Document:

exv4w3

Exhibit 4.3

 

CONCHO RESOURCES INC.,

AS ISSUER

AND

ANY SUBSIDIARY GUARANTORS PARTIES HERETO,

AS SUBSIDIARY GUARANTORS

TO

[TRUSTEE’S NAME],

AS TRUSTEE

SUBORDINATED INDENTURE

DATED AS OF                                         , 20                    

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE ONE DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
	 	 	1	 
	 
	 	 	 	 
	SECTION 101. Definitions
	 	 	1	 
	SECTION 102. Compliance Certificates and Opinions
	 	 	7	 
	SECTION 103. Form of Documents Delivered to Trustee
	 	 	8	 
	SECTION 104. Acts of Holders; Record Dates
	 	 	8	 
	SECTION 105. Notices, Etc., to Trustee and Company
	 	 	11	 
	SECTION 106. Notice to Holders; Waiver
	 	 	11	 
	SECTION 107. Conflict with Trust Indenture Act
	 	 	11	 
	SECTION 108. Effect of Headings and Table of Contents
	 	 	12	 
	SECTION 109. Successors and Assigns
	 	 	12	 
	SECTION 110. Separability Clause
	 	 	12	 
	SECTION 111. Benefits of Indenture
	 	 	12	 
	SECTION 112. Governing Law
	 	 	12	 
	SECTION 113. Legal Holidays
	 	 	12	 
	SECTION 114. No Recourse Against Others
	 	 	12	 
	 
	 	 	 	 
	ARTICLE TWO SECURITY FORMS
	 	 	13	 
	 
	 	 	 	 
	SECTION 201. Forms Generally
	 	 	13	 
	SECTION 202. Form of Face of Security
	 	 	13	 
	SECTION 203. Form of Reverse of Security
	 	 	15	 
	SECTION 204. Form of Notation of Subsidiary Guarantee
	 	 	19	 
	SECTION 205. Form of Legend for Global Securities
	 	 	21	 
	SECTION 206. Form of Trustee’s Certificate of Authentication
	 	 	21	 
	SECTION 207. Form of Conversion Notice
	 	 	22	 
	 
	 	 	 	 
	ARTICLE THREE THE SECURITIES
	 	 	23	 
	 
	 	 	 	 
	SECTION 301. Amount Unlimited; Issuable in Series
	 	 	23	 
	SECTION 302. Denominations
	 	 	25	 
	SECTION 303. Execution, Authentication, Delivery and Dating
	 	 	26	 
	SECTION 304. Temporary Securities
	 	 	27	 
	SECTION 305. Registration, Registration of Transfer and Exchange
	 	 	28	 
	SECTION 306. Mutilated, Destroyed, Lost and Stolen Securities
	 	 	29	 
	SECTION 307. Payment of Interest; Interest Rights Preserved
	 	 	30	 
	SECTION 308. Persons Deemed Owners
	 	 	31	 
	SECTION 309. Cancellation
	 	 	31	 
	SECTION 310. Computation of Interest
	 	 	32	 
	 
	 	 	 	 
	ARTICLE FOUR SATISFACTION AND DISCHARGE
	 	 	32	 
	 
	 	 	 	 
	SECTION 401. Satisfaction and Discharge of Indenture
	 	 	32	 
	SECTION 402. Application of Trust Money
	 	 	33	 

i

 

	 	 	 	 	 
	ARTICLE FIVE REMEDIES
	 	 	33	 
	 
	 	 	 	 
	SECTION 501. Events of Default
	 	 	33	 
	SECTION 502. Acceleration of Maturity; Rescission and Annulment
	 	 	35	 
	SECTION 503. Collection of Indebtedness and Suits for Enforcement by Trustee
	 	 	36	 
	SECTION 504. Trustee May File Proofs of Claim
	 	 	37	 
	SECTION 505. Trustee May Enforce Claims Without Possession of Securities
	 	 	37	 
	SECTION 506. Application of Money Collected
	 	 	38	 
	SECTION 507. Limitation on Suits
	 	 	38	 
	SECTION 508. Unconditional Right of Holders to Receive Principal, Premium and Interest
	 	 	39	 
	SECTION 509. Restoration of Rights and Remedies
	 	 	39	 
	SECTION 510. Rights and Remedies Cumulative
	 	 	39	 
	SECTION 511. Delay or Omission Not Waiver
	 	 	39	 
	SECTION 512. Control by Holders
	 	 	40	 
	SECTION 513. Waiver of Past Defaults
	 	 	40	 
	SECTION 514. Undertaking for Costs
	 	 	40	 
	SECTION 515. Waiver of Usury, Stay or Extension Laws
	 	 	40	 
	 
	 	 	 	 
	ARTICLE SIX THE TRUSTEE
	 	 	41	 
	 
	 	 	 	 
	SECTION 601. Certain Duties and Responsibilities
	 	 	41	 
	SECTION 602. Notice of Defaults
	 	 	41	 
	SECTION 603. Certain Rights of Trustee
	 	 	41	 
	SECTION 604. Not Responsible for Recitals or Issuance of Securities
	 	 	42	 
	SECTION 605. May Hold Securities
	 	 	42	 
	SECTION 606. Money Held in Trust
	 	 	43	 
	SECTION 607. Compensation and Reimbursement
	 	 	43	 
	SECTION 608. Conflicting Interests
	 	 	43	 
	SECTION 609. Corporate Trustee Required; Eligibility
	 	 	43	 
	SECTION 610. Resignation and Removal; Appointment of Successor
	 	 	44	 
	SECTION 611. Acceptance of Appointment by Successor
	 	 	45	 
	SECTION 612. Merger, Conversion, Consolidation or Succession to Business
	 	 	46	 
	SECTION 613. Preferential Collection of Claims Against Company and Subsidiary Guarantors
	 	 	46	 
	SECTION 614. Appointment of Authenticating Agent
	 	 	46	 
	 
	 	 	 	 
	ARTICLE SEVEN HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY
	 	 	48	 
	 
	 	 	 	 
	SECTION 701. Company to Furnish Trustee Names and Addresses of Holders
	 	 	48	 
	SECTION 702. Preservation of Information; Communications to Holders
	 	 	48	 
	SECTION 703. Reports by Trustee
	 	 	49	 
	SECTION 704. Reports by Company and Subsidiary Guarantors
	 	 	49	 
	 
	 	 	 	 
	ARTICLE EIGHT CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE
	 	 	49	 
	 
	 	 	 	 
	SECTION 801. Company May Consolidate, Etc., Only on Certain Terms
	 	 	49	 
	SECTION 802. Subsidiary Guarantors May Consolidate, Etc., Only on Certain Terms
	 	 	50	 

ii

 

	 	 	 	 	 
	SECTION 803. Successor Substituted
	 	 	51	 
	 
	 	 	 	 
	ARTICLE NINE SUPPLEMENTAL INDENTURES
	 	 	51	 
	 
	 	 	 	 
	SECTION 901. Supplemental Indentures Without Consent of Holders
	 	 	51	 
	SECTION 902. Supplemental Indentures With Consent of Holders
	 	 	52	 
	SECTION 903. Execution of Supplemental Indentures
	 	 	54	 
	SECTION 904. Effect of Supplemental Indentures
	 	 	54	 
	SECTION 905. Conformity with Trust Indenture Act
	 	 	54	 
	SECTION 906. Reference in Securities to Supplemental Indentures
	 	 	54	 
	 
	 	 	 	 
	ARTICLE TEN COVENANTS
	 	 	54	 
	 
	 	 	 	 
	SECTION 1001. Payment of Principal, Premium and Interest
	 	 	54	 
	SECTION 1002. Maintenance of Office or Agency
	 	 	55	 
	SECTION 1003. Money for Securities Payments to Be Held in Trust
	 	 	55	 
	SECTION 1004. Statement by Officers as to Default
	 	 	56	 
	SECTION 1005. Existence
	 	 	57	 
	SECTION 1006. Maintenance of Properties
	 	 	57	 
	SECTION 1007. Payment of Taxes and Other Claims
	 	 	57	 
	SECTION 1008. Maintenance of Insurance
	 	 	57	 
	SECTION 1009. Waiver of Certain Covenants
	 	 	58	 
	 
	 	 	 	 
	ARTICLE ELEVEN REDEMPTION OF SECURITIES
	 	 	58	 
	 
	 	 	 	 
	SECTION 1101. Applicability of Article
	 	 	58	 
	SECTION 1102. Election to Redeem; Notice to Trustee
	 	 	58	 
	SECTION 1103. Selection by Trustee of Securities to Be Redeemed
	 	 	58	 
	SECTION 1104. Notice of Redemption
	 	 	59	 
	SECTION 1105. Deposit of Redemption Price
	 	 	60	 
	SECTION 1106. Securities Payable on Redemption Date
	 	 	60	 
	SECTION 1107. Securities Redeemed in Part
	 	 	61	 
	 
	 	 	 	 
	ARTICLE TWELVE SUBORDINATION OF SECURITIES
	 	 	61	 
	 
	 	 	 	 
	SECTION 1201. Applicability of Article
	 	 	61	 
	SECTION 1202. Securities Subordinate to Senior Debt
	 	 	61	 
	SECTION 1203. Payment Over of Proceeds Upon Dissolution, Etc
	 	 	61	 
	SECTION 1204. No Payment When Senior Debt of the Company in Default
	 	 	62	 
	SECTION 1205. Payment Permitted If No Default
	 	 	64	 
	SECTION 1206. Subrogation to Rights of Holders of Senior Debt of the Company
	 	 	64	 
	SECTION 1207. Provisions Solely to Define Relative Rights
	 	 	64	 
	SECTION 1208. Trustee to Effectuate Subordination
	 	 	65	 
	SECTION 1209. No Waiver of Subordination Provisions
	 	 	65	 
	SECTION 1210. Notice to Trustee
	 	 	65	 
	SECTION 1211. Reliance on Judicial Order or Certificate of Liquidating Agent
	 	 	66	 
	SECTION 1212. Trustee Not Fiduciary for Holders of Senior Debt of the Company
	 	 	66	 
	SECTION 1213. Rights of Trustee as Holder of Senior Debt of the Company; Preservation of Trustee’s Rights
	 	 	66	 
	SECTION 1214. Article Applicable to Paying Agents
	 	 	67	 

iii

 

	 	 	 	 	 
	SECTION 1215. Defeasance of this Article Twelve
	 	 	67	 
	 
	 	 	 	 
	ARTICLE THIRTEEN SUBSIDIARY GUARANTEES
	 	 	67	 
	 
	 	 	 	 
	SECTION 1301. Applicability of Article
	 	 	67	 
	SECTION 1302. Subsidiary Guarantees
	 	 	67	 
	SECTION 1303. Execution and Delivery of Notations of Subsidiary Guarantees
	 	 	69	 
	SECTION 1304. Release of Subsidiary Guarantors
	 	 	70	 
	SECTION 1305. Additional Subsidiary Guarantors
	 	 	70	 
	SECTION 1306. Limitation on Liability
	 	 	70	 
	 
	 	 	 	 
	ARTICLE FOURTEEN SUBORDINATION OF SUBSIDIARY GUARANTEES
	 	 	71	 
	 
	 	 	 	 
	SECTION 1401. Applicability of Article
	 	 	71	 
	SECTION 1402. Subsidiary Guarantees Subordinate to Senior Debt of Subsidiary Guarantors
	 	 	71	 
	SECTION 1403. Payment Over of Proceeds Upon Dissolution, Etc
	 	 	71	 
	SECTION 1404. No Payment When Senior Debt of such Subsidiary Guarantor in Default
	 	 	72	 
	SECTION 1405. Payment Permitted If No Default
	 	 	73	 
	SECTION 1406. Subrogation to Rights of Holders of Senior Debt of such Subsidiary Guarantor
	 	 	73	 
	SECTION 1407. Provisions Solely to Define Relative Rights
	 	 	74	 
	SECTION 1408. Trustee to Effectuate Subordination
	 	 	74	 
	SECTION 1409. No Waiver of Subordination Provisions
	 	 	74	 
	SECTION 1410. Notice to Trustee
	 	 	75	 
	SECTION 1411. Reliance on Judicial Order or Certificate of Liquidating Agent
	 	 	75	 
	SECTION 1412. Trustee Not Fiduciary for Holders of Senior Debt of such Subsidiary Guarantor
	 	 	76	 
	SECTION 1413. Rights of Trustee as Holder of Senior Debt of such Subsidiary Guarantor; Preservation of Trustee’s Rights
	 	 	76	 
	SECTION 1414. Article Applicable to Paying Agents
	 	 	76	 
	SECTION 1415. Defeasance of this Article Fourteen
	 	 	76	 
	 
	 	 	 	 
	ARTICLE FIFTEEN DEFEASANCE AND COVENANT DEFEASANCE
	 	 	77	 
	 
	 	 	 	 
	SECTION 1501. Company’s Option to Effect Defeasance or Covenant Defeasance
	 	 	77	 
	SECTION 1502. Defeasance and Discharge
	 	 	77	 
	SECTION 1503. Covenant Defeasance
	 	 	77	 
	SECTION 1504. Conditions to Defeasance or Covenant Defeasance
	 	 	78	 
	SECTION 1505. Deposited Money and U.S. Government Obligations to Be Held in Trust; Miscellaneous Provisions
	 	 	80	 
	SECTION 1506. Reinstatement
	 	 	80	 
	 
	 	 	 	 
	ARTICLE SIXTEEN SINKING FUNDS
	 	 	81	 
	 
	 	 	 	 
	SECTION 1601. Applicability of Article
	 	 	81	 
	SECTION 1602. Satisfaction of Sinking Fund Payments with Securities
	 	 	81	 
	SECTION 1603. Redemption of Securities for Sinking Fund
	 	 	81	 

iv

 

	 	 	 	 	 
	[SCHEDULE I            SUBSIDIARY GUARANTORS]
	 	 	 	 

v

 

CONCHO RESOURCES INC.

RECONCILIATION AND TIE OF CERTAIN SECTIONS OF THIS INDENTURE RELATING TO SECTIONS 310 THROUGH 318,
INCLUSIVE, OF THE TRUST INDENTURE ACT OF 1939:

	 	 	 
	 	 	INDENTURE
	TRUST INDENTURE ACT SECTION	 	SECTION
	Section 310(a)(1)
	 	609
	(a)(2)
	 	609
	(a)(3)
	 	Not Applicable
	(a)(4)
	 	Not Applicable
	(b)
	 	608
	 
	 	610
	 
	 	 
	Section 311(a)
	 	613
	(b)
	 	613
	 
	 	 
	Section 312(a)
	 	701
	 
	 	702
	(b)
	 	702
	(c)
	 	702
	 
	 	 
	Section 313(a)
	 	703
	(b)
	 	703
	(c)
	 	703
	(d)
	 	703
	 
	 	 
	Section 314(a)
	 	704
	(a)(4)
	 	101
	 
	 	1004
	(b)
	 	Not Applicable
	(c)(1)
	 	102
	(c)(2)
	 	102
	(c)(3)
	 	Not Applicable
	(d)
	 	Not Applicable
	(e)
	 	102
	 
	 	 
	Section 315(a)
	 	601
	(b)
	 	602
	(c)
	 	601
	(d)
	 	601
	(e)
	 	514
	 
	 	 
	Section 316(a)
	 	101
	(a)(1)(A)
	 	502
	 
	 	512

vi

 

	 	 	 
	 	 	INDENTURE
	TRUST INDENTURE ACT SECTION	 	SECTION
	(a)(1)(B)
	 	513
	(a)(2)
	 	Not Applicable
	(b)
	 	508
	(c)
	 	104
	 
	 	 
	Section 317(a)(1)
	 	503
	(a)(2)
	 	504
	(b)
	 	1003
	 
	 	 
	Section 318(a)
	 	107

NOTE: This reconciliation and tie shall not, for any purpose, be deemed to be a part of the
Indenture.

vii

 

     INDENTURE, dated as of                     , 20___, among Concho Resources Inc., a corporation duly
organized and existing under the laws of the State of Delaware (herein called the “Company”),
having its principal office at 550 West Texas Avenue, Suite 100, Midland, Texas 79701, each of the
Subsidiary Guarantors (as hereinafter defined) parties hereto  and [TRUSTEE’S NAME], a [                    ] duly organized
and existing under the laws of [                    ], as Trustee (herein called the “Trustee”).

RECITALS OF THE COMPANY AND THE SUBSIDIARY GUARANTORS

     The Company has duly authorized the execution and delivery of this Indenture to provide for
the issuance from time to time of its unsecured debentures, notes or other evidences of
indebtedness (herein called the “Securities”), to be issued in one or more series as in this
Indenture provided.

     The Company and the Subsidiary Guarantors are members of the same consolidated group of
companies. The Subsidiary Guarantors will derive direct and indirect economic benefit from the
issuance of the Securities. Accordingly, each Subsidiary Guarantor has duly authorized the
execution and delivery of this Indenture to provide for its full, unconditional and joint and
several guarantee of the Securities to the extent provided in or pursuant this Indenture.

     All things necessary to make this Indenture a valid agreement of the Company, in accordance
with its terms, have been done.

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

     For and in consideration of the premises and the purchase of the Securities by the Holders
thereof, it is mutually agreed, for the equal and proportionate benefit of all Holders of the
Securities or of series thereof, as follows:

ARTICLE ONE

DEFINITIONS AND OTHER PROVISIONS

OF GENERAL APPLICATION

SECTION 101. Definitions.

     For all purposes of this Indenture, except as otherwise expressly provided or unless the
context otherwise requires:

     (1) the terms defined in this Article have the meanings assigned to them in this Article and
include the plural as well as the singular;

     (2) all other terms used herein which are defined in the Trust Indenture Act, either directly
or by reference therein, have the meanings assigned to them therein;

     (3) all accounting terms not otherwise defined herein have the meanings assigned to them in
accordance with generally accepted accounting principles, and, except as otherwise herein expressly
provided, the term “generally accepted accounting principles” with respect to

1

 

any computation required or permitted hereunder shall mean such accounting principles as are
generally accepted at the date of this instrument;

     (4) unless the context otherwise requires, any reference to an “Article” or a “Section” refers
to an Article or a Section, as the case may be, of this Indenture;

     (5) the words “herein”, “hereof”, “hereunder” and other words of similar import refer to this
Indenture as a whole and not to any particular Article, Section or other subdivision; and

     (6) unsecured Debt shall not be deemed to be subordinate or junior to secured Debt merely by
virtue of its nature as unsecured Debt.

     “Act”, when used with respect to any Holder, has the meaning specified in Section 104.

     “Affiliate” of any specified Person means any other Person directly or indirectly controlling
or controlled by or under direct or indirect common control with such specified Person. For the
purposes of this definition, “control” when used with respect to any specified Person means the
power to direct the management and policies of such Person, directly or indirectly, whether through
the ownership of voting securities, by contract or otherwise; and the terms “controlling” and
“controlled” have meanings correlative to the foregoing; provided that direct or indirect
beneficial ownership of 10% or more of the Voting Stock of a Person shall be deemed to be control.

     “Authenticating Agent” means any Person authorized by the Trustee pursuant to Section 614 to
act on behalf of the Trustee to authenticate Securities of one or more series.

     “Board of Directors” means, with respect to the Company, either the board of directors of the
Company or any committee of that board duly authorized to act for it in respect hereof, and with
respect to any Subsidiary Guarantor, either the board of directors of such Subsidiary Guarantor or
any committee of that board duly authorized to act for it in respect hereof.

     “Board Resolution” means, with respect to the Company or a Subsidiary Guarantor, a copy of a
resolution certified by the Secretary or an Assistant Secretary of the Company or such Subsidiary
Guarantor, as the case may be, to have been duly adopted by its Board of Directors and to be in
full force and effect on the date of such certification, and delivered to the Trustee.

     “Business Day”, when used with respect to any Place of Payment, means each Monday, Tuesday,
Wednesday, Thursday and Friday which is not a day on which banking institutions in that Place of
Payment are authorized or obligated by law or executive order to close.

     “Capital Stock” of any Person means any and all shares, interests, participations or other
equivalents (however designated) of corporate stock or other equity participations, including
partnership interests, whether general or limited, of such Person.

     “Commission” means the Securities and Exchange Commission, from time to time constituted,
created under the Exchange Act, or, if at any time after the execution of this instrument such
Commission is not existing and performing the duties now assigned to it under the Trust Indenture
Act, then the body performing such duties at such time.

2

 

     “Common Stock” means the common stock, no par value, of the Company as the same exists at the
date of execution and delivery of this Indenture or other Capital Stock of the Company into which
such common stock is converted, reclassified or changed from time to time.

     “Company” means the Person named as the “Company” in the first paragraph of this instrument
until a successor Person shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter “Company” shall mean such successor Person.

     “Company Request” or “Company Order” means a written request or order signed in the name of
the Company by its Chairman of the Board of Directors, its Vice Chairman of the Board of Directors,
its President or a Vice President, and by its Treasurer, an Assistant Treasurer, its Secretary or
an Assistant Secretary, and delivered to the Trustee.

     “Conversion Agent” means any Person authorized by the Company to convert any Securities on
behalf of the Company.

     “Corporate Trust Office” means the principal office of the Trustee in [                    ,                     ] at
which at any particular time its corporate trust business shall be administered, such office being
located on the date hereof at [TRUSTEE’S ADDRESS].

     “Corporation” means a corporation, association, limited liability company, joint-stock company
or business trust.

     “Covenant Defeasance” has the meaning specified in Section 1503.

     “Debt” of any Person at any date means any obligation created, assumed or guaranteed by such
Person for the repayment of borrowed money.

     “Defaulted Interest” has the meaning specified in Section 307.

     “Defeasance” has the meaning specified in Section 1502.

     “Depositary” means, with respect to Securities of any series issuable in whole or in part in
the form of one or more Global Securities, a clearing agency registered under the Exchange Act that
is designated to act as Depositary for such Securities as contemplated by Section 301.

     “Event of Default” has the meaning specified in Section 501.

     “Exchange Act” means the Securities Exchange Act of 1934 and any statute successor thereto, in
each case as amended from time to time.

     “Expiration Date” has the meaning specified in Section 104.

     “Global Security” means a Security that evidences all or part of the Securities of any series
and bears the legend set forth in Section 205 (or such legend as may be specified as contemplated
by Section 301 for such Securities).

     “Holder” means a Person in whose name a Security is registered in the Security Register.

3

 

     “Indenture” means this instrument as originally executed and as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered into pursuant to the
applicable provisions hereof, including, for all purposes of this instrument and any such
supplemental indenture, the provisions of the Trust Indenture Act that are deemed to be a part of
and govern this instrument and any such supplemental indenture, respectively. The term “Indenture”
shall also include the terms of particular series of Securities established as contemplated by
Section 301.

     “interest”, when used with respect to an Original Issue Discount Security which by its terms
bears interest only after Maturity, means interest payable after Maturity.

     “Interest Payment Date”, when used with respect to any Security, means the Stated Maturity of
an installment of interest on such Security.

     “Investment Company Act” means the Investment Company Act of 1940 and any statute successor
thereto, in each case as amended from time to time.

     “Maturity”, when used with respect to any Security, means the date on which the principal of
such Security or an installment of principal becomes due and payable as therein or herein provided,
whether at the Stated Maturity or by declaration of acceleration, call for redemption or otherwise.

     “Notice of Default” means a written notice of the kind specified in Section 501(5).

     “Officers’ Certificate” means a certificate signed by the Chairman of the Board of Directors,
a Vice Chairman of the Board of Directors, the President or a Vice President, and by the Treasurer,
an Assistant Treasurer, the Secretary or an Assistant Secretary, of the Company or a Subsidiary
Guarantor, as the case may be, and delivered to the Trustee. One of the officers signing an
Officers’ Certificate given pursuant to Section 1004 shall be the principal executive, financial or
accounting officer of the Company.

     “Opinion of Counsel” means, as to the Company or a Subsidiary Guarantor, a written opinion of
counsel, who may be counsel for the Company or such Subsidiary Guarantor, as the case may be, and
who shall be acceptable to the Trustee.

     “Original Issue Discount Security” means any Security which provides for an amount less than
the principal amount thereof to be due and payable upon a declaration of acceleration of the
Maturity thereof pursuant to Section 502.

     “Outstanding”, when used with respect to Securities, means, as of the date of determination,
all Securities theretofore authenticated and delivered under this Indenture, except:

     (1) Securities theretofore cancelled by the Trustee or delivered to the Trustee for
cancellation;

     (2) Securities for whose payment or redemption money in the necessary amount has been
theretofore deposited with the Trustee or any Paying Agent (other than the Company) in trust or set
aside and segregated in trust by the Company (if the Company shall act as its own

4

 

Paying Agent) for the Holders of such Securities; provided that, if such Securities are to be
redeemed, notice of such redemption has been duly given pursuant to this Indenture or provision
therefor satisfactory to the Trustee has been made;

     (3) Securities as to which Defeasance has been effected pursuant to Section 1502; and

     (4) Securities which have been paid pursuant to Section 306 or in exchange for or in lieu of
which other Securities have been authenticated and delivered pursuant to this Indenture, other than
any such Securities in respect of which there shall have been presented to the Trustee proof
satisfactory to it that such Securities are held by a bona fide purchaser in whose hands such
Securities are valid obligations of the Company;

provided, however, that in determining whether the Holders of the requisite principal amount of the
Outstanding Securities have given, made or taken any request, demand, authorization, direction,
notice, consent, waiver or other action hereunder as of any date, (A) the principal amount of an
Original Issue Discount Security which shall be deemed to be Outstanding shall be the amount of the
principal thereof which would be due and payable as of such date upon acceleration of the Maturity
thereof to such date pursuant to Section 502, (B) if, as of such date, the principal amount payable
at the Stated Maturity of a Security is not determinable, the principal amount of such Security
which shall be deemed to be Outstanding shall be the amount as specified or determined as
contemplated by Section 301, (C) the principal amount of a Security denominated in one or more
foreign currencies or currency units which shall be deemed to be Outstanding shall be the U.S.
dollar equivalent, determined as of such date in the manner provided as contemplated by Section
301, of the principal amount of such Security (or, in the case of a Security described in clause
(A) or (B) above, of the amount determined as provided in such clause), and (D) Securities owned by
the Company, any Subsidiary Guarantor or any other obligor upon the Securities or any Affiliate of
the Company, any Subsidiary Guarantor or of such other obligor shall be disregarded and deemed not
to be Outstanding, except that, in determining whether the Trustee shall be protected in relying
upon any such request, demand, authorization, direction, notice, consent, waiver or other action,
only Securities which the Trustee knows to be so owned shall be so disregarded. Securities so
owned which have been pledged in good faith may be regarded as Outstanding if the pledgee
establishes to the satisfaction of the Trustee the pledgee’s right so to act with respect to such
Securities and that the pledgee is not the Company, a Subsidiary Guarantor or any other obligor
upon the Securities or any Affiliate of the Company, a Subsidiary Guarantor or of such other
obligor.

     “Paying Agent” means any Person authorized by the Company to pay the principal of or any
premium or interest on any Securities on behalf of the Company.

     “Person” means any individual, corporation, partnership, joint venture, trust, unincorporated
organization or government or any agency or political subdivision thereof.

     “Place of Payment”, when used with respect to the Securities of any series, means the place or
places where the principal of and any premium and interest on the Securities of that series are
payable as specified as contemplated by Section 301.

5

 

     “Predecessor Security” of any particular Security means every previous Security evidencing all
or a portion of the same debt as that evidenced by such particular Security; and, for the purposes
of this definition, any Security authenticated and delivered under Section 306 in exchange for or
in lieu of a mutilated, destroyed, lost or stolen Security shall be deemed to evidence the same
debt as the mutilated, destroyed, lost or stolen Security.

     “Redemption Date”, when used with respect to any Security to be redeemed, means the date fixed
for such redemption by or pursuant to this Indenture.

     “Redemption Price”, when used with respect to any Security to be redeemed, means the price at
which it is to be redeemed pursuant to this Indenture.

     “Regular Record Date” for the interest payable on any Interest Payment Date on the Securities
of any series means the date specified for that purpose as contemplated by Section 301.

     “Securities” has the meaning stated in the first recital of this Indenture and more
particularly means any Securities authenticated and delivered under this Indenture.

     “Securities Act” means the Securities Act of 1933 and any statute successor thereto, in each
case as amended from time to time.

     “Security Register” and “Security Registrar” have the respective meanings specified in Section
305.

     “Senior Debt” with respect to any series of Securities shall have the meaning specified as
contemplated by Section 301.

     “Significant Subsidiary” means, at any date of determination, any Subsidiary that represents
10% or more of the Company’s consolidated total assets at the end of the most recent fiscal quarter
for which financial information is available or 10% or more of the Company’s consolidated net
revenues or consolidated operating income for the most recent four quarters for which financial
information is available.

     “Special Record Date” for the payment of any Defaulted Interest means a date fixed by the
Trustee pursuant to Section 307.

     “Stated Maturity”, when used with respect to any Security or any installment of principal
thereof or interest thereon, means the date specified in such Security as the fixed date on which
the principal of such Security or such installment of principal or interest is due and payable.

     “Subsidiary” of any Person means (1) a corporation more than 50% of the combined voting power
of the outstanding Voting Stock of which is owned, directly or indirectly, by such Person or by one
or more other Subsidiaries of such Person or by such Person and one or more Subsidiaries thereof or
(2) any other Person (other than a corporation) in which such Person, or one or more other
Subsidiaries of such Person or such Person and one or more other Subsidiaries

6

 

thereof, directly or indirectly, has at least a majority ownership and power to direct the policies, management and
affairs thereof.

     “Subsidiary Guarantees” means the guarantees of each Subsidiary Guarantor as provided in
Article Thirteen.

     “Subsidiary
Guarantors” means (i) the subsidiaries listed in Schedule I hereto; (ii) each other Subsidiary of the
Company that becomes a Subsidiary Guarantor in accordance with Section 1305 hereof; and (iii) any successor of the foregoing, in each case (i), (ii) and (iii) until
such Subsidiary Guarantor ceases to be such in accordance with Section 1304 hereof.

     “Trust Indenture Act” means the Trust Indenture Act of 1939 as in force at the date as of
which this instrument was executed; provided, however, that in the event the Trust Indenture Act of
1939 is amended after such date, “Trust Indenture Act” means, to the extent required by any such
amendment, the Trust Indenture Act of 1939 as so amended.

     “Trustee” means the Person named as the “Trustee” in the first paragraph of this instrument
until a successor Trustee shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter “Trustee” shall mean or include each Person who is then a Trustee
hereunder, and if at any time there is more than one such Person, “Trustee” as used with respect to
the Securities of any series shall mean the Trustee with respect to Securities of that series.

     “U.S. Government Obligation” has the meaning specified in Section 1504.

     “Vice President”, when used with respect to the Company or the Trustee, means any vice
president, whether or not designated by a number or a word or words added before or after the title
“vice president”.

     “Voting Stock” of any Person means Capital Stock of such Person which ordinarily has voting
power for the election of directors (or persons performing similar functions) of such Person,
whether at all times or only so long as no senior class of securities has such voting power by
reason of any contingency.

     “Wholly Owned Subsidiary” of any Person means a Subsidiary of such Person all of the
outstanding Capital Stock of which (other than directors’ qualifying
shares) shall at the time be owned by such Person or by one or more Wholly Owned Subsidiaries of
such Person or by such Person and one or more Wholly Owned Subsidiaries of such Person.

SECTION 102. Compliance Certificates and Opinions.

     Upon any application or request by the Company or any Subsidiary Guarantor to the Trustee to
take any action under any provision of this Indenture, the Company and/or such Subsidiary
Guarantor, as appropriate, shall furnish to the Trustee such certificates and opinions as may be
required under the Trust Indenture Act. Each such certificate or opinion shall be given in the
form of an Officers’ Certificate, if to be given by an officer of the Company or a Subsidiary
Guarantor, or an Opinion of Counsel, if to be given by counsel, and shall comply with

7

 

the
requirements of the Trust Indenture Act and any other requirements set forth in this Indenture.

     Every certificate or opinion with respect to compliance with a condition or covenant provided
for in this Indenture shall include:

     (1) a statement that each individual signing such certificate or opinion has read such
covenant or condition and the definitions herein relating thereto;

     (2) a brief statement as to the nature and scope of the examination or investigation
upon which the statements or opinions contained in such certificate or opinion are based;

     (3) a statement that, in the opinion of each such individual, he has made such
examination or investigation as is necessary to enable him to express an informed opinion as
to whether or not such covenant or condition has been complied with; and

     (4) a statement as to whether, in the opinion of each such individual, such condition
or covenant has been complied with.

SECTION 103. Form of Documents Delivered to Trustee.

     In any case where several matters are required to be certified by, or covered by an opinion
of, any specified Person, it is not necessary that all such matters be certified by, or covered by
the opinion of, only one such Person, or that they be so certified or covered by only one document,
but one such Person may certify or give an opinion with respect to some matters and one or more
other such Persons as to other matters, and any such Person may certify or give an opinion as to
such matters in one or several documents.

     Any certificate or opinion of an officer of the Company or a Subsidiary Guarantor may be
based, insofar as it relates to legal matters, upon a certificate or opinion of, or representations
by, counsel, unless such officer knows, or in the exercise of reasonable care should know, that the
certificate or opinion or representations with respect to the matters upon which his certificate or
opinion is based are erroneous. Any such certificate or opinion of counsel may be based, insofar
as it relates to factual matters, upon a certificate or opinion of, or representations by, an
officer or officers of the Company or such Subsidiary Guarantor stating that the information with
respect to such factual matters is in the possession of the Company or such Subsidiary Guarantor,
unless such counsel knows, or in the exercise of reasonable care should know, that the certificate
or opinion or representations with respect to such matters are erroneous.

     Where any Person is required to make, give or execute two or more applications, requests,
consents, certificates, statements, opinions or other instruments under this Indenture, they may,
but need not, be consolidated and form one instrument.

SECTION 104. Acts of Holders; Record Dates.

     Whenever in this Indenture it is provided that the Holders of a specified percentage in
aggregate principal amount of the Securities of any or all series may take action (including the

8

 

making of any demand or request, the giving of any direction, notice, consent or waiver or the
taking of any other action) the fact that at the time of taking any such action the Holders of such
specified percentage have joined therein may be evidenced (a) by any instrument or any number of
instruments of similar tenor executed by Holders in person or by agent or proxy appointed in
writing, (b) by the record of the Holders voting in favor thereof at any meeting of Holders duly
called and held in accordance with procedures approved by the Trustee, (c) by a combination of
such instrument or instruments and any such record of such a meeting of Holders or (d) in the
case of Securities evidenced by a Global Security, by any electronic transmission or other message,
whether or not in written format, that complies with the Depositary’s applicable procedures. Such
evidence (and the action embodied therein and evidenced thereby) are herein sometimes referred to
as the “Act” of the relevant Holders. Proof of execution of any such instrument or of a writing
appointing any such agent or proxy shall be sufficient for any purpose of this Indenture and
(subject to Section 601) conclusive in favor of the Trustee and the Company, if made in the manner
provided in this Section.

     The fact and date of the execution by any Person of any such instrument or writing may be
proved by the affidavit of a witness of such execution or by a certificate of a notary public or
other officer authorized by law to take acknowledgments of deeds, certifying that the individual
signing such instrument or writing acknowledged to him the execution thereof. Where such execution
is by a signer acting in a capacity other than his individual capacity, such certificate or
affidavit shall also constitute sufficient proof of his authority. The fact and date of the
execution of any such instrument or writing, or the authority of the Person executing the same, may
also be proved in any other manner that the Trustee deems sufficient.

     The ownership of Securities shall be proved by the Security Register.

     Any request, demand, authorization, direction, notice, consent, waiver or other Act of the
Holder of any Security shall bind every future Holder of the same Security and the Holder of every
Security issued upon the registration of transfer thereof or in exchange therefor or in lieu
thereof in respect of anything done, omitted or suffered to be done by the Trustee or the Company
in reliance thereon, whether or not notation of such action is made upon such Security.

     The Company may set any day as a record date for the purpose of determining the Holders of
Outstanding Securities of any series entitled to give, make or take any request, demand,
authorization, direction, notice, consent, waiver or other action provided or permitted by this
Indenture to be given, made or taken by Holders of Securities of such series, provided that the
Company may not set a record date for, and the provisions of this paragraph shall not apply with
respect to, the giving or making of any notice, declaration, request or direction referred to in
the next paragraph. If any record date is set pursuant to this paragraph, the Holders of
Outstanding Securities of the relevant series on such record date, and no other Holders, shall be
entitled to take the relevant action, whether or not such Holders remain Holders after such record
date; provided that no such action shall be effective hereunder unless taken on or prior to the
applicable Expiration Date by Holders of the requisite principal amount of Outstanding Securities
of such series on such record date. Nothing in this paragraph shall be construed to prevent the
Company from setting a new record date for any action for which a record date has previously been
set pursuant to this paragraph (whereupon the record date previously set shall automatically and
with no action by any Person be cancelled and of no

9

 

effect), and nothing in this paragraph shall be
construed to render ineffective any action taken by Holders of the requisite principal amount of
Outstanding Securities of the relevant series on the date such action is taken. Promptly after any
record date is set pursuant to this paragraph, the Company, at its own expense, shall cause notice
of such record date, the proposed action by Holders and the applicable Expiration Date to be given
to the Trustee in writing and to each Holder of Securities of the relevant series in the manner set
forth in Section 106.

     The Trustee may set any day as a record date for the purpose of determining the Holders of
Outstanding Securities of any series entitled to join in the giving or making of (i) any Notice of
Default, (ii) any declaration of acceleration referred to in Section 502, (iii) any request to
institute proceedings referred to in Section 507(2) or (iv) any direction referred to in Section
512, in each case with respect to Securities of such series. If any record date is set pursuant to
this paragraph, the Holders of Outstanding Securities of such series on such record date, and no
other Holders, shall be entitled to join in such notice, declaration, request or direction, whether
or not such Holders remain Holders after such record date; provided that no such action shall be
effective hereunder unless taken on or prior to the applicable Expiration Date by Holders of the
requisite principal amount of Outstanding Securities of such series on such record date. Nothing
in this paragraph shall be construed to prevent the Trustee from setting a new record date for any
action for which a record date has previously been set pursuant to this paragraph (whereupon the
record date previously set shall automatically and with no action by any Person be cancelled and of
no effect), and nothing in this paragraph shall be construed to render ineffective any action taken
by Holders of the requisite principal amount of Outstanding Securities of the relevant series on
the date such action is taken. Promptly after any record date is set pursuant to this paragraph,
the Trustee, at the Company’s expense, shall cause notice of such record date, the proposed action
by Holders and the applicable Expiration Date to be given to the Company in writing and to each
Holder of Securities of the relevant series in the manner set forth in Section 106.

     With respect to any record date set pursuant to this Section, the party hereto which sets such
record dates may designate any day as the “Expiration Date” and from time to time may change the
Expiration Date to any earlier or later day; provided that no such change shall be effective unless
notice of the proposed new Expiration Date is given to the other party hereto in writing, and to
each Holder of Securities of the relevant series in the manner set forth in Section 106, on or
prior to the existing Expiration Date. If an Expiration Date is not designated with respect to any
record date set pursuant to this Section, the party hereto which set such record date shall be
deemed to have initially designated the 180th day after such record date as the Expiration Date
with respect thereto, subject to its right to change the Expiration Date as provided in this
paragraph. Notwithstanding the foregoing, no Expiration Date shall be later than the 180th day
after the applicable record date.

     Without limiting the foregoing, a Holder entitled hereunder to take any action hereunder with
regard to any particular Security may do so with regard to all or any part of the principal amount
of such Security or by one or more duly appointed agents each of which may do so pursuant to such
appointment with regard to all or any part of such principal amount.

10

 

SECTION 105. Notices, Etc., to Trustee and Company.

     Any request, demand, authorization, direction, notice, consent, waiver or Act of Holders or
other document provided or permitted by this Indenture to be made upon, given or furnished to, or
filed with:

     (1) the Trustee by any Holder or by the Company or any Subsidiary Guarantor shall be
sufficient for every purpose hereunder if made, given, furnished or filed in writing in the
English language to or with the Trustee at its Corporate Trust Office, Attention: Corporate
Trust Department; or

     (2) the Company or any Subsidiary Guarantor by the Trustee or by any Holder shall be
sufficient for every purpose hereunder (unless otherwise herein expressly provided) if in
writing in the English language and mailed, first-class postage prepaid, in the case of the
Company addressed to it at the address of its principal office specified in the first
paragraph of this instrument or at any other address previously furnished in writing to the
Trustee by the Company and, in the case of any Subsidiary Guarantor, to it at the address of
the Company’s principal office specified in the first paragraph of this instrument,
Attention: Chief Financial Officer, or at any other address previously furnished in writing
to the Trustee by such Subsidiary Guarantor.

SECTION 106. Notice to Holders; Waiver.

     Where this Indenture provides for notice to Holders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing in the English
language and mailed, first-class postage prepaid, to each Holder affected by such event, at his
address as it appears in the Security Register, not later than the latest date (if any), and not
earlier than the earliest date (if any), prescribed for the giving of such notice. In any case
where notice to Holders is given by mail, neither the failure to mail such notice, nor any defect
in any notice so mailed, to any particular Holder shall affect the sufficiency of such notice with
respect to other Holders. Where this Indenture provides for notice in any manner, such notice may
be waived in writing by the Person entitled to receive such notice, either before or after the
event, and such waiver shall be the equivalent of such notice. Waivers of notice by Holders shall
be filed with the Trustee, but such filing shall not be a condition precedent to the validity of
any action taken in reliance upon such waiver.

     In case by reason of the suspension of regular mail service or by reason of any other cause it
shall be impracticable to give such notice by mail, then such notification as shall be made with
the approval of the Trustee shall constitute a sufficient notification for every purpose hereunder.

SECTION 107. Conflict with Trust Indenture Act.

     If any provision hereof limits, qualifies or conflicts with a provision of the Trust Indenture
Act which is required under such Act to be a part of and govern this Indenture, the latter
provision shall control. If any provision of this Indenture modifies or excludes any provision of
the Trust Indenture Act which may be so modified or excluded, the latter provision shall be deemed
to apply to this Indenture as so modified or to be excluded, as the case may be.

11

 

SECTION 108. Effect of Headings and Table of Contents.

     The Article and Section headings herein and the Table of Contents are for convenience only and
shall not affect the construction hereof.

SECTION 109. Successors and Assigns.

     All covenants and agreements in this Indenture by the Company and any Subsidiary Guarantor
shall bind their respective successors and assigns, whether so expressed or not.

SECTION 110. Separability Clause.

     In case any provision in this Indenture, the Securities or the Subsidiary Guarantees shall be
invalid, illegal or unenforceable, the validity, legality and enforce ability of the remaining
provisions shall not in any way be affected or impaired thereby.

SECTION 111. Benefits of Indenture.

     Nothing in this Indenture, the Securities or the Subsidiary Guarantees, express or implied,
shall give to any Person, other than the parties hereto and their successors hereunder, the holders
of Senior Debt and the Holders, any benefit or any legal or equitable right, remedy or claim under
this Indenture.

SECTION 112. Governing Law.

     This Indenture, the Securities and the Subsidiary Guarantees shall be governed by and
construed in accordance with the law of the State of New York.

SECTION 113. Legal Holidays.

     In any case where any Interest Payment Date, Redemption Date, purchase date or Stated Maturity
of any Security shall not be a Business Day at any Place of Payment, then (notwithstanding any
other provision of this Indenture or of the Securities (other than a provision of any Security
which specifically states that such provision shall apply in lieu of this Section)) payment of
interest or principal (and premium, if any) need not be made at such Place of Payment on such date,
but may be made on the next succeeding Business Day at such Place of Payment with the same force
and effect as if made on the Interest Payment Date, Redemption Date or purchase date, or at the
Stated Maturity.

SECTION 114. No Recourse Against Others.

     No director,
officer, employee, incorporator, stockholder, member, partner or trustee of the Company or any Subsidiary Guarantor, as such, shall have any
liability for any obligations of the Company or any Subsidiary Guarantor under the Securities, this Indenture or any Subsidiary Guarantees
or for any claim based on, in respect of, or by reason of, such obligations or their creation. By accepting a
Security, each Holder shall be deemed to have waived and released all such liability. The waiver
and release shall be a party of the consideration for the issue of the Securities.

12

 

ARTICLE TWO

SECURITY FORMS

SECTION 201. Forms Generally.

     The Securities of each series and, if applicable,
the notations of Subsidiary Guarantees to be endorsed
thereon shall be in substantially the form set forth in this Article, or in such other form as
shall be established by or pursuant to a Board Resolution or in one or more indentures supplemental
hereto, in each case with such appropriate insertions, omissions, substitutions and other variations
as are required or permitted by this Indenture, and may have such letters, numbers or other marks
of identification and such legends or endorsements placed thereon as may be required to comply with
the rules of any securities exchange or Depositary therefor or as may, consistently herewith, be
determined by the officers executing such Securities or notations of Subsidiary Guarantees, as the case may be,
as evidenced by their execution thereof. If the form of Securities of any series is established by
action taken pursuant to a Board Resolution, a copy of an appropriate record of such action shall
be certified by the Secretary or an Assistant Secretary of the Company and delivered to the Trustee
at or prior to the delivery of the Company Order contemplated by Section 303 for the authentication
and delivery of such Securities.

     The definitive Securities shall be printed, lithographed or engraved on steel engraved borders
or may be produced in any other manner, all as determined by the officers executing such
Securities, as evidenced by their execution of such Securities.

SECTION 202. Form of Face of Security.

[Insert any legend required by the Internal Revenue Code and the regulations thereunder.]

Concho Resources Inc.

			
	No.                                        
	 	$                                        

     Concho Resources Inc., a corporation duly organized and existing under the laws of Delaware
(herein called the “Company,” which term includes any successor Person under the Indenture
hereinafter referred to), for value received, hereby promises to pay to
                                        , or registered assigns, the principal sum of
                                         Dollars on
                                                                                 [if the Security is to bear
interest prior to Maturity, insert — , and to pay interest thereon from                                          or from the
most recent Interest Payment Date to which interest has been paid or duly provided for,
semi-annually on                                          and
                                         in each year, commencing                                         , at the rate of
                    % per annum, until the principal hereof is paid or made available for payment, provided that
any principal and premium, and any such installment of interest, which is overdue shall bear
interest at the rate of ___% per annum (to the extent that the payment of such interest shall be
legally enforceable), from the dates such amounts are due until they are paid or made available for
payment, and such interest shall be payable on demand. The interest so payable, and punctually
paid or duly provided for, on any Interest Payment Date will, as provided in such Indenture, be
paid to the Person in whose name this Security (or one or

13

 

more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such interest, which shall be
the                      or                     (whether or not a Business Day), as the case may be, next preceding such
Interest Payment Date. Any such interest not so punctually paid or duly provided for will
forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to
the Person in whose name this Security (or one or more Predecessor Securities) is registered at the
close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed
by the Trustee, notice whereof shall be given to Holders of Securities of this series not less than
10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities exchange on which the Securities of this series may be listed, and upon such notice as may be required by such
exchange, all as more fully provided in said Indenture].

     [If the Security is not to bear interest prior to Maturity, insert — The principal of this
Security shall not bear interest except in the case of a default in payment of principal upon
acceleration, upon redemption or at Stated Maturity and in such case the overdue principal and any
overdue premium shall bear interest at the rate of ___% per annum (to the extent that the payment
of such interest shall be legally enforceable), from the dates such amounts are due until they are
paid or made available for payment. Interest on any overdue principal or premium shall be payable
on demand. Any such interest on overdue principal or premium which is not paid on demand shall
bear interest at the rate of                     % per annum (to the extent that the payment of such interest on
interest shall be legally enforceable), from the date of such demand until the amount so demanded
is paid or made available for payment. Interest on any overdue interest shall be payable on
demand.]

     Payment of the principal of (and premium, if any) and [if applicable, insert — any such]
interest on this Security will be made at the office or agency of the Company maintained for that
purpose in                     , in such coin or currency of the United States of America as at the time of
payment is legal tender for payment of public and private debts; provided, however, that at the
option of the Company payment of interest may be made by check mailed to the address of the Person
entitled thereto as such address shall appear in the Security Register.

     Reference is hereby made to the further provisions of this Security set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place.

     Unless the certificate of authentication hereon has been executed by the Trustee referred to
on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under
the Indenture or be valid or obligatory for any purpose.

     IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed [under its
corporate seal].

Dated:

	 	 	 	 	 
	 	CONCHO RESOURCES INC.

 	 
	 	By:  	 	 
	 	 	 	 
	 	 	 	 

[Attest:

                                                            ]

14

 

SECTION 203. Form of Reverse of Security.

     This Security is one of a duly authorized issue of securities of the Company (herein called
the “Securities”), issued and to be issued in one or more series under an Indenture, dated as of
                                        ,
20___ (herein called the “Indenture”, which term shall have the meaning assigned to it in such instrument), among the Company, the Subsidiary Guarantors named therein and [TRUSTEE’S
NAME], as Trustee (herein called the “Trustee”, which term includes any successor trustee under the
Indenture), and reference is hereby made to the Indenture for a statement of the respective rights,
limitations of rights, duties and immunities thereunder of the Company, the Subsidiary Guarantors,
the Trustee, the holders of Senior Debt and the Holders of the Securities and of the terms upon
which the Securities are, and are to be, authenticated and delivered. This Security is one of the
series designated on the face hereof [if applicable, insert — , limited in aggregate principal
amount to $                     ].

     [If applicable, insert — The Securities of this series are subject to redemption upon not
less than 30 nor more than 60 days’ notice by mail, [if applicable, insert — (1) on                                          in
any year commencing with the year                      and ending with the year                      through operation of the
sinking fund for this series at a Redemption Price equal to 100% of the principal amount, and (2)]
at any time [if applicable, insert — on or after                                         ,
20___], as a whole or in part, at the
election of the Company, at the following Redemption Prices (expressed as percentages of the
principal amount): If redeemed [if applicable, insert — on or before                                         _%, and if
redeemed] during the 12-month period beginning                                          of the years indicated,

	 	 	 	 	 	 	 
	Redemption	 	Redemption
	Year	 	Price	 	Year	 	Price
	 	 	 	 	 	 	 

and thereafter at a Redemption Price equal to                     % of the principal amount, together in the case
of any such redemption [if applicable, insert — (whether through operation of the sinking fund or
otherwise)] with accrued interest to the Redemption Date, but interest installments whose Stated
Maturity is on or prior to such Redemption Date will be payable to the Holders of such Securities,
or one or more Predecessor Securities, of record at the close of business on the relevant Record
Dates referred to on the face hereof, all as provided in the Indenture.]

     [If applicable, insert — The Securities of this series are subject to redemption upon not
less than 30 nor more than 60 days’ notice by mail, (1) on                                          in any year commencing with
the year ___and ending with the year ___through operation of the sinking fund for this series
at the Redemption Prices for redemption through operation of the sinking fund (expressed as
percentages of the principal amount) set forth in the table below, and (2) at any time [if
applicable, insert — on or after                                         ], as a whole or in part, at the election of the
Company, at the Redemption Prices for redemption otherwise than through operation of

15

 

the sinking
fund (expressed as percentages of the principal amount) set forth in the table below: If redeemed
during the 12-month period beginning ___of the years indicated,

	 	 	 	 	 
	 	 	Redemption Price For Redemption	 	Redemption Price For Redemption
	 	 	Through Operation of the Sinking	 	Otherwise Than Through Operation
	Year	 	Fund	 	of the Sinking Fund
	 	 	 	 	 

and thereafter at a Redemption Price equal to                     % of the principal amount, together in the case
of any such redemption (whether through operation of the sinking fund or otherwise) with accrued interest to the Redemption Date, but interest installments whose Stated Maturity is on or prior to
such Redemption Date will be payable to the Holders of such Securities, or one or more Predecessor
Securities, of record at the close of business on the relevant Record Dates referred to on the face
hereof, all as provided in the Indenture.]

     [If applicable, insert — Notwithstanding the foregoing, the Company may not, prior to
                                        , redeem any Securities of this series as contemplated by [if applicable, insert —
clause (2) of] the preceding paragraph as a part of, or in anticipation of, any refunding operation
by the application, directly or indirectly, of moneys borrowed having an interest cost to the
Company (calculated in accordance with generally accepted financial practice) of less than                     %
per annum.]

     [If applicable, insert — The sinking fund for this series provides for the redemption on
                                         in each year beginning with the year                      and ending with the
year                      of [if
applicable, insert — not less than $                     (“mandatory sinking fund”) and not more than] $
                     aggregate principal amount of Securities of this series. Securities of this series
acquired or redeemed by the Company otherwise than through [if applicable, insert — mandatory]
sinking fund payments may be credited against subsequent [if applicable, insert — mandatory]
sinking fund payments otherwise required to be made [if applicable, insert — , in the inverse
order in which they become due].]

     [If the Security is subject to redemption of any kind, insert — In the event of redemption of
this Security in part only, a new Security or Securities of this series and of like tenor for the
unredeemed portion hereof will be issued in the name of the Holder hereof upon the cancellation
hereof.]

     [If the Security is subject to conversion, insert — Subject to the provisions of the
Indenture, the Holder has the right to convert the principal amount of this Security into fully
paid and nonassessable shares of Common Stock of the Company at the initial conversion price per
share of Common Stock of $                     (or $                     in principal amount of Securities for each such share of
Common Stock), or at the adjusted conversion price then in effect, if adjustment has been made as
provided in the Indenture, upon surrender of the Security to the Conversion Agent, together with a
fully executed notice in substantially the form attached hereto and, if required by the Indenture,
an amount equal to accrued interest payable on this Security.]

     The indebtedness evidenced by this Security is, to the extent provided in the Indenture,
subordinate and subject in right of payment to the prior payment in full of all Senior Debt of the

16

 

Company, and this Security is issued subject to the provisions of the Indenture with respect
thereto. Each Holder of this Security, by accepting the same, (a) agrees to and shall be bound by
such provisions, (b) authorizes and directs the Trustee on his behalf to take such action as may be
necessary or appropriate to effectuate the subordination so provided and (c) appoints the Trustee
his attorney-in-fact for any and all such purposes.

     [If applicable, insert — As provided in the Indenture and subject to certain limitations
therein set forth, the obligations of the Company under this Security are guaranteed on a senior
subordinated basis pursuant to the Indenture as indicated in the
notation of Subsidiary Guarantee endorsed hereon. The Indenture provides that a Subsidiary Guarantor shall be released from its Subsidiary Guarantee upon
compliance with certain conditions.]

     [If applicable, insert — The Indenture contains provisions for Defeasance at any time of [the
entire indebtedness of this Security] [or] [certain restrictive covenants and Events of Default
with respect to this Security] [, in each case] upon compliance with certain conditions set forth
in the Indenture.]

     [If the Security is not an Original Issue Discount Security, insert — If an Event of Default
with respect to Securities of this series shall occur and be continuing, the principal of the
Securities of this series may be declared due and payable in the manner and with the effect
provided in the Indenture.]

     [If the Security is an Original Issue Discount Security, insert — If an Event of Default with
respect to Securities of this series shall occur and be continuing, an amount of principal of the
Securities of this series may be declared due and payable in the manner and with the effect
provided in the Indenture. Such amount shall be equal to — insert formula for determining the
amount. Upon payment (i) of the amount of principal so declared due and payable and (ii) of
interest on any overdue principal, premium and interest (in each case to the extent that the
payment of such interest shall be legally enforceable), all of the Company’s obligations in respect
of the payment of the principal of and premium and interest, if any, on the Securities of this
series shall terminate.]

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Securities of each series to be affected under the Indenture at any time by the Company and the
Trustee with the consent of the Holders of a majority in principal amount of the Securities at the
time Outstanding of each series to be affected. The Indenture also contains provisions permitting
the Holders of specified percentages in principal amount of the Securities of each series at the
time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by
the Company with certain provisions of the Indenture and certain past defaults under the Indenture
and their consequences. Any such consent or waiver by the Holder of this Security shall be
conclusive and binding upon such Holder and upon all future Holders of this Security and of any
Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof,
whether or not notation of such consent or waiver is made upon this Security.

17

 

     As provided in and subject to the provisions of the Indenture, the Holder of this Security
shall not have the right to institute any proceeding with respect to the Indenture or for the
appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall
have previously given the Trustee written notice of a continuing Event of Default with respect to
the Securities of this series, the Holders of not less than 25% in principal amount of the
Securities of this series at the time Outstanding shall have made written request to the Trustee to
institute proceedings in respect of such Event of Default as Trustee and offered the Trustee
reasonable security or indemnity, and the Trustee shall not have received from the Holders of a
majority in principal amount of Securities of this series at the time Outstanding a direction
inconsistent with such request, and shall have failed to institute any such proceeding, for 60 days
after receipt of such notice, request and offer of indemnity. The foregoing shall not apply to any
suit instituted by
the Holder of this Security for the enforcement of any payment of principal hereof or any
premium or interest hereon on or after the respective due dates expressed herein [if applicable,
insert — or the right to convert this Security in accordance with its terms].

     No reference herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay
the principal of and any premium and interest on this Security at the times, place and rate, and in
the coin or currency, herein prescribed [if applicable, insert — and to convert this Security in
accordance with its terms].

     As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Security is registrable in the Security Register, upon surrender of this Security
for registration of transfer at the office or agency of the Company in any place where the
principal of and any premium and interest on this Security are payable, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the Company and the
Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing,
and thereupon one or more new Securities of this series and of like tenor, of authorized
denominations and for the same aggregate principal amount, will be issued to the designated
transferee or transferees.

     The Securities of this series are issuable only in registered form without coupons in
denominations of $                      and any integral multiple thereof. As provided in the Indenture and
subject to certain limitations therein set forth, Securities of this series are exchangeable for a
like aggregate principal amount of Securities of this series and of like tenor of a different
authorized denomination, as requested by the Holder surrendering the same.

     No service charge shall be made for any such registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

     Prior to due presentment of this Security for registration of transfer, the Company, the
Trustee and any agent of the Company or the Trustee may treat the Person in whose name this
Security is registered as the owner hereof for all purposes, whether or not this Security be
overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the
contrary.

18

 

     All terms used in this Security which are defined in the Indenture shall have the meanings
assigned to them in the Indenture.

SECTION 204. Form of Notation of Subsidiary Guarantee.

NOTATION OF SUBSIDIARY GUARANTEE

     Each of the Subsidiary Guarantors (which
term includes any successor Person under the Indenture) has fully, unconditionally and absolutely guaranteed, to the extent set forth in
the Indenture and subject to the provisions in the Indenture, the due and punctual payment of the principal of, and premium, if any,
and interest on the Securities and all other amounts due and payable under the Indenture and the Securities by the Company.

19

 

     The obligations of the Subsidiary Guarantors to the
Holders of Securities and to the Trustee pursuant to the Subsidiary Guarantee and the Indenture are expressly set forth in Article Thirteen
of the Indenture and reference is hereby made to the Indenture for the precise terms of the Subsidiary Guarantee.

20

 

	 	 	 	 	 	 	 
	 	 	[Insert Names of Subsidiary Guarantors]
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

SECTION 205. Form of Legend for Global Securities.

     Unless otherwise specified as contemplated by Section 301 for the Securities evidenced
thereby, every Global Security authenticated and delivered hereunder shall bear a legend in
substantially the following form:

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE
INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A
DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED
IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF
THIS SECURITY IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF
ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT
IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

SECTION 206. Form of Trustee’s Certificate of Authentication.

     The Trustee’s certificates of authentication shall be in substantially the following form:

     This is one of the Securities of the series designated therein referred to in the
within-mentioned Indenture.

	 	 	 	 	 	 	 
	 	 	[TRUSTEE’S NAME],

As Trustee
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 
	 	 	 	 
 	 	 
	 	 	Authorized Officer

21

 

SECTION 207. Form of Conversion Notice.

     Each convertible Security shall have attached thereto, or set forth on the reverse of the
Security, a notice of conversion in substantially the following form:

Conversion Notice

To: Concho Resources Inc.

     The undersigned owner of this Security hereby: (i) irrevocably exercises the option to convert
this Security, or the portion hereof below designated, for shares of Common Stock of Concho
Resources Inc. in accordance with the terms of the Indenture referred to in this Security and (ii)
directs that such shares of Common Stock deliverable upon the conversion, together with any check
in payment for fractional shares and any Security(ies) representing any unconverted
principal amount hereof, be issued and delivered to the registered holder hereof unless a
different name has been indicated below. If shares are to be delivered registered in the name of a
Person other than the undersigned, the undersigned will pay all transfer taxes payable with respect
thereto. Any amount required to be paid by the undersigned on account of interest accompanies this
Security.

	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 

	 	 	 	 	 	Signature

     Fill in for registration of shares if to be delivered, and of Securities if to be issued,
otherwise than to and in the name of the registered holder.

	 	 	 
	 

	 	 
	 

	 	Social Security or other
	 

	 	Taxpayer Identification Number

	 	 	 
	 

(Name)

	 	 
	 
	 	 
	 

(Please print name and address)

	 	 

Principal amount to be converted: (if less than all)

$                                                            

Signature Guarantee*

 

			
	*	 	Participant in a recognized Signature Guarantee Medallion Program (or other signature acceptable
to the Trustee).

22

 

ARTICLE THREE

THE SECURITIES

SECTION 301. Amount Unlimited; Issuable in Series.

     The aggregate principal amount of Securities which may be authenticated and delivered under
this Indenture is unlimited.

     The Securities may be issued in one or more series. There shall be established in or pursuant
to a Board Resolution and, subject to Section 303, set forth, or determined in the manner provided,
in an Officers’ Certificate, or established in one or more indentures supplemental hereto, prior to
the issuance of Securities of any series,

     (1) the title of the Securities of the series (which shall distinguish the Securities
of the series from Securities of any other series);

     (2) if the Securities of the series will not have the benefit of the Subsidiary
Guarantees of the Subsidiary Guarantors;

     (3) any change to the subordination provisions which applies to the Securities of the
series from those contained in Article Twelve with respect to the Securities and/or, if
applicable, those contained in Article Fourteen with respect to the Subsidiary Guarantees,
and the definitions of Senior Debt and Designated Senior Debt which shall apply to the
Securities of the series, and, if applicable, the Subsidiary Guarantees;

     (4) any limit upon the aggregate principal amount of the Securities of the series which
may be authenticated and delivered under this Indenture (except for Securities authenticated
and delivered upon registration of transfer of, or in exchange for, or in lieu of, other
Securities of the series pursuant to Section 304, 305, 306, 906 or 1107 and except for any
Securities which, pursuant to Section 303, are deemed never to have been authenticated and
delivered hereunder);

     (5) the Person to whom any interest on a Security of the series shall be payable, if
other than the Person in whose name that Security (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such interest;

     (6) the date or dates on which the principal of any Securities of the series is
payable;

     (7) the rate or rates at which any Securities of the series shall bear interest, if
any, the date or dates from which any such interest shall accrue, the Interest Payment Dates
on which any such interest shall be payable and the Regular Record Date for any such
interest payable on any Interest Payment Date;

     (8) the place or places where the principal of and any premium and interest on any
Securities of the series shall be payable;

23

 

     (9) the period or periods within which, the price or prices at which and the terms and
conditions upon which any Securities of the series may be redeemed, in whole or in part, at
the option of the Company and, if other than by a Board Resolution, the manner in which any
election by the Company to redeem the Securities shall be evidenced;

     (10) the obligation, if any, of the Company to redeem or purchase any Securities of the
series pursuant to any sinking fund or analogous provisions or at the option of the Holder
thereof and the period or periods within which, the price or prices at which and the terms
and conditions upon which any Securities of the series shall be redeemed or purchased, in
whole or in part, pursuant to such obligation;

     (11) if other than denominations of $1,000 and any integral multiple thereof, the
denominations in which any Securities of the series shall be issuable;

     (12) if the amount of principal of or any premium or interest on any Securities of the
series may be determined with reference to an index or pursuant to a formula, the manner in
which such amounts shall be determined;

     (13) if other than the currency of the United States of America, the currency,
currencies or currency units in which the principal of or any premium or interest on any
Securities of the series shall be payable and the manner of determining the equivalent
thereof in the currency of the United States of America for any purpose, including for
purposes of the definition of “Outstanding” in Section 101;

     (14) if the principal of or any premium or interest on any Securities of the series is
to be payable, at the election of the Company or the Holder thereof, in one or more
currencies or currency units other than that or those in which such Securities are stated to
be payable, the currency, currencies or currency units in which the principal of or any
premium or interest on such Securities as to which such election is made shall be payable,
the periods within which and the terms and conditions upon which such election is to be made
and the amount so payable (or the manner in which such amount shall be determined);

     (15) if other than the entire principal amount thereof, the portion of the principal
amount of any Securities of the series which shall be payable upon declaration of
acceleration of the Maturity thereof pursuant to Section 502;

     (16) if the principal amount payable at the Stated Maturity of any Securities of the
series will not be determinable as of any one or more dates prior to the Stated Maturity,
the amount which shall be deemed to be the principal amount of such Securities as of any
such date for any purpose thereunder or hereunder, including the principal amount thereof
which shall be due and payable upon any Maturity other than the Stated Maturity or which
shall be deemed to be Outstanding as of any date prior to the Stated Maturity (or, in any
such case, the manner in which such amount deemed to be the principal amount shall be
determined);

24

 

     (17) if applicable, that the Securities of the series, in whole or any specified part,
shall be defeasible pursuant to Section 1502 or Section 1503 or both such Sections and, if
other than by a Board Resolution, the manner in which any election by the Company to defease
such Securities shall be evidenced;

     (18) if applicable, that any Securities of the series shall be issuable in whole or in
part in the form of one or more Global Securities and, in such case, the respective
Depositories for such Global Securities, the form of any legend or legends which shall be
borne by any such Global Security in addition to or in lieu of that set forth in Section 205
and any circumstances in addition to or in lieu of those set forth in clause (2) of the last
paragraph of Section 305 in which any such Global Security may be exchanged in whole or in
part for Securities registered, and any transfer of such Global Security in whole or in part
may be registered, in the name or names of Persons other than the Depositary for such Global
Security or a nominee thereof;

     (19) any addition to or change in the Events of Default which applies to any Securities
of the series and any change in the right of the Trustee or the requisite Holders of such
Securities to declare the principal amount thereof due and payable pursuant to Section 502;

     (20) any addition to or change in the covenants set forth in Article Ten which applies
to Securities of the series;

     (21) whether the Securities of the series will be convertible into Common Stock (or
cash in lieu thereof) and, if so, the terms and conditions upon which such conversion will
be effected; and

     (22) any other terms of the series (which terms shall not be inconsistent with the
provisions of this Indenture, except as permitted by Section 901(5)).

     All Securities of any one series shall be substantially identical except as to denomination
and except as may otherwise be provided in or pursuant to the Board Resolution referred to above
and (subject to Section 303) set forth, or determined in the manner provided, in the Officers’
Certificate referred to above or in any such indenture supplemental hereto.

     If any of the terms of the series are established by action taken pursuant to a Board
Resolution, a copy of an appropriate record of such action shall be certified by the Secretary or
an Assistant Secretary of the Company and delivered to the Trustee at or prior to the delivery of
the Officers’ Certificate setting forth the terms of the series.

     The Securities of each series shall have the benefit of the Subsidiary Guarantees unless the
Company elects otherwise upon the establishment of a series pursuant to this Section 301.

SECTION 302. Denominations.

     The Securities of each series shall be issuable only in registered form without coupons and
only in such denominations as shall be specified as contemplated by Section 301. In the absence of
any such specified denomination with respect to the Securities of any series, the

25

 

Securities of
such series shall be issuable in denominations of $1,000 and any integral multiple thereof.

SECTION 303. Execution, Authentication, Delivery and Dating.

     The Securities shall be executed on behalf of the Company by its Chairman of the Board of
Directors, its Vice Chairman of the Board of Directors, its President or one of its Vice
Presidents. If its corporate seal is reproduced thereon, then it shall be attested by its
Secretary or one of its Assistant Secretaries. The signature of any of these officers on the
Securities may be manual or facsimile.

     Securities bearing the manual or facsimile signatures of individuals who were at any time the
proper officers of the Company shall bind the Company, notwithstanding that such individuals or any
of them have ceased to hold such offices prior to the authentication and delivery of such
Securities or did not hold such offices at the date of such Securities.

     At any time and from time to time after the execution and delivery of this Indenture, the
Company may deliver Securities of any series executed by the Company and, if applicable, having
endorsed thereon the notations of Subsidiary Guarantees executed as provided in Section 1303 by the Subsidiary
Guarantors to the Trustee for authentication, together with a Company Order for the authentication
and delivery of such Securities, and the Trustee in accordance with the Company Order shall
authenticate and deliver such Securities. If the form or terms of the Securities of the series
have been established by or pursuant to one or more Board Resolutions as permitted by Sections 201
and 301, in authenticating such Securities, and accepting the additional responsibilities under
this Indenture in relation to such Securities, the Trustee shall be entitled to receive, and
(subject to Section 601) shall be fully protected in relying upon, an Opinion of Counsel stating,

     (1) if the form of such Securities has been established by or pursuant to Board
Resolution as permitted by Section 201, that such form has been established in conformity
with the provisions of this Indenture;

     (2) if the terms of such Securities have been established by or pursuant to Board
Resolution as permitted by Section 301, that such terms have been established in conformity
with the provisions of this Indenture; and

     (3) that such Securities, when authenticated and delivered by the Trustee and issued by
the Company in the manner and subject to any conditions specified in such Opinion of
Counsel, will constitute valid and legally binding obligations of the Company, and, if
applicable, the notations of Subsidiary Guarantees endorsed thereon will constitute valid and legally
binding obligations of the Subsidiary Guarantors, enforceable in accordance with their
terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium
and similar laws of general applicability relating to or affecting creditors’ rights and to
general equity principles.

     If such form or terms have been so established, the Trustee shall not be required to
authenticate such Securities if the issue of such Securities pursuant to this Indenture will affect

26

 

the Trustee’s own rights, duties or immunities under the Securities and this Indenture or otherwise
in a manner which is not reasonably acceptable to the Trustee.

     Notwithstanding the provisions of Section 301 and of the preceding paragraph, if all
Securities of a series are not to be originally issued at one time, it shall not be necessary to
deliver the Officers’ Certificate otherwise required pursuant to Section 301 or the Company Order
and Opinion of Counsel otherwise required pursuant to such preceding paragraph at or prior to the
authentication of each Security of such series if such documents are delivered at or prior to the
authentication upon original issuance of the first Security of such series to be issued.

     Each Security shall be dated the date of its authentication.

     No Security or Subsidiary Guarantee shall be entitled to any benefit under this Indenture or
be valid or obligatory for any purpose unless there appears on such Security a certificate of
authentication substantially in the form provided for herein executed by the Trustee by manual
signature, and such certificate upon any Security shall be conclusive evidence, and the only
evidence, that such Security has been duly authenticated and delivered hereunder.
Notwithstanding the foregoing, if any Security shall have been authenticated and delivered
hereunder but never issued and sold by the Company, and the Company shall deliver such Security to
the Trustee for cancellation as provided in Section 309, for all purposes of this Indenture such
Security shall be deemed never to have been authenticated and delivered hereunder and shall never
be entitled to the benefits of this Indenture.

SECTION 304. Temporary Securities.

     Pending the preparation of definitive Securities of any series, the Company may execute, and
upon Company Order the Trustee shall authenticate and deliver, temporary Securities which are
printed, lithographed, typewritten, mimeographed or otherwise produced, in any authorized
denomination, substantially of the tenor of the definitive Securities and, if applicable, having
endorsed thereon the notations of Subsidiary Guarantees in lieu of which they are issued and with such
appropriate insertions, omissions, substitutions and other variations as the officers executing
such Securities and, if applicable, notations of Subsidiary Guarantees may determine, as evidenced by their
execution of such Securities and notations of Subsidiary Guarantees.

     If temporary Securities of any series are issued, the Company will cause definitive Securities
of that series to be prepared without unreasonable delay. After the preparation of definitive
Securities of such series, the temporary Securities of such series shall be exchangeable for
definitive Securities of such series upon surrender of the temporary Securities of such series at
the office or agency of the Company in a Place of Payment for that series, without charge to the
Holder. Upon surrender for cancellation of any one or more temporary Securities of any series, the
Company shall execute and the Trustee shall authenticate and deliver in exchange therefor one or
more definitive Securities of the same series, of any authorized denominations and of like tenor
and aggregate principal amount and, if applicable, having endorsed
thereon the notations of Subsidiary Guarantees
executed by the Subsidiary Guarantors. Until so exchanged, the temporary Securities of any series
shall in all respects be entitled to the same benefits under this Indenture as definitive
Securities of such series and tenor.

27

 

SECTION 305. Registration, Registration of Transfer and Exchange.

     The Company shall cause to be kept at the Corporate Trust Office of the Trustee a register
(the register maintained in such office and in any other office or agency of the Company in a Place
of Payment being herein sometimes collectively referred to as the “Security Register”) in which,
subject to such reasonable regulations as it may prescribe, the Company shall provide for the
registration of Securities and of transfers of Securities. The Trustee is hereby appointed
“Security Registrar” for the purpose of registering Securities and transfers of Securities as
herein provided.

     Upon surrender for registration of transfer of any
Security of a series at the office or agency of the Company in a Place of Payment for that series, the Company shall execute, if
applicable the Subsidiary Guarantors shall execute the notation of Subsidiary Guarantee endorsed thereon and
the Trustee shall authenticate and deliver, in the name of the designated transferee or
transferees, one or more new Securities of the same series, of any authorized denominations and of
like tenor and aggregate principal amount.

     At the option of the Holder, Securities of any series may be exchanged for other Securities of
the same series, of any authorized denominations and of like tenor and aggregate principal amount,
upon surrender of the Securities to be exchanged at such office or agency. Whenever any Securities
are so surrendered for exchange, the Company shall execute, if applicable the Subsidiary Guarantors
shall execute the notation of Subsidiary Guarantees endorsed thereon and the Trustee shall authenticate and
deliver, the Securities which the Holder making the exchange is entitled to receive.

     All Securities issued upon any
registration of transfer or exchange of Securities shall be the valid obligations of the Company, evidencing the same debt, and entitled to
the same benefits under this Indenture, as the Securities surrendered upon such registration of transfer or exchange.

     Every Security presented or surrendered for registration of transfer or for exchange shall (if
so required by the Company or the Trustee) be duly endorsed, or be accompanied by a written
instrument of transfer in form satisfactory to the Company and the Security Registrar duly
executed, by the Holder thereof or his attorney duly authorized in writing.

     No service charge shall be made for any registration of transfer or exchange of Securities,
but the Company may require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any registration of transfer or exchange of
Securities, other than exchanges pursuant to Section 304, 906, 1107 or otherwise not involving any
transfer.

     If the Securities of any series (or of any series and specified tenor) are to be redeemed in
part, the Company shall not be required (A) to issue, register the transfer of or exchange any
Securities of that series (or of that series and specified tenor, as the case may be) during a
period beginning at the opening of business 15 days before the day of the mailing of a notice of
redemption of any such Securities selected for redemption under Section 1103 and ending at the

28

 

close of business on the day of such mailing, or (B) to register the transfer of or exchange any
Security so selected for redemption in whole or in part, except the unredeemed portion of any
Security being redeemed in part.

     The provisions of clauses (1), (2), (3) and (4) below shall apply only to Global Securities:

     (1) Each Global Security authenticated under this Indenture shall be registered in the
name of the Depositary designated for such Global Security or a nominee thereof and
delivered to such Depositary or a nominee thereof or custodian therefor, and each such
Global Security shall constitute a single Security for all purposes of this Indenture.

     (2) Notwithstanding any other provision in this Indenture, no Global Security may be
exchanged in whole or in part for Securities registered, and no transfer of a Global
Security in whole or in part may be registered, in the name of any Person other than the
Depositary for such Global Security or a nominee thereof unless (A) such Depositary (i) has
notified the Company that it is unwilling or unable to continue as Depositary for such
Global Security or (ii) has ceased to be a clearing agency registered under the Exchange Act, and in either case the Company fails to appoint a successor Depositary within 90
days, (B) there shall have occurred and be continuing an Event of Default with respect to
such Global Security and the Depositary shall have notified the Trustee of its decision to
exchange such Global Security for Securities in certificated form, (C) subject to the rules of the Depositary, the Company shall
have elected to terminate the book-entry system through the Depositary or (D) there shall exist
such circumstances, if any, in addition to or in lieu of the foregoing as have been
specified for this purpose as contemplated by Section 301.

     (3) Subject to clause (2) above, any exchange of a Global Security for other Securities
may be made in whole or in part, and all Securities issued in exchange for a Global Security
or any portion thereof shall be registered in such names as the Depositary for such Global
Security shall direct.

     (4) Every Security authenticated and delivered upon registration of transfer of, or in
exchange for or in lieu of, a Global Security or any portion thereof, whether pursuant to
this Section, Section 304, 306, 906 or 1107 or otherwise, shall be authenticated and
delivered in the form of, and shall be, a Global Security, unless such Security is
registered in the name of a Person other than the Depositary for such Global Security or a
nominee thereof.

SECTION 306. Mutilated, Destroyed, Lost and Stolen Securities.

     If any mutilated Security is surrendered to the
Trustee, the Company shall execute and the Trustee shall authenticate and deliver in exchange therefor a new Security of the same series
and of like tenor and principal amount and bearing a number not contemporaneously outstanding and, if applicable, the Subsidiary
Guarantors shall execute the notation of Subsidiary Guarantee endorsed thereon.

     If there shall be delivered to the Company and the Trustee (i) evidence to their satisfaction
of the destruction, loss or theft of any Security and (ii) such security or indemnity as may be
required by them to save each of them and any agent of either of them harmless from any loss that
any of them may suffer if a Security is replaced, then, in the absence of notice to the

29

 

Company or the Trustee that such Security has been acquired by a protected purchaser, the Company shall
execute and the Trustee shall authenticate and deliver, in lieu of any such destroyed, lost or
stolen Security, a new Security of the same series and of like tenor and principal amount and
bearing a number not contemporaneously outstanding and, if applicable, the Subsidiary Guarantors shall execute the notation of
Subsidiary Guarantee endorsed thereon.

     In case any such mutilated, destroyed, lost or stolen Security has become or is about to
become due and payable or is to be converted, the Company in its discretion may, instead of issuing
a new Security, pay or authorize the conversion of such Security (without surrender thereof save in
the case of a mutilated Security).

     Upon the issuance of any new Security under this Section, the Company may require the payment
of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation
thereto and any other expenses (including the fees and expenses of the Trustee) connected
therewith.

     Every new Security of any series issued pursuant to this Section in lieu of any destroyed,
lost or stolen Security shall constitute an original additional contractual obligation of the Company,
whether or not the destroyed, lost or stolen Security shall be at
any time enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally
and proportionately with any and all other Securities of that series duly issued hereunder.

     The provisions of this Section are exclusive and shall preclude (to the extent lawful) all
other rights and remedies with respect to the replacement, payment or conversion of mutilated,
destroyed, lost or stolen Securities.

SECTION 307. Payment of Interest; Interest Rights Preserved.

     Except as otherwise provided as contemplated by Section 301 with respect to any series of
Securities, interest on any Security which is payable, and is punctually paid or duly provided for,
on any Interest Payment Date shall be paid to the Person in whose name that Security (or one or
more Predecessor Securities) is registered at the close of business on the Regular Record Date for
such interest.

     Any interest on any Security of any series which is payable, but is not punctually paid or
duly provided for, on any Interest Payment Date (herein called “Defaulted Interest”) shall
forthwith cease to be payable to the Holder on the relevant Regular Record Date by virtue of having
been such Holder, and such Defaulted Interest may be paid by the Company, at its election in each
case, as provided in clause (1) or (2) below:

     (1) The Company may elect to make payment of any Defaulted Interest to the Persons in
whose names the Securities of such series (or their respective Predecessor Securities) are
registered at the close of business on a Special Record Date for the payment of such
Defaulted Interest, which shall be fixed in the following manner. The Company shall notify
the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each
Security of such series and the date of the proposed payment, and at the same time the
Company shall deposit with the Trustee an amount of money equal to

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the aggregate amount
proposed to be paid in respect of such Defaulted Interest or shall make arrangements
satisfactory to the Trustee for such deposit prior to the date of the proposed payment, such
money when deposited to be held in trust for the benefit of the Persons entitled to such
Defaulted Interest as in this clause provided. Thereupon the Trustee shall fix a Special
Record Date for the payment of such Defaulted Interest which shall be not more than 15 days
and not less than 10 days prior to the date of the proposed payment and not less than 10
days after the receipt by the Trustee of the notice of the proposed payment. The Trustee
shall promptly notify the Company of such Special Record Date and, in the name and at the
expense of the Company, shall cause notice of the proposed payment of such Defaulted
Interest and the Special Record Date therefor to be given to each Holder of Securities of
such series in the manner set forth in Section 106, not less than 10 days prior to such
Special Record Date. Notice of the proposed payment of such Defaulted Interest and the
Special Record Date therefor having been so mailed, such Defaulted Interest shall be paid to
the Persons in whose names the Securities of such series (or their respective Predecessor Securities) are registered at the close of business on such Special Record
Date and shall no longer be payable pursuant to the following clause (2).

     (2) The Company may make payment of any Defaulted Interest on the Securities of any
series in any other lawful manner not inconsistent with the requirements of any securities
exchange on which such Securities may be listed, and upon such notice as may be required by
such exchange, if, after notice given by the Company to the Trustee of the proposed payment
pursuant to this clause, such manner of payment shall be deemed practicable by the Trustee.

     Subject to the foregoing provisions of this Section, each Security delivered under this
Indenture upon registration of transfer of or in exchange for or in lieu of any other Security
shall carry the rights to interest accrued and unpaid, and to accrue, which were carried by such
other Security.

SECTION 308. Persons Deemed Owners.

     Prior to due presentment of a Security for registration of transfer, the Company, the
Subsidiary Guarantors, the Trustee and any agent of the Company, the Subsidiary Guarantors, or the
Trustee may treat the Person in whose name such Security is registered as the owner of such
Security for the purpose of receiving payment of principal of and any premium and (subject to
Section 307) any interest on such Security and for all other purposes whatsoever, whether or not
such Security be overdue, and neither the Company, any Subsidiary Guarantor, the Trustee nor any
agent of the Company, any Subsidiary Guarantor, or the Trustee shall be affected by notice to the
contrary.

SECTION 309. Cancellation.

     All Securities surrendered for payment, redemption, purchase, registration of transfer or
exchange or for credit against any sinking fund payment shall, if surrendered to any Person other
than the Trustee, be delivered to the Trustee and shall be promptly cancelled by it. The Company
may at any time deliver to the Trustee for cancellation any Securities previously

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authenticated
and delivered hereunder which the Company may have acquired in any manner whatsoever, and may deliver
to the Trustee (or to any other Person for delivery to the Trustee) for cancellation any Securities
previously authenticated hereunder which the Company has not issued and sold, and all Securities so
delivered shall be promptly cancelled by the Trustee. No Securities shall be authenticated in lieu
of or in exchange for any Securities cancelled as provided in this Section, except as expressly
permitted by this Indenture. All cancelled Securities held by the Trustee shall be disposed of in accordance with its standard
procedures, unless as directed by a Company Order.

SECTION 310. Computation of Interest.

     Except as otherwise specified as contemplated by Section 301 for Securities of any series,
interest on the Securities of each series shall be computed on the basis of a 360-day year of
twelve 30-day months.

ARTICLE FOUR

SATISFACTION AND DISCHARGE

SECTION 401. Satisfaction and Discharge of Indenture.

     This Indenture shall upon Company Request cease to be of further effect with respect to the
Securities of any series, and the Trustee, at the expense of the Company, shall execute proper
instruments acknowledging satisfaction and discharge of this Indenture, when

     (1) either

     (A) all Securities of such series theretofore authenticated and delivered
(other than (i) Securities of such series which have been destroyed, lost or stolen
and which have been replaced or paid as provided in Section 306 and (ii) Securities
of such series for whose payment money has theretofore been deposited in trust or
segregated and held in trust by the Company and thereafter repaid to the Company or
discharged from such trust, as provided in Section 1003) have been delivered to the
Trustee for cancellation; or

     (B) all such Securities of such series not theretofore delivered to the Trustee
for cancellation

     (i) have become due and payable, or

     (ii) will become due and payable at their Stated Maturity within one
year, or

     (iii) are to be called for redemption within one year under
arrangements satisfactory to the Trustee for the giving of notice of
redemption by the Trustee in the name, and at the expense, of the Company,

and the Company or, if applicable, a Subsidiary Guarantor, in the case of (i), (ii)
or (iii) above, has irrevocably deposited or caused to be deposited with the Trustee

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as trust funds in trust for the purpose money in an amount sufficient, without
consideration of any reinvestment of interest, to pay and discharge the entire
indebtedness on such Securities not theretofore delivered to the Trustee for
cancellation, for principal and any premium and interest to the date of such deposit
(in the case of Securities which have become due and payable) or to the Stated
Maturity or Redemption Date, as the case may be;

     (2) the Company or a Subsidiary Guarantor has paid or caused to be paid all other sums
payable hereunder by the Company and the Subsidiary Guarantors with respect to the
Securities of such series; and

     (3) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent herein provided for relating to the
satisfaction and discharge of this Indenture with respect to the Securities of such series
have been complied with.

     Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the
Company to the Trustee under Section 607, the obligations of the Company with respect to the
Securities of such series under Sections 304, 305, 306, 1002 and 1003, any surviving rights of
conversion, the obligations of the Trustee to any Authenticating Agent under Section 614 and, if
money shall have been deposited with the Trustee pursuant to subclause (B) of clause (1) of this
Section, the obligations of the Trustee under Section 402 and the last paragraph of Section 1003
shall survive.

SECTION 402. Application of Trust Money.

     Subject to the provisions of the last paragraph of Section 1003, all money deposited with the
Trustee pursuant to Section 401 shall be held in trust and applied by it, in accordance with the
provisions of the Securities and this Indenture, to the payment, either directly or through any
Paying Agent (including the Company acting as its own Paying Agent) as the Trustee may determine,
to the Persons entitled thereto, of the principal and any premium and interest for whose payment
such money has been deposited with the Trustee.

ARTICLE FIVE

REMEDIES

SECTION 501. Events of Default.

     “Event of Default”, wherever used herein with respect to Securities of any series, means any
one of the following events (whatever the reason for such Event of Default and whether it shall be
occasioned by the provisions of Article Twelve or be voluntary or involuntary or be effected by
operation of law or pursuant to any judgment, decree or order of any court or any order, rule or
regulation of any administrative or governmental body):

     (1) default in the payment of any interest upon any Security of that series when it
becomes due and payable, and continuance of such default for a period of 30 days; or

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     (2) default in the payment of the principal of or any premium on any Security of that
series at its Maturity; or

     (3) default in the deposit of any sinking fund payment, when and as due by the terms of
a Security of that series; or

     (4) default in the performance, or breach, of any covenant of the Company or, if the
Subsidiary Guarantors have issued Subsidiary Guarantees with respect to the Securities of
such series, any Subsidiary Guarantor in Article Eight of this Indenture; or

     (5) default in the performance, or breach, of any covenant or warranty of the Company
or, if the Subsidiary Guarantors have issued Subsidiary Guarantees with respect to the
Securities of such series, any Subsidiary Guarantor in this Indenture (other than a covenant
or warranty a default in whose performance or whose breach is elsewhere in this Section
specifically dealt with or which has expressly been included in this Indenture solely for
the benefit of series of Securities other than that series), and continuance of such default
or breach for a period of 60 days after there has been given, by registered or certified mail, to the Company by the Trustee or to the Company and the Trustee by the
Holders of at least 25% in principal amount of the Outstanding Securities of that series a
written notice specifying such default or breach and requiring it to be remedied and stating
that such notice is a “Notice of Default” hereunder; or

     (6) any Debt of the Company, any Significant Subsidiary or, if the Subsidiary
Guarantors have issued Subsidiary Guarantees with respect to the Securities of such series,
any Subsidiary Guarantor is not paid within any applicable grace period after final maturity
or is accelerated by the holders thereof because of a default and the total amount of such
Debt unpaid or accelerated exceeds $20.0 million, or its foreign currency equivalent at the
time; or

     (7) any judgment or decree for the payment of money in excess of $20.0 million or its
foreign currency equivalent at the time it is entered against the Company, any Significant
Subsidiary or, if the Subsidiary Guarantors have issued Subsidiary Guarantees with respect
to the Securities of such series, any Subsidiary Guarantor, remains outstanding for a period
of 60 consecutive days following the entry of such judgment or decree and is not discharged,
waived or the execution thereof stayed; or

     (8) the entry by a court having jurisdiction in the premises of (A) a decree or order
for relief in respect of the Company, any Significant Subsidiary or, if the Subsidiary
Guarantors have issued Subsidiary Guarantees with respect to the Securities of such series,
any Subsidiary Guarantor in an involuntary case or proceeding under any applicable Federal
or State bankruptcy, insolvency, reorganization or other similar law or (B) a decree or
order adjudging the Company, any Significant Subsidiary or any such Subsidiary Guarantor a
bankrupt or insolvent, or approving as properly filed a petition seeking reorganization,
arrangement, adjustment or composition of or in respect of the Company, any Significant
Subsidiary or any such Subsidiary Guarantor under any applicable Federal or State law, or
appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator or other
similar official of the Company, any Significant Subsidiary

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or any such Subsidiary Guarantor
or of any substantial part of its or their property, or ordering the winding up or
liquidation of its or their affairs, and the continuance of any such decree or order for
relief or any such other decree or order unstayed and in effect for a period of 60
consecutive days; or

     (9) the commencement by the Company, any Significant Subsidiary or, if the Subsidiary
Guarantors have issued Subsidiary Guarantees with respect to the Securities of such series,
any Subsidiary Guarantor of a voluntary case or proceeding under any applicable Federal or
State bankruptcy, insolvency, reorganization or other similar law or of any other case or
proceeding to be adjudicated a bankrupt or insolvent, or the consent by it or them to the
entry of a decree or order for relief in respect of the Company, any Significant Subsidiary
or any such Subsidiary Guarantor in an involuntary case or proceeding under any applicable
Federal or State bankruptcy, insolvency, reorganization or other similar law or to the
commencement of any bankruptcy or insolvency case or proceeding against it or them, or the
filing by it or them of a petition or answer or consent seeking reorganization or relief
under any applicable Federal or State law, or the consent by it or them to the filing of
such petition or to the appointment of or taking possession by
a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar
official of the Company, any Significant Subsidiary or any such Subsidiary Guarantor or of
any substantial part of its or their property, or the making by it or them of an assignment
for the benefit of creditors, or the admission by it or them in writing of its or their
inability to pay its or their debts generally as they become due, or the taking of corporate
action by the Company, any Significant Subsidiary or any such Subsidiary Guarantor in
furtherance of any such action; or

     (10) in the event the Subsidiary Guarantors have issued Subsidiary Guarantees with
respect to the Securities of such series, the Subsidiary Guarantee of any Subsidiary
Guarantor is held by a final non-appealable order or judgment of a court of competent
jurisdiction to be unenforceable or invalid or ceases for any reason to be in full force and
effect (other than in accordance with the terms of this Indenture) or any Subsidiary
Guarantor or any Person acting on behalf of any Subsidiary Guarantor denies or disaffirms
such Subsidiary Guarantor’s obligations under its Subsidiary Guarantee (other than by reason
of a release of such Subsidiary Guarantor from its Subsidiary Guarantee in accordance with
the terms of this Indenture); or

     (11) any other Event of Default provided with respect to Securities of that series.

SECTION 502. Acceleration of Maturity; Rescission and Annulment.

     If an Event of Default (other than an Event of Default with respect to the Company specified
in Section 501(8) or 501(9)) with respect to Securities of any series at the time Outstanding
occurs and is continuing, then in every such case the Trustee or the Holders of not less than 25%
in principal amount of the Outstanding Securities of that series may declare the principal amount
of all the Securities of that series (or, if any Securities of that series are Original Issue
Discount Securities, such portion of the principal amount of such Securities as may be specified by
the terms thereof) to be due and payable immediately, by a notice in writing to the

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Company (and to
the Trustee if given by Holders), and upon any such declaration such principal amount (or specified
amount), together with any accrued and unpaid interest thereon, shall become immediately due and
payable. If an Event of Default with respect to the Company specified in Section 501(8) or 501 (9)
with respect to Securities of any series at the time Outstanding occurs, the principal amount of
all the Securities of that series (or, if any Securities of that series are Original Issue Discount
Securities, such portion of the principal amount of such Securities as may be specified by the
terms thereof), together with any accrued and unpaid interest thereon, shall automatically, and
without any declaration or other action on the part of the Trustee or any Holder, become
immediately due and payable.

     At any time after such a declaration of acceleration with respect to Securities of any series
has been made and before a judgment or decree for payment of the money due has been obtained by the
Trustee as hereinafter in this Article provided, the Holders of a majority in principal amount of
the Outstanding Securities of that series, by written notice to the Company and the Trustee, may
rescind and annul such declaration and its consequences if

     (1) the Company or, if applicable, any Subsidiary Guarantor has paid or deposited with
the Trustee a sum sufficient to pay

     (A) all overdue interest on all Securities of that series,

     (B) the principal of (and premium, if any, on) any Securities of that series
which have become due otherwise than by such declaration of acceleration and any
interest thereon at the rate or rates prescribed therefor in such Securities,

     (C) to the extent that payment of such interest is lawful, interest upon
overdue interest at the rate or rates prescribed therefor in such Securities, and

     (D) all sums paid or advanced by the Trustee hereunder and the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel; and

     (2) all Events of Default with respect to Securities of that series, other than the
non-payment of the principal of Securities of that series which has become due solely by
such declaration of acceleration, have been cured or waived as provided in Section 513.

     No such rescission shall affect any subsequent default or impair any right consequent thereon.

SECTION 503. Collection of Indebtedness and Suits for Enforcement by Trustee.

     The Company covenants that if

     (1) default is made in the payment of any interest on any Security when such interest
becomes due and payable and such default continues for a period of 30 days, or

     (2) default is made in the payment of the principal of (or premium, if any, on) any
Security at the Maturity thereof,

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the Company will, upon demand of the Trustee, pay to it, for the benefit of the Holders of such
Securities, the whole amount then due and payable on such Securities for principal and any premium
and interest and, to the extent that payment of such interest shall be legally enforceable,
interest on any overdue principal and premium and on any overdue interest, at the rate or rates
prescribed therefor in such Securities, and, in addition thereto, such further amount as shall be
sufficient to cover the costs and expenses of collection, including the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel.

     If an Event of Default with respect to Securities of any series occurs and is continuing, the
Trustee may in its discretion proceed to protect and enforce its rights and the rights of the
Holders of Securities of such series by such appropriate judicial proceedings as the Trustee shall
deem most effectual to protect and enforce any such rights, whether for the specific enforcement of
any covenant or agreement in this Indenture or in aid of the exercise of any power granted herein,
or to enforce any other proper remedy.

SECTION 504. Trustee May File Proofs of Claim.

     In case of any judicial proceeding relative to the Company, any Subsidiary Guarantor or any
other obligor upon the Securities, or the property or creditors of the Company, any Subsidiary
Guarantor or any other obligor upon the Securities, the Trustee shall be entitled and empowered, by
intervention in such proceeding or otherwise, to take any and all actions authorized under the
Trust Indenture Act in order to have claims of the Holders and the Trustee allowed in any such
proceeding. In particular, the Trustee shall be authorized to collect and receive any moneys or
other property payable or deliverable on any such claims and to distribute the same; and any
custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any
such judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee
and, in the event that the Trustee shall consent to the making of such payments directly to the
Holders, to pay to the Trustee any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the
Trustee under Section 607.

     No provision of this Indenture shall be deemed to authorize the Trustee to authorize or
consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement,
adjustment or composition affecting the Securities or any Subsidiary Guarantee or the rights of any
Holder thereof or to authorize the Trustee to vote in respect of the claim of any Holder in any
such proceeding; provided, however, that the Trustee may, on behalf of the Holders, vote for the
election of a trustee in bankruptcy or similar official and be a member of a creditors’ or other
similar committee.

SECTION 505. Trustee May Enforce Claims Without Possession of Securities.

     All rights of action and claims under this Indenture or the Securities or any Subsidiary
Guarantee may be prosecuted and enforced by the Trustee without the possession of any of the
Securities or the production thereof in any proceeding relating thereto, and any such proceeding
instituted by the Trustee shall be brought in its own name as trustee of an express trust, and any
recovery of judgment shall, after provision for the payment of the reasonable compensation,

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expenses, disbursements and advances of the Trustee, its agents and counsel, be for the ratable
benefit of the Holders of the Securities in respect of which such judgment has been recovered.

SECTION 506. Application of Money Collected.

     Any money collected by the Trustee pursuant to this Article shall be applied in the following
order, at the date or dates fixed by the Trustee and, in case of the distribution of such money on
account of principal or any premium or interest, upon presentation of the Securities and the
notation thereon of the payment if only partially paid and upon surrender thereof if fully paid:

FIRST: To the payment of all amounts due the Trustee under Section
607;

SECOND: Subject to Article Twelve and Article Fourteen, to the
payment of the amounts then due and unpaid for principal of and any
premium and interest on the Securities in respect of which or for
the benefit of which such money has been collected, ratably, without
preference or priority of any kind, according to the amounts due and
payable on such Securities for principal and any premium and
interest, respectively; and

THIRD: The balance, if any, to the Company or to such other Person
as a court of competent jurisdiction shall direct.

SECTION 507. Limitation on Suits.

     No Holder of any Security of any series shall have any right to institute any proceeding,
judicial or otherwise, with respect to this Indenture, or for the appointment of a receiver or
trustee, or for any other remedy hereunder, unless

     (1) such Holder has previously given written notice to the Trustee of a continuing
Event of Default with respect to the Securities of that series;

     (2) the Holders of not less than 25% in principal amount of the Outstanding Securities
of that series shall have made written request to the Trustee to institute proceedings in
respect of such Event of Default in its own name as Trustee hereunder;

     (3) such Holder or Holders have offered to the Trustee reasonable security or indemnity
against the costs, expenses and liabilities to be incurred in compliance with such request;

     (4) the Trustee for 60 days after its receipt of such notice, request and offer of
security or indemnity has failed to institute any such proceeding; and

     (5) no direction inconsistent with such written request has been given to the Trustee
during such 60-day period by the Holders of a majority in principal amount of the
Outstanding Securities of that series;

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it being understood and intended that no one or more of such Holders shall have any right in any
manner whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb
or prejudice the rights of any other of such Holders, or to obtain or to seek to obtain priority or
preference over any other of such Holders or to enforce any right under this Indenture, except in
the manner herein provided and for the equal and ratable benefit of all of such Holders.

SECTION 508. Unconditional Right of Holders to Receive Principal, Premium and Interest.

     Notwithstanding any other provision in this Indenture, the Holder of any Security shall have
the right, which is absolute and unconditional, to receive payment of the principal of and any
premium and (subject to Section 307) interest on such Security on the respective Stated Maturities
expressed in such Security (or, in the case of redemption or offer by the Company to purchase the
Securities pursuant to the terms of this Indenture, on the Redemption Date or purchase date, as
applicable) and, if applicable, to convert such Security in accordance with its terms, and to
institute suit for the enforcement of any such right, and such rights shall not be impaired without
the consent of such Holder.

SECTION 509. Restoration of Rights and Remedies.

     If the Trustee or any Holder has instituted any proceeding to enforce any right or remedy
under this Indenture and such proceeding has been discontinued or abandoned for any reason, or has
been determined adversely to the Trustee or to such Holder, then and in every such case, subject to
any determination in such proceeding, the Company, the Subsidiary Guarantors, the Trustee and the
Holders shall be restored severally and respectively to their former positions hereunder and
thereafter all rights and remedies of the Trustee and the Holders shall continue as though no such
proceeding had been instituted.

SECTION 510. Rights and Remedies Cumulative.

     Except as otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Securities in the last paragraph of Section 306, no right or remedy
herein conferred upon or reserved to the Trustee or to the Holders is intended to be exclusive of
any other right or remedy, and every right and remedy shall, to the extent permitted by law, be
cumulative and in addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any right or remedy
hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other
appropriate right or remedy.

SECTION 511. Delay or Omission Not Waiver.

     No delay or omission of the Trustee or of any Holder of any Securities to exercise any right
or remedy accruing upon any Event of Default shall impair any such right or remedy or constitute a
waiver of any such Event of Default or an acquiescence therein. Every right and remedy given by
this Article or by law to the Trustee or to the Holders may be exercised from time to time, and as
often as may be deemed expedient, by the Trustee or by the Holders, as the case may be.

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SECTION 512. Control by Holders.

     The Holders of a majority in principal amount of the Outstanding Securities of any series
shall have the right to direct the time, method and place of conducting any proceeding for any
remedy available to the Trustee, or exercising any trust or power conferred on the Trustee, with
respect to the Securities of such series, provided that

     (1) such direction shall not be in conflict with any rule of law or with this
Indenture, and

     (2) the Trustee may take any other action deemed proper by the Trustee which is not
inconsistent with such direction.

SECTION 513. Waiver of Past Defaults.

     The Holders of not less than a majority in principal amount of the Outstanding Securities of
any series may on behalf of the Holders of all the Securities of such series waive any past default
hereunder with respect to such series and its consequences, except a default

     (1) in the payment of the principal of or any premium or interest on any Security of
such series (including any Security which is required to have been purchased by the Company
pursuant to an offer to purchase by the Company made pursuant to the terms of this
Indenture), or

     (2) in respect of a covenant or provision hereof which under Article Nine cannot be
modified or amended without the consent of the Holder of each Outstanding Security of such
series.

     Upon any such waiver, such default shall cease to exist, and any Event of Default arising
therefrom shall be deemed to have been cured, for every purpose of this Indenture; but no such
waiver shall extend to any subsequent or other default or impair any right consequent thereon.

SECTION 514. Undertaking for Costs.

     In any suit for the enforcement of any right or remedy under this Indenture, or in any suit
against the Trustee for any action taken, suffered or omitted by it as Trustee, a court may require
any party litigant in such suit to file an undertaking to pay the costs of such suit, and may
assess costs against any such party litigant, in the manner and to the extent provided in the Trust
Indenture Act; provided, however, that neither this Section nor the Trust Indenture Act shall be
deemed to authorize any court to require such an undertaking or to make such an assessment in any
suit instituted by the Company or any Subsidiary Guarantor.

SECTION 515. Waiver of Usury, Stay or Extension Laws.

     Each of the Company and the Subsidiary Guarantors covenants (to the extent that it may
lawfully do so) that it will not at any time insist upon, or plead, or in any manner whatsoever
claim or take the benefit or advantage of, any usury, stay or extension law wherever enacted, now
or at any time hereafter in force, which may affect the covenants or the performance of this

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Indenture; and each of the Company and the Subsidiary Guarantors (to the extent that it may
lawfully do so) hereby expressly waives all benefit or advantage of any such law and covenants that
it will not hinder, delay or impede the execution of any power herein granted to the Trustee, but
will suffer and permit the execution of every such power as though no such law had been enacted.

ARTICLE SIX

THE TRUSTEE

SECTION 601. Certain Duties and Responsibilities.

     The duties and responsibilities of the Trustee shall be as expressly set forth in this
Indenture and as provided by the Trust Indenture Act. Notwithstanding the foregoing, no provision
of this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur any
financial liability in the performance of any of its duties hereunder, or in the exercise of any of
its rights or powers, if it shall have reasonable grounds for believing that repayment of such
funds or adequate indemnity against such risk or liability is not reasonably assured to it.
Whether or not therein expressly so provided, every provision of this Indenture relating to the
conduct or affecting the liability of or affording protection to the Trustee shall be subject to
the provisions of this Section.

SECTION 602. Notice of Defaults.

     If a default occurs hereunder with respect to Securities of any series, the Trustee shall give
the Holders of Securities of such series notice of such default as and to the extent provided by
the Trust Indenture Act; provided, however, that in the case of any default of the character
specified in Section 501(5) with respect to Securities of such series, no such notice to Holders
shall be given until at least 30 days after the occurrence thereof. For the purpose of this
Section, the term “default” means any event which is, or after notice or lapse of time or both
would become, an Event of Default with respect to Securities of such series.

SECTION 603. Certain Rights of Trustee.

     Subject to the provisions of Section 601:

     (1) the Trustee may rely and shall be protected in acting or refraining from acting
upon any resolution, certificate, statement, instrument, opinion, report, notice, request,
direction, consent, order, bond, debenture, note, other evidence of indebtedness or other
paper or document believed by it to be genuine and to have been signed or presented by the
proper party or parties;

     (2) any request or direction of the Company mentioned herein shall be sufficiently
evidenced by a Company Request or Company Order, and any resolution of the Board of
Directors shall be sufficiently evidenced by a Board Resolution;

     (3) whenever in the administration of this Indenture the Trustee shall deem it
desirable that a matter be proved or established prior to taking, suffering or omitting any

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action hereunder, the Trustee (unless other evidence be herein specifically prescribed) may,
in the absence of bad faith on its part, rely upon an Officers’ Certificate;

     (4) the Trustee may consult with counsel and the written advice of such counsel or any
Opinion of Counsel shall be full and complete authorization and protection in respect of any
action taken, suffered or omitted by it hereunder in good faith and in reliance thereon;

     (5) the Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by this Indenture at the request or direction of any of the Holders pursuant to
this Indenture, unless such Holders shall have offered to the Trustee reasonable security or
indemnity against the costs, expenses and liabilities which might be incurred by it in
compliance with such request or direction;

     (6) the Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or
other paper or document, but the Trustee, in its discretion, may make such further inquiry
or investigation into such facts or matters as it may see fit, and, if the Trustee shall
determine to make such further inquiry or investigation, it shall be entitled to examine the
books, records and premises of the Company, personally or by agent or attorney; and

     (7) the Trustee may execute any of the trusts or powers hereunder or perform any duties
hereunder either directly or by or through agents or attorneys and the Trustee shall not be
responsible for any misconduct or negligence on the part of any agent or attorney appointed
with due care by it hereunder.

SECTION 604. Not Responsible for Recitals or Issuance of Securities.

     The
recitals contained herein and in the Securities and the notations of Subsidiary Guarantees, except the
Trustee’s certificates of authentication, shall be taken as the statements of the Company or the
Subsidiary Guarantors, as the case may be, and neither the Trustee nor any Authenticating Agent
assumes any responsibility for their correctness. The Trustee makes no representations as to the
validity or sufficiency of this Indenture or of the Securities or the Subsidiary Guarantees. Neither the Trustee nor any Authenticating Agent shall be accountable for the
use or application by the Company of Securities or the proceeds thereof.

SECTION 605. May Hold Securities.

     The Trustee, any Authenticating Agent, any Paying Agent, any Security Registrar or any other
agent of the Company or any Subsidiary Guarantor, in its individual or any other capacity, may
become the owner or pledgee of Securities and, subject to Sections 608 and 613, may otherwise deal
with the Company and any Subsidiary Guarantor with the same rights it would have if it were not
Trustee, Authenticating Agent, Paying Agent, Security Registrar or such other agent.

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SECTION 606. Money Held in Trust.

     Money held by the Trustee in trust hereunder need not be segregated from other funds except to
the extent required by law. The Trustee shall be under no liability for interest on any money
received by it hereunder except as otherwise agreed with the Company or any Subsidiary Guarantor,
as the case may be.

SECTION 607. Compensation and Reimbursement.

     The Company and each Subsidiary Guarantor jointly and severally agree

     (1) to pay to the Trustee from time to time reasonable compensation for all services
rendered by it hereunder (which compensation shall not be limited by any provision of law in
regard to the compensation of a trustee of an express trust);

     (2) except as otherwise expressly provided herein, to reimburse the Trustee upon its
request for all reasonable expenses, disbursements and advances incurred or made by the
Trustee in accordance with any provision of this Indenture (including the reasonable
compensation and the expenses and disbursements of its agents and counsel), except any such
expense, disbursement or advance as may be attributable to its negligence or bad faith; and

     (3) to indemnify the Trustee for, and to hold it harmless against, any loss, liability
or expense incurred without negligence or bad faith on its part, arising out of or in
connection with the acceptance or administration of the trust or trusts hereunder, including
the costs and expenses of defending itself against any claim or liability in connection with
the exercise or performance of any of its powers or duties hereunder.

SECTION 608. Conflicting Interests.

     If the Trustee has or shall acquire a conflicting interest within the meaning of the Trust
Indenture Act, the Trustee shall either eliminate such interest or resign, to the extent and in the
manner provided by, and subject to the provisions of, the Trust Indenture Act and this Indenture.

     To the extent permitted by such Act, the Trustee shall not be deemed to have a conflicting
interest by virtue of being a trustee under this Indenture with respect to Securities of more than
one series.

SECTION 609. Corporate Trustee Required; Eligibility.

     There shall at all times be one (and only one) Trustee hereunder with respect to the
Securities of each series, which may be Trustee hereunder for Securities of one or more other
series. Each Trustee shall be a Person that is eligible pursuant to the Trust Indenture Act to act
as such, and has a combined capital and surplus of at least $50,000,000. If any such Person
publishes reports of condition at least annually, pursuant to law or to the requirements of its
supervising or examining authority, then for the purposes of this Section and to the extent
permitted by the Trust Indenture Act, the combined capital and surplus of such Person shall be
deemed to be its combined capital and surplus as set forth in its most recent report of condition

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so published. If at any time the
Trustee with respect to the Securities of any series shall cease to be eligible in accordance
with the provisions of this Section, it shall resign immediately in the manner and with the effect
hereinafter specified in this Article.

SECTION 610. Resignation and Removal; Appointment of Successor.

     No resignation or removal of the Trustee and no appointment of a successor Trustee pursuant to
this Article shall become effective until the acceptance of appointment by the successor Trustee in
accordance with the applicable requirements of Section 611.

     The Trustee may resign at any time with respect to the Securities of one or more series by
giving written notice thereof to the Company. If the instrument of acceptance by a successor
Trustee required by Section 611 shall not have been delivered to the Trustee within 30 days after
the giving of such notice of resignation, the resigning Trustee may petition any court of competent
jurisdiction for the appointment of a successor Trustee with respect to the Securities of such
series.

     The Trustee may be removed at any time with respect to the Securities of any series by Act of
the Holders of a majority in principal amount of the Outstanding Securities of such series,
delivered to the Trustee and to the Company.

     If at any time:

     (1) the Trustee shall fail to comply with Section 608 after written request therefor by
the Company or by any Holder who has been a bona fide Holder of a Security for at least six
months, or

     (2) the Trustee shall cease to be eligible under Section 609 and shall fail to resign
after written request therefor by the Company or by any such Holder, or

     (3) the Trustee shall become incapable of acting or shall be adjudged a bankrupt or
insolvent or a receiver of the Trustee or of its property shall be appointed or any public
officer shall take charge or control of the Trustee or of its property or affairs for the
purpose of rehabilitation, conservation or liquidation,

then, in any such case, (A) the Company by a Board Resolution may remove the Trustee with respect
to all Securities, or (B) subject to Section 514, any Holder who has been a bona fide Holder of a
Security for at least six months may, on behalf of himself and all others similarly situated,
petition any court of competent jurisdiction for the removal of the Trustee with respect to all
Securities and the appointment of a successor Trustee or Trustees.

     If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy shall
occur in the office of Trustee for any cause, with respect to the Securities of one or more series,
the Company, by a Board Resolution, shall promptly appoint a successor Trustee or Trustees with
respect to the Securities of that or those series (it being understood that any such successor
Trustee may be appointed with respect to the Securities of one or more or all of such series and
that at any time there shall be only one Trustee with respect to the Securities of any particular
series) and shall comply with the applicable requirements of Section 611. If, within

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one year
after such resignation, removal or incapability, or the occurrence of such vacancy, a successor
Trustee with respect to the
Securities of any series shall be appointed by Act of the Holders of a majority in principal
amount of the Outstanding Securities of such series delivered to the Company and the retiring
Trustee, the successor Trustee so appointed shall, forthwith upon its acceptance of such
appointment in accordance with the applicable requirements of Section 611, become the successor
Trustee with respect to the Securities of such series and to that extent supersede the successor
Trustee appointed by the Company. If no successor Trustee with respect to the Securities of any
series shall have been so appointed by the Company or the Holders and accepted appointment in the
manner required by Section 611, any Holder who has been a bona fide Holder of a Security of such
series for at least six months may, on behalf of himself and all others similarly situated,
petition any court of competent jurisdiction for the appointment of a successor Trustee with
respect to the Securities of such series.

     The Company shall give notice of each resignation and each removal of the Trustee with respect
to the Securities of any series and each appointment of a successor Trustee with respect to the
Securities of any series to all Holders of Securities of such series in the manner provided in
Section 106. Each notice shall include the name of the successor Trustee with respect to the
Securities of such series and the address of its Corporate Trust Office.

SECTION 611. Acceptance of Appointment by Successor.

     In case of the appointment hereunder of a successor Trustee with respect to all Securities,
every such successor Trustee so appointed shall execute, acknowledge and deliver to the Company,
the Subsidiary Guarantors and to the retiring Trustee an instrument accepting such appointment, and
thereupon the resignation or removal of the retiring Trustee shall become effective and such
successor Trustee, without any further act, deed or conveyance, shall become vested with all the
rights, powers, trusts and duties of the retiring Trustee; but, on the request of the Company or
the successor Trustee, such retiring Trustee shall, upon payment of its charges, execute and
deliver an instrument transferring to such successor Trustee all the rights, powers and trusts of
the retiring Trustee and shall duly assign, transfer and deliver to such successor Trustee all
property and money held by such retiring Trustee hereunder.

     In case of the appointment hereunder of a successor Trustee with respect to the Securities of
one or more (but not all) series, the Company, the Subsidiary Guarantors, the retiring Trustee and
each successor Trustee with respect to the Securities of one or more series shall execute and
deliver an indenture supplemental hereto wherein each successor Trustee shall accept such
appointment and which (1) shall contain such provisions as shall be necessary or desirable to
transfer and confirm to, and to vest in, each successor Trustee all the rights, powers, trusts and
duties of the retiring Trustee with respect to the Securities of that or those series to which the
appointment of such successor Trustee relates, (2) if the retiring Trustee is not retiring with
respect to all Securities, shall contain such provisions as shall be deemed necessary or desirable
to confirm that all the rights, powers, trusts and duties of the retiring Trustee with respect to
the Securities of that or those series as to which the retiring Trustee is not retiring shall
continue to be vested in the retiring Trustee, and (3) shall add to or change any of the provisions
of this Indenture as shall be necessary to provide for or facilitate the administration of the
trusts hereunder by more than one Trustee, it being understood that nothing herein or in such
supplemental indenture shall constitute such Trustees co-trustees of the same trust and that
each

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such Trustee shall be trustee of a trust or trusts hereunder separate and apart from any trust or
trusts hereunder administered by any other
such Trustee; and upon the execution and delivery of such supplemental indenture the
resignation or removal of the retiring Trustee shall become effective to the extent provided
therein and each such successor Trustee, without any further act, deed or conveyance, shall become
vested with all the rights, powers, trusts and duties of the retiring Trustee with respect to the
Securities of that or those series to which the appointment of such successor Trustee relates; but,
on request of the Company or any successor Trustee, such retiring Trustee shall duly assign,
transfer and deliver to such successor Trustee all property and money held by such retiring Trustee
hereunder with respect to the Securities of that or those series to which the appointment of such
successor Trustee relates.

     Upon request of any such successor Trustee, the Company and the Subsidiary Guarantors shall
execute any and all instruments for more fully and certainly vesting in and confirming to such
successor Trustee all such rights, powers and trusts referred to in the first or second preceding
paragraph, as the case may be.

     No successor Trustee shall accept its appointment unless at the time of such acceptance such
successor Trustee shall be qualified and eligible under this Article.

SECTION 612. Merger, Conversion, Consolidation or Succession to Business.

     Any Person into which the Trustee may be merged or converted or with which it may be
consolidated, or any Person resulting from any merger, conversion or consolidation to which the
Trustee shall be a party, or any Person succeeding to all or substantially all the corporate trust
business of the Trustee, shall be the successor of the Trustee hereunder, provided such Person
shall be otherwise qualified and eligible under this Article, without the execution or filing of
any paper or any further act on the part of any of the parties hereto. As soon as practicable, the
successor Trustee shall mail a notice of its succession to the Company and the Holders of the
Securities then Outstanding. In case any Securities shall have been authenticated, but not
delivered, by the Trustee then in office, any successor by merger, conversion or consolidation to
such authenticating Trustee may adopt such authentication and deliver the Securities so
authenticated with the same effect as if such successor Trustee had itself authenticated such
Securities.

SECTION 613. Preferential Collection of Claims Against Company and Subsidiary Guarantors.

     If and when the Trustee shall be or become a creditor of the Company, any Subsidiary Guarantor
or any other obligor upon the Securities, the Trustee shall be subject to the provisions of the
Trust Indenture Act regarding the collection of claims against the Company, such Subsidiary
Guarantor or any such other obligor.

SECTION 614. Appointment of Authenticating Agent.

     The Trustee may appoint an Authenticating Agent or Agents with respect to one or more series
of Securities which shall be authorized to act on behalf of the Trustee to authenticate Securities
of such series issued upon original issue and upon exchange, registration of transfer, conversion
or partial redemption thereof or pursuant to Section 306, and Securities so

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authenticated shall be
entitled to the benefits of this Indenture and shall be valid and obligatory for all purposes as if
authenticated by the Trustee hereunder. Wherever reference is made in this
Indenture to the authentication and delivery of Securities by the Trustee or the Trustee’s
certificate of authentication, such reference shall be deemed to include authentication and
delivery on behalf of the Trustee by an Authenticating Agent and a certificate of authentication
executed on behalf of the Trustee by an Authenticating Agent. Each Authenticating Agent shall be
acceptable to the Company and shall at all times be a Person organized and doing business under the
laws of the United States of America, any State thereof or the District of Columbia, authorized
under such laws to act as Authenticating Agent, having a combined capital and surplus of not less
than $50,000,000 and subject to supervision or examination by Federal or State authority. If such
Authenticating Agent publishes reports of condition at least annually, pursuant to law or to the
requirements of said supervising or examining authority, then for the purposes of this Section, the
combined capital and surplus of such Authenticating Agent shall be deemed to be its combined
capital and surplus as set forth in its most recent report of condition so published. If at any
time an Authenticating Agent shall cease to be eligible in accordance with the provisions of this
Section, such Authenticating Agent shall resign immediately in the manner and with the effect
specified in this Section.

     Any Person into which an Authenticating Agent may be merged or converted or with which it may
be consolidated, or any Person resulting from any merger, conversion or consolidation to which such
Authenticating Agent shall be a party, or any Person succeeding to the corporate agency or
corporate trust business of an Authenticating Agent, shall continue to be an Authenticating Agent,
provided such Person shall be otherwise eligible under this Section, without the execution or
filing of any paper or any further act on the part of the Trustee or the Authenticating Agent.

     An Authenticating Agent may resign at any time by giving written notice thereof to the Trustee
and to the Company. The Trustee may at any time terminate the agency of an Authenticating Agent by
giving written notice thereof to such Authenticating Agent and to the Company. Upon receiving such
a notice of resignation or upon such a termination, or in case at any time such Authenticating
Agent shall cease to be eligible in accordance with the provisions of this Section, the Trustee may
appoint a successor Authenticating Agent which shall be acceptable to the Company and shall give
notice of such appointment in the manner provided in Section 106 to all Holders of Securities of
the series with respect to which such Authenticating Agent will serve. Any successor
Authenticating Agent upon acceptance of its appointment hereunder shall become vested with all the
rights, powers and duties of its predecessor hereunder, with like effect as if originally named as
an Authenticating Agent. No successor Authenticating Agent shall be appointed unless eligible
under the provisions of this Section.

     The Trustee agrees to pay to each Authenticating Agent from time to time reasonable
compensation for its services under this Section, and the Trustee shall be entitled to be
reimbursed for such payments, subject to the provisions of Section 607.

     If an appointment with respect to one or more series is made pursuant to this Section, the
Securities of such series may have endorsed thereon, in addition to the Trustee’s certificate of
authentication, an alternative certificate of authentication in the following form:

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     This is one of the Securities of the series designated therein referred to in the
within-mentioned Indenture.

	 	 	 	 	 	 	 
	 	 	[TRUSTEE’S NAME],	 	 
	 	 	As Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

As Authenticating Agent
	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Authorized Officer	 	 

ARTICLE SEVEN

HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY

SECTION 701. Company to Furnish Trustee Names and Addresses of Holders.

     The Company will furnish or cause to be furnished to the Trustee with respect to the
Securities of each series:

     (1) not more than 10 days after each record date with respect to the payment of
interest, if any, a list, in such form as the Trustee may reasonably require, of the names
and addresses of the Holders of Securities of such series as of such record date, and

     (2) at such other times as the Trustee may request in writing, within 30 days after the
receipt by the Company of any such request, a list of similar form and content as of a date
not more than 15 days prior to the time such list is furnished;

excluding from any such list names and addresses received by the Trustee in its capacity as
Security Registrar.

SECTION 702. Preservation of Information; Communications to Holders.

     The Trustee shall preserve, in as current a form as is reasonably practicable, the names and
addresses of Holders contained in the most recent list furnished to the Trustee as provided in
Section 701 and the names and addresses of Holders received by the Trustee in its capacity as
Security Registrar. The Trustee may destroy any list furnished to it as provided in Section 701
upon receipt of a new list so furnished.

     The rights of Holders to communicate with other Holders with respect to their rights under
this Indenture or under the Securities, and the corresponding rights and privileges of the Trustee,
shall be as provided by the Trust Indenture Act.

     Every Holder of Securities, by receiving and holding the same, agrees with the Company and the
Trustee that neither the Company, the Subsidiary Guarantors nor the Trustee nor any agent of any of
them shall be held accountable by reason of any disclosure of information as to names and addresses
of Holders made pursuant to the Trust Indenture Act.

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SECTION 703. Reports by Trustee.

     The Trustee shall transmit to Holders such reports concerning the Trustee and its actions
under this Indenture as may be required pursuant to the Trust Indenture Act at the times and in the
manner provided pursuant thereto.

     A copy of each such report shall, at the time of such transmission to Holders, be filed by the
Trustee with each stock exchange upon which any Securities are listed, with the Commission and with
the Company. The Company will notify the Trustee when any
Securities are listed on any stock exchange.

SECTION 704. Reports by Company and Subsidiary Guarantors.

     The Company and each of the Subsidiary Guarantors shall file with the Trustee and the
Commission, and transmit to Holders, such information, documents and other reports, and such
summaries thereof, as may be required pursuant to the Trust Indenture Act at the times and in the
manner provided pursuant to such Act; provided that any such information, documents or reports
required to be filed with the Commission pursuant to Section 13 or 15(d) of the Exchange Act shall
be filed with the Trustee within 15 days after the same is filed with the Commission.

ARTICLE EIGHT

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

SECTION 801. Company May Consolidate, Etc., Only on Certain Terms.

     The Company shall not, in a single transaction or a series of related transactions,
consolidate with or merge into any other Person or permit any other Person to consolidate with or
merge into the Company or, directly or indirectly, transfer, convey, sell, lease or otherwise
dispose of all or substantially all of its assets, unless:

     (1) in a transaction in which the Company does not survive or in which the Company
transfers, conveys, sells, leases or otherwise disposes of all or substantially all of its
assets, the successor entity (for purposes of this Article Eight, a “Successor Company”)
shall be a corporation, partnership, trust or other entity organized and validly existing
under the laws of the United States of America, any State thereof or the District of
Columbia, and shall expressly assume, by an indenture supplemental hereto, executed and
delivered to the Trustee, in form satisfactory to the Trustee, the due and punctual payment
of the principal of and any premium and interest on all the Securities and the performance
or observance of every covenant of this Indenture on the part of the Company to be performed
or observed;

     (2) immediately before and after giving pro forma effect to such transaction and
treating any indebtedness which becomes an obligation of the Company or any Subsidiary as a
result of such transaction as having been incurred by the Company or such Subsidiary at the
time of such transaction, no Event of Default, and no event which, after notice or lapse of
time or both, would become an Event of Default, shall have happened and be continuing;

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     (3) if, as a result of any such consolidation or merger or such transfer, conveyance,
sale, lease or other disposition, properties or assets of the Company would become subject
to a mortgage, pledge, lien, security interest or other encumbrance which would not be
permitted by this Indenture, the Company or the Successor Company, as the case may be, shall
take such steps as shall be necessary effectively to secure the Securities equally and
ratably with (or prior to) all indebtedness secured thereby;

     (4) any other conditions provided pursuant to Section 301 with respect to the
Securities of a series are satisfied; and

     (5) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that such consolidation, merger, transfer, conveyance, sale, lease or
other disposition and, if a supplemental indenture is required in connection with such
transaction, such supplemental indenture comply with this Article and that all conditions
precedent herein provided for relating to such transaction have been complied with.

SECTION 802. Subsidiary Guarantors May Consolidate, Etc., Only on Certain Terms.

     Except in a transaction resulting in the release of a Subsidiary Guarantor in accordance with
the terms of this Indenture, each Subsidiary Guarantor shall not, and the Company shall not permit
any Subsidiary Guarantor to, in a single or a series of related transactions, consolidate or merge
with or into any Person (other than the Company or another Subsidiary Guarantor) or permit any
Person (other than another Subsidiary Guarantor) to consolidate or merge with or into such
Subsidiary Guarantor or, directly or indirectly, transfer, convey, sell, lease or otherwise dispose
of all or substantially all of its assets unless, in each case:

     (1) in a transaction in which such Subsidiary Guarantor does not survive or in which
all or substantially all of the assets of such Subsidiary Guarantor are transferred,
conveyed, sold, leased or otherwise disposed of, the successor entity (the “Successor
Subsidiary Guarantor”) shall be a corporation, partnership, trust or other entity organized
and validly existing under the laws of the United States of America, any State thereof or
the District of Columbia, and shall expressly assume by an indenture supplemental hereto
executed and delivered to the Trustee, in form satisfactory to the Trustee, the due and
punctual payment of all obligations of such Subsidiary Guarantor under its Subsidiary
Guarantee and this Indenture and the performance of every covenant of this Indenture on the
part of such Subsidiary Guarantor to be performed or observed; and

     (2) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that such consolidation, merger, transfer, conveyance, sale, lease or
other disposition and, if a supplemental indenture is required in connection with such
transaction, such supplemental indenture, comply with this Article and that all conditions
precedent herein provided for relating to such transaction have been complied with.

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SECTION 803. Successor Substituted.

     (a) Upon any consolidation of the Company with, or merger of the Company into, any other
Person or any transfer, conveyance, sale, lease or other disposition of all or substantially all of
the assets of the Company in accordance with Section 801, the Successor Company shall succeed to,
and be substituted for, and may exercise every right and power of, the Company under this Indenture
with the same effect as if such successor Person had been named as the Company herein, and
thereafter, except in the case of a lease, the predecessor Person shall be relieved of all
obligations and covenants under this Indenture and the Securities.

     (b) Upon any consolidation of a Subsidiary Guarantor with, or merger of such Subsidiary
Guarantor into, any other Person or any transfer, conveyance, sale, lease or other disposition of
all or substantially all of the assets of such Subsidiary Guarantor in accordance with Section 802,
the Successor Subsidiary Guarantor shall succeed to, and be substituted for, and may exercise every
right and power of, such Subsidiary Guarantor under this Indenture with the same effect as if such
successor Person had been named as a Subsidiary Guarantor herein, and thereafter, except in the
case of a lease, the predecessor Person shall be relieved of all obligations and covenants under
this Indenture and its Subsidiary Guarantee.

ARTICLE NINE

SUPPLEMENTAL INDENTURES

SECTION 901. Supplemental Indentures Without Consent of Holders.

     Without the consent of any Holders, the Company, when authorized by a Board Resolution, the
Subsidiary Guarantors, when authorized by their respective Board Resolutions, and the Trustee, at
any time and from time to time, may enter into one or more indentures supplemental hereto, in form
satisfactory to the Trustee, for any of the following purposes:

     (1) to evidence the succession of another Person to the Company or any Subsidiary
Guarantor and the assumption by any such successor of the covenants of the Company or any
Subsidiary Guarantor herein and in the Securities or Subsidiary Guarantees, as the case may
be; or

     (2) to add to the covenants of
the Company or the Subsidiary Guarantors for the benefit of the Holders of all or any
series of Securities (and if such covenants are to be for the benefit of less than all
series of Securities, stating that such covenants are expressly being included solely for
the benefit of such series) or to surrender any right or power herein conferred upon the
Company or the Subsidiary Guarantors; or

     (3) to add any additional Events of Default for the benefit of the Holders of all or
any series of Securities (and if such additional Events of Default are to be for the benefit
of less than all series of Securities, stating that such additional Events of Default are
expressly being included solely for the benefit of such series); or

     (4) to add to or change any of the provisions of this Indenture to such extent as shall
be necessary to permit or facilitate the issuance of Securities in bearer form,

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registrable or not registrable as to principal, and with or without interest coupons,
or to permit or facilitate the issuance of Securities in uncertificated form; or

     (5) to add to, change or eliminate any of the provisions of this Indenture in respect
of one or more series of Securities, provided that any such addition, change or elimination
(A) shall neither (i) apply to any Security of any series created prior to the execution of
such supplemental indenture and entitled to the benefit of such provision nor (ii) modify
the rights of the Holder of any such Security with respect to such provision or (B) shall
become effective only when there is no such Security Outstanding; or

     (6) to secure the Securities; or

     (7) to establish the form or terms of Securities of any series as permitted by Sections
201 and 301; or

     (8) to evidence and provide for the acceptance of appointment hereunder by a successor
Trustee with respect to the Securities of one or more series and to add to or change any of
the provisions of this Indenture as shall be necessary to provide for or facilitate the
administration of the trusts hereunder by more than one Trustee, pursuant to the
requirements of Section 611; or

     (9) to cure any ambiguity, to correct or supplement any provision herein which may be
defective or inconsistent with any other provision herein; or

     (10) to make any other provisions with respect to matters or questions arising under
this Indenture, provided that such action pursuant to this clause (10) shall not adversely
affect the interests of the Holders of Securities of any series in any material respect; or

     (11) to add new Subsidiary Guarantors; or

     (12) to make any change to the provisions of Article Twelve or Fourteen that limits or
terminates the benefits applicable to any holder of Senior Debt.

SECTION 902. Supplemental Indentures With Consent of Holders.

     With the consent of the Holders of not less than a majority in principal amount of the
Outstanding Securities of each series affected by such supplemental indenture, by Act of said
Holders delivered to the Company, the Subsidiary Guarantors and the Trustee, the Company, when
authorized by a Board Resolution, the Subsidiary Guarantors, when authorized by their respective
Board Resolutions and the Trustee may enter into an indenture or indentures supplemental hereto for
the purpose of adding any provisions to or changing in any manner or eliminating any of the
provisions of this Indenture or of modifying in any manner the rights of the Holders of Securities
of such series under this Indenture; provided, however, that no such supplemental indenture shall,
without the consent of the Holder of each Outstanding Security affected thereby:

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     (1) change the Stated Maturity of the principal of, or any installment of principal of
or interest on, any Security, or reduce the principal amount thereof or the rate of interest
thereon or any premium payable upon the redemption thereof, or reduce the amount of the
principal of an Original Issue Discount Security or any other Security which would be due
and payable upon a declaration of acceleration of the Maturity thereof pursuant to Section
502, or change any Place of Payment where, or the coin or currency in which, any Security or
any premium or interest thereon is payable, or impair the right to institute suit for the
enforcement of (a) any such payment on or after the Stated Maturity thereof (or, in the case
of redemption, on or after the Redemption Date or in the case of an offer to purchase
Securities which has been made pursuant to a covenant contained in this Indenture, on or
after the applicable purchase date), or (b) any conversion right with respect to any
Security, or modify the provisions of this Indenture with respect to the conversion or
subordination of the Securities or the Subsidiary Guarantees, in a manner adverse to the
Holders, or release any Subsidiary Guarantee other than as provided in this Indenture; or

     (2) reduce the percentage in principal amount of the Outstanding Securities of any
series, the consent of whose Holders is required for any such supplemental indenture, or the
consent of whose Holders is required for any waiver (of compliance with certain provisions
of this Indenture or certain defaults hereunder and their consequences) provided for in this
Indenture; or

     (3) modify any of the provisions of this Section, Section 513 or Section 1009, except
to increase any such percentage or to provide that certain other provisions of this
Indenture cannot be modified or waived without the consent of the Holder of each Outstanding
Security affected thereby; provided, however, that this clause shall not be deemed to
require the consent of any Holder with respect to changes in the references to “the Trustee”
and concomitant changes in this Section and Section 1009, or the deletion of this proviso,
in accordance with the requirements of Sections 611 and 901(8); or

     (4) following the making of an offer to purchase Securities from any Holder which has
been made pursuant to a covenant contained in this Indenture, modify the provisions of this
Indenture with respect to such offer to purchase in a manner adverse to such Holder.

     A supplemental indenture which changes or eliminates any covenant or other provision of this
Indenture which has expressly been included solely for the benefit of one or more particular series
of Securities, or which modifies the rights of the Holders of Securities of such series with
respect to such covenant or other provision, shall be deemed not to affect the rights under this
Indenture of the Holders of Securities of any other series.

     It shall not be necessary for any Act of Holders under this Section to approve the particular
form of any proposed supplemental indenture, but it shall be sufficient if such Act shall approve
the substance thereof.

     After a supplemental indenture under this Section 902 requiring the consent of the Holders of
any series of Debt Securities is approved, the Company shall mail to Holders of that

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series of
Debt Securities a notice briefly describing any amendment or supplement hereto effected by
such supplemental indenture. The failure to give such notice to any such Holders, or any defect
therein, shall not impair or affect the validity of any amendment or supplement hereto effected by
such supplemental indenture with respect to other Holders.

SECTION 903. Execution of Supplemental Indentures.

     In executing, or accepting the additional trusts created by, any supplemental indenture
permitted by this Article or the modifications thereby of the trusts created by this Indenture, the
Trustee shall be entitled to receive, and (subject to Section 601) shall be fully protected in
relying upon, an Opinion of Counsel stating that the execution of such supplemental indenture is
authorized or permitted by this Indenture. The Trustee may, but shall not be obligated to, enter
into any such supplemental indenture which affects the Trustee’s own rights, duties or immunities
under this Indenture or otherwise.

SECTION 904. Effect of Supplemental Indentures.

     Upon the execution of any supplemental indenture under this Article, this Indenture shall be
modified in accordance therewith, and such supplemental indenture shall form a part of this
Indenture for all purposes; and every Holder of Securities theretofore or thereafter authenticated
and delivered hereunder shall be bound thereby.

SECTION 905. Conformity with Trust Indenture Act.

     Every supplemental indenture executed pursuant to this Article shall conform to the
requirements of the Trust Indenture Act.

SECTION 906. Reference in Securities to Supplemental Indentures.

     Securities of any series authenticated and delivered after the execution of any supplemental
indenture pursuant to this Article may, and shall if required by the Trustee, bear a notation in
form approved by the Trustee as to any matter provided for in such supplemental indenture. If the
Company shall so determine, new Securities of any series so modified as to conform, in the opinion
of the Trustee and the Company, to any such supplemental indenture may be prepared and executed by
the Company, if applicable the notations of Subsidiary Guarantees may be endorsed thereon and such new
Securities may be authenticated and delivered by the Trustee in exchange for Outstanding Securities
of such series.

ARTICLE TEN

COVENANTS

SECTION 1001. Payment of Principal, Premium and Interest.

     The Company covenants and agrees for the benefit of each series of Securities that it will
duly and punctually pay the principal of and any premium and interest on the Securities of that
series in accordance with the terms of the Securities and this Indenture. Principal, premium, if
any, and interest shall be considered paid on the date due if the Paying Agent, if other than the
Company or a Subsidiary thereof, holds as of 11:00 A.M., New York City time, on the due date

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money deposited with it in immediately available funds and designated for and
sufficient to pay all principal, premium, if any, and interest then due, and such Paying Agent is
not prohibited from paying such money to the Holders entitled thereto on such date pursuant to the
terms of Article Twelve or Fourteen of this Indenture.

SECTION 1002. Maintenance of Office or Agency.

     The Company will maintain in each Place of Payment for any series of Securities an office or
agency where Securities of that series may be presented or surrendered for payment or, if
applicable, for conversion, where Securities of that series may be surrendered for registration of
transfer or exchange and where notices and demands to or upon the Company or any Subsidiary
Guarantor in respect of the Securities of that series or any Subsidiary Guarantee and this
Indenture may be served. The Company will give prompt written notice to the Trustee of the
location, and any change in the location, of such office or agency. If at any time the Company
shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with
the address thereof, such presentations, surrenders, notices and demands may be made or served at
the Corporate Trust Office of the Trustee, and each of the Company and the Subsidiary Guarantors hereby
appoints the Trustee as its agent to receive all such presentations, surrenders, notices and demands.

     The Company may also from time to time designate one or more other offices or agencies where
the Securities of one or more series may be presented or surrendered for any or all such purposes
and may from time to time rescind such designations; provided, however, that no such designation or
rescission shall in any manner relieve the Company of its obligation to maintain an office or
agency in each Place of Payment for Securities of any series for such purposes. The Company will
give prompt written notice to the Trustee of any such designation or rescission and of any change
in the location of any such other office or agency.

SECTION 1003. Money for Securities Payments to Be Held in Trust.

     If the Company or any Subsidiary Guarantor shall at any time act as its own Paying Agent with
respect to any series of Securities, it will, on or before each due date of the principal of or any
premium or interest on any of the Securities of that series, segregate and hold in trust for the
benefit of the Persons entitled thereto a sum sufficient to pay the principal and any premium and
interest so becoming due until such sums shall be paid to such Persons or otherwise disposed of as
herein provided and will promptly notify the Trustee of its action or failure so to act.

     Whenever the Company shall have one or more Paying Agents for any series of Securities, it
will, prior to 11:00 A.M., New York City time, on each due date of the principal of or any premium
or interest on any Securities of that series, deposit with a Paying Agent a sum sufficient to pay
such amount, such sum to be held as provided by the Trust Indenture Act, and (unless such Paying
Agent is the Trustee) the Company will promptly notify the Trustee of its action or failure so to
act.

     The Company will cause each Paying Agent for any series of Securities other than the Trustee
to execute and deliver to the Trustee an instrument in which such Paying Agent shall

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agree with the
Trustee, subject to the provisions of this Section, that such Paying Agent will (1) comply with the
provisions of the Trust Indenture Act applicable to it as a Paying Agent and (2) during the
continuance of any default by the Company, the Subsidiary Guarantors, if applicable, or any
other obligor upon the Securities of that series in the making of any payment in respect of the
Securities of that series, upon the written request of the Trustee, forthwith pay to the Trustee
all sums held in trust by such Paying Agent for payment in respect of the Securities of that
series.

     The Company may at any time, for the purpose of obtaining the satisfaction and discharge of
this Indenture or for any other purpose, pay, or by Company Order direct any Paying Agent to pay,
to the Trustee all sums held in trust by the Company or such Paying Agent, such sums to be held by
the Trustee upon the same trusts as those upon which such sums were held by the Company or such
Paying Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying Agent shall be
released from all further liability with respect to such money.

     Any money deposited with the Trustee or any Paying Agent, or then held by the Company, in
trust for the payment of the principal of or any premium or interest on any Security of any series
and remaining unclaimed for two years after such principal, premium or interest has become due and
payable shall be paid to the Company on Company Request, or (if then held by the Company) shall be
discharged from such trust; and the Holder of such Security shall thereafter, as an unsecured
general creditor, look only to the Company for payment thereof, and all liability of the Trustee or
such Paying Agent with respect to such trust money, and all liability of the Company as trustee
thereof, shall thereupon cease; provided, however, that the Trustee or such Paying Agent, before
being required to make any such repayment, may at the expense of the Company cause to be published
once, in a newspaper published in the English language, customarily published on each Business Day
and of general circulation in The City of New York, New York, notice that such money remains
unclaimed and that, after a date specified therein, which shall not be less than 30 days from the
date of such publication, any unclaimed balance of such money then remaining will be repaid to the
Company.

SECTION 1004. Statement by Officers as to Default.

     (a) The Company and the Subsidiary Guarantors will deliver to the Trustee, within 90 days
after the end of each fiscal year of the Company ending after the date hereof, an Officers’
Certificate, stating whether or not to the best knowledge of the signers thereof (i) the Company or
any Subsidiary Guarantor, as the case may be, is in default in the performance and observance of
any of the terms, provisions and conditions of this Indenture (without regard to any period of
grace or requirement of notice provided hereunder) and, if the Company or any Subsidiary Guarantor
shall be in default, specifying all such defaults and the nature and status thereof of which they
may have knowledge and (ii) any event has occurred and remains in existence prohibiting any
payments on any series of Securities then Outstanding and, if any such event exists, a description
of such event and what action the Company is taking or proposes to take with respect thereto.

     (b) The
Company shall, so long as any series of Securities is Outstanding, deliver to the Trustee, as soon as
possible and in any event within five days after the Company becomes aware of the occurrence of an Event of Default or

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an event which,
with notice or the lapse of time or both, would constitute an Event of Default, an Officers’
Certificate setting forth the details of such Event of Default or default, and the action which the
Company proposes to take with respect thereto.

SECTION 1005. Existence.

     Subject to Article Eight, the Company will do or cause to be done all things necessary to
preserve and keep in full force and effect the existence, rights (charter and statutory) and
franchises of the Company; provided, however, that the Company shall not be required to preserve
any such right or franchise if it shall determine that the preservation thereof is no longer
desirable in the conduct of the business of the Company and that the loss thereof is not
disadvantageous in any material respect to the Holders.

SECTION 1006. Maintenance of Properties.

     The Company will cause all properties used or useful in the conduct of its business or the
business of any Subsidiary to be maintained and kept in good condition, repair and working order
(reasonable wear and tear excepted) and supplied with all necessary equipment and will cause to be
made all necessary repairs, renewals, replacements, betterments and improvements thereof, all as in
the judgment of the Company may be necessary so that the business carried on in connection
therewith may be properly and advantageously conducted at all times; provided, however, that
nothing in this Section shall prevent the Company from discontinuing the operation or maintenance
of any of such properties if such discontinuance is, in the judgment of the Company, desirable in
the conduct of its business or the business of any Subsidiary and not disadvantageous in any
material respect to the Holders.

SECTION 1007. Payment of Taxes and Other Claims.

     The Company will pay or discharge or cause to be paid or discharged, before the same shall
become delinquent, (1) all taxes, assessments and governmental charges levied or imposed upon the
Company or any Subsidiary or upon the income, profits or property of the Company or any Subsidiary,
and (2) all lawful claims for labor, materials and supplies which, if unpaid, might by law become a
lien upon the property of the Company or any Subsidiary; provided, however, that the Company shall
not be required to pay or discharge or cause to be paid or discharged any such tax, assessment,
charge or claim whose amount, applicability or validity is being contested in good faith by
appropriate proceedings.

SECTION 1008. Maintenance of Insurance.

     The Company shall, and shall cause its Subsidiaries to, keep at all times all of their
properties which are of an insurable nature insured against loss or damage with insurers believed
by the Company to be responsible to the extent that property of similar character is usually so
insured by corporations similarly situated and owning like properties in accordance with good
business practice.

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SECTION 1009. Waiver of Certain Covenants.

     Except as otherwise specified as contemplated by
Section 301 for Securities of such series, the Company and the Subsidiary Guarantors may, with respect to the Securities of any series, omit in any particular instance to
comply with any term, provision or condition set forth in any of Sections 1005 through 1008 or in
any covenant provided pursuant to Section 301(22), 901(2) or 901(7) for the benefit of the Holders
of such series if before the time for such compliance the Holders of at least a majority in
principal amount of the Outstanding Securities of such series shall, by Act of such Holders, either
waive such compliance in such instance or generally waive compliance with such term, provision or
condition, but no such waiver shall extend to or affect such term, provision or condition except to
the extent so expressly waived, and, until such waiver shall become effective, the obligations of
the Company and the duties of the Trustee in respect of any such term, provision or condition shall
remain in full force and effect.

ARTICLE ELEVEN

REDEMPTION OF SECURITIES

SECTION 1101. Applicability of Article.

     Securities of any series which are redeemable before their Stated Maturity shall be redeemable
in accordance with their terms and (except as otherwise specified as contemplated by Section 301
for such Securities) in accordance with this Article.

SECTION 1102. Election to Redeem; Notice to Trustee.

     The election of the Company to redeem any Securities shall be evidenced by a Board Resolution
or in another manner specified as contemplated by Section 301 for such Securities. In case of any
redemption at the election of the Company of less than all the Securities of any series (including
any such redemption affecting only a single Security), the Company shall, at least five Business
Days prior to giving notice of such redemption (unless a shorter notice shall be satisfactory to
the Trustee), notify the Trustee of such Redemption Date, of the principal amount of Securities of
such series to be redeemed and, if applicable, of the tenor of the Securities to be redeemed. In
the case of any redemption of Securities prior to the expiration of any restriction on such
redemption provided in the terms of such Securities or elsewhere in this Indenture, the Company
shall furnish the Trustee with an Officers’ Certificate evidencing compliance with such
restriction.

SECTION 1103. Selection by Trustee of Securities to Be Redeemed.

     If less than all the Securities of any series are to be redeemed (unless all the Securities of
such series and of a specified tenor are to be redeemed or unless such redemption affects only a
single Security), the particular Securities to be redeemed shall be selected by the Trustee, from
the Outstanding Securities of such series not previously called for redemption, (i) in compliance
with the requirements of the principal national securities exchange on which such Securities are
listed, if such Securities are listed on any national securities exchange, and (ii) if such
Securities are not so listed, on a pro rata basis, by lot or by such other method as the Trustee
shall deem fair and appropriate and which may provide for the selection for redemption of a portion
of the principal amount of any Security of such series, provided that the unredeemed portion of the

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principal amount of any Security shall be in an authorized denomination (which shall not be less
than the minimum authorized denomination) for such Security. If less than all the Securities of
such series and of a specified tenor are to be redeemed (unless such redemption affects only a
single Security), the particular Securities to be redeemed shall be selected by the Trustee, from
the Outstanding Securities of such series and specified tenor not previously called for redemption
in accordance with the preceding sentence.

     The Trustee shall promptly notify the Company in writing of the Securities selected for
redemption as aforesaid and, in case of any Securities selected for partial redemption as
aforesaid, the principal amount thereof to be redeemed.

     The provisions of the two preceding paragraphs shall not apply with respect to any redemption
affecting only a single Security, whether such Security is to be redeemed in whole or in part. In
the case of any such redemption in part, the unredeemed portion of the principal amount of the
Security shall be in an authorized denomination (which shall not be less than the minimum
authorized denomination) for such Security.

     For all purposes of this Indenture, unless the context otherwise requires, all provisions
relating to the redemption of Securities shall relate, in the case of any Securities redeemed or to
be redeemed only in part, to the portion of the principal amount of such Securities which has been
or is to be redeemed. If any Security selected for partial redemption is surrendered for
conversion after such selection, the converted portion of such Security shall be deemed (so far as
may be) to be the portion selected for redemption. Upon any redemption of less than all the
Securities of a series, for purposes of selection for redemption the Company and the Trustee may
treat as Outstanding Securities surrendered for conversion during the period of 15 days next
preceding the mailing of a notice of redemption, and need not treat as Outstanding any Security
authenticated and delivered during such period in exchange for the unconverted portion of any
Security converted in part during such period.

SECTION 1104. Notice of Redemption.

     Notice of redemption shall be given by first-class mail, postage prepaid, mailed not less than
30 nor more than 60 days prior to the Redemption Date, to each Holder of Securities to be redeemed,
at his address appearing in the Security Register; provided, however, notice of redemption may be
given more than 60 days prior to the Redemption Date if the notice is issued in connection with a
satisfaction and discharge pursuant to Article Four. All notices of redemption shall state:

     (1) the Redemption Date,

     (2) the Redemption Price, if then determinable and otherwise the method of its
determination,

     (3) if less than all the Outstanding Securities of any series consisting of more than a
single Security are to be redeemed, the identification (and, in the case of partial
redemption of any such Securities, the principal amounts) of the particular Securities to be
redeemed and, if less than all the Outstanding Securities of any series consisting of a

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single Security are to be redeemed, the principal amount of the particular Security to be
redeemed,

     (4) that on the Redemption Date the Redemption Price will become due and payable upon
each such Security to be redeemed and, if applicable, that interest thereon will cease to
accrue on and after said date,

     (5) the place or places where each such Security is to be surrendered for payment of
the Redemption Price,

     (6) that the redemption is for a sinking fund, if such is the case, and

     (7) if applicable, the conversion price then in effect and the date on which the right
to convert such Securities will expire.

     Notice of redemption of Securities to be redeemed at the election of the Company shall be
given by the Company or, at the Company’s request, by the Trustee in the name and at the expense of
the Company and shall be irrevocable. If any Security called for redemption is converted pursuant
hereto, any money deposited with the Trustee or any Paying Agent or so segregated and held in trust
for the redemption of such Security shall be paid to the Company upon delivery of a Company Request
to the Trustee or such Paying Agent, or, if then held by the Company, shall be discharged from such
trust.

SECTION 1105. Deposit of Redemption Price.

     Prior to 11:00 A.M., New York City time, on any Redemption Date, the Company shall deposit
with the Trustee or with a Paying Agent (or, if the Company is acting as its own Paying Agent,
segregate and hold in trust as provided in Section 1003) an amount of money sufficient to pay the
Redemption Price of, and (except if the Redemption Date shall be an Interest Payment Date) accrued
interest on, all the Securities which are to be redeemed on that date.

SECTION 1106. Securities Payable on Redemption Date.

     Notice of redemption having been given as aforesaid, the Securities so to be redeemed shall,
on the Redemption Date, become due and payable at the Redemption Price therein specified, and from
and after such date (unless the Company shall default in the payment of the Redemption Price and
accrued interest) such Securities shall cease to bear interest. Upon surrender of any such
Security for redemption in accordance with said notice, such Security shall be paid by the Company
at the Redemption Price, together with accrued interest to the Redemption Date; provided, however,
that, unless otherwise specified as contemplated by Section 301, installments of interest whose
Stated Maturity is on or prior to the Redemption Date will be payable to the Holders of such
Securities, or one or more Predecessor Securities, registered as such at the close of business on
the relevant Record Dates according to their terms and the provisions of Section 307.

     If any Security called for redemption shall not be so paid upon surrender thereof for
redemption, the principal and any premium shall, until paid, bear interest from the Redemption Date
at the rate prescribed therefor in the Security.

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SECTION 1107. Securities Redeemed in Part.

     Any Security which is to be redeemed only in part shall be surrendered at a Place of Payment
therefor (with, if the Company or the Trustee so requires, due endorsement by, or a written
instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the
Holder thereof or his attorney duly authorized in writing), and the Company shall execute, if
applicable, the Subsidiary Guarantors shall execute the notations of Subsidiary Guarantees endorsed thereon,
and the Trustee shall authenticate and deliver to the Holder of such Security without service
charge, a new Security or Securities of the same series and of like tenor, of any authorized
denomination as requested by such Holder, in aggregate principal amount equal to and in exchange
for the unredeemed portion of the principal of the Security so surrendered.

ARTICLE TWELVE

SUBORDINATION OF SECURITIES

SECTION 1201. Applicability of Article.

     Unless otherwise provided with respect to the Securities of any series in or pursuant to the
Board Resolution or supplemental indenture establishing such series of Securities pursuant to
Section 301, the provisions of this Article shall be applicable to each series of Securities.

SECTION 1202. Securities Subordinate to Senior Debt.

     The Company covenants and agrees, and each Holder of a Security, by his acceptance thereof,
likewise covenants and agrees, that, to the extent and in the manner hereinafter set forth in this
Article (subject to the provisions of Article Four and Article Fifteen), the payment of the
principal of (and premium, if any) and interest on each and all of the Securities of such series is
hereby expressly made subordinate and subject in right of payment to the prior payment in full of
all Senior Debt of the Company.

     No provisions of this Article Twelve shall prevent the occurrence of any Event of Default.

SECTION 1203. Payment Over of Proceeds Upon Dissolution, Etc.

     In the event of (a) any insolvency or bankruptcy case or proceeding, or any receivership,
liquidation, reorganization or other similar case or proceeding in connection therewith, relative
to the Company or to its creditors, as such, or to its assets, or (b) any liquidation, dissolution
or other winding up of the Company, whether voluntary or involuntary and whether or not involving
insolvency or bankruptcy, or (c) any assignment for the benefit of creditors or any other
marshalling of assets and liabilities of the Company, then and in any such event specified in (a),
(b) or (c) above (each such event, if any, herein sometimes referred to as a “Proceeding”) the
holders of Senior Debt of the Company shall be entitled to receive payment in full of all amounts
due or to become due on or in respect of all Senior Debt of the Company, or provision shall be made
for such payment in cash or cash equivalents or otherwise in a manner satisfactory to the holders
of Senior Debt of the Company, before the Holders of the Securities are entitled to receive any
payment or distribution of any kind or character, whether in cash, property or securities
(including any payment or distribution which may be payable or deliverable by reason

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of the payment
of any other indebtedness of the Company subordinated to the payment of the Securities, such
payment or distribution being hereinafter referred to as a “Junior Subordinated Payment”), on
account of principal of (or premium, if any) or interest on the Securities or on account of any
purchase or other acquisition of Securities by the Company or any Subsidiary of the Company (all
such payments, distributions, purchases and acquisitions, other than the payment or distribution of
stock or securities of the Company referred to in the second succeeding paragraph, herein referred
to, individually and collectively, as a “Securities Payment”), and to that end the holders of
Senior Debt of the Company shall be entitled to receive, for application to the payment thereof,
any
Securities Payment which may be payable or deliverable in respect of the Securities in any
such Proceeding.

     In the event that, notwithstanding the foregoing provisions of this Section, the Trustee or
the Holder of any Security shall have received any Securities Payment before all Senior Debt of the
Company is paid in full or payment thereof provided for in cash or cash equivalents or otherwise in
a manner satisfactory to the holders of Senior Debt of the Company, and if such fact shall, at or
prior to the time of such Securities Payment, have been made known to the Trustee or, as the case
may be, such Holder, then and in such event such Securities Payment shall be paid over or delivered
forthwith to the trustee in bankruptcy, receiver, liquidating trustee, custodian, assignee, agent
or other Person making payment or distribution of assets of the Company for application to the
payment of all Senior Debt of the Company remaining unpaid, to the extent necessary to pay all
Senior Debt of the Company in full, after giving effect to any concurrent payment or distribution
to or for the holders of Senior Debt of the Company.

     For purposes of this Article only, the words “any payment or distribution of any kind or
character, whether in cash, property or securities” shall not be deemed to include a payment or
distribution of stock or securities of the Company provided for by a plan of reorganization or
readjustment authorized by an order or decree of a court of competent jurisdiction in a
reorganization proceeding under any applicable bankruptcy law or of any other corporation provided
for by such plan of reorganization or readjustment which stock or securities are subordinated in
right of payment to all then outstanding Senior Debt of the Company to substantially the same
extent as the Securities are so subordinated as provided in this Article. The consolidation of the
Company with, or the merger of the Company into, another Person or the liquidation or dissolution
of the Company following the conveyance or other disposition of all or substantially all of its
assets to another Person upon the terms and conditions set forth in Article Eight shall not be
deemed a Proceeding for the purposes of this Section if the Person formed by such consolidation or
into which the Company is merged or the Person which acquires by conveyance or other disposition
such assets, as the case may be, shall, as a part of such consolidation, merger, conveyance or
transfer, comply with the conditions set forth in Article Eight.

SECTION 1204. No Payment When Senior Debt of the Company in Default.

     In the event that any Senior Payment Default (as defined below) shall have occurred and be
continuing, then no Securities Payment shall be made unless and until such Senior Payment Default
shall have been cured or waived or shall have ceased to exist or all amounts then due and payable
in respect of Senior Debt of the Company shall have been paid in full, or provision shall have been
made for such payment in cash or cash equivalents or otherwise in a manner

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satisfactory to the
holders of Senior Debt of the Company; provided, however, that nothing in this Section shall
prevent the satisfaction of any sinking fund payment in accordance with Article Sixteen by
delivering and crediting pursuant to Section 1602 Securities which have been acquired (upon
redemption or otherwise) prior to such Senior Payment Default.

     “Senior Payment Default” means any default in the payment of principal of (or premium, if any)
or interest on any Senior Debt of the Company when due, whether at the Stated Maturity of any such
payment or by declaration of acceleration, call for redemption or otherwise.

     In the event that any Senior Nonmonetary Default (as defined below) shall have occurred and be
continuing, then, upon the receipt by the Company, the Subsidiary Guarantors and the Trustee of
written notice of such Senior Nonmonetary Default from the agent for the Designated Senior Debt
which is the subject of such Senior Nonmonetary Default, no Securities Payment shall be made during
the period (the “Payment Blockage Period”) commencing on the date of such receipt of such written
notice and ending on the earlier of (i) the date on which such Senior Nonmonetary Default shall
have been cured or waived or shall have ceased to exist or all Designated Senior Debt the subject
of such Senior Nonmonetary Default shall have been discharged; (ii) the 179th day after the date of
such receipt of such written notice; or (iii) the date on which the Payment Blockage Period shall
have been terminated by written notice to the Company, any Subsidiary Guarantor or the Trustee from
the agent for the Designated Senior Debt initiating the Payment Blockage Period; provided, however,
that nothing in this Section shall prevent the satisfaction of any sinking fund payment in
accordance with Article Sixteen by delivering and crediting pursuant to Section 1602 Securities
which have been acquired (upon redemption or otherwise) prior to the date of such receipt of such
written notice. No more than one Payment Blockage Period may be commenced with respect to the
Securities of a particular series during any 360-day period and there shall be a period of at least
181 consecutive days in each 360-day period when no Payment Blockage Period is in effect. For all
purposes of this paragraph, no Senior Nonmonetary Default that existed or was continuing on the
date of commencement of any Payment Blockage Period shall be, or be made, the basis for the
commencement of a subsequent Payment Blockage Period, whether or not within a period of 360
consecutive days, unless such Senior Nonmonetary Default shall have been cured for a period of not
less than 90 consecutive days.

     “Senior Nonmonetary Default” means the occurrence or existence and continuance of any event of
default with respect to any Designated Senior Debt, other than a Senior Payment Default, permitting
the holders of such Designated Senior Debt (or a trustee or agent on behalf of the holders thereof)
to declare such Designated Senior Debt due and payable prior to the date on which it would
otherwise become due and payable.

     In the event that, notwithstanding the foregoing, the Company shall make any Securities
Payment to the Trustee or any Holder prohibited by the foregoing provisions of this Section, and if
such fact shall, at or prior to the time of such Securities Payment, have been made known to the
Trustee or, as the case may be, such Holder, then and in such event such Securities Payment shall
be paid over and delivered forthwith to the Company.

     The provisions of this Section shall not apply to any Securities Payment with respect to which
Section 1203 would be applicable.

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SECTION 1205. Payment Permitted If No Default.

     Nothing contained in this Article or elsewhere in this Indenture or in any of the Securities
shall prevent (a) the Company, at any time except during the pendency of any Proceeding referred to
in Section 1203 or under the conditions described in Section 1204, from making Securities Payments,
or (b) the application by the Trustee of any money deposited with it hereunder to Securities
Payments or the retention of such Securities Payment by the Holders, if, at the time of
such application by the Trustee, it did not have knowledge that such Securities Payment would
have been prohibited by the provisions of this Article.

SECTION 1206. Subrogation to Rights of Holders of Senior Debt of the Company.

     Subject to the payment in full of all amounts due or to become due on or in respect of Senior
Debt of the Company, or the provision for such payment in cash or cash equivalents or otherwise in
a manner satisfactory to the holders of Senior Debt of the Company, the Holders of the Securities
shall be subrogated to the rights of the holders of such Senior Debt of the Company to receive
payments and distributions of cash, property and securities applicable to the Senior Debt of the
Company until the principal of (and premium, if any) and interest on the Securities shall be paid
in full. For purposes of such subrogation, no payments or distributions to the holders of the
Senior Debt of the Company of any cash, property or securities to which the Holders of the
Securities or the Trustee would be entitled except for the provisions of this Article, and no
payments over pursuant to the provisions of this Article to the holders of Senior Debt of the
Company by Holders of the Securities or the Trustee, shall, as among the Company, its creditors
other than holders of Senior Debt of the Company and the Holders of the Securities, be deemed to be
a payment or distribution by the Company to or on account of the Senior Debt of the Company.

SECTION 1207. Provisions Solely to Define Relative Rights.

     The provisions of this Article are and are intended solely for the purpose of defining the
relative rights of the Holders on the one hand and the holders of Senior Debt of the Company on the
other hand. Nothing contained in this Article or elsewhere in this Indenture or in the Securities
is intended to or shall (a) impair, as among the Company, its creditors other than holders of
Senior Debt of the Company and the Holders of the Securities, the obligation of the Company, which
is absolute and unconditional (and which, subject to the rights under this Article of the holders
of Senior Debt of the Company, is intended to rank equally with all other general obligations of
the Company), to pay to the Holders of the Securities the principal of (and premium, if any) and
interest on the Securities as and when the same shall become due and payable in accordance with
their terms; or (b) affect the relative rights against the Company of the Holders of the Securities
and creditors of the Company other than the holders of Senior Debt of the Company; or (c) prevent
the Trustee or the Holder of any Security from exercising all remedies otherwise permitted by
applicable law upon default under this Indenture, subject to the rights, if any, under this Article
of the holders of Senior Debt of the Company to receive cash, property and securities otherwise
payable or deliverable to the Trustee or such Holder.

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SECTION 1208. Trustee to Effectuate Subordination.

     Each Holder of a Security by his acceptance thereof authorizes and directs the Trustee on his
behalf to take such action as may be necessary or appropriate to effectuate the subordination
provided in this Article and appoints the Trustee his attorney-in-fact for any and all such
purposes.

SECTION 1209. No Waiver of Subordination Provisions.

     No right of any present or future holder of any Senior Debt of the Company to enforce
subordination as herein provided shall at any time in any way be prejudiced or impaired by any act
or failure to act on the part of the Company or by any act or failure to act, in good faith, by any
such
holder, or by any noncompliance by the Company with the terms, provisions and covenants of
this Indenture, regardless of any knowledge thereof any such holder may have or be otherwise
charged with.

     Without in any way limiting the generality of the foregoing paragraph, the holders of Senior
Debt of the Company may, at any time and from time to time, without the consent of or notice to the
Trustee or the Holders of the Securities, without incurring responsibility to the Holders of the
Securities and without impairing or releasing the subordination provided in this Article or the
obligations hereunder of the Holders of the Securities to the holders of Senior Debt of the
Company, do any one or more of the following: (i) change the manner, place or terms of payment or
extend the time of payment of, or renew or alter, Senior Debt of the Company, or otherwise amend or
supplement in any manner Senior Debt of the Company or any instrument evidencing the same or any
agreement under which Senior Debt of the Company is outstanding; (ii) sell, exchange, release or
otherwise deal with any property pledged, mortgaged or otherwise securing Senior Debt of the
Company; (iii) release any Person liable in any manner for the collection of Senior Debt of the
Company; and (iv) exercise or refrain from exercising any rights against the Company and any other
Person.

SECTION 1210. Notice to Trustee.

     The Company shall give prompt written notice to the Trustee of any fact known to the Company
which would prohibit the making of any payment to or by the Trustee in respect of the Securities.
Notwithstanding the provisions of this Article or any other provision of this Indenture, the
Trustee shall not be charged with knowledge of the existence of any facts which would prohibit the
making of any payment to or by the Trustee in respect of the Securities, unless and until the
Trustee shall have received written notice thereof from the Company or a holder of Senior Debt of
the Company or from any trustee therefor; and, prior to the receipt of any such written notice, the
Trustee, subject to the provisions of Section 601, shall be entitled in all respects to assume that
no such facts exist; provided, however, that if the Trustee shall not have received the notice
provided for in this Section at least three Business Days prior to the date upon which by the terms
hereof any money may become payable for any purpose (including, without limitation, the payment of
the principal of (and premium, if any) or interest on any Security), then, anything herein
contained to the contrary notwithstanding, the Trustee shall have full power and authority to
receive such money and to apply the same to the purpose for which

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such money was received and shall
not be affected by any notice to the contrary which may be received by it within three Business
Days prior to such date.

     Subject to the provisions of Section 601, the Trustee shall be entitled to rely on the
delivery to it of a written notice by a Person representing himself to be a holder of Senior Debt
of the Company (or a trustee therefor) to establish that such notice has been given by a holder of
Senior Debt of the Company (or a trustee therefor). In the event that the Trustee determines in
good faith that further evidence is required with respect to the right of any Person as a holder of
Senior Debt of the Company to participate in any payment or distribution pursuant to this Article,
the Trustee may request such Person to furnish evidence to the reasonable satisfaction of the
Trustee as to the amount of Senior Debt of the Company held by such Person, the extent to which
such Person is entitled to participate in such payment or distribution and any other facts
pertinent to the rights of such Person under this Article, and if such evidence is not furnished,
the Trustee may defer any
payment to such Person pending judicial determination as to the right of such Person to
receive such payment.

SECTION 1211. Reliance on Judicial Order or Certificate of Liquidating Agent.

     Upon any payment or distribution of assets of the Company referred to in this Article, the
Trustee, subject to the provisions of Section 601, and the Holders of the Securities shall be
entitled to rely upon any order or decree entered by any court of competent jurisdiction in which
such Proceeding is pending, or a certificate of the trustee in bankruptcy, receiver, liquidating
trustee, custodian, assignee for the benefit of creditors, agent or other Person making such
payment or distribution, delivered to the Trustee or to the Holders of Securities, for the purpose
of ascertaining the Persons entitled to participate in such payment or distribution, the holders of
the Senior Debt of the Company and other indebtedness of the Company, the amount thereof or payable
thereon, the amount or amounts paid or distributed thereon and all other facts pertinent thereto or
to this Article.

SECTION 1212. Trustee Not Fiduciary for Holders of Senior Debt of the Company.

     The Trustee shall not be deemed to owe any fiduciary duty to the holders of Senior Debt of the
Company and shall not be liable to any such holders if it shall in good faith mistakenly pay over
or distribute to Holders of Securities or to the Company, a Subsidiary Guarantor or to any other
Person cash, property or securities to which any holders of Senior Debt of the Company shall be
entitled by virtue of this Article or otherwise.

			
	SECTION 1213.	 	Rights of Trustee as Holder of Senior Debt of the Company; Preservation of
Trustee’s Rights.

     The Trustee in its individual capacity shall be entitled to all the rights set forth in this
Article with respect to any Senior Debt of the Company which may at any time be held by it, to the
same extent as any other holder of Senior Debt of the Company, and nothing in this Indenture shall
deprive the Trustee of any of its rights as such holder.

     Nothing in this Article shall apply to claims of, or payments to, the Trustee under or
pursuant to Section 607.

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SECTION 1214. Article Applicable to Paying Agents.

     In case at any time any Paying Agent other than the Trustee shall have been appointed by the
Company and be then acting hereunder, the term “Trustee” as used in this Article shall in such case
(unless the context otherwise requires) be construed as extending to and including such Paying
Agent within its meaning as fully for all intents and purposes as if such Paying Agent were named
in this Article in addition to or in place of the Trustee; provided, however, that Section 1213
shall not apply to the Company, any Subsidiary Guarantor or any Affiliate of the Company if it or
such Subsidiary Guarantor or Affiliate acts as Paying Agent.

SECTION 1215. Defeasance of this Article Twelve.

     The subordination of the Securities of a series provided by this Article Twelve is expressly
made subject to the provisions for Defeasance or Covenant Defeasance in Article Fifteen hereof and,
anything herein to the contrary notwithstanding, upon the effectiveness of any such Defeasance or
Covenant Defeasance, the Securities of such series then outstanding shall thereupon cease to be
subordinated pursuant to this Article Twelve.

ARTICLE THIRTEEN

SUBSIDIARY GUARANTEES

SECTION 1301. Applicability of Article.

     Unless the Company elects to issue any series of Securities without the benefit of the
Subsidiary Guarantees, which election shall be evidenced in or pursuant to the Board Resolution or
supplemental indenture establishing such series of Securities pursuant to Section 301, the
provisions of this Article shall be applicable to each series of Securities except as otherwise
specified in or pursuant to the Board Resolution or supplemental indenture establishing such series
pursuant to Section 301.

SECTION 1302. Subsidiary Guarantees.

     Subject to Section 1301, each Subsidiary Guarantor hereby, jointly and severally, fully and
unconditionally guarantees to each Holder of a Security authenticated and delivered by the Trustee,
the due and punctual payment of the principal of (and premium, if any) and interest on such
Security when and as the same shall become due and payable, whether at the Stated Maturity, by
acceleration, call for redemption, offer to purchase or otherwise, in accordance with the terms of
such Security and of this Indenture, and each Subsidiary Guarantor similarly guarantees to the
Trustee the payment of all amounts owing to the Trustee in accordance with the terms of this
Indenture. In case of the failure of the Company punctually to make any such payment, each
Subsidiary Guarantor hereby, jointly and severally, agrees to cause such payment to be made
punctually when and as the same shall become due and payable, whether at the Stated Maturity or by
acceleration, call for redemption, offer to purchase or otherwise, and as if such payment were made
by the Company.

     Each of the Subsidiary Guarantors hereby jointly and severally agrees that its obligations
hereunder shall be absolute, unconditional, irrespective of, and shall be unaffected by, the
validity, regularity or enforceability of such Security or this Indenture, the absence of any
action

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to enforce the same or any release, amendment, waiver or indulgence granted to the Company
or any other guarantor or any consent to departure from any requirement of any other guarantee of
all or any of the Securities of such series or any other circumstances which might otherwise
constitute a legal or equitable discharge or defense of a surety or guarantor; provided, however,
that, notwithstanding the foregoing, no such release, amendment, waiver or indulgence shall,
without the consent of such Subsidiary Guarantor, increase the principal amount of such Security,
or increase the interest rate thereon, or alter the Stated Maturity thereof. Each of the
Subsidiary Guarantors hereby waives the benefits of diligence, presentment, demand for payment, any
requirement that the Trustee or any of the Holders protect, secure, perfect or insure any security
interest in or other lien on any
property subject thereto or exhaust any right or take any action against the Company or any
other Person or any collateral, filing of claims with a court in the event of insolvency or
bankruptcy of the Company, any right to require a proceeding first against the Company, protest or
notice with respect to such Security or the indebtedness evidenced thereby and all demands
whatsoever, and covenants that this Subsidiary Guarantee will not be discharged in respect of such
Security except by complete performance of the obligations contained in such Security and in such
Subsidiary Guarantee. Each Subsidiary Guarantor agrees that if, after the occurrence and during
the continuance of an Event of Default, the Trustee or any of the Holders are prevented by
applicable law from exercising their respective rights to accelerate the maturity of the Securities
of a series, to collect interest on the Securities of a series, or to enforce or exercise any other
right or remedy with respect to the Securities of a series, such Subsidiary Guarantor agrees to pay
to the Trustee for the account of the Holders, upon demand therefor, the amount that would
otherwise have been due and payable had such rights and remedies been permitted to be exercised by
the Trustee or any of the Holders.

     The indebtedness of each Subsidiary Guarantor evidenced by the Subsidiary Guarantees is, to
the extent provided in this Indenture, subordinate and subject in right of payment to the prior
payment in full of all Senior Debt of each Subsidiary Guarantor, and the Subsidiary Guarantees are
issued subject to the provisions of this Indenture with respect thereto. Each Holder of such
Security, by accepting the same, will be deemed to have (a) agreed to and be bound by such
provisions, (b) authorized and directed the Trustee on his behalf to take such action as may be
necessary or appropriate to effectuate the subordination so provided and (c) appointed the Trustee
his attorney-in-fact for any and all such purposes.

     Each Subsidiary Guarantor shall be subrogated to all rights of the Holders of the Securities
upon which its Subsidiary Guarantee is endorsed against the Company in respect of any amounts paid
by such Subsidiary Guarantor on account of such Security pursuant to the provisions of its
Subsidiary Guarantee or this Indenture; provided, however, that no Subsidiary Guarantor shall be
entitled to enforce or to receive any payments arising out of, or based upon, such right of
subrogation until the principal of (and premium, if any) and interest on all Securities of the
relevant series issued hereunder shall have been paid in full.

     Each Subsidiary Guarantor that makes or is required to make any payment in respect of its
Subsidiary Guarantee shall be entitled to seek contribution from the other Subsidiary Guarantors to
the extent permitted by applicable law; provided, however, that no Subsidiary Guarantor shall be
entitled to enforce or receive any payments arising out of, or based upon, such

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right of
contribution until the principal of (and premium, if any) and interest on all Securities of the
relevant series issued hereunder shall have been paid in full.

     Each Subsidiary Guarantee shall remain in full force and effect and continue to be effective
should any petition be filed by or against the Company for liquidation or reorganization, should
the Company become insolvent or make an assignment for the benefit of creditors or should a
receiver or trustee be appointed for all or any part of the Company’s assets, and shall, to the
fullest extent permitted by law, continue to be effective or be reinstated, as the case may be, if
at any time payment and performance of the Securities of a series, is, pursuant to applicable law,
rescinded or reduced in amount, or must otherwise be restored or returned by any Holder of the
Securities, whether as a “voidable preference,” “fraudulent transfer,” or otherwise, all as though
such
payment or performance had not been made. In the event that any payment, or any part thereof,
is rescinded, reduced, restored or returned, the Securities shall, to the fullest extent permitted
by law, be reinstated and deemed reduced only by such amount paid and not so rescinded, reduced,
restored or returned.

SECTION 1303. Execution and Delivery of Notations of Subsidiary Guarantees.

     To further evidence
the Subsidiary Guarantee set forth in Section 1302, each of the Subsidiary Guarantors hereby agrees that a notation relating to such
Subsidiary Guarantee, substantially in the form set forth in Section 204, shall be endorsed on each Security entitled to the benefits of the
Subsidiary Guarantee authenticated and delivered by the Trustee and executed by either manual or facsimile signature of an officer of
such Subsidiary Guarantor, or in the case of a Subsidiary Guarantor that is a limited partnership, an officer of the general partner of
each Subsidiary Guarantor. Each of the Subsidiary Guarantors hereby agrees that the Subsidiary Guarantee set forth in Section 1302 shall
remain in full force and effect notwithstanding any failure to endorse on each Security a notation relating to the Subsidiary Guarantee. If
any officer of the Subsidiary Guarantor, or in the case of a Subsidiary Guarantor that is a limited partnership, any officer of the general
partner of the Subsidiary Guarantor, whose signature is on this Indenture or a Security no longer holds that office at the time the Trustee
authenticates such Security or at any time thereafter, the Subsidiary Guarantee of such Security shall be valid nevertheless. The delivery
of any Security by the Trustee, after the authentication thereof hereunder, shall constitute due delivery of the Subsidiary Guarantee set
forth in this Indenture on behalf of the Subsidiary Guarantors.

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SECTION 1304. Release of Subsidiary Guarantors.

     Unless otherwise specified pursuant to Section 301 with respect to a series of Securities,
each Subsidiary Guarantee will remain in effect with respect to the respective Subsidiary Guarantor
until the entire principal of, premium, if any, and interest on the Securities to which such
Subsidiary Guarantee relates shall have been paid in full or otherwise satisfied and discharged in
accordance with the provisions of such Securities and this Indenture and all amounts owing to the
Trustee hereunder have been paid; provided, however, that if (i) such Subsidiary Guarantor ceases
to be a Subsidiary in compliance with the applicable provisions of this Indenture, (ii) either
Defeasance or Covenant Defeasance occurs with respect to such Securities pursuant to Article
Fifteen or (iii) all or substantially all of the assets of such Subsidiary Guarantor or all of the
Capital Stock of such Subsidiary Guarantor is sold (including by sale, merger, consolidation or
otherwise) by the Company or any Subsidiary in a transaction complying with the requirements of
this Indenture, then, in each case of (i), (ii) or (iii), upon delivery by the Company of an
Officers’ Certificate and an Opinion of Counsel stating that all conditions precedent herein
provided for relating to the release of such Subsidiary Guarantor from its obligations under its
Subsidiary Guarantee and this Article Thirteen have been complied with, such Subsidiary Guarantor
shall be released and discharged of its obligations under its Subsidiary Guarantee and under this
Article Thirteen without any action on the part of the Trustee or any Holder, and the Trustee shall
execute any documents reasonably required in order to acknowledge the release of such Subsidiary
Guarantor from its obligations under its Subsidiary Guarantee endorsed on the Securities of such
series and under this Article Thirteen.

SECTION 1305. Additional Subsidiary Guarantors.

     Unless otherwise specified pursuant to Section 301 with respect to a series of Securities, the
Company will cause any domestic Wholly Owned Subsidiary of the Company that becomes a Subsidiary
after the date the Securities of a series are first issued hereunder to become a Subsidiary
Guarantor as soon as practicable after such Subsidiary becomes a Subsidiary. The Company shall
cause any such Wholly Owned Subsidiary to become a Subsidiary Guarantor with respect to the
Securities by executing and delivering to the Trustee (a) a supplemental indenture, in form and
substance satisfactory to the Trustee, which subjects such Person to the provisions (including the
representations and warranties) of this Indenture as a Subsidiary Guarantor and (b) an Opinion of
Counsel to the effect that such supplemental indenture has been duly authorized and executed by
such Person and such supplemental indenture and such Person’s obligations under its Subsidiary
Guarantee and this Indenture constitute the legal, valid, binding and enforceable obligations of
such Person (subject to such customary exceptions concerning creditors’ rights and equitable
principles as may be acceptable to the Trustee in its discretion).

SECTION 1306. Limitation on Liability.

     Any term or provision of this Indenture to the contrary notwithstanding, the maximum amount of
the Subsidiary Guarantee of any Subsidiary Guarantor shall not exceed the maximum amount that can
be hereby guaranteed by such Subsidiary Guarantor without rendering such Subsidiary Guarantee
voidable under applicable law relating to fraudulent conveyance or fraudulent transfer or similar
laws affecting the rights of creditors generally.

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ARTICLE FOURTEEN

SUBORDINATION OF SUBSIDIARY GUARANTEES

SECTION 1401. Applicability of Article.

     Unless otherwise provided with respect to the Securities of any series in or pursuant to the
Board Resolution or supplemental indenture establishing such series of Securities pursuant to
Section 301, the provisions of this Article shall be applicable to each series of Securities.

SECTION 1402. Subsidiary Guarantees Subordinate to Senior Debt of Subsidiary Guarantors.

     Each Subsidiary Guarantor covenants and agrees, and each Holder of a Security, by his
acceptance thereof, likewise covenants and agrees, that, to the extent and in the manner
hereinafter
set forth in this Article (subject to the provisions of Article Four and Article Fifteen), the
Subsidiary Guarantee of such Subsidiary Guarantor is hereby expressly made subordinate and subject
in right of payment to the prior payment in full of all Senior Debt of such Subsidiary Guarantor.

     No provisions of this Article Fourteen shall prevent the occurrence of any Event of Default.

SECTION 1403. Payment Over of Proceeds Upon Dissolution, Etc.

     In
the event of (a) any insolvency or bankruptcy case or proceeding, or any receivership,
liquidation, reorganization or other similar case or proceeding in connection therewith, relative
to any Subsidiary Guarantor or to its creditors, as such, or to its assets, or (b) any liquidation,
dissolution or other winding up of any Subsidiary Guarantor, whether voluntary or involuntary and
whether or not involving insolvency or bankruptcy, or (c) any assignment for the benefit of
creditors or any other marshalling of assets and liabilities of any Subsidiary Guarantor, then and
in any such event specified in (a), (b) or (c) above (each such event, if any, herein sometimes
referred to as a “Guarantor Proceeding”) the holders of Senior Debt of such Subsidiary Guarantor
shall be entitled to receive payment in full of all amounts due or to become due on or in respect
of all Senior Debt of such Subsidiary Guarantor, or provision shall be made for such payment in
cash or cash equivalents or otherwise in a manner satisfactory to the holders of Senior Debt of
such Subsidiary Guarantor, before the Holders of the Securities are entitled to receive any payment
or distribution of any kind or character, whether in cash, property or securities (including any
payment or distribution which may be payable or deliverable by reason of the payment of any other
indebtedness of such Subsidiary Guarantor subordinated to the payment of the Securities, such
payment or distribution being hereinafter referred to as a “Guarantor Junior Subordinated
Payment”), on account of the Subsidiary Guarantee of such Subsidiary Guarantor (all such payments,
other than the payment or distribution of stock or securities of a Subsidiary Guarantor referred to
in the second succeeding paragraph, herein referred to, individually and collectively, as a
“Guarantee Payment”), and to that end the holders of Senior Debt of such Subsidiary Guarantor shall
be entitled to receive, for application to the payment thereof, any Guarantee Payment which may be
payable or deliverable in respect of such Subsidiary Guarantor’s Subsidiary Guarantee in any such
Guarantor Proceeding.

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     In the event that, notwithstanding the foregoing provisions of this Section, the Trustee or
the Holder of any Security shall have received any Guarantee Payment before all Senior Debt of such
Subsidiary Guarantor is paid in full or payment thereof provided for in cash or cash equivalents or
otherwise in a manner satisfactory to the holders of Senior Debt of such Subsidiary Guarantor, and
if such fact shall, at or prior to the time of such Guarantee Payment, have been made known to the
Trustee or, as the case may be, such Holder, then and in such event such Guarantee Payment shall be
paid over or delivered forthwith to the trustee in bankruptcy, receiver, liquidating trustee,
custodian, assignee, agent or other Person making payment or distribution of assets of such
Subsidiary Guarantor for application to the payment of all Senior Debt of such Subsidiary Guarantor
remaining unpaid, to the extent necessary to pay all Senior Debt of such Subsidiary Guarantor in
full, after giving effect to any concurrent payment or distribution to or for the holders of Senior
Debt of such Subsidiary Guarantor.

     For purposes of this Article only, the words “any payment or distribution of any kind or
character, whether in cash, property or securities” shall not be deemed to include a payment or
distribution of stock or securities of a Subsidiary Guarantor provided for by a plan of
reorganization or readjustment authorized by an order or decree of a court of competent
jurisdiction in a reorganization proceeding under any applicable bankruptcy law or of any other
corporation provided for by such plan of reorganization or readjustment which stock or securities
are subordinated in right of payment to all then outstanding Senior Debt of such Subsidiary
Guarantor to substantially the same extent as the Subsidiary Guarantees are so subordinated as
provided in this Article. The consolidation of a Subsidiary Guarantor with, or the merger of a
Subsidiary Guarantor into, another Person or the liquidation or dissolution of such Subsidiary
Guarantor following the conveyance or other disposition of all or substantially all of its assets
to another Person upon the terms and conditions set forth in Article Eight shall not be deemed a
Guarantor Proceeding for the purposes of this Section if the Person formed by such consolidation or
into which such Subsidiary Guarantor is merged or the Person which acquires by conveyance or
transfer such assets, as the case may be, shall, as a part of such consolidation, merger,
conveyance or other disposition, comply with the conditions set forth in Article Eight.

SECTION 1404. No Payment When Senior Debt of such Subsidiary Guarantor in Default.

     In the event that any Senior Payment Default shall have occurred and be continuing, then no
Guarantee Payment shall be made unless and until such Senior Payment Default shall have been cured
or waived or shall have ceased to exist or all amounts then due and payable in respect of the
relevant Senior Debt of the Company shall have been paid in full, or provision shall have been made
for such payment in cash or cash equivalents or otherwise in a manner satisfactory to the holders
of such Senior Debt; provided, that nothing in this Section shall prevent the satisfaction of any
sinking fund payment in accordance with Article Sixteen by delivering and crediting pursuant to
Section 1602 Securities which have been acquired (upon redemption or otherwise) prior to such
Senior Payment Default.

     In the event that any Senior Nonmonetary Default shall have occurred and be continuing, then,
upon the receipt by the Company, the Subsidiary Guarantors and the Trustee of written notice of
such Senior Nonmonetary Default from any holder, or agent for the holders, of any Designated Senior
Debt of the Company, no Guarantee Payment shall be made during the

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applicable Payment Blockage
Period; provided, however, that nothing in this Section shall prevent the satisfaction of any
sinking fund payment in accordance with Article Sixteen by delivering and crediting pursuant to
Section 1602 Securities which have been acquired (upon redemption or otherwise) prior to the date
of such receipt of such written notice. No more than one Payment Blockage Period may be commenced
with respect to the Subsidiary Guarantees during any 360-day period and there shall be a period of
at least 181 consecutive days in each 360-day period when no Payment Blockage Period is in effect.
For all purposes of this paragraph, no Senior Nonmonetary Default that existed or was continuing on
the date of commencement of any Payment Blockage Period shall be, or be made, the basis for the
commencement of a subsequent Payment Blockage Period, whether or not within a period of 360
consecutive days, unless such Senior Nonmonetary Default shall have been cured for a period of not
less than 90 consecutive days.

     In the event that, notwithstanding the foregoing, a Subsidiary Guarantor shall make any
Guarantee Payment to the Trustee or any Holder prohibited by the foregoing provisions of this
Section, and if such fact shall, at or prior to the time of such Guarantee Payment, have been made
known to the Trustee or, as the case may be, such Holder, then and in such event such Guarantee
Payment shall be paid over and delivered forthwith to the Company.

     The provisions of this Section shall not apply to any Guarantee Payment with respect to which
Section 1403 would be applicable.

SECTION 1405. Payment Permitted If No Default.

     Nothing contained in this Article or elsewhere in this Indenture or in any of the Subsidiary
Guarantees shall prevent (a) a Subsidiary Guarantor, at any time except during the pendency of any
Guarantor Proceeding referred to in Section 1403 or under the conditions described in Section 1404,
from making Guarantee Payments, or (b) the application by the Trustee of any money deposited with
it hereunder to Guarantee Payments or the retention of such Guarantee Payment by the Holders, if,
at the time of such application by the Trustee, it did not have knowledge that such Guarantee
Payment would have been prohibited by the provisions of this Article.

SECTION 1406. Subrogation to Rights of Holders of Senior Debt of such Subsidiary Guarantor.

     Subject to the payment in full of all amounts due or to become due on or in respect of Senior
Debt of a Subsidiary Guarantor, or the provision for such payment in cash or cash equivalents or
otherwise in a manner satisfactory to the holders of Senior Debt of such Subsidiary Guarantor, the
Holders of the Securities shall be subrogated to the rights of the holders of such Senior Debt of
such Subsidiary Guarantor to receive payments and distributions of cash, property and securities
applicable to the Senior Debt of such Subsidiary Guarantor until the principal of (and premium, if
any) and interest on the Securities shall be paid in full. For purposes of such subrogation, no
payments or distributions to the holders of the Senior Debt of a Subsidiary Guarantor of any cash,
property or securities to which the Holders of the Securities or the Trustee would be entitled
except for the provisions of this Article, and no payments over pursuant to the provisions of this
Article to the holders of Senior Debt of a Subsidiary Guarantor

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by Holders of the Securities or the
Trustee, shall, as among a Subsidiary Guarantor, its creditors other than holders of Senior Debt of
such Subsidiary Guarantor and the Holders of the Securities, be deemed to be a payment or
distribution by such Subsidiary Guarantor to or on account of the Senior Debt of such Subsidiary
Guarantor.

SECTION 1407. Provisions Solely to Define Relative Rights.

     The provisions of this Article are and are intended solely for the purpose of defining the
relative rights of the Holders on the one hand and the holders of Senior Debt of a Subsidiary
Guarantor on the other hand. Nothing contained in this Article or elsewhere in this Indenture or
in the Subsidiary Guarantees is intended to or shall (a) impair, as among a Subsidiary Guarantor,
its creditors other than holders of Senior Debt of such Subsidiary Guarantor and the Holders of the
Securities, the obligation of such Subsidiary Guarantor, which is absolute and unconditional (and
which, subject to the rights under this Article of the holders of Senior Debt of such Subsidiary
Guarantor, is intended to rank equally with all other general obligations of such Subsidiary
Guarantor), to guarantee payment to the Holders of the Securities of the principal of (and premium,
if any) and interest on the Securities as and when the same shall become due and payable in
accordance with their terms; or (b) affect the relative rights against a Subsidiary Guarantor of
the Holders of the Securities and creditors of such Subsidiary Guarantor other than the holders of
Senior Debt of such Subsidiary Guarantor; or (c) prevent the Trustee or the Holder of any Security
from exercising all remedies otherwise permitted by applicable law upon default under this
Indenture, subject to the rights, if any, under this Article of the holders of Senior Debt of a
Subsidiary Guarantor to receive cash, property and securities otherwise payable or deliverable to
the Trustee or such Holder.

SECTION 1408. Trustee to Effectuate Subordination.

     Each Holder of a Security by his acceptance thereof authorizes and directs the Trustee on his
behalf to take such action as may be necessary or appropriate to effectuate the subordination
provided in this Article and appoints the Trustee his attorney-in-fact for any and all such
purposes.

SECTION 1409. No Waiver of Subordination Provisions.

     No right of any present or future holder of any Senior Debt of a Subsidiary Guarantor to
enforce subordination as herein provided shall at any time in any way be prejudiced or impaired by
any act or failure to act on the part of such Subsidiary Guarantor or by any act or failure to act,
in good faith, by any such holder, or by any noncompliance by such Subsidiary Guarantor with the
terms, provisions and covenants of this Indenture, regardless of any knowledge thereof any such
holder may have or be otherwise charged with.

     Without in any way limiting the generality of the foregoing paragraph, the holders of Senior
Debt of a Subsidiary Guarantor may, at any time and from time to time, without the consent of or
notice to the Trustee or the Holders of the Securities, without incurring responsibility to the
Holders of the Securities and without impairing or releasing the subordination provided in this
Article or the obligations hereunder of the Holders of the Securities to the holders of Senior Debt
of such Subsidiary Guarantor, do any one or more of the

74

 

following: (i) change the manner, place or
terms of payment or extend the time of payment of, or renew or alter, Senior Debt of such
Subsidiary Guarantor, or otherwise amend or supplement in any manner Senior Debt of such Subsidiary
Guarantor or any instrument evidencing the same or any agreement under which Senior Debt of such
Subsidiary Guarantor is outstanding; (ii) sell, exchange, release or otherwise deal with any
property pledged, mortgaged or otherwise securing Senior Debt of such Subsidiary Guarantor; (iii)
release any Person liable in any manner for the collection of Senior Debt of such Subsidiary
Guarantor; and (iv) exercise or refrain from exercising any rights against such Subsidiary
Guarantor and any other Person.

SECTION 1410. Notice to Trustee.

     Each Subsidiary Guarantor shall give prompt written notice to the Trustee of any fact known to
such Subsidiary Guarantor which would prohibit the making of any payment to or by the Trustee in
respect of its Subsidiary Guarantee. Notwithstanding the provisions of this Article or any other
provision of this Indenture, the Trustee shall not be charged with knowledge of the
existence of any facts which would prohibit the making of any payment to or by the Trustee in
respect of the Subsidiary Guarantees, unless and until the Trustee shall have received written
notice thereof from a Subsidiary Guarantor or a holder of Senior Debt of such Subsidiary Guarantor
or from any trustee therefor; and, prior to the receipt of any such written notice, the Trustee,
subject to the provisions of Section 601, shall be entitled in all respects to assume that no such
facts exist; provided, however, that if the Trustee shall not have received the notice provided for
in this Section at least three Business Days prior to the date upon which by the terms hereof any
money may become payable for any purpose (including, without limitation, the payment of the
principal of (and premium, if any) or interest on any Security), then, anything herein contained to
the contrary notwithstanding, the Trustee shall have full power and authority to receive such money
and to apply the same to the purpose for which such money was received and shall not be affected by
any notice to the contrary which may be received by it within three Business Days prior to such
date.

     Subject to the provisions of Section 601, the Trustee shall be entitled to rely on the
delivery to it of a written notice by a Person representing himself to be a holder of Senior Debt
of a Subsidiary Guarantor (or a trustee therefor) to establish that such notice has been given by a
holder of Senior Debt of such Subsidiary Guarantor (or a trustee therefor). In the event that the
Trustee determines in good faith that further evidence is required with respect to the right of any
Person as a holder of Senior Debt of a Subsidiary Guarantor to participate in any payment or
distribution pursuant to this Article, the Trustee may request such Person to furnish evidence to
the reasonable satisfaction of the Trustee as to the amount of Senior Debt of such Subsidiary
Guarantor held by such Person, the extent to which such Person is entitled to participate in such
payment or distribution and any other facts pertinent to the rights of such Person under this
Article, and if such evidence is not furnished, the Trustee may defer any payment to such Person
pending judicial determination as to the right of such Person to receive such payment.

SECTION 1411. Reliance on Judicial Order or Certificate of Liquidating Agent.

     Upon any payment or distribution of assets of a Subsidiary Guarantor referred to in this
Article, the Trustee, subject to the provisions of Section 601, and the Holders of the Securities
shall be entitled to rely upon any order or decree entered by any court of competent jurisdiction

75

 

in which such Guarantor Proceeding is pending, or a certificate of the trustee in bankruptcy,
receiver, liquidating trustee, custodian, assignee for the benefit of creditors, agent or other
Person making such payment or distribution, delivered to the Trustee or to the Holders of
Securities, for the purpose of ascertaining the Persons entitled to participate in such payment or
distribution, the holders of the Senior Debt of such Subsidiary Guarantor and other indebtedness of
such Subsidiary Guarantor, the amount thereof or payable thereon, the amount or amounts paid or
distributed thereon and all other facts pertinent thereto or to this Article.

			
	SECTION 1412.	 	Trustee Not Fiduciary for Holders of Senior Debt of such Subsidiary
Guarantor.

     The Trustee shall not be deemed to owe any fiduciary duty to the holders of Senior Debt of a
Subsidiary Guarantor and shall not be liable to any such holders if it shall in good faith
mistakenly pay over or distribute to Holders of Securities or to the Company, a Subsidiary
Guarantor, or to any other Person cash, property or securities to which any holders of Senior
Debt of such Subsidiary Guarantor shall be entitled by virtue of this Article or otherwise.

			
	SECTION 1413.	 	Rights of Trustee as Holder of Senior Debt of such Subsidiary Guarantor;
Preservation of Trustee’s Rights.

     The Trustee in its individual capacity shall be entitled to all the rights set forth in this
Article with respect to any Senior Debt of a Subsidiary Guarantor which may at any time be held by
it, to the same extent as any other holder of Senior Debt of such Subsidiary Guarantor, and nothing
in this Indenture shall deprive the Trustee of any of its rights as such holder.

     Nothing in this Article shall apply to claims of, or payments to, the Trustee under or
pursuant to Section 607.

SECTION 1414. Article Applicable to Paying Agents.

     In case at any time any Paying Agent other than the Trustee shall have been appointed by the
Company and be then acting hereunder, the term “Trustee” as used in this Article shall in such case
(unless the context otherwise requires) be construed as extending to and including such Paying
Agent within its meaning as fully for all intents and purposes as if such Paying Agent were named
in this Article in addition to or in place of the Trustee; provided, however, that Section 1413
shall not apply to the Company, any Subsidiary Guarantor or any Affiliate of the Company if it or
such Subsidiary Guarantor or Affiliate acts as Paying Agent.

SECTION 1415. Defeasance of this Article Fourteen.

     The subordination of the Subsidiary Guarantees provided by this Article Fourteen is expressly
made subject to the provisions for Defeasance or Covenant Defeasance of a series of Securities in
Article Fifteen hereof and, anything herein to the contrary notwithstanding, upon the effectiveness
of any such Defeasance or Covenant Defeasance with respect to a series of Securities, the
Subsidiary Guarantees of the Securities of such series shall thereupon cease to be subordinated
pursuant to this Article Fourteen.

76

 

ARTICLE FIFTEEN

DEFEASANCE AND COVENANT DEFEASANCE

SECTION 1501. Company’s Option to Effect Defeasance or Covenant Defeasance.

     The Company may elect, at its option at any time, to have Section 1502 or Section 1503 applied
to any Securities or any series of Securities, as the case may be, designated pursuant to Section
301 as being defeasible pursuant to such Section 1502 or 1503, in accordance with any applicable
requirements provided pursuant to Section 301 and upon compliance with the conditions set forth
below in this Article. Any such election shall be evidenced in or pursuant to a Board Resolution
or in another manner specified as contemplated by Section 301 for such Securities.

SECTION 1502. Defeasance and Discharge.

     Upon the Company’s exercise of its option (if any) to have this Section applied to any
Securities or any series of Securities, as the case may be, the Company shall be deemed to have
been discharged from its obligations, and each Subsidiary Guarantor shall be deemed to have been
discharged from its obligations with respect to its Subsidiary Guarantee of such Securities, and
the provisions of Articles Twelve and Fourteen shall cease to be effective, with respect to such
Securities and Subsidiary Guarantees as provided in this Section on and after the date the
conditions set forth in Section 1504 are satisfied (herein called “Defeasance”). For this purpose,
such Defeasance means that the Company shall be deemed to have paid and discharged the entire
indebtedness represented by such Securities and to have satisfied all its other obligations under
such Securities and this Indenture insofar as such Securities are concerned (and the Trustee, at
the expense of the Company, shall execute proper instruments acknowledging the same), subject to
the following which shall survive until otherwise terminated or discharged hereunder: (1) the
rights of Holders of such Securities to receive, solely from the trust fund described in Section
1504 and as more fully set forth in such Section, payments in respect of the principal of and any
premium and interest on such Securities when payments are due, or, if applicable, to convert such
Securities in accordance with their terms, (2) the Company’s and each Subsidiary Guarantor’s
obligations with respect to such Securities under Sections 304, 305, 306, 1002 and 1003, and, if
applicable, their obligations with respect to the conversion of such Securities, (3) the rights,
powers, trusts, duties and immunities of the Trustee hereunder and (4) this Article. Subject to
compliance with this Article, the Company may exercise its option (if any) to have this Section
applied to any Securities notwithstanding the prior exercise of its option (if any) to have Section
1503 applied to such Securities.

SECTION 1503. Covenant Defeasance.

     Upon the Company’s exercise of its option (if any) to have this Section applied to any
Securities or any series of Securities, as the case may be, (1) the Company shall be released from
its obligations under Section 801(3), Sections 1005 through 1008, inclusive, and any covenants
provided pursuant to Section 301(22), 901(2) or 901(7) for the benefit of the Holders of such
Securities, and (2) the occurrence of any event specified in Sections 501(5) (with respect to any
of Section 801(3), Sections 1005 through 1008, inclusive, and any such covenants provided pursuant
to Section 301(22), 901(2) or 901(7)), 501(6), 501(7)), 501(10) and 501(11) shall be

77

 

deemed not to
be or result in an Event of Default and (3) the provisions of Articles Twelve, Thirteen and
Fourteen shall cease to be effective, in each case with respect to such Securities and Subsidiary
Guarantees as provided in this Section on and after the date the conditions set forth in Section
1504 are satisfied (herein called “Covenant Defeasance”). For this purpose, such Covenant
Defeasance means that, with respect to such Securities, the Company and the Subsidiary Guarantors,
as applicable, may omit to comply with and shall have no liability in respect of any term,
condition or limitation set forth in any such specified Section (to the extent so specified in the
case of Section 501(5)) or Article Twelve, Thirteen or Article Fourteen, whether directly or
indirectly by reason of any reference elsewhere herein to any such Section or Article or by reason
of any reference in any such Section or Article to any other provision herein or in any other
document, but the remainder of this Indenture and such Securities shall be unaffected thereby.

SECTION 1504. Conditions to Defeasance or Covenant Defeasance.

     The following shall be the conditions to the application of Section 1502 or Section 1503 to
any Securities or any series of Securities, as the case may be:

     (1) The Company shall irrevocably have deposited or caused to be deposited with the
Trustee (or another trustee which satisfies the requirements contemplated by Section 609 and
agrees to comply with the provisions of this Article applicable to it) as trust funds in
trust for the purpose of making the following payments, specifically pledged as security
for, and dedicated solely to, the benefits of the Holders of such Securities, (A) money in
an amount, or (B) U.S. Government Obligations which through the scheduled payment of
principal and interest in respect thereof in accordance with their terms will provide, not
later than one day before the due date of any payment, money in an amount, or (C) a
combination thereof, in each case sufficient, in the opinion of a nationally recognized firm
of independent public accountants expressed in a written certification thereof delivered to
the Trustee, to pay and discharge, and which shall be applied by the Trustee (or any such
other qualifying trustee) to pay and discharge, the principal of and any premium and
interest on such Securities on the respective Stated Maturities, in accordance with the
terms of this Indenture and such Securities. As used herein, “U.S. Government Obligation”
means (x) any security which is (i) a direct obligation of the United States of America for
the payment of which the full faith and credit of the United States of America is pledged or
(ii) an obligation of a Person controlled or supervised by and acting as an agency or
instrumentality of the United States of America the payment of which is unconditionally
guaranteed as a full faith and credit obligation by the United States of America, which, in
either case (i) or (ii), is not callable or redeemable at the option of the issuer thereof,
and (y) any depositary receipt issued by a bank (as defined in Section 3(a)(2) of the
Securities Act) as custodian with respect to any U.S. Government Obligation which is
specified in clause (x) above and held by such bank for the account of the holder of such
depositary receipt, or with respect to any specific payment of principal of or interest on
any U.S. Government Obligation which is so specified and held, provided that (except as
required by law) such custodian is not authorized to make any deduction from the amount
payable to the holder of such depositary receipt from any amount received by the custodian
in respect of the U.S.

78

 

Government Obligation or the specific payment of principal or
interest evidenced by such depositary receipt.

     (2) In the event of an election to have Section 1502 apply to any Securities or any
series of Securities, as the case may be, the Company shall have delivered to the Trustee an
Opinion of Counsel stating that (A) the Company has received from, or there has been
published by, the Internal Revenue Service a ruling or (B) since the date of this
instrument, there has been a change in the applicable Federal income tax law, in either case
(A) or (B) to the effect that, and based thereon such opinion shall confirm that, the
Holders of such Securities will not recognize gain or loss for Federal income tax purposes
as a result of the deposit, Defeasance and discharge to be effected with respect to such
Securities and will be subject to Federal income tax on the same amount, in the same manner
and at the same times as would be the case if such deposit and Defeasance were not to occur.

     (3) In the event of an election to have Section 1503 apply to any Securities or any
series of Securities, as the case may be, the Company shall have delivered to the Trustee an
Opinion of Counsel to the effect that the Holders of such Securities will not recognize gain
or loss for Federal income tax purposes as a result of the deposit and Covenant Defeasance
to be effected with respect to such Securities and will be subject to Federal income tax on
the same amount, in the same manner and at the same times as would be the case if such
deposit and Covenant Defeasance were not to occur.

     (4) The Company shall have delivered to the Trustee an Officers’ Certificate to the
effect that neither such Securities nor any other Securities of the same series, if then
listed on any securities exchange, will be delisted as a result of such deposit.

     (5) No event which is, or after notice or lapse of time or both would become, an Event
of Default with respect to such Securities shall have occurred and be continuing at the time
of such deposit or, with regard to any such event specified in Sections 501(7) and (8), at
any time on or prior to the 121st day after the date of such deposit (it being understood
that this condition shall not be deemed satisfied until after such 121st day).

     (6) Such Defeasance or Covenant Defeasance shall not cause the Trustee to have a
conflicting interest within the meaning of the Trust Indenture Act (assuming all Securities
are in default within the meaning of such Act).

     (7) Such Defeasance or Covenant Defeasance shall not result in a breach or violation
of, or constitute a default under, any other agreement or instrument to which the Company or
any Subsidiary is a party or by which it is bound.

     (8) At the time of such deposit, (A) no default in the payment of any principal of or
premium or interest on any Senior Debt of the Company or any Subsidiary Guarantor shall have
occurred and be continuing, (B) no event of default with respect to any Senior Debt of the
Company or any Subsidiary Guarantor shall have resulted in such Senior Debt becoming, and
continuing to be, due and payable prior to the date on which it would otherwise have become
due and payable (unless payment of such Senior Debt

79

 

has been made or duly provided for), and
(C) no other event of default with respect to any Senior Debt of the Company or any
Subsidiary Guarantor shall have occurred and be continuing permitting (after notice or lapse
of time or both) the holders of such Senior Debt (or a trustee on behalf of such holders) to
declare such Senior Debt due and payable prior to the date on which it would otherwise have
become due and payable.

     (9) The Company shall have delivered to the Trustee an Opinion of Counsel to the effect
that such deposit shall not cause either the Trustee or the trust so created to be subject
to the Investment Company Act of 1940.

     (10) The Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that all conditions precedent with respect to such
Defeasance or Covenant Defeasance have been complied with.

			
	SECTION 1505.	 	Deposited Money and U.S. Government Obligations to Be Held in Trust;
Miscellaneous Provisions.

     Subject to the provisions of the last paragraph of Section 1003, all money and U.S. Government
Obligations (including the proceeds thereof) deposited with the Trustee or other qualifying trustee
(solely for purposes of this Section and Section 1506, the Trustee and any such other trustee are
referred to collectively as the “Trustee”) pursuant to Section 1504 in respect of any Securities
shall be held in trust and applied by the Trustee, in accordance with the provisions of such
Securities and this Indenture, to the payment, either directly or through any such Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may determine, to the Holders
of such Securities, of all sums due and to become due thereon in respect of principal and any
premium and interest, but money so held in trust need not be segregated from other funds except to
the extent required by law. Money and U.S. Government Obligations so held in trust shall not be
subject to the provisions of Article Twelve or Article Fourteen.

     The Company shall pay and indemnify the Trustee against any tax, fee or other charge imposed
on or assessed against the U.S. Government Obligations deposited pursuant to Section 1504 or the
principal and interest received in respect thereof other than any such tax, fee or other charge
which by law is for the account of the Holders of Outstanding Securities.

     Anything in this Article to the contrary notwithstanding, the Trustee shall deliver or pay to
the Company from time to time upon Company Request any money or U.S. Government Obligations held by
it as provided in Section 1504 with respect to any Securities which, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written certification thereof
delivered to the Trustee, are in excess of the amount thereof which would then be required to be
deposited to effect the Defeasance or Covenant Defeasance, as the case may be, with respect to such
Securities.

SECTION 1506. Reinstatement.

     If the Trustee or the Paying Agent is unable to apply any money in accordance with this
Article with respect to any Securities by reason of any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such application, then the
obligations under this Indenture and such Securities from which the Company has been

80

 

discharged or
released pursuant to Section 1502 or 1503 shall be revived and reinstated as though no deposit had
occurred pursuant to this Article with respect to such Securities, until such time as the Trustee
or Paying Agent is permitted to apply all money held in trust pursuant to Section 1505 with respect
to such Securities in accordance with this Article; provided, however, that if the Company makes
any payment of principal of or any premium or interest on any such Security following such
reinstatement of its obligations, the Company shall be subrogated to the rights (if any) of the
Holders of such Securities to receive such payment from the money so held in trust.

ARTICLE SIXTEEN

SINKING FUNDS

SECTION 1601. Applicability of Article.

     The provisions of this Article shall be applicable to any sinking fund for the retirement of
Securities of any series except as otherwise specified as contemplated by Section 301 for such
Securities.

     The minimum amount of any sinking fund payment provided for by the terms of any Securities is
herein referred to as a “mandatory sinking fund payment”, and any payment in excess of such minimum
amount provided for by the terms of such Securities is herein referred to as an “optional sinking
fund payment.” If provided for by the terms of any Securities, the cash amount of any sinking fund
payment may be subject to reduction as provided in Section 1602. Each sinking fund payment shall
be applied to the redemption of Securities as provided for by the terms of such Securities.

SECTION 1602. Satisfaction of Sinking Fund Payments with Securities.

     The Company (1) may deliver Outstanding Securities of a series (other than any previously
called for redemption) and (2) may apply as a credit Securities of a series which have been (x)
converted or (y) redeemed either at the election of the Company pursuant to the terms of such
Securities or through the application of permitted optional sinking fund payments pursuant to the
terms of such Securities, in each case in satisfaction of all or any part of any sinking fund
payment with respect to any Securities of such series required to be made pursuant to the terms of
such Securities as and to the extent provided for by the terms of such Securities; provided,
however, that the Securities to be so credited have not been previously so credited. The
Securities to be so credited shall be received and credited for such purpose by the Trustee at the
Redemption Price, as specified in the Securities so to be redeemed, for redemption through
operation of the sinking fund and the amount of such sinking fund payment shall be reduced
accordingly.

SECTION 1603. Redemption of Securities for Sinking Fund.

     Not less than 35 days prior to each sinking fund payment date for any Securities, the Company
will deliver to the Trustee an Officers’ Certificate specifying the amount of the next ensuing
sinking fund payment for such Securities pursuant to the terms of such Securities, the portion
thereof, if any, which is to be satisfied by payment of cash and the portion thereof, if any, which
is to be satisfied by delivering and crediting Securities pursuant to Section 1602 and will

81

 

also
deliver to the Trustee any Securities to be so delivered. Not less than 32 days prior to each such
sinking fund payment date, the Trustee shall select the Securities to be redeemed upon such sinking
fund payment date in the manner specified in Section 1103 and cause notice of the redemption
thereof to be given in the name of and at the expense of the Company in the manner provided in
Section 1104. Such notice having been duly given, the redemption of such Securities shall be made
upon the terms and in the manner stated in Sections 1106 and 1107.

     This instrument may be executed in any number of counterparts, each of which so executed shall
be deemed to be an original, but all such counterparts shall together constitute but one and the
same instrument.

82

 

     IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed, all as
of the day and year first above written.

	 	 	 	 	 	 	 
	 	 	ISSUER:	 	 
	 
	 	 	 	 	 	 
	 	 	CONCHO RESOURCES INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	SUBSIDIARY GUARANTORS:	 	 
	 
	 	 	 	 	 	 
	 	 	[INSERT SUBSIDIARY GUARANTORS]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	TRUSTEE:	 	 
	 
	 	 	 	 	 	 
	 	 	[TRUSTEE’S NAME],	 	 
	 	 	as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 

 

 

SCHEDULE I

SUBSIDIARY GUARANTORS

	 	 	 
	SUBSIDIARY
	 	STATE OF ORGANIZATION
	 
	 	 

[Insert Subsidiary Guarantors]

Schedule IExhibit 10.01

Exhibit 10.01

First Amended and Restated

ARA Alliance, Purchase and Production Agreement

By and Between

Martek Biosciences Corporation

And

DSM Food Specialties B.V.

Dated as of July 13, 2009

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 
	 	 	 	 
	1. INTRODUCTION
	 	 	1	 
	 
	 	 	 	 
	2. DEFINITIONS
	 	 	2	 
	 
	 	 	 	 
	3. SUPPLY, PRODUCTION AND ORDERS
	 	 	15	 
	 
	 	 	 	 
	3.1. Martek Requirements for ARA Products
	 	 	15	 
	 
	 	 	 	 
	3.2. DSM Production
	 	 	16	 
	 
	 	 	 	 
	3.3. Martek Production
	 	 	17	 
	 
	 	 	 	 
	3.4. Extraction and RBD Services
	 	 	20	 
	 
	 	 	 	 
	3.5. Martek Three Year Rolling Forecasts; Martek Firm Orders
	 	 	23	 
	 
	 	 	 	 
	3.6. DSM Three Year Rolling Forecast; DSM Firm Orders
	 	 	24	 
	 
	 	 	 	 
	3.7. Delivery Instructions
	 	 	24	 
	 
	 	 	 	 
	3.8. Shipment
	 	 	25	 
	 
	 	 	 	 
	3.9. Order Fulfillment
	 	 	26	 
	 
	 	 	 	 
	3.10. Limitation on Breach
	 	 	26	 
	 
	 	 	 	 
	4. QUALITY AND VERIFICATION
	 	 	27	 
	 
	 	 	 	 
	4.1. Verification of Production
	 	 	27	 
	 
	 	 	 	 
	4.2. Certification of Analysis
	 	 	27	 
	 
	 	 	 	 
	4.3. Refined Biomass Specification; Specification Changes
	 	 	29	 
	 
	 	 	 	 
	4.4. Ongoing Biomass Quality Review; Verification of Production Changes
	 	 	30	 
	 
	 	 	 	 
	4.5. Inspection
	 	 	30	 
	 
	 	 	 	 
	4.6. Manufacturing Changes
	 	 	31	 
	 
	 	 	 	 
	4.7. ARA Product Non-Conformity Procedure; Rework and Destruction
	 	 	34	 
	 
	 	 	 	 
	4.8. Compliance
	 	 	35	 

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

 

 

	 	 	 	 	 
	4.9. Disclaimers
	 	 	36	 
	 
	 	 	 	 
	5. MARKETING
	 	 	37	 
	 
	 	 	 	 
	5.1. Expansion of Fields of Use
	 	 	37	 
	 
	 	 	 	 
	5.2. Customer Contracts
	 	 	37	 
	 
	 	 	 	 
	5.3. Priority of ARA Marketing
	 	 	38	 
	 
	 	 	 	 
	5.4. * Arrangements with * Customers
	 	 	38	 
	 
	 	 	 	 
	5.5. Notification and Challenge Procedure
	 	 	39	 
	 
	 	 	 	 
	6. FINANCIAL MATTERS
	 	 	42	 
	 
	 	 	 	 
	6.1. Amounts Payable by Martek
	 	 	42	 
	 
	 	 	 	 
	6.2. Reconciliations to the Budgeted Price
	 	 	46	 
	 
	 	 	 	 
	6.3. Adjustments to the Budgeted Price
	 	 	48	 
	 
	 	 	 	 
	6.4. Amounts Payable by DSM
	 	 	50	 
	 
	 	 	 	 
	6.5. Invoices and Payment
	 	 	51	 
	 
	 	 	 	 
	6.6. Interest Charges for Inventory
	 	 	52	 
	 
	 	 	 	 
	6.7. Margin Protection
	 	 	52	 
	 
	 	 	 	 
	6.8. Stop Loss
	 	 	53	 
	 
	 	 	 	 
	6.9. Review of Alliance Structure and Economics; Renegotiation of Pricing Arrangements
	 	 	54	 
	 
	 	 	 	 
	6.10. Transparency
	 	 	54	 
	 
	 	 	 	 
	6.11. Books and Records
	 	 	55	 
	 
	 	 	 	 
	6.12. Break Up Fee
	 	 	56	 
	 
	 	 	 	 
	6.13. Considerations for Payments and Volume Commitments
	 	 	56	 
	 
	 	 	 	 
	7. PRODUCT DEVELOPMENTS AND PATENTS
	 	 	57	 
	 
	 	 	 	 
	7.1. R&D Collaboration
	 	 	57	 

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

 

 

	 	 	 	 	 
	7.2. Intellectual Property Rights
	 	 	59	 
	 
	 	 	 	 
	7.3. Prosecution, Maintenance and Enforcement
	 	 	62	 
	 
	 	 	 	 
	7.4. Intellectual Property Licenses
	 	 	66	 
	 
	 	 	 	 
	7.5. Technology Transfers
	 	 	72	 
	 
	 	 	 	 
	7.6. Protection of Other Joint Intellectual Property
	 	 	73	 
	 
	 	 	 	 
	8. ORGANIZATION (COMMUNICATION, COMMITTEES)
	 	 	74	 
	 
	 	 	 	 
	8.1. Formation of the Committee
	 	 	74	 
	 
	 	 	 	 
	8.2. Meetings of the Committee
	 	 	74	 
	 
	 	 	 	 
	8.3. Status Reports of the Committee
	 	 	74	 
	 
	 	 	 	 
	8.4. Scope of the Committee Meetings
	 	 	75	 
	 
	 	 	 	 
	8.5. Deadlock Within a Committee
	 	 	75	 
	 
	 	 	 	 
	8.6. Deadlock Within the Committee Over Factual Matters
	 	 	75	 
	 
	 	 	 	 
	8.7. Deadlock Within the Committee Over Non-Factual Matters
	 	 	76	 
	 
	 	 	 	 
	8.8. External Communication
	 	 	76	 
	 
	 	 	 	 
	9. TERM; TERMINATION; DAMAGES
	 	 	77	 
	 
	 	 	 	 
	9.1. Term
	 	 	77	 
	 
	 	 	 	 
	9.2. Termination for Cause
	 	 	77	 
	 
	 	 	 	 
	9.3. Effect of Expiration and Termination on Intellectual Property Rights
	 	 	80	 
	 
	 	 	 	 
	9.4. Other Effects of Termination; Damages; Cap
	 	 	84	 
	 
	 	 	 	 
	9.5. Limitation of Liability
	 	 	88	 
	 
	 	 	 	 
	10. GENERAL
	 	 	88	 
	 
	 	 	 	 
	10.1. Non-Solicitation
	 	 	88	 
	 
	 	 	 	 
	10.2. Confidential Information
	 	 	89	 
	 
	 	 	 	 
	10.3. Survival
	 	 	89	 

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

 

 

	 	 	 	 	 
	10.4. Trademarks
	 	 	90	 
	 
	 	 	 	 
	10.5. Disputes; Arbitration
	 	 	91	 
	 
	 	 	 	 
	10.6. Regulatory Matters
	 	 	92	 
	 
	 	 	 	 
	10.7. Assignment, Delegation and Subrogation; Insurance Inspection
	 	 	92	 
	 
	 	 	 	 
	10.8. Amendments and Waivers
	 	 	93	 
	 
	 	 	 	 
	10.9. Severability
	 	 	93	 
	 
	 	 	 	 
	10.10. Relationship of the Parties
	 	 	94	 
	 
	 	 	 	 
	10.11. Notices
	 	 	94	 
	 
	 	 	 	 
	10.12. Governing Law
	 	 	95	 
	 
	 	 	 	 
	10.13. Force Majeure
	 	 	95	 
	 
	 	 	 	 
	10.14. No Waivers
	 	 	95	 
	 
	 	 	 	 
	10.15. Entire Agreement
	 	 	96	 
	 
	 	 	 	 
	10.16. Counterparts
	 	 	96	 
	 
	 	 	 	 
	10.17. Guarantees
	 	 	96	 
	 
	 	 	 	 
	10.18. Hierarchy of Documents
	 	 	96	 

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

 

 

MARTEK BIOSCIENCES CORPORATION

DSM FOOD SPECIALTIES BV

FIRST AMENDED AND RESTATED

ARA ALLIANCE, PURCHASE AND PRODUCTION AGREEMENT

This First Amended and Restated ARA Alliance, Purchase and Production Agreement (the “Restated
Agreement”) is made and entered into this 13th day of July, 2009 (the “Restatement Effective Date”)
by and between DSM Food Specialties B.V., a Besloten Vennootschap organized under the laws of the
Netherlands with its principal place of business at A. Fleminglaan 1, 2613 AX Delft, the
Netherlands (“DSM”), and MARTEK BIOSCIENCES CORPORATION, a corporation organized under the laws of
the State of Delaware with its principal place of business at 6480 Dobbin Road, Columbia, Maryland
21045, USA (“Martek”) who, intending to be legally bound, hereby agree as follows:

1. INTRODUCTION

1.1 Martek and DSM have developed certain complementary (and, in some cases, blocking)
technology for the production, refining and blending of arachidonic acid for use in infant formula
to meet the nutritional needs of infants and as a potential nutritional supplement and/or food
ingredient for young children, pregnant and lactating women and adults generally. Martek owns
technology related to the manufacture and use of arachidonic acid and has certain issued patents
and pending patent applications throughout the world claiming (a) certain processes for the
manufacture of arachidonic acid, (b) certain compounds and (c) certain uses; and DSM owns
technology related to the manufacture of arachidonic acid and has certain issued patents and
pending patent applications throughout the world claiming (a) certain processes for the manufacture
of arachidonic acid, (b) certain formulations for that product, (c) certain compounds and (d)
certain applications. Martek has also obtained certain governmental regulatory approvals for the
use of arachidonic acid in infant formula.

1.2 Martek and DSM entered into an ARA Alliance, Purchase, and Production Agreement as of
April 19, 2004 (the “Signing Date”), but with effect as of and as though entered into on January 1,
2004 (the “Effective Date of the Alliance”) pursuant to which Martek and DSM agreed to certain
cross-licensing, purchase, and production arrangements (the “Alliance Agreement”) relating to
arachidonic acid, and entered into a related August 2004 letter agreement (the “August 2004 Letter
Agreement”).

1.3 Martek and DSM entered into a First Amendment to the Alliance Agreement (the “First
Amendment”) as of the 31st day of December, 2005, but with effect as of and as though entered into
on January 1, 2005 that sets forth certain amendments to the Alliance Agreement.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

1

 

1.4 Martek and DSM entered into a Second Amendment to the Alliance Agreement (the “Second
Amendment”) effective as of the 1st day of January 2007 (the “Effective Date of the Second
Amendment”) that sets forth certain further amendments to the Alliance Agreement.

1.5 Martek and DSM thereafter entered into a letter agreement (the “Guarantee Remainder
Letter”) dated as of April 23, 2008 to address certain commitments under the Alliance Agreement, as
amended by the First Amendment and the Second Amendment.

1.6 Martek and DSM entered into a Heads of Agreement for the Third Amendment of the DSM-Martek
Alliance Agreement dated December 23, 2008 (the “Heads of Agreement”).

1.7 Martek and DSM now desire to enter into this Restated Agreement in order to consolidate
and restate the Alliance Agreement, as amended by the 2004 Letter Agreement, the First Amendment,
the Second Amendment and the Guarantee Remainder Letter and as supplemented by the Heads of
Agreement, and to make further amendments to the rights and obligations of the parties hereto,
effective as of the Restatement Effective Date, all as set forth herein.

1.8 Martek and DSM acknowledge that without the covenants, commitments and agreements relating
to Intellectual Property cross-licensing, potential reciprocal capacity expansion, purchase and
supply relationships, and certain other information-sharing and interdependencies set forth in the
Alliance Agreement (as amended to date) and this Restated Agreement, DSM and Martek would not be
able or willing to contribute their complementary resources to cooperative marketing and joint
research and development efforts to expand the applications and fields of use for arachidonic acid.

Now, therefore, the parties hereto hereby agree as follows.

2. DEFINITIONS

2.1. “ABN” shall mean Advanced Bionutrition Corporation, a Maryland corporation with offices
at 7155 Columbia Gateway Drive, Columbia, Maryland 21046.

2.2. “Actual Rates” shall have the meaning set forth in Section 6.2(b).

2.3. “Actual Usage” shall mean that quantity of ARA Products contained in a Martek Purchase
Order for a quarter placed by Martek in accordance with Section 3.5(c) and actually delivered by
DSM to Martek in accordance herewith.

2.4. “Additional Capital Asset(s)” shall have the meaning set forth in Section 4.6(d).

2.5. “Adult Applications Gross Profits” shall mean the combined Gross Profits realized by DSM
and Martek, from DSM’s manufacture of the ARA Products to Martek’s sales
to its customer, less the selling and transaction costs related to such sales, on the sales of
Units of ARA that are ultimately sold for use in ARA Applications for Adults.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

2

 

2.6. “Affiliate” shall mean, with respect to any Person, any other Person directly or
indirectly controlling, controlled by, or under common control with, such Person. A Person shall
be deemed to “control” another Person if such Person possesses, directly or indirectly, the power
to direct or cause the direction of the management or policies of such other Person, whether
through ownership of voting securities, by contract or otherwise.

2.7. “Agreed Annual Fixed Cost” shall mean the Agreed Annual Fixed Cost for the relevant
calendar year as set forth in Section 6.1.

2.8. “Agreed Price” shall mean the amount paid by Martek to DSM per Unit of ARA with respect
to each calendar year 2009 through 2014 based on the Units of ARA purchased by Martek determined by
reference to the applicable Budgeted Price in Section 6.1, as revised to reflect any
reconciliations and adjustments as set forth in Sections 6.2 and 6.3.

2.9. “Approved Capital Asset(s)” shall have the meaning set forth in Section 4.6(d).

2.10. “ARA” shall mean the fatty acid called “arachidonic acid”.

2.11. “ARA Applications for Adults” shall mean products containing ARA Products that are
specifically labeled and/or marketed for persons over twelve (12) years of age, but shall not
include any products containing ARA Products that are specifically labeled for pregnant and/or
lactating women.

2.12. “ARA Assay Procedure” shall mean the method to determine the content of ARA in any
Biomass, Crude Oil or Finished Oil set forth in Schedule 2.12.

2.13. “ARA Fields of Use” shall mean, with respect to Martek, the Martek ARA Fields of Use
and, with respect to DSM, the DSM ARA Fields of Use.

2.14. “ARA Products” shall mean Biomass, Crude Oil, Finished Oil, Spent Biomass and ARA
produced in any other form and/or made by any process wherein the ARA content is greater than * of
total fatty acids.

2.15. “Audited Party” shall have the meaning set forth in Section 6.11.

2.16. “Biomass” shall mean fermentation product containing ARA conforming to the
Specifications set forth in Schedule 2.16.

2.17. “Blended Product” shall mean a product containing an ARA Product and one or more other
long chain polyunsaturated fatty acids.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

3

 

2.18. “Breaching Party” shall have the meaning set forth in Section 9.2(b)(i)(A).

2.19. “Break Up Fee Account” shall have the meaning set forth in Section 6.12(a).

2.20. “Budgeted Price” shall be determined as specified in Section 6.1.

2.21. “Budgeted Rates” shall have the meaning set forth in Section 6.1.

2.22. “Cap” shall have the meaning set forth in Section 9.4(c).

2.23. “Capacity Dispute” shall mean the disagreement of the parties as to whether, pursuant to
Section 3.3(c), a DSM Shortfall is projected based on the Martek Three Year Rolling Forecast and
the DSM Three Year Rolling Production Forecast because Martek disagrees with DSM Three Year Rolling
Production Forecast or otherwise.

2.24. “cGMPs” shall mean those current good manufacturing practices that are appropriate for
the manufacturer of an ingredient that is used in infant formulas and foods, feeds and
pharmaceuticals and shall specifically include those FDA regulations pertaining to infant formulas
and food ingredients appearing in the Code of Federal Regulations, Title 21, Parts 106 and 110,
including FDA guidelines related thereto and other FDA interpretations thereof.

2.25. “Claim” shall have the meaning set forth in Section 4.2(c).

2.26. “Committee” shall have the meaning set forth in Section 8.1.

2.27. “Confidential Information” shall have the meaning set forth in Section 10.2.

2.28. “Crude Oil” shall mean an ARA Product that is collected after Extraction and that
conforms to the Specifications set forth in Schedule 2.28.

2.29. “Current Year” shall have the meaning set forth in Section 6.1.

2.30. “Customer ARA Production Royalty” shall have the meaning set forth in Section 6.1(i).

2.31. “Decision Date” shall have the meaning set forth in Section 5.5(b).

2.32. “Declining Party” shall have the meaning set forth in Section 7.3(a)(iii).

2.33. “DHA” shall mean the fatty acid called “docosahexanoic acid” produced by fermentation or
derived from plants.

2.34. “DHA Product” shall have the meaning set forth in Section 7.4(e).

2.35. “*” shall mean symptoms of, damage to or deterioration of the * as a result of *.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

4

 

2.36. “Disputed Fact” shall have the meaning set forth in Section 8.5.

2.37. “Disputed Issue” shall have the meaning set forth in Section 8.7.

2.38. “Down Stream Processing”, or “DSP”, shall mean the process of harvesting, recovery and
drying of Biomass.

2.39. “DSM” shall have the meaning set forth in the preamble.

2.40. “DSM Adult Application Customer” shall have the meaning set forth in Section 7.4(f).

2.41. “DSM Adult ARA Applications” shall have the meaning set forth in Section 7.4(f).

2.42. “DSM Adult ARA Products” shall have the meaning set forth in Section 7.4(f).

2.43. “DSM ARA Fields of Use” shall mean (i) any Feed Products and (ii) other uses of ARA that
are not for human oral consumption or for the purpose of providing ARA as a nutrient for humans.

2.44. “DSM ARA Field of Use Royalty” shall have the meaning set forth in Section 6.4.

2.45. “DSM Budgeted Volume” shall mean the volume of ARA Products that (i) DSM has forecasted,
pursuant to Section 3.6(a), as of November 30 of a Current Year, to require Martek Services on and
(ii) Martek has forecasted to perform Martek Services on and deliver to DSM in the Succeeding Year.

2.46. “DSM Confirmation Letter” shall mean DSM’s written confirmation to Martek of a Martek
Purchase Order.

2.47. “DSM Costs” shall mean the actual costs incurred by DSM in connection with the
production of ARA Products, including without limitation the DSM Fixed Cost per Unit of ARA and the
DSM Variable Cost per Unit of ARA, calculated in accordance with the accounting principles and
procedures set forth on Schedule 2.47.

2.48. “DSM Extraction Allocation” shall have the meaning set forth in Section 3.4(a).

2.49. “DSM Firm Order” shall have the meaning set forth in Section 3.6(a).

2.50. “DSM Fixed Cost” shall have the meaning set forth in Section 6.1.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

5

 

2.51. “DSM Gross Profits” shall have the meaning set forth in Section 9.4(c).

2.52. “DSM Improvement” shall have the meaning set forth in Section 7.4(d).

2.53. “DSM Mark Up” shall have the meaning set forth in Section 6.1.

2.54. “DSM Patents” shall mean (i) all the patents listed on Schedule 2.54 and all
corresponding patents worldwide, including any corresponding supplemental protection certificate,
substitution, renewal, division, continuation, continuation-in-part, inventors’ certificate,
reissue, reexamination, extension, patent of addition, and patent of incorporation, and all
counterparts thereof; and (ii) all patents that issue from applications listed on Schedule 2.54 or
that issue from any corresponding patent application worldwide, including any regional or national
phase application, regular or provisional application, as well as any continuation,
continuation-in-part, division and renewal thereof.

2.55. “DSM Proprietary Technology” shall mean, collectively, (i) all Know-how necessary for or
useful to the manufacture, processing or use of ARA Products, including, but not limited to, the
most efficient and effective fungal strains, and which Know-how is (a) as of the Effective Date of
the Alliance owned by DSM or any DSM Affiliate and set forth on Schedule 2.55, or (b) disclosed or
required to be disclosed to Martek pursuant to Section 7.4(d) immediately prior to the Restatement
Effective Date, and (ii) all DSM Patents.

2.56. “DSM Purchase Order” shall mean the purchase order issued every quarter by DSM to Martek
to confirm the amount indicated in a DSM Firm Order.

2.57. “DSM R&D Patents” shall have the meaning set forth in Section 7.2(b)(i).

2.58. “DSM RBD Services Allocation” shall have the meaning set forth in Section 3.4(b).

2.59. “DSM Shortfall” shall mean the difference between (X) the lesser of (a) the aggregate
amount of ARA Products requested in Martek Purchase Orders for delivery during a calendar quarter
and (b) * metric tons of 40% ARA (i.e., one Unit of ARA divided by 2.5) and (Y) the aggregate
amount of ARA Products actually delivered by DSM to Martek during such calendar quarter in response
to such Purchase Orders, but not less than zero.

2.60. “DSM Three Year Rolling Forecast” shall have the meaning set forth in Section 3.6(a).

2.61. “DSM Three Year Rolling Production Forecast” shall have the meaning set forth in Section
3.5(b).

2.62. “Effective Date of the Alliance” shall have the meaning specified in the Introduction.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

6

 

2.63. “Enforcing Party” shall have the meaning set forth in Section 7.3(b).

2.64. “Excluded Subject Matter” shall consist of the subject matter covered by (i) all the
patents listed on Schedule 2.64 and all corresponding patents worldwide, including any
corresponding supplemental protection certificate, substitution, renewal, division, continuation,
continuation-in-part, inventors’ certificate, reissue, reexamination, extension, patent of
addition, and patent of incorporation, and all counterparts thereof; and (ii) all patents that
issue from applications listed on Schedule 2.64 or that issue from any corresponding patent
application worldwide, including any regional or national phase application, regular or provisional
application, as well as any continuation, continuation-in-part, division and renewal thereof.
“Excluded Subject Matter” shall also include all improvements and know-how related to the patents
set forth in (i) and (ii) above.

2.65. “Extraction” shall mean the process of deriving Crude Oil from Biomass.

2.66. “EXW” shall have the meaning set forth in Incoterms 2000.

2.67. “FDA” shall mean the US Food and Drug Administration.

2.68. “Feed Products” shall mean any products (i) for the feeding, or otherwise provisioning
of nutrients, to non-human animals, including, but not limited to, mammals, fish, and birds and
(ii) not intended or marketed for the purpose of providing ARA as a nutrient for humans.

2.69. “Finished Oil” shall mean Crude Oil that has been refined, bleached and deodorized and
meets the Specifications set forth on Schedule 2.70.

2.70. “Finished Oil Specifications” shall mean the product specifications set forth in
Schedule 2.70.

2.71. “Fixed Costs” shall mean those costs that do not change directly in proportion to
changes in the number of Units of ARA produced and shall include, but not be limited to, the fixed
portions of labor, depreciation, project costs, the fixed portion of energy costs, insurance, local
taxes, site service allocations such as production staff, maintenance, purchasing, quality
assurance, and security services. Fixed Costs shall not include Variable Costs.

2.72. “FMV” shall have the meaning set forth in Section 7.2(b)(iv)(A).

2.73. “Force Majeure Event” shall have the meaning set forth in Section 10.13.

2.74. “Gross Profit” shall mean Net Sales less actual costs of goods of the ARA Products sold.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

7

 

2.75. “Gross Profits on Other ARA Applications” shall mean the combined Gross Profits realized
by DSM and Martek, from DSM’s manufacture of the ARA Products to Martek’s
sales to its customer, less the selling and transaction costs related to such sales, on the
sales of Units of ARA that are ultimately sold for use in Other ARA Applications.

2.76. “Growing Up Milk” shall mean nutritionally enhanced milk and soy milk-based products
intended for use by children from twelve (12) through thirty-six (36) months of age and older.

2.77. “Guaranty Agreement” shall mean an agreement in the form set forth on Schedule 2.77

2.78. “IBA Rules” shall have the meaning set forth in Section 10.5(a).

2.79. “ICC Rules” shall have the meaning set forth in Section 10.5(a).

2.80. “IP Notice” shall have the meaning set forth in Section 5.5(a).

2.81. “IP Notice Receipt Date” shall have the meaning set forth in Section 5.5(a).

2.82. “Improvements” shall have the meaning set forth in Section 7.4(d).

2.83. “Included ARA Products” shall have the meaning set forth in Section 5.5(a).

2.84. “Infant Formula Product” shall mean a human breast milk substitute formulated
industrially in accordance with applicable Codex Alimentarius and/or FDA standards or other
applicable regulatory bodies (a) to satisfy the total normal nutritional requirements of infants
from birth up to between four (4) and six (6) months of age and adapted to their physiological
characteristics or fed in addition to other foods to infants up to approximately one (1) year of
age and older or (b) to satisfy the total normal nutritional requirements of infants born
prematurely, as well as nutritional requirements of infants with special dietary needs.

2.85. “Infringed Party” shall have the meaning set forth in Section 9.2(a)(ii).

2.86. “Infringing Party” shall have the meaning set forth in Section 9.2(a)(i)(B).

2.87. “Intellectual Property” shall mean common law and statutory rights anywhere in the world
arising under or associated with (i) patents, patent applications and inventors’ certificates, (ii)
copyrights, copyright registrations and copyright applications, and “moral” rights, (iii) the
protection of trade and industrial secrets and confidential information, including business
information (such as contact and customer lists, telephone numbers and business plans) ideas,
formulas, compositions, inventions (whether patentable or unpatentable and whether or not reduced
to practice) (“Trade Secrets”), (iv) trademarks, trade names and service marks (“Trademarks”), (v)
other proprietary rights relating or with respect to the protection of technology, (vi) rights in
Internet domain names, URL and other internet-related properties, (vii) divisions, continuations,
renewals, reissuances and extensions of the foregoing
(as applicable) and (viii) analogous rights to those set forth above, including the right to
enforce and recover damages for the infringement or misappropriation of for any of the foregoing.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

8

 

2.88. “Joint Know-how” shall have the meaning set forth in Section 7.2(b)(ii).

2.89. “Joint Patents” shall have the meaning set forth in Section 7.2(b)(ii).

2.90. “Joint Proprietary Technology” shall mean, collectively, the Joint Patents and the Joint
Know-how.

2.91. “Jointly Funded ARA Research Project” shall have the meaning set forth in Section
7.1(c)(ii).

2.92. “Know-how” shall mean all know-how, Trade Secrets and technology (including, but not
limited to, manufacturing and production processes, formulations and techniques, research and
development information, methodology, drawings, specifications, designs, plans, proposals and
technical data) related to ARA.

2.93. “Know-how Records” shall have the meaning set forth in Section 7.5(c).

2.94. “Lead Party” shall have the meaning set forth in Section 7.3(a)(i).

2.95. “Leader” shall have the meaning set forth in Section 8.1.

2.96. “Liable Party” shall have the meaning set forth in Section 9.4(c).

2.97. “Losses” shall have the meaning set forth in Section 9.4(c).

2.98. “Manufacturing Party” shall have the meaning set forth in Section 4.4.

2.99. “Martek” shall have the meaning set forth in the preamble.

2.100. “Martek Allocation” shall have the meaning set forth in Section 3.1(b).

2.101. “Martek ARA Fields of Use” shall mean all ARA fields of use other than the DSM ARA
Fields of Use.

2.102. “Martek Budgeted Volume” shall mean the volume of ARA Products that (i) Martek has
forecasted, pursuant to Section 3.5(a), as of November 30 of a Current Year, to purchase from DSM
during the Succeeding Year and (ii) DSM has forecasted to produce and deliver to Martek in such
Succeeding Year.

2.103. “Martek Confirmation Letter” shall mean Martek’s written confirmation to DSM of a DSM
Purchase Order.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

9

 

2.104. “Martek Costs” shall mean, for each calendar year, those expenses of Martek related to
providing Martek Services to DSM and its Affiliates calculated in accordance with (i) the
accounting principles set forth on Schedule 2.104 and (ii) the process set forth in Article 6.

2.105. “Martek Expansion” shall have the meaning set forth in Section 3.3(c).

2.106. “Martek Firm Order” shall have the meaning set forth in Section 3.5(a).

2.107. “Martek Improvement” shall have the meaning set forth in Section 7.4(d).

2.108. “Martek Patents” shall mean (i) all the patents listed on Schedule 2.108 and all
corresponding patents worldwide, including any corresponding supplemental protection certificate,
substitution, renewal, division, continuation, continuation-in-part, inventors’ certificate,
reissue, reexamination, extension, patent of addition, and patent of incorporation, and all
counterparts thereof; and (ii) all patents that issue from applications listed on Schedule 2.108 or
that issue from any corresponding patent application worldwide, including any regional or national
phase application, regular or provisional application, as well as any continuation,
continuation-in-part, division and renewal thereof.

2.109. “Martek Proprietary Technology” shall mean, collectively, (i) all Know-how necessary
for or useful to the manufacture, processing or use of ARA Products and which Know-how is (a) as of
the Effective Date of the Alliance owned by Martek or any Martek Affiliate and set forth on
Schedule 2.109, or (b) disclosed or required to be disclosed hereunder to DSM pursuant to Section
7.4(d) immediately prior to the Restatement Effective Date including without limitation technology
for the Extraction and RBD processing steps contemplated in Section 3, and (ii) all Martek Patents.

2.110. “Martek Purchase Order” shall mean the purchase order issued every quarter to confirm
the amount indicated in a Martek Firm Order.

2.111. “Martek R&D Patents” shall have the meaning set forth in Section 7.2(b)(i).

2.112. “Martek Services” shall mean Extraction and/or RBD services performed hereunder by or
for Martek for DSM, as requested by DSM in a DSM Purchase Order.

2.113. “Martek Shortfall” shall mean the difference between the amount of Crude Oil or
Finished Oil, as applicable, requested in a DSM Purchase Order and the amount of Crude Oil or
Finished Oil, as applicable, actually delivered by Martek to DSM within fifteen (15) days of the
date on which delivery is required hereunder in response to that purchase order; in each case less
the balance, if any, of the DSM RBD Services Allocation or DSM Extraction Allocation, as
applicable.

2.114. “Martek Three Year Rolling Forecast” shall have the meaning set forth in Section
3.5(a).

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

10

 

2.115. “Martek Three Year Rolling Services Forecast” shall have the meaning set forth in
Section 3.6(b).

2.116. “Material Breach” shall have the meaning set forth in Section 9.2(b)(i)(A).

2.117. “Material Failure” shall have the meaning set forth in Section 9.2(b)(i)(A).

2.118. “Customers” shall mean the Martek customers with * as specified on Schedule 2.118.

2.119. “Nestec” shall mean Nestec Ltd., a corporation organized under the laws of Switzerland,
with offices at Avenue Nestle 55, CH 1800, Vevey, Switzerland.

2.120. “Net Revenues” shall mean the gross monies received from sublicensing the Joint
Proprietary Technology to a non-affiliated third party minus commissions, delivery costs, sales tax
and credits for refunds and returns directly related thereto.

2.121. “Net Sales” shall mean gross monies including royalties (except the Customer ARA
Production Royalty) received from sales of ARA Products minus commissions, delivery costs, sales
tax and credits for refunds and returns directly related to such sales.

2.122. “New ARA Product” shall have the meaning set forth in Section 3.1(d).

2.123. “New R&D Inventions” shall have the meaning set forth in Section 7.2(b).

2.124. “Non-Breaching Party” shall have the meaning set forth in Section 9.2(b)(i)(B).

2.125. “Notifying Party” shall have the meaning set forth in Section 5.5(a).

2.126. “Other ARA Applications” shall mean ARA Products that are ultimately sold for use in
the Martek ARA Fields of Use, other than for Infant Formula Products, Products for Babies and ARA
Applications for Adults.

2.127. “Other Materials” shall mean the list of items labeled “Other Materials” on Schedule
6.1-B.

2.128. “Out of Scope Customer” shall have the meaning set forth in Section 5.2.

2.129. “Patent Expenses” shall have the meaning set forth in Section 7.3(a)(i).

2.130. “Patent Proponent Party” shall have the meaning set forth in Section 7.3(a)(ii).

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

11

 

2.131. “Patent Protection Process” shall have the meaning set forth in Section 7.3(a)(i).

2.132. “Person” shall mean any individual, partnership, limited liability company, joint
venture, firm, corporation, association, business, trust, unincorporated organization or other
enterprise or form of organization and any governmental authority.

2.133. “PPI” shall mean the US Producer Price Index for code PC UOMFG for “all other
miscellaneous food manufacturing” (Series PCU 311999311999) as published by the Bureau of Labor
Statistics of the United States Department of Labor.

2.134. “Production Technology” shall mean any New R&D Inventions necessary for or useful to
the manufacture of ARA in any biomass.

2.135. “Products for Babies” shall mean any products specifically labeled and/or marketed for
babies, toddlers, infants and/or children up to three (3) years of age, other than Infant Formula
Products, but including Growing Up Milk.

2.136. “Profit Sharing Fee” shall have then meaning set forth in Section 6.1(g).

2.137. “R&D” shall mean research and development of or relating to ARA Products.

2.138. “R&D Collaboration Goals” shall have the meaning set forth in Section 7.1(a).

2.139. “R&D Committee” shall have the meaning set forth in Section 7.1(b).

2.140. “R&D Leader” shall have the meaning set forth in Section 7.1(b).

2.141. “R&D Plan” shall mean a summary of research and development work on ARA planned by each
party for the Succeeding Year.

2.142. “Raw Materials” shall mean * and other raw materials used in the production of ARA, but
shall not include *.

2.143. “RBD” shall mean the combined processes of refining, bleaching and deodorizing Crude
Oil.

2.144. “Recovered Amounts” shall have the meaning set forth in Section 6.3(a).

2.145. “Responding Party” shall have the meaning set forth in Section 5.5(a).

2.146. “Restated Agreement” shall have the meaning set forth in the preamble and shall include
the Schedules.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

12

 

2.147. “Restatement Effective Date” shall have the meaning set forth in the preamble.

2.148. “Returned Material” shall have the meaning set forth in Section 4.7(c).

2.149. “*” shall mean the use of products derived or sourced from ARA Products as a source of
* in *, but any consumer products using such * shall not (i) contain an ARA content greater than *
of the * of the end consumer product, (ii) be labeled as containing ARA or (iii) be intended to
provide ARA for *.

2.150. “Section 9.2(a) Material Breach” shall have the meaning set forth in Section
9.2(a)(i)(B).

2.151. “Signing Date” shall have the meaning specified in the preamble.

2.152. “Solely Funded ARA Research Project” shall have the meaning as set forth in Section
7.1(c)(i).

2.153. “Specifications” shall mean: (a) the product specifications for the respective ARA
Products, as set forth on Schedules 2.16, 2.28 and 2.70, as applicable, which shall be deemed in
all cases to require compliance with cGMPs, and the requirements for kosher certification by the
Orthodox Union and for Halal certification by the Islamic Food and Nutrition Council of America or
any other organization agreed upon by the parties for all of a party’s respective facilities and
the facilities of any subcontractor that are used to manufacture, produce and/or package any ARA
Products; (b) quality control methods and methods of analysis with respect to Biomass, Crude Oil,
and Finished Oil; and (c) other requirements and specifications for ARA Products as set forth in
this Restated Agreement, as amended from time to time by the Committee pursuant to Section 8,
taking into account customers’ requirements among other things, or otherwise by mutual written
agreement of the parties.

2.154. “Spent Biomass” shall mean the material remaining after Extraction (such as through the
use of hexane) has been completed.

2.155. “Spent Biomass Order” shall have the meaning set forth in Section 3.2(d).

2.156. “Sublicensable Technology” shall have the meaning set forth in Section 7.2(b)(iv).

2.157. “Sublicensing Notice” shall have the meaning set forth in Section 7.2(b)(iv).

2.158. “Sublicensing Requester” shall have the meaning set forth in Section 7.2(b)(iv).

2.159. “Succeeding Year” shall have the meaning set forth in Section 6.1.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

13

 

2.160. “Termination Notice” shall have the meaning set forth in 5.5(c).

2.161. “Testing Party” shall have the meaning set forth in Section 4.4.

2.162. “Third Party Toll Manufacturers” shall mean a third party toll manufacturer whose
business activity includes serving as a toll manufacturer and (A) on behalf of DSM, (i) ferments
ARA Products, (ii) performs RBD services using Martek Proprietary Technology, Martek Improvements
and/or Joint Proprietary Technology, or (iii) performs Extraction services using Martek Proprietary
Technology, Martek Improvements and/or Joint Proprietary Technology and (iv) whose entire output of
ARA Products, and/or ARA Products upon which RBD and/or Extraction services have been performed
using such technology, is purchased by DSM, or (B) on behalf of Martek, (i) ferments ARA Products
using DSM Proprietary Technology, DSM Improvements and/or Joint Proprietary Technology, (ii)
performs RBD services using DSM Proprietary Technology, DSM Improvements and/or Joint Proprietary
Technology, or (iii) performs Extraction services using DSM Proprietary Technology, DSM
Improvements and/or Joint Proprietary Technology and (iv) whose entire output of ARA Products,
and/or ARA Products upon which RBD and/or Extraction services have been performed, using such
technology is purchased by Martek.

2.163. “Transfer Procedures” shall have the meaning set forth in Section 8.4(a).

2.164. “Undepreciated * Costs” shall have the meaning set forth in Section 9.4(d)(iii).

2.165. “Undepreciated Pre-2004 Costs” shall have the meaning set forth in Section 9.4(d)(iii).

2.166. “Unit of ARA” shall mean that quantity of any ARA Product that contains one (1)
kilogram of pure ARA as determined by the applicable ARA Assay Procedure set forth in Schedule
2.12.

2.167. “Unit of DHA” shall mean that quantity of any product that contains one (1) kilogram of
pure DHA as determined by * or as otherwise mutually agreed by the parties.

2.168. “Usages” shall mean the quantity or amount of a specified Raw Material or utility that
is required to produce one Unit of ARA as specified in Schedule 6.1-A and Schedule 6.1-B.

2.169. “Variable Costs” shall mean those costs that change directly in proportion to changes
in the number of Units of ARA produced, and shall include, but not be limited to: raw and
intermediate materials, utilities, packaging, operations performed elsewhere, transportation, the
variable portion of waste and effluent disposal or treatment, and the variable portion of energy
costs. Variable Costs shall not include Fixed Costs.

2.170. “*” shall mean * having a * that are identified by mutual agreement between * pursuant
to that certain *.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

14

 

3. SUPPLY, PRODUCTION AND ORDERS

3.1. Martek Requirements for ARA Products.

(a) Martek and its Affiliates will have the right to produce an unlimited amount of ARA
Products directly or through one or more Third Party Toll Manufacturers, but their respective
ability to sell and/or use such ARA Products shall be limited to the extent expressly provided in
this Restated Agreement.

(b) Except as otherwise expressly set forth in Section 3.3, Martek agrees that neither it nor
any of its Affiliates shall sell, directly or indirectly, in any calendar year, a combined
aggregate quantity of ARA Products that contains more than forty thousand (40,000) Units of ARA, as
adjusted pursuant to Section 3.1(c) immediately below, that are derived from ARA Products other
than those that Martek has purchased from DSM pursuant to this Restated Agreement (the “Martek
Allocation”).

(c) In the event of a DSM Shortfall during any calendar year, the Martek Allocation for that
calendar year will be increased according to and subject to Section 3.3(b) during the calendar year
in which such DSM Shortfall has occurred by the number of Units of ARA necessary to meet such DSM
Shortfall and, unless otherwise provided in Section 3.3(b), the Martek Allocation will
automatically revert for the next calendar year to ARA Products containing forty thousand (40,000)
Units of ARA that are derived from ARA Products other than those that Martek has purchased from DSM
pursuant to this Restated Agreement.

(d) Except as otherwise expressly set forth in this Restated Agreement, Martek shall purchase
from DSM all of its requirements for ARA Products. Notwithstanding anything to the contrary
contained in this Restated Agreement, the parties agree that where (i) Martek has developed an ARA
Product wherein the ARA content is greater than * but no more than * of total fatty acids (a “New
ARA Product”), and (ii) the primary product in such New ARA Product is not ARA, the parties will
agree to negotiate in good faith the terms on which to permit Martek to sell such New ARA Product;
provided that such New ARA Product shall only be sold by Martek inside the Martek ARA Fields of Use
and the sale of Units of ARA contained in such New ARA Product shall be subject to the Profit
Sharing Fee set forth in Section 6.1(g) herein and such other terms as the parties may agree upon.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

15

 

3.2. DSM Production. 

(a) The parties acknowledge that DSM currently has fermentation and Down Stream Processing
production facilities in Capua, Italy and in Belvidere, New Jersey. In order to enable DSM to
lower its Fixed Costs and in exchange for DSM’s agreement herein to commit to Usages for certain
periods as provided in Section 6.1, DSM hereby agrees * ARA production for Martek * on or before *,
subject to the terms and conditions set forth herein including without limitation the payments to
be made pursuant to Section 6.13 hereof.

(b) DSM agrees that it will, itself or through one or more Third Party Toll Manufacturers,
produce ARA Products under this Restated Agreement using fermentation.
Subject to Section 3.3(a), Martek agrees that it will, itself or through one or more Third
Party Toll Manufacturers, perform RBD services for the ARA Products produced by DSM for both the
Martek ARA Fields of Use and the DSM ARA Fields of Use. DSM agrees that, except as otherwise
permitted in Section 3.4(b), neither it nor any of its Affiliates shall procure or accept any RBD
services with respect to ARA Products intended for sale from any Person other than Martek or its
Affiliates.

(c) Subject to Section 3.3(a) Martek agrees that it will, itself or through one or more Third
Party Toll Manufacturers, perform Extraction for the Biomass produced by DSM. DSM agrees that,
except as otherwise permitted in Section 3.4(a), neither it nor any of its Affiliates shall
perform, or have performed for it by any Person other than Martek or its Affiliates, directly or
indirectly, Extraction on any Biomass produced by DSM and intended for sale.

(d) Two (2) weeks before the beginning of each calendar quarter, DSM may place an order with
Martek for the amount (by weight or percent of total) of Spent Biomass (the “Spent Biomass Order”)
produced during such calendar quarter at Martek’s facilities and at Martek’s Third Party Toll
Manufacturers that DSM desires. For each calendar quarter for which Martek receives a Spent
Biomass Order from DSM, Martek shall transport to and store for DSM at Martek’s production
facilities an amount of Spent Biomass equal to the lesser of (i) the amount specified in such Spent
Biomass Order or (ii) the total aggregate amount of Spent Biomass that Martek and such Third Party
Toll Manufacturers produce during such quarter. DSM shall arrange for the Spent Biomass that is
the subject of a Spent Biomass Order to be removed from Martek’s premises no later than thirty (30)
days following the end of the related calendar quarter, otherwise Martek shall have the right to
dispose of such Spent Biomass. DSM shall pay all third party costs and shall reimburse Martek
within forty-five (45) days of receipt of invoice from Martek for all of its direct costs in
connection with the storage at and transportation from Martek’s production facilities of Spent
Biomass that is the subject of a Spent Biomass Order including but not limited to direct costs
related to salvaging Spent Biomass, but otherwise DSM shall not pay Martek or any Third Party Toll
Manufacturer for such Spent Biomass, and such storage and transportation costs shall not be
included in any calculation of the Agreed Price. It is understood and agreed that Martek shall
have the right to destroy or discard any Spent Biomass that is not the subject of a Spent Biomass
Order or that Martek in its sole discretion determines is hazardous to store.

(e) It is understood and agreed that DSM shall be entitled to utilize its * to produce ARA
Products to the extent necessary in order to avoid or redress a DSM Shortfall, which utilization
shall have no impact on the Agreed Price (i.e., no impact on the DSM Fixed Costs, Usages or DSM
Variable Costs), which Agreed Price and shipping costs shall in all cases be the same as if the
relevant ARA Products were produced *.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

16

 

3.3. Martek Production.

(a) Subject to Martek’s rights under Section 5.5(d), Martek shall be entitled to produce ARA
Products only at its own facility or at a Third Party Toll Manufacturer that shall be reasonably
acceptable to DSM taking into consideration all the facts and circumstances, including without
limitation DSM’s proprietary interests in any DSM Proprietary Technology, DSM Improvements and/or
Production Technology proposed by Martek to be used by such Third Party Toll Manufacturer as well
as DSM’s competitive relationship with the proposed Third Party Toll Manufacturer. Martek will
obtain written approval from DSM, not to be unreasonably withheld, prior to using the DSM
Proprietary Technology, DSM Improvements and/or Production Technology at such Third Party Toll
Manufacturer for the production of such ARA Products. Notwithstanding the foregoing DSM shall have
the right in its sole discretion to reject a proposed Third Party Toll Manufacturer based upon
DSM’s competitive relationship therewith or its good faith concern regarding DSM’s proprietary
interest in DSM Proprietary Technology, DSM Improvements and/or Production Technology if such
proposed Third Party Toll Manufacturer would perform work relating to the processing of Finished
Oil or equivalents thereof, provided that DSM itself performs the work that would otherwise be
performed by such rejected Third Party Toll Manufacturer or proposes an alternative Third Party
Toll Manufacturer reasonably acceptable to Martek to perform such work, in each case at a cost to
Martek substantially equivalent to the cost that Martek would incur if such work had been performed
by the rejected Third Party Toll Manufacturer. Upon DSM’s acceptance of any such Third Party Toll
Manufacturer, Martek shall take all reasonable measures to protect DSM’s proprietary interests in
the DSM Proprietary Technology, DSM Improvements and/or Production Technology while such DSM
Proprietary Technology, DSM Improvements and/or Production Technology are being used by such Third
Party Toll Manufacturer. Notwithstanding the foregoing, Martek shall, as soon as practicable,
discontinue using the DSM Proprietary Technology, DSM Improvements and/or Production Technology at
such Third Party Toll Manufacturer if at any time following discussions with DSM either Martek or
DSM reasonably determines that the continued use by such Third Party Toll Manufacturer of DSM
Proprietary Technology, DSM Improvements and/or Production Technology would be reasonably likely to
pose a threat to DSM’s proprietary interests in such DSM Proprietary Technology, DSM Improvements
and/or Production Technology; the party making such determination shall notify the other party
immediately upon making such determination and Martek shall give DSM all reasonable assistance in
connection with any efforts by DSM to protect DSM’s proprietary interests in such DSM Proprietary
Technology, DSM Improvements and/or Production Technology. In the event that Martek manufactures
such ARA Products at its own facilities or at any Third Party Toll Manufacturer solely for purposes
of responding to a DSM Shortfall using the DSM Proprietary Technology, DSM Improvements and/or
Production Technology, DSM will assist Martek at Martek’s request by providing reasonable ARA
manufacturing assistance to Martek and Martek shall reimburse DSM for DSM’s reasonable costs and
expenses incurred in connection with providing such assistance.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

17

 

(b) If DSM Shortfalls occur for * as a result of a Force Majeure Event or otherwise, or are
projected for the next succeeding * (based on DSM’s Three Year Rolling Production Forecast under
Section 3.5(b) and the Martek Three Year Rolling Forecast), the Martek Allocation shall be
increased by the number of Units of ARA necessary to meet such
DSM Shortfalls for the current calendar year and for subsequent calendar years until DSM
notifies Martek in good faith in writing that it is able to meet Martek’s then current Three Year
Rolling Forecast (the “Resume Notice Date”); provided, however, that if the Resume Notice Date is
prior to July 1st in the relevant calendar year, the Martek Allocation shall revert to
40,000 Units of ARA effective January 1 of the calendar year immediately following the year in
which the Resume Notice Date occurs, and if the Resume Notice Date is on or after July
1st in the relevant calendar year, the Martek Allocation for such year shall equal the
greater of (i) 40,000 Units of ARA and (ii) the number of Units of ARA manufactured, acquired or
committed to be acquired by Martek in reliance on the increased Martek Allocation during the
remainder of the calendar year during which the Resume Notice Date occurs (but not to exceed the
Units of ARA resulting from a DSM Shortfall(s)) and the Martek Allocation for the following
calendar year shall be equal to 40,000 Units of ARA plus the number of Units of ARA committed to be
acquired by Martek in reliance on the increased Martek Allocation during the portion of the six
month period following the Resume Notice Date that extends into such following calendar year, and
shall revert to 40,000 Units of ARA after the end of the calendar year following the calendar year
in which the Resume Notice Date occurs. Notwithstanding the foregoing, Martek will use its
commercially reasonable efforts to shorten any period before resuming purchases from DSM and shall
purchase as much ARA Products as is commercially reasonable from DSM during any period following
the Resume Notice Date.

It is understood and agreed between the parties hereto that, notwithstanding anything to the
contrary in this Restated Agreement, variations up to * between: i) the aggregate amount of ARA
Products requested in Martek Purchase Orders for delivery during a calendar quarter and ii) the
aggregate amount of ARA Products actually delivered by DSM to Martek during such calendar quarter
in response to such Martek Purchase Orders, to the extent resulting from (x) use of the preliminary
Biomass conversion factor (which factor is determined by the Committee), (y) variations of no more
than * in the exact date of delivery and/or (z) the use of the preliminary budget extraction factor
(which factor is determined by the Committee), shall not be considered in determining whether a DSM
Shortfall has occurred. If Martek determines in good faith that, prior to adjusting the delivered
amounts of ARA Product in any calendar quarter for deviations in quantities resulting from the
causes referred to above, a DSM Shortfall has occurred, then Martek will confirm the preliminary
amount of the alleged DSM Shortfall to DSM within thirty (30) days following the end of any such
calendar quarter within which the alleged DSM Shortfall occurred.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

18

 

Any unfilled portion of a Martek Purchase Order applicable to a quarter shall be reduced by
the increase in the Martek Allocation, if any, in the immediately following quarter.
Notwithstanding anything to the contrary in this Restated Agreement, for any Martek Purchase Order
that is confirmed by DSM pursuant to Section 3.5(c), but that is not completely filled by DSM
within ninety (90) days following the end of the calendar quarter within which delivery was
scheduled, the unfilled portion of such Martek Purchase Order shall no longer be deemed to be
subject to a binding Martek Purchase Order pursuant to Section 3.5 to the extent of such failure to
deliver, and DSM shall not be required to deliver, and Martek shall not be required to accept any
later delivery of, the unfilled portion of such Martek Purchase Order, unless otherwise
expressly agreed in writing by the parties. Delivery of ARA Products during the calendar
quarter immediately following the calendar quarter within which delivery of any unfilled portion of
a Martek Purchase Order was originally scheduled shall be considered delivery of such unfilled
portion of the Martek Purchase Order, before any such deliveries shall count against any Purchase
Orders calling for delivery subsequent to the Martek Purchase Order with respect to which there was
an unfilled portion. For clarity, the provisions of this paragraph shall not affect the Martek
Allocation determination provisions in the first paragraph of this Section 3.3(b).

(c) In the event (i) DSM Shortfalls are projected (based on DSM’s Three Year Rolling
Production Forecast and the Martek Three Year Rolling Forecast) or occur for * as a result of a
Force Majeure Event or otherwise, (ii) Martek has requested in writing that DSM expand its ARA
production capacities by a specified volume in excess of the capacity of * Units of ARA (which is
the agreed annual capacity * as of the Restatement Effective Date through December 31, 2014), (iii)
Martek has offered to guarantee to DSM that DSM would recoup its investment in so expanding its ARA
production capacities by such volume, through the DSM Mark Up received on purchase orders by Martek
for ARA Products over a period of * and (iv) DSM has not commenced construction to expand, within *
of Martek’s written request (or such longer period as the parties may agree), its ARA production
capacities by at least the specified volume or if DSM fails to proceed with diligence in such
expansion or fails to complete such expansion within * of such commencement, then Martek
shall be entitled to expand its ARA production capacity and/or subcontract production of ARA
Products to one or more third parties by the specified volume (the “Martek Expansion”), provided
that Martek provides DSM with written notice prior to commencing construction and commences
construction of such expansion or enters into a subcontracting arrangement within * of its written
request as referred to under (ii) herein and, in the case of expansion activities, pursues them to
completion with diligence and completes such expansion within * of such commencement.

(d) Any Martek Expansion shall permanently add to the Martek Allocation unless there is a
Capacity Dispute related to such Martek Expansion. If a Capacity Dispute occurs the parties shall
attempt, in good faith, to agree upon the amount of the DSM Shortfall expected pursuant to Section
3.3(c). If the parties reach agreement upon the amount of such DSM Shortfall and Martek proceeds
with a Martek Expansion pursuant to Section 3.3(c), the then current Martek Allocation shall be
permanently increased by the amount of such DSM Shortfall. If the parties cannot resolve the
Capacity Dispute, the parties shall proceed to arbitration pursuant to Section 10.5 and the
arbitrators shall determine whether, pursuant to Section 3.3(c), a DSM Shortfall is projected, and
the extent of such DSM Shortfall. In making such determination, the arbitrators shall only consider
the facilities dedicated to ARA production, technology, processes, formulas, and expertise that
were in existence at the time the Capacity Dispute first arose and the technology, processes and
formulas that were reasonably contemplated and known by the Committee at the time of the Capacity
Dispute. The Martek Allocation shall be permanently increased by the amount of the DSM Shortfall as
so determined by the arbitrators.

(e) In the event that after such a Martek Expansion, Martek’s demand for ARA Products
decreases resulting in a decrease of required production capacity, such decrease shall be shared
pro rata by the parties.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

19

 

3.4. Extraction and RBD Services.

(a) The parties agree that DSM and its Affiliates will have the right, either directly or
through one or more Third Party Toll Manufacturers, to perform Extraction of Biomass to produce an
unlimited amount of Crude Oil, but their respective ability to sell and/or use ARA Products
resulting therefrom shall be limited to the extent expressly provided in this Restated Agreement.
Except as expressly set forth below, DSM agrees that in any calendar year neither it nor its
Affiliates shall sell, directly or indirectly, a combined aggregate quantity of ARA Products into
any DSM ARA Fields of Use and/or any DSM Adult ARA Applications that contain more than the greater
of (i) forty thousand (40,000) Units of ARA and (ii) the Crude Oil requirements for the DSM ARA
Fields of Use (the “DSM Extraction Allocation”) as adjusted pursuant to this Section 3.4(a), that
are not derived from ARA Products on which Martek performed Extraction services pursuant to this
Restated Agreement. In the event of a Martek Shortfall during any calendar year relating to
Martek’s provision of Extraction services to DSM, the DSM Extraction Allocation for the calendar
year in which such Martek Shortfall has occurred shall be increased by the number of Units of ARA
necessary to meet such Martek Shortfall, and the DSM Extraction Allocation will automatically
revert for the next calendar year to an amount of Crude Oil equal to the greater of (i) forty
thousand (40,000) Units of ARA and (ii) the Crude Oil requirements for the DSM ARA Fields of Use.
In the event Martek Shortfalls relating to Martek’s provision of Extraction services to DSM occur
for * as a result of a Force Majeure Event or otherwise or are projected for the next succeeding *
based on Martek’s Three Year Rolling Services Forecast under Section 3.6(b) and the DSM Three Year
Rolling Forecast for Extraction services under Section 3.6(a), the DSM Extraction Allocation shall
be increased accordingly until such time that is * following the date that Martek notifies DSM in
good faith in writing that it is able to meet DSM’s then current Three Year Rolling Forecast for
Extraction services. DSM will use its commercially reasonable efforts to shorten such * period and
purchase as much Extraction services as commercially reasonable from Martek during such period. In
the event of a Martek Shortfall and upon DSM’s written request, Martek shall return to DSM the
portion of ARA Products delivered by DSM pursuant to Section 3.8(b) on which Martek has not yet
performed Extraction services.

(b) DSM and its Affiliates will have the right, either directly or through one or more Third
Party Toll Manufacturers, to perform RBD services on an unlimited amount of Crude Oil but their
respective ability to sell and/or use ARA Products resulting therefrom shall be limited to the
extent expressly provided in this Restated Agreement. Except as expressly set forth below, DSM
agrees that in any calendar year neither it nor its Affiliates shall sell, directly or indirectly,
a combined aggregate quantity of ARA Products into any DSM ARA Field of Use and/or any DSM Adult
ARA Applications that contain more than the greater of (i) forty thousand (40,000) Units of ARA and
(ii) the Finished Oil requirements for the DSM ARA Fields of Use (the

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

20

 

“DSM RBD Services
Allocation”) as adjusted pursuant to this Section 3.4(b), that are not derived from ARA Products on which Martek performed RBD services pursuant to this Restated
Agreement. In the event of a Martek Shortfall during any calendar year relating to Martek’s
provision of RBD services to DSM, the DSM RBD Services Allocation for the calendar year in which
such Martek Shortfall has occurred shall be increased by the number of Units of ARA necessary to
meet such Martek Shortfall and, unless otherwise provided below, the DSM RBD Services Allocation
will automatically revert for the next calendar year to an amount of Finished Oil equal to the
greater of (i) forty thousand (40,000) Units of ARA and (ii) the Finished Oil requirements for the
DSM ARA Fields of Use. In the event Martek Shortfalls relating to Martek’s provision of RBD
services to DSM occur for * as a result of a Force Majeure Event or otherwise, or are projected for
the next succeeding * based on Martek’s Three Year Rolling Services Forecast under Section 3.6(b)
and the DSM Three Year Rolling Forecast under Section 3.6(a) for RBD services, the DSM RBD Services
Allocation shall be increased by the number of Units of ARA necessary to meet such Martek
Shortfalls for the current calendar year and for subsequent calendar years until Martek notifies
DSM in good faith in writing that it is able to meet DSM’s then current Three Year Rolling Forecast
for RBD services (the “RBD Resume Notice Date”); provided, however, that if the RBD Resume Notice
Date is prior to July 1st in the relevant calendar year, the DSM Allocation shall revert
to 40,000 Units of ARA effective January 1 of the calendar year immediately following the year in
which the RBD Resume Notice Date occurs, and if the RBD Resume Notice Date is on or after July
1st in the relevant calendar year, the DSM RBD Services Allocation for such year shall
equal the greater of (i) 40,000 Units of ARA and (ii) the number of Units of ARA that DSM has
completed (or committed to have completed) RBD services Martek in reliance on the increased DSM RBD
Services Allocation during the remainder of the calendar year during which the RBD Resume Notice
Date occurs (but not to exceed the Units of ARA resulting from a Martek Shortfall(s)) and the DSM
RBD Services Allocation for the following calendar year shall be equal to 40,000 Units of ARA plus
the number of Units of ARA that DSM has completed (or committed to have completed) RBD services in
reliance on the increased DSM RBD Services Allocation during the portion of the six month period
following the RBD Resume Notice Date that extends into such following calendar year, and shall
revert to 40,000 Units of ARA after the end of the calendar year following the calendar year in
which the RBD Resume Notice Date occurs. Notwithstanding the foregoing, DSM will use its
commercially reasonable efforts to shorten any period before resuming purchases from Martek and
shall purchase as much RBD services as is commercially reasonable from Martek during any period
following the RBD Resume Notice Date. In the event of a Martek Shortfall and upon DSM’s written
request, Martek shall return to DSM the portion of ARA Products delivered by DSM pursuant to
Section 3.8(b) on which Martek has not yet performed RBD services.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

21

 

(c) Subject to DSM’s rights under Section 5.5(d), DSM shall be entitled to perform RBD
services only at its own facility or at a Third Party Toll Manufacturer that shall be reasonably
acceptable to Martek taking into consideration all the facts and circumstances, including without
limitation Martek’s proprietary interests in the Martek Proprietary Technology, Martek Improvements
and/or Production Technology proposed by DSM to be used by such Third Party Toll Manufacturer as
well as Martek’s competitive relationship with such proposed Third Party Toll Manufacturer. DSM
will obtain written approval from Martek, not to
be unreasonably withheld, prior to using the Martek Proprietary Technology, Martek
Improvements and/or Production Technology at such Third Party Toll Manufacturer for the performance
of such RBD services. Notwithstanding the foregoing Martek shall have the right in its sole
discretion to reject a proposed Third Party Toll Manufacturer based upon Martek’s competitive
relationship therewith or its good faith concern regarding Martek’s proprietary interest in Martek
Proprietary Technology, Martek Improvements and/or Production Technology if such proposed Third
Party Toll Manufacturer would perform work relating to the processing of Finished Oil or
equivalents thereof, provided that Martek itself performs the work that would otherwise be
performed by such rejected Third Party Toll Manufacturer or proposes an alternative Third Party
Toll Manufacturer reasonably acceptable to DSM to perform such work, in each case at a cost to DSM
substantially equivalent to the cost that DSM would incur if such work had been performed by the
rejected Third Party Toll Manufacturer. Upon Martek’s acceptance of any such Third Party Toll
Manufacturer, DSM shall take all reasonable measures to protect Martek’s proprietary interests in
the Martek Proprietary Technology, Martek Improvements and/or Production Technology while such
Martek Proprietary Technology, Martek Improvements and/or Production Technology are being used by
such Third Party Toll Manufacturer. Notwithstanding the foregoing, DSM shall, as soon as
practicable, discontinue using the Martek Proprietary Technology, Martek Improvements and/or
Production Technology at such Third Party Toll Manufacturer if at any time following discussions
with Martek either Martek or DSM reasonably determines that the continued use by such Third Party
Toll Manufacturer of such Martek Proprietary Technology, Martek Improvements and/or Production
Technology would be reasonably likely to pose a threat to Martek’s proprietary interests in such
Martek Proprietary Technology, Martek Improvements and/or Production Technology; the party making
such determination shall notify the other party immediately upon making such determination and DSM
shall give Martek all reasonable assistance in connection with any efforts by Martek to protect
Martek’s proprietary interests in such Martek Proprietary Technology, Martek Improvements and/or
Production Technology. In the event that DSM performs such RBD Services at its own facilities, or
at any Third Party Toll Manufacturer solely for purposes of responding to a Martek Shortfall using
the Martek Proprietary Technology, Martek Improvements and/or Production Technology, Martek will
assist DSM at DSM’s request by providing reasonable ARA manufacturing assistance to DSM and DSM
shall reimburse Martek for Martek’s reasonable costs and expenses incurred in connection with
providing such assistance.

(d) The parties agree that at any time during the term of this Restated Agreement DSM shall
have the right to create and use a “DSM Expansion” in connection with the provision of RBD services
and Extraction on terms and conditions, mutatis mutandis, as those set forth in
Section 3.3(c) and (d) applicable to a Martek Expansion.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

22

 

3.5. Martek Three Year Rolling Forecasts; Martek Firm Orders.

(a) Two months prior to the first day of each calendar quarter, Martek will submit to DSM a
good faith forecast of Martek’s demand of ARA Products, broken down by ARA Product, for each of the
following twelve (12) quarters (each, a “Martek Three Year
Rolling Forecast”), which shall include (i) a firm order by Martek of ARA Products, broken
down by ARA Product, for each month during the first calendar quarter covered by such Martek Three
Year Rolling Forecast (a “Martek Firm Order”) and (ii) Martek’s good faith estimate of Martek’s
demand for ARA Products, broken down by ARA Product, for each of the following eleven (11) quarters
covered by such Martek Three Year Rolling Forecast.

(b) One month prior to the first day of each calendar quarter, DSM will submit to Martek a
good faith forecast of DSM’s production capabilities of ARA Products, broken down by ARA Product,
for each of the following twelve (12) quarters (“DSM Three Year Rolling Production Forecast”).

(c) No later than two (2) weeks prior to the first day of each calendar quarter, Martek shall
issue a Martek Purchase Order to DSM for ARA Products for that quarter that shall be no less than
the amount indicated in the related Martek Firm Order. Each Martek Purchase Order shall include
delivery instructions that satisfy the requirements of Section 3.7. No later than one (1) week
prior to the first day of each calendar quarter, DSM will issue a DSM Confirmation Letter to Martek
indicating the extent to which DSM accepts such Martek Purchase Order.

(d) DSM shall use its good faith efforts to deliver the amount of ARA Products ordered in a
Martek Purchase Order and shall be entitled to deliver up to an additional ten percent (10%) of
such amount so ordered, provided that the amount delivered by DSM in the next succeeding calendar
quarter pursuant to a Martek Purchase Order for that quarter shall be reduced by such additional
amount, unless otherwise requested by Martek. In the event that Martek’s demand for ARA Products
substantially and persistently exceeds the Martek Three Year Rolling Forecast the parties shall use
their commercially reasonable efforts to make arrangements to meet such extra demand.

(e) It is understood and agreed that, in the event that Martek shall issue a Martek Purchase
Order for ARA Products in an amount greater than that set forth in the related Martek Firm Order,
DSM shall have the right, but not the obligation, to accept such Martek Purchase Order to the
extent of such greater amount.

(f) The parties acknowledge that Martek’s orders and forecasts for ARA Products set forth in
this Section 3.5 shall not include those ARA Products upon which DSM requests Martek to perform
Martek Services pursuant to Section 3.6.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

23

 

3.6. DSM Three Year Rolling Forecast; DSM Firm Orders.

(a) Two months prior to the first day of each calendar quarter, DSM will submit to Martek a
good faith forecast of DSM’s demand for Martek Services, broken down by Extraction and RBD
Services, for each of the following twelve (12) quarters (each, a “DSM Three Year Rolling
Forecast”), which shall include (i) a firm order by DSM for Martek Services, broken down by
Extraction and RBD Services, for each month during the first calendar quarter
covered by such DSM Three Year Rolling Forecast (a “DSM Firm Order”) and (ii) DSM’s good faith
estimate of DSM’s demand for Martek Services, broken down by Extraction and RBD Services, for each
of the following eleven (11) quarters covered by such DSM Three Year Rolling Forecast.

(b) One month prior to the first day of each calendar quarter, Martek will submit to DSM a
good faith forecast of Martek Services capabilities, broken down by Extraction and RBD Services,
for each of the following twelve (12) quarters (“Martek Three Year Rolling Services Forecast”).

(c) No later than two (2) weeks prior to the first day of each calendar quarter, DSM shall
issue a DSM Purchase Order to Martek for Martek Services, broken down by Extraction and/or RBD
Services, for that quarter that shall be no less than the amount indicated in the related DSM Firm
Order. Each DSM Purchase Order shall include delivery instructions that satisfy the requirements
of Section 3.7. No later than one (1) week prior to the first day of each calendar quarter, Martek
will issue a Martek Confirmation Letter to DSM indicating the extent to which Martek accepts such
DSM Purchase Order.

(d) Martek shall use its good faith efforts to perform the Martek Services ordered in a DSM
Purchase Order and to deliver the resulting ARA Products to DSM no later than thirty (30) days
after delivery by DSM to Martek of the ARA Products upon which Martek will perform the Martek
Services.

(e) It is understood and agreed that, in the event that DSM shall issue a DSM Purchase Order
for Martek Services in an amount greater than that set forth in the related DSM Firm Order, Martek
shall have the right, but not the obligation, to accept such DSM Purchase Order to the extent of
such greater amount.

3.7. Delivery Instructions. 

(a) Martek shall submit delivery instructions to DSM for all quantities of ARA Products
subject to Martek Purchase Orders placed in accordance with Section 3.5. Such delivery
instructions shall be included in the Martek Purchase Orders and shall identify (i) the quantity of
ARA Products required, (ii) the required delivery date, (iii) the address to which the shipment
shall be delivered, and (iv) any other applicable shipping instructions.

(b) DSM shall submit delivery instructions to Martek for all quantities of ARA Products that
are to be produced through the Martek Services and subject to a DSM Purchase Order placed in
accordance with Section 3.6. Such delivery instructions shall be included in the DSM Purchase
Orders and shall identify (i) the quantity of ARA Products to be produced through Martek Services,
(ii) the required delivery date, (iii) the address to which the shipment shall be delivered, and
(iv) any other applicable shipping instructions.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

24

 

3.8. Shipment.

(a) Subject to the provisions of Sections 3.5(c) and 3.5(d), during a month, DSM shall deliver
quantities of ARA Products covered by the Martek Purchase Order for the month on the later of (i)
the last business day of the month or (ii) ten (10) days after receipt of delivery instructions
from Martek. All such shipments shall be EXW, DSM’s (or DSM’s Third Party Toll Manufacturer’s)
facility. For purposes hereof, each order shall be deemed to have been “delivered”, and risk of
loss with respect to each such shipment shall pass from DSM to Martek, upon DSM making the shipment
available at DSM’s (or DSM’s Third Party Toll Manufacturer’s) facility to a carrier agreed upon by
the Committee for transport to the location specified in the Martek Purchase Order, and Martek
shall have the right to insure such shipment from and after such delivery. Notwithstanding the
foregoing, DSM shall retain title to all shipments of ARA Products covered by the Martek Purchase
Order until payment is received, whereupon title shall pass to Martek.

(b) In addition, DSM shall deliver to Martek additional quantities of ARA Products sufficient
for Martek to perform the Martek Services requested by DSM pursuant to a DSM Purchase Order and all
such quantities delivered shall be clearly identified by DSM and distinguished from ARA Products
delivered pursuant to Section 3.8(a). The roundtrip shipment cost of all such shipments shall be
borne by DSM. For purposes hereof, each order shall be deemed to have been “delivered”, and risk of
loss with respect to each such shipment shall pass from DSM to Martek upon delivery to Martek at
Martek’s facility by a carrier agreed upon by the Committee for transport to the location specified
in the DSM Purchase Order, and shall pass back to DSM upon delivery of the ARA Products to such
carrier at Martek’s facility following the performance by Martek of the Martek Services thereon.
DSM shall at all times retain title to all ARA Products that are provided for purposes of Martek
performing Martek Services.

(c) Subject to the provisions of Sections 3.6(c) and 3.6(d), during a month, Martek shall
deliver quantities of ARA Products covered by the DSM Purchase Order for the month on the later of
(i) the last business day of the month or (ii) ten (10) days after receipt of delivery instructions
from DSM. All orders shall be shipped EXW, Martek’s (or Martek’s Third Party Toll Manufacturer’s)
facility. For purposes hereof, each order shall be deemed to have been “delivered”, and risk of
loss with respect to each shipment shall pass from Martek to DSM upon Martek making the shipment
available at Martek’s (or Martek’s Third Party Toll Manufacturer’s) facility to a carrier agreed
upon by the Committee for transport to the location specified in the DSM Purchase Order, and DSM
shall have the right to insure such shipment from and after such delivery.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

25

 

3.9. Order Fulfillment.

(a) DSM shall be responsible for, and shall retain the authority to exercise its own
discretion, in planning and arranging for supplies of ARA Products from any Third Party Toll
Manufacturers to fulfill DSM’s supply obligations to Martek hereunder. In such cases where
Production Technology is intended to be used by a Third Party Toll Manufacturer, DSM will obtain
Committee approval before proceeding.

(b) Subject to Section 3.3(a), Martek shall be responsible for, and shall retain the authority
to exercise its own discretion for, the performance of any Martek Services by any Third Party Toll
Manufacturers to fulfill Martek’s Service obligations to DSM hereunder.

3.10. Limitation on Breach.

(a) The parties understand and agree that, despite Martek’s commercially reasonable efforts to
provide accurate forecasts for its subsequent orders of ARA Products and DSM’s commercially
reasonable efforts to ensure that a sufficient amount of ARA Products are produced based on such
forecasts and orders, it is likely that at times the demand by Martek for ARA Products from DSM may
exceed the ability of DSM to supply such ARA Products. Martek and DSM hereby agree that DSM will
not be in breach of this Restated Agreement if, despite its good faith efforts, DSM fails from time
to time to deliver the quantity of ARA Products ordered by Martek; provided that DSM is operating
its facilities at or near production capacity at such time and delivers to Martek substantially all
of the ARA Products that DSM produces at such time, subject to the provisions of Section 5.3.

(b) The parties understand and agree that, despite DSM’s commercially reasonable efforts to
provide accurate forecasts for its subsequent orders for Martek Services and Martek’s commercially
reasonable efforts to ensure that it meets the demand for Martek Services based on such forecasts
and orders, it is likely that at times the demand by DSM for Martek Services may exceed the ability
of Martek to supply such Martek Services. Martek and DSM hereby agree that Martek will not be in
breach of this Restated Agreement if, despite its good faith efforts, Martek fails from time to
time to perform the Martek Services ordered by DSM; provided that Martek is operating its
facilities at production capacity or near production capacity at such time.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

26

 

4. QUALITY AND VERIFICATION

4.1. Verification of Production.

The parties shall perform ring testing procedures as agreed upon by the Committee to confirm
the accuracy of any relevant quality control assay procedure (including without limitation the ARA
Assay Procedure).

4.2. Certification of Analysis.

(a) For each DSM shipment of ARA Products ordered by Martek and delivered by DSM pursuant to
Section 3.8(a) or Section 3.8(b), DSM shall furnish to Martek within twenty-four (24) days after
shipment a certificate of analysis in the form attached hereto as Schedule 4.2(a) and signed by
DSM’s relevant QA/QC officer, which certifies the actual content of those components of the ARA
Products that are identified in the Specifications, as applicable.

(i) If DSM does not furnish the signed certificate of analysis within
twenty-four (24) days after shipment of ARA Products ordered by Martek pursuant to a
Martek Purchase Order, the amount of such shipment for which no signed certificate
of analysis was delivered shall to the extent that such amount brings the total of
the shipment below what has been set forth in the Martek Purchase Order be
immediately deemed to be a DSM Shortfall for the calendar year and the Martek
Allocation shall be increased accordingly in accordance with the provisions of
Sections 3.1(b) and 3.3. If Martek determines such shipment to be acceptable after
such twenty-four (24) day period, the Martek Allocation shall be automatically
reduced by the lesser of (i) the amount by which the Martek Allocation was increased
in respect of such shipment or (ii) the difference between the then current Martek
Allocation for such calendar year and the total number of Units of ARA that Martek
and its Affiliates have sold during such calendar year that were not derived from
ARA Products purchased from DSM. In the event DSM provides Martek with a draft or
unsigned version of a certificate of analysis to facilitate Martek’s determination
of whether or not it will accept or reject the related shipment, Martek shall
promptly consult with DSM and make such determination.

(ii) If DSM does not furnish the signed certificate of analysis within
twenty-four (24) days after shipment of ARA Products delivered by DSM pursuant to
Section 3.8(b), Martek may delay its performance of the Martek Services until the
applicable certificate of analysis is furnished.

(b) For each Martek shipment of ARA Products produced by the Martek Services, Martek shall
furnish to DSM within fourteen (14) days after shipment a certificate of analysis in the form
attached hereto as Schedule 4.2(b) and signed by Martek’s relevant QA/QC officer, which certifies
the actual content of those components of the ARA Products that are identified in the
Specifications, as applicable. If Martek does not furnish the signed certificate of analysis
within fourteen (14) days after shipment of such ARA Products, the amount of such shipment shall be
immediately deemed to be a Martek Shortfall for the calendar year and the DSM RBD Services
Allocation and/or DSM Extraction Allocation, as applicable, shall be increased accordingly in
accordance with the provisions of Section 3.4. If DSM determines such shipment to be acceptable
after such fourteen (14) day period, the DSM RBD Services Allocation and/or DSM Extraction
Allocation, as applicable, shall be automatically reduced by the lesser of (i) the amount by which
the DSM RBD Services Allocation and/or DSM Extraction Allocation, as applicable, was increased in
respect of such shipment or (ii) the difference between the then current DSM RBD Services
Allocation and/or DSM Extraction Allocation, as applicable, for such calendar year and the total
number of Units of ARA that are in ARA Products on which DSM and its Affiliates have performed RBD
and/or Extraction services, as applicable, during such calendar year. In the event Martek provides
DSM with a draft or unsigned version of a certificate of analysis to facilitate DSM’s determination
of whether or not it will accept or reject the related shipment, DSM shall promptly consult with
Martek and make a determination of whether to accept such shipment.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

27

 

(c) DSM shall not be liable to Martek if Martek begins to process or delivers to a customer
any ARA Products before Martek has received a signed certificate of analysis from DSM; provided
however, notwithstanding Section 4.2(a) DSM shall be entitled to request Martek to perform Martek
Services on ARA Products prior to receipt by Martek of the related signed certificate of analysis,
in which event if Martek performs such Martek Services on such ARA Products then DSM shall assume
liability to the extent the ARA Products do not conform to the related Specifications. DSM shall
be under no obligation to replace, or to refund to Martek the purchase price of, any ARA Products
if Martek has so processed or sold such ARA Product to a customer before Martek has received a
signed certificate of analysis from DSM. In addition, Martek shall indemnify, defend and hold
harmless DSM, its Affiliates and their respective directors, officers, employees and agents from
and against all actions, proceedings, costs, damages and claims (each, a “Claim”), including
reasonable counsel fees, that may be asserted against or incurred or suffered by any such Person
arising out of or relating to (i) any action taken by Martek with respect to any ARA Products
before Martek has received such a certificate of analysis from DSM, including without limitation
processing or delivery to a customer of ARA Products, whether such Claim is based upon a theory of
negligence, strict liability or otherwise or (ii) the sale or use by Martek of any ARA Products for
any application other than animal or human nutrition.

(d) Martek shall not be liable to DSM if DSM delivers to a customer any ARA Products upon
which Martek performed Martek Services before DSM has received a signed certificate of analysis
from Martek. Martek shall be under no obligation to replace, or to refund to DSM the cost of
Martek Services associated with the production of any ARA Products if DSM has so sold such ARA
Products to a customer before DSM has received a signed certificate of analysis from Martek. In
addition, DSM shall indemnify, defend and hold harmless Martek, its Affiliates and their respective
directors, officers, employees and agents from and against all Claims, including reasonable counsel
fees, that may be asserted against or incurred or suffered by any such Person arising out of or
relating to (i) any action taken by DSM with respect to any ARA Products upon which Martek
performed Martek Services before DSM has received such a certificate of analysis from Martek,
including without limitation delivery to a customer of such ARA Products, whether such Claim is
based upon a theory of negligence, strict liability or otherwise or (ii) the sale or use by DSM of
any ARA Products for any application other than animal or human nutrition.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

28

 

4.3. Refined Biomass Specification; Specification Changes.

(a) The parties agree that promptly following the Restatement Effective Date, Martek and DSM
will undertake an analysis of historical data relating to Biomass and Finished Oil in order to
enable the parties to add to or edit the parameters, limits, ranges and/or methods as appropriate
to refine the Biomass Specifications in the form attached hereto as Schedule 2.16 so that they more
closely define the composition of Biomass actually received by Martek from DSM that has satisfied
all quality testing and analysis, produced Finished Oil meeting the Finished Oil Specifications and
that meets all regulatory and customer requirements, including those relating to analytical,
sensory and stability requirements of Finished Oil (the “Refined
Biomass Specifications”). Following the completion of the foregoing, which is expected to
take up to approximately *, Martek, in consultation with DSM, will define and deliver to the
Committee the proposed Refined Biomass Specifications. The Committee shall have thirty (30) days
thereafter during which it may accept the proposed Refined Biomass Specifications as final or agree
on changes necessary to finalize the Refined Biomass Specifications. If the Committee fails to
accept or to reach agreement on final Refined Biomass Specifications within such thirty (30) day
period, the disagreement will be deemed to be a Disputed Fact and will be resolved according to the
provisions set forth in Section 8.6(a). The final Refined Biomass Specifications will not be
considered a Specification change pursuant to Section 4.3(b) unless they include changes that
require adjustments to DSM’s then current manufacturing process, in which case the Committee shall
determine the impact that DSM’s adherence to the Refined Biomass Specifications will have on the
Agreed Price, the Martek Cost and delivery dates applicable to ARA Products produced in accordance
with the Refined Biomass Specifications. The final Refined Biomass Specifications that are accepted
and/or agreed to in accordance with the foregoing provisions shall replace the Specifications
currently attached as Schedule 2.16 and serve as the Specifications for Biomass for the remaining
term of this Restated Agreement, subject to any changes made pursuant to the process described in
Sections 4.3(b) and 4.4. If applicable, the form of certificate of analysis for Biomass shall be
updated to be consistent with the Refined Biomass Specifications and shall replace the certificate
of analysis form attached at Schedule 4.2(a).

(b) The parties acknowledge and agree that the Specifications may be subject to change from
time to time. Martek and DSM shall bring any required or requested changes to the Specifications
to the attention of the Committee in writing as soon as reasonably practicable. The Committee
shall have the authority to approve or reject any such changes, it being understood and agreed that
all changes that are reasonable in nature to make, taking into account all the facts and
circumstances, shall be approved by the Committee. Upon written approval by the Committee of any
such required or requested changes, the Committee shall then determine the terms, including the
Agreed Price and/or the Martek Cost, and delivery dates, applicable to ARA Products which will meet
the proposed Specification changes. In the event such changes to the Specifications are expected
to materially affect the Usages, the Committee shall agree in advance on any impact on the Usages
component of the Agreed Price. Each of Martek and DSM agrees to use its commercially reasonable
efforts to accommodate any requested changes at reasonable costs. Upon agreement by the Committee
on such terms Martek or DSM, as the case may be, shall implement the necessary adjustments in
accordance therewith, and, in the case of a change in Specifications, the parties shall follow the
procedure set forth in Section 4.4 for verifying that quantities of ARA Product produced satisfy
such changed Specifications.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

29

 

4.4. Ongoing Biomass Quality Review; Verification of Production Changes.

(a) To enable the parties to more rapidly review the quality of Biomass, the parties will, in
accordance with Section 7.1(c), undertake a Jointly Funded ARA Research Project to develop a
laboratory scale Extraction and RBD process. The parties agree to regularly share manufacturing
data and other relevant information regarding the ARA Product so as to identify and communicate any
trends in the data that have the potential to cause the Biomass Specifications or the Finished Oil
Specifications not to be met. When such trends are identified, the parties agree to work together
in good faith to identify any changes in the manufacturing procedures that might be warranted, the
implementation of which shall comply with the provisions of Section 4.3 and 4.4 (Specification) and
Section 4.6 (Manufacturing), as applicable.

(b) In the event that the Committee approves a change to the Specifications pursuant to
Section 4.3(b), the party whose ARA Product specifications have changed (the “Manufacturing Party”)
shall deliver to the other party (the “Testing Party”) a quantity of ARA Product prepared to
satisfy the changed Specifications. Such delivery shall be made in accordance with a schedule and
in quantities and on terms determined by the Committee, which quantities shall be sufficient in all
cases to enable the Testing Party to verify that the quantities of ARA Product provided satisfy the
applicable changed Specifications. The Testing Party shall thereupon subject the delivered
quantities of ARA Product to the testing and analysis procedures agreed upon by the Committee to
verify that the individual quantities satisfy the applicable changed Specifications. If any
quantity of ARA Product fails to satisfy the applicable changed Specifications, the Testing Party
shall so notify the Manufacturing Party. Any dispute between the parties regarding the quality of
any ARA Product thus supplied shall be resolved by a binding determination of a third party testing
facility as agreed upon by the Committee. In case it is resolved that any quantity of ARA Product
thus supplied by the Manufacturing Party fails to satisfy the applicable changed Specifications,
the Manufacturing Party shall adjust its manufacturing process or take other appropriate action and
provide a replacement quantity of ARA Product for testing and analysis by the Testing Party. The
process shall continue until the Testing Party determines that all quantities of ARA Product
provided by the Manufacturing Party satisfy the applicable changed Specifications. The Testing
Party shall be responsible for its own testing costs and such costs shall not be included in DSM
Costs or Martek Costs, as applicable.

4.5. Inspection.

Upon reasonable notice during regular working hours, each of DSM and Martek and their
respective customers may inspect the manufacturing facilities of the other party and any
subcontractor(s) in order to inspect the manufacture of ARA Products, examine samples of ARA
Products and review quality control and manufacturing procedures for the purpose of verifying the
quality of ARA Products. In addition, Martek shall be permitted to have its technical personnel
periodically visit * to assist DSM in matters pertaining to ARA production at Martek’s discretion
and to provide support, to share technical experience, and/or to monitor ARA production activities.
The visits shall be with reasonable notice to DSM, with the exact hours of such visits to be mutually agreed upon. Martek shall assure that, during such visits, Martek
personnel shall adhere to the site’s rules and regulations and the instructions of DSM personnel.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

30

 

4.6. Manufacturing Changes. 

(a) DSM shall promptly notify the Committee of any major or minor change to any manufacturing
process to be performed by DSM for ARA Products and shall not apply such change to the manufacture
of ARA Products without following the process set forth in this Section 4.6. Martek shall promptly
notify the Committee of any major or minor change to any Extraction or RBD process and shall not
apply such change to the Extraction or RBD process without following the process set forth in this
Section 4.6. Listed on Schedule 4.6(a) are certain changes that the parties consider to be major
changes and minor changes for purposes of this Section 4.6 as of the Restatement Effective Date.
The Committee shall have the authority to modify such Schedule from time to time in its discretion
and otherwise shall be the arbiter of whether changes other than those described on Schedule 4.6(a)
constitute major changes or minor changes for purposes of this Section 4.6. Any deadlock within
the Committee will be resolved in accordance with Section 8.6 as a Disputed Fact. Minor changes,
either as listed on Schedule 4.6(a) or as confirmed by the Committee, shall require notice to the
Committee prior to their implementation, including the date of implementation, but shall not
require pre-approval. In the event of a proposed major change by DSM, following notification to
the Committee, the provisions of Section 4.6(b) shall apply. In the event of a proposed major
change by Martek, following notification to the Committee, the Committee shall meet as promptly as
possible to determine what, if any, action is necessary or advisable in connection therewith. All
major changes are subject to verification that the ARA Product produced thereby meets Qualification
Requirements as set forth in Section 4.6(b). Each of Martek and DSM agrees to maintain a written
record of all changes to the manufacturing process of ARA Products it makes, which record will be
readily accessible or provided to the other party for review upon the request of such other party,
and which will be reported at the next succeeding quarterly meeting of the Committee.

(b) To determine if a proposed major manufacturing change by DSM is acceptable, the parties
agree to verify that such changes will produce Finished Oil that satisfies the applicable
analytical, sensory and stability requirements of Finished Oil as set forth in Schedule 4.6(b) (the
“Qualification Requirements”) pursuant to the verification process set forth in (i) through (iii)
below. DSM shall be entitled to propose up to * major manufacturing changes in each calendar year,
unless otherwise agreed in writing by Martek. The verification process is as follows:

(i) With respect to each proposed major manufacturing change, DSM shall deliver
to Martek three (3) separate consecutive batches of ARA Product produced by the
proposed changed process and which meet Biomass Specifications (the “Test ARA
Product”). Martek shall perform the Extraction and RBD services on each such batch
and thereafter subject such batches of the Test ARA Product to its testing and
analytical procedures to verify that each such
batch satisfies the Qualification Requirements, which testing and analysis shall be
completed by Martek within six (6) months following the date of Martek’s receipt of
the third batch of the Test ARA Product from DSM. Notwithstanding the foregoing,
DSM shall have the right to abandon at any time any proposed changed process by
delivery of written notice thereof to Martek, in which event DSM shall be
responsible for its cost of preparing the relevant Test ARA Product. Martek shall be
responsible for its cost in testing the Test ARA Product but need not pay DSM for
any Test ARA Product unless it is saleable by Martek, in which case Martek shall pay
DSM for any saleable batch, provided that one or more consecutive batches so
produced by DSM meet the Qualification Requirements and DSM has not abandoned the
proposed process changes due to quality or other reasons.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

31

 

(ii) Upon completion of Martek’s testing and analysis, Martek will notify DSM
in writing as to whether or not the Test ARA Product meets the Qualification
Requirements. If the Qualification Requirements are met, DSM may implement the
proposed manufacturing change and shall inform Martek when the implementation has
been completed. If the Qualification Requirements are not met, DSM shall not be
permitted to implement the proposed manufacturing change and DSM shall be
responsible for its cost of preparing the relevant Test ARA Product. Martek shall be
responsible for its cost in testing the Test ARA Product but need not pay DSM for
such Test ARA Product.

(iii) If Martek fails to deliver to DSM written notice of the results of the
applicable testing and analysis of the Test ARA Product within the 6 month testing
period provided in Section 4.6(b)(i) (other than due to a Force Majeure Event (as to
which Martek shall give DSM prompt written notice)), and the Test ARA Product
ultimately meets the Qualification Requirements, the parties shall calculate a
penalty for Martek’s delay as follows, which penalty shall be payable by Martek to
DSM within forty-five (45) days following the end of each calendar quarter, as
applicable, determined as follows:

The difference between the Usages in the “Approval Year” (i.e., the
calendar year when the notice regarding Qualification Requirements
results would have been provided by Martek if the 6 month period of
§4.6(b)(i) were met) and Usages in the year immediately prior to the
Approval Year (prorated for the portion of proposed major
manufacturing changes that have been timely approved) shall be
determined and multiplied by the Actual Rates of the Approval Year.
The result shall then be multiplied by the number of days Martek was
late in delivering its written notice to DSM and divided by 365. The
result shall be multiplied by the quantity of Units of ARA
forecasted and ordered in the Approval Year. For example:

(Usages in prior year less Usages in the Approval Year—prorated for the
portion of proposed major changes which have been approved)

X

Actual Rates for Approval Year

X

(Number of late days/365)

X

Units of ARA ordered in Approval Year

=

Penalty payable.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

32

 

(c) If, at any time the ARA Product does not meet Finished Oil Specifications, Martek shall
notify DSM promptly in writing after it becomes aware of such failure and the parties shall work
together to determine if the failure to meet such Specifications resulted from the aggregate
manufacturing changes implemented by DSM. Following Martek’s notice, DSM may immediately adjust
its manufacturing process to revert to the manufacturing process utilized immediately prior to the
manufacturing change(s) that produced ARA Product that did not satisfy Qualification Requirements.
In addition, Martek may request that the ARA Product be subjected to the verification process
described in Section 4.6(b)(i) and (ii) above to determine if the ARA Product meets Qualification
Requirements. If any such ARA Product thus produced by DSM (i.e., ARA Product produced following
one or more manufacturing changes) fails to satisfy Qualification Requirements, DSM shall adjust
its manufacturing process to revert to the manufacturing process utilized immediately prior to the
manufacturing change(s) that produced ARA Product that did not satisfy Qualification Requirements.
In addition, the parties agree to work together as part of the process described above to determine
if the failure to satisfy the Qualification Requirements is due to reasons reasonably related to a
change in or problem with Extraction or RBD.

(d) In the event DSM purchases or intends to purchase an additional fixed asset for use, in
whole or in part, * that is required for improving or maintaining production capabilities or
reducing the costs of ARA production for Martek pursuant to this Restated Agreement (the portion
(but such portion only, up to 100%) of any such asset used for improving or maintaining, or
reducing the costs of, ARA production being referred to herein as an “Additional Capital Asset”),
it shall notify Martek of such Additional Capital Asset as follows: If the aggregate capitalized
purchase amount of the Additional Capital Asset(s) (including all costs directly related thereto
that are capitalized in accordance with generally accepted accounting principles consistent with
those methods used by DSM for its other businesses, such as capitalized installation costs) is less
than USD$* in any calendar year, investment in such Additional Capital Asset(s) shall not require
Martek’s approval and such assets shall be deemed “Approved Capital Asset(s)” hereunder upon
purchase by DSM, but DSM shall notify Martek by providing an updated Schedule 9.4(d)-1 that
reflects the Approved Capital Asset(s), which shall be provided not less frequently than once per
calendar year. If the aggregate capitalized purchase amount of the Additional Capital Assets
equals or exceeds or is expected to equal or

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

33

 

exceed USD$* in any calendar year, DSM shall notify
Martek prior to such purchases and the parties shall discuss whether Martek is willing to share in the costs and benefits of such
purchases. If Martek agrees to co-invest in such new Additional Capital Assets then the parties
will agree upon the split of the investment costs, the corresponding allocation of depreciation to
ARA production for Martek, and how the financial benefits will be shared between the parties. In
that event, the parties shall agree upon and prepare an updated Schedule 9.4(d)-1 reflecting the
agreed portion of the Additional Capital Assets to be included thereon, which shall be referred to
as (and shall be deemed) “Approved Capital Assets.” If Martek does not agree to co-invest, then
DSM may invest in such Additional Capital Assets at its sole discretion, Martek shall not share in
the costs of any such Additional Capital Assets (i.e., they are not Approved Capital Assets), and
Martek shall not be entitled to share in any financial benefits arising from such Additional
Capital Assets through any additional cost reductions hereunder; provided, however, that Martek’s
failure to approve any such Additional Capital Assets shall not affect Martek’s ability to benefit
from the cost reductions previously committed through agreed upon Usages through 2014.
Accordingly, for any Additional Capital Assets for which Martek declines to co-invest as provided
above, Schedule 9.4(d)-1 shall not include any costs related to such Additional Capital Assets.
Within forty-five (45) days following the end of each calendar year, DSM will provide an annual
updated Schedule 9.4(d)-1 for the assets listed thereon and shall include a detailed list of all
Approved Capital Assets, their capitalized costs and the accumulated depreciation related thereto,
as well as detail relating to all such depreciation. All such assets shall be depreciated on a
straight-line basis over a ten (10) year period starting at the time such asset is placed into
service. Any disagreement between the parties relating to the determination of Additional Capital
Asset(s) or Approved Capital Asset(s) will be deemed to be a Disputed Fact and will be resolved
according to the provisions set forth in Section 8.6.

4.7. ARA Product Non-Conformity Procedure; Rework and Destruction. 

(a) If either party determines or has reason to believe that any shipment of ARA Products does
not conform with the applicable Specifications, that party will give prompt written notice thereof
to the other party, which notice shall include a description of the nonconformity. Any dispute
between the parties regarding whether or not a shipment conforms with the applicable Specifications
shall be resolved by a binding determination of a third party testing facility as agreed upon by
the Committee.

(b) If any shipment of ARA Products does not conform to the applicable Specifications, the
party that ordered such shipped products shall consider in good faith, whether it will accept such
shipment as-is. If the ordering party agrees to accept such shipment as-is, such ordering party
shall notify the producing party of such acceptance and shall pay such producing party the
applicable invoice price (in accordance with the terms of this Restated Agreement) for the
shipment. When determining if lots of ARA Product received from DSM meet Biomass Specifications,
Martek will continue to accept such lots that may not objectively meet the Biomass Specifications
but that Martek reasonably believes will produce Finished Oil that meets Finished Oil
Specifications, consistent with its past practice.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

34

 

(c) If any shipment of ARA Products does not conform to the applicable Specifications and is
not accepted by the ordering party, such ordering party shall return such shipment to the producing
party at such producing party’s request and expense (the “Returned Material”). If the ordering
party authorizes the producing party to rework such shipment, such producing party shall be
entitled to rework such shipment and such ordering party shall accept such reworked shipment
provided that it meets the applicable Specifications, and the costs and expenses related to the
rework of the Returned Material shall be borne by the party doing such rework. If such reworked
shipment continues to fail to meet the applicable Specifications, the ordering party shall consider
in good faith whether it will accept such shipment as-is and, if the ordering party is Martek, it
shall also act in accordance with the last sentence of Section 4.7 (b). If such ordering party
agrees to accept such shipment as-is, such ordering party shall notify the producing party of such
acceptance, in which case the costs and expenses related to the rework of the Returned Material
shall be borne by the party doing such rework and such costs and expense shall not be included in
DSM Costs or Martek Cost, as applicable. The parties agree to work together in good faith to
co-develop rework procedures that allow rejected ARA Products to be re-processed into ARA Products
that meet the Specifications.

(d) In the event that the ordering party does not authorize the producing party to rework the
Returned Material or if such producing party does not exercise its right to provide a reworked
shipment or is unable to provide a reworked shipment that meets the Specifications within a
reasonable time after such producing party’s receipt of the notice of nonconformity, such ordering
party shall have no obligation to pay the producing party for the nonconforming ARA Products or
cost of Martek Services associated with the production of such ARA Products (as applicable) and, if
payment has already been made, such ordering party shall be entitled to an immediate refund of the
price of the nonconforming shipment. In such event, the producing party shall use its commercially
reasonable efforts to replace the nonconforming ARA Products with a substitute shipment that meets
the Specifications and such producing party shall be free to dispose of the Returned Material as it
determines, consistent with the terms of this Restated Agreement, including by selling it (to the
extent permitted) in its respective ARA Field of Use or destroying it.

4.8. Compliance. 

(a) DSM represents and warrants that it shall obtain and maintain, and shall ensure that its
Third Party Toll Manufacturers obtain and maintain, all licenses, permits, approvals, clearances
and notifications that may be required by law in connection with the manufacture and packaging of
ARA Products for Martek hereunder. DSM further represents and warrants that (i) the Specifications
for ARA Products to be produced as a result of Martek performing Martek Services for DSM shall
comply with all applicable laws, rules and regulations, (ii) all quantities of ARA Products that
DSM supplies to Martek hereunder shall be manufactured in conformity with all applicable laws,
rules and regulations and shall fully satisfy the Specifications, provided that DSM shall have
delivered to Martek a signed certificate of analysis indicating that such quantities of ARA
Products meet the Specifications, and (iii) DSM shall exercise commercially reasonable efforts to
keep its facilities that are used in the
manufacture of ARA Products in good working order and available for the production of ARA
Products pursuant to this Restated Agreement.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

35

 

(b) Martek represents and warrants that it shall obtain and maintain, and shall ensure that
its Third Party Toll Manufacturers obtain and maintain, all licenses, permits, approvals,
clearances and notifications that may be required by law in connection with the Extraction, RBD,
manufacturing, packaging, or production of ARA Products for DSM hereunder. Martek further
represents and warrants that (i) the Specifications for ARA Products to be produced by DSM for
Martek shall comply with all applicable laws, rules and regulations and (ii) all Martek Services
shall be performed in conformity with all applicable laws, rules and regulations and the ARA
Products delivered as a result thereof shall fully satisfy the Specifications, provided that Martek
shall have delivered to DSM a signed certificate of analysis indicating that such quantities of ARA
Products meet the Specifications, and (iii) Martek shall exercise commercially reasonable efforts
to keep its facilities that are used in the manufacture of ARA Products in good working order and
available for the production of ARA Products pursuant to this Restated Agreement.

4.9. Disclaimers.

(a) THE LIMITED WARRANTY SET FORTH HEREIN IS EXCLUSIVE AND IN LIEU OF, AND DSM HEREBY
DISCLAIMS, ALL OTHER WARRANTIES REGARDING THE PRODUCTS PRODUCED FOR MARTEK HEREUNDER, EXPRESS OR
IMPLIED, INCLUDING WITHOUT LIMITATION ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE.

(b) THE LIMITED WARRANTY SET FORTH HEREIN IS EXCLUSIVE AND IN LIEU OF, AND MARTEK HEREBY
DISCLAIMS, ALL OTHER WARRANTIES REGARDING THE PRODUCTS PRODUCED AND SERVICES PERFORMED FOR DSM
HEREUNDER, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION ANY IMPLIED WARRANTIES OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

(c) THE PARTIES ACKNOWLEDGE THAT NEITHER PARTY IS GRANTED ANY RIGHTS UNDER ANY PATENTS OR
PATENT APPLICATIONS FILED IN THE NAME OF OR ON BEHALF OF THE OTHER PARTY OR ITS AFFILIATES EXCEPT
THOSE SET FORTH IN SECTIONS 7.4 AND 9.3. EACH PARTY EXPRESSLY DISCLAIMS ANY WARRANTY TO THE OTHER
PARTY OR ANY THIRD PARTY AS TO THE SCOPE, VALIDITY OR ENFORCEABILITY OF ANY OF THE INTELLECTUAL
PROPERTY RIGHTS LICENSED HEREUNDER.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

36

 

5. MARKETING

5.1. Expansion of Fields of Use. 

(a) DSM agrees to use its commercially reasonable efforts, including marketing efforts, to
assist Martek in entering into commercial agreements, on terms acceptable to Martek in Martek’s
sole discretion, with Infant Formula Product customers in such territories as DSM and Martek may
from time to time agree upon in writing.

(b) In view of DSM’s global marketing network, Martek agrees that should it or any of its
Affiliates consider utilizing a third party marketing and/or sales force for sales of ARA Products
for Infant Formula Products, Martek shall, before entering into a binding agreement with any other
third party with respect thereto, give DSM written notice thereof and shall present and consider
with DSM in good faith whether or not DSM could be of assistance in such marketing and sales
efforts.

(c) DSM shall use its good faith efforts to identify to Martek any DSM customer that indicates
to DSM an interest in any ARA Product that is available from Martek in the Martek ARA Fields of Use
and Martek shall use its good faith efforts to identify to DSM any Martek customer that indicates
to Martek an interest in any ARA Product that is available from DSM in the DSM ARA Fields of Use.

(d) DSM and Martek agree to explore together new market opportunities for additional uses of
ARA including applications that may involve combining ARA with DHA and/or other nutrients, but
shall be under no obligation to continue such explorations for any specific length of time nor
shall the parties be under any obligation to enter into any arrangement regarding any such new
market opportunities beyond the arrangements set forth herein.

5.2. Customer Contracts. 

From and after the Signing Date, each party and its Affiliates shall notify each of their
respective customers prior to any sale to such a customer of ARA Products that (a) any ARA Products
sold to such customer are subject to Intellectual Property licenses that prohibit such customer
from selling or using such ARA Products outside such notifying party’s ARA Fields of Use and (b)
such customer will not be able to purchase ARA Products from such party or any of its Affiliates if
any sale or use by such customer of such ARA Products is outside such notifying party’s ARA Fields
of Use. The parties shall cooperate in good faith to identify any customer that uses or sells ARA
Products purchased from a party or any of its Affiliates outside such notifying party’s ARA Fields
of Use (“Out of Scope Customer”). Where it is determined by agreement of the parties or pursuant
to the arbitration provisions of Section 10.5 that a party has sold, or that an Affiliate of a
party has sold, the ARA Products to an Out of Scope Customer, the party shall either promptly stop
such sale or use of ARA Products by such customer or make, or cause such Affiliate to make, no
further sales of ARA Products to such customer, it being understood and agreed that any failure to
stop such sale of ARA Products or to make, or cause such Affiliate to make, no such further sales
shall be deemed to be a breach of a material term of this Restated Agreement, unless applicable law
shall prohibit such party or Affiliate from stopping such sale or use of ARA Products by such
customer or from ceasing to make such further sales of ARA Products to such customer.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

37

 

5.3. Priority of ARA Marketing. 

(a) It is understood and agreed that the parties will use all reasonable efforts to first meet
the demands for ARA Products for Infant Formula Products before supplying ARA Products to any other
Martek ARA Field of Use or to any DSM ARA Field of Use and otherwise in accordance with a
methodology for allocating any surplus ARA Products as determined by the Committee.

(b) Upon the request of either party, the number of Units of ARA in ARA Products to be
supplied per year for use in connection with new product and/or new ARA Field of Use development
shall be as follows, it being understood and agreed that the Committee shall have the authority to
modify such amounts from time to time:

	 	 	 
	 	 	Units of ARA per Annum
	Monthly Production Capacity	 	New ARA Product/Field of Use
	 
	 	 
	* Units of ARA

	 	* Units of ARA
	 
	 	 
	* Units of ARA

	 	* Units of ARA
	 
	 	 
	* Units of ARA

	 	* Units of ARA

(c) Each party shall be entitled to fifty percent (50%) of the total number of Units of ARA
per year allocated for use in connection with new product and/or new ARA Field of Use development,
provided that each party shall have the right to use all or a portion of such fifty percent (50%)
in any manner it deems fit within its own ARA Field of Use, whether for existing ARA Products or
new ARA Products.

5.4. * Arrangements with * Customers. 

(a) DSM hereby agrees to accept the * pricing for ARA Products as set forth in Section
5.4(b)(i) when and if Martek enters into * arrangements with *, pursuant to that certain *,
permitting * to order quantities of ARA Products * solely for inclusion in Infant Formula Products
that will be sold * in certain * and (ii) to meet its obligations to * Customers.

(b) DSM agrees (i) to accept Martek Purchase Orders for specified quantities of ARA Products
for which the delivery instructions provided by Martek in accordance with Section 3.8(a) specify
that the ARA Products delivered pursuant to such Purchase Orders will be included in an Infant
Formula Product that will be sold by * Customers * in one or more * and, together with DHA supplied
by Martek, must comprise * of any and all Omega-3 and/or Omega-6 long chain polyunsaturated fatty
acids (i.e., fatty acids other than linolenic acid, gammalinolenic acid and alphalinolenic acid
that contain at least * and at least *) in any Infant Formula Product sold by * Customers as
applicable in the *, and (ii) notwithstanding Section 6.1 of this Restated Agreement, to accept as
payment in full for the ARA Products subject to each such Martek Purchase Order an amount equal to
the Agreed Price per Unit of ARA for filling such order, less * of the DSM Mark Up per Unit of ARA. Notwithstanding the foregoing, DSM
shall not be required to accept in any calendar year Martek Purchase Orders for ARA Products for *
Customers at such * in an amount * of the * that are the subject of Martek’s Purchase Orders *. To
the extent that such Martek Purchase Orders * the * and the then current * for such * within
forty-five (45) days of the end of such calendar year.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

38

 

(c) Martek shall (i) require * Customer, on whose behalf Martek orders ARA Products at the
price set forth in Section 5.4(b), to maintain complete and adequate books and records of all sales
of ARA Products ordered at such price, (ii) reserve and, in Martek’s discretion, exercise the right
to audit such books and records to enable Martek to verify that all such quantities of ARA Products
are included only in Infant Formula Products that are sold only in *, and (iii) take such steps
which are reasonable to ensure that such quantities of ARA Products are included only in Infant
Formula Products that are sold in *.

5.5. Notification and Challenge Procedure.

(a) Notwithstanding anything to the contrary set forth elsewhere in this Restated Agreement,
prior to any sale by a party (the “Notifying Party”) or any of its Affiliates of ARA Products into
the other party’s ARA Fields of Use (the “Responding Party”), the Notifying Party shall provide
written notice thereof to the Responding Party three (3) years before commencing any such sale (“IP
Notice”), which notice shall include a list of such ARA Products (“Included ARA Products”);
provided, however, that the foregoing requirement as well as the remaining
provisions of this Section 5.5 shall not apply to any sale by DSM or its Affiliates of, and DSM and
its Affiliates shall at all times be entitled to sell, DSM Adult ARA Products for a DSM Adult ARA
Application on the terms and subject to the conditions set forth in Section 7.4(f) of this Restated
Agreement. During such three (3) year period, the Notifying Party shall not commence such sales.
The date that the Responding Party receives such IP Notice shall hereinafter be referred to as the
“IP Notice Receipt Date.” The Responding Party shall have the right to proceed to arbitration
pursuant to Section 10.5 of this Restated Agreement, for the purpose of determining whether the
Notifying Party will be legally entitled to sell the Included ARA Products into any of the ARA
Fields of Use of the Responding Party without infringing the Intellectual Property rights or
Know-how of the Responding Party as further set forth in Section 5.5(b) below, by giving written
notice to the Notifying Party of its intent to proceed to arbitration, and subsequently initiating
such arbitration, within six (6) months of the IP Notice Receipt Date. Whether or not such right
to arbitrate is exercised, the Responding Party shall have the right to terminate this Restated
Agreement as further set forth in Section 5.5(c) below. If the Responding Party does not proceed
to arbitration within six (6) months of the IP Notice Receipt Date, the Notifying Party shall be
permitted to sell the Included ARA Products into any of the Responding Party’s ARA Fields of Use
only after the date which is three (3) years after the IP Notice Receipt Date. Any breach of any of
the provisions of this Section shall constitute a material breach of this Restated Agreement.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

39

 

(b) In the case of arbitration pursuant to 5.5(a), the Notifying Party shall not sell any ARA
Products into any of the Responding Party’s ARA Fields of Use except in
accordance with Section 5.5(b)(ii), and shall have the burden of establishing by clear and
convincing evidence that its potential sale of the Included ARA Products into any of the Responding
Party’s ARA Fields of Use would not infringe upon the Responding Party’s Intellectual Property
rights or Know-how on the Decision Date. The date on which the arbitrators deliver their decision
to the parties shall hereinafter be referred to as the “Decision Date.”

(i) If the arbitrators determine that the Notifying Party will not be legally
entitled to sell the Included ARA Products into any of the Responding Party’s ARA
Fields of Use, then any subsequent sale of any Included ARA Products by the
Notifying Party into any of the Responding Party’s ARA Fields of Use shall be
conclusively deemed to be an infringement of the Responding Party’s Intellectual
Property rights and/or Know-how for purposes of any arbitration or legal proceeding
between the Responding Party and the Notifying Party related to such sale unless and
until there is a material change in the Intellectual Property rights or Know-how of
either party in which event either party shall be entitled to commence the process
set forth in Section 5.5(a) again.

(ii) If the arbitrators determine that the Notifying Party will be legally
entitled to sell the Included ARA Products into any of the Responding Party’s ARA
Fields of Use, such sales shall commence no earlier than (A), if this Restated
Agreement has not been terminated prior to the Decision Date, the date three (3)
years following the Decision Date or (B), if this Restated Agreement has
been terminated prior to the Decision Date, the date three (3) years following the
date of such termination.

(iii) During the pendency of the arbitration pursuant to 5.5(a), the Notifying
Party shall respect the arbitration process and shall not itself sell, and shall
cause its Affiliates not to sell, any ARA Products into the Responding Party’s ARA
Fields of Use except in accordance with Section 5.5(b)(ii).

(c) The Responding Party’s right to terminate this Restated Agreement pursuant to 5.5(a) shall
be exercisable by providing the Notifying Party with a written notice of termination (“Termination
Notice”), such Termination Notice to be delivered (i) any time up to the date six (6) months after
the Decision Date if the Responding Party commences arbitration in accordance with 5.5(a) or (ii)
at any time within one (1) year of the IP Notice Receipt Date if the Responding Party does not
commence arbitration in accordance with 5.5(a). In either case, the Termination Notice must (i)
set forth an effective date for the termination that is no earlier than the date three (3) years
after the IP Notice Receipt Date and (ii) be delivered to the Notifying Party at least six (6)
months prior to such effective date.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

40

 

(d) Notwithstanding anything in this Restated Agreement to the contrary, upon the IP Notice
Receipt Date:

(i) The Responding Party’s purchase and/or supply obligations under Article 3
shall be terminated and shall instead become purchase and/or supply rights, as the
case may be, but the Notifying Party’s obligation to purchase or supply under
Article 3 shall continue;

(ii) The Responding Party’s (but not the Notifying Party’s) production or
sales allocation (i.e. the DSM Extraction Allocation /DSM RBD Services Allocation or
Martek Allocation, as applicable) under Article 3 shall become unlimited;

(iii) If DSM is the Responding Party: (i) the parties’ obligation set forth in
Section 5.3 to first meet demands for Infant Formula Products before supplying ARA
Products to any DSM ARA Field of Use and (ii) DSM’s obligation set forth in Section
5.4 to accept the * pricing for * customers, shall each terminate (such obligations
to continue unaffected if Martek is the Responding Party);

(iv) If Martek is the Responding Party, Martek’s payment obligations under
Section 6.12 (Break Up Fee) shall terminate (such payment obligation to continue
unaffected if DSM is the Responding Party), and Martek’s obligations regarding the
Agreed Annual Fixed Costs under Section 6 shall terminate (such payment obligation
to continue unaffected if DSM is the Responding Party); and

(v) The Responding Party shall have the right to sublicense the Notifying
Party’s proprietary technology (either Martek Proprietary Technology or DSM
Proprietary Technology, as applicable), Improvements and the Production Technology
to any Third Party Toll Manufacturers without the prior approval of or acceptance by
the Notifying Party (and the Notifying Party’s right to so sublicense shall continue
to be subject to the prior approval or acceptance requirements set forth herein).

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

41

 

6. FINANCIAL MATTERS

6.1. Amounts Payable by Martek.

(a) For each Unit of ARA that has been delivered by DSM in a given calendar year and accepted
by Martek pursuant to a Martek Purchase Order, Martek shall pay to DSM the applicable Budgeted
Price per Unit of ARA as determined below, subject to the limitations and adjustments further set
forth in this Article 6, including the reconciliations pursuant to Section 6.2 and adjustments
pursuant to Section 6.3. The Budgeted Price per Unit of ARA shall be equal to the sum of the DSM
Fixed Cost per Unit of ARA, the mark up per Unit of ARA (the “DSM Mark Up”) and the DSM Variable
Cost per Unit of ARA, in each case as in effect for the calendar year in which the Unit of ARA is
ordered for delivery pursuant to a Martek Purchase Order, as set forth below.

(b) Prior to December 1 of each calendar year (the “Current Year”), the Committee shall agree
upon the rates per Unit of ARA for electricity, natural gas, yeast extract and dextrose (the
“Budgeted Rates”) to be used in the calculation of the DSM Variable Costs per Unit of ARA for the
next calendar year (the “Succeeding Year”).

(c) For any period during the term of this Restated Agreement, if so requested by Martek, DSM
shall lock-in (if possible) a fixed rate for up to * (or a lesser portion if so requested by
Martek) of electricity, natural gas, yeast extract and dextrose to be used by DSM in connection
with producing ARA Products for Martek. In addition, DSM shall obtain written approval from
Martek, such approval to not be unreasonably withheld or delayed, prior to locking-in a fixed rate
or hedge for all or any portion of electricity, natural gas, yeast extract and dextrose in
connection with directly or indirectly producing ARA Products for Martek, even if Martek has not
requested such action, which written approval may be obtained via email correspondence between the
parties. The parties hereby agree that, once a rate is locked-in for a given period in accordance
with the foregoing procedure, it will not be subject to any further adjustment during the relevant
period unless mutually agreed in writing. DSM shall use commercially reasonable efforts to
minimize all DSM Variable Costs per Unit of ARA, including without limitation the costs subject to
rate adjustments listed above.

(d) The parties agree that Martek shall pay for all transportation from * Ex-Works and arrange
(or have arranged by DSM) transport of Units of ARA in line with DSM’s production planning and
Martek’s Purchase Orders.

(e) During the period from January 1, 2010 through December 31, 2014, * of all purchases of
Units of ARA made by Martek will be invoiced by and paid to DSM in US Dollars and * in Euros using
an exchange rate of * US Dollars per Euro. For example, if the aggregate Units of ARA purchased
for a calendar year is * and the Agreed Price per Unit of ARA is *, * will be paid and * will be
paid. For purchases of Units of ARA made by Martek in 2009, if the amounts invoiced by and paid to
DSM are not * in US Dollars and * in Euros, the amounts will be reconciled to match such
proportions using an exchange rate of * US Dollars per
Euro. Euros are calculated by determining * of the amount of US Dollars that would have been paid
at * per Unit of ARA (* of *, or *) and then dividing * by the exchange rate of US$* per €1. All
references to dollars or $ in this Restated Agreement shall mean US Dollars.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

42

 

(f) The parties agree that the following volume and pricing terms and conditions shall apply
for each calendar year commencing with 2009 and continuing through December 31, 2014, subject to
adjustments set forth in Sections 6.2 and 6.3 below, as applicable:

	 	(i)	 	2009: For calendar year 2009, Martek may purchase up to * Units of ARA
at the Budgeted Price, but shall order at least * Units of ARA for delivery in 2009.
The Budgeted Price for 2009 shall be calculated based upon the following:

	 	•	 	The 2009 Agreed Annual Fixed Cost shall be * US Dollars ($*) resulting in a
DSM Fixed Cost per Unit of ARA equal to $* for the first * Units of ARA and $*
for any additional Units of ARA.

	 	•	 	The 2009 DSM Mark Up per Unit of ARA shall be equal to $* for the first *
Units of ARA and $* for any additional Units of ARA.

	 	•	 	The 2009 DSM Variable Cost per Unit of ARA shall be equal to $* for all
Units of ARA, determined as set forth on Schedule 6.1-B.

	 	(ii)	 	2010: For calendar year 2010, Martek may purchase up to * Units of ARA
at the Budgeted Price, but shall order at least * Units of ARA for delivery in 2010.
The Budgeted Price for 2010 shall be calculated based upon the following:

	 	•	 	The 2010 Agreed Annual Fixed Cost shall be * US Dollars ($*) resulting in a
DSM Fixed Cost per Unit of ARA equal to $* for the first * Units of ARA and $*
for any additional Units of ARA.

	 	•	 	The 2010 DSM Mark Up per Unit of ARA shall be equal to $* for all Units of
ARA forecasted for 2010 pursuant to the Martek Three Year Rolling Forecast as
of November 1, 2009 and $* for any additional Units of ARA.

	 	•	 	The 2010 DSM Variable Cost per Unit of ARA shall be the sum of the Usages
for electricity, natural gas, yeast extract and dextrose set forth in Schedule
6.1-A multiplied by their corresponding Budgeted Rates for 2010 (except that
the rate for “Other Materials” shall be as set forth on Schedule 6.1-B).

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

43

 

	 	(iii)	 	2011: For calendar year 2011, Martek may purchase up to * Units of
ARA at the Budgeted Price, but shall order at least * Units of ARA for delivery in
2011. The Budgeted Price for 2011 shall be calculated based upon the following:

	 	•	 	The 2011 Agreed Annual Fixed Cost shall be * US Dollars ($*) resulting in a
DSM Fixed Cost per Unit of ARA equal to $* for the first * Units of ARA and $*
for any additional Units of ARA.

	 	•	 	The 2011 DSM Mark Up per Unit of ARA shall be equal to $ * for all Units of
ARA forecasted for 2011 pursuant to the Martek Three Year Rolling Forecast as
of November 1, 2010 and $* for any additional Units of ARA.

	 	•	 	The 2011 DSM Variable Cost per Unit of ARA shall be the sum of the Usages
for electricity, natural gas, yeast extract and dextrose set forth in Schedule
6.1-A multiplied by their corresponding Budgeted Rates for 2011 (except that
the rate for “Other Materials” shall be as set forth on Schedule 6.1-B).

	 	(iv)	 	2012: For calendar year 2012, Martek may purchase up to * Units of ARA
at the Budgeted Price for delivery in 2012, which shall be calculated based upon the
following:

	 	•	 	The 2012 DSM Fixed Cost per Unit of ARA shall be the 2012 Agreed Annual
Fixed Cost of * US Dollars ($*) divided by the number of Units of ARA
forecasted for purchase by Martek for 2012 pursuant to the Martek Three Year
Rolling Forecast as of November 1, 2011, subject to a reconciliation based on
actual 2012 purchases as provided below.

	 	•	 	The 2012 DSM Mark Up per Unit of ARA shall be equal to $* for all Units of
ARA forecasted for 2012 pursuant to the Martek Three Year Rolling Forecast as
of November 1, 2011 and $* for any additional Units of ARA.

	 	•	 	The 2012 DSM Variable Cost per Unit of ARA shall be the sum of the Usages
for electricity, natural gas, yeast extract and dextrose set forth in Schedule
6.1-A multiplied by their corresponding Budgeted Rates for 2012 (except that
the rate for “Other Materials” shall be as set forth on Schedule 6.1-B).

	 	(v)	 	2013: For calendar year 2013, Martek may purchase up to * Units of ARA
at the Budgeted Price for delivery in 2013, which shall be calculated based upon the
following:

	 	•	 	The 2013 DSM Fixed Cost per Unit of ARA shall be the 2013 Agreed Annual
Fixed Cost of * US Dollars ($*) divided by the number of Units of ARA
forecasted for purchase by Martek for 2013 pursuant to the Martek Three Year
Rolling Forecast as of November 1, 2012, subject to a reconciliation based on
actual 2013 purchases as provided below.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

44

 

	 	•	 	The 2013 DSM Mark Up per Unit of ARA shall be equal to $ * for all Units of
ARA forecasted for 2013 pursuant to the Martek Three Year Rolling Forecast as
of November 1, 2012 and $* for any additional Units of ARA.

	 	•	 	The 2013 DSM Variable Cost per Unit of ARA shall be the sum of the Usages
for electricity, natural gas, yeast extract and dextrose set forth in Schedule
6.1-A multiplied by their corresponding Budgeted Rates for 2013 (except that
the rate for “Other Materials” shall be as set forth on Schedule 6.1-B).

	 	(vi)	 	2014: For calendar year 2014, Martek may purchase up to * Units of ARA
at the Budgeted Price for delivery in 2014, which shall be calculated based upon the
following:

	 	•	 	The 2014 DSM Fixed Cost per Unit of ARA shall be the 2014 Agreed Annual
Fixed Cost of * US Dollars ($*) divided by the number of Units of ARA
forecasted for purchase by Martek for 2014 pursuant to the Martek Three Year
Rolling Forecast as of November 1, 2013, subject to a reconciliation based on
actual 2014 purchases as provided below.

	 	•	 	The 2014 DSM Mark Up per Unit of ARA shall be equal to US$ * for all Units
of ARA forecasted for 2014 pursuant to the Martek Three Year Rolling Forecast
as of November 1, 2013 and $* for any additional Units of ARA.

	 	•	 	The 2014 DSM Variable Cost per Unit of ARA shall be the sum of the Usages
for electricity, natural gas, yeast extract and dextrose set forth in Schedule
6.1-A multiplied by their corresponding Budgeted Rates for 2014 (except that
the rate for “Other Materials” shall be as set forth on Schedule 6.1-B).

(g) Other Applications. Notwithstanding anything to the contrary set forth above, for
those Units of ARA in ARA Products that Martek sells to customers that are sold for use for other
than Infant Formula Products and/or Products for Babies, Martek shall pay to DSM a fee (the “Profit
Sharing Fee”) equal to the following:

(i) * of Adult Applications Gross Profits, plus

(ii) * of Gross Profits on Other ARA Applications, less

(iii) The applicable DSM Mark Up for such Units of ARA

Where Martek sells such ARA Units in combination with Units of DHA for use in ARA Applications for
Adults and Other ARA Applications, the Adult Applications Gross Profits or Gross Profits on Other
ARA Applications, in each case per Unit of ARA, as applicable, shall be equal to the Gross Profits
on the Units of ARA (from DSM’s manufacture of the ARA Products to Martek’s sales to its customer,
less the selling and transaction costs related to such sales) that
are ultimately sold for use in such ARA Applications for Adults or Other ARA Applications, as
applicable, based on the average selling price in the Martek ARA Field of Use for similar Units of
ARA sold alone (but in similar quantities as the combined product) and not in combination with
Units of DHA. Any corresponding Profit Sharing Fee payments shall be made within forty-five (45)
days following the end of each calendar year.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

45

 

(h) In the case of new non-fermentation technology to produce ARA Products the parties will
negotiate in good faith to the extent ARA Products are produced with such technology, a new
economic arrangement that will maintain their relative economic position as under the fermentation
technology reflected elsewhere in this Restated Agreement.

(i) If, during the term of this Restated Agreement, any Martek customer that is permitted by
contract with Martek to produce ARA Products in fact produces its own ARA Products, then Martek
shall pay to DSM, on a quarterly basis, * of the amount of arm’s length royalties and any other
related payments received by Martek from such customer in such calendar quarter that are directly
attributable to such customer-produced quantity of ARA Products (the “Customer ARA Production
Royalty”). Any Customer ARA Production Royalty payments shall be paid by Martek to DSM within
forty-five (45) days following the end of each calendar year.

6.2. Reconciliations to the Budgeted Price. 

(a) All Budgeted Prices determined as set forth above shall be paid only for Units of ARA
actually recovered by Martek in the post Extraction Crude Oil. Any corresponding payments as the
result of differences between Units of ARA purchased by Martek and those actually recovered by
Martek shall be reconciled within forty-five (45) days following the end of each calendar quarter.

(b) Martek shall be responsible for 100% of the actual rates billed to DSM by third parties or
by one or more Affiliates or business units of DSM (which amounts shall not include *) for
electricity, natural gas, yeast extract, and dextrose required for the production of Units of ARA
shipped to Martek pursuant to a Martek Purchase Order (the “Actual Rates”); provided that
the actual rates billed to DSM by one or more Affiliates or business units of DSM for such
utilities, yeast extract or dextrose shall be substantially the same, or at least as favorable to
Martek, as those prevailing at the time for such utilities, yeast extract or dextrose obtained from
other nonaffiliated companies. Notwithstanding the foregoing, where any such DSM Affiliate or
business unit provides DSM a below-market rate for such utilities (but such utilities only) as a
result of Additional Capital Assets purchased by DSM that are not Approved Capital Assets, the
market rates for such utilities shall apply as such market rates are reasonably agreed in advance
and in writing by the parties or, if not so agreed, as determined in accordance with the provisions
of Section 8.6 as a “Disputed Fact”. If, however, such Additional Capital Assets are Approved
Capital Assets, Martek will benefit from the more favorable rate, if any, in accordance with the
arrangement for Approved Capital Assets in Section 4.6(b). It is understood and agreed that the
“market rate” for any utility shall be the price for such utility that is generally available
to Persons similarly situated as DSM who purchase such utility in the same general quantities
and with the same general specifications as those purchased by DSM for ARA production.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

46

 

(c) Any corresponding payments as the result of differences between Budgeted Rates and Actual
Rates shall be reconciled within forty-five (45) days following the end of each calendar quarter.
Schedules 6.2-A and 6.2-B set forth calculations applicable to the reconciliations provided in this
Section 6.2.

(d) The average RBD yield used to estimate Units of ARA as Finished Oil expected to be
obtained from each Unit of ARA as Crude Oil shall be *. Any difference between the expected and
actual Units of ARA as Finished Oil as reported by Martek will be converted into Units of ARA as
Crude Oil by dividing any such difference in Finished Oil quantities by the average RBD yield. DSM
will invoice Martek with respect to any increase in Crude Oil quantity or will credit Martek with
respect to any decrease in Crude Oil quantity as follows: * for DSM Variable Cost per Unit of ARA,
and * for DSM Mark Up per Unit of ARA. Any such corresponding payments shall be reconciled within
forty-five (45) days following the end of each calendar quarter.

(e) Thirty (30) days following the end of each calendar year 2009 through 2014, DSM shall
confirm the total Units of ARA produced in the immediately preceding calendar year including Units
of ARA delivered to Martek in such calendar year pursuant to a Martek Purchase Order and Units of
ARA produced by DSM in such calendar year that were intended for sale within the DSM Fields of Use
or DSM Adult ARA Applications. The Agreed Annual Fixed Costs for the relevant calendar year shall
be adjusted by multiplying the Agreed Annual Fixed Costs for the relevant calendar year by the
ratio of (X) total Units of ARA delivered in such calendar year to Martek pursuant to Martek
Purchase Order(s), excluding Carryover Units, to (Y) the total Units of ARA produced by DSM in such
calendar year, excluding Carryover Units (“Adjusted Annual Fixed Costs”). “Carryover Units” shall
mean Units of ARA produced by DSM in a calendar year in excess of Martek Purchase Orders, which
Units are produced for delivery to Martek in a subsequent calendar year. DSM shall pay to Martek
the amount, if any, by which the aggregate Agreed Annual Fixed Costs per Unit of ARA actually paid
by Martek to DSM for the relevant year exceed the Adjusted Annual Fixed Costs for the relevant
year, but not less than zero, within forty-five (45) days following the end of the relevant
calendar year.

(f) Martek shall pay to DSM the amount, if any, by which the Adjusted Annual Fixed Costs for
the relevant year exceeds the aggregate Agreed Annual Fixed Costs per Unit of ARA actually paid by
Martek for the relevant year, within forty-five (45) days following the end of the relevant
calendar year

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

47

 

6.3. Adjustments to the Budgeted Price.

(a) Notwithstanding anything to the contrary in this Restated Agreement, to the extent that
one or more DSM Shortfalls occur for causes other than a Force Majeure Event,
are less than or equal to * Units of ARA in the aggregate within a rolling * period, and do
not occur for more than *, then Martek shall pay to DSM the amount by which the Adjusted Annual
Fixed Costs for the relevant year exceeds the aggregate sum of the DSM Fixed Cost per Unit of ARA
paid to DSM for Units of ARA delivered in the relevant year, within forty-five (45) days following
the end of each calendar year(s) within which such DSM Shortfalls occur. If one or more DSM
Shortfalls occur for causes other than a Force Majeure Event and (A) exceed * Units of ARA in the
aggregate within a rolling * period, or (B) occur for more than four (4) consecutive calendar
quarters (each such * period in (A) or (B) shall be referred to as a “Relevant Period”) then (i)
for each Unit of ARA sold by Martek in excess of the base Martek Allocation (i.e., 40,000 Units of
ARA), Martek will pay to DSM (X) the Shortfall Fixed Cost per Unit of ARA for each such Unit of ARA
produced by Martek plus (Y) an amount equal to the Shortfall Agreed Price per Unit of ARA for the
relevant year minus the price per Unit of ARA paid by Martek to a third party ARA producer (but not
less than zero) for each such Unit of ARA produced by such third party ARA producer, plus (ii) for
each Unit of ARA purchased from DSM during the Relevant Period or an Adjustment Period, Martek will
pay to DSM the Shortfall Fixed Cost per Unit of ARA in lieu of the Agreed Annual Fixed Cost Per
Unit of ARA: provided, however, in no event shall the aggregate amount payable pursuant to (i) and
(ii) exceed the Adjusted Annual Fixed Costs for the relevant year(s). In the event that the
aggregate amount of DSM Fixed Costs Per Unit of ARA paid by Martek for Units of ARA purchased from
DSM during a Relevant Period or an Adjustment Period as set forth in (ii) above exceeds the
aggregate Shortfall Fixed Cost per Unit of ARA for such Units of ARA, the excess amount shall be
credited to Martek. “Shortfall Fixed Cost per Unit of ARA” shall mean the Adjusted Annual Fixed
Cost for the applicable calendar year(s) within the Relevant Period (and any Adjustment Period)
divided by the total Units of ARA requested in Martek Firm Orders for ARA Products for such
applicable calendar year(s) within the Relevant Period or Adjustment Period. “Shortfall Agreed
Price per Unit of ARA” shall mean the sum of the Shortfall Fixed Cost per Unit of ARA, the DSM Mark
Up per Unit of ARA and the DSM Variable Cost per Unit of ARA, in each case as in effect for the
calendar year in which the Unit of ARA is ordered for delivery from such third party ARA producer.
The adjustments to the Budgeted Price and Agreed Price per Unit of ARA applicable during a Relevant
Period as set forth above shall continue to apply for the remainder of any calendar year which
includes any portion of a Relevant Period, and such remaining calendar year period following the
end of a Relevant Period shall be referred to as an “Adjustment Period.” During any Adjustment
Period, Martek will use its commercially reasonable efforts to purchase all of its ARA Product
needs from DSM. Examples of calculations applying the provisions of this Section 6.3(a) are set
forth on Schedule 6.3(a). In the event that, due to a DSM Shortfall for causes other than a Force
Majeure Event, Martek has paid to DSM the difference between the Adjusted Annual Fixed Cost for the
immediately preceding year and the aggregate sum of DSM Fixed Costs per Unit of ARA paid to DSM for
Units of ARA delivered in such year pursuant to the first sentence of this Section 6.3(a) and DSM
Shortfalls continue to occur in the subsequent calendar year and exceeds * Units of ARA in the
aggregate within a rolling * period or occurs for more than *, then DSM will immediately credit
Martek for such payment amount. In no event will Martek be required to pay the DSM Mark Up per
Unit of ARA in respect of any ARA Products sold by Martek as permitted as a result of any increase
in the Martek Allocation effected pursuant to Section 3.3(b). DSM agrees to pursue any insurance
proceeds available to it with respect to a DSM Shortfall, but DSM has no obligation to
maintain such insurance coverage. Any and all amounts payable by Martek to DSM under this Section
6.3(a) shall be reduced by any insurance proceeds actually received by DSM and any other amounts
recovered or to which DSM is entitled with respect to insurance claims or damages, for such DSM
Shortfall (collectively, “Recovered Amounts”) which remain following application of such Recovered
Amounts to DSM’s loss with respect to the DSM Mark Up per Unit of ARA due to such DSM Shortfall
that were not otherwise recovered. If DSM receives a payment from Martek pursuant to this Section
6.3(a) and subsequently receives Recovered Amounts which would have resulted in a reduction of
Martek’s obligation as provided above, if received earlier, DSM shall promptly pay to Martek an
amount equal to such excess Recovered Amounts received, but not to exceed the amount paid by Martek
pursuant to this Section 6.3(a).

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

48

 

(b) Beginning in 2010, the parties shall compare the increase in the PPI from January of the
immediately preceding calendar year to January of the Current Year. If the increase in the PPI
exceeds * for any such calendar year period then the DSM Mark Up per Unit of ARA and the Agreed
Annual Fixed Costs (reduced by an amount equal to DSM’s annual depreciation for such calendar year
as set forth on Schedules 9.4(d)-1 and 9.4(d)-2) for the Current Year and each year thereafter
shall be increased by the percentage amount of such increase in the PPI, effective as of January 1
of the year in which such review of the PPI has taken place, provided that *. *.

(c) The parties agree that the pricing provisions set forth above relating to DSM Fixed Costs
per Unit of ARA and DSM Variable Costs per Unit of ARA (but not the DSM Mark Up) shall be amended
as expressly set forth elsewhere in this Restated Agreement or due to one or more of the following
events outside of DSM’s control: (i) legal or regulatory changes are made that would not allow DSM
to continue production of ARA in the then-current manner without violating a local, state or
federal law, (ii) new patents are issued that prevent DSM from producing in the then-current
manner, or (iii) one or more of the Raw Materials is no longer available *. In any such event,
DSM shall use its commercially reasonable efforts to keep DSM Fixed Costs per Unit of ARA and DSM
Variable Costs per Unit of ARA as low as possible by using its commercially reasonable efforts to
increase production efficiencies, using low cost alternative Raw Materials or employing other
applicable alternatives due to such events. In any such event, the parties will agree on
adjustments to the DSM Fixed Cost per Unit of ARA and/or the DSM Variable Cost per Unit of ARA for
the remaining calendar years through 2014, as applicable, to reflect the actual incremental
increases in the costs to be incurred by DSM in excess of the amounts already included therefor due
to such event and only for so long as such increases in costs are actually incurred; provided,
however, that changes to the applicable DSM Variable Costs per Unit of ARA will only be made if
such events require change(s) that increase the Usages component (or the total cost/unit of the
“Other Materials” component) of the DSM Variable Costs per Unit of ARA, as a result of which the
DSM Variable Costs increase by more than *, as calculated at the then applicable Actual Rates.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

49

 

(d) Martek and DSM agree to use their commercially reasonable efforts to work together to
identify additional goods or products that could be manufactured or processed *
so as to improve plant utilization and thereby reduce the allocation of Agreed Annual Fixed
Costs to the production of ARA. In the event that the manufacturing and/or processing of
additional goods or products commences * as a result of cooperative efforts initiated by Martek,
DSM and Martek will jointly determine the extent to which any such additional plant utilization
actually reduces the amount of DSM Fixed Costs allocable to Martek, and the parties shall agree on
an adjustment to the DSM Fixed Costs payable hereunder through 2014 corresponding with the third
party goods/products utilization in respect of the available total annual capacity *. In the
event, however, that the manufacturing and/or processing of additional goods or products * results
from DSM’s efforts, Martek shall not be entitled to any reduction of the DSM Fixed Costs allocable
to Martek under this Restated Agreement through 2014. It is understood and agreed that, in
determining any fixed cost component of any pricing after 2014, all goods/products manufactured *
shall be considered, and not just those for which an adjustment is envisioned based on this Section
6.3(d).

6.4. Amounts Payable by DSM. 

(a) For each Unit of ARA upon which Martek has performed the Martek Services and which has
been delivered EXW by Martek and accepted by DSM pursuant to a DSM Purchase Order, DSM shall pay to
Martek the Martek Costs per Unit of ARA calculated in accordance with Schedule 2.104 plus a *
markup, in each case as in effect for the calendar year in which the Unit of ARA is ordered for
delivery in such calendar year pursuant to a DSM Purchase Order. Unless otherwise agreed to by the
parties, the Martek Costs per Unit of ARA for a Succeeding Year will be agreed to by the Committee
by November 30 of each Current Year and shall be based on the DSM Budgeted Volume for the
Succeeding Year and the actual Martek Costs per Unit of ARA for the first three (3) quarters of the
Current Year, taking into account any changes to specifications that may impact such costs. The
parties agree that Martek shall not be charged for ARA Products delivered by DSM to Martek for
purposes of Martek’s performing the Martek Services for DSM.

(b) With respect to any ARA Product sold in the DSM ARA Field of Use by DSM or any DSM
Affiliate to a third party that is not an Affiliate of either DSM or Martek, DSM will pay Martek a
royalty of * of the Agreed Price per Unit of ARA applicable to the relevant calendar year for each
Unit of ARA sold as adjusted pursuant to Section 6.3 (the “DSM ARA Field of Use Royalty”);
provided, however, that (i) no such royalty shall be due and owing unless and until the
total quantity of sales during the calendar year in question exceeds $*, (ii) no royalty shall be
owed for sales of ARA Products to * and (iii) the DSM ARA Field of Use Royalty shall not exceed *
of DSM’s Gross Profit on such sales. In cases where DSM reduces the price of the products referred
to in this Section 6.4 as an incentive for a DSM customer to purchase other DSM products, DSM’s
Gross Profit, for purposes of determining any cap on the DSM ARA Field of Use Royalty, shall be
based on the non-reduced price. Any corresponding DSM ARA Field of Use Royalty payments shall be
made within forty-five (45) days following the end of the immediately preceding calendar year.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

50

 

(c) With respect to any ARA Product sold in the DSM Adult ARA Applications by DSM or any DSM
Affiliate to a third party that is not an Affiliate of either DSM or Martek, DSM will pay Martek a
royalty equal to * of the Agreed Price per Unit of ARA in effect applicable to the relevant
calendar year for each Unit of ARA sold as adjusted pursuant to Section 6.3 (the “DSM Adult ARA
Applications Royalty”); provided, however, that no such royalty shall be due and owing
unless and until the total quantity of sales during the calendar year in question shall exceed $*.
Notwithstanding the foregoing, for sales into the * market of a DSM Adult ARA Product that is a
DHA/ARA combination product, DSM agrees that it will either (i) utilize DHA supplied by Martek for
such DSM Adult ARA Product, subject to the payment of the * royalty specified above, or (ii) not
utilize DHA supplied by Martek for such DSM Adult ARA Product and instead pay Martek a royalty
equal to * of the Agreed Price per Unit of ARA in effect at the time for each Unit of ARA sold as
adjusted pursuant to Section 6.3. Any corresponding DSM Adult Applications Royalty payments shall
be made within forty-five (45) days following the end of the immediately preceding calendar year.
For the avoidance of doubt, to the extent any royalty is payable by DSM to Martek on ARA Products
under this Section 6.4(c), no royalty shall be payable by DSM to Martek on the same ARA Products
pursuant to Section 6.4(b).

6.5. Invoices and Payment. 

(a) DSM shall invoice Martek for each Martek Purchase Order no earlier than the date on which
such order is delivered EXW, and Martek shall remit all payments due to DSM within thirty (30) days
following the later of (i) the invoice date for such shipment and (ii) the receipt by Martek of a
signed certificate of analysis from DSM relating to such shipment, provided that the total
aggregate amount of unpaid invoices during any given month shall not at any time exceed 150% of the
average monthly total invoices sent by DSM to Martek during the three (3) months immediately
preceding such month. During the period from January 1, 2010 through December 31, 2014, DSM’s
invoices to Martek shall reflect * of the Agreed Price in US Dollars and * of the Agreed Price in
Euros as set forth in Section 6.1 (and Martek shall pay DSM’s invoices in such currencies) and
illustrated in Schedule 6.2-B. For invoices relating to 2009, the parties shall reconcile the
actual amounts paid in order to reflect * of the Agreed Price paid in US Dollars and * of the
Agreed Price paid in Euros as set forth in Section 6.1 and illustrated in Schedule 6.2-A. DSM
shall charge Martek interest (from the due date of the payment until the date such payment is
actually received by DSM) on payments that are more than fifteen (15) days late at an annualized
rate of interest equal to the Euribor rate in effect as of the first day of such quarter plus three
percent (3%).

(b) Martek shall invoice DSM for each DSM Purchase Order no earlier than the date on which
such order is delivered EXW, and DSM shall remit all payments due to Martek within thirty (30) days
following the later of (i) the invoice date for such shipment and (ii) the receipt by DSM of a
signed certificate of analysis from Martek relating to such shipment. All ARA Products upon which
Martek Services have been performed will be billed and paid for in US Dollars. Martek shall charge
DSM interest (from the due date of the payment until the date such payment is actually received by
Martek) on payments that are more than fifteen (15) days
late at an annualized rate of interest for each quarter equal to the Euribor rate in effect as
of the first day of such quarter plus three percent (3%).

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

51

 

(c) Amounts due from one party to the other pursuant to Section 7.2(b)(iv)(B) shall be paid
within forty-five (45) days following the end of the relevant calendar quarter.

(d) Except as otherwise expressly provided herein, all amounts to be paid by a party to the
other under this Restated Agreement shall be due and payable within thirty (30) days of the invoice
date in respect thereof. All amounts due and payable and not paid within the applicable grace
period shall bear interest for each quarter or portion thereof at an annualized rate of interest
equal to the Euribor rate in effect as of the first day of such quarter plus three percent (3%),
calculated from the due date of the payment until the date such payment is actually received by the
receiving party.

6.6. Interest Charges for Inventory. 

Either party may request from time to time that the other party maintain an inventory of ARA
Products for the sole purpose of fulfilling Martek Purchase Orders or DSM Purchase Orders, as
applicable. If a party agrees to maintain such inventory, then such party shall charge the
requesting party interest on the Agreed Price or fees for Martek Services as set forth in Section
6.4, as applicable, that would be paid for such inventory for the period that such party maintains
such inventory at an annualized rate of interest equal to the average Euribor rate plus three
percent (3%) for such period.

6.7. Margin Protection. 

(a) Martek and DSM shall share data on Gross Profits on sales of ARA Products and future
expectations of declines in Gross Profit per Unit of ARA. Notwithstanding anything in this Restated
Agreement to the contrary, if the average Gross Profit per Unit of ARA in US Dollars received by
Martek and its Affiliates on sales of a Unit of ARA falls below the DSM Mark Up per Unit of ARA for
a period of *, Martek shall give DSM prompt written notice thereof, whereupon the parties agree
that the DSM Mark Up per Unit of ARA shall be reduced as of the day of notification to an amount
that would be equal to the average Gross Profit in US Dollars received by Martek and its Affiliates
on sales of a Unit of ARA after the adjustment for such reduction in the DSM Mark Up per Unit of
ARA. If the average Gross Profit per Unit of ARA in US Dollars received by Martek and its
Affiliates on sales of a Unit of ARA recovers to at least the level of the DSM Mark Up per Unit of
ARA in any subsequent calendar quarter, Martek shall give DSM prompt written notice thereof,
whereupon the parties agree that the full DSM Mark Up per Unit of ARA shall be restored as of the
date of such notification.

(b) For purposes of calculating Martek’s Gross Profit in this Section 6.7, (i) Martek agrees
that it will not include in the calculation any ARA Products sold by Martek to its customers at a
reduced price as an incentive for the Martek customers to purchase other Martek products and (ii)
to the extent that the ARA Products are Blended Products, then the Gross Profit
per Unit of ARA in such ARA Products will be determined by multiplying (A) the Gross Profit in
US Dollars received by Martek and its Affiliates on sales of the Blended Product by (B) a fraction
where the numerator is the number of Units of ARA in the Blended Product and the denominator is the
total number of units of fatty acids in the Blended Product, but in no event shall such amount be
less than the Gross Profit on ARA Products where ARA Products are sold as single product.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

52

 

6.8. Stop Loss. 

(a) If at any time from and after December 31, 2011, Martek shall have received from its
customers during the immediately preceding * period total orders of ARA Products of less than *
Units of ARA, then Martek shall have the right to deliver written notice thereof to DSM requesting
a meeting pursuant to this Section 6.8(a), in which event the parties shall promptly meet to
discuss in good faith changes that might be implemented so as to increase sales of or demand for
ARA Products and otherwise to increase the economic benefits to the parties from the Alliance. If
at any time from and after December 31, 2011, DSM shall have received from Martek during the
immediately preceding four (4) calendar quarter period an aggregate amount of DSM Mark-Up of less
than $* (which amount shall be subject to adjustment due to a DSM Shortfall, if any, as set forth
below), then DSM shall have the right to deliver written notice thereof to Martek requesting a
meeting pursuant to this Section 6.8(a), in which event the parties shall promptly meet to discuss
in good faith changes that might be implemented so as to increase the profitability of the Alliance
and otherwise to increase the economic benefits to the parties from the Alliance. The changes
referred to in the two immediately preceding sentences may include, without limitation, changes to
the location of production facilities, changes to the economic relationship between the parties,
marketing incentives or campaigns, the manufacturing of other products * and other cost-saving
and/or demand-inspiring measures, as applicable. In the event of a DSM Shortfall, the threshold
amount of $* set forth above shall be reduced, until such time as the Martek Allocation reverts
back to 40,000 Units of ARA, by an amount equal to the amount of the DSM Shortfall multiplied by
the amount of the applicable DSM Mark Up per Unit of ARA.

(b) If the parties meet as provided in Section 6.8(a) above, and at any time on or before the
* of such meeting Martek shall have received from its customers during the immediately preceding *
period total orders of ARA Products of less than * Units of ARA, then Martek shall have the right,
exercisable by delivery of written notice to DSM, to accelerate the expiration date of this
Restated Agreement to a date no earlier than the last day of the first full calendar quarter
following the date on which such written notice was delivered. If the parties meet as provided in
Section 6.8(a) above, and at any time on or before the * of such meeting DSM shall have received
from Martek during the immediately preceding * period an aggregate amount of DSM Mark-Up of less
than $* (which amount shall be subject to adjustment due to a DSM Shortfall, if any, as set forth
below), then DMS shall have the right, exercisable by delivery of written notice to Martek, to
accelerate the expiration date of this Restated Agreement to a date no earlier than the last day of
the first full calendar quarter following the date on which such written notice was delivered. In
the event of any such acceleration of the expiration date of this
Restated Agreement, all references in this Restated Agreement to December 31, 2023 shall be
deemed to be the accelerated date on which this Restated Agreement shall expire and all references
in this Restated Agreement to January 1, 2024 shall be deemed to be the day after such accelerated
date. For the avoidance of doubt, and unless otherwise provided herein, the consequences of any
such accelerated expiration shall be the same as if the Restated Agreement had expired on December,
31, 2023, including without limitation those set forth in Section 9.3 hereof. In the event of a DSM
Shortfall, the threshold amount of $* set forth above shall be reduced, until such time as the
Martek Allocation reverts back to 40,000 Units of ARA, by an amount equal to the amount of the DSM
Shortfall multiplied by the amount of the applicable DSM Mark Up per Unit of ARA.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

53

 

6.9. Review of Alliance Structure and Economics; Renegotiation of Pricing Arrangements.

Commencing no later than June 1, 2013, the parties shall review in good faith, among other
issues, the market position of ARA, competition, current and projected future ARA production costs,
cost reduction strategies, and the structure and relative economic costs and benefits to the
parties of the Alliance hereunder. The parties will review the pricing provisions of this Restated
Agreement, including the DSM Mark Up per Unit of ARA and the allocation of payments between Euros
and US Dollars, and will use good faith efforts to renegotiate such pricing and currency allocation
prior to October 31, 2014, effective as of January 1, 2015. Either party shall be entitled to have
the relevant financial information of the other party confirmed by an independent public accounting
firm reasonably acceptable to the other party. The parties agree to negotiate in good faith ways
to address any issues identified during this review to insure the future success and profitability
of the Alliance for the remainder of the term of this Restated Agreement on terms similar to those
currently in place. If renegotiation is unsuccessful as of October 31, 2014, pricing will be
changed so that the parties share equally in the Gross Profit per each Unit of ARA sold (from the
manufacture and delivery of ARA Products to its sale to a direct customer of Martek or DSM)
effective January 1, 2015 and the allocation of payments between Euros and US Dollars shall remain
as set forth in Section 6.1.

6.10. Transparency. 

The parties agree during the term of this Restated Agreement to provide each other with data
and information including copies of invoices and other relevant paperwork, to the extent reasonably
necessary to verify the parties’ respective performances under this Restated Agreement and to
substantiate the payments owed to a party by the other hereunder, including the calculation of DSM
Costs, Martek Costs, Additional Capital Assets and Approved Capital Assets. The parties shall also
share data and information relating to each party’s performance in the manufacture of ARA Products
including actual Usages, information relating to productivity (including fermentation productivity)
and efficiency of production, yields, and other such data. The types of information to be
exchanged are intended to include the types that would be exchanged as part of an audit pursuant to
Section 6.11(a), and it is understood that the types of information may vary from time to time to
reflect changes in the information requirements of the
parties. All such data and information shall be shared by the parties on a confidential
basis, annually, or quarterly if it relates to or is required for the verification of amounts owed
quarterly, reviews at quarterly meetings or a review of a party’s manufacturing performance.
Notwithstanding the foregoing, (i) a party (the “Disclosing Party”) shall have the right not to
provide to the other party (the “Requesting Party”) any data or information requested by the
Requesting Party if the Disclosing Party determines in good faith that compliance with the request
could give rise to a colorable claim that one or both of the parties have violated any applicable
law and (ii) each party shall have the right to require that any data or information requested
pursuant to this Section 6.10 (including any data or information not disclosed by a Disclosing
Party to the Requesting Party on the basis of subsection (i) hereof) be disclosed to an independent
auditor (and not to the Requesting Party) for the sole purpose of verifying the parties’
performance of and compliance with the terms of this Restated Agreement, including verifying a
party’s calculation of payments owed to it by the other; such auditor shall be selected by the
Requesting Party, subject to the approval of the Disclosing Party, such approval not to be
unreasonably withheld, and shall be prohibited from disclosing such data and information to the
Requesting Party (including such party’s employees) and the expenses of such independent auditor
shall be borne equally by the Disclosing Party and the Requesting Party.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

54

 

6.11. Books and Records. 

(a) Each party shall maintain complete and accurate records of its yields, production costs,
income, sales of ARA products, capital costs, and other information reasonably necessary to verify
that such party is complying with its obligations under this Restated Agreement and calculating
relevant amounts in accordance with the terms of this Restated Agreement. All accounting relevant
to this Restated Agreement shall be performed in accordance with generally accepted accounting
principles consistent with those methods used by the relevant party for its other businesses. The
parties each shall have the right, upon reasonable prior written notice, through an independent
public accounting firm reasonably acceptable to the other party, to examine the other party’s
books, records and accounts relating to the performance of its obligations under, or the prices to
be charged pursuant to, this Restated Agreement. Such audit right shall be exercisable by a party,
in regard to the books records and accounts related to a calendar year, by delivery of written
notice to the other party (the “Audited Party”) within six (6) months after the end of such
calendar year of its desire to have such an audit conducted; provided, however, that an Audited
Party shall have the right, exercisable by delivery of written notice to the other party, to
postpone the commencement of the audit for a maximum of 90 days to allow the Audited Party to
complete its own internal accounting review with respect to such calendar year.

(b) A party’s books, records and accounts being examined pursuant to Section 6.11(a) above
shall be deemed to be a complete and final statement of costs, fees and prices for the year subject
to audit upon delivery of such books, records and accounts to the appointed independent public
accounting firm and may not be amended, revised or supplemented at any time following such date for
purposes of such audit except for changes, either favorable or unfavorable to either party, as a
result of findings or inquiries by the appointed independent
public accounting firm. All information regarding a party’s business received in any such
examination shall be held in confidence. The expenses of such audits shall be borne by the party
requesting such audit. Any overpayment or underpayment by one party of the amounts that the other
party was entitled to receive under this Restated Agreement shall be promptly refunded to or paid
by such other party, as the case may be, with annualized interest for such period at the average
Euribor rate plus 3% calculated from the date(s) of the overpayment or underpayment until the date
of refund or payment in accordance herewith. If any such audit establishes an aggregate overbilling
or underpayment by one party during the period covered by the audit by 5% or more of the amounts to
which the other party was entitled, then such overbilled or underpaid party shall be reimbursed by
the other party for the expenses of the audit. The parties each shall be prohibited from accessing
the other party’s books, records and accounts and any privileged documents examined by the
accountant, and may receive only an accounting report from the auditor.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

55

 

6.12. Break Up Fee.

(a) In the event that, after the Restatement Effective Date, DSM desires to expand its ARA
production capacity, it shall have the right to provide Martek with a detailed proposal of such
expansion plans for Martek’s review. If Martek provides its written approval to DSM for such
proposed expansion plans as provided in Section 3.3 (“Approved Expansion Plans”), then fifty
percent (50%) of the actual capital costs of the Approved Expansion Plans (provided they are not
materially changed from those approved by Martek) shall be added to a book entry account maintained
by DSM for such purposes (the “Break Up Fee Account”). DSM shall maintain a separate subaccount of
the Break Up Fee Account for each Approved Expansion Plan. As of the Restatement Effective Date,
the parties agree that the balance of the Break Up Fee Account is zero.

(b) The balance in a subaccount of the Break Up Fee Account for an expansion shall be reduced
(but not below zero) by * ($*) for each one US Dollar ($*) of DSM Mark Up, or equivalent thereof,
received by DSM from Martek in respect of ARA Products produced from the expansion capacity that
generated such subaccount.

(c) Upon any expiration of this Restated Agreement or a termination of this Restated Agreement
by DSM for cause pursuant to Section 9.2 or 5.5 when Martek is the Notifying Party, Martek shall
pay to DSM the balance in each subaccount of the Break Up Fee Account within forty-five (45) days
of any such expiration or termination.

6.13. Considerations for Payments and Volume Commitments. 

(a) In exchange for the parties’ agreement to eliminate the Currency Savings Account and all
balances accrued therein as of the Restatement Effective Date, and in consideration of the parties’
agreement to no longer apply the Currency Savings Account methodology from and after the
Restatement Effective Date, Martek has agreed to the ARA
purchase commitments in each of calendar years 2009, 2010 and 2011 as set forth in Sections
6.1(a), 6.1(b) and 6.1(c).

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

56

 

(b) In consideration of DSM’s agreement to guarantee Usages, * ARA production * as provided in
Section 3.2(a) of this Restated Agreement and to lock-in DSM Fixed Costs per Unit of ARA and the
DSM Mark Up per Unit of ARA, each as set forth herein, Martek shall make a one-time payment to DSM
(payable in two installments) equal to €7.9 million as follows:

(c) Martek shall pay to DSM 50% of this amount, or €3.95 million, on or before the fifteenth
day following the Restatement Effective Date, by wire transfer in immediately available funds; and

(d) Martek shall pay to DSM the remaining €3.95 million on or before the thirtieth day
following the date on which DSM delivers to Martek a written request therefor, which payment date
the parties currently anticipate will be on or before August 31, 2009, and which in no event shall
be due before July 1, 2009 or after October 31, 2009.

(e) The parties agree that the above payments represent the final amount of any and all costs
due by Martek with respect to any *, including any payment obligations set forth in Article 8 of
the Heads of Agreement.

7. PRODUCT DEVELOPMENTS AND PATENTS

7.1. R&D Collaboration.

(a) The R&D Collaboration Goals. Each party acknowledges and agrees that it shall endeavor
in good faith, independent of or jointly with the other party, to use commercially reasonable
efforts to conduct research projects that have a reasonable likelihood of developing (i) new or
improved production processes for ARA Products, (ii) new or improved ARA Product formulations,
(iii) new or improved ARA Product applications which may include clinical trials, and (iv) other
ARA improvements or new developments (the “R&D Collaboration Goals”).

(b) The R&D Committee. The Committee has formed a committee which consists of four (4) members
with appropriate scientific and marketing knowledge and expertise in the area of ARA Product
production and applications and related technological areas with two (2) members to be appointed by
Martek and two (2) members to be appointed by DSM (the “R&D Committee”). Each party shall identify
one of the members that it appoints to the R&D Committee as its “R&D Leader.” If either party
decides at any time to replace its designated R&D Leader or its other R&D Committee members, it may
do so by written notice to the other party’s R&D Leader. The R&D Committee shall meet promptly
upon its appointment by the Committee, and thereafter at least quarterly, for the purpose of
defining potential research projects in furtherance of the R&D Collaboration Goals. The R&D Committee shall meet at such
place as it may reasonably select, in person or by conference call as the R&D Committee decides.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

57

 

(c) Research Project Proposals.

(i) In the fourth quarter of each calendar year of this Restated Agreement, the
parties shall exchange their respective annual R&D Plans for the following year
through the R&D Committee, for the purpose of sharing information. Each of Martek
and DSM may perform and finance their own R&D (each, a “Solely Funded ARA Research
Project”) and shall inform the other party of the topic of each Solely Funded ARA
Research Project upon the commencement of such project and promptly provide the
other party upon completion thereof with a summary of the results of such project in
anticipation of the licenses of Intellectual Property relating thereto pursuant to
Section 7.4 (a), (b), (d) and (f).

(ii) In addition, each party may recommend to the R&D Committee in its R&D Plan
research projects for possible joint funding, at each party’s sole discretion, and
any such project that is approved as provided below for joint funding (a “Jointly
Funded ARA Research Project”) shall be described in a detailed project plan
(including project management details). Upon unanimous R&D Committee recommendation
for joint funding, each proposed joint research project will be submitted to the
Committee for final written approval. Both parties shall provide reports on the
progress of any Jointly Funded ARA Research Project and the results thereof to the
R&D Committee on a quarterly basis.

(d) R&D Costs. Each party shall be responsible for its own R&D costs. The parties acknowledge
that DSM shall not include any costs of DSM R&D in the DSM Costs billed to Martek unless expressly
agreed by Martek in advance in writing and Martek shall not include any costs of Martek R&D in the
Martek Costs billed to DSM unless expressly agreed by DSM in advance in writing. The costs
involved in an approved Jointly Funded ARA Research Project shall be shared equally, unless
otherwise agreed to by the Committee in writing and any corresponding payment reconciliations shall
be made on a yearly basis.

(e) Outsourced R&D Activities. Any work to be performed at Martek as part of DSM’s R&D
activities will be based only on outsourcing by DSM and performed only at DSM’s initiative on terms
mutually agreed in writing. Any work to be performed at DSM as part of Martek’s R&D activities
will be based only on outsourcing by Martek and performed only at Martek’s initiative on terms
mutually agreed in writing.

(f) R&D Intellectual Property Rights from R&D Plans. The parties’ respective Intellectual
Property rights in any inventions, improvements, Know-how, or technologies invented or created in the course of performance of any Jointly Funded ARA
Research Project are set forth in Section 7.2(b) hereto.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

58

 

(g) R&D Intellectual Property Rights from Solely Funded ARA Research Projects. The
Intellectual Property rights in any inventions, improvements, Know-how or technologies invented or
created in the course of performance of any Solely Funded ARA Research Project shall be owned, as
between the parties hereto, by the party that funded such project, and patent rights filed and/or
obtained thereon and owned by Martek shall be deemed Martek R&D Patents and patent rights filed
and/or obtained thereon and owned by DSM shall be deemed DSM R&D Patents.

7.2. Intellectual Property Rights. 

(a) Validity of Certain Patents of the Parties. From the Effective Date of the Alliance to
the stated expiration date of this Restated Agreement (regardless of any earlier termination),

(i) DSM acknowledges and agrees that (A) Martek’s Patents (including those of
its Affiliates) listed on Schedule 2.64 (Excluded Subject Matter) and Schedule
2.108 (Martek Patents), (B) any patents that issue from the applications listed on
Schedule 2.64 or Schedule 2.108 and (C) all related family members of the patents
listed on Schedule 2.64 and Schedule 2.108 issued under the laws of any country,
shall be presumed valid and enforceable and, to the maximum extent permitted under
applicable law, DSM agrees not to, and shall cause each of its Affiliates not to,
challenge the validity or enforceability of such patents, through any legal action
or proceeding of any nature whatsoever, including, but not limited to, any action in
federal district court seeking to declare the invalidity of such patents, and

(ii) Martek acknowledges and agrees that (A) DSM’s Patents (including those of
its Affiliates) listed on Schedule 2.54 (B) any patents which issue from the
applications listed on Schedule 2.54, and (C) all related family members of the
patents listed on Schedule 2.54, issued under the laws of any country, shall be
presumed valid and enforceable and, to the maximum extent permitted under applicable
law, Martek agrees not to, and shall cause each of its Affiliates not to, challenge
the validity or enforceability of such patents, through any legal action or
proceeding of any nature whatsoever, including, but not limited to, any action in
federal district court seeking to declare the invalidity of such patents.

It is understood and agreed that Schedule 2.64 (Excluded Subject Matter), Schedule 2.54 (DSM
Patents) and Schedule 2.108 (Martek Patents) may be amended and updated from time to time after the
Restatement Effective Date with the written consent of the parties to include patent rights filed,
acquired or licensed by each of the parties or to delete patents that the parties agree
are no longer valid. Upon inclusion on any such Schedule, such patent rights shall be removed from
any other definition of a set of patent rights for purposes of this Restated Agreement. It is
further understood and agreed that a Notifying Party that challenges the scope of a Responding
Party’s patents, but not their validity or enforceability, pursuant to Section 5.5 will not be
deemed to be in violation of this Section.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

59

 

(b) R&D Intellectual Property Rights. Subject to the licenses granted in Sections 7.4(a),
7.4(b), 7.4(d) and 7.4(f) hereto, Intellectual Property rights in any inventions, improvements, or
technologies conceived or reduced to practice during the term of this Restated Agreement pursuant
to a Jointly Funded ARA Research Project (“New R&D Inventions”) shall be as follows:

(i) Any patent and/or patent application filed by a Patent Proponent Party (as
defined below) in accordance with Section 7.3(a)(ii) shall be owned solely by the
Patent Proponent Party (“Martek R&D Patents” or “DSM R&D Patents,” as the case may
be).

(ii) Subject to clause (i) above, the parties shall jointly own any patents or
patent applications that may be filed or issue on any New R&D Inventions (each party
having an equal and undivided one half ownership interest without a right of
accounting, except as expressly provided herein) (“Joint Patents”) and all other
Intellectual Property rights in New R&D Inventions regardless of which parties’
employees invented or created such New R&D Invention (“Joint Know-how”). Each party
shall, and shall cause its employees, consultants, and contractors to, execute any
and all documents required in order that each party shall own and, if applicable,
shall be registered as the owner of the New R&D Invention in accordance with Section
7.2(b). All rights in and to the New R&D Inventions shall be subject to this
Restated Agreement.

(iii) For the avoidance of doubt, during the term of this Restated Agreement
(A) each of Martek and its Affiliates shall have (1) the exclusive right to use all
Joint Proprietary Technology within the Martek ARA Fields of Use, (2) the
non-exclusive right to use all Joint Proprietary Technology outside of the DSM ARA
Fields of Use subject to Section 7.2(b)(iv)(A), and (3) no right to use, make or
have made, offer to sell, sell, import, or otherwise exploit, or permit others to
use, make or have made, offer to sell, sell, or otherwise exploit the Joint
Proprietary Technology in DSM’s ARA Fields of Use and (B) each of DSM and its
Affiliates shall have (1) the exclusive right to use all Joint Proprietary
Technology within the DSM ARA Fields of Use, (2) the non-exclusive right to use all
Joint Proprietary Technology outside of the Martek ARA Fields of Use subject to
Section 7.2(b)(iv)(A), and (3) no right to use, make or have made, offer to sell,
sell, import, or otherwise exploit, or permit others to use, make or have made,
offer to sell, sell, or otherwise exploit the Joint Proprietary Technology in
Martek’s ARA Field of Use. Notwithstanding the foregoing, except as expressly
set forth in Section 9.3, nothing contained in this Restated Agreement shall extend
DSM’s rights to the Excluded Subject Matter outside the DSM ARA Fields of Use.
Moreover, unless expressly agreed upon by the parties, subject to Section 10.4
hereto, nothing herein shall be deemed to grant either party any rights in any
trademarks or previously existing copyrighted work of the other party,
notwithstanding the use of such materials in any Jointly Funded ARA Research
Project. Notwithstanding the foregoing neither party shall sublicense Production
Technology without the other party’s prior written consent except pursuant to
Sections 3.3(a), 3.4(c), and 5.5(d).

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

60

 

(iv) If either party is in serious negotiations with a non-Affiliate third
party regarding the sublicensing of its rights to the Joint Proprietary Technology
in an area where it has non-exclusive rights to such Joint Proprietary Technology in
accordance with Section 7.2(b)(iii)(A)(2) or 7.2(b)(iii)(B)(2) (“Sublicensable
Technology”), such party shall provide written notice to the other party of such
negotiations. If such party decides to sublicense its rights pursuant to such
negotiations (such party to hereinafter be referred to as the “Sublicensing
Requester”), then the Sublicensing Requester must provide the other party prior
written notice summarizing the proposed sublicensing arrangement for the
Sublicensable Technology (“Sublicensing Notice”).

(A) The non-requesting party shall have the right to prevent such
sublicense by (1) within thirty (30) days of receiving the Sublicensing
Notice, notifying the Sublicensing Requester of its disapproval of the
sublicense and its desire to have the exclusive right to sublicense the
Joint Proprietary Technology outside the DSM ARA Fields of Use and the
Martek ARA Fields of Use and (2) committing within thirty (30) days of the
determination of the fair-market value (“FMV”) of such exclusive right to
pay to the Sublicensing Requester the FMV, which is to be determined
pursuant to agreement of the parties or pursuant to Section 8.6 if agreement
is not reached within ten (10) days.

(B) If the non-requesting party does not notify the Sublicensing
Requester of its disapproval within thirty (30) days from receiving the
Sublicensing Notice or does not pay the FMV of the sublicense to the
Sublicensing Requester within thirty (30) days from determination of the FMV
amount, the Sublicensing Requester shall have the right to proceed with such
sublicense on substantially the same terms and conditions as set forth in
the Sublicensing Notice and the Sublicensing Requester shall pay the other
party, as applicable, (1) * of the Net Revenues the Sublicensing Requester
receives from the sublicensee which are not the result of the Sublicensing
Requester selling a product to the sublicensee, and (2) * of the Net
Sales the Sublicensing Requester receives from the sublicensee which are the
result of the Sublicensing Requester selling a product to the sublicensee, provided, however, that such
total amount shall not exceed * of the Sublicensing Requester’s Gross Profit
on such sales.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

61

 

(C) If the non-requesting party does not exercise its right to obtain
exclusive rights to the Sublicensable Technology as set forth in Section
7.2(b)(iv)(A) and the Sublicensing Requester proceeds with the sublicensing
arrangement for the Sublicensable Technology as set forth in the
Sublicensing Notice, the Sublicensing Requester does not need to follow the
procedures set forth in Section 7.2(b)(iv) again if it desires to enter into
another sublicensing arrangement for the same Sublicensable Technology;
however, if the Sublicensing Requester does not proceed with the
sublicensing arrangement as set forth in the Sublicensing Notice and then
subsequently desires to sublicense the same Sublicensable Technology to
another potential sublicensee, the Sublicensing Requester must follow the
procedures set forth in Section 7.2(b)(iv) again, including issuing a new
Sublicensing Notice.

7.3. Prosecution, Maintenance and Enforcement. 

(a) Prosecution and Maintenance of New R&D Patents.

(i) To the extent that a party desires to file an application for a patent
claiming or describing a New R&D Invention, the party seeking to file the
application shall inform the other party of its desire to file for patent protection
and submit a request to the R&D Committee for permission to file the application for
such invention. If a majority of the R&D Committee members are unable to agree on
whether to pursue patent protection at all or in any particular jurisdiction, the
matter shall be referred to the Committee, which shall make a final determination
whether to file the application. In the event that the R&D Committee or the
Committee, as the case may be, decides to pursue patent protection for a particular
invention in one or more jurisdictions, the R&D Committee or the Committee, as the
case may be, shall, designate the party with the most knowledge of the New R&D
Invention (as determined by the unanimous agreement of the R&D Committee or the
Committee, as the case may be) as the lead party (“Lead Party”) who will take
primary responsibility for the preparation, filing, prosecution, and maintenance of
any patents related to such New R&D Invention (“Patent Protection Process”). The
non-lead party shall provide all reasonable cooperation and assistance in connection
with the Patent Protection Process. The Lead Party will ensure that the non-lead
party is kept informed of the status of and has an opportunity to review and comment
on all aspects of the Patent Protection Process, including, but not limited to,
copying the non-lead party on all patent related communications such as patent

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

62

 

applications, office actions, and responses and allowing the non-lead party not less than ten (10)
business days to review and comment upon the specifications, claims, and
responses to office actions prior to their submission to the appropriate patent
office. The Lead Party shall use all reasonable efforts to incorporate and address
the non-lead party’s comments. Notwithstanding the foregoing, final decisions
regarding the specification claims and responses to office actions shall be made by
the Lead Party. The applications shall be prepared, filed and prosecuted, and
maintenance fees paid through an attorney or agent chosen by the Lead Party. Except
as set forth in Section 7.3(a)(ii) below, each party shall pay fifty percent (50%)
of all expenses incurred hereafter pursuant to the Patent Protection Process
(“Patent Expenses”) according to the following procedure. On a quarterly basis the
Lead Party will provide the non-lead party with an invoice for Patent Expenses
reporting the amount of Patent Expenses incurred, the purpose of incurring such
Patent Expenses, and the amount of Patent Expenses owed by the non-lead party. The
non-lead party will reimburse on a quarterly basis the Lead Party within thirty (30)
days of receiving an invoice for Patent Expenses from the Lead Party. If the Lead
Party anticipates extraordinary expenses arising from the Patent Protection Process,
then the Lead Party will provide the non-lead party with full details and together
the parties will determine a mutually acceptable course of action prior to incurring
such expenditures. Both parties recognize that one party may incur certain legal
expenses regarding the New R&D Invention and/or patent rights relating to matters
pertaining solely to such party, and, in such circumstances, such expenses will not
be considered Patent Expenses, unless otherwise decided by the Committee. The Lead
Party will maintain adequate records showing all Patent Expenses incurred, which
will be made available to the non-lead party upon reasonable notice.

(ii) Notwithstanding Section 8.5 or Section 8.6, in the event that the
Committee is deadlocked on whether to file a patent application for a particular New
R&D Invention in one or more jurisdictions (i.e., where half of the Committee
members are in favor of pursuing patent protection and half the Committee members
are opposed), the party whose Committee members voted in favor of pursuing patent
protection (the “Patent Proponent Party”) shall have the right to independently file
a patent application covering such invention at its own costs and expense, and the
other party shall provide all reasonable cooperation and assistance in connection
therewith, including without limitation, ensuring that any of its employees who may
be inventors under such patent application shall be joined as inventors thereto, and
shall cause such employees to assign in writing their entire interest in such
invention to the Patent Proponent Party. In such event, the patent shall be treated
as an Improvement made by the Patent Proponent Party and shall be subject to the
license provisions of Section 7.4(d). Notwithstanding the foregoing, any decisions
by the Patent Proponent Party regarding whether to pursue patent protection or the
scope of the applicable patent claims being sought shall take into consideration the
legal and commercial interests of the other party, including without limitation the
other party’s interest in avoiding disclosure of
confidential information or technology in connection with its activities in
their respective ARA Fields of Use.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

63

 

(iii) If, in one or more countries, (A) the Lead Party shall at any time decide
not to prepare, file, prosecute or maintain any such patent application for any such
New R&D Invention or (B) either party does not pay its share of the expenses related
to the foregoing matters (in either situation, the “Declining Party”), the other
party may, at its own expense, prepare, file, prosecute or maintain any such patent
application in such country or countries. In such event, the Declining Party hereby
assigns its interest in and to the New R&D Invention (but only with respect to such
country or countries as applicable) underlying such patent application, and such
application in such country or countries to the other party and such party hereby
grants the Declining Party a license under such patents in accordance with the
parties’ respective rights in Sections 7.4(a), 7.4(b), 7.4(d) and 7.4(f).

(b) Independent Enforcement. Notwithstanding anything to the contrary herein, each party
shall have the right at any time to enforce independently, at its own cost and expense and in the
manner as it chooses in its sole discretion, any rights to Intellectual Property * (the party
pursuing or seeking to pursue such enforcement action is hereinafter referred to as the “Enforcing
Party”). The party that is not the Enforcing Party shall provide all reasonable cooperation in
connection with any actions permitted to be taken by the Enforcing Party pursuant to this Section
7.3(b) in connection with pursuing a suspected infringer in the Enforcing Party’s ARA Fields of
Use, including without limitation allowing itself to be joined as a party to any lawsuit brought by
the Enforcing Party against such infringer, provided that the Enforcing Party compensates the other
party for any costs reasonably associated therewith. Any such action shall be subject to the other
terms and conditions set forth herein.

(c) Enforcement. Each party agrees to promptly notify the other party * of any suspected
infringement of any patent or other rights to Intellectual Property (other than trademark rights)
of either party that relates to ARA, including without limitation any patent covering any New R&D
Inventions. Promptly upon notification of a suspected infringement, * evaluate whether to take any
action against such suspected third party infringer. In evaluating whether to pursue a particular
suspected third party infringer, * act in good faith and shall consider *, including without
limitation, the cost of pursuing the claim, the likelihood that either party will become the
subject of a counterclaim, the relative likelihood of success of the claims to be asserted and the
possible effects on the patent rights at issue. In the event that * decides that a particular
action should be taken against the suspected third party infringer, the parties shall cooperate to
promptly undertake such action. Such action may include * or other action aimed at causing
cessation of the infringement by the third party. Unless * the party in whose ARA Field of Use the
infringing activity is occurring shall be responsible for all costs associated with any such
action. In the event that the suspected infringement is occurring in both party’s ARA Fields of
Use, the parties shall share the costs of such action in proportion to the ARA related profits
derived by each party at or around the time of the suspected infringement. In the
event that one of the parties wishes to settle the dispute with the suspected infringer that
would not involve the complete and unqualified cessation of the suspected infringing activity, *,
neither party shall, without the prior consent of the other party, grant any license to, or enter
into a prospective settlement agreement with, the suspected infringing party.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

64

 

(d) Proceeds of Infringement Actions. The Enforcing Party shall be entitled to all proceeds
from any independent action taken by it in accordance with Section 7.3(b) hereto. In the event an
award of monetary damages is granted in an action with respect to * in connection with actions
taken in accordance with * hereto, the parties shall apply the award as follows: Initially the
award shall be used to reimburse the parties for their actual out-of-pocket expenses (including
attorneys fees) that have been incurred by or in connection with such action, provided that if the
award is insufficient to reimburse both parties for all of their out of pocket expenses, the award
shall be distributed in proportion to each party’s relative expenses in connection with the
action. Once the parties have been reimbursed for their respective out of pocket expenses, the
remaining portions of the award shall be divided between the parties, within thirty (30) days after
collection of the award, in proportion to the lost profits of each party resulting from the
infringement in accordance with whichever of the following formulas is appropriate under the
circumstances:

(i) Proceeds from Infringement Actions *.

(1) *

(ii) Proceeds from Infringement Actions *.

(1) *

It is the intent of the parties that the foregoing formulas will estimate the lost profits
suffered by each party by the infringing activity.

(e) Defensive Patent Actions. Notwithstanding anything to the contrary herein, in the event
that either party to this Restated Agreement becomes a defendant in any lawsuit in any
jurisdiction, the defendant party shall have the right, in its entire and sole discretion, to bring
a counter-claim or counter-suit based on the infringement of any Joint Patent against any party to
the extent that such counter-claim or counter-suit is reasonably likely to cause or bring about a
settlement of the dispute to which the party to this Restated Agreement has become a defendant.
The defendant party shall notify the other party in writing of its intention to exercise its right
under the immediately preceding sentence and such other party shall provide all necessary
cooperation and assistance, at the requesting party’s cost and expense, associated with the
defendant party’s counterclaim or counter-suit.

(f) Prosecution and Maintenance of Patents arising from Solely Funded ARA Research Projects.
Notwithstanding anything to the contrary set forth in this Restated Agreement, a party shall have
the sole right to file, prosecute and maintain patent rights claiming
inventions invented or created in the course of the performance of such party’s Solely Funded
ARA Research Projects.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

65

 

7.4. Intellectual Property Licenses. 

(a) License of Martek Proprietary Technology. Subject to the provisions of Section 9.3,
Martek hereby grants to DSM an exclusive (including as to Martek), worldwide, non-assignable,
sublicensable (to the extent permitted in Section 7.4(c) below) license under the Martek
Proprietary Technology, the Martek R&D Patents, the Excluded Subject Matter and Martek Improvements
to make, use, have made, import, sell and offer for sale ARA Products and ARA Products combined
with other products in the DSM ARA Fields of Use and to make ARA Products for delivery to Martek
and to perform Extraction and RBD processing, in each case only to the extent permitted herein;
provided, however, that Martek and its Affiliates shall have the right to utilize any Martek
Proprietary Technology, Martek R&D Patents, the Excluded Subject Matter and Martek Improvements in
the DSM ARA Fields of Use (i) that Martek and its Affiliates utilize in providing Martek Services
to DSM as of the Restatement Effective Date, or (ii) that DSM may from time to time after the
Restatement Effective Date authorize Martek and its Affiliates to utilize, in each case in
connection with the provision by Martek and its Affiliates of Martek Services to DSM and its
Affiliates as requested by DSM. The foregoing license shall be royalty-bearing solely as provided
in Article 6 hereof. DSM hereby guarantees that each of its Affiliates and any Third Party Toll
Manufacturer that shall become a sublicensee of DSM pursuant to Section 7.4(c) of this Restated
Agreement with respect to the Martek Proprietary Technology, Excluded Subject Matter, Martek R&D
Patents and/or Martek Improvements shall abide by the restrictions set forth in this Restated
Agreement in respect of any such sublicensed Martek Proprietary Technology, Excluded Subject
Matter, Martek R&D Patents and/or Martek Improvements.

(b) License of DSM Proprietary Technology. Subject to the provisions of Section 9.3, DSM
hereby grants to Martek an exclusive (including as to DSM), worldwide, non-assignable,
sublicensable (to the extent permitted in 7.4(c) below) license under the DSM Proprietary
Technology, the DSM R&D Patents and DSM Improvements to make, use, have made, import, sell and
offer for sale ARA Products and ARA Products combined with other products in the Martek ARA Fields
of Use and to perform Extraction and RBD services, in each case only to the extent permitted
herein; provided, however, that DSM and its Affiliates shall have the right to utilize any DSM
Proprietary Technology, DSM R&D Patents and DSM Improvements in the Martek ARA Fields of Use (i)
that DSM or its Affiliates utilize in providing services to Martek as set forth in this Restated
Agreement as of the Restatement Effective Date, or (ii) that Martek may from time to time after the
Restatement Effective Date authorize DSM or its Affiliates to utilize, in each case in connection
with the provision by DSM or its Affiliates of services to Martek and its Affiliates as requested
by Martek. The foregoing license shall be royalty-bearing solely as provided in Article 6 herein.
Martek hereby guarantees that each of its Affiliates and any Third Party Toll Manufacturer that
shall become a sublicensee of Martek pursuant to Section 7.4(c) of this Restated Agreement with
respect to the DSM Proprietary Technology, DSM R&D Patents and/or DSM Improvements shall abide by the
restrictions set forth in this Restated Agreement in respect of any such sublicensed DSM
Proprietary Technology, DSM R&D Patents and/or DSM Improvements.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

66

 

(c) Toll Manufacturers and Affiliates; Sublicenses; Other Rights of Martek’s Customers.

(i) Except as set forth in Sections 7.4(c)(iii) and (v), the licensed rights in
Sections 7.4(a) and 7.4(b) above and Sections 7.4(d) and 7.4(f) below may be
sublicensed by a party to its Affiliates but may not be sublicensed by such party to
any third party, including Third Party Toll Manufacturers, without the prior written
consent of the other party; provided, however, (i) in the event of a DSM Shortfall,
Martek shall be entitled to sublicense the licensed rights granted in Sections
7.4(b) and Section 7.4(d) to one or more Third Party Toll Manufacturers in
accordance with the requirements of Section 3.3(a) for the sole purpose of
responding, and only for so long as necessary to respond, to such DSM Shortfall and
(ii) in the event of a Martek Shortfall, DSM shall be entitled to sublicense the
licensed rights granted in Sections 7.4(a), 7.4(d) and 7.4(f) to one or more Third
Party Toll Manufacturers in accordance with the requirements of Section 3.4(c) for
the sole purpose of responding, and only for so long as necessary to respond, to
such Martek Shortfall.

(ii) For the avoidance of doubt, DSM hereby acknowledges that any Person that,
directly or indirectly, purchases or acquires ARA Product manufactured by DSM,
Martek or any Third Party Toll Manufacturer and sold by Martek or its Affiliates
during the term of this Restated Agreement, whether alone or in combination with
other products, shall not require a sublicense of the DSM Patents, the DSM R&D
Patents, and/or the DSM Improvements in order to use, offer to sell and/or sell such
ARA Product within the Martek ARA Fields of Use, whether by itself or as
incorporated with or into another product. DSM hereby covenants not to assert, or
permit or cause any other Person to assert, during the term of this Restated
Agreement any rights under any DSM Patent(s), DSM R&D Patent(s) and/or DSM
Improvements, to the extent applicable to the manufacture, use, offer to sell, sale
or importation of ARA Products and licensed to Martek under Section 7.4(b) or
Section 7.4(d), against any Person in connection with such Person’s direct or
indirect purchase of ARA Product manufactured by DSM, Martek or any Third Party Toll
Manufacturer pursuant to such DSM Patent(s), DSM R&D Patent(s), and/or DSM
Improvements and sold by Martek or its Affiliates, whether alone or in combination
with other products, provided that such Person uses, sells, offers for sale or
imports such ARA Product, whether by itself or incorporated with or into another
product, only within the Martek ARA Fields of Use. *.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

67

 

(iii) Further, during the term of this Restated Agreement, if reasonably
requested by a Person that, directly or indirectly, purchases or acquires ARA
Product manufactured by DSM, Martek, or any Third Party Toll Manufacturer and sold
by Martek or its Affiliates during the term of this Restated Agreement, whether
alone or in combination with other products, Martek may * for such Person’s use,
offer to sell and/or sale of such ARA Product provided that (A) such Person uses,
offers to sell and/or sells such ARA Product, whether by itself or incorporated with
or into another product, only within the Martek ARA Fields of Use, and provided
further that; (B) Martek represents to DSM in writing * that: (1) Martek will not
charge *, a fee * for ARA Products * and (2) Martek will not *, and (3) Martek will
not condition * accept prices higher than those that Martek or its Affiliates would
otherwise charge for products other than ARA Products, and (4) Martek has in fact
not taken any action as described in (1), (2) or (3) above with respect to any
customer *; and (C) Martek provides DSM prompt written notice of *.

(iv) Martek hereby acknowledges that any Person that, directly or indirectly,
purchases or acquires ARA Product manufactured by DSM, Martek or any Third Party
Toll Manufacturer and sold by DSM or its Affiliates during the term of this Restated
Agreement, whether alone or in combination with other products, shall not require a
sublicense of the Martek Patents, the Martek R&D Patents, and/or the Martek
Improvements in order to use, offer to sell and/or sell such ARA Product within the
DSM ARA Fields of Use, whether by itself or as incorporated with or into another
product. Martek hereby covenants not to assert, or permit or cause any other Person
to assert, during the term of this Restated Agreement any rights under any Martek
Patent(s), Martek R&D Patent(s) and/or Martek Improvements, to the extent applicable
to the manufacture, use, offer to sell, sale or importation of ARA Products and
licensed to DSM under Section 7.4(a), or Section 7.4(d), against any Person in
connection with such Person’s direct or indirect purchase of ARA Product
manufactured by DSM or any Third Party Toll Manufacturer pursuant to such Martek
Patent(s), Martek R&D Patent(s) and/or Martek Improvements and sold by DSM or its
Affiliates, whether alone or in combination with other products, provided that such
Person uses, sells, offers for sale or imports such ARA Product, whether by itself
or incorporated with or into another product, only within the DSM ARA Fields of Use.
*.

(v) Further, during the term of this Restated Agreement, if reasonably
requested by a Person that, directly or indirectly, purchases or acquires ARA
Product manufactured by DSM, Martek, or any Third Party Toll Manufacturer and sold
by DSM or its Affiliates during the term of this Restated Agreement, whether alone
or in combination with other products, DSM may * for such person’s use, offer to
sell, and/or sale of such ARA Product provided that : (A) such Person uses, offers
to sell and/or sells such ARA Product, whether by itself or incorporated into
another product, only within the DSM ARA Fields of Use,
and provided further that (B) DSM represents to Martek in writing * that: (1)
DSM will not charge *, a fee *that DSM would otherwise charge* for ARA Products *
and (2) DSM will not *, (3) DSM will not condition * accept prices higher than those
that DSM or its Affiliates would otherwise charge for products other than ARA
Products, and (4) DSM has in fact not taken any action as described in (1), (2) or
(3) above with respect to any customer *; and (C) DSM provides Martek prompt written
notice of *.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

68

 

(d) Improvements. A “DSM Improvement” shall mean (i) any improvement or enhancement to the DSM
Proprietary Technology, the Martek Proprietary Technology, the Excluded Subject Matter, the DSM R&D
Patents, the Martek R&D Patents or any New R&D Inventions or (ii) any other innovation, process or
technique that, in the case of either (i) or (ii), is created by DSM or any of its Affiliates
before or during the term of this Restated Agreement, or licensed to DSM or any of its Affiliates
by a third party licensor during the term of this Restated Agreement with the right to grant a
sublicense thereunder to Martek and/or its customers, that DSM or Martek or any of their respective
Affiliates demonstrates (through its own application to the production, processing, use or sale of
ARA Products or otherwise) in fact does improve, or reduce the costs associated with, the
production, processing, use or sale of ARA Products. DSM shall provide Martek reasonable
assistance at Martek’s expense in determining whether such improvement, enhancement, innovation,
process or technique in fact does improve, or reduce the costs associated with, the production,
processing, use or sale of ARA Products and therefore is a DSM Improvement, including allowing the
use of such improvement, enhancement, innovation, process or technique to enable Martek to make
such determination. A “Martek Improvement” shall mean (i) any improvement or enhancement to the
DSM Proprietary Technology, the Martek Proprietary Technology, the Excluded Subject Matter, the DSM
R&D Patents, the Martek R&D Patents or any New R&D Inventions or (ii) any other innovation, process
or technique that, in the case of either (i) or (ii), is created by Martek or any of its Affiliates
before or during the term of this Restated Agreement, or licensed to Martek or any of its
Affiliates by a third party licensor during the term of this Restated Agreement with the right to
grant a sublicense thereunder to DSM and/or its customers, that Martek or DSM or any of their
respective Affiliates demonstrates (through its own application to the production, processing, use
or sale of ARA Products or otherwise) in fact does improve, or reduce the costs associated with,
the production, processing, use or sale of ARA Products. Martek shall provide DSM reasonable
assistance at DSM’s expense in determining whether such improvement, enhancement, innovation,
process or technique in fact does improve, or reduce the costs associated with, the production,
processing, use or sale of ARA Products and therefore is a Martek Improvement, including allowing
the use of such improvement, enhancement, innovation, process or technique to enable DSM to make
such determination. Any disagreement between the parties as to whether an improvement,
enhancement, innovation, process or technique is in fact a “DSM Improvement” or a “Martek
Improvement” shall be a Disputed Fact and shall be resolved pursuant to the provisions of Section
8.6. “Improvements” shall mean the “DSM Improvements” and the “Martek Improvements,” collectively,
and “Improvement” shall mean any particular DSM Improvement or Martek Improvement, as required by
the context. In the event that it is determined that a party or its Affiliates has created an
Improvement, such party shall promptly disclose and transfer pursuant to Section 7.5 information and materials
regarding such Improvements to the other party. With respect to all Improvements that are not New
R&D Inventions, it is acknowledged and agreed that each party has granted to the other party,
effective as of the date that such Improvement is or was created or acquired, a license to such
Improvement as provided in Sections 7.4(a), 7.4(b) and 7.4(f).

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

69

 

(e) DHA License.

(i) DSM hereby grants to Martek a royalty free, non-exclusive, non-assignable,
non-sublicensable license under the DSM Patents to make, use, sell, offer for sale and import
products that include DHA and/or other microbial oils not otherwise subject to licenses pursuant to
Section 7.4(b) (“DHA Product”) for the term of this Restated Agreement and thereafter to the extent
provided in Section 9.3; provided, however, that the license granted herein shall become royalty
bearing at fair market value in the event DSM terminates this Restated Agreement pursuant to
Section 9.2(a) or 9.2(b). Any such royalties shall be payable as set forth herein, or in the
absence of an alternate arrangement, on an annual basis within forty-five (45) following the end of
each calendar year.

(ii) For the avoidance of doubt, DSM hereby acknowledges and agrees that any Person that,
directly or indirectly, purchases or acquires DHA Product manufactured and/or sold by Martek or its
Affiliates shall not require a sublicense of the DSM Patents in order to use and/or sell such DHA
Products in any field of use, whether alone or incorporated into another product. DSM and its
Affiliates hereby covenant not to assert, or permit or cause any other Person to assert, any rights
under any DSM Patent licensed to Martek under this Section 7.4(e) against any Person (i) that,
directly or indirectly, purchases or acquires DHA Product manufactured by Martek, any of its
Affiliates, or a Third Party Toll Manufacturer and (ii) that uses, sells, offers for sale or
imports such DHA Product, alone or in combination with other products. Except as otherwise set
forth in Section 7.4(c)(ii) and 7.4(c)(iv), it is understood and agreed that DSM shall retain all
rights to assert, and to cause any other Person to assert, any rights under any DSM Patent licensed
to Martek or otherwise against any Person that purchases DHA Product manufactured by any Person
other than Martek or its Affiliates.

(f) Additional DSM License. In addition to the licenses granted to DSM in Section 7.4(a), and
subject to the provisions of this Section 7.4(f) and Section 9.3, Martek hereby grants to DSM an
exclusive (including as to Martek), worldwide, non-assignable, sublicensable (to the extent
permitted in Section 7.4(c)) license under the Martek Proprietary Technology, the Martek R&D
Patents, the Excluded Subject Matter, and Martek Improvements to make (only with respect to Biomass
or as otherwise permitted in Section 3.4(a) or (b)), use, import, sell and offer for sale ARA
Products and ARA Products combined with other products for the following ARA Applications for
Adults:

(i) *;

(ii) *; and

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

70

 

(iii) such other areas agreed to in writing between the parties. DSM shall
request any such additional areas in writing and Martek shall notify DSM in
writing within 3 months from delivery of DSM’s written request whether it
agrees to grant any such additional rights for ARA Applications for Adults
to DSM. In the event Martek fails to deliver written notice to DSM within
such 3-month period denying DSM the rights requested, Martek shall be deemed
conclusively to have approved such request. In case Martek denies in writing
any such additional rights for ARA Applications for Adults to DSM, Martek
will provide reasons for such denial in writing to DSM.

For the avoidance of doubt, the exclusive license granted to Martek pursuant to Section 7.4(b)
under DSM Intellectual Property shall be deemed modified solely to the extent necessary to allow
DSM to practice the license granted to DSM in this Section 7.4(f). The foregoing ARA Applications
for Adults to which DSM is granted a license hereunder are hereinafter referred to as the “DSM
Adult ARA Applications,” each customer purchasing an ARA Product (alone or in combination with
another product) from DSM or one of its Affiliates for a DSM Adult ARA Application is hereinafter
referred to as a “DSM Adult Application Customer” and any ARA Product sold by DSM or one of its
Affiliates for use in a DSM Adult ARA Application is hereinafter referred to as a “DSM Adult ARA
Product.”

It is understood and agreed that (i) DSM shall not be required to deliver the notice specified in
Section 5.2 of this Restated Agreement to any DSM Adult Application Customer that purchases only a
DSM Adult ARA Product and (ii) no DSM Adult Application Customer shall be deemed to be an Out of
Scope Customer for purposes of Section 5.2 solely because it purchases a DSM Adult ARA Product. In
lieu of the requirements set forth in Section 5.2, DSM shall notify each DSM Adult Application
Customer prior to any sale to such a customer of a DSM Adult ARA Product that (a) the DSM Adult ARA
Products sold to such DSM Adult Application Customer are subject to Intellectual Property licenses
that prohibit such customer from selling or using such DSM Adult ARA Products for any application
other than a DSM Adult ARA Application and (b) such DSM Adult Application Customer will not be able
to purchase DSM Adult ARA Products from DSM or any of its Affiliates if any sale or use by such DSM
Adult Application Customer of such DSM Adult ARA Products is outside the DSM Adult ARA Applications
and (c) such DSM Adult Application Customer must label all products which incorporate such DSM
Adult ARA Product as being for use only within the relevant DSM Adult ARA Application unless such
DSM Adult ARA Application is a * in which case this clause (c) shall not apply to consumer products
within such *.

For each such sale, DSM shall provide a detailed report to Martek within forty-five (45) days
following the end of each calendar quarter which shall at least include the product name, the DSM
Adult Application Customer’s name, the intended application and the total Units of ARA sold. The
parties shall cooperate in good faith to identify any DSM Adult Application Customer that uses or
sells DSM Adult ARA Products purchased from DSM in an application other than a
DSM Adult ARA Application and DSM shall promptly stop sale of DSM Adult ARA Products to any DSM
Adult Application Customer who violates the restrictions specified above.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

71

 

7.5. Technology Transfers. 

(a) Technology Transfer to DSM. Within thirty (30) days after the discovery of any Martek
Improvement by Martek, Martek shall transfer information and materials relating to such Improvement
to DSM pursuant to the following procedure: (i) Martek shall transfer to DSM documents and any
biological material relating to the relevant Martek Improvement, completing such transfer within
one hundred eighty (180) days after the discovery date, (ii) Martek shall use its commercially
reasonable efforts to assist DSM to exploit the Martek Improvement as soon as reasonably
practicable, and (iii) Martek shall provide to DSM technology services, in the case of (ii) or
(iii) in accordance with the applicable Transfer Procedures, if any. DSM shall compensate Martek
for any out-of-pocket costs reasonably incurred by Martek in connection with such transfer. Martek
hereby represents and warrants to DSM that (x) the Martek Proprietary Technology, Martek
Improvements and such technology services constitute all of the Intellectual Property and
technology services of Martek and its Affiliates reasonably necessary to enable DSM to exercise its
rights under the licenses granted to it in Section 7.4(a) and (d) and (y) Martek has the right to
grant all licenses granted hereunder to DSM, subject to the disclaimer in Section 4.9(c) and
subject to the rights referred to in Section 6.1(i) of certain of Martek’s Infant Formula Product
customers to produce or have produced ARA Products.

(b) Technology Transfer to Martek. Within thirty (30) days after the discovery of any DSM
Improvement by DSM, DSM shall transfer information and materials relating to such Improvement to
Martek pursuant to the following procedure: (i) DSM shall transfer to Martek documents and any
biological material relating to the relevant DSM Improvement, completing such transfer within one
hundred eighty (180) days after the Signing Date, (ii) DSM shall use its commercially reasonable
efforts to assist Martek to exploit the DSM Improvement as soon as reasonably practicable, and
(iii) DSM shall provide to Martek technology services, in the case of (ii) or (iii) in accordance
with the applicable Transfer Procedures, if any. Martek shall compensate DSM for any
out-of-pocket costs reasonably incurred by DSM in connection with such transfer. DSM hereby
represents and warrants to Martek that (x) the DSM Proprietary Technology, DSM Improvements and
such technology services constitute all of the Intellectual Property and technology services of DSM
and its Affiliates reasonably necessary to enable Martek to exercise its rights under the licenses
granted to it in Section 7.4(b) and (d) and (y) DSM has the right to grant all licenses granted
hereunder to Martek, subject to the disclaimer in Section 4.9(c).

(c) Audit Rights. Both parties shall, during the course of this Restated Agreement, maintain
complete and accurate records, files, books, accounts, and other documents and sources of
information related to the Know-how utilized in the manufacture of ARA Products (“Know-how
Records”), including, but not limited to, records related to standard operating procedures, system
validation, and tests performed. Either party may, upon its request,
during reasonable business hours and after reasonable advance notice to the other party,
inspect the other party’s facilities for compliance with this Restated Agreement, and to inspect,
copy, and audit the Know-how Records. The parties agree to cooperate with such audits, including
providing all reasonable assistance in connection therewith, and promptly remedy any audit findings
that relate to the parties’ compliance with this Restated Agreement. The licensed rights granted
in this Section 7.5(c) and any discrepancies identified in the course of any such audit shall be
remedied as provided in Section 6.11(b) hereof.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

72

 

7.6. Protection of Other Joint Intellectual Property. 

(a) In addition to the Intellectual Property protections set forth above, the parties hereby
agree that, promptly following the execution of this Restated Agreement, appropriate
representatives from each party shall meet and otherwise work together to develop and implement an
active and proactive program (i) of reviewing Know-how and other Intellectual Property developed
since the Effective Date of the Alliance that is necessary or useful in connection with the
activities conducted by the parties hereunder, and (ii) of taking all reasonable measures and
precautions so as to assure that such Intellectual Property is sufficiently protected against third
party claims, inadvertent disclosure and other actions that could jeopardize the value of such
Intellectual Property and the ability of the parties to utilize such Intellectual Property. The
parties agree that such active and proactive program may include, without limitation, filing for
and obtaining patent protection of such Intellectual Property where appropriate and advisable.

(b) Within ninety (90) days following the Restatement Effective Date, the R&D Committee shall
agree in writing on a list of potentially patentable Intellectual Property jointly developed or
conceived by the parties after the Effective Date of the Alliance and prior to the Restatement
Effective Date. All Intellectual Property included on such list as mutually agreed shall be jointly
owned and shall be deemed New R&D Inventions for purposes of this Restated Agreement and shall be
subject to the provision of Sections 7.2(b), 7.3(a) and *.

(c) Notwithstanding any provision in this Restated Agreement to the contrary, in the event a
party wishes to file an application for a patent that discloses or requires the disclosure of
Confidential Information of the other party, the prior written approval of such other party is
required.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

73

 

8. ORGANIZATION (COMMUNICATION, COMMITTEES)

8.1. Formation of the Committee. 

(a) The parties acknowledge that they have formed a steering committee (the “Committee”) which
consists of four (4) members: two (2) appointed by Martek and two (2) appointed by DSM. The
Committee shall function on the basis set forth in this Article 8.

(b) Each party shall identify one of the team members it has appointed as its “Leader.” In
addition to its four (4) members, each party may send non-participating, nonvoting observers to
each meeting of the Committee. If either party decides at any time to replace its designated
Leader or its other Committee member, it may do so by written notice to the other party’s Leader.
The Committee shall have the authority to appoint other committees charged with responsibility for
the performance of certain functions under this Restated Agreement, including without limitation
R&D, production and logistics, intellectual property matters, and quality assurance/quality
control. The Committee shall have authority over any committee formed pursuant to this Section 8.1
and veto rights over any committee decision, provided, however, that the Committee shall not be
required to review all committee decisions. Any such committee shall be obligated to report to the
Committee at the quarterly meeting of the Committee. Any committee decision involving a financial
matter shall require the unanimous approval of the Committee.

8.2. Meetings of the Committee. 

The Committee shall meet at such times and places as it may select and it shall endeavor to
meet at least once per calendar quarter. Meetings of the Committee shall be in person, by
conference call, by proxy or a combination thereof, as the Committee decides. Each party shall
have one (1) vote in the Committee. Decisions of the Committee shall be by a unanimous vote. The
decisions and agreements of the Committee shall be formalized in minutes which shall be signed by
each party’s Leader at the next meeting for confirmation.

8.3. Status Reports of the Committee. 

The Leaders shall report to each other quarterly, or as otherwise mutually agreed upon,
regarding any anticipated problems (resolved or unresolved) and any indication of delay in fixed or
tentative schedules. The Leaders shall also report to each other as circumstances require
regarding any special issues, including production problems or unexpected developments in each
party’s ARA Fields of Use.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the
Securities Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission

 

74

 

8.4. Scope of the Committee Meetings. 

(a) The Committee shall be responsible for overseeing the collaboration under this Restated
Agreement, for monitoring the parties’ adherence to the terms hereof and for agreeing on or
determining any matters that are to be agreed on or determined by the Committee pursuant to this
Restated Agreement. In particular, the Committee shall, in good faith, address,
among other things, the following: (i) financial matters; (ii) production matters, including
proposed or actual changes to either party’s production processes and review of any forecast for
purposes of capacity planning and determination of the Units of ARA per year for use in connection
with new product and/or new ARA Fields of Use development in accordance with Section 5.3; (iii)
quality assurance and quality control matters, including discussion, consideration and approval of
the Specifications and any changes proposed to either of the foregoing to the extent consistent
with Section 4.3; (iv) the procedures for transferring technology between the parties (the
“Transfer Procedures”); (v) patent matters; and (vi) sales and marketing matters.

(b) It is understood and agreed that the Committee shall have the authority to determine the
Specifications acceptable for new ARA Products. The Committee shall have the authority to make
appropriate changes that are reasonable in nature, taking into account all the facts and
circumstances, to the preparation and submission of any forecasts and the procedures for shipment
and order fulfillment set forth herein with respect to any new ARA Products that are subject to the
terms of this Restated Agreement.

8.5. Deadlock Within a Committee. 

In the event of a deadlock with respect to any factual or scientific matter (a “Disputed
Fact”) within any committee formed by the Committee, including the R&D Committee, or any Disputed
Issue the committee shall take such Disputed Fact or Disputed Issue to the Committee for
resolution.

8.6. Deadlock Within the Committee Over Factual Matters. 

(a) In the event of a deadlock within the Committee with respect to any Disputed Fact, either
Leader may deliver a written request to the other Leader that the Disputed Fact be resolved by one
or more third party experts. The Leaders shall use their good faith commercially reasonable
efforts to agree upon a single third party expert to resolve the Disputed Fact within fifteen (15)
days of such written request. If a single third party expert is agreed upon within such period,
such expert shall have a period of no more than thirty (30) days following his or her appointment
during which to reach a conclusion with respect to the Disputed Fact. The conclusion of the third
party expert with respect to the Disputed Fact shall be in writing and shall be final and binding
on the Committee and the parties.

(b) If the Leaders have not reached agreement on a single third party expert within such
fifteen (15) day period, then each Leader shall have five (5) days following the expiration of such
fifteen (15) day period within which to appoint one third party expert unaffiliated with either of
the parties or any of their respective Affiliates, and the two third party experts so appointed
shall, in turn, appoint a third, third party expert unaffiliated with either of the parties or any
of their respective Affiliates within twenty (20) days of the later of them to be appointed. The
conclusion of a majority of the third party experts with respect to the Disputed Fact shall be in
writing and shall be final and binding on the Committee and the parties.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the
Securities Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission

 

75

 

(c) It shall be a condition of the appointment of each third party expert appointed in
accordance with the provisions of this Section 8.6 that he or she agree (i) to abide by the terms,
including the time periods, in this Section 8.6 and (ii) to enter into a nondisclosure agreement
acceptable to the parties pursuant to which he or she agrees to treat all information that he or
she receives, reviews or otherwise is made aware of in connection with a proceeding under this
Section 8.6 in the strictest of confidence.

(d) The parties shall share equally all costs associated with the appointment of any third
party expert pursuant to this Section 8.6.

8.7. Deadlock Within the Committee Over Non-Factual Matters. 

In the event of a deadlock within the Committee with respect to any matter other than a
factual or scientific matter (a “Disputed Issue”), either Leader may deliver a written request to
the other Leader that the Leaders attempt to resolve the Disputed Issue with the assistance of a
neutral mediator. The Leaders shall use their good faith commercially reasonable efforts to agree
upon a mediator within fifteen (15) days of such written request. Such mediator shall, within ten
(10) days of the appointment, recommend in writing a procedure for resolving the Disputed Issue.
The members of the Committee shall use their good faith efforts to resolve the Disputed Issue with
the assistance of the mediator. Notwithstanding the foregoing, any member of the Committee shall
be free to reject the recommendation, if any, of the mediator. Either party shall be entitled to
have any Disputed Issue resolved by arbitration pursuant to Section 10.5.

8.8. External Communication. 

Neither party shall release any communication to the general public (including any press
release or other publication) without the consent of the other party (such consent not to be
unreasonably withheld) where it would be reasonably apparent to a third party recipient of such
communication that the communication makes reference to such other party, whether by name or
otherwise, or to any material term of this Restated Agreement. The party reviewing the
communication shall have ten (10) days from the receipt of the proposed communication to review and
approve such communication, or any shorter period required by disclosure obligations under
applicable law or the listing standards of any stock exchange or listing service on which the
communicating party’s securities are quoted. The reviewing party shall be told of any such shorter
period in writing at the time such communication is submitted for review, and the party requesting
approval for such release shall submit the proposed communication to the reviewing party promptly
upon its intention to release such communication. If the reviewing party does not notify the other
party within such ten (10) day period (or shorter period, if applicable) of its disapproval of the
communication, in whole or in part, the communication shall be deemed approved in its entirety.
Notwithstanding the foregoing, where time is of the essence and it would not be practical or
advisable to take the time to attempt to obtain the consent of the other party, a party making such
communication shall not be required to obtain the consent of such other party where outside legal
counsel to the party
making such communication reasonably believes and has so advised such party that such
communication is necessary in the carrying out of its disclosure obligations under applicable law
or the listing standards of any stock exchange or listing service on which the communicating
party’s securities are quoted. The final version of the communication as well as the confirmation
of such outside legal advice will be promptly provided to the other party for information.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the
Securities Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission

 

76

 

9. TERM; TERMINATION; DAMAGES

9.1. Term. 

The term of this Restated Agreement commenced upon the Effective Date of the Alliance, with
amendments effected by this Restated Agreement effective as of the Restatement Effective Date, and
shall remain in effect until and expire at 11:59 p.m. GMT on December 31, 2023 unless terminated
earlier in accordance with Section 5.5 or this Article 9.

9.2. Termination for Cause. 

(a) In the event that:

(i) It shall be determined, (A) whether by arbitration pursuant to Section 10.5
or by admission of fault in writing with reference to this Section 9.2(a), (1) that
DSM is deemed pursuant to the third sentence of Section 5.2 to have breached the
provisions of Section 5.2 where the Out Of Scope Customer is selling ARA Products
for use in, or using ARA Products for, Infant Formula Product applications or (2)
that DSM or any of its Affiliates has breached this Restated Agreement by selling
ARA Products containing in excess of two hundred (200) Units of ARA for use in
Infant Formula Product applications except as authorized by Section 5.5, or (B)
whether by arbitration pursuant to Section 10.5 or by admission of fault in writing
with reference to this Section 9.2(a), (1) that Martek is deemed pursuant to the
third sentence of Section 5.2 to have breached the provisions of Section 5.2 where
the Out Of Scope Customer is selling ARA Products for use in, or using ARA Products
for, Feed Products or (2) that Martek or any of its Affiliates has breached this
Restated Agreement by selling ARA Products containing in excess of two hundred (200)
Units of ARA for use in Feed Products except as authorized by Section 5.5 (any of
which, a “Section 9.2(a) Material Breach” and the party determined to have committed
such Section 9.2(a) Material Breach, the “Infringing Party”); and

(ii) The other party (the “Infringed Party”) delivers written notice to the
Infringing Party stating that if the Infringing Party again commits the same Section
9.2(a) Material Breach a second time that the Infringed Party might exercise its
right to terminate this Restated Agreement pursuant to this Section 9.2(a) (which
shall not be a binding commitment on the part of the Infringed Party); and

(iii) It shall be determined, whether by arbitration pursuant to Section 10.5
or by admission of fault in writing with reference to this Section 9.2(a), that the
Infringing Party has committed the same Section 9.2(a) Material Breach a second time
at any time following the date ninety (90) days after the date of delivery of the
notice described in Section 9.2(a)(ii) but prior to the date three (3) years after
the determination by arbitration or by admission of fault described in Section
9.2(a)(i);

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the
Securities Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission

 

77

 

then the Infringed Party shall have the right to terminate this Restated Agreement effective on
delivery of written notice to the Infringing Party within one hundred twenty (120) days following
the date on which such second determination shall have been made.

If the Infringing Party continues to engage in the activity or inactivity that constitutes a
Section 9.2(a) Material Breach for more than thirty (30) days (or such longer period as the parties
may agree in writing) after the date on which it shall be determined by arbitration or admission of
fault pursuant to Section 9.2(a)(i) that such activity or inactivity constituted a Section 9.2(a)
Material Breach, such continued activity or inactivity shall constitute a second breach of this
Restated Agreement by the Infringing Party for the purposes of Section 9.2(a)(iii). For the
avoidance of doubt, the failure by the Infringing Party to cure a Section 9.2(a) Material Breach
that, by its very nature, cannot be cured shall not in and of itself constitute a second breach of
this Restated Agreement for purposes of this Section 9.2(a).

(b) In the event that:

(i) It shall be determined, whether by arbitration pursuant to Section 10.5 or
by admission of fault in writing with reference to this Section 9.2(b),

(A) that a party (the “Breaching Party”) failed to perform a material
obligation or covenant of this Restated Agreement that results in the other
party’s suffering material damages (a “Material Failure”) or otherwise
breached a material term of this Restated Agreement that results in the
other party’s suffering material damages (a “Material Breach”), other than a
Section 9.2(a) Material Breach, and

(B) that such Material Failure or Material Breach continued without
being ceased, cured, remedied or repaired for a period of thirty (30) days
after written notice thereof had been given to the Breaching Party by the
other party (the “Non-Breaching Party”);

(ii) Thereafter, the Non-Breaching Party delivers written notice to the
Breaching Party stating that if the Breaching Party commits the same Material
Failure or the same Material Breach a second time within a period of three (3) years
after the determination by arbitration or by admission of fault described in Section
9.2(b)(i), that the Non-Breaching Party might exercise its right to
terminate this Restated Agreement pursuant to this Section 9.2(b) (which shall
not be a binding commitment on the part of the Non-Breaching Party); and

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the
Securities Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission

 

78

 

(iii) It shall be determined, whether by arbitration pursuant to Section 10.5
or by admission of fault in writing with reference to this Section 9.2(b), (A) that
the Breaching Party committed the same Material Failure or the same Material Breach
a second time following the date of delivery of the notice described in Section
9.2(a)(ii) but within the three (3) year period set forth therein and (B) that such
Material Failure or Material Breach continued without being ceased, cured, remedied
or repaired for a period of thirty (30) days after written notice thereof had been
given to the Breaching Party by the Non-Breaching party;

then the Non-Breaching Party shall have the right to terminate this Restated Agreement effective on
delivery of written notice to the Breaching Party within one hundred twenty (120) days following
the date on which such second determination shall have been made. It is understood and agreed that
if the Breaching Party continues to engage in the activity or inactivity that constitutes a
Material Failure or a Material Breach pursuant to Section 9.2(b)(i) for more than sixty (60) days
(or such longer period as the parties may agree in writing) after the date on which it shall be
determined by arbitration or admission of fault pursuant to Section 9.2(b)(i) that such activity or
inactivity constituted a Material Failure or Material Breach, such continued activity or inactivity
shall be considered for the purposes of Section 9.2(b)(iii) as committing the same Material
Failure or Material Breach a second time. For the avoidance of doubt, the failure by the Breaching
Party to cure a Material Failure or Material Breach that, by its very nature, cannot be cured shall
not in and of itself constitute a second breach of this Restated Agreement for purposes of this
Section 9.2(b).

(c) In addition, in the event that either party (i) generally does not pay its debts as such
debts become due, (ii) admits in writing its inability to pay its debts generally, (iii) makes an
assignment for the benefit of creditors, (iv) commences a voluntary case under the federal
bankruptcy laws, as now or hereafter constituted, or any other federal, state or foreign
bankruptcy, insolvency or other similar law, (v) consents to the appointment of or taking
possession by a receiver, liquidator, trustee, custodian, or sequestrator (or other similar
official) of such party or of any substantial part of its property, or (vi) takes board or
shareholder action intended or likely to result in any event described in clauses (i) through (vi)
of this subsection, or in the event there shall be entered in respect of either party a decree or
order for relief by a court having jurisdiction in the premises in an involuntary case under the
federal bankruptcy laws, as now or hereafter constituted, or any other applicable federal, state or
foreign bankruptcy, insolvency or other similar law, or appointing a receiver, liquidator, trustee,
custodian, or sequestrator (or other similar official) of such party or of any substantial part of
its property, or ordering the winding up or liquidation of its affairs, and any such decree or
order shall continue unstayed in effect for a period of sixty (60) consecutive days, then
the other party (and the other party only) shall have the right to terminate this Restated
Agreement.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the
Securities Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission

 

79

 

9.3. Effect of Expiration and Termination on Intellectual Property Rights. 

(a) Expiration. Upon expiration of this Restated Agreement, notwithstanding anything
to the contrary set forth in this Restated Agreement but except as may be limited by third party
licensors or otherwise as described below in this Section 9.3(a), the parties intend that each
party shall be entitled to utilize the same set of Intellectual Property licensed to it hereunder
as of the date of expiration in order to make, use, have made, import, sell or offer for sale any
ARA Products, alone or combined with other products, in any market or field, including without
limitation the Martek ARA Fields of Use and the DSM ARA Fields of Use and, with respect to Martek,
DHA Products, without accounting to the other party. For the avoidance of doubt, however,
following the expiration of this Restated Agreement, each party shall thereafter be free to develop
new Intellectual Property, including improvements to then-existing Intellectual Property, and the
other party shall have no rights hereunder to such new Intellectual Property. Accordingly,
notwithstanding anything to the contrary set forth in this Restated Agreement, upon expiration (but
not termination) of this Restated Agreement, it is understood and agreed as follows:

(i) (A) each exclusive license granted pursuant to Article 7 of this Restated
Agreement shall survive in full force and effect but shall automatically convert to
a non-exclusive license, and each non-exclusive license granted pursuant to Article
7 shall survive in full force and effect in perpetuity and shall remain
non-exclusive, (B) the rights to use Joint Proprietary Technology set forth in
Article 7 shall survive in full force and effect but shall automatically convert
from partially exclusive rights to non-exclusive rights, shall become royalty-free,
shall no longer be limited to specific fields of use and may be used in any market
or field, and shall be nonsublicenseable (except as set forth in Section 9.3(a)(ii)
below); and (C) each of Martek and DSM hereby grants to the other party a perpetual,
nonexclusive, worldwide, nonassignable, royalty-free and nonsublicenseable (except
as set forth in Section 9.3(a)(ii) below) license under its Surviving IP (as defined
in Section 9.3(a)(iii)) to make, use, have made, import, sell and offer for sale ARA
Products, alone or combined with other products, in any market or field or location
to the extent not provided in (A) or (B) above.

(ii) Each party shall be entitled to grant a sublicense of the other party’s
rights in any Surviving IP only to its Affiliates and to third party toll
manufacturers, and neither party shall have the right to grant a sublicense to any
other third party without the prior written consent of the other party;
provided, however, that third parties that purchase ARA Products that are
sold by Martek or DSM shall have the right to use such products in any manner for
which they were sold.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the
Securities Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission

 

80

 

(iii) “Surviving IP” shall mean DSM Proprietary Technology, Martek Proprietary
Technology, Joint Proprietary Technology, DSM R&D Patents,
Martek R&D Patents, Improvements and Excluded Subject Matter, either as owned
by a party or its Affiliates or licensed to a party by a third party licensor with
the right to grant rights or a sublicense thereunder to the other party, all as of
the date of expiration of this Restated Agreement (or earlier date of termination),
including any Intellectual Property that would fall within one of the aforementioned
capitalized defined terms as of the date of expiration of this Restated Agreement
(or earlier termination date) if the parties had fully complied with their
obligations hereunder and regardless of whether it has been previously disclosed or
added to a corresponding schedule as contemplated by this Restated Agreement;
provided that, in the event this Restated Agreement shall be terminated
pursuant to Section 9.2(a) or (b) and Martek is the Infringed Party, the Excluded
Subject Matter shall continue to be subject to the limitations set forth in Section
7.2(b)(iii) through December 31, 2023. The parties shall jointly identify all
Surviving IP in accordance with the following procedure: Commencing no later than
ninety (90) days prior to the date of expiration (or earlier termination) of this
Restated Agreement and to be completed no later than ninety (90) days after the date
of such expiration (or earlier termination), the parties will jointly conduct a
thorough review to determine all Intellectual Property owned by each party, or to
which each party has rights as licensee or otherwise, to determine whether it meets
the definition of “Surviving IP,” and prepare the list of Surviving IP clearly
identifying each party’s ownership and/or license or other interest therein.

(iv) For clarity, the non-exclusive license granted pursuant to Section 7.4(e)
shall survive in perpetuity and remain a non-exclusive license in accordance with
the restrictions of Section 7.4(e).

(b) For Cause. In the event of a termination of this Restated Agreement for cause in
accordance with Section 9.2(a), Section 9.2(b), Section 9.2(c) or Section 5.5 hereof, the
Infringing Party, the Breaching Party, the insolvent party to which Section 9.2(c) applies, and the
Notifying Party, as applicable, shall be referred to as the “Triggering Party” and the Infringed
Party, the Non-Breaching Party, the party to whom Section 9.2(c) does not apply, and the Responding
Party, as applicable, shall be referred to as the “Non-Triggering Party.” Notwithstanding anything
to the contrary set forth in this Restated Agreement, upon the effective date of such termination
for cause in accordance with Sections 9.2(a), (b) or (c) or Section 5.5, the Triggering Party’s and
Non-Triggering Party’s rights in Intellectual Property shall be as follows:

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the
Securities Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission

 

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(i) Triggering Party: (A) each exclusive license granted to the
Triggering Party pursuant to Article 7 of this Restated Agreement shall survive in
full force and effect but shall automatically convert to a non-exclusive license,
and each non-exclusive license granted pursuant to Article 7 shall survive in full
force and effect in perpetuity and shall remain non-exclusive, (B) the rights of
the Triggering Party to use Joint Proprietary Technology set forth in Article 7
shall remain in effect but shall automatically convert from partially exclusive
rights to
non-exclusive rights, shall become royalty-free, shall be limited to fields of
use outside of the Non-Triggering Party’s ARA Fields of Use and shall be
nonsublicenseable (except as set forth below), and (C) the Non-Triggering Party
hereby grants to the Triggering Party a nonexclusive, worldwide, nonassignable,
royalty-free (except as otherwise provided in Section 9.4(b)(iii) and Section
7.4(e)), and nonsublicenseable (except as set forth below) license under its
Surviving IP to make, use, have made, import, sell and offer for sale ARA Products,
alone or combined with other products, limited to the Triggering Party’s ARA Fields
of Use to the extent not provided in (A) or (B) above.

Notwithstanding anything to
the contrary herein, from and after January 1, 2024, the Triggering Party’s rights
and licenses under the Surviving IP shall be as set forth for the parties in Section
9.3 (a), and not this Section 9.3(b)(i).

The Triggering Party shall be entitled to grant a sublicense under the
Non-Triggering Party’s Surviving IP to its Affiliates and to third party toll
manufacturers, but only to third party toll manufacturers for purposes of the
Triggering Party’s ARA Fields of Use; provided, that third parties that
purchase ARA Products that are sold by the Triggering Party shall have the right to
use such products in any manner for which they were sold in accordance with the
terms of this Restated Agreement. The Triggering Party shall not have the right to
grant a sublicense or similar rights to any other third party without the prior
written consent of the Non-Triggering Party.

(ii) Non-Triggering Party: (A) each exclusive license granted to the
Non-Triggering Party pursuant to Article 7 of this Restated Agreement shall survive
in full force and effect and shall remain an exclusive license until January 1,
2024, at which time it shall convert to a non-exclusive license, and each
non-exclusive license granted pursuant to Article 7 shall survive in full force and
effect in perpetuity and shall remain non-exclusive, (B) the rights of the
Non-Triggering Party to use Joint Proprietary Technology set forth in Article 7
shall remain in effect and exclusive for the Non-Triggering Party’s ARA Fields of
Use until January 1, 2024, at which time it shall convert to a non-exclusive
license, shall become royalty-free, shall no longer be limited to specific fields of
use, may be used in any market or field, and the right to sublicense will not
require any consent pursuant to Section 7.2(b)(iii), and (C) the Triggering Party
hereby grants to the Non-Triggering Party a worldwide, nonassignable, royalty-free
and nonsublicenseable (except as set forth below) license under its Surviving IP to
make, use, have made, import, sell and offer for sale ARA Products, alone or
combined with other products in any market or field to the extent not provided in
(A) or (B) above; provided that (i) the license to the Surviving IP granted
to the Non-Triggering Party shall be an exclusive license (including as to the
Triggering Party) with respect to the Non-Triggering Party’s ARA Fields of Use and a
non-exclusive license with respect to all other fields of use including the
Triggering Party’s ARA Fields of Use in each case until January 1, 2024, or for the
life of the
respective patent, if earlier. From January 1, 2024, the Non-Triggering Party’s
rights and licenses under the Surviving IP shall be as set forth for the parties in
Section 9.3(a) and not this Section 9.3(b)(ii).

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the
Securities Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission

 

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The Non-Triggering Party shall be entitled to grant a sublicense of the
Triggering Party’s Surviving IP to its Affiliates and to third party toll
manufacturers in all fields of use; provided, that third parties that
purchase ARA Products that are sold by the Non-Triggering Party shall have the right
to use such products in any manner for which they were sold. The Non-Triggering
Party shall not have the right to grant a sublicense or similar rights to any other
third party without the prior written consent of the Triggering Party.

(iii) In the event this Restated Agreement is terminated pursuant to Section
5.5, the Notifying Party’s and the Responding Party’s rights and licenses under the
Surviving IP shall be governed by the provisions of Section 9.3(a) as though this
Restated Agreement had expired, with effect as of the effective date of such
termination (subject to any waiting period imposed by Section 5.5 upon a party’s
right to commence sales in the other party’s Fields of Use).

(iv) In the event of a termination of this Restated Agreement the non-exclusive
license granted pursuant to Article 7.4(e) shall survive in perpetuity in accordance
with the restrictions of Section 7.4(e).

(v) In furtherance of the foregoing, promptly following any termination of this
Restated Agreement for cause, the Triggering Party and the Non-Triggering Party
shall jointly conduct a thorough review of the Intellectual Property that each party
owns and to which it has rights as licensee or otherwise to determine which
Intellectual Property constitutes Surviving IP and prepare the list of Surviving IP
clearly identifying each party’s ownership interest or license rights therein, all
as further provided in Section 9.3(a)(iii).

(c) Effect on Research Projects. Upon the expiration or termination of this Restated
Agreement pursuant to Section 5.5, or for cause pursuant to Section 9.2, unless the parties
otherwise agree in writing, all ongoing research projects undertaken in accordance with Section 7.1
hereto shall immediately terminate. Each party shall cooperate with the other party to exchange
information and materials related to any ongoing research project, and shall fully inform the other
party of any results from such research project not already disclosed to the R&D Committee.

(d) Certain Intellectual Property Rights. Notwithstanding anything to the contrary in
this Restated Agreement, upon the expiration or termination of this Restated Agreement, each party
shall have the exclusive right to enforce any rights to Intellectual Property that it owns
exclusively and the non-exclusive right to enforce any rights to Intellectual Property that it owns
jointly with the other party.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the
Securities Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission

 

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9.4. Other Effects of Termination; Damages; Cap. 

(a) It is understood and agreed by the parties that, in the event Martek fails to perform any
obligation or covenant or otherwise breaches any term of this Restated Agreement or if DSM
exercises any right it may have to terminate this Restated Agreement pursuant to Section 9.2(a) or
Section 9.2(b), DSM shall be entitled to damages sufficient to place DSM in as good a position as
it would have been in if there had been no breach or termination and this Restated Agreement had
been fully performed, taking into consideration the net amount of losses caused and gains
prevented, in excess of the savings made possible, by the breach or termination and, in calculating
such damages as they relate to lost DSM Mark Up in the event DSM exercises any such right to
terminate this Restated Agreement pursuant to Section 9.2(a) or Section 9.2(b), DSM’s damages based
on sales it otherwise would have made to Martek and its Affiliates through December 31, 2023 shall
be determined on the following basis:

(i) If the date of termination is prior to January 1, 2015, then DSM’s lost
profits on sales of ARA Products to Martek and its Affiliates as a result of such
termination shall be calculated based on:

(A) DSM’s Mark Up in effect at the time of termination of this
Restated Agreement for DSM’s lost sales prior to January 1, 2015; and

(B) fifty percent (50%) of Martek’s Gross Profit on its sales of
ARA Products in the Martek ARA Fields of Use, as determined pursuant
to Section 6.7, for DSM’s lost sales on and after January 1, 2015; or

(ii) If the date of termination is on or after January 1, 2015, then DSM’s lost
profits on sales of ARA Products to Martek and its Affiliates as a result of such
termination shall be calculated based on the DSM Mark Up or other pricing
arrangement in effect on the date of termination for DSM’s lost sales from and after
the date of termination through December 31, 2023.

It is understood and agreed that the amount of damages that DSM shall be entitled to claim
hereunder shall be reduced (i) by the Gross Profits that DSM derives from sales of ARA Products
into Martek ARA Fields of Use but not including Gross Profits that DSM derives from sales of ARA
Products into any Martek ARA Fields of Use where such sales are permitted by an arbitration
decision pursuant to Section 5.5 and (ii) by the DSM Gross Profits that DSM derives from
alternative utilization of its ARA production facilities, to the extent DSM could not have derived
such DSM Gross Profits had there not been such a termination of this Restated Agreement. In the
event of termination of this Restated Agreement by DSM pursuant to Section 9.2, DSM agrees to take
all commercially reasonable steps to mitigate the damages it incurs and Martek shall reimburse DSM
for all costs and expenses associated therewith. For the purposes
of this Section 9.4(a), “DSM Gross Profits” shall mean gross monies including royalties
received from the sales of products or services minus costs of goods/services sold, including but
not limited to depreciation, commissions, delivery costs, sales tax and credits for refunds and
returns directly related to such sales or services.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the
Securities Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission

 

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Martek shall pay DSM any damages determined pursuant to this Section 9.4(a) quarterly, based
on (i) the actual quantities of ARA Products Martek and its Affiliates purchase from third parties
during such quarter plus (ii) the amount of ARA Products that Martek and its Affiliates produce and
sell themselves during such calendar quarter in excess of the Martek Allocation. Martek shall
provide DSM with a written statement of such amounts within thirty (30) days following the end of
such quarter, which statement shall include payment to DSM of the amount to which DSM is entitled
with respect to lost sales during such quarter, include a detailed calculation of such amount and
shall be certified as to its accuracy by the chief financial officer of Martek. DSM shall be
entitled to have an independent accounting firm audit from time to time the relevant books and
records of Martek and its Affiliates to confirm Martek’s and Martek’s Affiliates’ compliance with
the terms hereof. Such audit shall be at the cost of DSM unless it shall reveal a not immaterial
underpayment by Martek, in which event Martek shall bear the costs of the audit in addition to
owing such underpayment to DSM.

In the event that Martek terminates this Restated Agreement pursuant to Section 9.2(a) or
Section 9.2(b), DSM covenants and agrees that neither it nor any of its Affiliates shall compete
with Martek or any Martek Affiliate for sales of ARA Products in the Martek ARA Fields of Use until
the earlier of the date three (3) years after the date of such termination and December 31, 2023.
In the event that DSM terminates this Restated Agreement pursuant to Section 9.2(a) or Section
9.2(b), Martek covenants and agrees that neither it nor any of its Affiliates shall compete with
DSM or any DSM Affiliate for sales of ARA Products in the DSM ARA Fields of Use until the earlier
of the date three (3) years after the date of such termination and December 31, 2023.

(b) It is understood and agreed by the parties that, in the event DSM fails to perform any
obligation or covenant or otherwise breaches any term of this Restated Agreement, Martek shall be
entitled to (i) damages sufficient to place Martek in as good a position as it would have been in
if there had been no breach and this Restated Agreement had been fully performed, taking into
consideration the net amount of losses caused and gains prevented, in excess of the savings made
possible, by the breach, (ii) in the event that DSM or any of its Affiliates shall sell ARA
Products into any Martek ARA Fields of Use in violation of the provisions of this Restated
Agreement, Martek’s lost profits on such sales and (iii) in the event Martek exercises any right it
may have to terminate this Restated Agreement pursuant to Section 9.2(a) or Section 9.2(b), the DSM
ARA Field of Use Royalty on DSM’s sales of ARA Products from and after the date of termination
through December 31, 2023, calculated and payable as set forth in Section 6.9.

DSM shall pay Martek any damages determined pursuant to this Section 9.4(b) quarterly. DSM
shall provide Martek with a written statement of such amounts within thirty (30)
days following the end of such quarter, which statement shall include payment to Martek of the
royalties to which Martek is entitled with respect to sales of ARA Products by DSM and its
Affiliates during such quarter, include a detailed calculation of such amount and shall be
certified as to its accuracy by the chief financial officer of DSM. Martek shall be entitled to
have an independent accounting firm audit from time to time the relevant books and records of DSM
and its Affiliates to confirm DSM’s and DSM’s Affiliates’ compliance with the terms hereof. Such
audit shall be at the cost of Martek unless it shall reveal a not immaterial underpayment by DSM,
in which event DSM shall bear the costs of the audit in addition to owing such underpayment to
Martek.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the
Securities Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission

 

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(c) Notwithstanding anything to the contrary set forth in this Restated Agreement, the total
aggregate amount that a party (a “Liable Party”) shall be liable for and required to pay to the
other party in respect of losses, damages, claims, costs or expenses (“Losses”) that are asserted
against or suffered by such other party arising out of, in connection with or based upon the breach
or failure to perform by the Liable Party of the provisions of this Restated Agreement shall not
exceed, and the Liable Party shall have no liability under this Restated Agreement for any Losses
that exceed in the aggregate one hundred fifty million US Dollars ($150,000,000) (the “Cap”).

In the event of multiple determinations of Losses against a Liable Party under this Restated
Agreement (whether by arbitration or admission of fault), the Cap on the liability of the Liable
Party for each subsequent determination of a Loss shall be equal to:

	 	(i)	 	One hundred fifty million dollars ($150,000,000);

Minus

	 	(ii)	 	The total aggregate amount of Losses that have been theretofore awarded against
the Liable Party pursuant to an arbitration procedure conducted in accordance with
Section 10.5 of this Restated Agreement plus the amount of Losses that have
been theretofore actually paid by the Liable Party to the other party in respect of
claims of breach or failure to perform by the Liable Party that are settled between the
parties without the issuance of an arbitration award.

Nothing contained in this Section 9.4(c) shall be deemed to limit in any way either party’s right
to seek provisional injunctive relief or other similar forms of provisional remedies pursuant to
Section 10.5(e) of this Restated Agreement.

(d) In the event either DSM or Martek exercises its right, if any, to accelerate the
expiration of the Restated Agreement as provided in Section 6.8(b), the provisions of Section
9.3(a) shall apply and the following shall apply:

(i) if DSM has and exercises its right to accelerate expiration of this
Restated Agreement pursuant to Section 6.8(b), then DSM covenants and agrees
that neither it nor any of its Affiliates shall compete with Martek or any
Martek Affiliate for sales of ARA Products in the Martek ARA Fields of Use until the
date that is one (1) year after the date of such accelerated expiration.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the
Securities Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission

 

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(ii) if Martek has and exercises its right to accelerate expiration of this
Restated Agreement pursuant to Section 6.8(b), then Martek shall pay to DSM (A) an
amount equal to the sum of the Undepreciated * Costs and the Undepreciated Pre-2004
Costs as of such accelerated expiration date and, (B) in the event Martek’s exercise
results directly in a DSM plant closing or layoff of DSM personnel * within six (6)
months of such expiration date, an amount equal to fees or payments imposed on or
required to be paid by DSM under federal, state or local law directly as a result of
such plant closing or personnel layoffs, if any, but not to include any amounts (1)
arising from DSM’s employee benefit plans or policies or that are in addition to any
fees imposed or required under such laws or (2) arising from DSM’s failure to give
sufficient notice under such laws.

(iii) “Undepreciated * Costs” shall mean an amount equal to the costs incurred
by DSM * for fixed assets directly and solely dedicated to ARA production for Martek
pursuant to this Restated Agreement, less the total depreciation of such assets as
set forth on Schedule 9.4(d)-1, as revised from time to time, subject to the
following: (a) the Undepreciated * Costs as of the Signing Date is to be set forth
on Schedule 9.4(d)-1, and (b) the Undepreciated * Costs shall be updated annually to
reflect the depreciation of the assets and to include costs for fixed assets
incurred after the Signing Date that are Approved Capital Assets, but shall not
include any such costs that are not Approved Capital Assets. “Undepreciated Pre-2004
Costs” shall mean an amount equal to the remaining undepreciated costs set forth on
Schedule 9.4(d)-2; and

(iv) Martek shall pay to DSM any amounts due pursuant to Section 9.4(d)(ii)
above within thirty (30) days of the accelerated expiration date or the date on
which such fees or payments are due, as applicable.

(e) In the event the parties mutually agree to *, then Martek shall pay to DSM (A) an amount
equal to *, and, (B) in the event Martek’s exercise results directly in a * within six (6) months
of such date, an amount equal to fees or payments imposed on or required to be paid by DSM under
federal, state or local law directly as a result of *, if any, but not to include any amounts (1)
arising from * or policies or that are in addition to any fees imposed or required under such laws
or (2) arising from DSM’s failure to give sufficient notice under such laws.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the
Securities Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission

 

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9.5. Limitation of Liability. 

(a) EXCEPT FOR THE LOST PROFITS PAYABLE BY MARTEK PURSUANT TO SECTION 9.4(a), LOST PROFITS
PAYABLE BY DSM PURSUANT TO SECTION 9.4(b)(ii) AND ROYALTIES PAYABLE BY DSM PURSUANT TO SECTION
9.4(b)(iii), IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR LOSS OF PROFITS
OR INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES INCURRED BY THE OTHER PARTY AND ARISING
OUT OF OR IN CONNECTION WITH THIS AGREEMENT FOR ANY CAUSE OF ACTION OF ANY KIND EVEN IF THE OTHER
PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

(b) Nothing contained in this Restated Agreement shall preclude either DSM or Martek from
asserting any claim for Losses against any third party; provided, however, that neither DSM nor
Martek shall assert any claim for Losses arising out of or in connection with this Restated
Agreement against any third party, including without limitation any subcontractor of the other
party, if and to the extent that either (i) DSM or Martek, as the case may be, shall be entitled to
assert the same claim for Losses against the other party or (ii) such other party is required,
pursuant to a legally binding obligation in effect at the time of such Losses, to indemnify such
third party against such Losses if such third party were to pay them to DSM or Martek, as the case
may be.

10. GENERAL

10.1. Non-Solicitation. 

(a) DSM agrees that, during the term of this Restated Agreement, neither it nor any of its
Affiliates shall, directly or indirectly, (i) solicit, recruit or induce, or attempt to solicit,
recruit or induce, any person who is an employee of Martek or any of its Affiliates to leave his or
her employment or engagement with Martek or any of its Affiliates or (ii) employ, hire or engage,
or cause to employ, hire or engage, any person who is or was within the previous six (6) months an
employee of Martek or any of its Affiliates, in either case without the prior written consent of
Martek; provided that general advertisements by DSM or its Affiliates for employment not directed
at employees or former employees of Martek or its Affiliates, and any employment resulting
therefrom, shall not be a violation of this Section 10.1(a).

(b) Martek agrees that, during the term of this Restated Agreement, neither it nor any of its
Affiliates shall, directly or indirectly, (i) solicit, recruit or induce, or attempt to solicit,
recruit or induce, any person who is an employee of DSM or any of its Affiliates to leave his or
her employment or engagement with DSM or any of its Affiliates or (ii) employ, hire or engage, or
cause to employ, hire or engage, any person who is or was within the previous six (6) months an
employee of DSM or any of its Affiliates, in either case without the prior written consent of DSM;
provided that general advertisements by Martek or its Affiliates for employment not directed at
employees or former employees of DSM or its Affiliates, and any employment resulting therefrom,
shall not be a violation of this Section 10.1(b).

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the
Securities Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission

 

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10.2. Confidential Information. 

The parties acknowledge and agree that each party will be disclosing confidential information
to the other party and that the parties will be developing confidential information jointly during
the term of this Restated Agreement, including but not limited to, the Specifications, know-how
(including, without limitation, all Know-how), Know-how Records, financial, marketing and business
data (if any), and cost information, business strategies, ideas, concepts, ARA Field of Use and
marketing information, financial information and Joint Proprietary Technology (the “Confidential
Information”). Each party agrees that it shall hold the Confidential Information in strict
confidence, shall not disclose it to others or use it in any way, commercially or otherwise, except
for purposes of performing its obligations or exploiting its rights under this Restated Agreement.
Each party further agrees to take all action necessary to protect the confidentiality of the
Confidential Information including, without limitation, (a) implementing and enforcing operating
procedures to minimize the possibility of unauthorized use or copying of the Confidential
Information, and (b) obligating each of its Third Party Toll Manufacturers, by written agreement,
to protect the Confidential Information. Notwithstanding this Section 10.2, the term “Confidential
Information” shall not include any information which (x) is or becomes part of the public domain
through no fault of the receiving party, (y) is obtained by the receiving party from any third
party which is under no obligation to the disclosing party to protect the confidentiality thereof,
or (z) can be established by the receiving party with reasonable documentary evidence to have been
independently developed by the receiving party without reliance on the Confidential Information.
Notwithstanding the foregoing, if a party or any of its employees or other representatives becomes
legally compelled (whether by subpoena, court order or other legal process, by any governmental
authority or by applicable law) to disclose any of the Confidential Information or the fact that
the Confidential Information has been made available to the receiving party or such employees or
representatives, the receiving party shall, to the fullest extent permitted by applicable law, give
the disclosing party an adequate opportunity, at the disclosing party’s expense, to interpose an
objection and/or to seek a protective order or such other remedy as the disclosing party may
consider appropriate in the circumstances. The receiving party shall, and shall assure that each
such employee or representative shall, disclose only that portion of the Confidential Information
that it is legally required to disclose.

10.3. Survival. 

The following provisions shall survive termination or expiration of this Restated Agreement:
Section 4.9 (Disclaimers); Section 6.1(g) (Profit Sharing Fee), but only in the event DSM
terminates this Restated Agreement pursuant to Section 9.2; Section 6.4(b) (Amounts Payable by
DSM), but only in the event Martek shall be entitled to receive the DSM ARA Field of Use Royalty
pursuant to Section 9.4(b)(iii) following the termination of this Restated Agreement; Section
6.5(d) (Invoices and Payments);Section 6.10 (Transparency) but only for a period of twelve (12)
months following the date of such termination or expiration; Section 6.11 (Books and Records) but
the obligations set forth therein shall be limited to those aspects of this Restated Agreement that
survive such termination or expiration; Section 6.12(c) (Break-Up Fee); Section 6.13 (Consideration
for Payments and Volume Commitments), but only to the extent such amounts are not paid prior to
termination ; Section 7.2(a) (Intellectual Property
Rights) but only through January 1, 2024; Section 7.3(Prosecution, Maintenance and
Enforcement), but only to the extent of any pending matters at the time of termination or
expiration; Section 7.4(e)(i) (DHA License), but only in the event the license granted thereunder
shall become royalty bearing; Section 8.8 (External Communications); Section 9.3 (Effect of
Expiration or Termination on Intellectual Property Rights); Section 9.4 (Other Effects of
Termination; Damages; Cap); Section 9.5 (Limitation of Liability); Section 10.2 (Confidential
Information); Section 10.3 (Survival); Section 10.5 (Disputes; Arbitration); Section 10.6
(Regulatory Matters); Section 10.7(a) (Assignment, Delegation and Subrogation; Insurance;
Inspection); Section 10.9 (Severability); Section 10.10 (Relationship of the Parties); Section
10.11 (Notices); Section 10.12 (Governing Law); and Section 10.15 (Entire Agreement); Sections
7.2(b), 7.4(a), 7.4(b), and 7.4(f), but only to the extent necessary to implement the parties’
intentions as set forth in Section 9.3 and Article II (Definitions), but only to the extent
necessary to give meaning to defined terms that are used in provisions referred to above.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the
Securities Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission

 

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10.4. Trademarks.

(a) Use of Martek Trademarks. During the term of this Restated Agreement, DSM shall use
Martek’s brand names and the Martek trade name, solely on Martek’s behalf and for Martek’s benefit,
on all shipments of ARA Products by DSM to Martek or any Martek customer, pursuant to delivery or
order instructions by Martek to DSM, and DSM shall not attach any additional brand names,
trademarks, trade names, logos or designations to any such shipment. DSM’s use of Martek’s brand
names and the Martek trade name shall be in accordance with Martek’s policies in effect from time
to time, as communicated by Martek to DSM. DSM shall not be authorized to use, and is expressly
prohibited from using, any Martek brand name or the Martek trade name on any shipment of ARA
Products other than a shipment subject to an order and delivery instructions submitted to DSM by
Martek.

(b) Ownership of Martek Trademarks. DSM has paid no consideration for the use of any Martek
brand name or the Martek trade name, and nothing contained in this Restated Agreement will give DSM
any right, title or interest in any of them. DSM acknowledges that Martek owns and retains all
rights in the Martek brand names and the Martek trade name. DSM will not at any time during or
after this Restated Agreement assert or claim any interest in any Martek brand name or the Martek
trade name. Upon expiration or termination of this Restated Agreement, DSM will immediately cease
all use of the Martek brand names and the Martek trade name.

(c) DSM Trademarks. In the event that Martek supplies any Crude Oil or Finished Oil to DSM in
accordance with Article 3 hereto, Sections 10.4(a) and 10.4(b) shall apply in all respects mutatis
mutandis with respect to use and ownership of DSM’s trademarks in the event that Martek uses DSM’s
brand names or trade names on shipments pursuant to delivery or order instructions from DSM.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the
Securities Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission

 

90

 

10.5. Disputes; Arbitration.

(a) Disputes Generally. The parties hereby undertake to use good faith efforts to settle any
dispute arising under this Restated Agreement. Failing settlement, all disputes, including without
limitation all unresolved Disputed Issues, claims of breach of contract, fraud in the inducement,
negligence, and any other claim of dispute related to this contract shall be finally settled in
accordance with the Rules of Conciliation and Arbitration of the International Chamber of Commerce
(the “ICC Rules”). In addition, the parties agree that the arbitration shall be conducted according
to the International Bar Association’s Rules of Evidence (the “IBA Rules”). Where the ICC Rules and
the IBA Rules are inconsistent, the IBA Rules shall prevail, but solely with respect to the
presentation and receipt of evidence. The arbitration shall take place in and the seat of the
arbitration shall be New York, New York, USA. There shall be a panel of three (3) arbitrators for
all disputes. The claimant party shall appoint an arbitrator in the arbitration petition and the
respondent party shall appoint an arbitrator in response. If within thirty (30) days after the
arbitration petition, the respondent has not appointed an arbitrator, such arbitrator shall be
appointed by the ICC. Within thirty (30) days of their confirmation, the two arbitrators shall
appoint a third arbitrator who shall preside over the arbitration panel. If the two arbitrators
cannot agree on a third arbitrator within such thirty (30) day period, the third arbitrator shall
be appointed by the ICC. The arbitrators shall, before accepting such appointment, agree to render
their decision to the parties in writing together with the underlying reasoning, including separate
statements of findings of facts and conclusions of law, no later than sixty (60) days after
completion of hearings, but in no event later than one hundred eighty (180) days from the date of
appointment of the last of the arbitrators to be appointed. Any final arbitration award shall be
final and not subject to appeal.

(b) Language; Transcript. English shall be the official language of the arbitration
proceedings. The arbitration shall be conducted in the English language. Relevant documents in
other languages shall be translated into English if the arbitrators so direct. A written transcript
in English of the hearing will be made and furnished to the parties.

(c) Decision of Arbitrators. The arbitrators will decide in accordance with the terms of this
Restated Agreement and will take into account any appropriate international trade usages applicable
to the transaction. The award of the arbitrators will be final and binding upon the parties.
Judgment upon the award may be entered in any court having jurisdiction in accordance with the
Convention on the Recognition and Enforcement of Foreign Arbitral Awards of June 10, 1958. An
application may be made to any such court for judicial acceptance of the award and an order of
enforcement.

(d) Expense of Arbitration. The arbitrators shall determine the allocation between the parties
of expenses incurred in connection with the arbitration, including, but not limited to, reasonable
attorneys’ fees and costs; provided however in the event of arbitration pursuant to the provisions
of Section 5.5 the arbitrators must award the prevailing party its attorneys fees and costs,
arbitration administrative fees, panel member fees and costs, and any other costs associated with
the arbitration.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the
Securities Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission

 

91

 

(e) Provisional Remedies Not Denied. Each party hereto acknowledges and agrees that the
provisions of this Restated Agreement are of the essence and that any violation by it of any
provision contained in this Restated Agreement shall cause the other party irreparable injury not
fully compensable by monetary damages and for which the non-breaching party may not have an
adequate remedy at law. Accordingly, if a non-breaching party institutes an arbitration action or
proceeding to enforce this Restated Agreement in accordance with the procedures set forth above,
then such non-breaching party shall be entitled to provisional injunctive relief or other form of
provisional remedy in aid of the arbitration as may be necessary or appropriate to the fullest
extent permissible under applicable law, to enjoin, prevent or curtail any breach of this Restated
Agreement, threatened or actual, without the posting of any bond or security, whether in summary
proceedings or on the merits. It is understood and agreed, however, that the final determination
of any alleged breach giving rise to any provisional injunctive relief or other form of provisional
remedy shall be made solely by the arbitrators in accordance with the provisions set forth above.
In addition to the authority conferred upon the arbitration tribunal by the ICC Rules, the
tribunal, along with any court of competent jurisdiction, shall also have the authority to grant
provisional remedies, including injunctive relief. Without limiting the generality of the
foregoing, it is understood and agreed that a party shall be entitled to injunctive relief in the
event the other party breaches any of the provisions of Section 5.5.

(f) Federal Arbitration Act. Notwithstanding anything to the contrary herein, the arbitration
provisions set forth herein, and any arbitration conducted thereunder, shall be governed
exclusively by the Federal Arbitration Act, Title 9, United States Code and the Convention on the
Recognition and Enforcement of Foreign Arbitral Awards of June 10, 1958, to the exclusion of any
state or municipal law.

10.6. Regulatory Matters. 

Each party shall provide the other party with all information the other party may reasonably
request in order to obtain or comply with any necessary regulatory approvals, permits, licenses,
clearances and notifications required by it in connection with its performance under this Restated
Agreement, including but not limited to all information concerning studies performed by or on
behalf of such party in the field of product identification, characterization and analysis;
pathogenicity, toxicity, mutagenicity and clinical trials. Each party shall promptly notify the
other of all communications with the FDA and other regulatory agencies regarding ARA.

10.7. Assignment, Delegation and Subrogation; Insurance Inspection. 

(a) Neither this Restated Agreement nor any rights granted hereby may be assigned by either
party without the prior written consent of the other party. Any attempt by either party to assign
any rights, duties or obligations without the requisite consent of the other party shall be void
and without force or effect. Notwithstanding the foregoing, either party shall have the right to
assign its rights and delegate its obligations under this Restated Agreement (i) to
an Affiliate, provided that such party shall guarantee the full and timely performance of such
obligations by such Affiliate, and (ii) in the event of a purchase of a party’s entire business to
which this Restated Agreement relates or the purchase of all or substantially all of a party’s
assets, subject in the case of (ii) to the consent of the non-assigning party, which consent shall
not be unreasonably withheld or delayed.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the
Securities Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission

 

92

 

(b) Without limiting the generality of the foregoing, neither party shall subrogate to an
insurance carrier or similar entity any right it may have to claim or recover Losses from (i) the
other party arising out of or in connection with this Restated Agreement, or (ii) a third party
arising out of or in connection with this Restated Agreement to the extent the other party is
required, pursuant to a legally binding obligation in effect at the time of such Losses, to
indemnify such third party against such Losses if such third party were to pay them, in each case,
without the prior written consent of such other party. Each party shall indemnify and hold harmless
the other party, its Affiliates and their respective directors, officers, employees and agents from
and against all Losses, including reasonable counsel fees, that such other party suffers or incurs
as a result of any subrogation made by it in violation of the terms of this Restated Agreement;
provided, however, that nothing contained in this Section 10.7(b) shall be deemed to relieve such
other party from any liability arising as a result of any breach or failure to perform under this
Restated Agreement.

(c) In the event that an insurance carrier or similar entity gives notice to a party that it
has been subrogated to the rights of the other party and that such carrier or entity intends to
exercise such rights against it, then such party receiving such notice shall give the other party
prompt written notice thereof.

(d) Upon reasonable notice during regular working hours, representatives of each of DSM’s and
Martek’s insurance carriers may inspect the manufacturing facilities used by or for the respective
parties in the manufacture of ARA for (i) the purpose of inspections or loss control visits
relative to insurance being secured or validated or (ii) assessing the validity of an insurance
claim and/or the extent of damage under an insurance claim submitted by DSM or Martek,
respectively.

10.8. Amendments and Waivers. 

Except as expressly stated herein, neither this Restated Agreement nor any terms hereof may be
amended, waived, discharged or terminated unless such amendment, waiver, discharge or termination
is in writing signed by all parties or, in the case of a waiver, by the party waiving compliance.

10.9. Severability. 

If any provision of this Restated Agreement shall be held to be invalid, illegal or
unenforceable for any reason, the validity, legality and enforceability of the remaining provisions
shall not in any way be affected or impaired thereby. In the case of any such
invalidity, illegality or unenforceability, the parties agree to use their commercially
reasonable efforts to achieve the purpose of such provision by a new legally valid and enforceable
stipulation. In addition, the parties hereby authorize any court or arbitrator having jurisdiction
thereover to modify such provision to the extent necessary to render such provision enforceable,
and the rights and obligations of the parties shall be construed and enforced accordingly,
preserving to the fullest permissible extent the intent and the agreements of the parties.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the
Securities Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission

 

93

 

10.10. Relationship of the Parties. 

For purposes of this Restated Agreement, DSM and Martek will be and shall act as independent
contractors, and neither party is authorized to act as an agent or partner of, or joint venturer
with, the other party for any purpose. Neither party by virtue of this Restated Agreement shall
have any right, power, or authority to act or create any obligation, express or implied, on behalf
of the other party.

10.11. Notices. 

Except as otherwise expressly provided herein, all notices required or permitted to be sent
hereunder, including any requests and other communications, to any party hereunder shall be in
writing and sufficient if delivered by recognized international express courier service or by
facsimile with telephone confirmation of receipt by the addressee, in each case addressed as
follows:

	 	 	 
	If to DSM:

	 	DSM Food Specialties B.V.
	 

	 	A. Fleminglaan 1
	 

	 	2613 AX Delft
	 

	 	The Netherlands
	 

	 	Attention: Business Director ARA
	 

	 	Phone: ** 31 15 279 2173
	 

	 	Fax: ** 31 15 279 4320
	 
	 	 
	With a copy to:

	 	DSM Food Specialties B.V.
	 

	 	A. Fleminglaan 1
	 

	 	2613 AX Delft
	 

	 	The Netherlands
	 

	 	Attention: Legal Counsel
	 

	 	Phone: ** 31 15 279 2557
	 

	 	Fax: ** 15 279 4170
	 
	 	 
	If to Martek:

	 	Martek Biosciences Corporation
	 

	 	6480 Dobbin Road
	 

	 	Columbia, Maryland 21045
	 

	 	Attention: CEO
	 

	 	Phone: 410-740-0081
	 

	 	Fax: 410-740-2985
	 
	 	 
	With a copy to:

	 	Martek Biosciences Corporation
	 

	 	6480 Dobbin Road
	 

	 	Columbia, Maryland 21045
	 

	 	Attention: General Counsel
	 

	 	Phone: 410-740-0081
	 

	 	Fax: 410-740-2985

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the
Securities Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission

 

94

 

or to such other address as the party to whom notice is to be given may have furnished to the other
party, in writing in accordance herewith. Each such notice shall be effective on the fifth (5th)
business day following the date on which such communication is sent when delivered by recognized
international express courier service and on the first (1st) business day following the date on
which such communication is sent by electronic communication or facsimile in each case with
telephone confirmation of receipt by the addressee. This provision shall not apply to
communications between the parties in the ordinary course of business.

10.12. Governing Law. 

This Restated Agreement shall be governed by and construed in accordance with the internal
laws of the State of New York applicable to contracts to be performed fully within the State of New
York. The parties hereby expressly exclude the applicability of the Convention on Contracts for the
International Sale of Goods and that body of law known as conflicts of laws. Notwithstanding
anything to the contrary herein, issues regarding the scope or interpretation of any parties’
patents shall be determined in accordance with the laws of the jurisdiction in which such patent
has issued.

10.13. Force Majeure. 

Each party shall be excused from the timely performance, and neither party shall be liable for
any damages or penalty for any delay or failure in performance, of any obligation hereunder or for
failure to give the other party prior notice thereof when such delay or failure is due to the
elements, acts of God, delays in transportation, delays in delivery by vendors or subcontractors or
other causes beyond that party’s reasonable control (each such event being a “Force Majeure
Event”). Such excuse shall continue for the duration of the Force Majeure Event and for a
reasonable period of time afterwards as then determined by the parties in good faith.

10.14. No Waivers. 

No express or implied waiver by either party of any event of default hereunder shall in any
way be, or be construed as, a waiver of any future or subsequent event of default.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the
Securities Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission

 

95

 

10.15. Entire Agreement. 

The parties acknowledge that this Restated Agreement, together with the Schedules hereto,
which are hereby incorporated herein and made a part hereof, sets forth the complete, exclusive and
integrated understanding of the parties and supersedes all proposals or prior agreements, oral or
written, and all other prior communications between the parties relating to the subject matter of
this Restated Agreement, including without limitation the Alliance Agreement as amended prior to
the date hereof, and, except as provided in Section 10.8, no other documents (including without
limitation each party’s general terms and conditions of purchase or sale) shall act to modify,
amend or add to this Restated Agreement.

10.16. Counterparts. 

This Restated 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 document.

10.17. Guarantees. 

(a) The parties acknowledge that * has executed the Guaranty Agreement, dated as of April 19,
2004, a copy of which is attached hereto as Schedule 2.77.

(b) DSM unconditionally and irrevocably guarantees to Martek compliance by each of its
Affiliates with the provisions of this Restated Agreement, including but not limited to Sections
5.5, 7.2, 7.4, and 9.4, and shall be liable to Martek for any damages resulting from an Affiliate’s
noncompliance with the provisions of this Restated Agreement. Martek shall, without any further
action or formality being required, have the right to institute arbitration to enforce this
provision in accordance with Section 10.5.

(c) Martek unconditionally and irrevocably guarantees to DSM compliance by each of its
Affiliates with the provisions of this Restated Agreement, including but not limited to Sections
5.5, 7.2, 7.4, and 9.4, and shall be liable to DSM for any damages resulting from an Affiliate’s
noncompliance with the provisions of this Restated Agreement. DSM shall, without any further
action or formality being required, have the right to institute arbitration to enforce this
provision in accordance with Section 10.5.

10.18. Hierarchy of Documents.

The body of this Restated Agreement will prevail in case of discrepancies with the Schedules.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the
Securities Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission

 

96

 

IN WITNESS WHEREOF, each of the parties has caused this Restated Agreement to be duly executed
and delivered as of the day and year first above written.

	 	 	 	 	 	 	 
	MARTEK BIOSCIENCES CORPORATION	 	DSM FOOD SPECIALTIES B.V.
	 
	 	 	 	 	 	 
	By:

	 	/s/ Steve Dubin
	 	By:
	 	/s/ A.R. Wessels
	 

	 	 
	 	 	 	 
	 

	 	Steve Dubin
	 	 	 	A.R. Wessels
	 

	 	Title: Chief Executive Officer
	 	 	 	Title: Managing Director
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Villaume Kal
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Villaume Kal as Attorney-in-Fact for
Geert Jan Nieboer, Managing
Director
	 

	 	 	 	 	 	Title: Business Director ARA

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the
Securities Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission

 

97

 

Schedules to the First Amended and Restated ARA Alliance, Purchase and Production Agreement

SCHEDULES

TO THE

FIRST AMENDED AND RESTATED

ARA ALLIANCE, PURCHASE AND PRODUCTION AGREEMENT

BY AND BETWEEN

MARTEK BIOSCIENCES CORPORATION

AND

DSM FOOD SPECIALTIES B.V.

Dated as of July 13, 2009

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance
on Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been
submitted separately to the Securities and Exchange Commission

 

 

 

Schedules to the First Amended and Restated ARA Alliance, Purchase and Production Agreement

LIST OF SCHEDULES

	 	 	 
	Schedule 2.12

	 	ARA Assay Procedures
	 
	 	 
	Schedule 2.16

	 	DSM Biomass Specifications
	 
	 	 
	Schedule 2.28

	 	DSM Crude Oil Specifications
	 
	 	 
	Schedule 2.47

	 	DSM Costs
	 
	 	 
	Schedule 2.54

	 	DSM Patents
	 
	 	 
	Schedule 2.55

	 	DSM Know-how
	 
	 	 
	Schedule 2.64

	 	Excluded Subject Matter
	 
	 	 
	Schedule 2.69

	 	Martek Finished Oil Specifications
	 
	 	 
	Schedule 2.77

	 	Guaranty Agreement
	 
	 	 
	Schedule 2.104

	 	Martek Costs
	 
	 	 
	Schedule 2.108

	 	Martek Patents
	 
	 	 
	Schedule 2.109

	 	Martek Know-how
	 
	 	 
	Schedule 2.118

	 	* Customers
	 
	 	 
	Schedule 4.2(a)

	 	DSM ARA Biomass Certificate of Analysis
	 
	 	 
	Schedule 4.2(b)

	 	Martek Finished Oil Certificate of Analysis
	 
	 	 
	Schedule 4.6(a)

	 	Manufacturing Changes
	 
	 	 
	Schedule 4.6(b)

	 	Qualification Requirements
	 
	 	 
	Schedule 6.1-A

	 	Belvidere Usages
	 
	 	 
	Schedule 6.1-B

	 	2009 DSM Variable Costs per Unit of ARA
	 
	 	 
	Schedule 6.2-A

	 	2009 Quarterly Reconciliation Format
	 
	 	 
	Schedule 6.2-B

	 	2010-2014 Quarterly Reconciliation Format
	 
	 	 
	Schedule 6.3(a)

	 	DSM Fixed Cost Payment Calculation in the Event of DSM Shortfalls
	 
	 	 
	Schedule 9.4(d)-1

	 	Annual Depreciation of Undepreciated * Costs
	 
	 	 
	Schedule 9.4(d)-2

	 	Annual Depreciation of Undepreciated Pre-2004 Costs

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance
on Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been
submitted separately to the Securities and Exchange Commission

 

 

 

Schedules to the First Amended and Restated ARA Alliance, Purchase and Production Agreement

SCHEDULE 2.12

ARA ASSAY PROCEDURES

Determination of the Units of ARA in Biomass: The Units of ARA in Biomass is determined by
the content of ARA in *. The Units of ARA within the Biomass are calculated as follows.

*

Determination of the Units of ARA in Crude Oil and Finished Oil: The Units of ARA within
Crude Oil and Finished Oil are calculated as follows.

*

	 	•	 	HEL *

	 	•	 	ARA in HEL, Crude Oil, and Finished Oil is determined by * or equivalent method. This
method has been subject to round robin testing and is currently controlled by
inter-laboratory comparison. Data used for the determination of Units of ARA shall only be
generated by a laboratory that has either taken part in these tests or has been validated
to comply with the variability defined in the round robin test as acceptable.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance
on Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been
submitted separately to the Securities and Exchange Commission

 

 

 

Schedules to the First Amended and Restated ARA Alliance, Purchase and Production Agreement

SCHEDULE 2.16

DSM BIOMASS SPECIFICATIONS

	 	 	 	 	 
	
	 	PRODUCT SPECIFICATION FORM
	 	ARA-PSF-004M
	 	ARA Biomass
	 	Revision 5
	 	Product 2984
	 	July 13, 2009

	 	 	 	 	 
	Parameter	 	Specification Limits	 	Test Method
	 
	 	 	 	 
	Release Specifications (a)
	 	 	 	 
	Description

	 	Extruded m. alpina biomass pellets
	 	Visual
	Biomass Color

	 	Brown
	 	Visual
	Smell

	 	Characteristic
	 	Olfactory
	*

	 	*
	 	*
	*

	 	*
	 	*
	*

	 	*
	 	*
	*

	 	*
	 	*
	*

	 	*
	 	*
	*

	 	*
	 	*
	*

	 	*
	 	*
	*

	 	*
	 	*
	 
	 	 	 	 
	Control Specifications (b)
	 	 	 	 
	Lab Extracted Crude Oil Color

	 	Light to Medium Yellow
	 	Visual
	*

	 	*
	 	*
	*

	 	*
	 	*
	 
	*

	 	*
	 	*

*

Storage:

	 	•	 	Below -2° C +/- 3°C, preferably lower temperatures

	 	•	 	Protected from light

	 	•	 	Dry conditions

Packaging:

	 	•	 	Big Bags (polypropylene with polyethylene liner), anti static

	 	•	 	Labeled with product number, batch number, production number,
production date and storage conditions on both inner and outer bag

	 	•	 	*

Legend:

	 	(a)	 	Release Specifications — unconditional release of biomass

	 	(b)	 	Control specifications — tested every * and for each experimental batch to monitor
product quality and process consistency; Martek will be directly notified when out of
specification

	 	(c)	 	* ARA average in extracted crude oil over *of production

	 
	 	(d)	 	Measured in HEL *

	 
	 	(e)	 	Equivalent methods may be used if mutually agreed upon by DSM and Martek in advance

	 	(f)	 	The upper ARA potency limit will be increased in steps of *when * of the same
fermentation protocol within each step (i.e., *) meet all finished ARASCO oil analytical,
stability and sensory specifications

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance
on Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been
submitted separately to the Securities and Exchange Commission

 

 

 

Schedules to the First Amended and Restated ARA Alliance, Purchase and Production Agreement

SCHEDULE 2.28

DSM CRUDE OIL SPECIFICATIONS

	 	 	 	 	 
	
	 	PRODUCT SPECIFICATION FORM
	 	ARA-PSF-001M
	 	ARA Crude Oil
	 	Revision 5
	 	 	 	22 June 2005

Product no: 2983

	 	 	 	 	 	 	 
	Parameters	 	Approval limit (*)	 	Discussion Range (*)	 	Methods
	Release specifications
	 	 	 	 	 	 
	Appearance

	 	Typical at 25°C
	 	 	 	Visual
	Color

	 	Light-medium yellow
	 	 	 	Visual
	Smell

	 	Typical — free of any rancid odor
	 	 	 	olfactory
	*

	 	*
	 	*
	 	*
	*

	 	*
	 	*
	 	*
	*

	 	*
	 	 	 	*
	*

	 	*
	 	*
	 	*
	*

	 	*
	 	 	 	*

	 	 	 	 	 
	Parameters	 	Specification Limit (*)	 	Methods
	Control specifications (c)
	 	 	 	 
	*

	 	*
	 	*
	*

	 	*
	 	*
	*

	 	*
	 	*
	*

	 	*
	 	*
	Control specifications (*);
*
	 	 	 	 
	*

	 	*
	 	*
	*

	 	*
	 	*
	*

	 	*
	 	*
	*

	 	*
	 	*
	*

	 	*
	 	*
	*

	 	*
	 	*
	*

	 	*
	 	*

In-process control parameters (*):

	 	 	 	 	 
	Parameters	 	Control limit (d)	 	Methods
	*

	 	*
	 	*

	 	 	 
	Scope	 	Omichem & Naturex
	Kosher

	 	Yes
	HALAL

	 	No
	Non-GMO

	 	Yes

	 	 	 
	(a)	 	Release Specifications — Unconditional release of material

	 
	(b)	 	Results within these limits shall be discussed with Martek prior to approval

	 
	(c)	 	Control specifications — To monitor the quality of the product and the consistency of the
process; Martek will be directly notified when out of specification

	 
	(d)	 	In-process control parameters — Corrective actions will be taken when the control limits are
exceeded. No impact on product release

	 
	(e)	 	*(average per shipment of oil)

	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance
on Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been
submitted separately to the Securities and Exchange Commission

 

 

 

Schedules to the First Amended and Restated ARA Alliance, Purchase and Production Agreement

Storage conditions:

	 	•	 	below -18°C

	 
	 	•	 	Protected from light

	 
	 	•	 	Dry conditions

Packaging:

	 	•	 	Under Nitrogen

	 
	 	•	 	200 kg food grade phenolic coated lined drums (tight head) with DSM label

	 
	*	 	 

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance
on Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been
submitted separately to the Securities and Exchange Commission

 

 

 

Schedules to the First Amended and Restated ARA Alliance, Purchase and Production Agreement

SCHEDULE 2.47

DSM COSTS

Included Costs:

DSM Costs per Unit of ARA shall equal Variable Costs per Unit of ARA plus Fixed Costs per Unit of
ARA, adjusted as necessary in accordance with Article 6 of the attached Restated Agreement. Fixed
Costs and Variable Costs shall be based on Generally Accepted Accounting Principles and shall be
based on actual or budgeted costs as applicable.

DSM’s capital costs for Approved Expansion Plans and Approved Capital Assets shall be depreciated
on a straight-line basis over * period starting at the time such expansion is placed into
production. Notwithstanding the above, (i) Belvidere Phase I Build-out capital costs are agreed to
be no greater than * and shall be depreciated on a straight-line basis over a * period starting
from January 1st 2004; and (ii) The basis for depreciating the Belvidere plant assets in
existence prior to the Belvidere Phase I Build-out and dedicated to use in such Belvidere Phase I
Build-out shall be no greater than * and will be depreciated on a straight-line basis over a *
period starting January 1st 2004. The final amount is subject to verification by Martek
including, at Martek’s option, an independent audit of such amount.

The ARA portion of assets not totally dedicated to ARA, other than production assets (such as ERP
systems), shall be depreciated by using the DSM internal accounting standards applicable to DSM
operations in general, but still consistent with Generally Accepted Accounting Principles.

Excluded Costs:

The following costs shall not to be included in the DSM Costs per Unit of ARA and Fixed Budget
Price per Unit of ARA (the “Excluded Costs”):

	 	•	 	All costs related to the importing and re-exporting of ARA products sent to Martek that
do not meet Martek Specifications, including but not limited to related freight, tariffs
and warehousing costs.

	 	•	 	Costs related to reworking material that originally did not meet Martek Specifications
pursuant to Section 4.7 of the Agreement.

	 	•	 	Legal costs associated with negotiating and drafting the Alliance Agreement as amended
and the Restated Agreement.

	 	•	 	Production Startup Costs.

	 	•	 	R&D Contribution pursuant to Section 7.1(d).

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance
on Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been
submitted separately to the Securities and Exchange Commission

 

 

 

Schedules to the First Amended and Restated ARA Alliance, Purchase and Production Agreement

SCHEDULE 2.54

DSM PATENTS

	 	 	 	 	 
	Patent #	 	Title	 	Summary
	WO 97/36996

	 	Process for the preparation of
a granular microbial biomass
and isolation of valuable
compounds therefrom
	 	A process for the
isolation of desired
compound(s) from a
microbial biomass is
disclosed, wherein the
microbial biomass
(which, if necessary,
is pre-treated to give
a dry matter content
of from 25 to 80% is
granulated (e.g. by
extrusion) and then
dried to a dry matter
content of at least
80%. The granulation
of the biomass to
granules significantly
eases subsequent
drying of the biomass
(which can be stored
as dried granules) and
gives higher yields on
extraction of the
compound(s).
	WO 97/37032

	 	Fatty acid containing

Oil from pasteurized biomass
	 	In one aspect the
present invention
provides a process for
the isolation of one
or more compound(s)
from a microbial
biomass, the process
comprising:
	 

	 	 	 	a)    culturing
microorganisms in a
fermentation broth
under conditions
whereby the
microorganisms produce
the compound

	 

	 	 	 	b)    pasteurizing either
the fermentation broth
or a microbial biomass
derived therefrom; and

	 

	 	 	 	c)    extracting,
isolating or
recovering the
compound from the
microbial biomass

	WO 97/35487

	 	Solid water soluble

PUFA-carrying particles
	 	The present invention
relates to a process
for the preparation of
a polyunsaturated
fatty acid
(PUFA)-containing
composition where a
PUFA-containing lipid
is adsorbed onto a
solid carrier such as
a powder. This can be
used in a process for
preparing an infant
formula, such as where
the powdered
PUFA-containing lipid
is added after an
emulsion of oil and
water phases has been
formed.
	WO 97/35488

	 	Late addition of PUFAs in
production of infant formula
	 	The present invention
relates to a process
for the preparation of
a polyunsaturated
fatty acid
(PUFA)-containing
food, such as an
infant formula, where
a composition
comprising a PUFA is
added at a late stage
of the infant formula
preparation process in
this way, the PUFAs is
minimally exposed to
conditions during the
process that induce
degradation of the
PUFAs.
	WO 97/43362

	 	Sterol extraction with polar

solvent
	 	The present invention
relates to a process
of treating an oil,
the process comprising
contacting the oil
with a polar solvent,
and then separating
the solvent containing
the compound from the
so treated oil. The
oil is microbially
derived, and extracted
either form a
fermentation broth or
a filtrate thereof
using hexane. The
compound to be
extracted is usually a
sterol or a
diglyceride. The
solvent is ethanol
having up to 5% of
water. The oil an
contain a
plyunsaturated fatty
acid such as C28, C20
or C22 w-e, or w-6
fatty acid, such as
arachidonic acid.
	WO 99/65327

	 	Microbial ARA for use in

marine feed
	 	A marine feed
composition is
described comprising
microbially derived
arachidonic acid (ARA)
or ARA in the form of
a triglyceride. The
ARA is suitably
produced by a fungus,
such as of the genus
Mortierella, although
the feed composition
itself is free of
microbial cells. These
forms of ARA have been
found to give better
growth and
pigmentation promotion
in marine organisms
(shrimps and fish)
than corresponding
phospholipid forms of
ARA from fish oil. The
ARA can be in the form
of an oil, e.g. an
oil-in-water emulsion
or may first be fed to
larvae, rotifers or
nauplii which are
themselves included in
a composition as
“live” feed for larger
organisms.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance
on Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been
submitted separately to the Securities and Exchange Commission

 

 

 

Schedules to the First Amended and Restated ARA Alliance, Purchase and Production Agreement

	 	 	 	 	 
	Patent #	 	Title	 	Summary
	WO 00/21524

	 	PUFA supplement /ARA for

pregnant women
	 	Edible formulations,
such as
polyunsaturated fatty
acids (PUFAs) such as
pharmaceutical
compositions or
nutritional
supplements, are
disclosed comprising
arachidonic acid
(ARA). They are
adapted to deliver
from 150 mg to 1 g per
day of ARA and may
contain other PUFAs,
for example
docosahexaenoic acid
(DHA) at a ration of
ARA: DHA of 1:1 to 1:2
are also disclosed, as
are foodstuffs
comprising of 0.1 to
5% of ARA. Such
formulations can be
used to increase ARA
levels in vivo, for
example in pregnant
women or for people
who have diseases or
conditions associated
with low ARA levels.
	WO 02/10423

	 	Isolation of microbial oils
	 	The extraction of a
microbial or single
cell oil, for example
comprising one or more
polyunsaturated fatty
acids (PUFA’s),
directly form
microbial cells is
disclosed which avoids
the need for solvents.
	WO 02/10322

	 	Purifying crude PUFA oils
	 	A process for
preparing an oil
mixture of an w-6 PUFA
(such as ARA) with w-3
PUFA (such as DHA
and/or EPA is
described which can be
included into edible
formulations such as
foodstuffs, and in
particular infant
formulas.
	WO 04/001021

	 	Pasteurization of biomass
	 	An improved
pasteurization
protocol for
pasteurizing microbial
cells is disclosed.
The protocol has three
stages, a first
heating stage, a
second plateau stage
at which the cells are
held at a (maximum
and) constant
temperature, and a
third cooling stage.
	WO 04/009827

	 	Preparation of microbial oil
	 	The present invention
provides a process for
the production of a
microbial oil,
comprising culturing a
micro-organism in a
two-stage process
where, in a last stage
that precedes the end
of fermentation, the
carbon source is: consumed by the
micro-organisms at a
rate greater than it
is added to the
medium; added at a
rate < 0.30 M
carbon/kg medium; or
is rate limiting on
the growth of the
micro-organism. The
Micro-organism thus
have the carbon source
restricted so that
they preferentially
metobolise fats or
lipids other than
arachidonic acid
(ARA), so increasing
th proportion of ARA
in the cells. A
microbial oil is then
recovered from the
micro-organism, using
hexane as a solvent,
that has at least 50 %
ARA and at least 90 %
triglycerides.
	WO 98/37179A2

	 	Fermentative production of
valuable compounds on an
industrial scale using
chemically defined media
	 	A process for the
production of a
valuable compound,
comprising the steps
of: fermentation of a
microbial strain on an
industrial scale in a
fermentation medium
which is a chemically
defined medium
essentially composed
of chemically defined
constituents, and
recovery of the
valuable compound from
the fermentation
broth.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance
on Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been
submitted separately to the Securities and Exchange Commission

 

 

 

Schedules to the First Amended and Restated ARA Alliance, Purchase and Production Agreement

SCHEDULE 2.55

DSM KNOW-HOW

Status: Technology in place for large scale ARA production

Main process characteristics: process scale: *,

*

productivity: *

high quality oil:*

*:

*

*

*

*

Main fields of expertise:

Strains:

	 	•	 	A number of ARA producing strains of different organisms

	 	•	 	Main line of producers: Mortierella alpina

Fermentation technology:

	 	•	 	*

	 
	 	•	 	*

	 
	 	•	 	*

	 
	 	•	 	*

	 
	 	•	 	*

	 
	 	•	 	*

	 
	 	•	 	*

	 
	 	•	 	*

	 
	 	•	 	*

Pasteurization technology:

	 	•	 	*

	 	•	 	*

	 	•	 	*

Downstream processing:

	 	•	 	*

	 	•	 	*

	 	•	 	*

Extraction of biomass:

	 	•	 	*

	 
	 	•	 	*

Process developments developed, not implemented:

	 	•	 	*

	 	•	 	*

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance
on Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been
submitted separately to the Securities and Exchange Commission

 

 

 

Schedules to the First Amended and Restated ARA Alliance, Purchase and Production Agreement

Toxicology, safety studies:

	 	•	 	*

	 	•	 	*

	 	•	 	*

Nutrition:

	 	•	 	*

	 	•	 	*

Application areas:

	 	•	 	*

New fields of investigation:

Increase fermentation efficiency:

	 	•	 	*

	 	•	 	*

	 	•	 	*

	 	•	 	*

Downstream processing:

	 	•	 	*

	 	•	 	*

	 	•	 	*

Extraction:

	 	•	 	*

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance
on Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been
submitted separately to the Securities and Exchange Commission

 

 

 

Schedules to the First Amended and Restated ARA Alliance, Purchase and Production Agreement

SCHEDULE 2.64

EXCLUDED SUBJECT MATTER

	 	 	 	 	 	 	 	 	 	 	 
	SR No./ Huntion	 	 	 	Application or	 	Appl. Date or	 	 	 	 
	No./ Rothwell No.	 	Country	 	Patent Number	 	Date Issued	 	Title of Patent	 	Status
	62611.000106

	 	AU
	 	661297 
	 	7-Nov-1995
	 	MICROBIAL OIL MIXTURES AND
USES THEREOF
	 	Granted
	62611.000109

	 	BR
	 	PI920526-5 
	 	22-Jan-1992
	 	MICROBIAL OIL MIXTURES AND
USES THEREOF
	 	Appealed
	62611.000110

	 	CA
	 	2101274 
	 	15-Dec-1998
	 	MICROBIAL OIL MIXTURES AND
USES THEREOF
	 	Granted
	62611.000358

	 	EP
	 	07075341.3 
	 	22-Jan-1992
	 	MICROBIAL OIL MIXTURES AND
USES THEREOF
	 	Published
	62611.000354

	 	EP
	 	07002670.3 
	 	22-Jan-1992
	 	MICROBIAL OIL MIXTURES AND
USES THEREOF
	 	Published
	62611.000387

	 	EP
	 	8005794.6 
	 	22-Jan-1992
	 	MICROBIAL OIL MIXTURES AND
USES THEREOF
	 	Published
	62611.000380

	 	HK
	 	08102811.5 
	 	11-Mar-2008
	 	MICROBIAL OIL MIXTURES AND
USES THEREOF
	 	Published
	62611.000118

	 	ID
	 	ID0000174 
	 	20-Jun-1995
	 	MICROBIAL OIL MIXTURES AND
USES THEREOF
	 	Granted
	62611.000120

	 	IL
	 	114253 
	 	14-Oct-1997
	 	MICROBIAL OIL MIXTURES AND
USES THEREOF
	 	Granted
	62611.000119

	 	IL
	 	100733 
	 	1-Apr-1996
	 	MICROBIAL OIL MIXTURES AND
USES THEREOF
	 	Granted
	62611.000133

	 	KR
	 	321543 
	 	9-Jan-2002
	 	MICROBIAL OIL MIXTURES AND
USES THEREOF
	 	Granted
	62611.000135

	 	KR
	 	313987 
	 	25-Oct-2001
	 	MICROBIAL OIL MIXTURES AND
USES THEREOF
	 	Granted
	62611.000137

	 	LK
	 	10526 
	 	17-Jun-1994
	 	MICROBIAL OIL MIXTURES AND
USES THEREOF
	 	Granted
	62611.000127

	 	NZ
	 	241359 
	 	16-Feb-1995
	 	MICROBIAL OIL MIXTURES AND
USES THEREOF
	 	Granted
	62611.000129

	 	PH
	 	1992-43812 
	 	23-Nov-2001
	 	MICROBIAL OIL MIXTURES AND
USES THEREOF
	 	Granted
	62611.000130

	 	RU
	 	2093996 
	 	27-Oct-1997
	 	MICROBIAL OIL MIXTURES AND
USES THEREOF
	 	Granted
	62611.000131

	 	SG
	 	49307 
	 	10-Jan-2002
	 	MICROBIAL OIL MIXTURES AND
USES THEREOF
	 	Granted
	62611.000141

	 	US
	 	5374657 
	 	20-Dec-1994
	 	MICROBIAL OIL MIXTURES AND
USES THEREOF
	 	Granted
	62611.000142

	 	US
	 	5550156 
	 	27-Aug-1996
	 	MICROBIAL OIL MIXTURES AND
USES THEREOF
	 	Granted
	62611.000128

	 	WO
	 	PCT/US92/00522
	 	22-Jan-1992
	 	MICROBIAL OIL MIXTURES AND
USES THEREOF
	 	Nat Phase
	62611.000132

	 	ZA
	 	PI920526-5 
	 	28-Oct-1992
	 	MICROBIAL OIL MIXTURES AND
USES THEREOF
	 	Granted
	2997-20-PCN

	 	CN
	 	01816395.5 
	 	19-Jan-2001
	 	Methods for Raising Rabbits
	 	Pending
	2997-20-PCZ

	 	CZ
	 	2002-2507 
	 	19-Jan-2001
	 	Methods for Raising Rabbits
	 	Pending
	2997-20-PEP

	 	EP
	 	0190211935 
	 	19-Jan-2001
	 	Methods for Raising Rabbits
	 	Pending
	2997-20-PHU

	 	HU
	 	P0301967 
	 	19-Jan-2001
	 	Methods for Raising Rabbits
	 	Pending
	2997-20-PPL

	 	PL
	 	P362 422 
	 	19-Jan-2001
	 	Methods for Raising Rabbits
	 	Pending

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance
on Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been
submitted separately to the Securities and Exchange Commission

 

 

 

Schedules to the First Amended and Restated ARA Alliance, Purchase and Production Agreement

	 	 	 	 	 	 	 	 	 	 	 
	SR No./ Huntion	 	 	 	Application or	 	Appl. Date or	 	 	 	 
	No./ Rothwell No.	 	Country	 	Patent Number	 	Date Issued	 	Title of Patent	 	Status
	2997-20-TH

	 	TH
	 	063197 
	 	19-Jan-2001
	 	Methods for Raising Rabbits
	 	Pending
	2997-20-TW

	 	TW
	 	90101741 
	 	19-Jan-2001
	 	Methods for Raising Rabbits
	 	Pending
	2997-20-PUS

	 	US
	 	6,568,351 
	 	27-May-2003
	 	Methods for Raising Rabbits
	 	Granted
	2997-20-PCT

	 	WO
	 	US01/01720 
	 	19-Jan-2001
	 	Methods for Raising Rabbits
	 	Nat Phase
	2997-21-PAU

	 	AU
	 	2001273028 
	 	26-Jun-2001
	 	Improved Methods of
Incorporating
Polyunsaturated Fatty
Acids in Milk
	 	Granted
	2997-21-PCA

	 	CA
	 	2,413,109 
	 	27-Nov-2007
	 	Improved Methods of
Incorporating
Polyunsaturated Fatty
Acids in Milk
	 	Granted
	2997-21-EPDE

	 	DE
	 	60125176.8-08
	 	13-Dec-2006
	 	Improved Methods of
Incorporating
Polyunsaturated Fatty
Acids in Milk
	 	Granted
	2997-21-PEP

	 	EP
	 	EP1299003 
	 	13-Dec-2006
	 	Improved Methods of
Incorporating
Polyunsaturated Fatty
Acids in Milk
	 	Granted
	2997-21-EPFR

	 	FR
	 	1299003 
	 	13-Dec-2006
	 	Improved Methods of
Incorporating
Polyunsaturated Fatty
Acids in Milk
	 	Granted
	2997-21-EPGB

	 	GB
	 	1299003 
	 	13-Dec-2006
	 	Improved Methods of
Incorporating
Polyunsaturated Fatty
Acids in Milk
	 	Granted
	2997-21-PHK

	 	HK
	 	03107219.7 
	 	26-Jun-2001
	 	Improved Methods of
Incorporating
Polyunsaturated Fatty
Acids in Milk
	 	Published
	2997-21-EPIT

	 	IT
	 	1299003 
	 	13-Dec-2006
	 	Improved Methods of
Incorporating
Polyunsaturated Fatty
Acids in Milk
	 	Granted
	2997-21-PNZ

	 	NZ
	 	523741 
	 	26-Jun-2001
	 	Improved Methods of
Incorporating
Polyunsaturated Fatty
Acids in Milk
	 	Granted
	2997-21-TH

	 	TH
	 	066509 
	 	25-Jun-2001
	 	Improved Methods of
Incorporating
Polyunsaturated Fatty
Acids in Milk
	 	Pending
	2997-21-TW

	 	TW
	 	268761 
	 	21-Dec-2006
	 	Improved Methods of
Incorporating
Polyunsaturated Fatty
Acids in Milk
	 	Granted
	2997-21-PUS

	 	US
	 	7,504,121 
	 	17-Mar-2009
	 	Improved Methods of
Incorporating
Polyunsaturated Fatty
Acids in Milk
	 	Granted
	2997-21-PUS-3

	 	US
	 	11/560,809 
	 	16-Nov-2006
	 	Improved Methods of
Incorporating
Polyunsaturated Fatty
Acids in Milk
	 	Published
	2997-21-PCT

	 	WO
	 	US01/20471 
	 	26-Jun-2001
	 	Improved Methods of
Incorporating
Polyunsaturated Fatty
Acids in Milk
	 	Nat Phase
	2997-31-PAE

	 	AE
	 	PCT/AE 376/2003
	 	14-May-2002
	 	A Method of Improving the
Flavor, Tenderness and
Overall Consumer
Acceptability of Poultry
Meat
	 	Pending
	2997-31-PAU

	 	AU
	 	2002303744 
	 	31-Jul-2008
	 	A Method of Improving the
Flavor, Tenderness and
Overall Consumer
Acceptability of Poultry
Meat
	 	Granted
	2997-31-PCA

	 	CA
	 	2,446,027 
	 	14-May-2002
	 	A Method of Improving the
Flavor, Tenderness and
Overall Consumer
Acceptability of Poultry
Meat
	 	Pending
	2997-31-PEP

	 	EP
	 	02731799.9 
	 	14-May-2002
	 	A Method of Improving the
Flavor, Tenderness and
Overall Consumer
Acceptability of Poultry
Meat
	 	Published
	2997-31-PJP

	 	JP
	 	2002-588780 
	 	14-May-2002
	 	A Method of Improving the
Flavor, Tenderness and
Overall Consumer
Acceptability of Poultry
Meat
	 	Pending
	2997-31-PMX

	 	MX
	 	252263 
	 	6-Dec-2007
	 	A Method of Improving the
Flavor, Tenderness and
Overall Consumer
Acceptability of Poultry
Meat
	 	Granted
	2997-31

	 	US
	 	6,716,460 
	 	6-Apr-2004
	 	Method of Improving the
Flavor, Tenderness and
Overall Consumer
Acceptability of Poultry
Meat
	 	Granted

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance
on Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been
submitted separately to the Securities and Exchange Commission

 

 

 

Schedules to the First Amended and Restated ARA Alliance, Purchase and Production Agreement

	 	 	 	 	 	 	 	 	 	 	 
	SR No./ Huntion	 	 	 	Application or	 	Appl. Date or	 	 	 	 
	No./ Rothwell No.	 	Country	 	Patent Number	 	Date Issued	 	Title of Patent	 	Status
	2997-31-PCT

	 	WO
	 	US02/15353 
	 	14-May-2002
	 	A Method of Improving the
Flavor, Tenderness and
Overall Consumer
Acceptability of Poultry
Meat
	 	Nat Phase
	2997-38-CON

	 	US
	 	12/111,844 
	 	29-Apr-2008
	 	Products Containing Highly
Unsaturated Fatty Acids
For Use by Women During
States of Preconception,
Pregnancy and
Lactation/Post-Partum
	 	Published
	2997-46-PAU

	 	AU
	 	2003238264 
	 	18-Jun-2003
	 	Stable Emulsions of Oils
in Aqueous Solutions and
Methods for Producing Same
	 	Pending
	2997-46-PCA

	 	CA
	 	2489391 
	 	18-Jun-2003
	 	Stable Emulsions of Oils
in Aqueous Solutions and
Methods for Producing Same
	 	Pending
	2997-46-PEP

	 	EP
	 	03737159.8 
	 	18-Jun-2003
	 	Stable Emulsions of Oils
in Aqueous Solutions and
Methods for Producing Same
	 	Published
	2997-46-EPHK

	 	HK
	 	05109565.1 
	 	18-Jun-2003
	 	Stable Emulsions of Oils
in Aqueous Solutions and
Methods for Producing Same
	 	Published
	2997-46-PJP

	 	JP
	 	2004-512524 
	 	18-Jun-2003
	 	Stable Emulsions of Oils
in Aqueous Solutions and
Methods for Producing Same
	 	Pending
	2997-46-PJP-DIV

	 	JP
	 	2006-144750 
	 	25-May-2006
	 	Stable Emulsions of Oils
in Aqueous Solutions and
Methods for Producing Same
	 	Published
	2997-46-PUS

	 	US
	 	10/518,957 
	 	27-Jun-2005
	 	Stable Emulsions of Oils
in Aqueous Solutions and
Methods for Producing Same
	 	Pending
	2997-46-PCT

	 	WO
	 	US03/19108 
	 	18-Jun-2003
	 	Stable Emulsions of Oils
in Aqueous Solutions and
Methods for Producing Same
	 	Nat Phase
	62611.000283

	 	AT
	 	0707487 
	 	14-Apr-2004
	 	METHODS AND PHARMACEUTICAL
COMPOSITIONS USEFUL FOR
TREATING NEUROLOGICAL
DISORDERS
	 	Granted
	62611.000176

	 	AU
	 	693450 
	 	5-Nov-1998
	 	METHODS AND PHARMACEUTICAL
COMPOSITIONS USEFUL FOR
TREATING NEUROLOGICAL
DISORDERS
	 	Granted
	62611.000284

	 	BE
	 	EP0707487 
	 	14-Apr-2004
	 	METHODS AND PHARMACEUTICAL
COMPOSITIONS USEFUL FOR
TREATING NEUROLOGICAL
DISORDERS
	 	Granted
	62611.000177

	 	CA
	 	2164291 
	 	30-Oct-2007
	 	METHODS AND PHARMACEUTICAL
COMPOSITIONS USEFUL FOR
TREATING NEUROLOGICAL
DISORDERS
	 	Granted
	62611.000377

	 	CA
	 	2596241 
	 	2-Jun-1994
	 	METHODS AND PHARMACEUTICAL
COMPOSITIONS USEFUL FOR
TREATING NEUROLOGICAL
DISORDERS
	 	Pending
	62611.000285

	 	CH
	 	EP0707487 
	 	14-Apr-2004
	 	METHODS AND PHARMACEUTICAL
COMPOSITIONS USEFUL FOR
TREATING NEUROLOGICAL
DISORDERS
	 	Granted

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance
on Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been
submitted separately to the Securities and Exchange Commission

 

 

 

Schedules to the First Amended and Restated ARA Alliance, Purchase and Production Agreement

	 	 	 	 	 	 	 	 	 	 	 
	SR No./ Huntion	 	 	 	Application or	 	Appl. Date or	 	 	 	 
	No./ Rothwell No.	 	Country	 	Patent Number	 	Date Issued	 	Title of Patent	 	Status
	62611.000286

	 	DE
	 	69433713 
	 	14-Apr-2004
	 	METHODS AND PHARMACEUTICAL
COMPOSITIONS USEFUL FOR
TREATING NEUROLOGICAL
DISORDERS
	 	Granted
	62611.000287

	 	DK
	 	EP0707487 
	 	14-Apr-2004
	 	METHODS AND PHARMACEUTICAL
COMPOSITIONS USEFUL FOR
TREATING NEUROLOGICAL
DISORDERS
	 	Granted
	62611.000301

	 	EP
	 	04075413.7 
	 	2-Jun-1994
	 	METHODS AND PHARMACEUTICAL
COMPOSITIONS USEFUL FOR
TREATING NEUROLOGICAL
DISORDERS
	 	Published
	62611.000178

	 	EP
	 	EP0707487 
	 	14-Apr-2004
	 	METHODS AND PHARMACEUTICAL
COMPOSITIONS USEFUL FOR
TREATING NEUROLOGICAL
DISORDERS
	 	EPGrant
	62611.000288

	 	ES
	 	EP0707487 
	 	14-Apr-2004
	 	METHODS AND PHARMACEUTICAL
COMPOSITIONS USEFUL FOR
TREATING NEUROLOGICAL
DISORDERS
	 	Granted
	62611.000289

	 	FR
	 	EP0707487 
	 	14-Apr-2004
	 	METHODS AND PHARMACEUTICAL
COMPOSITIONS USEFUL FOR
TREATING NEUROLOGICAL
DISORDERS
	 	Granted
	62611.000290

	 	GB
	 	EP0707487 
	 	14-Apr-2004
	 	METHODS AND PHARMACEUTICAL
COMPOSITIONS USEFUL FOR
TREATING NEUROLOGICAL
DISORDERS
	 	Granted
	62611.000291

	 	GR
	 	20040401791 
	 	14-Apr-2004
	 	METHODS AND PHARMACEUTICAL
COMPOSITIONS USEFUL FOR
TREATING NEUROLOGICAL
DISORDERS
	 	Granted
	62611.000292

	 	IE
	 	EP0707487 
	 	14-Apr-2004
	 	METHODS AND PHARMACEUTICAL
COMPOSITIONS USEFUL FOR
TREATING NEUROLOGICAL
DISORDERS
	 	Granted
	62611.000293

	 	IT
	 	EP0707487 
	 	14-Apr-2004
	 	METHODS AND PHARMACEUTICAL
COMPOSITIONS USEFUL FOR
TREATING NEUROLOGICAL
DISORDERS
	 	Granted
	62611.000179

	 	JP
	 	501997/95 
	 	2-Jun-1994
	 	METHODS AND PHARMACEUTICAL
COMPOSITIONS USEFUL FOR
TREATING NEUROLOGICAL
DISORDERS
	 	Published
	62611.000381

	 	JP
	 	2007-327930 
	 	19-Dec-2007
	 	METHODS AND PHARMACEUTICAL
COMPOSITIONS USEFUL FOR
TREATING NEUROLOGICAL
DISORDERS
	 	Published
	62611.000294

	 	LU
	 	EP0707487 
	 	14-Apr-2004
	 	METHODS AND PHARMACEUTICAL
COMPOSITIONS USEFUL FOR
TREATING NEUROLOGICAL
DISORDERS
	 	Granted
	62611.000295

	 	MC
	 	EP0707487 
	 	14-Apr-2004
	 	METHODS AND PHARMACEUTICAL
COMPOSITIONS USEFUL FOR
TREATING NEUROLOGICAL
DISORDERS
	 	Granted

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance
on Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been
submitted separately to the Securities and Exchange Commission

 

 

 

Schedules to the First Amended and Restated ARA Alliance, Purchase and Production Agreement

	 	 	 	 	 	 	 	 	 	 	 
	SR No./ Huntion	 	 	 	Application or	 	Appl. Date or	 	 	 	 
	No./ Rothwell No.	 	Country	 	Patent Number	 	Date Issued	 	Title of Patent	 	Status
	62611.000180

	 	MX
	 	263227 
	 	17-Dec-2008
	 	METHODS AND PHARMACEUTICAL
COMPOSITIONS USEFUL FOR
TREATING NEUROLOGICAL
DISORDERS
	 	Granted
	62611-000393

	 	MX
	 	MX/A/2008/013240
	 	31-Oct-2008
	 	METHODS AND PHARMACEUTICAL
COMPOSITIONS USEFUL FOR
TREATING NEUROLOGICAL
DISORDERS
	 	Pending
	62611.000296

	 	NL
	 	EP0707487 
	 	14-Apr-2004
	 	METHODS AND PHARMACEUTICAL
COMPOSITIONS USEFUL FOR
TREATING NEUROLOGICAL
DISORDERS
	 	Granted
	62611.000297

	 	PT
	 	EP0707487 
	 	14-Apr-2004
	 	METHODS AND PHARMACEUTICAL
COMPOSITIONS USEFUL FOR
TREATING NEUROLOGICAL
DISORDERS
	 	Granted
	62611.000298

	 	SE
	 	EP0707487 
	 	14-Apr-2004
	 	METHODS AND PHARMACEUTICAL
COMPOSITIONS USEFUL FOR
TREATING NEUROLOGICAL
DISORDERS
	 	Granted
	62611.000300

	 	US
	 	10/855,488 
	 	28-May-2004
	 	METHODS AND PHARMACEUTICAL
COMPOSITIONS USEFUL FOR
TREATING NEUROLOGICAL
DISORDERS
	 	Published
	62611.000186

	 	US
	 	08/479,809 
	 	7-Jun-1995
	 	METHODS AND PHARMACEUTICAL
COMPOSITIONS USEFUL FOR
TREATING NEUROLOGICAL
DISORDERS
	 	Pending
	62611.000181

	 	WO
	 	PCT/US94/06317
	 	2-Jun-1994
	 	METHODS AND PHARMACEUTICAL
COMPOSITIONS USEFUL FOR
TREATING NEUROLOGICAL
DISORDERS
	 	Nat Phase
	62611.000183

	 	AU
	 	768369 
	 	25-Mar-2004
	 	METHODS FOR CONTROLLING
HIGHLY UNSATURATED FATTY
ACID CONTENT IN VARIOUS
TISSUES
	 	Granted
	62611.000184

	 	EP
	 	96921263.8 
	 	3-Jun-1996
	 	METHODS FOR CONTROLLING
HIGHLY UNSATURATED FATTY
ACID CONTENT IN VARIOUS
TISSUES
	 	Published
	62611.000390

	 	EP
	 	07075522.8 
	 	3-Jun-1996
	 	METHODS FOR CONTROLLING
HIGHLY UNSATURATED FATTY
ACID CONTENT IN VARIOUS
TISSUES
	 	Pending
	62611.000185

	 	IL
	 	122405 
	 	11-Jul-2003
	 	METHODS FOR CONTROLLING
HIGHLY UNSATURATED FATTY
ACID CONTENT IN VARIOUS
TISSUES
	 	Granted
	62611.000187

	 	WO
	 	PCT/US96/08649
	 	3-Jun-1996
	 	METHODS FOR CONTROLLING
HIGHLY UNSATURATED FATTY
ACID CONTENT IN VARIOUS
TISSUES
	 	Nat Phase

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance
on Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been
submitted separately to the Securities and Exchange Commission

 

 

 

Schedules to the First Amended and Restated ARA Alliance, Purchase and Production Agreement

SCHEDULE 2.69

MARTEK FINISHED OIL SPECIFICATIONS

	 	 	 
	ARASCO®

Product Specifications

	 	

	 	 	 
	General Characteristics	 	 
	Description:

	 	Vegetable oil from fungi, containing approximately 40% arachidonic acid (ARA)
	Appearance:

	 	Free flowing yellow liquid oil (triglyceride)
	Aroma:

	 	Characteristic
	Antioxidants:

	 	*

	 	 	 	 	 
	Chemical Characteristics	 	 	 	Specification
	*

	 	 	 	*
	Free Fatty Acid

	 	 	 	max 0.4 %
	*

	 	 	 	*
	 
	 	 	 	 
	Elemental Composition

	 	 	 	Specification
	*

	 	*	 	 
	*

	 	*	 	 
	*

	 	 	 	*
	*

	 	 	 	*
	*

	 	 	 	*
	*

	 	*	 	 
	*

	 	*	 	 
	 
	 	 	 	 
	Fatty Acid Profile, Area %

	 	 	 	Specification
	*

	 	 	 	*
	*

	 	 	 	*
	*

	 	 	 	*
	*

	 	 	 	*
	*

	 	 	 	*
	*

	 	 	 	*
	*

	 	 	 	*
	*

	 	 	 	*
	*

	 	 	 	*
	*

	 	*	 	 
	*

	 	 	 	*
	*

	 	 	 	*
	*

	 	 	 	*

Product Storage and Stability

Maximum stability of ARASCO is achieved by shipping and storing the product frozen in the
original unopened container at -20 degrees Centigrade until thawed for use. The oil
should be protected from exposure to oxygen and elevated temperatures (> 30 C).
Shipping and storage under frozen conditions provides stability for ARASCO for up to three
years if product is kept frozen and unopened.

Once a container of oil is thawed and opened, use entire contents immediately. However,
if it is not possible to use the entire amount at one time, the remainder may be nitrogen
purged and refrozen at -20 degrees Centigrade.

Ingredients

Fungal Oil; * antioxidants.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance
on Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been
submitted separately to the Securities and Exchange Commission

 

 

 

Schedules to the First Amended and Restated ARA Alliance, Purchase and Production Agreement

SCHEDULE 2.77

GUARANTY AGREEMENT

[Please see attached.]

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance
on Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been
submitted separately to the Securities and Exchange Commission

 

 

 

Schedules to the First Amended and Restated ARA Alliance, Purchase and Production Agreement

CORPORATE GUARANTY

THIS CORPORATE GUARANTY is made as of this
 _____ 
day of April, 2004, by the parties set forth
below.

WHEREAS, *, a * company (“*”) incorporated under the laws of *, having its registered office
at *, hereinafter to be referred to as: the “Guarantor”;

WHEREAS, DSM Food Specialties B.V., a private limited liability company (“besloten
vennootschap met beperkte aansprakelijkheid”) incorporated under the laws of the Netherlands,
having its registered office at A. Fleminglaan 1 in Delft, the Netherlands (hereinafter to be
referred to as: “DFS”), is a *;

WHEREAS, DFS and Martek Biosciences Corporation, a corporation incorporated under the laws of
the State of Delaware, United States of America, having its principal place of business at 6480
Dobbin Road, Columbia, Maryland 21045, United States of America (hereinafter to be referred to as:
“Martek”), have entered into that certain ARA Alliance, Purchase and Production Agreement dated as
of the date hereof, as may be amended (the “ARA Agreement”);

WHEREAS, the Guarantor and Martek have agreed that the Guarantor shall guarantee the correct
and timely fulfillment by DFS of any and all of DFS’ obligations, undertakings, representations,
warranties and covenants to Martek under or arising out of the ARA Agreement as set forth herein;

NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

1. Arbitral Award Guaranty.

(a) Subject to the other terms and conditions of this Corporate Guaranty, the Guarantor hereby
unconditionally and irrevocably guarantees payment to Martek of any amount for which DFS may be
found to be indebted to Martek by virtue of a valid arbitral award established in accordance with
the provisions set forth in Section 10.5 of the ARA Agreement including but not limited to
liability for attorneys fees and costs (“Arbitral Award”).

(b) In the event full payment of any Arbitral Award is not received by Martek from DFS within
thirty (30) days of such award being issued, Guarantor shall immediately pay Martek the full amount
of such award without any further action on Martek’s part.

(c) Upon DFS’ failure to pay to Martek the amount of any Arbitral Award within thirty (30) days as
provided above, Guarantor agrees that Martek at its election may proceed directly and at once,
without notice, against Guarantor to collect the amount of the Arbitral Award without first
proceeding against DFS, any other person, or any assets of DFS or of any other person.

(d) This guaranty is absolute, unconditional, and continuing, and is in no way conditioned upon any
event or contingency, other than the issuance of the Arbitral Award, or upon any attempt to collect
from DFS through the commencement of legal proceedings or otherwise, and shall be binding upon and
enforceable in full against Guarantor without regard to any circumstance which might otherwise
constitute a defense available to, or a discharge of, Guarantor in respect of the Arbitral Award,
other then payment in full of the Arbitral Award. Guarantor acknowledges and agrees that the
Arbitral Award shall be binding on Guarantor as if Guarantor were a party to the arbitration
proceeding in which the award was issued.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance
on Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been
submitted separately to the Securities and Exchange Commission

 

 

 

Schedules to the First Amended and Restated ARA Alliance, Purchase and Production Agreement

2. Bankruptcy.

(a) If DFS is declared bankrupt (“faillissement”) or granted suspension of payments (“surséance van
betaling”) and a bankruptcy trustee or a court of competent jurisdiction fails to respect the
arbitration procedures set forth in Section 10.5 of the ARA Agreement or enjoins, stays or
otherwise delays for more than ninety (90) days an arbitration proceeding instituted thereunder,
Martek and the Guarantor shall resolve any claims under the ARA Agreement by arbitration conducted
in accordance with the procedures set forth in such Section 10.5 to determine the indebtedness and
liability of DFS to Martek. Guarantor agrees to pay Martek any amount of such liability or
indebtedness of DFS as established by the arbitration proceeding.

(b) In the event that DFS is the subject of a bankruptcy proceeding, Martek
hereby consents to the Guarantor’s assumption of the defence by DFS of any claim by Martek under
the ARA Agreement.

3. Claims.

Any and all claims under Section 1 of this Corporate Guaranty must be made within * of the date of
any Arbitral Award.

4. Term Date.

This Corporate Guaranty shall continue in full force and effect until the earlier of (i) such date
as all of the statutes of limitations applicable to any cause of action Martek might have against
DFS related to the ARA Agreement have expired or (ii) the date three (3) years after the expiration
or the termination of the ARA Agreement (“Term Date”), provided that this Corporate Guaranty shall
continue in effect even after the Term Date with regard to any Arbitral Award issued as a result of
any arbitration previously commenced by Martek against DFS before the Term Date and not yet
completed as of the Term Date.

5. Licenses.

In the event the licenses granted to Martek by DFS pursuant to Section 7.4(b) and (d) of the ARA
Agreement (the “Licenses”) are terminated as a result of DFS filing for or being placed into
bankruptcy or granted suspension of payments, Guarantor shall obtain promptly for Martek at no cost
to Martek any licenses as required for Martek to continue to have the license rights as specified
in Section 7.4(b) and (d) of the ARA Agreement. Martek reserves any and all statutory, contractual
and other legal rights to retain its rights with respect to the Licenses notwithstanding
termination or rejection in any bankruptcy or insolvency proceeding. It is understood and agreed
that if Guarantor obtains such licenses for Martek, Martek shall not be entitled to claim damages
against DFS, or the Guarantor pursuant to Section 2, for DFS’s failure to itself provide such
Licenses from and after the date(s) on which the Guarantor obtains such licenses for Martek.

6. Limitations.

The obligations of the Guarantor under this Corporate Guaranty shall never exceed the aggregate of
DFS’ obligations and/or liabilities under the ARA Agreement. The liability of the Guarantor
hereunder shall be without regard to a bankruptcy or suspension of payments of DFS, and with regard
solely to any action brought by Martek pursuant to Section 2, any and all defenses and limitations
with respect to DFS’ obligations and/or liabilities under the ARA Agreement, without regard to a
bankruptcy or suspension of payments of DFS, may also be invoked and relied upon by the Guarantor.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance
on Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been
submitted separately to the Securities and Exchange Commission

 

 

 

Schedules to the First Amended and Restated ARA Alliance, Purchase and Production Agreement

7. Article *.

This Corporate Guaranty is in addition to and is not in substitution for or in derogation of any
rights Martek has against the Guarantor pursuant to any declaration in accordance with Article *,
provided, however, that Martek agrees that it shall not be entitled to a double recovery of its
damages, and (i) to the extent that Martek recovers damages in a * Action, it shall not be entitled
to recover such damages again in an action under this Corporate Guaranty, and (ii) to the extent
Martek recovers damages in an action under this Corporate Guaranty, it shall not be entitled to
recover such damages again in a * Action.

8. Notices.

Any notice to be made to the Guarantor under this Corporate Guaranty must be made to:

*

Attn. Chairman of the Managing Board of Directors

***

with a copy to:

*

Attn. Director Corporate Legal Affairs

***

9. Governing Law.

This Corporate Guaranty shall be governed by and interpreted in accordance with the internal laws
(excluding the conflict of laws rules) of the State of New York, USA. The Guarantor hereby
irrevocably submits to the jurisdiction of any United States federal court sitting in New York, New
York in any action or proceeding arising out of or relating to this Corporate Guaranty, and
irrevocably agrees that all claims in respect of such action or proceeding may be heard and
determined in any such federal court. The Guarantor further agrees that service of any process,
summons, notice or document by registered mail to its address set forth in Section 8 above shall be
effective service of process for any action, suit or proceeding brought against the Guarantor in
any such court. The Guarantor irrevocably and unconditionally waives any objection to the laying
of venue of any action, suit or proceeding arising out of this Corporate Guaranty in such courts
and further irrevocably and unconditionally waives and agrees not to plead or claim in any such
court that any such action, suit or proceeding brought in any such court has been brought in an
inconvenient forum. Subject to the provisions of Section 7 hereof, the Guarantor further agrees
that a final judgment in any such action or proceeding shall be conclusive and may be enforced in
other jurisdictions by suit on the judgment or in any other manner provided by law.

10. Assignment.

This Corporate Guaranty shall be binding upon the successors and assigns of Guarantor; provided,
that no transfer, assignment or delegation by Guarantor without the consent of Martek shall release
Guarantor from its liabilities hereunder.

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance
on Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been
submitted separately to the Securities and Exchange Commission

 

 

 

Schedules to the First Amended and Restated ARA Alliance, Purchase and Production Agreement

11. Acknowledgement.

Guarantor acknowledges that this Corporate Guaranty is being furnished to Martek by it in order to
induce Martek to enter into the ARA Agreement with DFS. Guarantor further acknowledges that duly
authorized and competent agents or representatives of Guarantor have read, and understand, this
Corporate Guaranty and that Guarantor has been advised by competent counsel with regard to this
Corporate Guaranty.

12. No Waiver.

No failure or delay or lack of demand, notice or diligence in exercising any right under this
Corporate Guaranty shall operate as a waiver thereof, nor shall any single or partial exercise of
any such right preclude any other or further exercise thereof or the exercise of any other right
under this Corporate Guaranty.

13. Confession of Judgment.

Upon the failure or refusal of the Guarantor to pay in full the amount of any Arbitral Award upon
demand therefor, the Guarantor hereby authorizes the Clerk of Court of record in the federal court
sitting in Baltimore, Maryland, upon application by Martek, to enter judgment in favor of Martek
and against the Guarantor in the full outstanding amount of the Arbitral Award together with
interest accrued on the Arbitral Award at the rate of six percent (6%) per year from the date of
the Arbitral Award until paid, attorneys’ fees of one percent (1%) of the Arbitral Award and costs.
The Guarantor hereby waives presentment, demand, notice and protest and all other demands and
notices in connection with the delivery, acceptance, performance, default or enforcement hereof.

[The remainder of this page has been intentionally left blank.]

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance
on Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been
submitted separately to the Securities and Exchange Commission

 

 

 

Schedules to the First Amended and Restated ARA Alliance, Purchase and Production Agreement

IN WITNESS WHEREOF, the parties hereto have executed and delivered this Corporate Guaranty as
of the day and year first above written.

*

	 	 	 	 	 	 	 	 	 
	By:

	 	*
	 	By:
	 	*	 	 
	 

	 	 

Name: *
	 	 	 	 

Name: *
	 	 
	 

	 	Title: Member of the Managing Board of Directors
	 	 	 	Title: Director Corporate Legal Affairs	 	 

	 	 	 	 	 
	MARTEK BIOSCIENCES CORPORATION

 	 	 
	By:  	/s/ Steve Dubin
 	 	 
	 	Name:  	Steve Dubin 	 	 
	 	Title:  	President 	 	 

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance
on Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been
submitted separately to the Securities and Exchange Commission

 

 

 

Schedules to the First Amended and Restated ARA Alliance, Purchase and Production Agreement

SCHEDULE 2.104

MARTEK COSTS

Included Costs:

The Martek Costs per Unit of ARA shall equal the Variable Costs for Martek Services per Unit of ARA
plus the Fixed Costs for Martek Services per Unit of ARA. Fixed Costs and Variable Costs shall be
based on Generally Accepted Accounting Principles and shall be based on actual or budgeted costs as
applicable.

The depreciation portion of Fixed Costs shall be based on Martek’s internal depreciation policies
which are generally on a straight line basis for twenty years for the Company’s oil processing
plants, ten to fifteen years for oil processing machinery and equipment and five years for
furniture and fixtures.

The ARA portion of assets not totally dedicated to ARA, other than production assets (such as ERP
systems), shall be depreciated by using the Martek’s internal accounting standards applicable to
Martek operations in general, but still consistent with Generally Accepted Accounting Principles.

Excluded Costs:

The following costs shall not to be included in the Costs for Martek Services per Unit of ARA (the
“Excluded Costs”):

	 	•	 	All costs related to the importing and re-exporting of ARA products sent to DSM that
do not meet applicable Specifications, including but not limited to related freight,
tariffs and warehousing costs.

	 	•	 	Costs related to reworking material that originally did not meet applicable
Specifications pursuant to Section 4.7 of the Agreement.

	 	•	 	Legal costs associated with negotiating and drafting the Alliance Agreement as amended
and the Restated Agreement.

	 	•	 	R&D Contribution pursuant to Section 7.1(d).

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance
on Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been
submitted separately to the Securities and Exchange Commission

 

 

 

Schedules to the First Amended and Restated ARA Alliance, Purchase and Production Agreement

SCHEDULE 2.108

MARTEK PATENTS

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Application or	 	Appl. Date or	 	 	 	 
	SR/ No./ Hunton No.	 	Country	 	Patent Number	 	Date Issued	 	Title of Patent	 	Status
	2997-4-1

	 	US
	 	5,882,703 
	 	16-Mar-1999
	 	Product Containing Mortierella Sect.
Schmuckeri Lipids
	 	Granted
	2997-4

	 	US
	 	5,583,019 
	 	10-Dec-1996
	 	Method for Production of Arachidonic Acid
	 	Granted
	2997-4-1-1

	 	US
	 	6,245,365 
	 	12-Jun-2001
	 	Product Containing Mortierella Sect.
Schmuckeri Lipids
	 	Granted
	2997-4-1-1-1

	 	US
	 	6,319,698 
	 	20-Nov-2001
	 	Method for Producing Arachidonic Acid
	 	Granted
	2997-4-1-1-2

	 	US
	 	6,749,849 
	 	15-Jun-2004
	 	Method for Producing Arachidonic Acid

(as amended)
	 	Granted
	2997-4-1-1-2-1

	 	US
	 	7,195,791 
	 	27-Mar-2007
	 	Method for Production of Archidontic Acid
	 	Granted
	2997-4-1-1-2-1-1

	 	US
	 	11/531,439 
	 	13-Sep-2006
	 	Method for Production of Arachidonic Acid
	 	Published
	2997-4-1-1-2-1-1-C1

	 	US
	 	11/782,466 
	 	24-Jul-2007
	 	Method for Production of Arachidonic Acid
	 	Published
	2997-4-1-1-2-1-1-C2

	 	US
	 	11/782,571 
	 	24-Jul-2007
	 	Method for Production of Arachidonic Acid
	 	Published
	2997-4-1-2

	 	US
	 	6,541,049 
	 	1-Apr-2003
	 	Method for Production of Arachidonic Acid
	 	Granted
	2997-4-AU

	 	AU
	 	711967 
	 	10-Feb-2000
	 	Method for Production of Arachidonic Acid
	 	Granted
	2997-4-CA

	 	CA
	 	2163278 
	 	20-Nov-1995
	 	Method for Production of Arachidonic Acid
	 	Pending
	2997-4-EP

	 	EP
	 	EP0726321 
	 	12-Jun-2002
	 	Method for Production of Arachidonic Acid
	 	Granted
	2997-4-EPDE

	 	DE
	 	69621663.9-08
	 	12-Jun-2002
	 	Arachidonic Acid
	 	Granted
	2997-4-EP-DIV-1

	 	EP
	 	6008737.6 
	 	16-Jan-1996
	 	Method for Production of Arachidonic Acid
	 	Published
	2997-4-EP-DIV-HK

	 	HK
	 	2106865.7 
	 	16-Jan-1996
	 	Method for Production of Arachidonic Acid
	 	Pending
	2997-4-EPFR

	 	FR
	 	EP0726321 
	 	12-Jun-2002
	 	Method for Production of Arachidonic Acid
	 	Granted
	2997-4-EPGB

	 	GB
	 	EP0726321 
	 	12-Jun-2002
	 	Method for Production of Arachidonic Acid
	 	Granted
	2997-4-EPIT

	 	IT
	 	EP0726321 
	 	12-Jun-2002
	 	Method for Production of Arachidonic Acid
	 	Granted
	2997-4-JP

	 	JP
	 	7-314330 
	 	1-Dec-1995
	 	Method for Production of Arachidonic Acid
	 	Pending
	2997-4-JP-DIV-2

	 	JP
	 	2007-336075 
	 	27-Dec-2007
	 	Method for Production of Arachidonic Acid
	 	Published
	2997-19-PAU-1-1

	 	AU
	 	2008229885 
	 	19-Jan-2001
	 	Solventless Extraction Process
	 	Pending
	2997-19-PAU-1

	 	AU
	 	2005202980 
	 	30-Jun-2008
	 	Solventless Extraction Process
	 	Granted
	2997-19-PAU

	 	AU
	 	780619 
	 	7-Apr-2005
	 	Solventless Extraction Process
	 	Granted
	2997-19-PBR

	 	BR
	 	PI0107699-0 
	 	19-Jan-2001
	 	Solventless Extraction Process
	 	Pending
	2997-19-PCA

	 	CA
	 	2,397,665 
	 	19-Jan-2001
	 	Solventless Extraction Process
	 	Pending
	2997-19-PCN

	 	CN
	 	zk01806424.8 
	 	11-Feb-2009
	 	Solventless Extraction Process
	 	Granted
	2997-19-PCN-DIV

	 	CN
	 	200810184934.X
	 	19-Jan-2001
	 	Solventless Extraction Process
	 	Pending
	2997-19-PCZ

	 	CZ
	 	2002-2506 
	 	19-Jan-2001
	 	Solventless Extraction Process
	 	Pending
	2997-19-PEP

	 	EP
	 	1942672.5 
	 	19-Jan-2001
	 	Solventless Extraction Process
	 	Pending
	2997-19-PHK

	 	HK
	 	03102740.6 
	 	19-Jan-2001
	 	Solventless Extraction Process
	 	Published
	2997-19-PHU

	 	HU
	 	P0300556 
	 	19-Jan-2001
	 	Solventless Extraction Process
	 	Pending
	2997-19-PID

	 	ID
	 	WO0200201683 
	 	19-Jan-2001
	 	Solventless Extraction Process
	 	Pending
	2997-19-PIL

	 	IL
	 	150772 
	 	19-Jan-2001
	 	Solventless Extraction Process
	 	Pending

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance
on Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been
submitted separately to the Securities and Exchange Commission

 

 

 

Schedules to the First Amended and Restated ARA Alliance, Purchase and Production Agreement

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Application or	 	Appl. Date or	 	 	 	 
	SR/ No./ Hunton No.	 	Country	 	Patent Number	 	Date Issued	 	Title of Patent	 	Status
	2997-19-PIN-1

	 	IN
	 	6878/DELNP/2006
	 	19-Jan-2001
	 	Solventless Extraction Process
	 	Pending
	2997-19-PIN

	 	IN
	 	2002/00711/DEL
	 	19-Jan-2001
	 	Solventless Extraction Process
	 	Pending
	2997-19-PJP

	 	JP
	 	4020642 
	 	5-Oct-2007
	 	Solventless Extraction Process
	 	Granted
	2997-19-PJP-1

	 	JP
	 	2005-137044 
	 	19-Jan-2001
	 	Solventless Extraction Process
	 	Published
	2997-19-PKR

	 	KR
	 	2002-7009287 
	 	19-Jan-2001
	 	Solventless Extraction Process
	 	Pending
	2997-19-PMX-1

	 	MX
	 	PA/a/2005/009334
	 	19-Jan-2001
	 	Solventless Extraction Process
	 	Pending
	2997-19-PMX

	 	MX
	 	232230 
	 	18-Nov-2005
	 	Solventless Extraction Process
	 	Granted
	2997-19-PNO

	 	NO
	 	20023449 
	 	19-Jan-2001
	 	Solventless Extraction Process
	 	Pending
	2997-19-PNZ

	 	NZ
	 	520287 
	 	10-May-2004
	 	Solventless Extraction Process
	 	Granted
	2997-19-PPL

	 	PL
	 	P356587 
	 	19-Jan-2001
	 	Solventless Extraction Process
	 	Pending
	2997-19-PPL-1

	 	PL
	 	P387119 
	 	19-Jan-2001
	 	Solventless Extraction Process
	 	Pending
	2997-19-PRU

	 	RU
	 	2336307 
	 	19-Jan-2001
	 	Solventless Extraction Process
	 	Granted
	2997-19-PSG

	 	SG
	 	90582 
	 	28-Feb-2006
	 	Solventless Extraction Process
	 	Granted
	2997-19-TH

	 	TH
	 	063198 
	 	22-Jan-2001
	 	Solventless Extraction Process
	 	Pending
	2997-19-TW-1

	 	TW
	 	94128361 
	 	8-Mar-2001
	 	Solventless Extraction Process
	 	Pending
	2997-19-TW

	 	TW
	 	I 293648 
	 	21-Feb-2008
	 	Solventless Extraction Process
	 	Granted
	2997-19-1-C3

	 	US
	 	11/782,449 
	 	24-Jul-2007
	 	Solventless Extraction Process
	 	Published
	2997-19-1-C2

	 	US
	 	11/782,434 
	 	24-Jul-2007
	 	Solventless Extraction Process
	 	Published
	2997-19-1-C1

	 	US
	 	11/782,416 
	 	24-Jul-2007
	 	Solventless Extraction Process
	 	Published
	2997-19

	 	US
	 	6,750,048 
	 	15-Jun-2004
	 	Solventless Extraction Process
	 	Granted
	2997-19-1

	 	US
	 	7,351,558 
	 	1-Apr-2008
	 	Solventless Extraction Process
	 	Granted
	2997-19-PCT

	 	WO
	 	US01/01806 
	 	19-Jan-2001
	 	Solventless Extraction Process
	 	Nat Phase
	2997-19-PZA

	 	ZA
	 	2002/5790 
	 	23-Sep-2003
	 	Solventless Extraction Process
	 	Granted
	2997-42-PAU-DIV

	 	AU
	 	2009200718 
	 	12-Dec-2002
	 	Extraction and Winterization of Lipids
from Oil Seed and Microbia Sources
	 	Pending
	2997-42-PAU

	 	AU
	 	2002366642 
	 	26-Mar-2009
	 	Extraction and Winterization of Lipids
From Oil Seed and Microbial Sources
	 	Granted
	2997-42-PCA

	 	CA
	 	2469647 
	 	12-Dec-2002
	 	Extraction and Winterization of Lipids
From Oil Seed and Microbial Sources
	 	Pending
	2997-42-PCN

	 	CN
	 	ZL02828043.1
	 	2-Aug-2006
	 	Extraction and Winterization of Lipids
from Oilseed and Microbial Sources
	 	Granted
	2997-42-PEP

	 	EP
	 	02791414.2 
	 	12-Dec-2002
	 	Extraction and Winterization of Lipids
from Oilseed and Microbial Sources
	 	Published
	2997-42-PJP

	 	JP
	 	2003-550880 
	 	12-Dec-2002
	 	Extraction and Winterization of Lipids
from Oilseed and Microbial Sources
	 	Published
	2997-42-PNO

	 	NO
	 	20042929 
	 	12-Dec-2002
	 	Extraction and Winterization of Lipids
From Oilseed and Microbial Sources
	 	Pending
	2997-42-PUS

	 	US
	 	7,419,596 
	 	2-Sep-2008
	 	Extraction and Winterization of Lipids
From Oilseed and Microbial Sources
	 	Granted
	2997-42-PUS-1

	 	US
	 	12/184,974 
	 	1-Aug-2008
	 	Extraction and Winterization of Lipids
From Oilseed and Microbial Sources
	 	Published
	2997-42-PCT

	 	WO
	 	US02/39930 
	 	12-Dec-2002
	 	Extraction and Winterization of Lipids
from Oilseed and Microbial Sources
	 	Nat Phase
	2997-45-PAU

	 	AU
	 	2003237182 
	 	8-Jan-2009
	 	High-Quality Lipids and Methods for
Producing by Enzymatic Liberation form
Biomass
	 	Granted
	2997-45-PAU-1

	 	AU
	 	2008252072 
	 	3-May-2003
	 	High-Quality Lippids and Methods for
Producing by Enzymatic Liberation from
Biomass
	 	Pending

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance
on Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been
submitted separately to the Securities and Exchange Commission

 

 

 

Schedules to the First Amended and Restated ARA Alliance, Purchase and Production Agreement

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Application or	 	Appl. Date or	 	 	 	 
	SR/ No./ Hunton No.	 	Country	 	Patent Number	 	Date Issued	 	Title of Patent	 	Status
	2997-45-PCA

	 	CA
	 	2484334 
	 	3-May-2003
	 	High-Quality Lipids and Methods for
Producing by Enzymatic Liberation From
Biomass
	 	Pending
	2997-45-PEP

	 	EP
	 	03736552.5 
	 	3-May-2003
	 	HIGH-QUALITY LIPIDS AND METHODS FOR

PRODUCING BY ENZYMATIC LIBERATION FROM

BIOMASS
	 	Published
	2997-45-1

	 	US
	 	10/971,723 
	 	22-Oct-2004
	 	Methods for Producing Lipids by

Liberation from Biomass
	 	Published
	2997-45-PUS

	 	US
	 	10/513,576 
	 	11-Oct-2005
	 	High-Quality Lipids and Methods for
Producing by Enzymatic Liberation From
Biomass
	 	Published
	2997-45-PCT

	 	WO
	 	PCT/US03/14177
	 	3-May-2003
	 	High-Quality Lipids and Methods for
Production by Enzymatic Liberation from
Biomass
	 	Nat Phase
	2997-46-PAU

	 	AU
	 	2003238264 
	 	18-Jun-2003
	 	Stable Emulsions of Oils in Aqueous
Solutions and Methods for Producing Same
	 	Pending
	2997-46-PCA

	 	CA
	 	2489391 
	 	18-Jun-2003
	 	Stable Emulsions of Oils in Aqueous
Solutions and Methods for Producing Same
	 	Pending
	2997-46-PEP

	 	EP
	 	03737159.8 
	 	18-Jun-2003
	 	Stable Emulsions of Oils in Aqueous
Solutions and Methods for Producing Same
	 	Published
	2997-46-EPHK

	 	HK
	 	05109565.1 
	 	18-Jun-2003
	 	Stable Emulsions of Oils in Aqueous
Solutions and Methods for Producing Same
	 	Published
	2997-46-PJP

	 	JP
	 	2004-512524 
	 	18-Jun-2003
	 	Stable Emulsions of Oils in Aqueous
Solutions and Methods for Producing Same
	 	Pending
	2997-46-PJP-DIV

	 	JP
	 	2006-144750 
	 	25-May-2006
	 	Stable Emulsions of Oils in Aqueous
Solutions and Methods for Producing Same
	 	Published
	2997-46-PUS

	 	US
	 	10/518,957 
	 	27-Jun-2005
	 	Stable Emulsions of Oils in Aqueous
Solutions and Methods for Producing Same
	 	Pending
	2997-46-PCT

	 	WO
	 	US03/19108 
	 	18-Jun-2003
	 	Stable Emulsions of Oils in Aqueous
Solutions and Methods for Producing Same
	 	Nat Phase
	62611.000324-AT

	 	AT
	 	EP1642983 
	 	11-Apr-2007
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Granted
	62611.000009

	 	AU
	 	661674 
	 	21-Nov-1995
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Granted
	62611.000324-BE

	 	BE
	 	EP1642983 
	 	11-Apr-2007
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Granted
	62611.000012

	 	BR
	 	PI9205519.2 
	 	22-Jan-1992
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Appealed
	62611.000013

	 	CA
	 	2101273 
	 	2-Apr-2002
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Granted
	62611.000324-CH

	 	CH
	 	EP1642983 
	 	11-Apr-2007
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Granted
	62611.000324-DE

	 	DE
	 	EP1642983 
	 	11-Apr-2007
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Granted
	62611.000324-DK

	 	DK
	 	EP1642983 
	 	11-Apr-2007
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Granted
	62611.000352

	 	EP
	 	06077261.3 
	 	22-Jan-1992
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Published

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance
on Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been
submitted separately to the Securities and Exchange Commission

 

 

 

Schedules to the First Amended and Restated ARA Alliance, Purchase and Production Agreement

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Application or	 	Appl. Date or	 	 	 	 
	SR/ No./ Hunton No.	 	Country	 	Patent Number	 	Date Issued	 	Title of Patent	 	Status
	62611.000324

	 	EP
	 	EP1642983 
	 	11-Apr-2007
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	EPGrant
	62611.000324-ES

	 	ES
	 	EP1642983 
	 	11-Apr-2007
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Granted
	62611.000324-FR

	 	FR
	 	EP1642983 
	 	11-Apr-2007
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Granted
	62611.000324-GB

	 	GB
	 	EP1642983 
	 	11-Apr-2007
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Granted
	62611.000324-GR

	 	GR
	 	EP1642983 
	 	11-Apr-2007
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Granted
	62611.000378

	 	HK
	 	07113851.4 
	 	19-Dec-2007
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Published
	62611.000021

	 	ID
	 	ID0000393 
	 	22-Dec-1995
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Granted
	62611.000022

	 	IL
	 	100732 
	 	1-Oct-1995
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Granted
	62611.000324-IT

	 	IT
	 	EP1642983 
	 	11-Apr-2007
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Granted
	62611.000324-LU

	 	LU
	 	EP1642983 
	 	11-Apr-2007
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Granted
	62611.000324-MC

	 	MC
	 	EP1642983 
	 	11-Apr-2007
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Granted
	62611.000124

	 	MX
	 	183638 
	 	6-Jan-1997
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Granted
	62611.000027

	 	MX
	 	202940 
	 	6-Jul-2001
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Granted
	62611.000324-NL

	 	NL
	 	EP1642983 
	 	11-Apr-2007
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Granted
	62611.000030

	 	NZ
	 	241358 
	 	8-Feb-1995
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Granted
	62611.000032

	 	PH
	 	1992-43811 
	 	22-Aug-2002
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Granted
	62611.000033

	 	RU
	 	2120998 
	 	22-Jan-1992
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Granted
	62611.000324-SE

	 	SE
	 	EP1642983 
	 	11-Apr-2007
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Granted
	62611.000057

	 	US
	 	5658767 
	 	19-Aug-1997
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Granted

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance
on Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been
submitted separately to the Securities and Exchange Commission

 

 

 

Schedules to the First Amended and Restated ARA Alliance, Purchase and Production Agreement

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Application or	 	Appl. Date or	 	 	 	 
	SR/ No./ Hunton No.	 	Country	 	Patent Number	 	Date Issued	 	Title of Patent	 	Status
	62611.000031

	 	WO
	 	PCT/US92/00517
	 	22-Jan-1992
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Nat Phase
	62611.000034

	 	ZA
	 	92/0454 
	 	28-Oct-1992
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Granted
	62611.000273

	 	AT
	 	EP0800584 
	 	2-May-2003
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Granted
	62611.000043

	 	AU
	 	713567 
	 	16-Mar-2000
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Granted
	62611.000274

	 	BE
	 	EP0800584 
	 	2-May-2003
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Granted
	62611.000359

	 	BR
	 	PI9612999-9 
	 	3-Jan-1996
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Pending
	62611.000044

	 	BR
	 	PI9607179-6 
	 	3-Jan-1996
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Published
	62611.000045

	 	CA
	 	2209513 
	 	28-May-2002
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Granted
	62611.000272

	 	CH
	 	EP0800584 
	 	2-May-2003
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Granted
	62611.000321

	 	CN
	 	 	200510071295.2	 	 	3-Jan-1996
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Published
	62611.000046

	 	CN
	 	96192002.5 
	 	3-Jan-1996
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Published
	62611.000397

	 	CN
	 	 	200910006766.X	 	 	3-Jan-1996
	 	Arachidonic Acid and Methods for the
Production and Use Thereof
	 	Pending
	62611.000271

	 	DE
	 	69627816.2 
	 	2-May-2003
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Granted
	62611.000275

	 	DK
	 	EP0800584 
	 	2-May-2003
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Granted
	62611.000058

	 	EA
	 	001036 
	 	28-Aug-2000
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Granted
	62611.000048

	 	EP
	 	EP0800584 
	 	2-May-2003
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	EPGrant
	62611.000260

	 	EP
	 	03076254.6 
	 	3-Jan-1996
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Published
	62611.000276

	 	ES
	 	EP0800584 
	 	2-May-2003
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Granted
	62611.000347

	 	FI
	 	20060617 
	 	26-Jun-2006
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Pending

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance
on Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been
submitted separately to the Securities and Exchange Commission

 

 

 

Schedules to the First Amended and Restated ARA Alliance, Purchase and Production Agreement

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Application or	 	Appl. Date or	 	 	 	 
	SR/ No./ Hunton No.	 	Country	 	Patent Number	 	Date Issued	 	Title of Patent	 	Status
	62611.000049

	 	FI
	 	117442 
	 	13-Oct-2006
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Granted
	62611.000270

	 	FR
	 	EP0800584 
	 	2-May-2003
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Granted
	62611.000269

	 	GB
	 	EP0800584 
	 	2-May-2003
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Granted
	62611.000268

	 	GR
	 	20030402977 
	 	2-May-2003
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Granted
	62611.000346

	 	HK
	 	06105700.4 
	 	3-Jan-1996
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Published
	62611.000299

	 	HK
	 	04101355.3 
	 	3-Jan-1996
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Published
	62611.000267

	 	IE
	 	EP0800584 
	 	2-May-2003
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Granted
	62611.000266

	 	IT
	 	EP0800584 
	 	2-May-2003
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Granted
	62611.000326

	 	JP
	 	2009-80997 
	 	30-Mar-2009
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Pending
	62611.000401

	 	JP
	 	2009-80997 
	 	30-Mar-2009
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Pending
	62611.000050

	 	JP
	 	4014219 
	 	21-Sep-2007
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Granted
	62611.000325

	 	JP
	 	2005-368593 
	 	21-Dec-2005
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Published
	62611.000326

	 	JP
	 	2007-158505 
	 	15-Jun-2007
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Published
	62611.000348

	 	KR
	 	10-2006-7015060
	 	26-Jul-2006
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Pending
	62611.000357

	 	KR
	 	10-2008-7015041
	 	20-Jun-2008
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Pending
	62611.000265

	 	LU
	 	EP0800584 
	 	2-May-2003
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Granted
	62611.000263

	 	MC
	 	EP0800584 
	 	2-May-2003
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Granted
	62611.000051

	 	MX
	 	234429 
	 	13-Feb-2006
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Granted
	62611.000264

	 	NL
	 	EP0800584 
	 	2-May-2003
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Granted

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance
on Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been
submitted separately to the Securities and Exchange Commission

 

 

 

Schedules to the First Amended and Restated ARA Alliance, Purchase and Production Agreement

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Application or	 	Appl. Date or	 	 	 	 
	SR/ No./ Hunton No.	 	Country	 	Patent Number	 	Date Issued	 	Title of Patent	 	Status
	62611.000052

	 	NO
	 	320117 
	 	3-Jan-1996
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Granted
	62611.000054

	 	PL
	 	187694 
	 	14-Jan-2004
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Granted
	62611.000261

	 	PT
	 	EP0800584 
	 	2-May-2003
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Granted
	62611.000262

	 	SE
	 	EP0800584 
	 	2-May-2003
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Granted
	62611.000055

	 	SG
	 	42669 
	 	30-Mar-1999
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Granted
	62611.000053

	 	WO
	 	PCT/US96/00182
	 	3-Jan-1996
	 	ARACHIDONIC ACID AND METHODS FOR THE

PRODUCTION AND USE THEREOF
	 	Nat Phase
	62611.000105

	 	US
	 	6166231 
	 	26-Dec-2000
	 	TWO PHASE EXTRACTION OF OIL FROM BIOMASS
	 	Granted
	2997-33-PAE

	 	AE
	 	PCT/AE 378/2003
	 	14-May-2002
	 	Production of Use of a Polar Lipid-Rich
Fraction Containing Omega-3 and/or
Omega-6 Highly Unsaturated Fatty Acids
from Microbes, Genetically Modified
Plant Seeds and Marine Organisms
	 	Pending
	2997-33-PAU-DIV

	 	AU
	 	2009200194 
	 	14-May-2002
	 	Production of Use of a Polar Lipid-Rich
Fraction Containing Omega-3 and/or
Omega-6 Highly Unsaturated Fatty Acids
from Microbes, Genetically Moeified
Plant Seeds and Marine Organisms
	 	Pending
	2997-33-PAU

	 	AU
	 	2002309856 
	 	14-May-2002
	 	Production of Use of a Polar Lipid-Rich
Fraction Containing Omega-3 and/or
Omega-6 Highly Unsaturated Fatty Acids
from Microbes, Genetically Modified
Plant Seeds and Marine Organisms
	 	Published
	2997-33-PCA

	 	CA
	 	2,451,116 
	 	14-May-2002
	 	Production of Use of a Polar Lipid-Rich
Fraction Containing Omega-3 and/or
Omega-6 Highly Unsaturated Fatty Acids
from Microbes, Genetically Modified
Plant Seeds and Marine Organisms
	 	Pending
	2997-33-PEP

	 	EP
	 	02736881.0 
	 	14-May-2002
	 	Production of Use of a Polar Lipid-Rich
Fraction Containing Omega-3 and/or
Omega-6 Highly Unsaturated Fatty Acids
from Microbes, Genetically Modified
Plant Seeds and Marine Organisms
	 	Published
	2997-33-PJP

	 	JP
	 	2002-589426 
	 	14-May-2002
	 	Production of Use of a Polar Lipid-Rich
Fraction Containing Omega-3 and/or
Omega-6 Highly Unsaturated Fatty Acids
from Microbes, Genetically Modified
Plant Seeds and Marine Organisms
	 	Published

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance
on Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been
submitted separately to the Securities and Exchange Commission

 

 

 

Schedules to the First Amended and Restated ARA Alliance, Purchase and Production Agreement

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Application or	 	Appl. Date or	 	 	 	 
	SR/ No./ Hunton No.	 	Country	 	Patent Number	 	Date Issued	 	Title of Patent	 	Status
	2997-33-PJP-DIV

	 	JP
	 	2007-289167 
	 	21-Oct-2004
	 	Production of Use of a Polar Lipid-Rich
Fraction Containing Omega-3 and/or
Omega-6 Highly Unsaturated Fatty Acids
from Microbes, Genetically Modified
Plant Seeds and Marine Organisms
	 	Published
	2997-33-PMX

	 	MX
	 	PA/a/2003/010399
	 	14-May-2002
	 	Production and Use of a Polar Lipid-Rich
Fraction Containing Omega-3 and/or
Omega-6 Highly Unsaturated Fatty Acids
From Microbes, Genetically Modified
Plant Seeds and Marine Organisms
	 	Pending
	2997-33-PUS

	 	US
	 	10/457,066 
	 	21-Oct-2004
	 	Production and Use of a Polar Lipid-Rich
Fraction
	 	Pending
	2997-33-PCT

	 	WO
	 	US02/15454 
	 	14-May-2002
	 	Production of Use of a Polar Lipid-Rich
Fraction Containing Omega-3 and/or
Omega-6 Highly Unsaturated Fatty Acids
from Microbes, Genetically Modified
Plant Seeds and Marine Organisms
	 	Nat Phase

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance
on Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been
submitted separately to the Securities and Exchange Commission

 

 

 

Schedules to the First Amended and Restated ARA Alliance, Purchase and Production Agreement

SCHEDULE 2.109

MARTEK KNOW-HOW

Main fields of expertise:

Strains and strain improvement methodologies:

	 	•	 	Strains identified with significantly higher productivity and ARA potency than the *

	 	•	 	*

	 	•	 	*

Fermentation:

	 	•	 	*

	 	•	 	*

Downstream Processing:

	 	•	 	*

	 	•	 	*

	 	•	 	*

	 	•	 	*

	 	•	 	*

	 	•	 	*

Product Formulation:

	 	•	 	*

	 	•	 	*

Product Characterization:

	 	•	 	*

Transgenic Oilseeds:

	 	•	 	*

Feed Applications:

	 	•	 	*

	 	•	 	*

	 	•	 	*

	 	•	 	*

Ingredient Forms:

	 	•	 	*

	 	•	 	*

Product Safety and Toxicology:

	 	•	 	*

	 	•	 	*

Product Efficacy & Health Benefits:

	 	•	 	*

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the Securities
Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission

 

 

 

Schedules to the First Amended and Restated ARA Alliance, Purchase and Production Agreement

SCHEDULE 2.118

* CUSTOMERS

	 	1.	 	*

	 	2.	 	*

	 	3.	 	*

	 	4.	 	*

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the Securities
Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission

 

 

 

Schedules to the First Amended and Restated ARA Alliance, Purchase and Production Agreement

SCHEDULE 4.2(a)

DSM BIOMASS CERTIFICATE OF ANALYSIS

	 	 	 	 	 
	

	 	Certificate of Analysis
	 	ARA-CoA-004M
	 	ARA Biomass
	 	Revision 1
	 	 	 	13 July 2009

Product no: 2984

	 	 	 	 	 	 
	Parameters	 	Requirements	 	Result
	Description
	 	Granulate	 	 	 
	Smell
	 	Characteristic	 	 
	Color
	 	Brown	 	 	 
	*
	 	*	 	 	 
	*
	 	*	 	 	 
	*
	 	*	 	 	 
	*
	 	*	 	 	 
	*
	 	*	 	 	 
	*
	 	*	 	 	 
	*
	 	*	 	 	 
	*
	 	*	 	 	 
	*
	 	*	 	 	 

Storage:

	 	•	 	Below -2°C +/- 3°C, preferably lower temperatures

	 
	 	•	 	Protected from light

	 
	 	•	 	Dry conditions

Packaging:

	 	•	 	Big Bags (polypropylene with polyethylene liner), anti static

	 
	 	•	 	Labeled with product number, batch number, production number, production date and storage conditions on both inner and outer bag

*

Remarks

	 	 	 
	 

	 	 
	Date:

	 	QA-Manager:

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the Securities
Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission

 

 

 

Schedules to the First Amended and Restated ARA Alliance, Purchase and Production Agreement

SCHEDULE 4.2(b)

MARTEK FINISHED OIL CERTIFICATE OF ANALYSIS

	 	 	 	 	 	 	 
	

	 	Certificate of Analysis
	 
	 	 	 	 	 	 
	 

	 	ARASCO®
	 
	 	 	 	 	 	 
	 

	 	Arachidonic Acid
	 
	 	 	 	 	 	 
	 

	 	Lot No.
	 	 	 	*
	 
	 	 	 	 	 	 
	 

	 	Country of Origin
	 	 	 	United States
	 
	 	 	 	 	 	 
	 

	 	Date of Manufacture
	 	 	 	*
	 
	 	 	 	 	 	 
	 

	 	Expiration Date (frozen, -20oC)
	 	 	 	*

	 	 	 
	General Characteristics	 	 
	 
	 	 
	Description:

	 	Vegetable oil from fungi, which contains approximately 40% Arachidonic Acid (ARA)
	Appearance:

	 	Clear, free flowing yellow liquid oil (triglyceride) at 40oC
	Aroma

	 	Characteristic
	Antioxidants

	 	*

	 	 	 	 	 	 	 
	Chemical Characteristics	 	Units	 	Specification	 	Result
	 
	Arachidonic Acid
	 	Area %	 	*	 	*
	Arachidonic Acid
	 	mg/g	 	— *	 	*
	*
	 	%	 	*	 	*
	Free Fatty Acid
	 	%	 	max 0.4	 	*
	*
	 	meq/kg	 	*	 	*
	*
	 	%	 	*	 	*
	*
	 	%	 	*	 	*
	*
	 	%	 	*	 	*
	*
	 	%	 	*	 	*

	 	 	 	 	 	 	 
	Elemental Composition	 	Units	 	Specification	 	Result
	 
	*
	 	ppm	 	*	 	*
	*
	 	ppm	 	*	 	*
	*
	 	ppm	 	*	 	*
	*
	 	ppm	 	*	 	*
	*
	 	ppm	 	*	 	*
	*
	 	ppm	 	*	 	*
	*
	 	ppm	 	*	 	*
	*
	 	ppm	 	*	 	*
	*
	 	ppm	 	*	 	*
	*
	 	ppm	 	*	 	*
	*
	 	ppm	 	*	 	*
	*
	 	ppm	 	*	 	*
	*
	 	ppm	 	*	 	*

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Fatty Acid Profile	 	Units	 	 	Specification	 	 	Result	 
	 
	*
	 	Area %	 	 	*	 	 	 	*	 
	*
	 	Area %	 	 	*	 	 	 	*	 
	*
	 	Area %	 	 	*	 	 	 	*	 
	*
	 	Area %	 	 	*	 	 	 	*	 
	*
	 	Area %	 	 	*	 	 	 	*	 
	*
	 	Area %	 	 	*	 	 	 	*	 
	*
	 	Area %	 	 	*	 	 	 	*	 
	*
	 	Area %	 	 	*	 	 	 	*	 
	*
	 	Area %	 	 	*	 	 	 	*	 
	*
	 	Area %	 	 	*	 	 	 	*	 
	*
	 	Area %	 	 	*	 	 	 	*	 
	*
	 	Area %	 	 	*	 	 	 	*	 
	*
	 	Area %	 	 	*	 	 	 	*	 
	*
	 	Area %	 	 	*	 	 	 	*	 
	*
	 	Area %	 	 	*	 	 	 	*	 
	*
	 	Area %	 	 	*	 	 	 	*	 
	*
	 	Area %	 	 	*	 	 	 	*	 
	*
	 	Area %	 	 	*	 	 	 	*	 
	*
	 	Area %	 	 	*	 	 	 	*	 
	*
	 	Area %	 	 	*	 	 	 	*	 
	*
	 	Area %	 	 	*	 	 	 	*	 
	*
	 	Area %	 	 	*	 	 	 	*	 
	*
	 	Area %	 	 	*	 	 	 	*	 
	*
	 	Area %	 	 	*	 	 	 	*	 
	*
	 	Area %	 	 	*	 	 	 	*	 
	*
	 	Area %	 	 	*	 	 	 	*	 
	*
	 	Area %	 	 	*	 	 	 	*	 

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the Securities
Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission

 

 

 

Schedules to the First Amended and Restated ARA Alliance, Purchase and Production Agreement

	 	 	 	 	 
	Martek Biosciences Corporation certifies this product is vegetable oil from fungi, which
contains approximately 40% Arachidonic Acid (ARA), and meets the product specifications as
outlined above. ARASCO® is Kosher and Halal Certified and is BSE/TSE free.
	 	Released By:

 

 	 	Jennifer Zaffarano
Release Specialist I

 

	 	 	 
	*	 	Martek will endorse the results of this Certificate of Analysis for a period of up to three years from the date of manufacture if the material is stored frozen (~-20°C) in the original, unopened containers.
Beyond three years, we recommend the quality of the material be confirmed prior to use, by retesting the Certificate of Analysis parameters.

	 	 	 	 	 	 	 
	Martek Biosciences Corporation

	 	Martek Biosciences Boulder Corporation
	 	Martek Biosciences Kingstree Corporation
	 	Martek Biosciences Corporation
	6480 Dobbin Road

	 	4909 Nautilus Court North
	 	1416 N. Williamsburg County Highway
	 	555 Rolling Hills Lane
	Columbia, MD 21045

	 	Boulder, CO 80301
	 	Kingstree, SC 29556
	 	Winchester, KY 40391
	(800) 662-6339

	 	(303) 381-8100
	 	(843) 381-8485
	 	(859) 744-0920
	(410) 740-0081

	 	Research and Development
	 	Manufacturing
	 	Manufacturing
	Customer Service
	 	 	 	 	 	 

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the Securities
Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission

 

 

 

Schedules to the First Amended and Restated ARA Alliance, Purchase and Production Agreement

SCHEDULE 4.6(a)

MANUFACTURING CHANGES

A. Documentation: All process changes must be documented and approved by management level
representatives from the departments applicable to the process change, including but not limited
to, Process Development, Manufacturing, and Quality Assurance. DSM and Martek will each maintain a
log of all process changes, which will be accessible to the other party. Process changes are
permanent modifications made to the manufacturing and testing processes. Temporary process
deviations will be appropriately documented by each party in the applicable production and testing
records and addressed by the Committee.

B. Major vs. minor changes: Changes are categorized as “minor” or “major” process changes, as
summarized in the examples below:

	 	•	 	Minor changes (Any change that has an impact to yield or process efficiency)

	 	•	 	Fermentation — *.

	 
	 	•	 	Pasteurization, Filtration, Extrusion and Drying — *.

	 
	 	•	 	Extraction and RBD — *.

	 	•	 	Major changes (Any change that has or may have a detectable and significant
effect on final product properties as specified in the product specification forms)

	 	•	 	Fermentation — *.

	 
	 	•	 	Pasteurization, Filtration, Extrusion and Drying — *.

	 
	 	•	 	Extraction and RBD — *.

All changes not specified above must be discussed by the Quality Subcommittee with recommendation
to the Steering Committee as appropriate.

C. Customer notification requirements:

	 	•	 	Both parties will provide pre-notification of any change to production controls,
processes and test methods to allow the other party to determine if a change is major or
minor prior to implementation.

	 	•	 	All major process and test method changes require approval of the other party prior to
implementation.

	 	•	 	Martek is responsible to determine if and when process or test method changes require
customer notification within the Martek ARA Fields of Use.

	 	•	 	Martek is responsible to determine if and when a process or test methods change requires
regulatory review within the Martek ARA Fields of Use.

Version 4 — Modified July 13, 2009

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the Securities
Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission

 

 

 

Schedules to the First Amended and Restated ARA Alliance, Purchase and Production Agreement

SCHEDULE 4.6(b)

QUALIFICATION REQUIREMENTS

	 	 	 	 	 
	Physical Description	 	 	 	Method
	Description:

	 	Vegetable oil from m. alpina fungi	 	 
	Appearance:

	 	Clear, free-flowing liquid at 40° C
	 	Visual
	Color:

	 	Light-medium yellow
	 	Visual
	Odor:

	 	Characteristic (1)
	 	Sensory panel evaluation

	 	 	 	 	 	 	 	 	 
	Fatty Acid Composition	 	 	 	 	 	Sensory Limits (1)	 	 
	*
	 	*	 	*	 	*	 	 
	*
	 	*	 	*	 	*	 	*
	*
	 	*	 	*	 	*	 	*
	*
	 	*	 	*	 	*	 	*
	*
	 	*	 	*	 	*	 	*
	*
	 	*	 	*	 	*	 	 
	*
	 	*	 	*	 	*	 	*
	*
	 	*	 	*	 	*	 	*
	*
	 	*	 	*	 	*	 	*
	*
	 	*	 	*	 	*	 	*
	*
	 	*	 	*	 	 	 	 
	*
	 	*	 	*	 	Stability	 	 
	*
	 	*	 	*	 	*	 	 
	Others
	 	—	 	*	 	 	 	 

	 	 	 	 	 	 	 	 	 
	Chemical Analyses	 	Units	 	Minimum	 	Maximum	 	Method
	*
	 	mg/g	 	*	 	*	 	*
	*
	 	%	 	*	 	*	 	*
	*
	 	meq/kg	 	*	 	*	 	*
	*
	 	—	 	*	 	*	 	*
	*
	 	—	 	*	 	*	 	*
	*
	 	%	 	*	 	*	 	*
	*
	 	%	 	*	 	*	 	*
	*
	 	%	 	*	 	*	 	*
	*
	 	%	 	*	 	*	 	*
	 
	Elemental Analyses
	 	 	 	 	 	 	 	 
	*
	 	ppm	 	*	 	*	 	*
	*
	 	ppm	 	*	 	*	 	*
	*
	 	ppm	 	*	 	*	 	*
	*
	 	ppm	 	*	 	*	 	*
	*
	 	ppm	 	*	 	*	 	*
	*
	 	ppm	 	*	 	*	 	*
	*
	 	ppm	 	*	 	*	 	*
	*
	 	ppm	 	*	 	*	 	*
	*
	 	ppm	 	*	 	*	 	*
	*
	 	ppm	 	*	 	*	 	*
	*
	 	ppm	 	*	 	*	 	*
	*
	 	ppm	 	*	 	*	 	*
	*
	 	ppm	 	*	 	*	 	*

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the Securities
Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission

 

 

 

Schedules to the First Amended and Restated ARA Alliance, Purchase and Production Agreement

SCHEDULE 6.1-A

BELVIDERE USAGES

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Variable Cost Component	 	UOM	 	2009	 	2010	 	2011	 	2012	 	2013	 	2014
	 
	Dextrose
	 	Kg/Unit	 	*	 	*	 	*	 	*	 	*	 	*
	Yeast Extract
	 	Kg/Unit	 	*	 	*	 	*	 	*	 	*	 	*
	Electricity
	 	kWh/Unit	 	*	 	*	 	*	 	*	 	*	 	*
	Natural Gas
	 	Dthm/Unit	 	*	 	*	 	*	 	*	 	*	 	*

The total of all other Variable Cost Components will be equal to $*/ Unit for each year (2010
- 2014). The Usages listed above are subject to adjustment based on the provisions of
Sections 4.3(b), 4.6(d), and 6.3(c).

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the Securities
Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission

 

 

 

Schedules to the First Amended and Restated ARA Alliance, Purchase and Production Agreement

SCHEDULE 6.1-B

2009 DSM VARIABLE COSTS PER UNIT OF ARA

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Capua	 	Units	 	 	Rate	 	 	Usage/Unit	 	 	Cost/Unit	 
	Dextrose
	 	€/Kg	 	 	*	 	 	 	*	 	 	 	*	 
	Yeast Extract
	 	€/Kg	 	 	*	 	 	 	*	 	 	 	*	 
	Electricity
	 	€/kWh	 	 	*	 	 	 	*	 	 	 	*	 
	Natural Gas
	 	€/mc	 	 	*	 	 	 	*	 	 	 	*	 
	Other
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	*	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	*	 
	 
	 
	 	 	 	 	 	 	 	 	 	@ $*/€	 	 	*	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Belvidere	 	Units	 	 	Rate	 	 	Usage/Unit	 	 	Cost/Unit	 
	Dextrose
	 	$/Kg	 	 	*	 	 	 	*	 	 	 	*	 
	Yeast Extract
	 	$/Kg	 	 	*	 	 	 	*	 	 	 	*	 
	Electricity
	 	$/kWh	 	 	*	 	 	 	*	 	 	 	*	 
	Natural Gas
	 	$/Dthm	 	 	*	 	 	 	*	 	 	 	*	 
	Other
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	*	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	*	 

	 	 	 	 	 	 	 	 	 
	 	 	2009 Volume (MT)	 	 	Total Cost (000s)	 
	Capua	 	 	*	 	 	 	*	 
	Belvidere	 	 	*	 	 	 	*	 
	 
	 	 	 	 	 	 
	 Total	 	 	*	 	 	 	*	 
	 
	Weighted average Variable Cost per Unit of ARA
	 	 	 	 	 	 	*	 

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on Rule 24b-2 of the Securities
Exchange Act of 1934. The confidential portions have been submitted separately to the Securities and Exchange Commission

 

 

 

Schedules to the First Amended and Restated ARA Alliance, Purchase and Production Agreement

SCHEDULE 6.2-A

2009 QUARTERLY RECONCILIATION FORMAT

2009 Quarterly Reconciliation

	 	 	 	 	 	 	 	 	 
	Total (Credit)/Debit
	 	€	*	 	 	€	*	 

2009 Budgeted Price per Kg of 40% ARA Crude Oil

	 	 	 	 	 	 	 	 	 
	DSM Fixed Costs
	 	 	 	 	 	$	*	 
	DSM Variable Costs
	 	 	 	 	 	$	*	 
	DSM Mark Up
	 	 	 	 	 	$	*	 
	 
	 	 	 	 	 	 
	Budgeted Price (Kg)
	 	€	*	 	 	$	*	 
	 
	 
	 	 	*	 	 	 	*	 
	 
	 	 	-	 	 	 	-	 
	Conversion Factor (Biomass:Crude Oil)
	 	 	*	 	 	 	*	 
	Budgeted Biomass Price (Kg)
	 	€	*	 	 	$	*	 

Volume and Currency Reconciliation

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total 40% Crude Oil Extracted (Kg)
	 	 	*	 	 	 	 	 	 	 	 	 	 	 	 	 
	* Volume Split
	 	 	*	 	 	 	*	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Amounts Due
	 	€	*	 	 	$	*	 	 	 	 	 	 	 	 	 
	Invoice Amounts Paid
	 	€	*	 	 	$	*	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	$	*	 	 	(Credit)/Debit
	 
	 	 	 	 	 	 	 	 	 	€	*	 	 	(Credit)/Debit

Rate Reconciliation

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Budgeted	 	 	 	 	 	 	 	 	 	 	 
	*	 	Budget Rate	 	 	Actual Rate	 	 	Usage	 	 	 	 	 	Delta	 	 	 	 	 
	*
	 	€	*	 	 	€	*	 	 	 	*	 	 	 	 	 	 	€	*	 	 	 	 	 
	*
	 	€	*	 	 	€	*	 	 	 	*	 	 	 	 	 	 	€	*	 	 	 	 	 
	*
	 	€	*	 	 	€	*	 	 	 	*	 	 	 	 	 	 	€	*	 	 	 	 	 
	*
	 	€	*	 	 	€	*	 	 	 	*	 	 	 	+	 	 	€	*	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	€	*	 	 	Total Delta
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	X	 	 	 	*	 	 	Crude Oil (Kg)
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	€	*	 	 	(Credit)/Debit
	*
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	*
	 	$	*	 	 	$	*	 	 	 	*	 	 	 	 	 	 	$	*	 	 	 	 	 
	*
	 	$	*	 	 	$	*	 	 	 	*	 	 	 	 	 	 	$	*	 	 	 	 	 
	*
	 	$	*	 	 	$	*	 	 	 	*	 	 	 	 	 	 	$	*	 	 	 	 	 
	*
	 	$	*	 	 	$	*	 	 	 	*	 	 	 	 	 	 	$	*	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	*	 	 	Total Delta
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	*	 	 	Crude Oil (Kg)
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	*	 	 	(Credit)/Debit

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in
reliance on Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions
have been submitted separately to the Securities and Exchange Commission

 

 

 

Schedules to the First Amended and Restated ARA Alliance, Purchase and Production Agreement

RBD Yield Reconciliation

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total 40% Crude Oil In (Kg)
	 	 	*	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total 40% Finished Oil Out (Kg)
	 	 	*	 	 	 	*	 	 	Yield	 	 	 	 	 	 	 	 
	Total 40% Finished Oil Expected (Kg)
	 	 	*	 	 	 	*	 	 	Yield	 	 	 	 	 	 	 	 
	 
	 	 	-	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	40% Finished Oil Difference
	 	 	*	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	40% Crude Oil Difference
	 	 	*	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	50% of Variable Costs
	 	$	*	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	100% of DSM Mark Up
	 	$	*	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	50% Variable Cost + 100% DSM Mark Up
	 	$	*	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	$	*	 	 	(Credit)/Debit

	 	 	 	 	 	 	 	 	 
	Martek Profit Sharing Fee (Q4 only)
	 	$	*	 	 	Debit
	 
	 	 	 	 	 	 	 	 
	DSM ARA Field of Use & Adult ARA Applications Royalty (Q4 only)
	 	$	*	 	 	(Credit)

Adjusted Annual Fixed Costs Reconciliation (Q4 only)

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total 40% Crude Oil Delivered to Martek (Kg)
	 	 	*	 	 	(excluding Carryover Units)	 	 	 	 
	Total 40% Crude Oil Produced by DSM (Kg)
	 	 	*	 	 	(excluding Carryover Units)	 	 	 	 
	 
	 	 	*	 	 	 	 	 	 	 	 	 
	 
	 	 	 
	Agreed Annual Fixed Costs
	 	$	*	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Adjusted Annual Fixed Costs
	 	$	*	 	 	 	 	 	 	 	 	 
	Aggregate Agreed Annual Fixed Costs per Unit of ARA paid
	 	$	*	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	$	*	 	 	(Credit)/Debit

	 	 	 
	Note:	 	the above reconciliation format example illustrates common calculations, but does not include all possible reconciliation lines.

	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

 

 

Schedules to the First Amended and Restated ARA Alliance, Purchase and Production Agreement

SCHEDULE 6.2-B

2010-2014 QUARTERLY RECONCILIATION FORMAT

2010 Quarterly Reconciliation

	 	 	 	 	 	 	 	 	 
	Total (Credit)/Debit
	 	€	*	 	 	€	*	 

2010 Budgeted Price per Kg of 40% ARA Crude Oil

	 	 	 	 	 	 	 	 	 
	DSM Fixed Costs
	 	 	 	 	 	$	*	 
	DSM Variable Costs
	 	 	 	 	 	$	*	 
	DSM Mark Up
	 	 	 	 	 	$	*	 
	 
	 	 	 	 	 	 
	Budgeted Price (Kg)
	 	€	*	 	 	$	*	 
	 
	 
	 	 	 	 	 	 	*	 
	 
	 	 	-	 	 	 	-	 
	Conversion Factor (Biomass:Crude Oil)
	 	 	 	 	 	 	*	 
	Budgeted Biomass Price (Kg)
	 	 	 	 	 	$	*	 

Volume and Currency Reconciliation

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total 40% Crude Oil Extracted (Kg)
	 	 	*	 	 	 	 	 	 	 	 	 	 	 	 	 
	25%-75% Volume Split
	 	 	*	 	 	 	*	 	 	 	 	 	 	 	 	 
	 
	Total Amounts Due
	 	€	*	 	 	$	*	 	 	 	 	 	 	 	 	 
	Invoice Amounts Paid
	 	€	*	 	 	$	*	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	$	*	 	 	(Credit)/Debit
	 
	 	 	 	 	 	 	 	 	 	€	*	 	 	(Credit)/Debit

Rate Reconciliation

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Budgeted	 	 	 	 	 	 	 	 
	*	 	Budget Rate	 	 	Actual Rate	 	 	Usage	 	 	Delta	 	 	 	 	 
	*
	 	$	*	 	 	$	*	 	 	 	*	 	 	$	*	 	 	 	 	 
	*
	 	$	*	 	 	$	*	 	 	 	*	 	 	$	*	 	 	 	 	 
	*
	 	$	*	 	 	$	*	 	 	 	*	 	 	$	*	 	 	 	 	 
	*
	 	$	*	 	 	$	*	 	 	 	*	 	 	$	*	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	$	*	 	 	Total Delta
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	*	 	 	Crude Oil (Kg)
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	$	*	 	 	(Credit)/Debit

RBD Yield Reconciliation

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total 40% Crude Oil In (Kg)
	 	 	*	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total 40% Finished Oil Out (Kg)
	 	 	*	 	 	 	*	 	 	Yield	 	 	 	 	 
	Total 40% Finished Oil Expected (Kg)
	 	 	*	 	 	 	*	 	 	Yield	 	 	 	 	 
	 
	 	 	-	 	 	 	 	 	 	 	 	 	 	 	 	 
	40% Finished Oil Difference
	 	 	*	 	 	 	 	 	 	 	 	 	 	 	 	 
	40% Crude Oil Difference
	 	 	*	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	50% of Variable Costs
	 	$	*	 	 	 	 	 	 	 	 	 	 	 	 	 
	100% of DSM Mark Up
	 	$	*	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	50% Variable Cost + 100% DSM Mark Up
	 	$	*	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	$	*	 	 	(Credit)/Debit

	 	 	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

 

 

Schedules to the First Amended and Restated ARA Alliance, Purchase and Production Agreement

	 	 	 	 	 	 	 	 	 
	Martek Profit Sharing Fee (Q4 only)
	 	$	*	 	 	Debit
	 
	DSM ARA Field of Use & Adult ARA Applications Royalty (Q4 only)
	 	$	*	 	 	(Credit)

Adjusted Annual Fixed Costs Reconciliation (Q4 only)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total 40% Crude Oil Delivered to Martek (Kg)
	 	 	*	 	 	(excluding Carryover Units)	 	 	 	 	 	 	 	 
	Total 40% Crude Oil Produced by DSM (Kg)
	 	 	*	 	 	(excluding Carryover Units)	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	*	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Agreed Annual Fixed Costs
	 	$	*	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Adjusted Annual Fixed Costs
	 	$	*	 	 	 	 	 	 	 	 	 	 	 	 	 
	Aggregate Agreed Annual Fixed Costs per Unit of ARA paid
	 	$	*	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	$	*	 	 	(Credit)/Debit

	 	 	 
	Note:	 	the above reconciliation format example illustrates common calculations, but does not include all possible reconciliation lines.

	 
	*	 	The asterisk denotes that confidential portions of this exhibit have been omitted in reliance on
Rule 24b-2 of the Securities Exchange Act of 1934. The confidential portions have been submitted
separately to the Securities and Exchange Commission

 

 

 

SCHEDULE 6.3(a)

DSM FIXED COSTS PAYMENT CALCULATION IN THE EVENT OF DSM SHORTFALLS

*
 

 

 

	 	 	 	 	 
	Example 1
	 	 	 	 
	Units of ARA forcasted for purchase (prior Nov)
	 	 	*	 
	Agreed Annual Fixed Costs
	 	$	*	 
	Agreed Annual Fixed Costs per Unit of ARA
	 	$	*	 
	Units of ARA delivered to Martek
	 	 	*	 
	Total Units of ARA produced by DSM
	 	 	*	 
	Ratio of Units of ARA delived to produced
	 	 	*	 
	(A) Adjusted Annual Fixed Costs
	 	$	*	 
	(B) Aggregate sum of DSM Fixed Costs paid
	 	$	*	 
	 	 	 	 
	 
	Difference to be paid to DSM
	 	$	*	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Example 2
	 	Year 1-Q1	 	 	Year 1-Q2	 	 	Year 1-Q3	 	 	Year 1-Q4	 	 	Year 2-Q1	 	 	Year 2-Q2	 	 	Year 2-Q3	 	 	Year 2-Q4
	Units of ARA forcasted for purchase (prior Nov)
	 	 	*	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	*	 	 	 	 	 	 	 	 	 	 	 	 	 
	Agreed Annual Fixed Costs
	 	$	*	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	*	 	 	 	 	 	 	 	 	 	 	 	 	 
	Agreed Annual Fixed Costs per Unit of ARA
	 	$	*	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	*	 	 	 	 	 	 	 	 	 	 	 	 	 
	Units of ARA requested in Martek Firm Order
	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 
	Units of ARA delivered to Martek
	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 
	DSM Shortfall
	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 
	Cumulative four (4) Rolling DSM Shortfall
	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 
	Units of ARA delivered to Martek
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	*	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	*	 
	Total Units of ARA produced by DSM
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	*	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	*	 
	Ratio of Units of ARA delived to produced
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	*	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	*	 
	Adjusted Annual Fixed Costs
	 	 	 	 	 	 	 	 	 	 	 	 	 	$	*	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	*	 
	Units of ARA requesed in Martek Firm Orders
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	*	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	*	 
	Shortfall Fixed Costs per Unit of ARA
	 	 	 	 	 	 	 	 	 	 	 	 	 	$	*	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	*	 
	(A) Adjusted Annual Fixed Costs
	 	 	 	 	 	 	 	 	 	 	 	 	 	$	*	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(B) Aggregate sum of DSM Fixed Costs paid
	 	 	 	 	 	 	 	 	 	 	 	 	 	$	*	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Difference to be paid to DSM
	 	 	 	 	 	 	 	 	 	 	 	 	 	$	*	 	 	 	 	 	 	(Credit) to Martek	 	$	*	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Shortfall Fixed Costs
	 	 	 	 	 	 	 	 	 	 	 	 	 	$	*	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	*	 
	Aggregate sum of DSM Fixed Costs paid
	 	 	 	 	 	 	 	 	 	 	*	 	 	$	*	 	 	 	 	 	 	 	 	 	 	 	-	 	 	$	*	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6.3(a)(ii) (Credit)/Debit
	 	 	 	 	 	 	 	 	 	 	 	 	 	$	—	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	*	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Units of ARA produced and sold by Martek > 40,000 Units
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	*	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	*	 
	Shortfall Fixed Costs per Unit of ARA
	 	 	 	 	 	 	 	 	 	 	x	 	 	$	*	 	 	 	 	 	 	 	 	 	 	 	x	 	 	$	*	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6.3(a)(i)(X)Debit
	 	 	 	 	 	 	 	 	 	 	 	 	 	$	*	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	*	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	DSM Mark Up per Unit of ARA
	 	 	 	 	 	 	 	 	 	 	 	 	 	$	*	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	*	 
	Adjusted DSM Variable Cost per Unit of ARA
	 	 	 	 	 	 	 	 	 	 	 	 	 	$	*	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	*	 
	Shortfall Fixed Costs per Unit of ARA
	 	 	 	 	 	 	 	 	 	 	 	 	 	$	*	 	 	 	 	 	 	 	 	 	 	 	+	 	 	$	*	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Sum
	 	 	 	 	 	 	 	 	 	 	 	 	 	$	*	 	 	 	 	 	 	 	 	 	 	 	=	 	 	$	*	 
	Third party price per Unit of ARA
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	-	 	 	$	*	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Difference
	 	 	 	 	 	 	 	 	 	 	 	 	 	$	*	 	 	 	 	 	 	 	 	 	 	 	=	 	 	$	*	 
	Units of ARA produced by a third party and sold by Martek > 40,000 Units
	 		 	 	 	 	 	 	 	 	 	 	*	 	 	 	 	 	 	 	 	 	 	 	x	 	 	 	*	 
	6.3(a)(i)(Y) Debit
	 	 	 	 	 	 	 	 	 	 	 	 	 	$	*	 	 	 	 	 	 	 	 	 	 	 	=	 	 	$	*	 
	 
	Total (Credit)/Debit
	 	 	 	 	 	 	 	 	 	 	 	 	 	$	*	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	*	 

 

 

 

SCHEDULE 9.4(d)-1

ANNUAL DEPRECIATION OF UNDEPRECIATED * COSTS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	2009	 	 	2010	 	 	2011	 	 	2012	 	 	2013	 	 	2014	 	 	2015	 	 	2016	 	 	2017	 	 	2018	 
	Total Beginning Book
Value of Undepreciated *
Costs
	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Fermentors and Equipment
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Phase 1 Project
	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 
	Phase 2 Project
	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 
	Fire Upgrades
	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Building
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Phase 1 Project
	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 
	Phase 2 Project
	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Additional ARA Investments
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Prior to 2009
	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Ending Book Value
of Undepreciated * Costs
	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 

DSM’s capital costs for Approved Expansion Plans and Approved Capital Assets shall be depreciated
on a straight-line basis over a * period starting at the time such expansion is placed into
production. The final amount is subject to verification by Martek including, at Martek’s option, an
independent audit of such amount.

 

 

 

SCHEDULE 9.4(d)-2

ANNUAL DEPRECIATION OF UNDEPRECIATED PRE-2004 COSTS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	2009	 	 	2010	 	 	2011	 	 	2012	 	 	2013	 	 	2014	 	 	2015	 
	Total Beginning Book
Value of Undepreciated
Pre-2004 Costs
	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Fermentors and Equipment
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Phase 1 Existing
	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 
	Phase 2 Existing
	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Building
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Phase 1 Existing
	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 
	Phase 2 Existing
	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Shared Assets
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Pilot Plant
	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 
	Utilities
	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Ending Book Value
of Undepreciated
Pre-2004 Costs
	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 

The above listed DSM’s capital costs shall be depreciated as indicated above. The final amount is
subject to verification by Martek including, at Martek’s option, an independent audit of such
amount. The shared asset values reflect 50% of the actual book value allocated to Martek.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00162-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00162-of-00352.parquet"}]]