF.
	 
	 	4.4.4	 	UFRF is exempt from paying income taxes under
U.S. law. Therefore, all payments due under this Agreement shall be
made without deduction for taxes, assessments, or other charges of any
kind which may be imposed on UFRF by any government outside of the
United States or any political subdivision of such government with
respect to any amounts payable to UFRF pursuant to this Agreement. All
such taxes, assessments, or other charges shall be assumed by Licensee.

Section 5. Certain Warranties and Disclaimers of UFRF

	 	5.1	 	UFRF warrants that, except as otherwise provided under Section
17.1 of this Agreement with respect to U.S. Government interests, it is the
owner of the Licensed Patents or otherwise has the right to grant the licenses

			
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	 	 	 	granted to Licensee in this Agreement. However, nothing in this Agreement
shall be construed as:

	 	5.1.1	 	a warranty or representation by UFRF as to the
validity or scope of any right included in the Licensed Patents;
	 
	 	5.1.2	 	a warranty or representation that anything
made, used, sold or otherwise disposed of under the license granted in
this Agreement will or will not infringe patents of third parties;
	 
	 	5.1.3	 	an obligation to bring or prosecute actions or
suits against third parties for infringement of Licensed Patents;
	 
	 	5.1.4	 	an obligation to furnish any know-how not
provided in Licensed Patents or any services other than those specified
in this Agreement; or
	 
	 	5.1.5	 	a warranty or representation by UFRF that it
will not grant licenses to others to make, use or sell products not
covered by the claims of the Licensed Patents which may be similar
and/or compete with products made or sold by Licensee.

	 	5.2	 	EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT.
UFRF MAKES NO REPRESENTATIONS AND EXTENDS NO WARRANTIES OF ANY KIND, EITHER
EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE, AND VALIDITY OF PATENT RIGHTS CLAIMS, ISSUED
OR PENDING. UFRF ASSUMES NO RESPONSIBILITIES WHATSOEVER WITH RESPECT TO USE,
SALE, OR OTHER DISPOSITION BY LICENSEE, ITS SUBLICENSEE(S), OR THEIR VENDEES OR
OTHER TRANSFEREES OF PRODUCT INCORPORATING OR MADE BY USE OF INVENTIONS
LICENSED UNDER THIS AGREEMENT.

Section 6.
Record Keeping

	 	6.1	 	Licensee and its Sublicensee(s) shall keep books and records
sufficient to verify the accuracy and completeness of Licensee’s and its
Sublicensee(s)’s accounting referred to above, including without limitation,
inventory, purchase and invoice records, manufacturing records, sales analysis,
general ledgers, financial statements, and tax returns relating to the Licensed
Products and/or Licensed Processes. Such books and records shall be preserved
for a period not less than six years after they are created, both during and
after the term of this Agreement.
	 
	 	6.2	 	Licensee and its Sublicensee(s) shall take all steps necessary
so that UFRF may, within thirty (30) days of its written request, audit, review
and/or

			
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	 	 	 	copy all of the books and records at a single U.S. location to verify
the accuracy of Licensee’s and its Sublicensee(s)’s accounting. Such review
may be performed by any authorized employees of UFRF as well as by any
attorneys and/or accountants designated by UFRF, upon reasonable notice and
during regular business hours. If a deficiency with regard to any payment
hereunder is determined, Licensee and its Sublicensee(s) shall pay the
deficiency within thirty (30) days of receiving notice thereof along with
applicable interest as described in Section 4.4.1. If a royalty payment
deficiency for a calendar year exceeds three percent (3%) of the royalties paid
for that year, then Licensee and its Sublicensee(s) shall be responsible for
paying UFRF’s out-of-pocket expenses incurred with respect to such review.
	 
	 	6.3	 	At any time during the term of this agreement, UFRF may request
in writing that Licensee verify the calculation of any past payments owed to
UFRF through the means of a self-audit. Within ninety (90) days of the
request, Licensee shall complete a self-audit of its books and records to
verify the accuracy and completeness of the payments owed. Within thirty (30)
days of the completion of the self-audit, Licensee shall submit to UFRF a
report detailing the findings of the self-audit and the manner in which it was
conducted in order to verify the accuracy and completeness of the payments
owed. If Licensee has determined through its self-audit that there is any
payment deficiency, Licensee shall pay UFRF the deficiency along with
applicable interest under Section 4.4.1 with the submission of the self-audit
report to UFRF.

Section 7. Patent Prosecution

	 	7.1	 	UFRF shall diligently prosecute and maintain the Licensed
Patents using counsel of its choice. UFRF shall provide Licensee with copies
of all patent applications amendments, and other filings with the United States
Patent and Trademark Office and foreign patent offices. UFRF will also provide
Licensee with copies of office actions and other communications received by
UFRF from the United States Patent and Trademark Office and foreign patent
offices relating to Licensed Patents. Licensee agrees to keep such information
confidential.
	 
	 	7.2	 	Licensee shall pay to UFRF the sum of $[...***...], within 30
days of the Effective Date which sum represents costs of preparation, filing,
prosecution, issuance, and maintenance of the Licensed Patents incurred prior
to the Effective Date.
	 
	 	7.3	 	Licensee shall be responsible for and pay all past and future
costs and expenses incurred by UFRF for the preparation, filing, prosecution,
issuance, and maintenance of the Licensed Patents within thirty (30) days
of receipt of an invoice from UFRF. It shall be the responsibility of
Licensee to keep UFRF fully apprised of the “small entity” status of

			
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	 	 	 	Licensee and all Sublicensees with respect to the U.S. patent laws and with
respect to the patent laws of any other countries, if applicable, and to
inform UFRF of any changes in such status, within thirty days of any such
change.

Section 8. Infringement and Invalidity

	 	8.1	 	Licensee shall inform UFRF promptly in writing of any alleged
infringement of the Licensed Patents by a third party and of any available
evidence thereof.
	 
	 	8.2	 	During the term of this Agreement, UFRF shall have the right,
but shall not be obligated, to prosecute at its own expense any such
infringements of the Licensed Patents. If UFRF prosecutes any such
infringement, Licensee agrees that UFRF may include Licensee as a co-plaintiff
in any such suit, without expense to Licensee. In the event that shall
undertake the enforcement by litigation and/or defense of the Licensed Patents
by litigation, any recovery of damages by UFRF for any such suit shall be
applied first in satisfaction of any unreimbursed expenses and legal fees of
UFRF relating to the suit. The balance remaining from any such recovery shall
be divided equally between Licensee and UFRF
	 
	 	8.3	 	If within six (6) months after having been notified of any
alleged infringement, UFRF shall have been unsuccessful in persuading the
alleged infringer to desist and shall not have brought and shall not be
diligently prosecuting an infringement action, or if UFRF shall notify Licensee
at any time prior thereto of its intention not to bring suit against any
alleged infringer, then, and in those events only, Licensee shall have the
right, but shall not be obligated, to prosecute at its own expense any
infringement of the Licensed Patents, and Licensee may, for such purposes, use
the name of UFRF as party plaintiff. No settlement, consent judgment or other
voluntary final disposition of the suit may be entered into without the consent
of UFRF, which consent shall not unreasonably be withheld. Licensee shall
indemnify UFRF against any order for costs that may be made against UFRF in
such proceedings.
	 
	 	8.4	 	In the event that Licensee shall undertake the enforcement by
litigation and/or defense of the Licensed Patents by litigation, any recovery
of damages by Licensee for any such suit shall be applied first in satisfaction
of any unreimbursed expenses and legal fees of Licensee relating to the suit,
and next toward reimbursement of UFRF for any legal fees, and unreimbursed
expenses. The balance remaining from any such recovery shall be divided
equally between Licensee and UFRF.
	 
	 	8.5	 	In any infringement suit that either party may institute to
enforce the Licensed Patents pursuant to this Agreement, the other party hereto
shall, at the request and expense of the party initiating such suit, cooperate in all

			
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	 	 	 	respects and, to the extent possible, have its employees testify when
requested and make available relevant records, papers, information, samples,
specimens, and the like.
	 
	 	8.6	 	In the event a declaratory judgment action alleging invalidity
or noninfringement of any of the Licensed Patents shall be brought against
Licensee, UFRF, at its option, shall have the right, within thirty (30) days
after commencement of such action, to intervene and take over the sole defense
of the action at its own expense.
	 
	 	8.7	 	In the event Licensee contests the validity of any Licensed
Patents, Licensee shall continue to pay 50% of the royalties owed to UFRF and
make other payments pursuant to this Agreement with respect to that patent as
if such contest were not underway until the patent is adjudicated invalid or
unenforceable by a court of last resort. Upon resolution of any such contest,
the Licensee’s obligation to pay royalties to UFRF shall be retroactively
restored. Any balance of royalties due to UFRF under 8.7 shall be paid to UFRF
within 30 days of the resolution of any such contest.

Section 9. Term and Termination

	 	9.1	 	The term of this license shall begin on the Effective Date of
this Agreement and continue until the earlier of the date that no Licensed
Patent remains an enforceable patent or the payment of earned royalties under
Section 4.3 once begun, ceases for more than two (2) calendar quarters.
	 
	 	9.2	 	Licensee may terminate this Agreement at any time by giving at
least sixty (60) days written notice of such termination to UFRF. Such a
notice shall be accompanied by a statement of the reasons for termination.
	 
	 	9.3	 	UFRF may terminate this Agreement by giving Licensee at least
thirty (30) days written notice if Licensee:

	 	9.3.1	 	is delinquent on any report or payment
	 
	 	9.3.2	 	provides any false report.
	 
	 	9.3.3	 	is late in paying royalties or any amounts due
to UFRF in two (2) consecutive calendar quarters
	 
	 	9.3.4	 	fails to achieve the milestones described in
Section 3.1.3 after the 2 year extension has lapsed.

	 	 	 	Termination under this Section 9.3 will take effect 30 days after written
notice by UFRF unless Licensee remedies the problem in that 30-day period.

			
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	 	9.4	 	UFRF may terminate this Agreement by giving Licensee at least thirty (90)
days written notice if Licensee:

	 	9.4.1	 	is not diligently developing and
commercializing Licensed Product and Licensed Process

	 	9.4.2	 	misses a milestone described in Appendix D; or

	 	9.4.3	 	is in breach of any provision

	 	 	 	Termination under this Section 9.4 will take effect 90 days after written
notice by UFRF unless Licensee remedies the problem in that 90-day period.

	 	9.5	 	UFRF may immediately terminate this Agreement upon the
occurrence of the second separate default by Licensee within any consecutive
three-year period for failure to pay royalties, patent or any other expenses
when due.

	 	9.6	 	Upon the termination of this Agreement for any reason, nothing
herein shall be construed to release either party from any obligation that
matured prior to the effective date of such termination. Licensee shall remain
obligated to provide an accounting for and to pay royalties earned to the date
of termination, and any Minimum Royalties shall be prorated as of the date of
termination by the number of days elapsed in the applicable calendar year.
Licensee may, however, after the effective date of such termination, sell all
Licensed Products, and complete Licensed Products in the process of manufacture
at the time of such termination and sell the same, provided that Licensee shall
remain obligated to provide an accounting for and to pay running royalties
thereon.

	 	9.7	 	Licensee shall be obligated to deliver to UFRF, within ninety
days of the date of termination of this agreement, complete and unredacted
copies of all documentation prepared for or submitted for all regulatory
approvals of Licensed Products or Licensed Processes.

	 	9.8	 	Upon termination of this Agreement for any reason, any
sublicensee not then in default, as determined by UFRF, shall receive from
UFRF, a grant similar in scope as the grant set forth in the Sublicense
Agreement with the Licensee and all other rights in the Sublicense Agreement
reasonably necessary to continue the business of such sublicensee except the
UFRF shall be under no obligation to grant any rights which UFRF does not have
or to perform any services for which it is unsuited. All payments required to
be made by such sublicensee shall, from the date of termination of this
Agreement, be paid to UFRF.

Section 10. Assignability

			
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	 	 	 	This Agreement may not be transferred or assigned by Licensee except with the prior
written consent of UFRF.

Section 11. Dispute Resolution Procedures

	 	11.1	 	Mandatory Procedures.

	 	 	 	In the event either party intends to file a lawsuit against the other with
respect to any matter in connection with this Agreement, compliance with the
procedures set forth in this Section shall be a condition precedent to the
filing of such lawsuit, other than for injunctive relief. Either party may
terminate this Agreement as provided in this Agreement without following the
procedures set forth in this section.

	 	11.1.1	 	When a party intends to invoke the procedures set forth in this
section, written notice shall be provided to the other party. Within
thirty (30) days of the date of such notice, the parties agree that
representatives designated by the parties shall meet at mutually
agreeable times and engage in good faith negotiations at a mutually
convenient location to resolve such dispute.

	 	11.1.2	 	If the parties fail to meet within the time period set forth in
section 11.1.1 above or if either party subsequently determines that
negotiations between the representatives of the parties are at an
impasse, the party declaring that the negotiations are at an impasse
shall give notice to the other party stating with particularity the
issues that remain in dispute.

	 	11.1.3	 	Not more than 15 days after the giving of such notice of issues, each
party shall deliver to the other party a list of the names and
addresses of at least three individuals, any one of whom would be
acceptable as a neutral advisor in the dispute (the “Neutral Advisor”)
to the party delivering the list. Any individual proposed as a Neutral
Advisor shall have experience in determining, mediating, evaluating, or
trying intellectual property litigation and shall not be affiliated
with the party that is proposing such individual.

	 	11.1.4	 	Within 10 days after delivery of such lists, the parties shall agree
on a Neutral Advisor. If they are unable to so agree within that time,
within 5 days, they shall each select one individual from the lists.
Within 5 days, the individuals so selected shall meet and appoint a
third individual from the lists to serve as the Neutral Advisor.
Within 30 days after the selection of a Neutral Advisor:

	 	(a)	 	The parties shall each provide a
written statement of the issues in dispute to the Neutral
Advisor.

			
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	 	(b)	 	The parties shall meet with the
Neutral Advisor in Gainesville, Florida on a date and time
established by the Neutral Advisor. The meeting must be
attended by persons authorized to make final decisions on behalf
of each party with respect to the dispute. At the meeting, each
party shall make a presentation with respect to its position
concerning the dispute. The Neutral Advisor will then discuss
the issues separately with each party and attempt to resolve all
issues in the dispute. At the meeting, the parties will enter
into a written settlement agreement with respect to all issues
that are resolved. Such settlement agreement shall be final and
binding with respect to such resolved issues and may not be the
subject of any lawsuit between the parties, other than a suit
for enforcement of the settlement agreement.

	 	11.1.5	 	The expenses of the neutral advisor shall be shared by the parties
equally. All other out-of-pocket costs and expenses for the
alternative dispute resolution procedure required under this Section
shall be paid by the party incurring the same.

	 	11.1.6	 	Positions taken and statements made during this alternative dispute
resolution procedure shall be deemed settlement negotiations and shall
not be admissible for any purpose in any subsequent proceeding.

	 	11.2	 	Failure to Resolve Dispute.

	 	 	 	If any issue is not resolved at the meeting with the Neutral Advisor, either
party may file appropriate administrative or judicial proceedings with
respect to the issue that remains in dispute. No new issues may be included
in the lawsuit without the mandatory procedures set forth in this section
having first been followed.

	 	11.3	 	Survival.

	 	 	 	The provisions of this Section shall survive termination of this Agreement.

Section 12. Product Liability; Conduct of Business

	 	12.1	 	Licensee and its Sublicensee(s) shall, at all times during the
term of this Agreement and thereafter, indemnify, defend and hold UFRF, the
Florida Board of Governors, the University of Florida Board of Trustees, the
University of Florida, and each of their directors, officers, employees, and
agents, and the inventors of the Licensed Patents, regardless of whether
such inventors are employed by the University of Florida at the time of the
claim, harmless against all claims and expenses, including legal expenses
and reasonable attorneys fees, whether arising from a third party claim or

			
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	 	 	 	resulting from UFRF’s enforcing this indemnification clause against
Licensee, arising out of the death of or injury to any person or persons or
out of any damage to property and against any other claim, proceeding,
demand, expense and liability of any kind whatsoever (other than patent
infringement claims) resulting from the production, manufacture, sale, use,
lease, consumption, marketing, or advertisement of Licensed Products or
Licensed Process(es) or arising from any right or obligation of Licensee
hereunder. Notwithstanding the above, UFRF at all times reserves the right
to retain counsel of its own to defend UFRF’s, the Florida Board of
Governors’, the University of Florida Board of Trustees’, the University of
Florida’s, and the inventor’s interests.

	 	12.2	 	Licensee warrants that it now maintains and will continue to
maintain liability insurance coverage appropriate to the risk involved in
producing, manufacturing, selling, marketing, using, leasing, consuming, or
advertising the products subject to this Agreement and that such insurance
coverage lists UFRF, the Florida Board of Governors, the University of Florida
Board of Trustees, the University of Florida, and the inventors of the Licensed
Patents as additional insureds. Within ninety (90) days after the execution of
this Agreement and thereafter annually between January 1 and January 31 of each
year, Licensee will present evidence to UFRF that the coverage is being
maintained with UFRF, the University of Florida, and its inventors listed as
additional insureds. In addition, Licensee shall provide UFRF with at least
thirty (30) days prior written notice of any change in or cancellation of the
insurance coverage.

Section 13. Use of Names

	 	 	 	Licensee and its Sublicensee(s) shall not use the names of UFRF, or of the
University of Florida, nor of any of either institution’s employees, agents, or
affiliates, nor the name of any inventor of Licensed Patents, nor any adaptation of
such names, in any sales promotion, advertising, or any other form of publicity
without the prior written approval of UFRF in each case, except that Licensee may
state that it has received a license from UFRF under one or more or the patents
and/or applications comprising the Licensed Patents.

Section 14. Miscellaneous

	 	14.1	 	This Agreement shall be construed in accordance with the
internal laws of the State of Florida

	 	14.2	 	The parties hereto are independent contractors and not joint
venturers or partners.

	 	14.3	 	Licensee shall insure that it applies patent markings that meet
all requirements of U.S. law, 35 U.S.C. §287, with respect to all Licensed
Products subject to this Agreement.

			
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	 	14.4	 	This Agreement constitutes the full understanding between the
parties with reference to the subject matter hereof, and no statements or
agreements by or between the parties, whether orally or in writing, shall vary
or modify the written terms of this Agreement. Neither party shall claim any
amendment, modification, or release from any provisions of this Agreement by
mutual agreement, acknowledgment, or otherwise, unless such mutual agreement is
in writing, signed by the other party, and specifically states that it is an
amendment to this Agreement.

	 	14.5	 	Licensee shall not encumber or otherwise grant a security
interest in any of the rights granted hereunder to any third party.

	 	14.6	 	Licensee acknowledges that it is subject to and agrees to abide
by the United States laws and regulations (including the Export Administration
Act of 1979 and Arms Export Contract Act) controlling the export of technical
data, computer software, laboratory prototypes, biological material, and other
commodities. The transfer of such items may require a license from the
cognizant agency of the U.S. Government or written assurances by Licensee that
it shall not export such items to certain foreign countries without prior
approval of such agency. UFRF neither represents that a license is or is not
required or that, if required, it shall be issued.

	 	14.7	 	Licensee is responsible for any and all wire/bank fees
associated with all payments due to UFRF pursuant to this agreement.

Section 15. Notices

	 	 	 	Any notice required to be given pursuant to the provisions of this Agreement shall
be in writing and shall be deemed to have been given

	 	•	 	when delivered personally,

	 	•	 	if sent by facsimile transmission, when receipt thereof is
acknowledged at the facsimile number of the recipient as set forth
below,

	 	•	 	the second day following the day on which the notice has been
delivered prepaid to a national air courier service, or

	 	•	 	five (5) business days following deposit in the U.S. mail if sent
certified mail, return receipt requested:

	 	15.1	 	If to the University of Florida Research Foundation, Inc.:
	 
	 	 	 	President

University of Florida Research Foundation, Inc.

223 Grinter Hall

University of Florida

			
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	 	 	 	Post Office Box 115500

Gainesville, FL 32611-5500

Facsimile Number: 352-846-0491

	 
	 	 	 	with a copy to:

Office of Technology Licensing

Attn: Director

308 Walker Hall

University of Florida

Post Office Box 115500

Gainesville, Florida 32611-5500

Facsimile Number: 352-392-6600
	 
	 	15.2 	 	If to Licensee:

Stephen J. Gatto

Chief Executive Officer

BioEnergy International, LLC

99 Longwater Circle

Norwell, MA 02061

Facsimile Number: 781-681-5055

Section 16. Contract Formation and Authority

	 	16.1	 	No agreement between the parties shall exist unless the duly
authorized representative of Licensee and the Director of the Office of
Technology Transfer of UFRF have signed this document within thirty (30) days
of the Effective Date written on the first page of this Agreement.
	 
	 	16.2	 	UFRF and Licensee hereby warrant and represent that the persons
signing this Agreement have authority to execute this Agreement on behalf of
the party for whom they have signed.
	 
	 	16.3	 	Force Majeure.
	 
	 	 	 	No default, delay, or failure to perform on the part of Licensee or UFRF
shall be considered a default, delay or failure to perform otherwise
chargeable hereunder, if such default, delay or failure to perform is due to
causes beyond either party’s reasonable control including, but not limited
to: strikes, lockouts, or inactions of governmental authorities, epidemics,
war, embargoes, fire, earthquake, acts of God, or default of common carrier.
In the event of such default, delay or failure to perform, any date or
times by which either party is otherwise scheduled to perform shall be
extended automatically for a period of time equal in duration to the time
lost by reason of the excused default, delay or failure to perform.

Section 17. United States Government Interests

			
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	 	17.1	 	It is understood that the United States Government (through any
of its agencies or otherwise) has funded research, Grant No. DE-FC36-01G011073,
during the course of or under which any of the inventions of the Licensed
Patents were conceived or made. The United States Government is entitled, as a
right, under the provisions of 35 U.S.C. §202-212 and applicable regulations of
Title 37 of the Code of Federal Regulations, to a non-exclusive,
nontransferable, irrevocable, paid-up license to practice or have practiced the
inventions of such Licensed Patents for governmental purposes. Any license
granted to Licensee in this Agreement shall be subject to such right.

	 	17.2	 	Licensee agrees that for Licensed Products covered by the
Licensed Patents that are subject to the non-exclusive royalty-free license to
the United States Government, said Licensed Products will be manufactured
substantially in the United States. Licensee further agrees that it shall
abide by all the requirements and limitations of U.S. Code, Title 35, Chapter
18, and implementing regulations thereof, for all patent applications and
patents invented in whole or in part with federal money.

Section 18. Confidentiality

	 	18.1	 	Each Party shall maintain all information of the other Party
which is treated by such other Party as proprietary or confidential (referred
to herein as “Confidential Information”) in confidence, and shall not disclose,
divulge or otherwise communicate such confidential information to others, or
use it For any purpose, except pursuant to, and in order to carry out, the
terms and objectives of this Agreement, and each party hereby agrees to
exercise every reasonable precaution to prevent and restrain the unauthorized
disclosure of such confidential information by any of its Affiliates,
directors, officers, employees, consultants, subcontractors, sublicensees or
agents. Licensee’s Confidential Information includes but is not limited to the
Development Plan, Development Reports and all other financial and business
reports, strategies, and agreements (including Sublicenses) of Licensee. The
parties agree to keep the terms of this Agreement confidential, provided that
each party may disclose this Agreement to their authorized agents and investors
who are bound by similar confidentiality provisions. Notwithstanding the
foregoing, Confidential Information of a party shall not include information
which: (a) was lawfully known by the receiving party prior to disclosure of
such information by the disclosing party to the receiving party; (b) was or
becomes generally available in the public domain, without the fault of the
receiving party; (c) is subsequently
disclosed to the receiving party by a third party having a lawful right to
make such disclosure; (d) is required by law, rule, regulation or legal
process to be disclosed, provided that the receiving party making such
disclosure shall take all reasonable steps to restrict and maintain to the
extent possible confidentiality of such disclosure and shall provide

			
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	 	 	 	reasonable notice to the other party to allow such party the opportunity to
oppose the required disclosure; or (e) has been independently developed by
employees or others on behalf of the receiving party without access to or
use of disclosing party’s information as demonstrated by written record.
Each party’s obligations under this Section 18 shall extend for a period of
five (5) years from termination or expiration of this Agreement.

Section 19. University Rules and Regulations

	 	19.1	 	Licensee understands and agrees that University of Florida
personnel who are engaged by Licensee, whether as consultants, employees or
otherwise, or who possess a material financial interest in Licensee, are
subject to the University of Florida’s rule regarding outside activities and
financial interests set forth in Florida Administrative Code Rule 6C1-1.011,
the University of Florida’s Intellectual Property Policy, and a monitoring plan
which addresses conflicts of interests associated therewith. Any term or
condition of an agreement between Licensee and such University of Florida
personnel which seeks to vary or override such personnel’s obligations to the
University of Florida may not be enforced against such personnel, the
University of Florida or UFRF, without the express written consent of an
individual authorized to vary or waive such obligations on behalf of the
University of Florida and UFRF. Furthermore, should an interest of Licensee
conflict with the interest of the University of Florida, University of Florida
personnel are obligated to resolve such conflicts according to the guidelines
and policies set forth by the University of Florida.

     IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement on the dates
indicated below.

	 	 	 	 	 

	UNIVERSITY
OF FLORIDA RESEARCH FOUNDATION, INC. 

	 	 
	 
	 	 	 	 
	By: 

	/s/ David L. Day
 

	 	Date: September 27, 2005 
	 

	David L. Day	 	 
	 

	Director, Office of Technology Licensing	 	 
	 
	 	 	 	 
	BIOENERGY INTERNATIONAL, LLC	 	 
	 
	 	 	 	 
	By: 

	/s/ Stephen J. Gatto
 

	 	Date: October 3, 2005 
	 

	Stephen J. Gatto	 	 
	 

	Chief Executive Officer	 	 

			
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Appendix A — Development Plan

BioEnergy will focus on the development and licensing of biocatalysts for the production of lactic
acid, other organic acids, and specialty chemicals. Unlike currently used biocatalysts which use
glucose as a substrate, BioEnergy seeks to develop biocatalysts that efficiently utilize all of the
sugar constituents found in the carbohydrate polymers of plant biomass.

Research to develop the Licensed Patents and Licensed Process will be initially conducted in
collaboration with Dr. Lonnie Ingram. It is BioEnergy’s plan to expand this research effort in the
future, and to develop a complementary in-house research team at the Sid Martin Biotechnology
Institute for commercial testing. Our research efforts will be divided into two areas due in part
to the differences in potential commercial market: I) Lactic acid biocatalysts, and 2) Biocatalysts
for Organic Acids and Specialty Chemicals. Development of the Licensed Patent addresses the later
of the two research areas.

Research Plan for Other Organic Acids and Specialty Chemicals

The initial focus of this work will be to genetically modify the backbone of metabolism to create
an E coli B pre-biocatalyst that can be tailored to the production of individual products.
Although some of the mutations we need have been engineered into a K-12 strain of E. coli, K-12
strains are less robust than derivatives of strain B and K-12 strains have defects which prevent
efficient use of xylose. UF work in this area will accelerate as the Sponsor Program Agreement
increases and as task for lactate are completed. Work on lactate will take precedence initially.
It is hoped that many of the lessons learned with lactate will reduce efforts needed for success
with these new products.

Year I.

	 	1.	 	Develop pre-biocatalyst in E. coli B that lacks all terminal fermentation
pathways and lacks the ability to produce ATP by oxidative phosphorylation.

Year II.

	 	1.	 	Modify pre-biocatalyst for the production of a single product. We select
pyruvic acid as the initial product, a sugar alcohol would be a close second.

	 	2.	 	Evaluate yields and rates with laboratory sugars.

	 	3.	 	Evaluate Stability

Year III

	 	1.	 	Develop strains that can efficiently convert industrial sugar sources.

	 	2.	 	Develop room temperature storage methods for biocatalyst inocula.

	 	3.	 	Explore the use of continuous culture or cell recycle on productivity and yield
with pure sugars and with promising industrial substrates.

			
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Appendix B — Development Report

When appropriate, indicate estimated start date and finish date for activities.

	I.	 	Date Development Plan Initiated and Time Period Covered by this Report.

	II.	 	Development Report (4-8 paragraphs).

	 	A.	 	Activities completed since last report including the object and parameters of
the development, when initiated, when completed and the results.

	 	B.	 	Activities currently under investigation, i.e., ongoing activities including
object and parameters of such

	III.	 	Future Development Activities (4-8 paragraphs).

	 	A.	 	Activities to be undertaken before next report including, but not limited to,
the type and object of any studies conducted and their projected starting and
completion dates.

	 	B.	 	Estimated total development time remaining before a product will be
commercialized.

	IV.	 	Changes to Initial Development Plan (2-4 paragraphs).

	 	A.	 	Reasons for change.

	 	B.	 	Variables that may cause additional changes.

	V.	 	Items to be Provided if Applicable:

	 	A.	 	Information relating to Licensed Products that has become publicly available,
e.g., published articles, competing products, patents, etc.]

	 	B.	 	Development work being performed by third parties, other than Licensee, to
include name of third party,

	 	C.	 	Update of competitive information trends in industry, government compliance (if
applicable) and market plan.

	 	D.	 	Information and copies of relevant materials evidencing the status of any
patent applications or other protection relating to Licensed Products or the Licensed
Patents.

			
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PLEASE SEND DEVELOPMENT REPORTS TO:

University of Florida Research Foundation, Inc.

Attn: Director

308 Walker Hall

P.O. Box 115500

Gainesville, FL 32611-5500

Facsimile: 352-392-6600

			
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Appendix C — UFRF Royalty Report

	 	 	 

	Licensee:__________________________

	 	Agreement No: ______________________
	Inventor:__________________________

	 	P#: _______________________________
	Period Covered:      From: ___________

	 	Through:___________
	Prepared By________________________

	 	Date:______________________________
	Approved By:_______________________

	 	Date: ______________________________

If license covers several major product lines, please prepare a separate report

for each line. Then combine all product lines into a summary report.

	 	 	 

	Report Type:

	 	o Single Product Line Report:
	 
	 

	 	o Multiproduct Summary Report. Page 1 of ________ Pages
	 
	 

	 	o Product Line Detail. Line:______ Tradename:______ Page:_____
	 
	Report Currency:

	 	o U.S. Dollars   o Other

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Period Royalty Amount	 
	 	 	Unit	 	 	Gross	 	 	* Less:	 	 	Net	 	 	Royalty	 	 	 	 	 	 	 
	Country	 	Sales	 	 	$$ Sales	 	 	Allowances	 	 	$$ Sales	 	 	Rate	 	 	This Year	 	 	Last Year	 
	U.S.A.
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Canada
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Europe
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Japan
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Other:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

Total Royalty:__________ Conversion Rate:__________ Royalty in U.S. Dollars: $        
            
            
           

The following royalty forecast in non-binding and for UFRF’s internal planning purposes only:

Royalty Forecast Under This Agreement: Next Quarter:_____ Q2:_____ Q3:_____ Q4:_____

 

*On a separate page, please indicate the reasons for returns or other adjustments if significant.

Also note any unusual occurrences that affected royalty amounts during this period.

To assist UFRF’s forecasting, please comment on any significant expected trends in sales volume.

			
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Appendix D — Milestones

In addition to the research milestones described in Appendix A, the following milestones shall be
completed by the Licensee.

	1.	 	Licensee has already provided UFRF a preliminary business plan, dated April, 2005. By August
1, 2008, Licensee will provide UFRF a detailed document covering Licensee’s plans as to
projected product development, markets and sales forecasts, manufacturing and operations, and
financial forecasts until at least $[...***...] in revenues are achieved (“Business Plan”).
UFRF will treat this Business Plan as confidential information and to protect it as UFRF would
its own confidential information.
	 
	2.	 	By December 1, 2005, Licensee will provide to UFRF a listing of the management team or a
schedule for the recruitment of key management positions.
	 
	3.	 	By December 1, 2008, Licensee will make a prototype / begin animal studies.
	 
	4.	 	By August 1, 2010, Licensee will have a first sale of Licensed Product.
	 
	5.	 	Licensee or a sublicense must sell at least one Licensed Product every six months after the
date of first sale of a Licensed Product.

			
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