Document:

Unassociated Document

    Exhibit
      10.4

    Agreement
      and Plan of Acquisition, dated as of June 13, 2006 by and between Advanced
      Biomass Gasification Technologies, Inc., UTEK Corporation and Xethanol
      Corporation.

    

    
      
        

      
ACQUISITION
      OFADVANCED
      BIOMASS GASIFICATION TECHNOLOGIES, INC. 

    by
      

    XETHANOL
      CORPORATION 
      
        

      

    

     

    AGREEMENT
      AND PLAN OF ACQUISITION

    

    This
      Agreement and Plan of Acquisition
      (Agreement) is entered into by and between Advanced Biomass Gasification
      Technologies, Inc., a Florida corporation (ABGT),
      UTEK
      CORPORATION, a Delaware corporation (UTEK),
      and
      Xethanol Corporation, a Delaware corporation (XTHN).

    

    WHEREAS,
      UTEK
      owns 100% of the issued and outstanding shares of common stock of ABGT (ABGT
      Shares);

    

    WHEREAS,
      before
      the Closing Date, ABGT will acquire the license for the fields of use as
      described in the License Agreement and the proposed Cooperative Research
      Agreement as
      described which is attached hereto as part of Exhibit
      A
      and made
      a part of this Agreement (License Agreement) and proposed Cooperative Research
      Agreement
      (Cooperative
      Research Agreement) the
      rights to develop and market a patented and proprietary technology for the
      fields of uses specified in the License Agreement (Technology);

    

    WHEREAS,
      the
      parties desire to provide for the terms and conditions upon which ABGT will
      be
      acquired by XTHN in a stock-for-stock exchange (Acquisition) in accordance
      with
      the respective corporation laws of their state, upon consummation of which
      all
      ABGT Shares will be owned by XTHN, and all issued and outstanding ABGT Shares
      will be exchanged for common stock of XTHN with terms and conditions as set
      forth more fully in this Agreement; and

    

    WHEREAS,
      for
      federal income tax purposes, it is intended that the Acquisition qualifies
      within the meaning of Section 368 (a)(1)(B) of the Internal Revenue Code of
      1986, as amended (Code).

    

    NOW,
      THEREFORE,
      in
      consideration of the premises and for other good and valuable consideration,
      the
      receipt, adequacy and sufficiency of which are by this Agreement acknowledged,
      the parties agree as follows:

    

    ARTICLE
      1

    THE
      STOCK-FOR-STOCK ACQUISITION

    

    1.01 The
      Acquisition

    

    (a) Acquisition
      Agreement.
      Subject
      to the terms and conditions of this Agreement, at the Effective Date, as defined
      below, all ABGT Shares shall be acquired from UTEK
      by
      XTHN in
      accordance with the respective corporation laws of their states and the
      provisions of this Agreement and the separate corporate existence of ABGT,
      as a
      wholly-owned subsidiary of XTHN, shall continue after the closing.

    

    (b) Effective
      Date.
      The
      Acquisition shall become effective (Effective Date) upon the execution of this
      Agreement and closing of the transaction. 

    

    

    1.02 Exchange
      of Stock.
      At the
      Effective Date, by virtue of the Acquisition, all of the ABGT Shares that are
      issued and outstanding at the Effective Date shall be exchanged for 136,838
      unregistered
      shares of common stock of XTHN (XTHN Shares) as follows:

     

    
      
        
        

      

      
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              Shareholder

            	
              Number
                of XTHN Shares

            
	
              UTEK
                Corporation 

            	
              136,838

            
	 	 

    

    1.03 Effect
      of Acquisition.

    

    (a) Rights
      in ABGT Cease.
      At and
      after the Effective Date, the holder of each certificate of common stock of
      ABGT
      shall cease to have any rights as a shareholder of ABGT. 

    

    (b) Closure
      of ABGT Shares Records.
      From and
      after the Effective Date, the stock transfer books of ABGT shall be closed,
      and
      there shall be no further registration of stock transfers on the records of
      ABGT.

    

    1.04 Closing.
      Subject
      to the terms and conditions of this Agreement, the Closing of the Acquisition
      shall be the date of the last executed signature affixed to this Agreement,
      but
      in no event later than June 13, 2006. 

    

    ARTICLE
      2

    REPRESENTATIONS
      AND WARRANTIES

    

    2.01 Representations
      and Warranties of UTEK and ABGT.
      UTEK and
      ABGT jointly and severally represent and warrant to XTHN that the facts set
      forth below are true and correct:

    

    (a) Organization.
      ABGT and
      UTEK are corporations duly organized, validly existing and in good standing
      under the laws of their respective states of incorporation, and they have the
      requisite power and authority to conduct their business and consummate the
      transactions contemplated by this Agreement. True, correct and complete copies
      of the articles of incorporation, bylaws and all corporate minutes of ABGT
      have
      been provided to XTHN and such documents are presently in effect and have not
      been amended or modified.

     

    (b) Authorization.
      The
      execution of this Agreement and the consummation of the Acquisition and the
      other transactions contemplated by this Agreement have been duly authorized
      by
      the board of directors and shareholder of ABGT and the board of directors of
      UTEK; no other corporate action by the respective parties is necessary in order
      to execute, deliver, consummate and perform their respective obligations
      hereunder; and ABGT and UTEK have all requisite corporate and other authority
      to
      execute and deliver this Agreement and consummate the transactions contemplated
      by this Agreement.

     

    (c)
       Capitalization.
      The
      authorized capital of ABGT consists of 1,000,000 shares of common stock with
      a
      par value $.01 per share. At the date of this Agreement, 1,000 ABGT Shares
      are
      issued and outstanding as follows:

     

    
      	
              Shareholder

            	
              Number
                of ABGT Shares

            
	
              UTEK
                Corporation

            	
              1000

            

    

     

    All
      issued and outstanding ABGT Shares have been duly and validly issued and are
      fully paid and non-assessable shares and have not been issued in violation
      of
      any preemptive or other rights of any other person or any applicable laws.
      ABGT
      is not authorized to issue any preferred stock. All dividends on ABGT Shares
      which have been declared prior to the date of this Agreement have been paid
      in
      full. There are no outstanding options, warrants, commitments, calls or other
      rights or Agreements requiring ABGT to issue any ABGT Shares or securities
      convertible, exercisable or exchangeable into ABGT Shares to anyone for any
      reason whatsoever. None of the ABGT Shares is subject to any charge, claim,
      condition, interest, lien, pledge, option, security interest or other
      encumbrance or restriction, including any restriction on use, voting, transfer,
      receipt of income or exercise of any other attribute of ownership.

     

    
      
        
        

      

      
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    (d) Binding
      Effect.
      The
      execution, delivery, performance and consummation of this Agreement, the
      Acquisition and the transactions contemplated by this Agreement will not violate
      any obligation to which ABGT or UTEK is a party and will not create a default
      under any such obligation or under any Agreement to which ABGT or UTEK is a
      party. This Agreement constitutes a legal, valid and binding obligation of
      ABGT,
      enforceable in accordance with its terms, except as the enforcement may be
      limited by bankruptcy, insolvency, moratorium, or similar laws affecting
      creditor’s rights generally and by the availability of injunctive relief,
      specific performance or other equitable remedies.

    

    (e) Litigation
      Relating to this Agreement.
      There
      are no suits, actions or proceedings pending or, to the best of ABGT’s and
      UTEK’s knowledge, information and belief, threatened, which seek to enjoin the
      Acquisition or the transactions contemplated by this Agreement or which, if
      adversely decided, would have a materially adverse effect on the business,
      results of operations, assets or prospects of ABGT.

    

    (f) No
      Conflicting Agreements.
      Neither
      the execution and delivery of this Agreement nor the fulfillment of or
      compliance by ABGT or UTEK with the terms or provisions of this Agreement nor
      all other documents or agreements contemplated by this Agreement and the
      consummation of the transaction contemplated by this Agreement will result
      in a
      breach of the terms, conditions or provisions of, or constitute a default under,
      or result in a violation of, ABGT’s or UTEK’s articles of incorporation or
      bylaws, the Technology, the License Agreement, or any agreement, contract,
      instrument, order, judgment or decree to which ABGT or UTEK is a party or by
      which ABGT or UTEK or any of their respective assets is bound, or violate any
      provision of any applicable law, rule or regulation or any order, decree, writ
      or injunction of any court or government entity which materially affects their
      respective assets or businesses. 

    

    (g) Consents.
      No
      consent from or approval of any court, governmental entity or any other person
      is necessary in connection with execution and delivery of this Agreement by
      ABGT
      and UTEK or performance of the obligations of ABGT and UTEK hereunder or under
      any other agreement to which ABGT or UTEK is a party; and the consummation
      of
      the transactions contemplated by this Agreement will not require the approval
      of
      any entity or person in order to prevent the termination of the Technology,
      the
      License Agreement, or any other material right, privilege, license or agreement
      relating to ABGT or its assets or business.

    

    (h) Title
      to Assets.
      ABGT has
      or has agreed to enter into the agreements as listed on Exhibit
      A
      attached
      hereto. These agreements and the assets shown on the balance sheet of attached
      Exhibit
      B
      are the
      sole assets of ABGT. Except as set forth on Schedule 2.01(h), ABGT has good
      and
      marketable title to its assets, free and clear of all liens, claims, charges,
      mortgages, options, security agreements and other encumbrances of every kind
      or
      nature whatsoever. On the Closing Date, ABGT will have good and marketable
      title
      to its assets, free and clear of all liens, claims, charges, mortgages, options,
      security agreements and other encumbrances of every kind and nature
      whatsoever.

     

    
      
        
        

      

      
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    (i)  Intellectual
      Property

    

    (1) The
      Energy & Environmental Research Center (EERC) a nonprofit branch of the
      University of North Dakota (UND) invented and owns the Technology and has all
      right, power, authority and ownership and entitlement to file, prosecute and
      maintain in effect the Patent application with respect to the Inventions listed
      in Exhibit
      A
      hereto.

    

    (2) The
      License Agreement and the Cooperative Research Agreement between EERC and ABGT
      covering the Inventions are legal, valid, binding and will be enforceable in
      accordance with their respective terms as contained in Exhibit
      A.

     

    (3)
      Except as otherwise set forth in this Agreement, XTHN acknowledges and
      understands that ABGT and UTEK make no representations and provide no assurances
      that the rights to the Technology and Intellectual Property contained in the
      License Agreement do not, and will not in the future, infringe or otherwise
      violate the rights of third parties; however, ABGT and UTEK have no knowledge
      of
      pending or threatened claims by, or any basis for any claims by, any third
      parties alleging such infringement or other violation, and

    

    (4)
       Except
      as
      otherwise expressly set forth in this Agreement, ABGT and UTEK make no
      representations and extend no warranties of any kind, either express or implied,
      including, but not limited to warranties of merchantability, fitness for a
      particular purpose, non-infringement and validity of the Intellectual Property.
      

    

    (j)
       Liabilities
      of ABGT.
      ABGT has
      no assets (except as set forth in Section 2.01 (h)), no liabilities or
      obligations of any kind, character or description except those listed on the
      attached schedules and exhibits.   

     

    (k) Financial
      Statements.
      The
      unaudited financial statements of ABGT, including a balance sheet, attached
      as
Exhibit
      B
      and made
      a part of this Agreement, are, in all respects, complete and correct and present
      fairly ABGT’s financial position and the results of its operations on the dates
      and for the periods shown in this Agreement; provided,
      however,
      that
      interim financial statements are subject to customary year-end adjustments
      and
      accruals that, in the aggregate, will not have a material adverse effect on
      the
      overall financial condition or results of its operations. ABGT has not engaged
      in any business not reflected in its financial statements. There have been
      no
      material adverse changes in the nature of its business, prospects, the value
      of
      assets or the financial condition since the date of its financial statements.
      There are no, and on the Closing Date there will be no, outstanding obligations
      or liabilities of ABGT except as specifically set forth in the financial
      statements and the other attached schedules and exhibits. There is no
      information known to ABGT or UTEK that would prevent the financial statements
      of
      ABGT from being audited in accordance with generally accepted accounting
      principles.

    

       (l)  Taxes.
      All
      returns, reports, statements and other similar filings required to be filed
      by
      ABGT with respect to any federal, state, local or foreign taxes, assessments,
      interests, penalties, deficiencies, fees and other governmental charges or
      impositions have been timely filed with the appropriate governmental agencies
      in
      all jurisdictions in which such tax returns and other related filings are
      required to be filed; all such tax returns properly reflect all liabilities
      of
      ABGT for taxes for the periods, property or events covered by this Agreement;
      and all taxes, whether or not reflected on those tax returns, and all taxes
      claimed to be due from ABGT by any taxing authority, have been properly paid,
      except to the extent reflected on ABGT’s financial statements, where ABGT has
      contested in good faith by appropriate proceedings and reserves have been
      established on its financial statements to the full extent if the contest is
      adversely decided against it. ABGT has not received any notice of assessment
      or
      proposed assessment in connection with any tax returns, nor is ABGT a party
      to
      or to the best of its knowledge, expected to become a party to any pending
      or
      threatened action or proceeding, assessment or collection of taxes. ABGT has
      not
      extended or waived the application of any statute of limitations of any
      jurisdiction regarding the assessment or collection of any taxes. There are
      no
      tax liens (other than any lien which arises by operation of law for current
      taxes not yet due and payable) on any of its assets. There is no basis for
      any
      additional assessment of taxes, interest or penalties. ABGT has made all
      deposits required by law to be made with respect to employees’ withholding and
      other employment taxes, including without limitation the portion of such
      deposits relating to taxes imposed upon ABGT. ABGT is not and has never been
      a
      party to any tax-sharing agreements with any other person or entity.

     

    
      
        
        

      

      
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    (m) Absence
      of Certain Changes or Events.
      From the
      date of the full execution of the Term Sheet until the Closing Date, ABGT has
      not, and without the written consent of XTHN, it will not have: 

    

    (1) Sold,
      encumbered, assigned let lapsed or transferred any of its material assets,
      including without limitation the Intellectual Property, the License Agreement
      or
      any other material asset; 

    

    (2) Amended
      or terminated the License Agreement or other material agreement or done any
      act
      or omitted to do any act which would cause the breach of the License Agreement
      or any other material agreement; 

    

    (3) Suffered
      any damage, destruction or loss whether or not in control of ABGT; 

    

    (4) Made
      any
      commitments or agreements for capital expenditures or otherwise;

    

    (5) Entered
      into any transaction or made any commitment not disclosed to XTHN; 

    

    (6) Incurred
      any material obligation or liability for borrowed money; 

    

    (7) Done
      or
      omitted to do any act, or suffered any other event of any character, which
      is
      reasonable to expect, would adversely affect the future condition (financial
      or
      otherwise), assets or liabilities or business of ABGT; or 

     

    (8) Taken
      any
      action, which could reasonably be foreseen to make any of the representations
      or
      warranties made by ABGT or UTEK untrue as of the date of this Agreement or
      as of
      the Closing Date.

    

    (n) Material
      Agreements. Exhibit
      A
      attached
      contains a true and complete list of all contemplated and executed agreements
      between ABGT and a third party. A complete and accurate copies of all material
      agreements, contracts and commitments of the following types, whether written
      or
      oral, to which it is a party or is bound (Contracts), has been provided to
      XTHN.
      Such executed Contracts are, and such contemplated Contracts will be, at the
      Closing Date, in full force and effect without modifications or amendment and
      constitute the legally valid and binding obligations of ABGT in accordance
      with
      their respective terms and will continue to be valid and enforceable following
      the Acquisition. ABGT is not, and will not be at the Closing Date, in default
      of
      any of the Contracts. In addition: 

    

    (1) There
      are
      no outstanding unpaid promissory notes, mortgages, indentures, deed of trust,
      security agreements and other agreements and instruments relating to the
      borrowing of money by or any extension of credit to ABGT; and 

    

    (2) There
      are
      no outstanding operating agreements, lease agreements or similar agreements
      by
      which ABGT is bound; and 

    

    (3) The
      complete final draft of the License Agreement has been provided to XTHN; and
      

    

    (4) Except
      as
      set forth in (3) above, there are no outstanding licenses to or from others
      of
      any Intellectual Property and trade names; and

    

    (5) There
      are
      no outstanding agreements or commitments to sell, lease or otherwise dispose
      of
      any of ABGT’s property; and

    

    (6) There
      are
      no breaches of any agreement to which ABGT is a party. 

    

    (o) Compliance
      with Laws.
      ABGT is
      in compliance with all applicable laws, rules, regulations and orders
      promulgated by any federal, state or local government body or agency relating
      to
      its business and operations. 

     

    
      
        
        

      

      
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    (p) Litigation.
      There is
      no suit, action or any arbitration, administrative, legal or other proceeding
      of
      any kind or character, or any governmental investigation pending or to the
      best
      knowledge of ABGT or UTEK, threatened against ABGT, the Technology, or License
      Agreement, affecting its assets or business (financial or otherwise), and
      neither ABGT nor UTEK is in violation of or in default with respect to any
      judgment, order, decree or other finding of any court or government authority
      relating to the assets, business or properties of ABGT or the transactions
      contemplated hereby. There are no pending or threatened actions or proceedings
      before any court, arbitrator or administrative agency, which would, if adversely
      determined, individually or in the aggregate, materially and adversely affect
      the assets or business of ABGT or the transactions contemplated
      hereby.

    

    (q) Employees.
      ABGT has
      no and never had any employees. ABGT is not a party to or bound by any
      employment agreement or any collective bargaining agreement with respect to
      any
      employees. ABGT is not in violation of any law, rule or regulation relating
      to
      employment of employees.

    

    (r) Neither
      ABGT nor UTEK has any knowledge of any existing or threatened occurrence, action
      or development that could cause a material adverse effect on ABGT or its
      business, assets or condition (financial or otherwise) or
      prospects.

    

    (s) Employee
      Benefit Plans.
      There
      are no and have never been any employee benefit plans, and there are no
      commitments to create any, including without limitation as such term is defined
      in the Employee Retirement Income Security Act of 1974, as amended, in effect,
      and there are no outstanding or un-funded liabilities nor will the execution
      of
      this Agreement and the actions contemplated in this Agreement result in any
      obligation or liability to any present or former employee.

    

    (t) Books
      and Records.
      The
      books and records of ABGT are complete and accurate in all material respects,
      fairly present its business and operations, have been maintained in accordance
      with good business practices, and applicable legal requirements, and accurately
      reflect in all material respects its business, financial condition and
      liabilities.

     

    (u) No
      Broker’s Fees.
      Neither
      UTEK nor ABGT has incurred any investment banking, advisory or other similar
      fees or obligations in connection with this Agreement or the transactions
      contemplated by this Agreement. 

    

    (v)
       Full
      Disclosure.
      All
      representations or warranties of UTEK and ABGT are true, correct and complete
      in
      all material respects to the best of UTEK’s and ABGT’s knowledge on the date of
      this Agreement and shall be true, correct and complete in all material respects
      as of the Closing Date as if they were made on such date. No statement made
      by
      them in this Agreement or in the exhibits and schedules to this Agreement or
      any
      document delivered by them or on their behalf pursuant to this Agreement
      contains an untrue statement of material fact or omits to state all material
      facts necessary to make the statements in this Agreement not misleading in
      any
      material respect in light of the circumstances in which they were made.

    

    2.02 Representations
      and Warranties of XTHN.
      XTHN
      represents and warrants to UTEK and ABGT that the facts set forth below are
      true
      and correct. 

    

    (a) Organization.
      XTHN is
      a corporation duly organized, validly existing and in good standing under the
      laws of Delaware, is qualified to do business as a foreign corporation in other
      jurisdictions in which the conduct of its business or the ownership of its
      properties require such qualification, and have all requisite power and
      authority to conduct its business and operate its properties. 

    

    (b) Authorization.
      The
      execution of this Agreement and the consummation of the Acquisition and the
      other transactions contemplated by this Agreement have been duly authorized
      by
      the board of directors of XTHN; no other corporate action on XTHN’s part is
      necessary in order to execute, deliver, consummate and perform its obligations
      hereunder; and it has all requisite corporate and other authority to execute
      and
      deliver this Agreement and consummate the transactions contemplated by this
      Agreement. 

     

    
      
        
        

      

      
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    (c)  Capitalization.
      The
      authorized capital of XTHN consists of 50,000,000 (Seventy Five Million)
      shares of common stock with a par value $0.001 per share (XTHN Common Shares)
      and on the Effective Date of the Acquisition, 23,071,609 (Twenty
      Three Million, Seventy One Thousand, Six Hundred Nine) shares of XTHN Common
      Shares (which will include the 136,838(One Hundred Thirty Six Thousand, Eight
      Hundred Thirty Eight) XTHN Shares issued at the closing of the Acquisition)
      will
      be issued and outstanding. All issued and outstanding XTHN Common Shares have
      been duly and validly issued and are fully paid and non-assessable shares and
      have not been issued in violation of any preemptive or other rights of any
      other
      person or any applicable laws. 

    (d) Binding
      Effect.
      The
      execution, delivery, performance and consummation of the Acquisition and the
      transactions contemplated by this Agreement will not violate any obligation
      to
      which XTHN is a party and will not create a default hereunder, and this
      Agreement constitutes a legal, valid and binding obligation of XTHN, enforceable
      in accordance with its terms, except as the enforcement may be limited by
      bankruptcy, insolvency, moratorium, or similar laws affecting creditor’s rights
      generally and by the availability of injunctive relief, specific performance
      or
      other equitable remedies. 

    

    (e) Litigation
      Relating to this Agreement.
      There
      are no suits, actions or proceedings pending or to its knowledge threatened
      which seek to enjoin the Acquisition or the transactions contemplated by this
      Agreement or which, if adversely decided, would have a materially adverse effect
      on its business, results of operations, assets, prospects or the results of
      its
      operations of XTHN. 

    

    (f) No
      Conflicting Agreements.
      Neither
      the execution and delivery of this Agreement nor the fulfillment of or
      compliance by XTHN with the terms or provisions of this Agreement will result
      in
      a breach of the terms, conditions or provisions of, or constitute default under,
      or result in a violation of, the corporate charter or bylaws, or any agreement,
      contract, instrument, order, judgment or decree to which it is a party or by
      which it or any of its assets are bound, or violate any provision of any
      applicable law, rule or regulation or any order, decree, writ or injunction
      of
      any court or governmental entity which materially affects its assets or
      business. 

    

    (g) Consents.
      Assuming
      the correctness of UTEK’s and ABGT’s representations, no consent from or
      approval of any court, governmental entity or any other person is necessary
      in
      connection with its execution and delivery of this Agreement; and the
      consummation of the transactions contemplated by this Agreement will not require
      the approval of any entity or person in order to prevent the termination of
      any
      material right, privilege, license or agreement relating to XTHN or its assets
      or business. 

    

    (h) Financial
      Statements.
      The
      unaudited financial statements of XTHN attached as Exhibit
      C
      present
      fairly its financial position and the results of its operations on the dates
      and
      for the periods shown on such statements; provided,
      however,
      that
      interim financial statements are subject to customary year-end adjustments
      and
      accruals that, in the aggregate, will not have a material adverse effect on
      the
      overall financial condition or results of its operations. XTHN has not engaged
      in any business not reflected in its financial statements. There have been
      no
      material adverse changes in the nature of its business, prospects, the value
      of
      assets or the financial condition since the date of its financial statements.
      There are no outstanding obligations or liabilities of XTHN except as
      specifically set forth in the XTHN financial statements. 

    

    (i) Full
      Disclosure.
      All
      representations or warranties of XTHN are true, correct and complete in all
      material respects on the date of this Agreement and shall be true, correct
      and
      complete in all material respects as of the Closing Date as if they were made
      on
      such date. No statement made by it in this Agreement or in the exhibits to
      this
      Agreement or any document delivered by it or on its behalf pursuant to this
      Agreement contains an untrue statement of material fact or omits to state all
      material facts necessary to make the statements in this Agreement not misleading
      in any material respect in light of the circumstances in which they were
      made.

    

    (j) Compliance
      with Laws.
      XTHN is
      in compliance with all applicable laws, rules, regulations and orders
      promulgated by any federal, state or local government body or agency relating
      to
      its business and operations. 

     

    
      
        
        

      

      
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    (k) Litigation.
      There is
      no suit, action or any arbitration, administrative, legal or other proceeding
      of
      any kind or character, or any governmental investigation pending or, to the
      best
      knowledge of XTHN, threatened against XTHN materially affecting its assets
      or
      business (financial or otherwise), and XTHN is not in violation of or in default
      with respect to any judgment, order, decree or other finding of any court or
      government authority. There are no pending or, to the knowledge of XTHN,
      threatened actions or proceedings before any court, arbitrator or administrative
      agency, which would, if adversely determined, individually or in the aggregate,
      materially and adversely affect its assets or business. XTHN has no knowledge
      of
      any existing or threatened occurrence, action or development that could cause
      a
      material adverse affect on XTHN or its business, assets or condition (financial
      or otherwise) or prospects.

    

    (l) Development.
      XTHN
      agrees and warrants that it has the expertise necessary to and has had the
      opportunity to independently evaluate the inventions of the Licensed Patents
      and
      develop same for the market. 

    

    2.03 Investment
      Representations of UTEK.
      UTEK
      represents and warrants to XTHN that:

    

    (a) General.
      It has
      such knowledge and experience in financial and business matters as to be capable
      of evaluating the risks and merits of an investment in XTHN Shares pursuant
      to
      the Acquisition. It is able to bear the economic risk of the investment in
      XTHN
      Shares, including the risk of a total loss of the investment in XTHN Shares.
      The
      acquisition of XTHN Shares is for its own account and is for investment and
      not
      with a view to any distribution of such shares. Except a permitted by law,
      it
      has no present intention of selling, transferring or otherwise disposing in
      any
      way of all or any portion of the shares at the present time. All information
      that it has supplied to XTHN is true and correct. It has conducted all
      investigations and due diligence concerning XTHN to evaluate the risks inherent
      in accepting and holding the shares which it deems appropriate, and it has
      found
      all such information obtained fully acceptable. It has had an opportunity to
      ask
      questions of the officers and directors of XTHN concerning XTHN Shares and
      the
      business and financial condition of and prospects for XTHN, and the officers
      and
      directors of XTHN have adequately answered all questions asked and made all
      relevant information available to them. UTEK is an “accredited investor,” as the
      term is defined in Regulation D, promulgated under the Securities Act of 1933,
      amended, and the rules and regulations thereunder.

    

    (b) Stock
      Transfer Restrictions.
      UTEK
      acknowledges that the XTHN Shares will not be registered and UTEK will not
      be
      permitted to sell or otherwise transfer the XTHN Shares in any transaction
      in
      contravention of the following legend, which will be imprinted in substantially
      the following form on the stock certificate representing XTHN
      Shares:

    

    THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED (THE ACT), OR UNDER THE SECURITIES LAWS
      OF
      ANY STATE. THESE SECURITIES MAY NOT BE SOLD, OFFERED FOR SALE, ASSIGNED,
      TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED PURSUANT TO THE PROVISION
      OF THE ACT AND THE LAWS OF SUCH STATES UNDER WHOSE LAWS A TRANSFER OF SECURITIES
      WOULD BE SUBJECT TO A REGISTRATION REQUIREMENT, UNLESS UTEK CORPORATION HAS
      OBTAINED AN OPINION OF COUNSEL STATING THAT SUCH DISPOSITION IS IN COMPLIANCE
      WITH AN AVAILABLE EXEMPTION FROM SUCH REGISTRATION.

    

    However,
      should XTHN file for additional registration of its shares, between the
      execution of this Agreement and 180 days thereafter, UTEK will have “piggyback”
registration rights for the 136,838 shares it will receive in this transaction.
      Should XTHN not file for additional registration rights within 180 days of
      the
      Effective date, then XTHN will provide full registration rights to the above
      shares at no additional cost to UTEK.

    

    (c) 
      Legend.  Subject
      to Rule 144 restrictions, 12 months following the stock acquisition described
      herein, XTHN agrees to and shall direct its transfer agent to remove the
      above legend upon the issuance by UTEK's legal counsel that the above legend
      can
      be removed from UTEK's shares.  XTHN agrees to and promptly shall provide
      any information requested by UTEK or UTEK's counsel and to make further
      direction to its transfer agent as necessary for such issuance of an opinion
      regarding removal of the legend or the sale of such restricted shares under
      Rule 144 or other available exemption from registration. A letter affecting
      the
      issuance of the certificate without the restrictive legend one year from the
      date of closing is attached as Exhibit D.

     

    
      
        
        

      

      
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          8 of
          17

        
          

        

      

      
        
        

      

    

    

     

    ARTICLE
      3

    TRANSACTIONS
      PRIOR TO CLOSING

    3.01. Corporate
      Approvals.
      Prior to
      Closing Date, each of the parties shall submit this Agreement to its board
      of
      directors and, if necessary, its respective shareholders and obtain approval
      of
      this Agreement. Copies of corporate actions taken shall be provided to each
      party. 

    

    3.02 Access
      to Information.
      Each
      party agrees to permit, upon reasonable notice, the attorneys, accountants,
      and
      other representatives of the other parties reasonable access during normal
      business hours to its properties and its books and records to make reasonable
      investigations with respect to its affairs, and to make its officers and
      employees available to answer questions and provide additional information
      as
      reasonably requested.

    

    3.03 Expenses.
      Each
      party agrees to bear its own expenses in connection with the negotiation and
      consummation of the Acquisition and the transactions contemplated by this
      Agreement.

    

    3.04 Covenants.
      Except
      with the prior written approval of XTHN or of ABGT or UTEK, as the case may
      be,
      each party agrees that it will: 

    

    (a) Use
      its
      good faith efforts to obtain all requisite licenses, permits, consents,
      approvals and authorizations necessary in order to consummate the Acquisition;
      and

    

    (b) Notify
      the other parties upon the occurrence of any event which would have a materially
      adverse effect upon the Acquisition or the transactions contemplated by this
      Agreement or upon the business, assets or results of operations;
      and

    

    (c) Not
      modify its corporate structure, except, upon prior written notice to the other
      parties, as necessary or advisable in order to consummate the Acquisition and
      the transactions contemplated by this Agreement.

    

    ARTICLE
      4 ARTICLE
      4 

    CONDITIONS
      PRECEDENT

    

    The
      obligation of the parties to consummate the Acquisition and the transactions
      contemplated by this Agreement
      are subject to the following conditions that may be waived, to the extent
      permitted by law:

    

    4.01. Each
      party must obtain the approval of its board of directors and such approval
      shall
      not have been rescinded or restricted.

    

    4.02. Each
      party shall obtain all requisite licenses, permits, consents, authorizations
      and
      approvals required to complete the Acquisition and the transactions contemplated
      by this Agreement.

    

    4.03. There
      shall be no claim or litigation instituted or threatened in writing by any
      person or government authority seeking to restrain or prohibit any of the
      contemplated transactions contemplated by this Agreement or challenge the right,
      title and interest of UTEK in the ABGT Shares, ABGT in the License Agreement,
      or
      the right of ABGT or UTEK to consummate the Acquisition contemplated
      hereunder.

    

    4.04. The
      representations and warranties of the parties shall be true and correct in
      all
      material respects at the Effective Date.

     

    
      
        
        

      

      
        Page
          9 of
          17

        
          

        

      

      
        
        

      

    

    

    4.05. The
      Technology and Intellectual Property shall have been prosecuted in good faith
      with reasonable diligence.

    4.06. The
      License Agreement shall have been executed and delivered by all parties thereto
      and, to the best knowledge of UTEK and ABGT, the License Agreement shall be
      valid and in full force and effect without any default under such agreement.
      

    

    4.07. XTHN
      shall have received, at or within 5 days before the Closing Date, each of the
      following:

    

    (a) the
      stock
      certificates representing the ABGT
      Shares, duly endorsed (or accompanied by duly executed stock powers) by UTEK
      for
      cancellation;

    

    (b) all
      documentation relating to ABGT’s business, all in form and substance
      satisfactory to XTHN;

    

    (c) such
      agreements, files and other data and documents pertaining to ABGT’s business as
      XTHN may reasonably request;

    

    (d) copies
      of
      the general ledgers and books of account of ABGT, and all federal, state and
      local income, franchise, property and other tax returns filed by ABGT since
      the
      inception of ABGT;

    

    (e) certificates
      of (i) the Secretary of State of the State of Florida as to the legal existence
      and good standing, as applicable (including tax), of ABGT in Florida;

    

    (f) the
      original corporate minute books of ABGT, including the articles of incorporation
      and bylaws of ABGT, and all other documents filed in this
      Agreement;

    

    (g) all
      consents, assignments or related documents of conveyance to give XTHN the
      benefit of the transactions contemplated hereunder;

    

    (h) such
      documents as may be needed to accomplish the Closing under the corporate laws
      of
      the states of incorporation of XTHN and ABGT, and

    

    (i) such
      other documents, instruments or certificates as XTHN, or its counsel may
      reasonably request.

    

    4.08. XTHN
      shall have completed its due diligence investigation of ABGT to XTHN’s
      satisfaction in its sole discretion.

    

    4.09. XTHN
      shall receive the resignations of each director and officer of ABGT effective
      the Closing Date.

    

    ARTICLE
      5

    INDEMNIFICATION
      AND LIABILITY
      LIMITATION

    

    5.01.  Survival
      of Representations and Warranties.

    

    (a) 
      The
      representations and warranties made by UTEK and ABGT shall survive for a period
      of 1 year after the Closing Date, and thereafter all such representation and
      warranties shall be extinguished, except with respect to claims then pending
      for
      which specific notice has been given during such 1-year period.

    (b) 
      The
      representations and warranties made by XTHN shall survive for a period of 1
      year
      after the Closing Date, and thereafter all such representations and warranties
      shall be extinguished, except with respect to claims then pending for which
      specific notice has been given during such 1-year period. 

     

    
      
        
        

      

      
        Page
          10
          of 17

        
          

        

      

      
        
        

      

    

    

    5.02
        Limitations
      on Liability.
      XTHN
      agrees that UTEK shall not be liable under this agreement to XTHN or their
      respective successor’s, assigns or affiliates except where damages result
      directly from the gross negligence or willful misconduct of UTEK or its
      employees. In no event shall UTEK's liability exceed the total amount of the
      fees paid to UTEK under this agreement, nor shall UTEK be liable for incidental
      or consequential damages of any kind. XTHN shall indemnify UTEK, and hold UTEK
      harmless against any and all claims by third parties for losses, damages or
      liabilities, including reasonable attorneys fees and expenses (“Losses”),
      arising in any manner out of or in connection with the rendering of services
      by
      UTEK under this Agreement, unless it is finally judicially determined that
      such
      Losses resulted from the gross negligence or willful misconduct of UTEK. The
      terms of this paragraph shall survive the termination of this agreement and
      shall apply to any controlling person, director, officer, employee or affiliate
      of UTEK. 

    

    5.03
      Indemnification.
      XTHN
      agrees to indemnify and hold harmless UTEK and its subsidiaries and affiliates
      and each of its and their officers, directors, principals, shareholders, agents,
      independent contactors and employees (collectively “Indemnified Persons”) from
      and against any and all claims, liabilities, damages, obligations, costs and
      expenses (including reasonable attorneys’ fees and expenses and costs of
      investigation) arising out of or relating to matters or arising from this
      Agreement, except to the extent that any such claim, liability, obligation,
      damage, cost or expense shall have been determined by final non-appealable
      order
      of a court of competent jurisdiction to have resulted from the gross negligence
      or willful misconduct of the Indemnified Person or Persons in respect of whom
      such liability is asserted.

    

    ARTICLE
      6

    REMEDIES

    

    6.01 Specific
      Performance.
      Each
      party’s obligations under this Agreement are unique. If any party should default
      in its obligations under this Agreement, the parties each acknowledge that
      it
      would be extremely impracticable to measure the resulting damages. Accordingly,
      the non-defaulting party, in addition to any other available rights or remedies,
      may sue in equity for specific performance, and the parties each expressly
      waive
      the defense that a remedy in damages will be adequate. 

    

    6.02 Costs.
      If any
      legal action or any arbitration or other proceeding is brought for the
      enforcement of this Agreement or because of an alleged dispute, breach, default,
      or misrepresentation in connection with any of the provisions of this Agreement,
      the successful or prevailing party or parties shall be entitled to recover
      reasonable attorneys’ fees and other costs incurred in that action or
      proceeding, in addition to any other relief to which it or they may be
      entitled.

    

    ARTICLE
      7

    ARBITRATION

    

    In
      the
      event a dispute arises with respect to the interpretation or effect of this
      Agreement or concerning the rights or obligations of the parties to this
      Agreement, the parties agree to negotiate in good faith with reasonable
      diligence in an effort to resolve the dispute in a mutually acceptable manner.
      Failing to reach a resolution of this Agreement, either party shall have the
      right to submit the dispute to be settled by arbitration under the Commercial
      Rules of Arbitration of the American Arbitration Association. The parties agree
      that, unless the parties mutually agree to the contrary such arbitration shall
      be conducted in New York, New York. The cost of arbitration shall be borne
      by
      the party against whom the award is rendered or, if in the interest of fairness,
      as allocated in accordance with the judgment of the arbitrators. All awards
      in
      arbitration made in good faith and not infected with fraud or other misconduct
      shall be final and binding. The arbitrators shall be selected as follows: one
      by
      XTHN, one by UTEK and a third by the two selected arbitrators. The third
      arbitrator shall be the chairman of the panel. 

     

    
      
        
        

      

      
        Page
          11
          of 17

        
          

        

      

      
        
        

      

    

    

    ARTICLE
      8

    MISCELLANEOUS

    

    8.01. No
      party
      may assign this Agreement or any right or obligation of it hereunder without
      the
      prior written consent of the other parties to this Agreement. No permitted
      assignment shall relieve a party of its obligations under this Agreement without
      the separate written consent of the other parties.

    

    8.02. This
      Agreement shall be binding upon and inure to the benefit of the parties and
      their respective permitted successors and assigns. 

    8.03. Each
      party agrees that it will comply with all applicable laws, rules and regulations
      in the execution and performance of its obligations under this Agreement.

    

    8.04. This
      Agreement shall be governed by and construct in accordance with the laws of
      the
      State of Delaware without regard to principles of conflicts of law.

    

    8.05. This
      document constitutes a complete and entire agreement among the parties with
      reference to the subject matters set forth in this Agreement. No statement
      or
      agreement, oral or written, made prior to or at the execution of this Agreement
      and no prior course of dealing or practice by either party shall vary or modify
      the terms set forth in this Agreement without the prior consent of the other
      parties to this Agreement. This Agreement may be amended only by a written
      document signed by the parties. 

    

    8.06. Notices
      or other communications required to be made in connection with this Agreement
      shall be sent by U.S. mail, certified, return receipt requested, personally
      delivered or sent by express delivery service and delivered to the parties
      at
      the addresses set forth below or at such other address as may be changed from
      time to time by giving written notice to the other parties. 

    

    8.07. The
      invalidity or unenforceability of any provision of this Agreement shall not
      affect the validity or enforceability of any other provision of this Agreement.
      

    

    8.08. This
      Agreement may be executed in multiple counterparts, each of which shall
      constitute one and a single Agreement. 

    

    8.09
      Any
      facsimile signature of any part to this Agreement or to any other Agreement
      or
      document executed in connection of this Agreement should constitute a legal,
      valid and binding execution by such parties. 

    

    

    (signatures
      on next page)

     

    
      
        
        

      

      
        Page
          12
          of 17

        
          

        

      

      
        
        

      

    

    

    
      

        
          	
                  XETHANOL
                    CORPORATION

                	
                  ADVANCED
                    BIOMASS GASIFICATION

                
	
                   

                	
                  TECHNOLOGIES,
                    INC.

                
	 	 
	
                  By:/s/
                    Christopher d’Arnaud-Taylor

                	
                  By:/s/
                    Joel Edelson

                
	
                  Christopher
                    d’Arnaud-Taylor,

                	
                  Joel
                    Edelson

                
	
                  Chairman,
                    CEO and President

                	
                  President

                
	 	 
	
                  Address:

                	
                  Address:

                
	
                  1185
                    Avenue of the Americas

                	
                  2109
                    E. Palm Avenue

                
	
                  New
                    York, New York 10036

                	
                  Tampa,
                    Florida 33605

                
	
                  Date:
                    May
                    22, 2006

                	
                  Date:
                    May
                    22, 2006

                

        

      

    UTEK
      CORPORATION

    

    

    By:
      /s/
      Cliff Gross

    Cliff
      Gross

    Chief
      Executive Officer

    

    Address:

    2109
      E.
      Palm Avenue

    Tampa,
      Florida 33605

    

    Date:
      June
      13, 2006

     

    
      
        	
                By
                  ___________________________

                 

                ____________________________

                 

                Compliance
                  Officer Approval

                 

                Date:
                  __________________

              

      

    

    

     

     

    
      
        
        

      

      
        Page
          13
          of 17

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A

     

    Outstanding
      Agreements

     

    
      	1.  	
              License
                Agreement from The
                Energy & Environmental Research Center (EERC) a nonprofit branch of
                the University of North Dakota
                (UND)

            

    

    

    
      	2.  	
              Cooperative
                Research Agreement with the EERC Foundation

            

    

    

    

    
      
        
        

      

      
        Page
          14
          of 17

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      B

    

     

    ADVANCED
      BIOMASS GASIFICATION TECHNOLOGIES,
      Inc.

     

    Financial
      Statements as of

     

    June
      13th
      , 2006

     

     

     

    
      
        
        

      

      
        Page
          15
          of 17

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      C

    

     

    XETHANOL
      CORPORATION

     

    

    FORM
      10-KSB

    

    QUARTERLY
      REPORT PURSUANT TO SEABGTON 13 OR 15(d) OF THE

    SECURITIES
      EXCHANGE ACT OF 1934

    Including
      Audited Financial Statements

    For
      the
      fiscal year ended December 31, 2005

     

     

     

    
      
        
        

      

      
        Page
          16
          of 17

        
          

        

      

      
        
        

      

    

     

    

    EXHIBIT
      D

    

    (company
      letterhead here)

    

    

    

    June
      13th
      ,
      2006

    

    Corporate
      Stock Transfer, Inc.

    3200
      Cherry Creek Drive South

    Suite
      430

    Denver,
      CO 80209

    

    Dear
      Gentlemen:

    

    Re: Transfer
      of (XTHN) XETHANOL CORPORATION Stock to UTEK Corporation

    

    This
      letter does hereby authorize Corporate Stock Transfer, Inc., upon request by
      UTEK Corporation or its authorized agent, to issue to UTEK Corporation a new
      stock certificate representing 136,838(One
      hundred eighty five thousand, seven hundred eighty) shares
      in
      XTHN. These new shares issued shall be issued without a restricted transfer
      legend. 

    

    The
      authorization for this letter shall become effective one year from the date
      of
      this letter.

    

    

    Signed,

    

    

    /s/
      Christopher d’Arnaud-Taylor

    Christopher
      d’Arnaud-Taylor

    Chairman,
      CEO and President

     

    
      
        
        

      

      
        Page
          17
          of 17Unassociated Document

    Exhibit
      10.5

    

    Base
      Research Agreement, dated as of May 24, 2006 between the University of North
      Dakota Energy and Environmental Research Center and Advanced Biomass
      Gasification Technologies, Inc.

    

    BASE
      RESEARCH AGREEMENT

    

    This
      document sets forth the Agreement between the following parties: the University
      of North Dakota Energy & Environmental Research Center, a public institution
      of higher education and an instrumentality of the state of North Dakota
      organized under the constitution of the state, having its principal place of
      business in Grand Forks, North Dakota (hereinafter referred to as CONTRACTOR),
      and Advanced Biomass Gasification Technologies, a wholly owned subsidiary of
      UTEK Corporation, a Florida corporation, having its principal place of business
      at 202 South Wheeler Street, Plant City, Florida 33563 (hereinafter referred
      to
      as SPONSOR). The parties to this Base Research Agreement are sometimes
      hereinafter referred to individually as a “Party” and collectively as the
“Parties.”

    

    WHEREAS,
      CONTRACTOR has transferred ownership to the Energy & Environmental Research
      Center Foundation (EERC Foundation) by assignment of certain Intellectual
      Property relating to EERC IP05-020, IP06-004, and IP06-005, “Biomass
      Gasification System Know-How,” “Method and Apparatus for Supply of Low-Btu Gas
      to an Engine Generator,” and “Wet Solids Removal and Separation System from a
      Gasifier,” all developed by CONTRACTOR , and CONTRACTOR has retained the right
      to research, develop, and demonstrate said Intellectual Property in the field
      of
      lignin and biomass feedstock gasification in imbert gasifiers of up to 10
      megawatt thermal, and this technology is proposed to be licensed from the EERC
      Foundation to SPONSOR. 

    

    WHEREAS,
      SPONSOR intends to contract with CONTRACTOR for initial research, development,
      demonstration, productizing, and project implementation work and desires to
      benefit from the resources that CONTRACTOR has available to SPONSOR upon the
      terms and conditions hereinafter set forth. 

    

    WHEREAS,
      CONTRACTOR is willing to conduct an initial project entitled “Development and
      Demonstration of Microgasification Technology” (the Project), and SPONSOR and
      U.S. Department of Energy (DOE) wish to receive the results of said evaluation.
      The purpose of this Base Research Agreement is to facilitate CONTRACTOR’s timely
      initiation and completion of specific projects authorized by SPONSOR, as well
      as
      other cosponsors, with the project entitled “Development and Demonstration of
      Microgasification Technology” being the first project. 

    

    WHEREAS,
      both the CONTRACTOR and SPONSOR understand and approve the pending acquisition
      of the SPONSOR by a third party within thirty (30) days of the EFFECTIVE DATE
      of
      this Agreement. All rights and obligations will remain the same after the
      acquisition is completed.

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    

    THEREFORE,
      SPONSOR and CONTRACTOR agree as follows.

    

    Article
      1 - Contract Authorization

    

    SPONSOR
      may from time to time during the term of this Base Research Agreement issue
      to
      CONTRACTOR an e-mail authorization from Joel Edelson or designee confirming
      agreement of a scope of work and associated budget which have previously been
      supplied to SPONSOR and at the request of SPONSOR for performing a specific
      scope of work. The terms and conditions of this Base Research Agreement shall
      be
      automatically applicable to all e-mail authorizations. SPONSOR authorizes the
      project entitled “Development and Demonstration of Microgasification Technology”
upon signing this Base Research Agreement. 

    

    Article
      2 - Scope of Work

    

    CONTRACTOR
      agrees to perform the scope of work as set forth in CONTRACTOR’s Proposal No.
      2006-0179, entitled “Development and Demonstration of Microgasification
      Technology,” dated May 24, 2006, appended hereto and incorporated as APPENDIX A,
      Scope of Work and Budget. The individual tasks, however, are to be refined
      and
      verified at the beginning of the Project. Any changes to the Scope of Work
      should be mutually agreed upon among the parties and documented in
      writing.

    

    Article
      3 - Period of Performance

    

    The
      Base
      Research Agreement will become effective on May 24, 2006, and will continue
      through May 24, 2009. However, there may be specific time periods associated
      with each individual project. Specific time frames will be addressed in the
      e-mail authorizations. CONTRACTOR shall use its best efforts to complete the
      Project within the time frames associated with each Project. CONTRACTOR may
      reasonably extend the planned completion date of the Project to reflect actual
      performance. Notification of the new planned completion date will be forwarded
      to SPONSOR.

    

    Article
      4 - Deliverables

    

    CONTRACTOR
      shall use its best efforts to submit the reports/deliverables described in
      each
      Scope of Work in accordance with the time frames specified therein.

    

    Article
      5- Consideration and Payment

    

    The
      total
      cost to perform the various Projects is estimated to be as outlined in the
      business plan of the SPONSOR. SPONSOR agrees to prepay CONTRACTOR a
      cost-reimbursable amount not to exceed $300,000 for the initial project
      authorized under this Agreement. CONTRACTOR will attempt to secure the remaining
      funds of $300,000 from DOE for the initial project. CONTRACTOR will promptly
      notify SPONSOR should it receive notice that such funding from DOE will be
      delayed or not forthcoming. It is understood that funding received from DOE
      will
      be authorized under separate agreement with CONTRACTOR.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    For
      the
      initial Project, SPONSOR agrees to pay CONTRACTOR $300,000 prior to the start
      of
      the work. Thereafter, payments will be as described in each proposal unless
      agreed otherwise in writing between SPONSOR and CONTRACTOR. 

    

    Invoices
      for expenses incurred shall be submitted to SPONSOR monthly for payment within
      thirty (30) days of receipt of invoice. SPONSOR’s billing address is Advanced
      Biomass Gasification Technologies, Inc. 202 South Wheeler Street, Plant City,
      Florida 33563 Attention: President. Costs shall be in accordance with the
      itemized budget appended hereto and incorporated in the appendices. CONTRACTOR
      will, as dictated by the needs of the work, reallocate the budget among approved
      items or use the funds for other items directly related to the Project, subject
      only to staying within the total amount authorized and subject to federal
      requirements established in OMB Circular A-21, Cost Principles for Educational
      Institutions. 

     

    Article
      6 - Intellectual Property

    

    CONTRACTOR
      will promptly notify SPONSOR and all cosponsors if any inventions, discoveries,
      or improvements are developed under this Project which it believes are
      potentially patentable or otherwise protectable.

    

    Subject
      to necessary applicable federal approvals, for the duration of this Agreement,
      any and all inventions, discoveries, computer software, or improvements
      developed by CONTRACTOR and SPONSOR will be the sole and exclusive property
      of
      the CONTRACTOR, patentable or not. 

     

    Any
      and
      all inventions, discoveries, computer software, or improvements developed during
      the initial Project of this Agreement by CONTRACTOR and/or SPONSOR to the
      Biomass Gasification System in the Lignin and Biomass Feedstock Gasification
      field in Imbert gasifiers of up to 10 megawatt thermal are already part of
      the
      License Agreement, between the EERC Foundation and SPONSOR and will be subject
      to all applicable federal government rights, at no additional cost to SPONSOR.
      

    

    In
      addition, after the initial Project is completed, SPONSOR shall have the
      exclusive right to negotiate an exclusive commercial license, subject to all
      applicable federal rights, on any inventions, discoveries, or computer software
      developed by CONTRACTOR or SPONSOR as a result of the project for a period
      of
      one calendar year term, the term starting at the disclosure of such invention.
      

     

    At
      a
      minimum, SPONSOR and Cosponsors shall have a nonexclusive, perpetual,
      royalty-free license to practice for internal operations any invention,
      discovery, computer software, or improvement conceived or made by CONTRACTOR
      as
      a result of this Project, whether patentable or not, and to contract with others
      for SPONSOR’s internal operations. The right to practice for internal operations
      is not the right to practice or manufacture for commercial purposes by SPONSOR
      or in conjunction with others.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

    For
      those
      projects that are cosponsored by a federal agency, SPONSOR and CONTRACTOR
      recognize that certain rights accrue to the U.S. Government concerning patents,
      copyrights, etc., resulting from this work being cosponsored by DOE. These
      rights are detailed in DOE Acquisition Regulation 952.227-11, Patent Rights.
      As
      used in said provisions, the following terms apply to DOE: “Government,” “Head
      of Agency,” “Agency Head,” “Secretary,” or “Contracting Officer.” The terms
“Contractor” and “Participant” apply to CONTRACTOR.

     

    Article
      7 - Title to Equipment

    

    CONTRACTOR
      shall retain title to all equipment purchased and/or fabricated by it or on
      its
      behalf with funds provided by SPONSOR under this Agreement.

    

    Article
      8 - Public Information Releases

    

    SPONSOR
      shall coordinate in advance with CONTRACTOR on all public information releases
      to be issued by SPONSOR concerning this Project if the release contains a
      reference to CONTRACTOR. Such releases shall not be issued without prior
      approval from CONTRACTOR.

    

    Article
      9 - Confidentiality

    

    SPONSOR
      and CONTRACTOR consider certain data, know-how, and other information
      (hereinafter referred to as Information) which may be disclosed between the
      Parties to be confidential and proprietary. Any information that is intended
      to
      be confidential under this Agreement must qualify as confidential under the
      open
      records law of the state of North Dakota. North Dakota law provides that trade
      secret, proprietary, commercial, and financial information is confidential
      if it
      is of a privileged nature and has not been previously publicly disclosed.

    

    Confidential
      Information which is disclosed by either party must be marked confidential.
      In
      the event of oral disclosures, the information will be reduced to writing within
      thirty (30) days of disclosure to remain confidential. 

    

    The
      Parties recognize the proprietary rights of the disclosing Party in and to
      the
      Information and the confidential nature of the Information. Thus the Parties
      agree to take every reasonable precaution to safeguard and treat the Information
      as confidential and to take every appropriate action by instruction, agreement,
      or notice to its directors, officers, agents, and employees of the confidential
      and proprietary nature of the Information submitted by the disclosing Party.
      Reasonable precautions to safeguard the Information shall mean using a standard
      of care which is no less stringent than that which the disclosing Party uses
      to
      protect its own confidential information. 

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    The
      confidentiality requirements do not apply to Information that is a) already
      known by the receiving Party, b) disclosed by a third party having a bona fide
      right to do so, c) presently in the public domain, or d) independently developed
      by the receiving Party. 

    

    For
      projects where DOE is a cosponsor, DOE will have the right to examine/review
      all
      confidential information of this Project as necessary to evaluate the Project
      and Project progress. In addition, any confidential information submitted by
      SPONSOR that is included in the technical progress reports will be submitted
      in
      a separate appendix, and DOE will be requested to hold that appendix in
      confidence for a period 5 years in accordance with the Energy Policy Act.

    

    Other
      than the process described above for progress reports, it is hereby agreed
      between the Parties that the Information will be held in confidence for a period
      of ten (10) years from disclosure or until written permission to disclose is
      given by the disclosing Party, whichever is shorter.

    

    Article
      10 - Independent Contractor

    

    CONTRACTOR
      is an Independent Contractor, not a partner or joint venturer, and shall not
      act
      as an agent for SPONSOR, nor shall CONTRACTOR be deemed to be an employee of
      SPONSOR for any purpose whatsoever. CONTRACTOR shall not have any authority,
      either express or implied, to enter into any agreement, to incur any obligations
      on behalf of SPONSOR, or to commit SPONSOR in any manner whatsoever without
      SPONSOR’s express prior written consent.

    

    Article
      11 - Termination

    

    If
      CONTRACTOR shall fail to fulfill one or more of its obligations under this
      Agreement or breach any one or more of the terms and conditions of this
      Agreement, SPONSOR may, upon its election, at any time terminate this Agreement
      by giving not less than thirty (30) days’ prior written notice of termination to
      CONTRACTOR specifying any such breach or default. In the event of termination
      pursuant to this Article, CONTRACTOR shall stop all work hereunder. No costs
      incurred after the effective date of termination will be allowable, except
      1)
      those costs which CONTRACTOR could not reasonably avoid or eliminate, 2) those
      costs which were otherwise authorized by the termination notice, or 3) those
      costs which were incurred in CONTRACTOR’s satisfactory fulfillment of its
      obligations under this Agreement. In no event will the total of payments under
      this Agreement, if terminated, exceed the amount authorized by SPONSOR in
      Article 4 of this Agreement.

    

    Either
      party may terminate this Agreement for convenience by thirty (30) days’ written
      notice to the other party. In the event of such termination, CONTRACTOR shall
      immediately stop all work and shall be reimbursed for allowable costs incurred
      under such termination and for all costs incurred after the effective date
      of
      such termination, which CONTRACTOR could not reasonably avoid or eliminate
      or
      which were otherwise authorized by the termination notice. In no event will
      the
      total of payments under this Agreement, if terminated, exceed the amount
      authorized by SPONSOR in Article 5 of this Agreement.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    
 

    Article
      12 - Notices

    

    Other
      than as set out under applicable law, all notices, demands, offers, and other
      communications required or permitted hereunder shall be in writing and shall
      be
      deemed to have been given when received at the addresses noted below. The
      following are the separate addresses for technical and contractual
      concerns:

    

    
      	
              SPONSOR

            	
              Technical
                Matters

            	
              Contractual
                Matters

            
	
              Name

            	
              Technical
                lead as determined

            	
              Joel
                Edelson

              ABGT

            
	
              Address

            	 	
              202
                South Wheeler Street

            
	
              Phone

            	 	
              813-754-4330

            
	
              Fax

            	 	
              813-754-2383

            
	
              e-mail

            	 	
              jedelson@utekcorp.com

            
	 	 	 
	
              CONTRACTOR

            	 	 
	
              Name

            	
              Darren
                Schmidt

            	
              Walt
                Hollifield

            
	
              Address

            	
              Energy
                & Environmental

              Research
                Center

              University
                of North Dakota

              PO
                Box 9018

              Grand
                Forks, ND 58202

            	
              Energy
                & Environmental

              Research
                Center

              University
                of North Dakota

              PO
                Box 9018

              Grand
                Forks, ND 58202

            
	
              Phone

            	
              (701)
                777-5120

            	
              (701)
                777-5379

            
	
              Fax

            	
              (701)
                777-5181

            	
              (701)
                777-5181

            
	
              e-mail

            	
              dschmidt@undeerc.org

            	
              whollifield@undeerc.org

            

    

     

    Article
      13 - Liability

    

    Each
      Party shall be responsible for claims, losses, damages, and expenses which
      are
      proximately caused by the negligence or wrongful acts or omissions of that
      party
      or its employees, agents, or representatives acting within the scope of their
      employment. The tort liability of CONTRACTOR is subject to the conditions and
      limitations contained in Chapter 32-12.2 of the North Dakota Century Code.
      Nothing herein shall preclude either party from asserting against third parties
      any defenses to liability it may have under the law or be construed to create
      a
      basis for a claim or suit when none would otherwise exist. This provision shall
      survive the termination of this Agreement.

    

    SPONSOR
      agrees to inform CONTRACTOR in the event either an investigation or claim arises
      out of the performance of this contract and shall provide CONTRACTOR with
      reasonable access to information involving such investigation or claim. SPONSOR
      shall notify CONTRACTOR of the disposition of any such investigation or
      claim.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    Article
      14 - Governing Law

    

    This
      Agreement shall be governed by, construed, and enforced in accordance with
      the
      laws of the state of North Dakota.

     

    Article
      15 - Miscellaneous

    

    The
      CONTRACTOR will use commercially reasonable best efforts to support SPONSOR
      to
      facilitate technology commercialization. This includes providing service to
      SPONSOR in productizing and setting up demonstration projects in the field
      of
      lignin and biomass feedstock gasification for the Biomass Gasification System
      for a period of at least 36 months. CONTRACTOR will, in addition, outsource
      some
      of the manufacturing work to local businesses to transfer manufacturing
      expertise and enable SPONSOR to ramp up production. 

    

    In
      order
      for CONTRACTOR to support SPONSOR, SPONSOR agrees to contract with CONTRACTOR
      exclusively for research, development, and demonstration on the Biomass
      Gasification System, which is the subject of this Agreement, for a period of
      at
      least thirty-six (36) months after the effective date of this Agreement.

    

    The
      headings in this Agreement are inserted for convenience and identification
      only
      and are in no way intended to describe, interpret, define, or limit the scope,
      extent, or intent of this Agreement or any provision hereof.

    

    The
      terms
      of this Agreement are binding upon and inure to the benefit of the successors
      and assigns of the respective parties. However, the rights and obligations
      of
      SPONSOR may not be transferred to its Affiliates without the prior written
      approval of CONTRACTOR. 

    

    This
      Agreement, with attached APPENDICES, constitutes the entire agreement between
      the parties relative to the subject matter.

    

    Except
      for changes in work pursuant to Article 3, all changes, alterations, or
      modifications to this Agreement will be in writing and signed by the authorized
      officials of the parties hereto.

    

    If
      one or
      more of the provisions of the Agreement are held invalid, illegal, or
      unenforceable in any respect, the validity, legality, and enforceability of
      the
      remaining provisions shall not be in any way be affected or impaired
      thereby.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

     

    IN
      WITNESS WHEREOF, the parties hereto have executed this Agreement on the day
      and
      year last specified below:

    

    

    
      	
               

              ADVANCED
                BIOMASS

              GASIFICATION
                TECHNOLOGIES

            	 	
               

              UNIVERSITY
                OF NORTH DAKOTA

              ENERGY
                & ENVIRONMENTAL RESEARCH CENTER

            
	
               

              By

            	
               

              /s/Joel
                Edelson

            	 	
               

              By

            	
               

              /s/
                Dr. Barry I. Milavetz

            
	
               

              Name

            	
               

              Joel
                Edelson

            	 	
               

              Name

            	
               

              Dr.
                Barry I. Milavetz

            
	
               

              Title

            	
               

              President

            	 	
               

              Title

            	
              Associate
                VP for Research

              Research
                Development and Compliance

            
	
              Date

            	
              May
                24, 2006

            	 	
              Date

            	 

    

    

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    

    APPENDIX
      A

    

    SCOPE
      OF
      WORK AND BUDGET

    

    University
      of North Dakota

    Energy
      & Environmental Research Center

    

    Proposal
      No. 2006-0179

    Dated
      May
      24, 2006

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    APPENDIX
      B

    

    ADDITIONAL
      PROVISIONS

    

    U.S.
      Department of Energy

    Intellectual
      Property Provisions

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