Document:

License Agreement dtd October 15, 2004 by & between Kenneth Code, IOWC and BLTI

 EXHIBIT 10.13 
 LICENSE AGREEMENT 
 October 15, 2004 
 This License Agreement (“Agreement”) is made as of this 15th day of October 2004 
 (the “Effective Date”) by and between: 
 Kenneth R. Code individually, and IOWC, a Canadian Corporation owned by Ken Code,
and 
 BioLargo Technologies, 
 Inc., or IOWC’s assigns, with its principal office at 
 1780 Glastonbury Blvd., NW, Unit 4, Edmonton, Alberta T5T6P9 Canada

 (collectively “IOWC”) 
 Licensor and primary researcher and developer 
 And 
 Craig Sundheimer, individually, with his primary residence at 
 6235 Paseo Colina, Carlsbad, CA USA 92009; and

 Lloyd M. Jarvis, individually, with his primary residence at 
 4241 Pierson Dr. Huntington Beach, CA USA 92649 
 and BioLargo, LLC, a to-be-formed California
corporation (or other similarly named LLC), 
 with its principal office at 4241 Pierson Dr. 
 Huntington Beach, CA USA 92649 
 (collectively
“BioLargo”) 
 Licensee and primary commercializing entity as defined herein 
 Recognized as 
 Together, the (“Parties”) and each individually, a
(“Party”) 
 WITNESSETH 
 WHEREAS IOWC
intends to license the rights to BioLargo to use and sub-license certain patents and other technology as defined below (“Technology”) including the right to make, have made, and sell products covered by the Technology
(“Product”), and, 
 WHEREAS such rights are in effect for a “Term”, are limited to a “Territory”, and further limited to
certain “Fields”, and may be exclusive or non-exclusive, and subject to certain sales expectations “Sales Performance Requirements”, all as defined below (collectively “Rights”), and 

 WHEREAS Lloyd M. Jarvis and Craig Sundheimer intend to form a company, BioLargo, LLC, soon after the execution of this
Agreement, and to assign the Rights thereto, and, 
 WHEREAS BioLargo intends to commercialize that Technology subject to its Rights to do so, and hopes to,
but is not obligated to achieve the Sales Goals outlined in Exhibit A, and, 
 WHEREAS BioLargo intends to compensate IOWC for the Rights by paying royalties
to IOWC (“Royalties”), and granting IOWC an equity position in BioLargo (“IOWC Equity Position”), and 
 WHEREAS IOWC intends to
facilitate BioLargo’s commercialization of the Technology by providing BioLargo with a line of credit (“BioLargo Loan”), which BioLargo will repay, and by providing support services to BioLargo (“Support Services”).

 NOW THEREFORE, in consideration of the mutual obligations and promises as set forth herein, the parties do hereby agree as follows: 

 1. Product and Technology 
 a. The Product is defined as: 
 i. An absorptive or super-absorptive pad, sheet, wipe or towel, either
finished with a cover stock or unfinished, in many different shapes, sizes and thicknesses. 
 ii. Product may include a disinfectant, such as
the Potassium Iodide and Copper Sulfate formulae, or other chemical additives, such as bicarbonate. 
 iii. Product may also contain
micro-spheres, powder or beads to enhance absorbency, called super-absorbents. 
 iv. Product is usually constructed of nonwoven fibers
(natural, wood pulp, polymeric, or other), but may be comprised of knitted or other types of textiles, which fibers may also be treated to enhance absorbency. 
 b. The Technology is defined as including: 
 i. US Patents # 6,146,725 and 6,328,929 
 ii. Invention disclosures and filings as they relate to the Product, including the sustained release technology for the disinfectant component.

 iii. Potassium Iodide and Copper Sulfate formulae, their ratios, etc. and methods of sourcing and producing them. 
 iv. Composition and sources of the various super-absorbent components that have been, or may be, incorporated into the Product. 
 v. All manufacturing specifications, testing protocols and methodologies sufficient to enable BioLargo to make or have made Product, and to perform the
required QC and QA on the Product. 
 c. IOWC represents and warrants that it owns the Technology and has the authority and the right to
license the Technology, and shall indemnify BioLargo of any actions against IOWC that claim otherwise. 
 d. All improvements to the
Technology, whatsoever, are the property of IOWC, and will be made available to BioLargo on a right of first refusal basis, and subject to a formula for recovery of IOWC R&D expenses appertaining to the improvements which shall be agreed among
the parties, which agreement will not be unduly withheld by IOWC; see 1(h). 
 e. All improvements shall have a test marketing period of no
more than 24 months during which time no royalties are due or cumulative to either party, and which marketing expenses shall be borne by either party or both subject to their agreement at the time; upon declaration by IOWC, exclusively, the
improvement shall be declared in writing to be commercially viable and offered for licensing, to include for the obligations of both parties under this agreement, and additive to the performance requirements herein by both parties., or in the event
of refusal of its first right by BioLargo, the execution of a license agreement between IOWC and a third party without recourse by BioLargo 
 f. IOWC shall, at its expense, be required to maintain all issued patents in good standing, to diligently pursue the filing of additional patents related to the Technology, and to aggressively prosecute parties in infringement of the
Technology, and to defend any challenges to the Technology’s validity or relevance if such a challenge relates to a claim made by IOWC. 
 g. If IOWC, or its assigns, fail to maintain its patents and Technology, or to defend them, BioLargo shall have the right to maintain and defend the patents and Technology. 

 h. IOWC shall provide R&D services to BioLargo on a project by project basis at BioLargo’s
expense, and shall provide BioLargo with Most-Favored-Nation rates for these projects. 
 i. IOWC shall use its best efforts to ensure that
this Agreement survives intact and in force through any transfer of the Technology to any other entity, including, but not limited to, voting its shares to uphold this Agreement and to preserve the Rights granted to BioLargo. 
 j. BioLargo shall have the right to file for additional patents to protect and extend its Rights granted under this Agreement 

 2. Rights to the Technology granted to BioLargo by IOWC 
 a. The Rights will be granted to Lloyd M. Jarvis and Craig Sundheimer jointly upon execution of this Agreement, and then will be assigned to BioLargo, LLC
(or other named entity if BioLargo, LLC cannot be used as a corporate name). 
 b. This general assignment shall be completed on or before
December 31, 2004. 
 c. The Rights are in effect for a Term of 5 years from the Effective Date of this agreement, and renewable at the
option of BioLargo for an additional term of 5 years. 
 d. The Rights are further limited to the Territory, which is the territory of the
United States of America, and its protectorates. 
 e. The Rights are further limited to the Fields as follows: 
 i. Food Industry – BioLargo has no rights whatsoever. 
 ii. Armed Forces Wound Dressings—BioLargo has no rights whatsoever. 
 iii. Automotive
Industry—BioLargo has no rights whatsoever. 
 iv. Hazardous Material Shipping and Transportation – BioLargo has exclusive rights.

 v. Medical, Healthcare, Laboratory, Life Sciences, Home Care, Self Care, Emergency Services, Homeland Security and Veterinary –
BioLargo has exclusive rights. 
 vi. All Other Fields – BioLargo and IOWC share co-exclusive rights, with rights to sublicense subject
to the approval of the other. 
 f. The Exclusive rights granted in the Fields outlined in this section shall be further subject to the
following Sales Performance Requirements, which if not met in two successive periods, may result, at the option of IOWC, in the downgrading of those Exclusive rights to Non-exclusive rights: 
  

							
	 Period
	  	Sales Performance Requirements	  	 Measured by

	 	  	Period Sales	  	Cumulative Sales	  	 
	Effective Date to Month 6	  	$250,000	  	$250,000	  	End of Period
	Months 7-12	  	$500,000	  	$750,000	  	End of Period
	Months 13-18	  	$1,000,000	  	$1,750,000	  	Annualized Monthly Run Rate
	Months 19-24	  	$1,500,000	  	$3,250,000	  	Annualized Monthly Run Rate
	Year 3	  	$3,000,000	  	$6,250,000	  	Annualized Quarterly Run Rate
	Year 4	  	$5,000,000	  	$11,250,000	  	Annualized Quarterly Run Rate

 i. The Period clock shall begin on January 1, 2005. 
 ii. Sales Performance Requirements may be met for each Period by achieving the sales as outlined above for either Period Sales or the Cumulative Sales up
to and including that Period. 
 iii. Run rates shall be calculated according to standard regression analysis methods. 
 g. BioLargo grants IOWC, on a royalty-exempt basis, the right to manufacture Product in the Territory for sale outside of the Territory for all time. If
any Product subject to this agreement and manufactured under this royalty exemption is found to be sold in the Territory and in the exclusive Fields, then royalties to BioLargo shall become due an payable to BioLargo, originating from the offending
party; IOWC shall assist BioLargo in the recovery of these amounts. 

 h. IOWC, or its assigns, shall use its best efforts to enforce the exclusivity of the Rights granted
under this Agreement against sales of infringing Product distributed by its other licensees. If such cross border sales, either of IOWC licensees’ Product into the Territory, or of BioLargo’s Product outside of the Territory, are difficult
or impossible to prevent, IOWC shall use its best efforts to mediate an equitable sharing of profits between the licensees. 
 3. Royalties 
 a. On BioLargo’s first shipment of 8x8 blood transportation pads to BSI, IOWC shall receive 18% of the Contribution Margin, as defined in this
section. 
 b. No Royalties will be owed by BioLargo to IOWC until BioLargo’s cumulative sales exceed $1,000,000 over and above the
amount of the first BSI shipment. 
 c. However, notwithstanding the above and beginning on the Effective date, an advance payment of $4000
per month shall be due to IOWC (“Advance Payment”). A ledger shall be maintained (“the Ledger”) showing the Advance Payments as negative entries and any Royalties paid as positive entries. Any negative balance may be used as an
offset against any Royalties owed, or 

 
against any project expenses owed to IOWC for its Support Services, and the Ledger adjusted accordingly. Any positive balance may be used to offset against
any Advance Payment owed. The first Advance Payment shall be made to IOWC no later than 14 days after the Effective Date. 
 d. On
BioLargo’s cumulative sales between $1,000,000 and $6,000,000, a royalty as a percent of Contribution Margin will be paid by BioLargo to IOWC in accordance with the following: 
 i. 18% of Contribution Margin for sales of Product covered by issued patents in exclusive Fields. 
 ii. 9% of Contribution Margin for sales of Product covered by issued patents in non-exclusive or co-exclusive Fields. 
 iii. 9% of Contribution Margin for sales of Product utilizing the Technology, but not covered by issued patents in any Field. 
 e. On cumulative sales in excess of $6,000,000, a royalty as a % of Contribution Margin will be paid by BioLargo to IOWC in accordance with the following:

 i. 10% of Contribution Margin for sales of Product covered by issued patents in exclusive Fields. 
 ii. 5% of Contribution Margin for sales of Product covered by issued patents in non-exclusive or co-exclusive Fields. 
 iii. 5% of Contribution Margin for sales of Product utilizing the Technology, but not covered by issued patents in any Field. 
 f. Contribution Margin shall mean Total Sales Less Cost of Goods Sold 
 i. Sales shall be net sales of Product, less any returns, and shall be based on paid invoices. 
 ii. Cost of
Goods Sold shall include the cost of production of Product, including the costs of the raw feed stock, and converting processes; quality assurance and quality control; and freight costs. 
 g. Royalties shall be paid monthly within 15 days of the month’s close. 
 4. IOWC Equity Position: 
 a. IOWC shall receive a 20% non-diluted interest in BioLargo. 
 b. IOWC shall have first right of negotiation for all future investments into BioLargo and to acquire BioLargo. BioLargo shall promptly notify IOWC of the
receipt of a bona fide offer from a third party to invest in or acquire BioLargo, and IOWC shall thereafter have 30 days from the date of that notification to submit its own bona fide offer exceeding the value of the offer in hand, at which time
this right expires. Thereafter all parties are free to negotiate, and BioLargo shall have the sole right to decide upon the offer it feels is the best. 
 c. IOWC shall include Lloyd M. Jarvis and Craig Sundheimer, and other senior BioLargo executives if any, in future ESOP offerings of any companies it forms. 
 5. BioLargo Loan 
 a. IOWC represents and warrants that it
fully intends to make a line of credit available to BioLargo. 
 b. IOWC shall provide, as soon as it is able, a line of credit of $200,000 to
BioLargo. It shall bear an interest rate of .83% per month on the average outstanding balance that month. 

 c. The first year’s cumulative interest is payable 12 months after receipt of the loan. The second
year’s interest will be paid at the end of each quarter. 
 d. The line of credit shall remain available to BioLargo for 24 months from
date the line of credit is established. 
 e. BioLargo shall have the option to convert, on a pro rata basis, the outstanding balance of the
BioLargo Loan principle and interest to a grant of BioLargo equity to IOWC, based on the following formula: balance of the loan divided by $200,000 times 20% of BioLargo stock. 
 f. If BioLargo defaults on the BioLargo Loan obligations, IOWC shall be granted 31% of BioLargo stock, which in addition to its original 20%, will deliver
control of BioLargo to IOWC. 
 g. A separate BioLargo Loan Agreement, embodying the key terms outlined in this section, and providing for
prompt establishment of the line of credit, will be drawn up no later than the date that IOWC receives cumulative external funding of $2,000,000 for its various ventures. 

 6. Support Services 
 a. At BioLargo’s request, and on a project by project basis, IOWC shall provide, at BioLargo’s expense, technical advice, process design, QA/QC, and oversight for manufacturing runs of Product that, in BioLargo’s judgment
require IOWC’s expertise. These project expenses may be reduced by credits, if available, from the Ledger, as provided above. 
 b. IOWC
shall provide to BioLargo all existing and on-going marketing materials and collateral information as they are or arise. 
 c. IOWC shall
provide access to, or a copy of its website content, so that BioLargo can selectively incorporate that material into its own website. IOWC shall also dedicate a portion of its website to BioLargo, and provide appropriate links to BioLargo’s
website, at no charge to BioLargo. 
 7. Miscellaneous 
 a. NON COMPETE: For the term of the License, IOWC and its assigns, affiliates, subsidiaries, parent agents and licensees, shall not compete with BioLargo with Product in BioLargo’s Territory and BioLargo’s exclusive Fields.
Competition shall mean, for the purposes of this Agreement, the sale of any Product anywhere in the world that may be purchased by a customer for use in the Territory that might otherwise reasonably be a purchaser of BioLargo Product in the Field
and in the Territory, regardless of price, value proposition or functional advantages. 
 b. CONFIDENTIALITY: The Confidentiality Agreement
governing the parties is attached in Exhibit B, executed by the Parties on October 1st, 2004, and shall be incorporated into the binding terms of this Agreement. 
 c. FORCE MAJEURE: If the performance by either party of any of its obligations under this Agreement shall be prevented by circumstances beyond its reasonable control which could not have been avoided by the exercise
of reasonable diligence, then such party shall be excused from the performance of that obligation for the duration of the event. The affected party shall promptly notify the other party in writing should such circumstances arise, give an indication
of the likely extent and duration thereof, and shall use commercially reasonable efforts to resume performance of its obligations as soon as practicable. 
 d. NOTICES: Any notice required to be given or made under this Agreement by one of the parties hereto to the other shall be in writing, by personal delivery, registered U.S. mail or overnight courier, addressed to
such other party at its address indicated below, or to such other address as the addressee shall have last furnished in writing to the addressor and shall be effective upon the date of receipt. 
 i. If to IOWC: Kenneth R. Code 
 1780 Glastonbury Blvd. MW Unit 4 
 Edmonton, AB, Canada T5T6P9 
 780-482-2753 
 ii. If to
BioLargo: Craig Sundheimer 
 6235 Paseo Colina 
 Carlsbad, CA 92009 
 760-431-2070 

 e. APPLICABLE LAW/COMPLIANCE: This Agreement shall be governed by and construed in accordance with the
laws of the State of California. Each party hereto shall comply with all applicable laws, rules, ordinances, guidelines, consent decrees and regulations of any federal, state or other governmental authority. Jurisdiction and venue for any dispute
arising out of this Agreement shall be in Orange County, CA and the Parties hereby irrevocably consent to the personal jurisdiction of such courts. 

 f. ENTIRE AGREEMENT: This Agreement and the attachments (Exhibits) contain the entire understanding of
the parties with respect to the subject matter hereof. All express or implied agreements and understandings, either oral or written, heretofore made are expressly merged in and made a part of this Agreement. This Agreement may be amended, or any
term hereof modified, only by a written instrument duly executed by both parties hereto. 
 g. COUNTERPARTS: This Agreement may be executed in
two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
 h. SEVERABILITY/HEADINGS: If any provision of this Agreement is deemed unenforceable, the remainder of the Agreement will not be affected and, if appropriate, the parties will attempt to replace the unenforceable provision with a new
provision that, to the extent possible, reflects the parties’ original intent. The captions and headings used in this Agreement are for reference only and are not to be construed in any way as terms or used to interpret the provisions of this
Agreement. 
 i. ASSIGNMENT: Both parties anticipate the assignment of this Agreement – BioLargo to BioLargo, LLC or other such named
entity, and IOWC to a Newco in formation and in the process of raising funds. Either party may assign this Agreement, with prompt notification of, but without written approval of the other, provided that all of the terms of this Agreement are held
to be in force through-out the assignment, and that such terms of this Agreement shall be honored under penalty of law by the assignee, and provided that such party hereby guarantees the performance by such assignees and affiliates. 
 j. DISPUTE RESOLUTION: The parties hereto shall attempt to settle any dispute arising out of or relating to this Agreement in an amicable way. Any
controversy, claim or right of termination for cause which may arise under, out of, in connection with, or relating to this Agreement, or any breach thereof, shall be settled according to binding arbitration dispute resolution in Orange County, CA.

 k. INDEPENDENT CONTRACTOR: It is understood that both parties hereto are independent contractors and engage in the operation of their own
respective businesses and neither party hereto is to be considered the agent of the other party for any purpose whatsoever and neither party has any authority to enter into any contract or assume any obligation for the other party or to make any
warranty or representation on behalf of the other party. Each party shall be fully responsible for its own employees, servants and agents, and the employees, servants and agents of one party shall not be deemed to be employees, servants and agents
of the other party for any purpose whatsoever. 
 l. PUBLIC ANNOUNCEMENT: IOWC shall make known to its business contacts in the Territory that
BioLargo, and in particular, Craig Sundheimer and Lloyd M. Jarvis, are the licensees of the Technology and will be commercializing, and are authorized to, commercialize, the Product. IOWC shall provide any and all reasonably requested statements or
testimonies to that effect. 
 i. Neither party shall use the name of the other party, its officers, the other party’s employees and
agents for purposes of any public commercial activity without the other party’s prior written consent, except where the name of the other party must be disclosed as a matter of law. Should either party be required by law to make a disclosure,
the disclosing party shall submit a copy of the proposed disclosure to the other party for review. The non-disclosing party shall have three (3) weeks to review and comment on the content of such disclosure. 

 ii. The disclosing party, subject to legal requirements, shall use all reasonable efforts to accommodate
the non-disclosing party’s comments. For non-routine matters like an emergency, special circumstance, or other situation where the law compels a disclosure in less than three (3) week’s time, the non-disclosing party agrees to use
commercially reasonable efforts to provide its review and comment in order to meet the disclosing party’s timetable. 

 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the Effective Date. 
  

									
	Signed	 	 /s/ Kenneth R. Code
	 		 	Signed	 	 /s/ Craig Sundheimer

	Kenneth R. Code, Individually	 		 	Craig Sundheimer, Individually and as
	1780 Glastonbury Blvd. MW Unit 4	 		 	Managing Partner of BioLargo, LLC
	Edmonton, AB, Canada T5T6P9	 		 	6235 Paseo Colina
	780-482-2753	 		 	Carlsbad, CA USA 92009
	Date: October 15, 2004	 		 	760-431-2070
		 		 		 	Date : October 15, 2004
					
	Signed	 	 /s/ Kenneth R. Code
	 		 	Signed	 	 /s/ Lloyd M. Jarvis

	Kenneth R. Code,	 		 	Lloyd M. Jarvis, Individually, and as
	President and CEO of IOWC	 		 	Managing Partner of BioLargo, LLC
		 		 		 	4241 Pierson Dr.
	Date: October 15, 2004	 		 	Huntington Beach, CA USA 92649
		 		 		 	714-840-4223
		 		 		 	Date : October 15, 2004

 Exhibit A 
  

				
	 Period
	  	Sales Forecast
	 Effective Date to Month 6
	  	$	1,000,000
	 Months 7-12
	  	$	2,100,000
	 Months 13-18
	  	$	3,500,000
	 Months 19-24
	  	$	5,700,000
	 Year 3
	  	$	24,200,000
	 Year 4
	  	$	68,000,000

 Exhibit B 
 MUTUAL NONDISCLOSURE AGREEMENT 
 This MUTUAL NONDISCLOSURE AGREEMENT (“Agreement”) is made effective as of
October 1, 2004 by and between three (3) parties (collectively “the Parties”, and individually “each Party”): 
 1) KENNETH R. CODE, residing at 1780 Glastonbury Blvd. MW Unit 4, Edmonton, AB, Canada T5T6P9; Contact Phone: 780-482-2753 
 2)
LLOYD M. JARVIS, residing at 4241 Pierson Dr., Huntington Beach, CA, USA 92649; Contact Phone: 714-840-4223 
 3) CRAIG SUNDHEIMER, residing
at 6235 Paseo Colina, Carlsbad CA 92009, USA; Contact Phone: 760-431-2070. 
 to assure the protection and preservation of the confidential and/or
proprietary nature of information to be disclosed or made available between the Parties in connection with certain negotiations or discussions in contemplation of developing a License Agreement and pursuing the commercialization of the licensed
technology and products, and the furtherance of a business and scientific relationship between the Parties. 
 WHEREAS, in order to pursue these negotiations
or discussions, the Parties have agreed to mutual disclosures of certain data and other information which are of a proprietary and confidential nature (as defined in paragraph 1 below and referred to herein as “Confidential Information”).

 NOW, THEREFORE, in reliance upon and in consideration of the following undertakings, and for other good and valuable consideration, the receipt of which
is hereby acknowledged, the Parties to this Agreement hereby agree as follows: 
 1. Subject to the limitations set forth in Paragraph 2, Confidential
Information shall mean any information, process, technique, instrumentation or tooling, software, chemical formula or composition, super-absorbent composition or method of application or sourcing or production, test data, QA/QC testing protocols,
any research project or clinical investigation, invention disclosures or technology improvements, work in process, development, engineering, manufacturing, marketing, servicing, financing or personnel matter relating to the disclosing party, its
present or future products, suppliers, customers, employees, investors, or business, or the existence or content of this Agreement, or the Key Terms Agreement between these same Parties, and executed contemporaneously with this Agreement.

 2. The term “Confidential Information” shall not be deemed to include information which, to the extent that the recipient can establish by
competent written evidence: 
 a. at the time of disclosure is in the public domain; 

 b. after disclosure, becomes part of the public domain by publication or otherwise, except by
(i) breach of this Agreement by the recipient or (ii) disclosure by any person or affiliate company to whom Confidential Information was disclosed under this Agreement; 
 c. was (i) in recipient’s possession in documentary form at the time of disclosure by the disclosing party or (ii) independently developed
by or for recipient by people who had no knowledge of or access to the Confidential Information; 
 d. recipient received from a third party
who had the lawful right to disclose the Confidential Information and who did not obtain the Confidential Information either directly or indirectly from the disclosing party; or 
 e. is required by law, regulation or court order to be disclosed. In the event that Confidential Information is required to be disclosed pursuant to
subsection (e), the party required to make such disclosure shall notify the other party to allow that other party to use the exclusions or exemptions that are available to the other party under such law, regulation or court order. 
 For the purpose of this Paragraph, Confidential Information received by any Party hereunder shall not be deemed to fall within any of the foregoing exceptions merely
because it is embraced by general information within any such exception(s). In addition, any combination of features received as Confidential Information by any Party hereunder, shall not be deemed to fall within any of the foregoing exceptions
merely because individual features are separately within any such exception(s), but only if the combination itself, and its principle(s) of operation, is within such exception(s). 
 3. Each party shall maintain in trust and confidence and not disclose to any third party or 
 use for any unauthorized
purpose any Confidential Information received from the other party. Each party may use such Confidential Information only to the extent required for the purposes described herein. Confidential Information shall not be used for any purpose or in any
manner that would constitute a violation of any laws or regulations, including, without limitation, the export control laws of the United States. No other rights or licenses to trademarks, inventions, copyrights, or patents are implied or granted
under this Agreement and no Confidential Information disclosed by any Party will be used by the other party to file a patent application. 
 4. Confidential
Information supplied shall not be reproduced in any form, except as required to continue discussions or to accomplish the purposes described herein. 
 5.
The responsibilities of the Parties are limited to using their reasonable and best efforts to protect the Confidential Information from unauthorized use or disclosure. The Parties shall advise their employees or agents who might have access to such
Confidential Information of the confidential nature thereof. No Confidential Information shall be disclosed to any officer, employee or agent of any Party who does not have a need to know such information for the purposes described herein and who is
not bound by a written agreement with that party to maintain Confidential Information in confidence. 

 6. All Confidential Information (including copies thereof) shall remain the property of the 
 disclosing party, and shall be returned to the disclosing party after the recipient’s need for it to accomplish the purposes of this Agreement has expired, or within
twenty (20) days of a written request by the disclosing party. However, the recipient may retain one complete copy of the Confidential Information in a secure location for recipient’s archival purposes to assure compliance with this
Agreement. 
 7. This Agreement may be terminated at any time upon ten (10) days written notice to the other party, and, unless sooner terminated, shall
automatically terminate twelve (12) months from the effective date hereof. The termination of this Agreement shall not relieve any Party of the obligations imposed by this Agreement with respect to Confidential Information disclosed prior to
the effective date of such termination and the provisions hereof shall survive for a period of five (5) years from the date hereof, or such time as the substance of the disclosure has entered the public domain through no fault or negligence on
the part of recipient, or until permission is specifically granted in writing to the recipient by the disclosing party to release or make use of the Information otherwise than as stated herein. The undertakings herein shall be binding upon the
Parties and their respective affiliates, parents, subsidiaries or successors. 
 8. This Agreement shall be governed by the laws of the State of California
as those laws are applied to contracts entered into and to be performed in California. Jurisdiction and venue for any dispute arising out of this Agreement shall be in the county of Orange, California and hereby irrevocably consent to the personal
jurisdiction of such courts. 
 9. No Party shall reveal the fact that Confidential Information has been disclosed pursuant to this Agreement, nor that any
Party is conducting, or has conducted, discussions or negotiations in contemplation or furtherance of a business relationship. It is understood that disclosure pursuant to this Agreement is not a public disclosure or sale or offer for sale of any
product, but is made for the limited purposes relating to potential joint business activities stated herein. 
 10. This Agreement contains the entire
agreement of the Parties with respect to the confidentiality and nondisclosure of the Information, and shall supersede any and all prior agreements and understanding relating thereto. The unenforceability of any provision of this Agreement shall not
affect the enforceability of any other provision of this Agreement. No change, modification alteration or addition of or to any provision of this Agreement shall be binding unless in writing and executed by or on behalf of the Parties by a duly
authorized representative. Neither this Agreement nor the disclosure of any Confidential Information pursuant to this Agreement by any party shall restrict such party from disclosing any of its Confidential Information to any third party.

 11. Each party hereby acknowledges and agrees that in the event of any breach of this Agreement, including, without limitation, the actual or threatened
disclosure of a disclosing party’s Confidential Information without the prior express written consent of the disclosing party, the disclosing party will suffer an irreparable injury, such that no remedy at law will afford it adequate protection
against, or appropriate compensation for, such injury. Accordingly, each party hereby agrees that the other party shall be entitled to specific performance of recipient’s obligations under this Agreement, as well as such further injunctive
relief as may be granted by a court of competent jurisdiction. 

 12. This Agreement supercedes and replaces the BioLargo USA, Inc. Confidentiality, Non- Compete, and Non-Disclosure
Agreement dated June 30, 2004 executed by Lloyd M. Jarvis and Craig Sundheimer, and Victor E. Penan, who was not duly authorized to execute same agreement on behalf of BioLargo USA, Inc. Such agreement is null and void, and no terms shall
survive it. 
 IN WITNESS WHEREOF, the Parties have by duly authorized persons, executed this Agreement, effective as of the date first above written.

  

									
	Signed	 	 /s/ Kenneth R. Code
	 		 	Signed	 	 /s/ Craig Sundheimer

	Kenneth R. Code	 		 	Craig Sundheimer,
	1780 Glastonbury Blvd. MW Unit 4	 		 	6235 Paseo Colina
	Edmonton, AB, Canada T5T6P9	 		 	Carlsbad, CA U 1/8SA
92009
	780-482-2753	 		 	760-431-2070
	Date: October 1, 2004	 		 	Date : October 1, 2004
					
	Signed	 	 /s/ Kenneth R. Code
	 		 	Signed	 	 /s/ Lloyd M. Jarvis

	Kenneth R. Code,	 		 	Lloyd M. Jarvis
	Vice Chairman of BioLargo Technologies, Inc.	 		 	4241 Pierson Dr.
	President and CEO of IOWC	 		 	Huntington Beach, CA USA 92649
	780-482-2753	 		 	714-840-4223
	Date: October 1, 2004	 		 	Date : October 1, 2004Master Distribution Agreement dtd January 15, 2005

 EXHIBIT 10.14 
 Master Distributorship Agreement 
 Recitals 
 This Master Distributorship Agreement, (“Agreement”), is executed this date of January 15, 2005, by and between IOWC Technologies, Inc.,
(“IOWC”), Kenneth Reay Code individually (collectively (“IOWC”), and Food Industry Technologies, Inc. (“Newco”), which is the process of being formed and shall be formed by John Runyan and Doug Goularte on or before
January 15, 2005. This agreement shall become effective upon the date that Newco is properly formed on or about January 15, 2005. 
 IOWC desires
to appoint Newco and Newco desires to accept appointment, as a Master Distributor of IOWC products within a defined area as set forth herein. 
 NOW
THEREFORE, in consideration of the mutual agreements and promises set forth herein, the parties agree as follows: 
  

	 	1.	Agreements and Parties: 

  

	 	a.	IOWC hereby grants to Newco the exclusive right, on the terms and conditioned herein (as described in Section 4 below), to purchase, inventory, promote and resell Products, (as
defined below in Section 2) within defined “Territory” as defined below in Section 3. 

  

	 	b.	IOWC intends to grant the rights to Newco to sell products created by and with certain patents and other technology as defined in section 2. (“Technology”) and to sell
those products covered by the Technology and it’s related applications, (“Product”), and 

  

	 	c.	Such rights are in effect for a “Term”, are limited to a “Territory”, and further limited to certain “Fields”, and are further defined as exclusive or
non-exclusive, and subject to certain “Minimum Sales Performance Requirements” (Collectively “Rights”), and 

  

	 	d.	Newco intends to commercialize that Technology subject to its Rights to do so, and, 

  

	 	e.	Newco promises to compensate IOWC for the Rights by paying Mark Up Fees to IOWC, and 

  

	 	f.	IOWC intends to provide fee-based support services to Newco (“Support Services”) 

  

	 	2.	Products and Technology 

  

	 	a.	The Product is defined as: 

  

	 	i.	An absorptive or super-absorptive pad, sheet, wipe or towel, either finished with a cover stock or unfinished, in many different shapes, sizes and thickness, which are to be used as
a meat soaker in the Food Industry; 

	 	ii.	A spray wash formulation for treating and lowering the bacteria count on certain food processing applications and products related to that process; 

  

	 	iii.	Product may include a disinfectant, such as the Potassium Iodide and Copper Sulfate formulae, or other chemical additives; 

  

	 	iv.	Product may also contain micro-prills, powder or beads to enhance absorbency, called super-absorbents; 

  

	 	v.	Product is usually constructed of nonwoven fibers (natural, wood pulp, polymeric, or other), but may be comprised of knitted or other types of textiles, which fibers may also be
treated to enhance absorbency. 

  

	 	b.	The Technology is defined as including: 

  

	 	i.	US Patents 6,146,725 and 6,328,929; 

  

	 	ii.	Invention disclosures and filings as they relate to the Product, including the sustained release technology for the disinfectant component; 

  

	 	iii.	Potassium Iodide and Copper Sulfate formulae, their ratios, etc. and methods of sourcing and producing them; 

  

	 	iv.	Composition and sources of the various super-absorbent components that have been, or may be, incorporated into the Product; 

  

	 	v.	All manufacturing specifications and know-how, testing protocols and methodologies sufficient to enable Newco to sell Product, 

  

	 	vi.	All future improvements to the Technology, if they relate to the Product; 

  

	 	vii.	All iodine-based technology will receive FDA approval before acceptance by Newco 

  

	 	c.	IOWC shall, at its expense be required to maintain all issued patents in good standing, to diligently pursue the filing of additional patents related to the Technology, and to
aggressively prosecute parties in infringement of the Technology, and to defend any challenges to the Technology’s validity or relevance; 

  

	 	d.	IOWC shall provide specific consulting services on a fee-for-services basis to Newco as agreed in writing between the parties, on a project by project basis at Newco’s expense,
and shall provide Newco with Most-Favored-Nation rates for these projects; 

  

	 	e.	IOWC represents and warrants that it owns the Technology and or has certain intellectual property and trade secrets that enable it to produce and deliver the Products called for in
this Agreement, and has the authority and the right to enter into this agreement with Newco; 

  

	 	f.	IOWC shall ensure that this Agreement survives intact and in force through any transfer or continuance of the Technology to any other entity or political jurisdiction;

  

	 	g.	In the event of force Majeure (e.g. death, of the inventor or principals) or the bankruptcy or demise of IOWC, or the entity owning or controlling the Technology, Newco shall have
the right, in its discretion, to maintain and defend the patents and Technology, and to file for additional patents to protect its Rights granted under this Agreement; 

	 	h.	In the event of the liquidation, dissolution or demise of Newco, IOWC shall repurchase all rights as they exist at the time for $10.00 without recourse by any third party;

  

	 	i.	The Parties agree to share co-branding of the products to be used in the Food Industry; Newco shall have the option and the right to develop the branding for the products in its
territory and shall trademark and secure such legal rights to the brand name; Newco shall at all times prominently acknowledge the technology in and on all of its promotional literature and advertising; 

  

	 	j.	Newco hereby authorizes IOWC, at its sole discretion; to use the Newco brand that it developed in areas that Newco does not have exclusive or non-exclusive rights.

  

	 	k.	Newco hereby acknowledges that certain Canadian distributors and the licensees are subject to head office procurement practices which are located on the territory of Newco and that
every reasonable effort will be made to segregate and rationalize such sales on the territory to determine and accomplish royalties due to the Canadian licensee, and sales credit to any Canadian distributor, and likewise, to the extent such
circumstances also affect Newco as a result of efforts of Canadian or other distributorship sales efforts being shipped into the United States. 

  

	 	l.	The parties have agreed to the preliminary schedule for continued Product Development by IOWC as described in Attachment A, incorporated by reference to this agreement. The schedule
is a preliminary estimate of the product development cycle and is intended to provide a broad outline of the desired goals for the Parties, and not be considered binding on the parties as to delivery dates required by IOWC, but rather a projected
target schedule. IOWC shall pursue said efforts on a best efforts basis. It is further agreed that to the extend IOWC is materially deficient in meeting the projected schedule as stated in Attachment A “Product Development”, and said
deficiency has a material impact on Newco’s ability to meet its Minimum Sales Performance Requirements, after the first twelve-month period, then, the parties shall adjust the Distributorship Periods accordingly. 

  

	 	3.	Territorial Rights and Term of the Agreement 

  

	 	a.	The Rights to be the Master Distributor are in effect for a total Term of 10 years from the execution of this agreement, and with an option to extend the total term for 3
additional 5 year terms; 

  

	 	b.	The Rights are further limited to the Territory, which is the territory of the United States of America, Latin America, the Caribbean, New Zealand, and Mexico as more fully
defined below: 

  

	 	i.	The rights to the United States of America and New Zealand are Exclusive subject to this agreement; 

	 	ii.	All other locations for the territorial rights are subject to non-exclusivity; 

  

	 	iii.	The Caribbean territory is defined as the following nations: 

  

	 	1.	St. Thomas 

  

	 	2.	Puerto Rico 

  

	 	3.	Barbados 

  

	 	4.	Jamaica 

  

	 	5.	Trinidad 

  

	 	6.	Aruba 

  

	 	iv.	IOWC and Newco shall review sales volumes of each Territory that is defined as non-exclusive from time to time to negotiate a written agreement, whereby the non-exclusive
Territories may be designated as Exclusive Territories. 

  

	 	c.	The Rights are further limited to the Fields as follows: 

  

	 	i.	Food Industry—defined as any business or entity that processes, uses, sells, etc. food and it’s by products. Newco has exclusive rights in the USA and certain
non-exclusive rights in other territories as defined above. 

  

	 	ii.	The Food Industry shall include the products for use in USA operated by military commissaries, wherever they may be located, subject to Newco’s securing said rights from the US
Military within the first two years of this Agreement. If for any reason Newco is unable to secure the US Military supplier agreements within one year, then they shall be deemed to be non-exclusive. If for any reason, having secured existing
customer relationships with the US Military, then Newco fails to maintain its agreements with the US Military for any consecutive 12-month period, and then the US Military shall be deemed to be non-exclusive to Newco. To the extent that IOWC is able
to facilitate business relationships to and with the Military during the first two years, the Parties shall negotiate in good faith, on a best efforts basis, to work together to pursue these business opportunities. 

  

	 	iii.	Armed Forces Wound Dressings—Newco has no rights whatsoever. 

  

	 	iv.	Automotive Industry—Newco has no rights whatsoever. 

  

	 	v.	Hazardous Material Shipping and Transportation—Newco has no rights whatsoever; 

  

	 	vi.	Medical, Healthcare, Laboratory, Life Sciences, Home Care, Self Care, Emergency Services, Homeland Security and Veterinary—Newco has no rights whatsoever;

  

	 	vii.	All Other Fields—Newco and IOWC share co-exclusive rights, with rights to sublicense subject to the approval of the other. 

  

	 	d.	The Exclusive rights granted in the Fields outlined in section 3.c. shall be further subject to the following Minimum Sales Performance Requirements, which if not met in two
consecutive six-month periods, (for the first two years, and then annually thereafter), may result, at the option of IOWC, in the downgrading of those Exclusive rights to Non-exclusive rights: 

  

									
	 Period
	  	Minimum Sales
Performance
Requirements
for the Period to
Maintain
Exclusive Rights	  	Sales Goal for
the Period	  	 Measured by

	 Months 1-6
	  	$	250,000	  	$	500,000	  	End of Six Month Period
	 Months 7-12
	  	$	1,000,000	  	$	3,000,000	  	End of Six Month Period
	 Months 13-18
	  	$	2,000,000	  	$	5,000,000	  	End of Six Month Period
	 Months 19-24
	  	$	3,500,000	  	$	7,000,000	  	End of Six Month Period
	 Year 3
	  	$	8,000,000	  	$	15,000,000	  	Annualized Quarterly Run Rate
	 Year 4
	  	$	10,000,000	  	$	24,000,000	  	Annualized Quarterly Run Rate
	 Subsequent Years
	  	$	15,000,000	  	$	30,000,000	  	Annual Quarterly Run Rate

	 	i.	The Distributorship Period clock shall begin on or upon delivery of samples, acceptable to the Parties, with the understanding that IOWC will be able and ready to fulfil orders for
the first confirmed order by Newco within approximately 45 days from its submission. 

  

	 	ii.	Minimum Sales Performance Requirements, and Sales Goals are for the Period only and not to be construed as cumulative from period to period; 

  

	 	iii.	The Parties, upon the occurrence of material events beyond the control of Newco or IOWC, which shall include but be limited to; labor disputes, acts of God, terrorism, or similar
events, shall adjust these requirements. 

  

	 	4.	Compensation to IOWC 

  

	 	a.	For the distributorship period IOWC shall mark up the products at a level equal to 15% on net cost of products (which shall be referred to as a Mark Up Fee) on each purchase order
for products received from Newco and performed by IOWC, and will invoice Newco based on sight bills of lading or supplier invoices for payment in full within 15 days of delivery to Newco or Newco’s designated delivery point. Cost shall include
the variable cost of production of Product, including the costs of the raw feedstock, and converting processes, quality assurance, and quality control expenses submitted by the supplier, as specified by IOWC on each order. 

	 	b.	For the distributorship period, IOWC shall receive minimum monthly standby fees and expenses which shall be credited for purposes of offset against Mark Up Fees in any one month,
but with carry forward, so long as IOWC is able to realize a minimum Mark Up Fee level per year of not less than $84,000, along the following lines: 

  

	 	i.	A one-time retainer of $15,000; 

  

	 	ii.	Standby charges of $7000 per month in advance 

  

	 	iii.	Travel and all other order processing expenses by voucher 

  

	 	5.	Support Services 

  

	 	a.	At Newco’s request and expense, IOWC may provide technical advice, training, process design, Quality Assurance and Quality Control, QA/QC, and oversight for manufacturing runs
of Product that, in Newco’s judgment require IOWCs expertise; 

  

	 	b.	A contract of Master Distributorship is assumed at all times 

  

	 	c.	Schedule of specific IOWC fees: 

  

	 	i.	Kenneth Code: $800 per diem 

  

	 	ii.	Dr. Ray Marusyk: $800 per diem (Microbiology) 

  

	 	iii.	Jillianne Code, Montage Studios (Web related), $78.00 per hour 

  

	 	iv.	Peter Code, P.Eng. $1000 per diem 

  

	 	v.	Travel and all other expenses at cost 

  

	 	d.	IOWC shall provide to Newco all existing marketing materials and collateral information on request; 

  

	 	e.	IOWC shall provide access to, or a copy of its website content, so that Newco can selectively incorporate that material into its website. IOWC shall also dedicate a portion of its
website to Newco, and provide appropriate links to Newco’s website, at no charge to Newco; 

  

	 	6.	Miscellaneous 

  

	 	a.	Assignment IOWC may at any time in its sole discretion transfer or assign its rights and obligations et forth in this Agreement to a third party upon notice to Newco;

  

	 	b.	Default “Default” shall mean the non-delivery of any funds, for two consecutive periods, under this agreement after 15 days from their due date(s);

  

	 	c.	No Competition For the term of the Master Distributor Agreement, IOWC and Newco mutually agree that neither they nor its assigns, affiliates, subsidiaries, parent and agents
shall not compete with the other party with any of their Products or technologies in Newco’s Territory, nor with IOWCs technology in any market. 

	 	d.	Samples Newco shall pay the cost, (with no Mark Up Fee) of any and all samples. Newco and IOWC shall confirm specifications, delivery and pricing prior to ordering samples.

  

	 	e.	No Assignment of Rights or Delegation of Duties by Newco’s, IOWCs Right to Assign. Distributor ‘s rights and benefits under this Agreement are personal to
Distributor and therefore no such right or benefit shall be subject to voluntary or involuntary alienation, assignment or transfer. IOWC may assign its rights and delegate its obligations under this Agreement to any other person or entity and this
Agreement shall be binding on any successor-in-interest to IOWC by sale, merger or otherwise. 

  

	 	f.	Entire Agreement; Waivers. This Agreement constitutes the entire agreement between the parties pertaining to the contemporaneous agreements, representations, and
understandings of the parties, and This Agreement supersedes any and all other agreements, in their entirety any and all prior verbal either oral or in writing, between the parties with respect ten agreements pertaining to the subject matter hereof
and contains all of the covenants and agreements between the parties with respect to the services to be rendered by Newco to the IOWC in any manner whatsoever. Each party to this Agreement acknowledges that no representations, inducements, promises
or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein, and that no other agreement, statement or promise not contained in this Agreement shall be valid or binding on
either party. 

  

	 	g.	Waiver. No waiver of any term or provisions of this Agreement will be valid unless such waiver is in writing signed by the party against whom enforcement of the waiver is
sought. No waiver or breach of any agreement or provision of this Agreement shall be deemed a waiver of any preceding or succeeding breach thereof or a waiver or relinquishment of any other agreement or provision or right or power contained in this
Agreement. 

  

	 	h.	No Third Party Beneficiaries. Nothing in this Agreement, whether expressed or implied, is intended to create any third party beneficiary obligations and the parties hereto
specifically declare that no person or entity, other than as set forth in this Agreement, shall have any rights hereunder or any right of enforcement hereunder. Confer any rights or remedies under or by reason of this Agreement on any persons other
than the parties to it and their respective successors and assigns, nor is anything in this Agreement intended to relieve or discharge the obligation or liability of any third person to any party to this Agreement, nor shall any provision give any
third persons any right of subrogation or action over against any party to this Agreement. 

  

	 	i.	 Severability. If any term or provision of this Agreement is found to be invalid, illegal or unenforceable under present or future laws effective during the
term of this Agreement, then and, in that event (i) the performance of the offending term or provision (but only to the extent its application is invalid, illegal or unenforceable) shall be excused as if it had never been incorporated in to
this Agreement, and, in lieu of such excused provision, there shall be added a provision as similar in terms and amount to such excused provision as may be possible and be legal, valid and enforceable, and (ii) the remaining 

	 	 
part of this Agreement shall not be affected thereby and shall continue in any jurisdiction, then such term shall be enforced to the maximum extent permitted
by law, rather than voided, and the remaining terms of this Agreement shall remain in full force and effect to the fullest extent provided by law. 

  

	 	j.	Preparation of Agreement. It is acknowledged by each party that such party either had separate and independent advice of counsel or the opportunity to avail itself or himself
of same. In light of these facts it is acknowledged that no party shall be construed to be solely responsible for the drafting hereof, and therefore any ambiguity shall not be construed against any party as the alleged draftsman of this Agreement.

  

	 	k.	Force Majeure. The Parties shall be excused from performance, and shall have no liability, for any period and to the extent that they are prevented, hindered or delayed from
performing any obligation in this Agreement, in whole or in part, due to any cause(s) beyond such Party’s reasonable control, including without limitation, fire, flood, blackouts, earthquake, elements of nature or acts of God, acts of war,
terrorism, riots, civil disorders, rebellions or revolutions, strikes, lockouts or labor difficulties, shortage or inability to obtain material or equipment (including failure or delay of third party suppliers). 

  

	 	l.	Notices. All notices, requests, demands, and other communications under this Agreement shall be in writing and shall be deemed to have been duly given (i) on the date of
service if served personally on the party to whom notice is to be given, (ii) by private airborne/overnight delivery service or on the fifth day after mailing if mailed to the party to whom notice is to be given, by first class mail, registered
or certified, postage prepaid, and properly addressed as follows: 

  

					
	 To Company:
	 		  	 Kenneth R. Code
 IOWC Technologies
Inc.

		 		  	1780 Glastonbury Blvd. NW Unit 4
		 		  	Edmonton, AB, Canada T5T6P9
			
	 To Distributor:
	 		  	
	 Newco
	 		  	 Food Industry Technologies, Inc.
 John Runyan,
CEO

			
		 		  	Phone: 949.481.6485

 Any party may change his/her or its address for purposes of this paragraph by giving written notice of
the new address to each of the other parties in the manner set forth above. 
  

	 	m.	Attorneys’ Fees and Costs. In the event that any legal proceeding is brought to enforce or interpret any of the rights or obligations under provisions of this Agreement,
the prevailing party shall be entitled to recover reasonable attorneys’ fees, costs and disbursements in addition to any other relief to which the prevailing party may be entitled whether or not the action or proceeding proceeds to final
judgment. 

  

	 	n.	Remedies. It is understood and agreed that this Agreement is intended to confer a benefit, directly or indirectly, on the IOWC and that any Material Breach, as defined in
Section 7, of the provisions of this Agreement by Newco will result in irreparable injury to the IOWC and that the remedy at law alone will be an inadequate remedy for such breach. Accordingly, Newco agrees that if Newco breaches any portion of
this Agreement, the IOWC shall be entitled, in addition to any other remedies which the IOWC may have, to enforce the specific performance of this Agreement by Newco through both temporary and permanent injunctive relief without the necessity of
posting a bond or proving actual damages, but without limitation of their right to damages and any and all other remedies available to them, it being understood that injunctive relief is in addition to, and not in lieu of, such other remedies.

  

	 	o.	Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which shall constitute one and the same
instrument. 

  

	 	p.	Governing Law The laws of California shall govern this Agreement. Any legal disputes shall be filed in Orange County, CA., and IOWC and Newco shall pursue binding arbitration
to resolve any disputes. 

  

	 	7.	Termination Provisions 

 The parties may terminate
this agreement at any time by written mutual consent or by force Majeure, and/or Material Breach. Material Breach by Newco shall be defined as the sustained non-payment of fees properly due, breach of non-compete provisions or the breach of
confidentiality of trade secrets. Material Breach by IOWC shall be defined as the failure to timely develop or deliver acceptable Products to Newco, in accordance with the terms of an agreed upon Purchase Order. 
  

	 	8.	Actions to Closing 

  

	 	q.	The parties of the Master Distributor Agreement shall execute confidentiality agreements, which are incorporated in this agreement by reference. 

	 	r.	Newco shall pay to IOWC a one-time fee of $15,000 (retainer) due and payable on or before, January 15, 2005 as the required legal consideration for this agreement, and issue a
blanket purchase order as follows: 

  

	 	i.	20,000 cases of soaker pads at an aggregate price not to exceed $16.00 per case subject to release as follows: 

  

	 	1.	Confirmation of price, detailed specifications as to quantities, size, color, and absorbency per unit, and deliveries as approved by Newco; 

  

	 	2.	Confirmation of detailed specification by IOWC; 

  

	 	3.	Subject to the credit requirements of the manufacturer and/or converter relative to IOWCs obligations to those parties, which then may include as a down payment or letter of credit
posted in favor of IOWC, by Newco, as may be required, for the first order placed by Newco to IOWC; 

  

	 	s.	IOWC shall facilitate communications and education of Newco executives with regards to systems, processes, manufacturers and converters to facilitate Newco’s execution of its
obligations under this Agreement subject to the fee arrangements herein. 

  

	 	10.	Signature and Notice Page (executed copy on following page) 

  

					
	Signed	 	 /s/ Kenneth R. Code
	 	
	 Kenneth R. Code, President
	 	
	 IOWC Technologies Inc.
	 	
	 1780 Glastonbury Blvd. MW Unit 4
	 	
	 Edmonton, AB, Canada T5T6P9
	 	
	 780-482-2753
	 	
	 Ken.code@shaw.ca
	 	
			
	Signed	 	 /s/ John Runyan
	 	
	 John Runyan, CEO
	 	
	 Food Industry Technologies, Inc.
	 	
			
	 Phone:
	 	 949.481.6485
	 	
	 Phone:
	 	 949.481.6487
	 	
	jsrandr@cox.net	 	
			
	Signed	 	 /s/ Doug Goularte
	 	
	 Doug Goularte, President
	 	
	 Food Industry Technologies, Inc.
	 	
	 209-557-0818 Tel
	 	
	 209-557-9818 Fax
	 	
	Maxcodg@aol.com	 	

 Attachment A 
 Product Development 
 Preliminary Plan for Roll Out 
 Stage I 
 Super Absorbent Meat Soaker—Holds the Purge, prevents
re-infection on meat, improves appearance on shelf, lower cost manufacturing. 
 Ready for market now, 20% price advantage over existing market, No FDA-USDA
approvals required. 
 Pre-selling in process now by Master Distributor with Work in License- Agreements in Final Stages of Negotiation- Industry Leaders at
helm of company, 20,000 case order issued. Market Potential in Dollars: $550 Million 
 Confidence Level: On Scale of 1-5 with 5 being highest: 5
 
 Stage II 
 Wash Process: This is an
industrial process solution, including the installation of equipment and processes using an iodine based formulation, to lower “Log Count” on meat and poultry to extend shelf life of Chicken which is estimated by science team at 20%
extended shelf life. 
 Key Advantage: Bio Friendly, (no Chlorides), non-toxic, effective, high margin solution, creates market leader competitive advantage.

 Market Readiness: 1 year, and $250k to fully develop to market ready status, covered by 21 CFR 
 Next Generation Bacteria Management Solution. Projected to become the ‘benchmark’ of bacteria management leading to market leadership position at 50% of
market penetration over 36 months from roll out. 
 Market Potential in Dollars: $480 Million 
 Confidence Level: On Scale of 1-5 with 5 being highest: 4 
 Unknown Issues: Taste Test, USDA approval,
Product requires ‘as built’ validation in customer facility.  
 Stage III 
 Iodine Based additive to pads to add germ-killing power to Meat Soaker. 

 Market Readiness: Proven Technology (Scientific Proofs) FDA—USDA approval required, Cost: $50—$100k, 6
months 
 Next Generation Soaker- (Market Changing Technology) Could lead to over 20% market share in US alone at $250mm annually. Additional Markets are in
preparation to add to profit potential. 
 Confidence Level: On Scale of 1-5 with 5 being highest: 5 
 Stage IV 
 Additional Products, Paper towels, cleaning soaps and
solutions, consumer goods, additional packaging components

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