Document:

Unassociated Document

    
      	
              Exclusive
                Patent and Know-How Final License Agreement

            	
              Confidential

            

    

     

    

      Exhibit
        10.6

      Exclusive
        Patent and Know-How Final License Agreement dated as of May 24, 2006 between
        the
        Energy and Environmental Research Center Foundation and Advanced Biomass
        Gasification Technologies, Inc.

      

      

      

       

      ENERGY
        & ENVIRONMENTAL RESEARCH CENTER FOUNDATION

      

      EXCLUSIVE
        PATENT AND KNOW-HOW LICENSE AGREEMENT

      

      ON
        SMALL BIOMASS GASIFICATION

       

      
        
          
          

        

        
          Page
            1 of
            32

          
            

          

        

        
          
          

        

      

      
 

      
        
          	
                  Exclusive
                    Patent and Know-How Final License Agreement

                	
                  Confidential

                

        

         

      

      

      TABLE
        OF CONTENTS

      

      
        	
                RECITALS

              	
                3

              
	
                1.
                  Definitions

              	
                4

              
	
                2.
                  Grant of Rights

              	
                7

              
	
                3.
                  LICENSEE Diligence Obligations

              	
                9

              
	
                4.
                  Royalties and Payment Terms

              	
                11

              
	
                5.
                  Reports and Records

              	
                13

              
	
                6.
                  Patent Prosecution

              	
                15

              
	
                7.
                  Infringement

              	
                16

              
	
                8.
                  Indemnification and Insurance

              	
                18

              
	
                9.
                  No Representations or Warranties

              	
                20

              
	
                10.
                  Assignment

              	
                20

              
	
                11.
                  General Compliance with Laws

              	
                21

              
	
                12.
                  Termination

              	
                22

              
	
                13.
                  Dispute Resolution

              	
                23

              
	
                14.
                  Miscellaneous

              	
                25

              
	
                APPENDIX
                  A

              	
                28

              
	
                APPENDIX
                  B

              	
                32

              

      

       

      
        
          
          

        

        
          Page
            2 of
            32

          
            

          

        

        
          
          

        

      

      

      

        
          	
                  Exclusive
                    Patent and Know-How Final License Agreement

                	
                  Confidential

                

        

         

      

      This
        Agreement, effective as of the date set forth above the signatures of the
        parties below (the “EFFECTIVE DATE”), is between the Energy & Environmental
        Research Center Foundation (“LICENSOR”), a nonprofit foundation incorporated
        under the laws of North Dakota, EERC Foundation, 15 North 23rd Street, PO
        Box
        9018, Grand Forks, ND 58202-9018, and Advanced Biomass Gasification
        Technologies, Inc. (ABGT* ),
        a
        wholly owned subsidiary of UTEK Corporation (“LICENSEE”), a Florida corporation,
        with a principal place of business at 202 South Wheeler Street, Plant City,
        Florida 33563.

      

      RECITALS

      

      WHEREAS,
        LICENSOR is the owner by assignment, subject to North Dakota statutory law
        and
        policies of the University of North Dakota (“UND”), of certain INTELLECTUAL
        PROPERTY (as later defined herein) relating to LICENSOR Case Nos. IP 05-020,
        “Biomass Gasification System”; IP 06-004, “Method and Apparatus for Supply of
        Low-Btu Gas to an Engine Generator”; and IP 06-005, “Wet Solids Removal and
        Separation System from a Gasifier,” all developed by the University of North
        Dakota Energy & Environmental Research Center (“EERC”), a nonprofit
        department of UND, and LICENSOR has the right to grant licenses under said
        INTELLECTUAL PROPERTY;

      

      WHEREAS,
        LICENSOR desires to have the INTELLECTUAL PROPERTY developed and commercialized
        to benefit the public and is willing to grant a license thereunder;

      

      WHEREAS,
        LICENSEE has represented to LICENSOR, to induce LICENSOR to enter into this
        Agreement, that LICENSEE shall commit itself to a thorough, vigorous, and
        diligent program of exploiting the INTELLECTUAL PROPERTY so that public
        utilization shall result therefrom; and

       

       

      
        
          

        

      

      * ABGT
        intends to be acquired within 30 days of consummating this license agreement.
        All terms would remain in effect on the acquiring company after the acquisition
        is complete. This Draft License Agreement is for discussion purposes only
        and in
        no way binds either party to any term presented herein unless and until agreed
        to under a fully executed agreement.

       

      
        
          
          

        

        
          Page
            3 of
            32

          
            

          

        

        
          
          

        

      

       

      

        
          	
                  Exclusive
                    Patent and Know-How Final License Agreement

                	
                  Confidential

                

        

        
 

      

      WHEREAS,
        LICENSEE desires to obtain a license under the INTELLECTUAL PROPERTY upon
        the
        terms and conditions hereinafter set forth.

      

      WHEREAS,
        both
        the
        LICENSOR and LICENSEE understand and approve the pending acquisition of the
        LICENSEE 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.

      

      NOW,
        THEREFORE, LICENSOR and LICENSEE hereby agree as follows.

      

      1.
        DEFINITIONS.

      

      1.1
        “ASSOCIATE
        ”
        shall
        mean any legal entity (such as a corporation, partnership, or limited liability
        company) that either controls or is controlled by LICENSEE. For the purposes
        of
        this definition, the term “control” means (i) beneficial ownership of at least
        fifty percent (50%) of the voting securities of a corporation or other business
        organization with voting securities or (ii) a fifty percent (50%) or greater
        interest in the net assets or profits of a partnership or other business
        organization without voting securities.

      

      1.2
        “EXCLUSIVE
        PERIOD”
shall
        mean the period of time set forth in Section 2.5.

      

      1.3
        “FIELD”
shall
        mean Lignin and Biomass Feedstock Gasification in Imbert gasifiers
        of up to 10 megawatt thermal.  

      

      1.4
        “LICENSED
        PRODUCT”
shall
        mean any service, product, or part thereof that:

      (i) Absent
        the license granted hereunder, would infringe one or more claims of the PATENT
        RIGHTS; or

      (ii) Is
        manufactured by using a LICENSED PROCESS or that, when used, practices a
        LICENSED PROCESS; or

      (iii) Uses
        TECHNICAL INFORMATION.

       

      
        
          
          

        

        
          Page
            4 of
            32

          
            

          

        

        
          
          

        

      

       

      

        
          	
                  Exclusive
                    Patent and Know-How Final License Agreement

                	
                  Confidential

                

        

        
 

      

      1.5
        “LICENSED
        PROCESS”
shall
        mean any process that, absent the license granted hereunder, would infringe
        one
        or more claims of the PATENT RIGHTS, or which uses TECHNICAL INFORMATION,
        or
        which uses a LICENSED PRODUCT.

      

      1.6
        “NET
        SALES”
shall
        mean the gross amount billed by LICENSEE and its ASSOCIATE S and SUBLICENSEES
        for LICENSED PRODUCTS and LICENSED PROCESSES, less the following: 

      (i)
        Customary trade, quantity, or cash discounts to the extent actually allowed
        and
        taken; 

      (ii)
        Amounts repaid or credited by reason of rejection or return; 

      (iii)
        To
        the extent separately stated on purchase orders, invoices, or other documents
        of
        sale, any taxes or other governmental charges levied on the production, sale,
        transportation, delivery, or use of a LICENSED PRODUCT or LICENSED PROCESS
        which
        is paid by or on behalf of LICENSEE; and 

      (iv)
        Outbound transportation costs prepaid or allowed and costs of insurance in
        transit.

       

      No
        deductions shall be made for commissions paid to individuals whether they
        be
        with independent sales agencies or regularly employed by LICENSEE and on
        its
        payroll, or for cost of collections. NET SALES shall occur on the date of
        billing for a LICENSED PRODUCT or LICENSED PROCESS. If a LICENSED PRODUCT
        or a
        LICENSED PROCESS is distributed at a discounted price that is substantially
        lower than the customary price charged by LICENSEE, or distributed for noncash
        consideration (whether or not at a discount), NET SALES shall be calculated
        based on the nondiscounted amount of the LICENSED PRODUCT or LICENSED PROCESS
        charged to an independent third party during the same REPORTING PERIOD or,
        in
        the absence of such sales, on the fair market value of the LICENSED PRODUCT
        or
        LICENSED PROCESS.

       

      Nonmonetary
        consideration shall not
        be
        accepted by LICENSEE, any ASSOCIATE , or any SUBLICENSEE for any LICENSED
        PRODUCTS or LICENSED PROCESSES without the prior written consent of
        LICENSOR.

       

      
        
          
          

        

        
          Page
            5 of
            32

          
            

          

        

        
          
          

        

      

       

      

        
          	
                  Exclusive
                    Patent and Know-How Final License Agreement

                	
                  Confidential

                

        

         

         

      

      1.7
        “NET
        SAVINGS”
shall
        mean the net amount saved by a customer of the LICENSEE and its ASSOCIATE
        S and
        SUBLICENSEES if electricity or fuel cost or waste disposal cost have been
        reduced by use of LICENSED PRODUCTS and LICENSED PROCESSES.

      

      1.8
        “INTELLECTUAL
        PROPERTY”
shall
        mean any of the PATENT RIGHTS, TECHNICAL INFORMATION, and IMPROVEMENTS.

      

      1.9
        “PATENT
        RIGHTS”
shall
        mean all patents and patent applications, all divisions, substitutions,
        continuations, continuations-in-part, reissues, reexaminations, and extensions
        thereof, together with any foreign counterpart thereof and patents issuing
        thereon derived from or claiming the priority of the U.S. provisional patent
        applications listed on Appendix A.

      

      1.10
        “TECHNICAL
        INFORMATION”
shall
        mean all
        unpublished research and development information, unpatented inventions,
        know-how, trade secrets, technical data, software, financial data, agreements,
        and marketing information related to suppliers, contractors, and customers
        and
        in the possession of the LICENSOR at the EFFECTIVE DATE of this Agreement
        that
        are reasonably necessary to produce LICENSED PRODUCTS and that the LICENSOR
        has
        the right to provide to the LICENSEE listed
        in
Appendix A.
        TECHNICAL
        INFORMATION is considered confidential if it qualifies as confidential under
        the
        open records laws 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.

      

      1.11
        “IMPROVEMENTS”
shall
        mean any patented modification of a device, method, or product described
        in the
        PATENT RIGHTS, provided such a modification, if unlicensed, would infringe
        one
        or more claims of the issued PATENT RIGHTS.

      

      1.12
        “REPORTING
        PERIOD”
shall
        begin on the first day of each calendar quarter and end on the last day of
        such
        calendar quarter. 

      

      1.13
        “SUBLICENSE
        INCOME”
shall
        mean any payments that LICENSEE or an ASSOCIATE receives from a SUBLICENSEE
        in
        consideration of the sublicense of the rights granted LICENSEE and ASSOCIATE
        S under
        Section 2.1, including without limitation license fees, milestone payments,
        license maintenance fees, and other payments,
        but
        specifically excluding royalties on NET SALES.

       

      
        
          
          

        

        
          Page
            6 of
            32

          
            

          

        

        
          
          

        

      

       

      

        
          	
                  Exclusive
                    Patent and Know-How Final License Agreement

                	
                  Confidential

                

        

         

         

      

      1.14
        “SUBLICENSEE”
shall
        mean any non-ASSOCIATE sublicensee of the rights granted LICENSEE under Section
        2.1.

      

      1.15
        “TERM”
shall
        mean the term of this Agreement, which shall commence on the EFFECTIVE DATE
        and
        shall remain in effect until the longer of 20 years or the life of the
        INTELLECTUAL PROPERTY.

      

      1.16
        “TERRITORY”
shall
        mean worldwide. 

      

      2.
        GRANT OF RIGHTS.

      

      2.1
        License
        Grants.
        Subject
        to the terms of this Agreement, LICENSOR hereby grants to LICENSEE and its
        ASSOCIATE S for the TERM a royalty-bearing license under the INTELLECTUAL
        PROPERTY to develop, make, have made, use, sell, offer to sell, lease, and
        import LICENSED PRODUCTS in the FIELD in the TERRITORY and to develop and
        perform LICENSED PROCESSES in the FIELD in the TERRITORY.

      

      2.2
        Disclosure
        of Technical Information to LICENSEE.
        LICENSOR, within ninety (90) days after the EFFECTIVE DATE of this Agreement,
        will make available to LICENSEE for its use TECHNICAL INFORMATION. LICENSOR
        agrees to disclose to LICENSEE, upon execution of this Agreement, LICENSOR’s
        pending U.S. patent applications identified in Appendix A
        of
        this
        Agreement.

      

      2.3
        Confidentiality
        of Technical Information.
        LICENSEE will not disclose any confidential TECHNICAL INFORMATION furnished
        by
        LICENSOR pursuant to Section 2.2 above to third parties during the term of
        this
        Agreement, or any time thereafter, provided, however, that disclosure may
        be
        made of any such TECHNICAL INFORMATION at any time 1) with the prior written
        consent of LICENSOR or 2) to the extent necessary to purchasers of LICENSEE’s
        products or services or 3) is part of a sublicense or 4) after it has become
        public through no fault of LICENSEE or purchasers of LICENSEE’s products or
        services. To the extent that any such TECHNICAL INFORMATION is disclosed
        to
        ASSOCIATE S, SUBLICENSEE, or purchasers of LICENSEE’s products or services,
        LICENSEE will impose the obligations contained in this Article on all such
        parties and inform the LICENSOR of the disclosure. 

       

      
        
          
          

        

        
          Page
            7 of
            32

          
            

          

        

        
          
          

        

      

       

      

        
          	
                  Exclusive
                    Patent and Know-How Final License Agreement

                	
                  Confidential

                

        

         

         

      

      2.4
        Term
        of Use of Technical Information.
        LICENSEE will not use any TECHNICAL INFORMATION furnished by LICENSOR other
        than
        for providing LICENSED PRODUCTS or LICENSED PROCESSES and only during the
        EXCLUSIVE PERIOD of this Agreement, provided, however, that other use of
        such
        TECHNICAL INFORMATION may be made 1) with the prior written consent of LICENSOR
        or 2) after it has become public through no fault of LICENSEE, ASSOCIATE
        S,
        SUBLICENSEE, or purchasers of LICENSEE’s products or services.

      

      2.5
        Exclusivity.
        In
        order to establish an exclusive period for LICENSEE, LICENSOR agrees that
        it
        shall not grant any other license to make, have made, use, sell, lease, and
        import LICENSED PRODUCTS in the FIELD in the TERRITORY or to perform LICENSED
        PROCESSES in the FIELD in the TERRITORY during the period of time commencing
        on
        the EFFECTIVE DATE and terminating after 2012. Thereafter, exclusivity will
        automatically be renewed for the following year on a country-by-country basis
        if
        the royalty payments from that country reach at least fifty
        thousand dollars
        ($50,000) on an annual basis. For example, if in the year 2012 at least
fifty
        thousand dollars
        ($50,000) in royalty payments were generated, the exclusive license will
        continue for that country for the following year, 2013. Otherwise, the license
        granted hereunder shall become nonexclusive and shall extend to the end of
        the
        TERM, unless sooner terminated as provided in this Agreement.

      

      2.6
        Sublicenses.
        LICENSEE shall have the right to grant sublicenses of its rights under Sections
        2.1-2.5 only during the EXCLUSIVE PERIOD. Such sublicenses may extend past
        the
        expiration date of the EXCLUSIVE PERIOD, but any exclusivity of such sublicense
        shall expire upon the expiration of the EXCLUSIVE PERIOD. LICENSEE shall
        incorporate terms and conditions into its sublicense agreements sufficient
        to
        enable LICENSEE to comply with this Agreement. LICENSEE shall promptly furnish
        LICENSOR with a fully signed photocopy of any sublicense agreement. Upon
        termination of this Agreement for any reason, any SUBLICENSEE not then in
        default shall have the right to seek a license from LICENSOR. LICENSOR agrees
        to
        negotiate such licenses in good faith under reasonable terms and
        conditions.

       

      
        
          
          

        

        
          Page
            8 of
            32

          
            

          

        

        
          
          

        

      

       

      

        
          	
                  Exclusive
                    Patent and Know-How Final License Agreement

                	
                  Confidential

                

        

        
 

      

      2.7
        U.S.
        Manufacturing.
        LICENSEE agrees that any LICENSED PRODUCTS used or sold in the United States
        will be manufactured substantially in the United States. LICENSEE agrees
        to use
        commercially reasonable efforts to utilize the EERC and its partners in North
        Dakota. 

      

      2.8
        Retained
        Rights.

      (a)
         LICENSOR.
        LICENSOR retains the right for the EERC to practice under the INTELLECTUAL
        PROPERTY for research, development, teaching, and educational purposes.

      

      (b)
         Federal
        Government.
        LICENSEE acknowledges that the U.S. federal government retains a royalty-free,
        nonexclusive, nontransferable license to practice any government-funded
        invention claimed under the INTELLECTUAL PROPERTY as set forth in 35 U.S.C.
        §§ 201-211 and the regulations promulgated thereunder, as amended, or any
        successor statutes or regulations.

      

      2.9
        No
        Additional Rights.
        Nothing
        in this Agreement shall be construed to confer any rights upon LICENSEE by
        implication, estoppel, or otherwise as to any technology or patent rights
        of
        LICENSOR or any other entity other than the INTELLECTUAL PROPERTY, regardless
        of
        whether such technology or patent rights shall be dominant or subordinate
        to any
        INTELLECTUAL PROPERTY.

      

      3.
        LICENSEE DILIGENCE OBLIGATIONS.

      

      3.1
        Diligence
        Requirements.
        LICENSEE shall use diligent efforts, and shall cause its ASSOCIATE S and
        SUBLICENSEES to use diligent efforts, to develop LICENSED PRODUCTS or LICENSED
        PROCESSES and to introduce LICENSED PRODUCTS or LICENSED PROCESSES into the
        commercial market; thereafter, LICENSEE or its ASSOCIATE S or SUBLICENSEES
        shall
        make LICENSED PRODUCTS or LICENSED PROCESSES reasonably available to the
        public.
        Specifically, LICENSEE or ASSOCIATE or SUBLICENSEE shall fulfill the following
        obligations:

       

      
        
          
          

        

        
          Page
            9 of
            32

          
            

          

        

        
          
          

        

      

       

      

        
          	
                  Exclusive
                    Patent and Know-How Final License Agreement

                	
                  Confidential

                

        

        
 

      

      (a)
         At
        the
        EFFECTIVE DATE, LICENSEE shall enter an agreement with the EERC in order
        to
        demonstrate the LICENSED PRODUCT, specifying to LICENSOR the number of staff
        and
        other resources to be devoted to such commercialization effort.

      

      (b)
         Within
        sixty (60) days after December 31 and after June 30, there will be a semiannual
        face-to-face meeting between representatives from the LICENSEE and the LICENSOR
        to discuss progress and commercialization plans during the first three (3)
        years
        after the EFFECTIVE DATE. Thereafter, such a meeting will be held annually
        within sixty (60) days after the end of each calendar year. 

      

      (c) LICENSEE
        will contract with the EERC exclusively for research, development, and
        demonstration on the Biomass Gasification System for a period of at least
        thirty-six (36) months after the EFFECTIVE DATE.

       

      (d) LICENSEE
        shall complete long-term testing at the pilot stage by December 31,
        2008.

      

      (e) LICENSEE
        shall make a first commercial sale of a LICENSED PRODUCT on or before June
        30,
        2009.

      

      (f) LICENSEE
        shall make NET SALES according to the following schedule:

      
        	
                2009

              	 	
                $

              	
                500,000;

              	 
	
                2010

              	 	
                $

              	
                2,000,000;

              	 
	
                2011
                  and each year thereafter

              	 	
                $

              	
                5,000,000.

              	 

      

      

      (g) LICENSEE
        consults with the EERC or an agreed-upon third party that verifies technical
        conformance of the installation with the technology. There is a minimum
        requirement for consulting after the completion of every new design and prior
        to
        start-up of a new installation. 

       

      
        
          
          

        

        
          Page
            10
            of 32

          
            

          

        

        
          
          

        

      

       

      

        
          	
                  Exclusive
                    Patent and Know-How Final License Agreement

                	
                  Confidential

                

        

        
 

      

      In
        the
        event that LICENSOR determines that LICENSEE (or an ASSOCIATE or SUBLICENSEE)
        has failed to fulfill any of its obligations under this Section 3.1, then
        LICENSOR may treat such failure as a material breach in accordance with Section
        12.3(b). 

      

      4.
        ROYALTIES AND PAYMENT TERMS.

      

      4.1
        Consideration
        for Grant of Rights.

      

      (a)
         License
        Issue Fee and Patent Cost Reimbursement.
        LICENSEE shall pay to LICENSOR on the EFFECTIVE DATE a license issue fee
        of
fifty
        thousand dollars
        ($50,000).
        

      

      (b)  License
        Maintenance Fees.
        LICENSEE shall pay to LICENSOR the following license maintenance fees on
        the
        dates set forth below:

      

      
        	
                [January
                  1, 2007]

              	
                [$ 
                  10,000]

              
	
                [January
                  1, 2008]

              	
                [$ 
                  10,000]

              
	
                [January
                  1, 2009]

              	
                [$ 
                  25,000]

              
	
                [January
                  1, 2010]

              	
                [$ 
                  50,000]

              
	
                [and
                  each January 1 of 

              	 
	
                every
                  year thereafter]

              	
                [$100,000]

              

      

      

      This
        annual license maintenance fee is nonrefundable; however, the running royalties
        due on NET SALES paid during the previous 12-month period, if any, may be
        credited to the license maintenance fee. License maintenance fees paid in
        excess
        of running royalties due
        in such
        12-month period shall not be creditable to amounts due for future
        years. 

      

      (c)  Running
        Royalties.
        LICENSEE shall pay to LICENSOR a running royalty of two
        percent
        (2.0%)
        on NET SALES of equipment by LICENSEE, ASSOCIATES and SUBLICENSEES, one
        quarter of one percent
        (1/4% or
        0.25%) on NET SALES or NET SAVINGS of electricity and/or fuel by customer
        of
        LICENSEE and ASSOCIATES, and four
        percent
        (4.0 %)
        on NET SALES of service fee income by LICENSEE and ASSOCIATES. Running royalties
        shall be payable for each REPORTING PERIOD and shall be due to LICENSOR within
        sixty (60) days of the end of each REPORTING PERIOD. 

       

      
        
          
          

        

        
          Page
            11
            of 32

          
            

          

        

        
          
          

        

      

       

      

        
          	
                  Exclusive
                    Patent and Know-How Final License Agreement

                	
                  Confidential

                

        

         

         

      

      (d)  Sharing
        of SUBLICENSE INCOME.
        LICENSEE shall pay LICENSOR a total of thirty-five
        percent
        (35%) of
        all SUBLICENSE INCOME received by LICENSEE or ASSOCIATES, excluding running
        royalties on NET SALES of equipment of SUBLICENSEES. If LICENSOR brings a
        SUBLICENSEE to LICENSEE, then LICENSEE shall pay LICENSOR fifty
        percent
        (50%) of
        all SUBLICENSE INCOME received by LICENSEE or ASSOCIATES, excluding running
        royalties on NET SALES of equipment of SUBLICENSEES. Such amount shall be
        payable for each REPORTING PERIOD and shall be due to LICENSOR within sixty
        (60)
        days of the end of each REPORTING PERIOD.

      

      (e) No
        Multiple Royalties.
        If the
        manufacture, use, lease, or sale of any LICENSED PRODUCT or the performance
        of
        any LICENSED PROCESS is covered by more than one of the PATENT RIGHTS, multiple
        royalties shall not
        be
        due.

      

      4.2
        Payments.

      

      (a)  Method
        of Payment.
        All
        payments under this Agreement should be made payable to “Energy &
Environmental Research Center Foundation” and sent to the address identified in
        Section 14.1. Each payment should reference this Agreement and identify the
        obligation under this Agreement that the payment satisfies.

      

      (b)
         Payments
        in U.S. Dollars.
        All
        payments due under this Agreement shall be drawn on a United States bank
        and
        shall be payable in United States dollars. Conversion of foreign currency
        to
        U.S. dollars shall be made at the conversion rate existing in the United
        States
        (as reported in the Wall
        Street Journal)
        on the
        last working day of the calendar quarter of the applicable REPORTING PERIOD.
        Such payments shall be without deduction of exchange, collection, or other
        charges, and, specifically, without deduction of withholding or similar taxes
        or
        other government imposed fees or taxes, except as permitted in the definition
        of
        NET SALES.

       

      
        
          
          

        

        
          Page
            12
            of 32

          
            

          

        

        
          
          

        

      

       

      

        
          	
                  Exclusive
                    Patent and Know-How Final License Agreement

                	
                  Confidential

                

        

        
 

      

      (c)
         Late
        Payments.
        Any
        payments by LICENSEE that are not paid on or before the date such payments
        are
        due under this Agreement shall bear interest, to the extent equal to the
        lesser
        of the maximum permitted by law or five percentage points (5%) above the
        Prime
        Rate of interest as reported in the Wall
        Street Journal
        on the
        date payment is due. 

      

      5.
        REPORTS AND RECORDS.

      

      5.1
        Frequency
        of Reports.

      

      (a) Before
        First Commercial Sale.
        Prior
        to the first commercial sale of any LICENSED PRODUCT or first commercial
        performance of any LICENSED PROCESS, LICENSEE shall deliver semiannual reports
        to LICENSOR, within sixty (60) days after December 31 and after June 30,
        containing information concerning the immediately preceding REPORTING PERIOD,
        as
        further described in Section 5.2, and the future commercial development and
        marketing activities on a client base.

      

      (b) Upon
        First Commercial Sale of a LICENSED PRODUCT or Commercial Performance of
        a
        LICENSED PROCESS.
        LICENSEE shall report to LICENSOR the date of first commercial sale of a
        LICENSED PRODUCT and the date of first commercial performance of a LICENSED
        PROCESS within sixty (60) days of occurrence in each country.

      

      (c) After
        First Commercial Sale.
        After
        the first commercial sale of a LICENSED PRODUCT or first commercial performance
        of a LICENSED PROCESS, LICENSEE shall deliver reports to LICENSOR within
        sixty
        (60) days of the end of each REPORTING PERIOD, containing information concerning
        the immediately preceding REPORTING PERIOD, as further described in
        Section 5.2.

       

      
        
          
          

        

        
          Page
            13
            of 32

          
            

          

        

        
          
          

        

      

       

      

        
          	
                  Exclusive
                    Patent and Know-How Final License Agreement

                	
                  Confidential

                

        

        
 

      

      5.2
         Content
        of Reports and Payments.
        Each
        report delivered by LICENSEE to LICENSOR shall contain at least the following
        information for the immediately preceding REPORTING PERIOD:

      

      (i)
        The
        number of LICENSED PRODUCTS sold, leased, or distributed by LICENSEE, its
        ASSOCIATES, and SUBLICENSEES to independent third parties in each country,
        and,
        if applicable, the number of LICENSED PRODUCTS used by LICENSEE, its ASSOCIATES,
        and SUBLICENSEES in the provision of services in each country;

      

      (ii)
        A
        description of LICENSED PROCESSES performed by LICENSEE, its ASSOCIATES,
        and
        SUBLICENSEES in each country as may be pertinent to a royalty accounting
        hereunder;

      

      (iii)
        The
        gross price charged by LICENSEE, its ASSOCIATES, and SUBLICENSEES for each
        LICENSED PRODUCT and, if applicable, the gross price charged for each LICENSED
        PRODUCT used to provide services in each country; and the gross price charged
        for each LICENSED PROCESS performed by LICENSEE, its ASSOCIATES, and
        SUBLICENSEES in each country;

      

      (iv)
        Calculation of NET SALES for the applicable REPORTING PERIOD in each country,
        including a listing of applicable deductions;

      

      (v)
        Total
        royalty payable on NET SALES in U.S. dollars, together with the exchange
        rates
        used for conversion;

      

      (vi)
        The
        amount of SUBLICENSE INCOME received by LICENSEE from each SUBLICENSEE and
        the
        amount due to LICENSOR from such SUBLICENSE INCOME, including an itemized
        breakdown of the sources of income comprising the SUBLICENSE INCOME;
        and

      

      (vii)
        The
        number of sublicenses entered into for the PATENT RIGHTS, LICENSED PRODUCTS,
        and/or LICENSED PROCESSES.

       

      
        
          
          

        

        
          Page
            14
            of 32

          
            

          

        

        
          
          

        

      

       

      

        
          	
                  Exclusive
                    Patent and Know-How Final License Agreement

                	
                  Confidential

                

        

         

         

      

      If
        no
        amounts are due to LICENSOR for any REPORTING PERIOD, the report shall so
        state
        and give a forecast which amounts are expected.

      

      5.3
        Financial
        Statements.
        On or
        before the ninetieth (90th) day following the close of LICENSEE’s fiscal year,
        LICENSEE shall provide LICENSOR with LICENSEE’s financial statements for the
        preceding fiscal year including, at a minimum, a balance sheet and an income
        statement, certified by LICENSEE’s treasurer or chief financial officer or by an
        independent auditor. 

      

      5.4
        Records.
        LICENSEE shall maintain, and shall cause its ASSOCIATES and SUBLICENSEES
        to
        maintain, complete and accurate records relating to the rights and obligations
        under this Agreement and any amounts payable to LICENSOR in relation to this
        Agreement, which records shall contain sufficient information to permit LICENSOR
        to confirm the accuracy of any reports delivered to LICENSOR and compliance
        in
        other respects with this Agreement. The relevant party shall retain such
        records
        for at least five (5) years following the end of the calendar year to which
        they
        pertain, during which time LICENSOR, or LICENSOR’s appointed agents, shall have
        the right, at LICENSOR’s expense, to inspect such records during normal business
        hours to verify any reports and payments made or compliance in other respects
        under this Agreement. In the event that any audit performed under this Section
        reveals an underpayment in excess of five percent (5%), LICENSEE shall bear
        the
        full cost of such audit and shall remit any amounts due to LICENSOR within
        thirty (30) days of receiving notice thereof from LICENSOR. 

      

      6.
        PATENT PROSECUTION.

      

      6.1
        Responsibility
        for PATENT RIGHTS.
        LICENSOR shall prepare, file, prosecute, and maintain all of the PATENT RIGHTS.
        LICENSEE shall have reasonable opportunities to advise LICENSOR and shall
        cooperate with LICENSOR in such filing, prosecution, and maintenance.
        

       

      
        
          
          

        

        
          Page
            15
            of 32

          
            

          

        

        
          
          

        

      

       

      

        
          	
                  Exclusive
                    Patent and Know-How Final License Agreement

                	
                  Confidential

                

        

         

         

      

      6.2
        International
        (non-United States) Filings.
        Appendix
        B
        is a
        list of countries in which patent applications corresponding to the United
        States patent applications listed in Appendix
        A
        shall be
        filed, prosecuted, and maintained. Appendix
        B
        may be
        amended by mutual agreement of LICENSEE and LICENSOR.

      

      6.3
        Payment
        of Expenses.
        Payment
        of all fees and costs, including attorneys fees, relating to the filing,
        prosecution, and maintenance of the PATENT RIGHTS shall be the responsibility
        of
        LICENSEE after the EFFECTIVE DATE. LICENSEE shall reimburse all amounts due
        pursuant to this Section within thirty (30) days of invoicing; late payments
        shall accrue interest pursuant to Section 4.2(c). In all instances, LICENSOR
        shall pay the fees prescribed for large entities to the United States Patent
        and
        Trademark Office.

      

      7.
        INFRINGEMENT.

      

      7.1
        Notification
        of Infringement.
        Each
        party agrees to provide written notice to the other party promptly after
        becoming aware of any infringement of the PATENT RIGHTS.

      

      7.2
        Right
        to Prosecute Infringements.
        

      

      (a) LICENSEE
        Right to Prosecute.
        So long
        as LICENSEE remains the exclusive licensee of the PATENT RIGHTS in the FIELD
        in
        the TERRITORY, LICENSEE, to the extent permitted by law, shall have the right,
        under its own control and at its own expense, to prosecute any third party
        infringement of the PATENT RIGHTS in the FIELD in the TERRITORY, subject
        to
        Sections 7.4 and 7.5. If required by law, LICENSOR shall permit any action
        under this Section to be brought in its name, including being joined as a
        party-plaintiff, provided that LICENSEE shall hold LICENSOR harmless from,
        and
        indemnify LICENSOR against, any costs, expenses, or liability that LICENSOR
        incurs in connection with such action. 

      Prior
        to
        commencing any such action, LICENSEE shall consult with LICENSOR and shall
        consider the views of LICENSOR regarding the advisability of the proposed
        action
        and its effect on the public interest. LICENSEE shall not enter into any
        settlement, consent judgment, or other voluntary final disposition of any
        infringement action under this Section without the prior written consent
        of
        LICENSOR.

       

      
        
          
          

        

        
          Page
            16
            of 32

          
            

          

        

        
          
          

        

      

       

      

        
          	
                  Exclusive
                    Patent and Know-How Final License Agreement

                	
                  Confidential

                

        

         

         

      

      (b) LICENSOR
        Right to Prosecute.
        In the
        event that LICENSEE is unsuccessful in persuading the alleged infringer to
        desist or fails to have initiated an infringement action within a reasonable
        time after LICENSEE first becomes aware of the basis for such action, LICENSOR
        shall have the right, at its sole discretion, to prosecute such infringement
        under its sole control and at its sole expense, and any recovery obtained
        shall
        belong to LICENSOR.

      

      7.3
        Declaratory
        Judgment Actions.
        In the
        event that a declaratory judgment action is brought against LICENSOR or LICENSEE
        by a third party alleging invalidity, unenforceability, or noninfringement
        of
        the PATENT RIGHTS, LICENSOR, at its option, shall have the right within twenty
        (20) days after commencement of such action to take over the sole defense
        of the
        action at its own expense. If LICENSOR does not exercise this right, LICENSEE
        may take over the sole defense of the action at LICENSEE’s sole expense, subject
        to Sections 7.4 and 7.5.

      

      7.4
        Offsets.
        LICENSEE may offset a total of fifty percent (50%) of any expenses incurred
        under Sections 7.2 and 7.3 against any payments due to LICENSOR under Article
        4,
        provided that in no event shall such payments under Article 4, when aggregated
        with any other offsets and credits allowed under this Agreement, be reduced
        by
        more than fifty percent (50%) in any REPORTING PERIOD.

      

      7.5
        Recovery.
        Any
        recovery obtained in an action brought by LICENSEE under Sections 7.2 or
        7.3 shall be distributed as follows: (i) each party shall be reimbursed for
        any
        expenses excluding attorney fees incurred in the action (including the amount
        of
        any royalty or other payments withheld from LICENSOR as described in Section
        7.4); (ii) as to ordinary damages reduced by any attorney fees and expenses
        in
        (i) above, LICENSEE shall receive an amount equal to its lost profits or
        a
        reasonable royalty on the infringing sales, or whichever measure of damages
        the
        court shall have applied, and LICENSEE shall pay to LICENSOR based upon such
        amount a reasonable approximation of the royalties and other amounts that
        LICENSEE would have paid to LICENSOR if LICENSEE had sold the infringing
        products, processes, and services rather than the infringer; and (iii) as
        to any
        other damages including special or punitive damages, the parties shall share
        equally in any award. 

       

      
        
          
          

        

        
          Page
            17
            of 32

          
            

          

        

        
          
          

        

      

       

      

        
          	
                  Exclusive
                    Patent and Know-How Final License Agreement

                	
                  Confidential

                

        

        
 

      

      7.6
        Cooperation.
        Each
        party agrees to cooperate in any action under this Article which is controlled
        by the other party, provided that the controlling party reimburses the
        cooperating party promptly for any costs and expenses incurred by the
        cooperating party in connection with providing such assistance.

      

      7.7
        Right
        to Sublicense.
        So long
        as LICENSEE remains the exclusive licensee of the PATENT RIGHTS in the FIELD
        in
        the TERRITORY, LICENSEE shall have the sole right to sublicense any alleged
        infringer in the FIELD in the TERRITORY for future use of the PATENT RIGHTS
        in
        accordance with the terms and conditions of this Agreement relating to
        sublicenses. Any up-front fees as part of such sublicense shall be shared
        equally between LICENSEE and LICENSOR; other revenues to LICENSEE pursuant
        to
        such sublicense shall be treated as set forth in Article 4.

      

      8.
        INDEMNIFICATION AND INSURANCE.

      

      8.1
        Indemnification.

      

      (a)
         Indemnity.
        LICENSEE shall indemnify, defend, and hold harmless LICENSOR, the EERC, and
        its
        trustees, officers, faculty, students, employees, and agents and their
        respective successors, heirs, and assigns (the “Indemnitees”), against any
        liability, damage, loss, or expense (including reasonable attorney fees and
        expenses) incurred by or imposed upon any of the Indemnitees in connection
        with
        any claims, suits, actions, demands, or judgments arising out of any theory
        of
        liability (including without limitation actions in the form of tort, warranty,
        or strict liability and regardless of whether such action has any factual
        basis)
        concerning any product, process, or service that is made, used, sold, imported,
        or performed pursuant to any right or license granted under this
        Agreement.

      

      (b)
         Procedures.
        The
        Indemnitees agree to provide LICENSEE with prompt written notice of any claim,
        suit, action, demand, or judgment for which indemnification is sought under
        this
        Agreement. LICENSEE agrees, at its own expense, to provide attorneys reasonably
        acceptable to LICENSOR to defend against any such claim. The Indemnitees
        shall
        cooperate fully with LICENSEE in such defense and will permit LICENSEE to
        conduct and control such defense and the disposition of such claim, suit,
        or
        action (including all decisions relative to litigation, appeal, and settlement);
        provided, however, that any Indemnitee shall have the right to retain its
        own
        counsel, at the expense of LICENSEE, if representation of such Indemnitee
        by the
        counsel retained by LICENSEE would be inappropriate because of actual or
        potential differences in the interests of such Indemnitee and any other party
        represented by such counsel. LICENSEE agrees to keep LICENSOR informed of
        the
        progress in the defense and disposition of such claim and to consult with
        LICENSOR with regard to any proposed settlement.

       

      
        
          
          

        

        
          Page
            18
            of 32

          
            

          

        

        
          
          

        

      

       

      

        
          	
                  Exclusive
                    Patent and Know-How Final License Agreement

                	
                  Confidential

                

        

        
 

      

      8.2
        Insurance.
        LICENSEE shall obtain and carry in full force and effect commercial general
        liability insurance, including product liability and errors and omissions
        insurance which shall protect LICENSEE and Indemnitees with respect to events
        covered by Section 8.1(a) above. Such insurance (i) shall be issued by an
        insurer licensed to practice in the state of North Dakota or an insurer
        preapproved by LICENSOR and the EERC, such approval not to be unreasonably
        withheld; (ii) shall list LICENSOR as an additional insured thereunder; (iii)
        shall be endorsed to include product liability coverage; and (iv) shall require
        thirty (30) days’ written notice to be given to LICENSOR prior to any
        cancellation or material change thereof. The limits of such insurance shall
        not
        be less than One Million Dollars ($1,000,000) per occurrence with an aggregate
        of Three Million Dollars ($3,000,000) for bodily injury including death;
        One
        Million Dollars ($1,000,000) per occurrence with an aggregate of Three Million
        Dollars ($3,000,000) for property damage; and One Million Dollars ($1,000,000)
        per occurrence with an aggregate of Three Million Dollars ($3,000,000) for
        errors and omissions. In the alternative, LICENSEE may self-insure subject
        to
        prior approval of LICENSOR. LICENSEE shall provide LICENSOR with Certificates
        of
        Insurance evidencing compliance with this Section. LICENSEE shall continue
        to
        maintain such insurance or self-insurance after the expiration or termination
        of
        this Agreement during any period in which LICENSEE or any ASSOCIATE or
        SUBLICENSEE continues (i) to make, use, or sell a product that was a LICENSED
        PRODUCT under this Agreement or (ii) to perform a service that was a LICENSED
        PROCESS under this Agreement, and thereafter for a period of five (5) years.
        

       

      
        
          
          

        

        
          Page
            19
            of 32

          
            

          

        

        
          
          

        

      

       

      

        
          	
                  Exclusive
                    Patent and Know-How Final License Agreement

                	
                  Confidential

                

        

         

         

      

      9.
        NO
        REPRESENTATIONS OR WARRANTIES.

      

      EXCEPT
        AS
        MAY OTHERWISE BE EXPRESSLY SET FORTH IN THIS AGREEMENT, LICENSOR OR THE EERC
        MAKES NO REPRESENTATIONS OR WARRANTIES OF ANY KIND CONCERNING THE INTELLECTUAL
        PROPERTY, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION WARRANTIES OF
        MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NONINFRINGEMENT, VALIDITY
        OF
        PATENT RIGHTS CLAIMS, WHETHER ISSUED OR PENDING, AND THE ABSENCE OF LATENT
        OR
        OTHER DEFECTS, WHETHER OR NOT DISCOVERABLE. Specifically, and not to limit
        the
        foregoing, LICENSOR or the EERC make no warranty or representation
        (i) regarding the validity or scope of the PATENT RIGHTS and (ii) that
        the exploitation of the PATENT RIGHTS or any LICENSED PRODUCT or LICENSED
        PROCESS will not infringe any patents or other intellectual property rights
        of
        LICENSOR or of a third party. 

      

      IN
        NO
        EVENT SHALL LICENSOR, THE EERC, ITS TRUSTEES, DIRECTORS, OFFICERS, EMPLOYEES,
        AND ASSOCIATES BE LIABLE FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES OF ANY KIND,
        INCLUDING ECONOMIC DAMAGES OR INJURY TO PROPERTY AND LOST PROFITS, REGARDLESS
        OF
        WHETHER LICENSOR SHALL BE ADVISED, SHALL HAVE OTHER REASON TO KNOW, OR IN
        FACT
        SHALL KNOW OF THE POSSIBILITY OF THE FOREGOING.

      

      10.
        ASSIGNMENT.

      

      This
        Agreement is personal to LICENSEE and no rights or obligations may be assigned
        by LICENSEE without the prior written consent of LICENSOR. LICENSOR shall
        have
        the right to terminate this Agreement immediately upon written notice to
        LICENSEE upon a purchase of a majority of LICENSEE’s outstanding voting
        securities in a single transaction by a third party without LICENSOR’s prior
        written consent. 

       

      
        
          
          

        

        
          Page
            20
            of 32

          
            

          

        

        
          
          

        

      

       

      

        
          	
                  Exclusive
                    Patent and Know-How Final License Agreement

                	
                  Confidential

                

        

        
 

      

      11.
        GENERAL COMPLIANCE WITH LAWS..

      

      11.1
        Compliance
        with Laws.
        LICENSEE shall use reasonable commercial efforts to comply with all commercially
        material local, state, federal, and international laws and regulations relating
        to the development, manufacture, use, and sale of LICENSED PRODUCTS and LICENSED
        PROCESSES. 

      

      11.2
        Export
        Control.
        LICENSEE and its ASSOCIATES and SUBLICENSEES shall comply with all United
        States
        laws and regulations controlling the export of certain commodities and technical
        data, including without limitation all Export Administration Regulations
        of the
        United States Department of Commerce. Among other things, these laws and
        regulations prohibit or require a license for the export of certain types
        of
        commodities and technical data to specified countries. LICENSEE hereby gives
        written assurance that it will comply with, and will cause its ASSOCIATES
        and
        SUBLICENSEES to comply with, all United States export control laws and
        regulations, that it bears sole responsibility for any violation of such
        laws
        and regulations by itself or its ASSOCIATES or SUBLICENSEES, and that it
        will
        indemnify, defend, and hold LICENSOR harmless (in accordance with Section
        8.1)
        for the consequences of any such violation.

      

      11.3
        Nonuse
        of LICENSOR Name.
        LICENSEE and its ASSOCIATES and SUBLICENSEES shall not use the name of “Energy
& Environmental Research Center,” “University of North Dakota,” or any
        variation, adaptation, or abbreviation thereof, or of any of its trustees,
        officers, faculty, students, employees, or agents, or any trademark owned
        by
        LICENSOR, the EERC, or UND, or any terms of this Agreement in any promotional
        material or other public announcement or disclosure without the prior written
        consent of LICENSOR and, where appropriate, UND. The foregoing notwithstanding,
        without the consent of LICENSOR, LICENSEE may state that it is licensed by
        LICENSOR under one or more of the patents and/or patent applications comprising
        the PATENT RIGHTS.

      

      11.4
        Marking
        of LICENSED PRODUCTS.
        To the
        extent commercially feasible and consistent with prevailing business practices,
        LICENSEE shall mark, and shall cause its ASSOCIATES and SUBLICENSEES to mark,
        all LICENSED PRODUCTS that are manufactured or sold under this Agreement
        with
        the number of each issued patent under the PATENT RIGHTS that apply to such
        LICENSED PRODUCT.

       

      
        
          
          

        

        
          Page
            21
            of 32

          
            

          

        

        
          
          

        

      

       

      

        
          	
                  Exclusive
                    Patent and Know-How Final License Agreement

                	
                  Confidential

                

        

        
 

      

      12.
        TERMINATION.

      

      12.1
        Voluntary
        Termination by LICENSEE.
        LICENSEE shall have the right to terminate this Agreement, for any reason,
        (i)
        upon at least six (6) months prior written notice to LICENSOR, such notice
        to
        state the date at least six (6) months in the future upon which termination
        is
        to be effective and (ii) upon payment of all amounts due to LICENSOR through
        such termination effective date. 

      

      12.2
        Cessation
        of Business.
        If
        LICENSEE ceases to carry on its business related to this Agreement, LICENSOR
        shall have the right to terminate this Agreement immediately upon written
        notice
        to LICENSEE.

      

      12.3
        Termination
        for Default.
        

      

      (a) Nonpayment.
        In the
        event LICENSEE fails to pay any amounts due and payable to LICENSOR hereunder
        and fails to make such payments within thirty (30) days after receiving written
        notice of such failure, LICENSOR may terminate this Agreement immediately
        upon
        written notice to LICENSEE. 

      

      (b) Material
        Breach.
        In the
        event LICENSEE commits a material breach of its obligations under this
        Agreement, except for breach as described in Section 12.3(a), and fails to
        cure
        that breach within sixty (60) days after receiving written notice thereof,
        LICENSOR may terminate this Agreement immediately upon written notice to
        LICENSEE. 

       

      12.4
        Effect
        of Termination.
        

      

      (a) Survival.
        The
        following provisions shall survive the expiration or termination of this
        Agreement: Articles 1, 4, 8, 9, 13, and 14 and Sections 2.3 (confidentiality
        of
        TECHNICAL INFORMATION), 2.4 (use of TECHNICAL INFORMATION), 5.2 (obligation
        to
        provide final report and payment), 5.4, 11.1, 11.2, and 12.4. 

       

      
        
          
          

        

        
          Page
            22
            of 32

          
            

          

        

        
          
          

        

      

       

      

        
          	
                  Exclusive
                    Patent and Know-How Final License Agreement

                	
                  Confidential

                

        

        
 

      

      (b) Inventory.
        Upon
        the early termination of this Agreement, LICENSEE and its ASSOCIATES and
        SUBLICENSEES may complete and sell any work in progress and inventory of
        LICENSED PRODUCTS that exist as of the effective date of termination, provided
        that (i) LICENSEE pays LICENSOR the applicable running royalty or other
        amounts due on such sales of LICENSED PRODUCTS in accordance with the terms
        and
        conditions of this Agreement and (ii) LICENSEE and its ASSOCIATES and
        SUBLICENSEES shall complete and sell all work in progress and inventory of
        LICENSED PRODUCTS within six (6) months after the effective date of termination.
        

      

      (c) Pretermination
        Obligations.
        In no
        event shall termination of this Agreement release LICENSEE, ASSOCIATES, or
        SUBLICENSEES from the obligation to pay any amounts that became due on or
        before
        the effective date of termination.

      

      13.
        DISPUTE RESOLUTION.

      

      13.1
        Mandatory
        Procedures.
        The
        parties agree that any dispute arising out of or relating to this Agreement
        shall be resolved solely by means of the procedures set forth in this Article
        and that such procedures constitute legally binding obligations that are
        an
        essential provision of this Agreement. If either party fails to observe the
        procedures of this Article, as may be modified by their written agreement,
        the
        other party may bring an action for specific performance of these procedures
        in
        any court of competent jurisdiction. 

      

      13.2
        Equitable
        Remedies.
        Although the procedures specified in this Article are the sole and exclusive
        procedures for the resolution of disputes arising out of or relating to this
        Agreement, either party may seek a preliminary injunction or other provisional
        equitable relief if, in its reasonable judgment, such action is necessary
        to
        avoid irreparable harm to itself or to preserve its rights under this
        Agreement.

       

      
        
          
          

        

        
          Page
            23
            of 32

          
            

          

        

        
          
          

        

      

       

      

        
          	
                  Exclusive
                    Patent and Know-How Final License Agreement

                	
                  Confidential

                

        

        
 

      

      13.3
        Dispute
        Resolution Procedures.

      

      (a)
         Mediation.
        In the
        event any dispute arising out of or relating to this Agreement remains
        unresolved within sixty (60) days from the date the affected party informed
        the
        other party of such dispute, either party may initiate mediation upon written
        notice to the other party (“Notice Date”), whereupon both parties shall be
        obligated to engage in a mediation proceeding under the then current Center
        for
        Public Resources (“CPR”) Model Procedure for Mediation of Business Disputes
        (www.cpradr.org), except that specific provisions of this Article shall override
        inconsistent provisions of the CPR Model Procedure. The mediator will be
        selected from the CPR Panels of Neutrals. If the parties cannot agree upon
        the
        selection of a mediator within fifteen (15) business days after the Notice
        Date,
        then upon the request of either party, the CPR shall appoint the mediator.
        The
        parties shall attempt to resolve the dispute through mediation until the
        first
        of the following occurs: (i) the parties reach a written settlement, (ii)
        the
        mediator notifies the parties in writing that they have reached an impasse,
        (iii) the parties agree in writing that they have reached an impasse, or
        (iv) the parties have not reached a settlement within sixty (60) days after
        the
        Notice Date.

      

      (b)
         Trial
        Without Jury.
        If the
        parties fail to resolve the dispute through mediation, or if neither party
        elects to initiate mediation, each party shall have the right to pursue any
        other remedies legally available to resolve the dispute, provided, however,
        that
        the parties expressly waive any right to a jury trial in any legal proceeding
        under this Article.

      

      13.4
        Performance
        to Continue.
        Each
        party shall continue to perform its undisputed obligations under this Agreement
        pending final resolution of any dispute arising out of or relating to this
        Agreement; provided, however, that a party may suspend performance of its
        undisputed obligations during any period in which the other party fails or
        refuses to perform its undisputed obligations. Nothing in this Article is
        intended to relieve LICENSEE from its obligation to make undisputed payments
        pursuant to Articles 4 and 6 of this Agreement.

      

      13.5
        Statute
        of Limitations.
        The
        parties agree that all applicable statutes of limitation and time-based defenses
        (such as estoppel and laches) shall be tolled while the procedures set forth
        in
        Sections 13.3(a) are pending. The parties shall cooperate in taking any actions
        necessary to achieve this result.

       

      
        
          
          

        

        
          Page
            24
            of 32

          
            

          

        

        
          
          

        

      

       

      

        
          	
                  Exclusive
                    Patent and Know-How Final License Agreement

                	
                  Confidential

                

        

        
 

      

      14.
        MISCELLANEOUS.

      

      14.1
        Notice.
        Any
        notices required or permitted under this Agreement shall be in writing, shall
        specifically refer to this Agreement, and shall be sent by hand, recognized
        national overnight courier, confirmed facsimile transmission, confirmed
        electronic mail, or registered or certified mail, postage prepaid, return
        receipt requested, to the following addresses or facsimile numbers of the
        parties:

      

      
        	
                If
                  to LICENSOR:

              	
                Energy
                  & Environmental Research Center Foundation

              
	 	
                15
                  North 23rd Street

              
	 	
                Grand
                  Forks, ND 58203

              
	 	
                USA

              
	 	
                Attention:
                  President

              
	 	
                Tel:
                  (701) 777-5000

              
	 	
                Fax:
                  (701) 777-5181 

              
	 	 
	
                If
                  to LICENSEE:

              	
                Advanced
                  Biomass Gasification Technologies, Inc.

              
	 	
                202
                  South Wheeler Street

              
	 	
                Plant
                  City, Florida 33563

              
	 	
                USA

              
	 	
                Attention:
                  President

              
	 	
                Tel:
                  (813) 754-4330

              
	 	
                Fax:
                  (813) 754-2383

              

      

      

      All
        notices under this Agreement shall be deemed effective upon receipt. A party
        may
        change its contact information immediately upon written notice to the other
        party in the manner provided in this Section.

      

      14.2
        Governing
        Law.
        This
        Agreement and all disputes arising out of or related to this Agreement, or
        the
        performance, enforcement, breach or termination hereof, and any remedies
        relating thereto, shall be construed, governed, interpreted, venued, and
        applied
        in accordance with the laws of the state of North Dakota, U.S.A., without
        regard
        to conflict of law principles, except that questions affecting the construction
        and effect of any patent shall be determined by the law of the country in
        which
        the patent shall have been granted.

       

      
        
          
          

        

        
          Page
            25
            of 32

          
            

          

        

        
          
          

        

      

       

      

        
          	
                  Exclusive
                    Patent and Know-How Final License Agreement

                	
                  Confidential

                

        

        
 

      

      14.3
        Force
        Majeure.
        Neither
        party will be responsible for delays resulting from causes beyond the reasonable
        control of such party, including without limitation fire, explosion, flood,
        war,
        strike, terrorism acts, or riot, provided that the nonperforming party uses
        commercially reasonable efforts to avoid or remove such causes of nonperformance
        and continues performance under this Agreement with reasonable dispatch whenever
        such causes are removed.

       

      14.4
        Amendment
        and Waiver.
        This
        Agreement may be amended, supplemented, or otherwise modified only by means
        of a
        written instrument signed by both parties. Any waiver of any rights or failure
        to act in a specific instance shall relate only to such instance and shall
        not
        be construed as an agreement to waive any rights or fail to act in any other
        instance, whether or not similar.

      

      14.5
        Severability.
        In the
        event that any provision of this Agreement shall be held invalid or
        unenforceable for any reason, such invalidity or unenforceability shall not
        affect any other provision of this Agreement, and the parties shall negotiate
        in
        good faith to modify the Agreement to preserve (to the extent possible) their
        original intent. If the parties fail to reach a modified agreement within
        thirty
        (30) days after the relevant provision is held invalid or unenforceable,
        then
        the dispute shall be resolved in accordance with the procedures set forth
        in
        Article 13. While the dispute is pending resolution, this Agreement shall
        be
        construed as if such provision were deleted by agreement of the
        parties.

      

      14.6
        Binding
        Effect.
        This
        Agreement shall be binding upon and inure to the benefit of the parties and
        their respective permitted successors and assigns.

      

      14.7
        Headings.
        All
        headings are for convenience only and shall not affect the meaning of any
        provision of this Agreement.

       

      
        
          
          

        

        
          Page
            26
            of 32

          
            

          

        

        
          
          

        

      

       

      

        
          	
                  Exclusive
                    Patent and Know-How Final License Agreement

                	
                  Confidential

                

        

        
 

      

      14.8
        Entire
        Agreement.
        This
        Agreement constitutes the entire agreement between the parties with respect
        to
        its subject matter and supersedes all prior agreements or understandings
        between
        the parties relating to its subject matter.

      

      IN
        WITNESS WHEREOF, the parties have caused this Agreement to be executed by
        their
        duly authorized representatives. 

      

      The
        EFFECTIVE DATE of this Agreement is May 24, 2006.

      

      

      
        	ENERGY &
                ENVIRONMENTAL	ADVANCED
                BIOMASS
                GASIFICATION
	RESEARCH
                CENTER
                FOUNDATION	TECHNOLOGIES,
                INC.
	 	 
	
                By:
                  /s/
                  John
                  MacFarlane               
                  

              	
                By:
                  /s/
                  Joel
                  Edelson           

              
	
                Name:
                  John
                  MacFarlane              

              	
                Name:
                  Joel
                  Edelson          

              
	
                Title:
                  President                              

              	
                Title:
                  President                  
                  

              

      

       

       

      
        
          
          

        

        
          Page
            27
            of 32

          
            

          

        

        
          
          

        

      

       

      

        
          	
                  Exclusive
                    Patent and Know-How Final License Agreement

                	
                  Confidential

                

        

         

      

       

      APPENDIX
        A

      

      List
        of Patent Applications and Know-How

      

      

      I. United
        States Patents and Applications

      

      a) U.S.
        provisional patent application “Method and Apparatus for Supply of Low-Btu Gas
        to an Engine Generator,” filed on March 9, 2006.

      b) U.S.
        provisional patent application “Wet Solids Removal and Separation System from a
        Gasifier,” filed on March 9, 2006.

      

      II. Know-How

      

      Biomass
        Gasification System based on an Imbert gasifier of up to 10 megawatts thermal
        for the production of producer gas, heat, and electricity as outlined below.
        An
        Imbert gasifier is a closed-top downdraft gasifier where air is drawn in
        through
        nozzles around a throat located beneath a bed of incoming fuel.

      

      In
        addition, any and all inventions, discoveries, computer software, or
        improvements developed under the Cooperative Research Agreement based on
        EERC
        Proposal No. 2006-0179 entitled “Development and Demonstration of
        Microgasification Technology,” by the LICENSEE and/or the EERC to the Biomass
        Gasification System in the FIELD will automatically become part of this
        Agreement under the grant and scope of the License, between the LICENSOR
        and the
        LICENSEE, at no additional cost to LICENSEE. 

       

      
        
          
          

        

        
          Page
            28
            of 32

          
            

          

        

        
          
          

        

      

       

      

        
          	
                  Exclusive
                    Patent and Know-How Final License Agreement

                	
                  Confidential

                

        

         

      

       

      

       

      The
        gasification process is described in Figure 1. The system includes automatic
        fuel feeding for biomass, a gasification reactor, gas cleanup, engine generator,
        and ash removal. Key aspects of the process represent the knowledge gained
        by
        the EERC that enables successful implementation of the process in a commercial
        setting.

      

      	1.  	
              Automated
                Feed, Drying, and Handling of Biomass
                Fuels:

            

      	a.  	
              Platform
                Feeder - The EERC has identified a supplier for a low-cost feeder
                with the
                ability to meter fuel to the gasifier. The design is unique in that
                it can
                handle a wide range of material size (4ft 2x4 cutoffs to sawdust)
                and
                moisture content (60%-0%). The EERC has suggested and implemented
                modifications to the Vendor (Kelly Ryan Equipment Co.), which are
                specific
                for handling wood. The primary changes include a belt-supplied cross
                conveyor versus the standard drag chain and custom dimensions for
                smaller-than-standard production. The changes in dimensions also
                include
                raising the unit to accommodate discharge to an inclined
                conveyor.

            

      	b.  	
              Inclined
                Conveyor - The EERC works specifically with Rapat Corporation to
                supply
                belt conveyors for the process. These units are the most inexpensive
                and
                robust conveyors on the market.

            

      	c.  	
              Lock
                hopper - Specific knowledge regarding the proper application of lock
                hopper design, gate valve design, level detection, and rotary valve
                selection has been developed by the EERC.

            

      	d.  	
              Feed
                System Control - Through implementation, the EERC understands the
                proper
                application of PLC logic for feed system control and lock hopper
                control.
                Although relatively simple to implement by other entities, the EERC
                has a
                specific PLC code that considers all aspects of safety and maintenance.
                The code is developed beyond simple control and can diagnose the
                system
                providing error messages to the user for enhancement of maintenance
                and
                troubleshooting.

            

       

      
        
          
          

        

        
          Page
            29
            of 32

          
            

          

        

        
          
          

        

      

       

      

        
          	
                  Exclusive
                    Patent and Know-How Final License Agreement

                	
                  Confidential

                

        

         

      	2.  	
              Gasifier:

            

      	a.  	
              The
                gasifier is based on commercial units supplied by Ankur Scientific.
                The
                units are downdraft gasifiers referred to as closed-top or Imbert
                design.

            

      	b.  	
              The
                EERC has invented a modification to the gasifier that enables the
                gasifier
                to operate using fine fuels such as sawdust. Previously, the Ankur
                WBG
                models were exclusive to chunky fuels such as cut 2x4 ends or cut
                tree
                limbs. Previously, wood chips or sawdust could not be processed in
                a WBG
                gasifier. The EERC’s invention includes a diverging cone-shaped section
                added to the inside of the hopper section of the gasifier. This section
                of
                the gasifier is located immediately above the air inlet nozzles or
                combustion zone. The inserted cone tapers from a 24” inlet at the top of
                the gasifier and expands downward toward the combustion zone to prevent
                bridging of material inside the cone.

            

      

      	3.  	
              Gas
                Cleaning:

            

      	a.  	
              The
                EERC has proved reliability of the wet scrubbing system through extensive
                testing. The EERC understands how to prevent plugging of the gas
                piping
                from condensation.

            

      

      	4.  	
              Heat
                Exchange:

            

      	a.  	
              The
                application and sizing of a closed-loop cooling tower for cooling
                scrubber
                water is understood. Cooling towers are typically not utilized by
                Ankur.
                

            

      	b.  	
              The
                application of air-fin heat exchange is
                understood.

            

      

      	5.  	
              Process
                Residuals:

            

      	a.  	
              The
                EERC has conceptualized a system for continuous removal of charcoal
                and
                excess water from the system. The system utilizes an automated filter
                and
                continuous discharge system coupled to the gasifier and scrubber.
                Ankur
                Scientific’s char removal system is
                manual.

            

      	b.  	
              The
                EERC has conceptualized options for safe disposal of process residuals
                within North America. The options include 1) discharge to municipal
                sewer
                treatment, 2) biological pretreatment, 3) activated carbon pretreatment,
                and 4) thermal
                oxidation.

            

      	c.  	
              The
                EERC understands through experimental tests the proper application
                of
                pumps, tanks, and filters for successful handling of the mixed-phase
                process residuals.

            

       

      
        
          
          

        

        
          Page
            30
            of 32

          
            

          

        

        
          
          

        

      

      

        
          	
                  Exclusive
                    Patent and Know-How Final License Agreement

                	
                  Confidential

                

        

         

         

      

      	6.  	
              Flare:

            

      	a.  	
              The
                EERC constructs and configures a custom gas
                flare.

            

      

      	7.  	
              Controls:

            

      	a.  	
              The
                EERC has specific knowledge of electrical wiring schematics, hard-wired
                controls, and communication with data acquisition. The EERC can implement
                process control to any computer or hard-wired
                system.

            

      

      	8.  	
              Engine
                Operation:

            

      	a.  	
              The
                EERC has specific experimental knowledge of piston engine and turbine
                operation. 

            

      	b.  	
              The
                EERC has conceptualized a piston engine carburetion system for producer
                gas.

            

      

      	9.  	
              Experimental
                Testing

            

      	a.  	
              The
                EERC has applied continuous gas analysis and gas contaminant sampling
                according to European guidelines. The EERC understand the application
                of
                these performance measures to the
                process.

            

      	b.  	
              The
                EERC has acquired full mass and energy balances for the process and
                understands specific performance
                measures.

            

      

      

      
        
          
          

        

        
          Page
            31
            of 32

          
            

          

        

        
          
          

        

      

      

      

        
          	
                  Exclusive
                    Patent and Know-How Final License Agreement

                	
                  Confidential

                

        

         

      

      

      APPENDIX
        B

      List
        of Countries (excluding United States) for which

      PATENT
        RIGHTS Applications Will Be Filed, Prosecuted, and Maintained

      

      CA,
        MX

       

      
        
          
          

        

        
          Page
            32
            of 32Unassociated Document

    Exhibit
      10.1

     

    FOSTER
      WHEELER LTD. OMNIBUS INCENTIVE PLAN

     

    Director’s
      Restricted Stock Unit Award Agreement

     

    Name
      of
      Participant:  

     

    Date
      of
      Grant:   June
      16,
      2006

     

    Number
      of
      Shares of common stock, $.01 par value: _______________
      (the “Restricted Shares”)

     

    Pursuant
      to the Foster Wheeler Ltd. Omnibus Incentive Plan (the “Plan”), a copy of which
      has been delivered to you, along with a prospectus describing the material
      terms
      of the Plan, and in accordance with the terms and conditions of the Plan and
      your agreement to such additional terms, conditions and restrictions as are
      set
      forth below, you have been granted as of the date set forth above a Restricted
      Stock Unit Award (the “Restricted Stock Unit Award”), meaning the right to
      receive common stock of Foster Wheeler Ltd. (the “Company”), par value of $.01
      per share, on the terms and conditions set forth herein. Capitalized terms
      used
      but not defined in this Restricted Stock Unit Award Agreement (the “Agreement”)
      have the meanings ascribed to them in the Plan.

     

    1  Acceptance
      of Restricted Stock Unit Award.
      Subject
      to the terms and conditions of this Agreement and the Plan (the terms of which
      are incorporated herein by reference) and effective as of the date set forth
      above, the Company hereby grants to you and you hereby accept the grant of
      ________________________________ (_________) Restricted Stock Units (the
“Units”), each Unit representing the right to be issued one share of common
      stock of the Company on the terms and conditions outlined herein.

     

    2  Shares.
      The
“Shares” refer to the Shares of common stock of the Company referenced above to
      be issued upon settlement of the Units, and to all securities received in
      replacement of such Shares, including those received as stock dividends, bonus
      issues, splits, subdivisions or consolidations, all securities received in
      replacement of such Shares in a recapitalization, amalgamation, merger,
      reorganization, exchange or similar transaction, and all new, substituted or
      additional securities or other property to which the Recipient is entitled
      by
      reason of his or her ownership of such Shares.

     

    3  Relation
      of Restricted Stock Unit Award to Prior Agreement(s).
      As an
      express condition to acceptance of this Restricted Stock Unit Award, you agree
      that the only vesting and lapse of forfeiture restriction provisions to govern
      the Restricted Stock Unit Award are as set forth in Section 4 of this Agreement.
      Subject to Section 4(e) immediately below (which governs a Change in Control
      situation), you agree that you will not be entitled to any additional vesting
      or
      lapse of forfeiture restrictions under any service, change of control or other
      agreement or arrangement, written or unwritten, to which you are a party with
      the Company.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    4  Vesting;
      Termination of Restricted Stock Unit Award.

     

    (a) General
      Vesting Rule.
      You
      will be issued the Shares subject to the Units only as you vest in the Units,
      meaning that the Units will be settled in Shares on the day on which you vest
      in
      any portion of the Units (hereinafter referred to as a “Vesting Date”). So long
      as you provide continuous service to the Company or any Affiliate through such
      Vesting Date(s), and subject to the other provisions of this Section 4, the
      Units will vest and your right to receive and retain the Shares will become
      nonforfeitable on September 30, 2006.

     

    (b) Termination
      as a Result of Death or Disability.
      In the
      event of your termination of service as a result of your death or Disability
      (as
      defined in Section 2(q) of the Plan), any unvested Shares under the Unit shall
      immediately become fully vested (and any restriction will lapse in full) as
      of
      the date of such termination for death or Disability. 

     

    (c) Termination
      for Cause.
      In the
      event your service is terminated for Cause (as defined in Section 2(i) of the
      Plan), all unvested Shares under the Unit and all vested Shares under the Unit
      shall expire immediately, be forfeited and considered null and void, and the
      provisions of Section 5 shall control. 

     

    (d) Termination
      --
      General. In the event of your termination of service other than as a result
      of
      your death, Disability (as defined in Section 2(q) of the Plan) or Cause (as
      defined in Section 2(i) of the Plan), the vesting of the Unit shall accelerate
      such that you shall be vested in the Unit as of the date of your termination
      of
      service as to that number of Shares subject to the Unit that equals the product
      of:

     

    (i) the
      total
      number of Shares subject to the Unit, times 

     

    (ii) a
      ratio,
      the numerator of which is the total number of months of service from May 1,
      2006
      to the end of the month immediately preceding the month in which the date of
      your termination of service occurs, and the denominator of which is five (5).
      

     

    (e) Change
      in Control Acceleration.
      In the
      event of a Change in Control (as defined in Section 2(j) of the Plan) which
      closes on a date prior to your termination of service, any unvested Shares
      under
      the Unit shall immediately become fully vested (and any restriction will lapse
      in full), effective as of immediately prior to consummation of the Change in
      Control. Notwithstanding the foregoing, to the extent that a service, change
      in
      control or other agreement or arrangement with the Company or an Affiliate
      provides benefits of greater value upon a Change in Control that those provided
      in this paragraph (e), the rights set forth in such other agreement shall
      supersede the provisions of this paragraph (e). Comparatively, to the extent
      that a service, change in control or other agreement or arrangement with the
      Company or an Affiliate provides benefits of lesser value upon a Change in
      Control that those provided in this paragraph (e), the rights set forth in
      this
      paragraph (e) shall supersede the provisions of such other
      agreement.

     

    (f) Other
      Termination Events.
      Notwithstanding anything to the contrary contained in this Agreement, the Unit
      will terminate and expire immediately upon the occurrence of the circumstances
      set forth in Section 11.2 of the Plan, and the provisions of Section 5 shall
      control.

     

    (g) Forfeiture
      Price.
      In the
      event that any Shares previously issued to you on settlement of the Units are
      required to be forfeited under Section 4(c), then the Company will have the
      right (but not the obligation) to repurchase any or all of such forfeited Shares
      for $0.001 per Share. The Company will have ninety (90) days from the date
      of
      any event giving rise to forfeiture under Section 4(c) within which to effect
      a
      repurchase of any or all of the Shares subject to such forfeiture conditions.
      The Company’s right to repurchase the Shares under this paragraph (g) is
      assignable by the Company, in its sole discretion, to an Affiliate or other
      party to whom such rights can be assigned under the Applicable Laws (as defined
      in Section 2(c) of the Plan).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    5  Forfeiture
      Events.
      In
      addition to the rights available to the Company under Section 4(g) immediately
      above, upon the occurrence of any of the events set forth in Section 11.2 of
      the
      Plan (a “Forfeiture Event”), you, without any further action by the Company or
      you, shall forfeit, as of the first day of any such Forfeiture
      Event:

     

    
      	(a)  	
              all
                right, title and interest to this Unit;

            

    

     

    
      	(b)  	
              any
                Shares subject to the Unit then owned by you; and
                

            

    

     

    
      	(c)  	
              any
                net proceeds received by you pursuant to any sales or transfer of
                any
                Shares previously subject to the Unit within the six (6) month period
                prior to such date of such Forfeiture Event.

            

    

     

    Additionally,
      the Company shall have the right to issue a stop transfer order and other
      appropriate instructions to its transfer agent with respect to this Unit and
      the
      Shares, and the Company further shall be entitled to reimbursement from you
      of
      any fees and expenses (including attorneys’ fees) incurred by or on behalf of
      the Company in enforcing the Company’s rights under this Section 5. By accepting
      this Restricted Stock Unit Award, you hereby consent to a deduction from any
      amounts the Company owes to you from time to time (including amounts owed to
      you
      as compensation as well as any other amounts owed to you by the Company), to
      the
      extent of any amounts that you owe to the Company under this Section 5. Whether
      or not the Company elects to make any set-off in whole or in part, if the
      Company does not recover by means of set-off the full amount you owe to the
      Company, calculated as set forth above, you agree to pay immediately the unpaid
      balance to the Company.

     

    6  Share
      Certificates.
      Share
      certificates (the “Certificate”) evidencing the conversion of Units into Shares
      will be issued only at your request and the Shares will be issued and registered
      in your name as of the Vesting Date (such date being the end of the “Restricted
      Period”) on the register of shareholders of the Company (through its transfer
      agent). If the Shares are to be issued in certificated form, then subject to
      Section 9 of this Agreement, Certificates representing the Shares will be
      delivered to you as soon as practicable after the end of the applicable
      Restricted Period.

     

    7  Changes
      in Company’s Capital Structure.
      Subject
      to any required action by the Company’s Board and stockholders, as may be
      determined to be appropriate and equitable by the Committee, to prevent dilution
      or enlargement of rights, the Committee may:

     

    (a) adjust
      proportionately the number of Shares covered by the Units for any increase
      or
      decrease in the number of issued and outstanding shares of common stock
      resulting from a subdivision or combination of such shares or the payment of
      a
      stock dividend or any other increase or decrease in the number of such
      outstanding shares of common stock of the Company effected without the receipt
      of consideration by the Company; and 

     

    (b) if
      the
      Company is a participating corporation in any merger or consolidation and
      provided the Units are not terminated upon consummation of such merger or
      consolidation, modify such Units to pertain to and apply to the securities
      or
      other property to which a holder of the number of shares subject to the Units
      would have been entitled upon such consummation. 

     

    Notwithstanding
      anything to the contrary, such adjustments by the Committee shall be final,
      binding and conclusive. 

     

    8  Dividends.
      While
      you hold Units, you will not be entitled to receive cash payments equal to
      any
      cash dividends and other distributions paid with respect to a corresponding
      number of Shares.

     

    9  Tax
      Withholding Obligations.
      As a
      condition to receipt of the Units and the Shares, you acknowledge your
      obligation with respect to any tax or similar withholding obligations that
      may
      arise in connection with receipt or vesting of the Units and/or receipt of
      the
      Shares. The Company or its representative will have the right to take such
      action as may be necessary, in the Committee’s discretion, to satisfy the
      obligations outlined in this Section 9. You further agree that the Company
      will
      have the right to deduct or cause to be deducted from your current remuneration
      any federal, state, local, foreign or other taxes, if any, required by law
      to be
      withheld or paid with respect to such event. If you fail to satisfy such
      obligations in this regard, the Company may require that the Shares otherwise
      scheduled to become vested on any given date be forfeited. In addition, you
      agree that the Company will have the right (but not the obligation) to require
      you to tender for cancellation that number of Shares subject to the Unit having
      a Fair Market Value equal to the aggregate amount of the withholding obligation
      and that such tendering for cancellation shall be effected by the Company’s
      repurchasing from you that number of Shares having such aggregate value, which
      amount will be applied against the withholding obligations. You understand
      that
      the Company’s rights to ensure satisfaction of applicable withholding
      obligations with respect to the Unit and the Shares, either through your
      tendering for cancellation or sale of the Shares themselves, or through other
      sources of funds that may be available to you, may require planning on your
      part, in advance of the expected Vesting Date(s) specified in Section 4 above.
      The Company may also, in lieu of or in addition to the foregoing, at its sole
      discretion, require you to deposit with the Company an amount of cash sufficient
      to meet the withholding requirements. The Company will not deliver any of the
      Shares until and unless you have made the deposit required herein or otherwise
      made proper provision for all applicable tax and similar withholding
      obligations.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    10  Tax
      Consequences.
      Below
      is a brief summary as of the date of this Unit of certain United States federal
      tax consequences of the award of the Restricted Stock Unit Award and disposition
      of the Shares under the laws in effect as of the date of grant. THIS SUMMARY
      IS
      INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE. PARTICIPANT
      SHOULD CONSULT A TAX ADVISER BEFORE EXERCISING THIS RESTRICTED STOCK UNIT AWARD
      OR DISPOSING OF THE SHARES. There may be a regular federal (and state) income
      tax liability when the Units vest on the Vesting Date(s). You will be treated
      as
      having received compensation income (taxable at ordinary income tax rates)
      equal
      to the current Fair Market Value of the Shares on the date of vesting (i.e.,
      when the forfeiture provisions lapse). If Shares issued upon vesting of this
      Restricted Stock Unit Award are held for at least one year, any gain realized
      on
      disposition of those Shares will be treated as long-term capital gain for
      federal income tax purposes. You are obligated as a condition of receiving
      this
      Restricted Stock Unit Award to satisfy any applicable withholding obligations
      that apply thereto.

     

    11  Effect
      of Agreement.
      You
      acknowledge receipt of a copy of the Plan and represent that you are familiar
      with the terms and provisions thereof (and have had an opportunity to consult
      counsel regarding the Unit terms), and hereby accept this Restricted Stock
      Unit
      Award and agree to be bound by its contractual terms as set forth herein and
      in
      the Plan. You hereby agree to accept as binding, conclusive and final all
      decisions and interpretations of the Committee regarding any questions relating
      to the Units. In the event of a conflict between the terms and provisions of
      the
      Plan and the terms and provisions of this Agreement, the Plan terms and
      provisions shall prevail. Subject to Section 4(e) of this Agreement, this
      Agreement and the Plan constitute the entire agreement between you and the
      Company on the subject matter hereof and supersedes all proposals, written
      or
      oral, and all other communications between the parties relating to such subject
      matter.

     

    12  Restriction
      on Transferability.
      Until
      settlement of the Units upon issuance to you of the Shares subject thereto,
      the
      Units may not be sold, transferred, pledged, assigned or otherwise alienated
      at
      any time. Any attempt to do so contrary to the provisions hereof shall be null
      and void. Notwithstanding the above and subject to Section 14 below,
      distribution can be made pursuant to will, the laws of descent and distribution,
      intra-family transfer instruments or to an inter vivos trust.

     

    13  Rights
      as Shareholder.
      You
      will have no voting or any other rights as a shareholder of the Company with
      respect to the Units prior to the date on which you are issued the Shares
      subject thereto. Upon settlement of the Units into Shares, you will obtain
      full
      voting and other rights as a shareholder of the Company.

     

    14  Designation
      of Beneficiaries.
      You
      may, in accordance with procedures established by the Committee, designate
      one
      or more beneficiaries to receive all or part of any Shares to be distributed
      to
      you hereunder on settlement of Units in the case of your death, and you may
      change or revoke such designation at any time. In the event of your death,
      any
      Shares distributable hereunder that are subject to such a designation (to the
      extent such a designation is enforceable under the Applicable Laws (as defined
      in Section 2(c) of the Plan)) will be distributed to such beneficiary or
      beneficiaries in accordance with this Agreement. Any other Shares distributable
      will be distributed to your estate. If there is any question as to the legal
      right of any beneficiary to receive a distribution hereunder, the amount in
      question will be paid over to your estate, in which event neither the Company
      nor any affiliate of the Company will have any further liability to anyone
      with
      respect to such amount.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    15  Amendment
      of Restricted Stock Unit Award.
      The
      Committee may at any time amend, alter, suspend or discontinue the Plan, but
      no
      amendment, alteration, suspension or discontinuation (other than as explicitly
      permitted under the Plan) shall be made that would adversely affect your rights
      under this Agreement without your consent.

     

    16  Governing
      Law.
      The
      laws of the state of New Jersey, without giving effect to principles of
      conflicts of law, will apply to the Plan, this Restricted Stock Unit Award
      and
      this Agreement. The Company agrees, and you agree as a condition to acceptance
      of the Restricted Stock Unit Award, to submit to the jurisdiction of the courts
      located in the jurisdiction in which you provide, or most recently provided,
      your primary services to the Company.

     

    17  Provisions
      Applicable to Non-US Persons.
      This
      Section 17 shall apply to you if you are resident in and/or subject to the
      laws
      of a country other than the United States at the time of grant of the Restricted
      Stock Unit Award and during the period in which you hold this Restricted Stock
      Unit Award or the Shares issued upon settlement thereof:

     

    (a) Data
      Protection.
      You
      acknowledge and agree (by executing this Agreement) to the collection, use,
      processing and transfer of certain personal data as described in this paragraph
      (a). You understand that you are not obliged to consent to such collection,
      use,
      processing and transfer of personal data. However, you understand your failure
      to provide such consent may affect your ability to participate in the Plan.
      You
      understand that the Company may hold certain personal information about you,
      including your name, salary, nationality, job title, position evaluation rating
      along with details of all past awards and current awards outstanding under
      the
      Plan, for the purpose of managing and administering the Plan (the “Data”). The
      Company, or its Affiliates, will transfer Data amongst themselves as necessary
      for the purpose of implementation, administration and management of the Plan.
      The Company and/or any of it Affiliates may further transfer Data to any third
      parties assisting the Company in the implementation, administration and
      management of the Plan. These various recipients of Data may be located
      elsewhere throughout the world. You authorize these various recipients of Data
      to receive, possess, use, retain and transfer the Data, in electronic or other
      form, for the purposes of implementing, administering and managing the Plan,
      including any required transfer of such Data as may be required for the
      subsequent holding of Shares subject to the Unit on your behalf by a broker
      or
      other third party with whom you may elect to deposit any Shares subject to
      the
      Unit acquired pursuant to the Plan. You understand that you may, at any time,
      review Data with respect to you and require any necessary amendments to such
      Data. You also understand that you may withdraw the consents to use Data herein
      by notifying the Company in writing; however, you understand that by withdrawing
      your consent to use Data, that you may affect your ability to participate in
      the
      Plan.

     

    (b) Service
      Matters.
      This
      Restricted Stock Unit Award does not form part of your entitlement to
      remuneration or benefits in terms of your services to the Company. Your terms
      and conditions of service are not affected or changed in any way by this
      Restricted Stock Unit Award or by the terms of the Plan or this Agreement.
      No
      provision of this Agreement or of the Restricted Stock Unit Award granted
      hereunder shall give you any right to continue in the service of the Company
      or
      any Affiliate, create any inference as to the length of your service, affect
      the
      right of the Company or any Affiliate to terminate your service, with or without
      Cause (as defined in Section 2(i) of the Plan), or give you any right to
      participate in any employee welfare or benefit plan or other program (other
      than
      the Plan) of the Company or any Affiliate. You acknowledge and agree (by
      executing this Agreement) that the granting of the Restricted Stock Unit Award
      under this Agreement is made on a fully discretionary basis by the Company
      and
      that this Agreement does not lead to a vested right to further awards in the
      future. Further, the Restricted Stock Unit Award set forth in this Agreement
      constitutes a non-recurrent benefit and the terms of this Agreement are only
      applicable to the Units awarded pursuant to this Agreement.

     

    (c) Tax
      Matters.

     

    (i) Applicable
      if you are not a US person (including as to UK persons):
      You
      hereby agree to indemnify and keep indemnified the Company and any Affiliate
      from and against any liability for, or obligation to pay, income tax and
      employer’s and/or employee’s national insurance or social security contributions
      arising on the grant of the Restricted Stock Unit Award, vesting of the
      Restricted Stock Unit Award or the issuance of the Shares upon
      settlement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    (ii) Applicable
      if you are a UK person:
      Where
      any obligation to pay, income tax or employee’s national insurance contributions
      or social security contributions (any such obligation or contribution, a “Tax
      Liability”) arises, the Company or any Affiliate may recover from you an amount
      of money sufficient to meet the Tax Liability by any of the following
      arrangements: 

     

    
      	(A)  	
              deduction
                from salary or other payments due to you; or

            

    

     

    
      	(B)  	
              withholding
                from the issuance to you of that number of Shares (otherwise to be
                acquired by you on exercise of the Units) whose aggregate Fair Market
                Value on the date of exercise is, so far as possible, equal to but
                neither
                less than nor more than the amount of Tax
                Liability.

            

    

     

    If
      the
      Participant is unable to satisfy his or her Tax Liability pursuant to either
      clause (A) or clause (B) above, the Company may additionally cause the
      forfeiture of any Shares otherwise scheduled to become vested under the
      Restricted Stock Unit Award on a given date to avoid imposition of any Tax
      Liability to the Participant. 

     

    18  Severability.
      In the
      event that any provision of this Agreement shall be held illegal or invalid
      for
      any reason, the illegality or invalidity shall not affect the remaining parts
      of
      this Agreement, and this Agreement shall be construed and enforced as if the
      illegal or invalid provision had not been included.

     

    19  Waiver;
      Cumulative Rights.
      The
      failure or delay of either party to require performance by the other party
      of
      any provision hereof shall not affect its right to require performance of such
      provision unless and until such performance has been waived in writing. Each
      and
      every right hereunder is cumulative and may be exercised in part or in whole
      from time to time.

     

    20  Representations.
      As a
      condition to your receipt of this Restricted Stock Unit Award and the Shares
      to
      be issued on settlement thereof, you represent and warrant the following:

     

    (a) You
      are
      aware of the Company’s business affairs and financial condition and have
      acquired sufficient information about the Company to reach an informed and
      knowledgeable decision to accept this Restricted Stock Unit Award; 

     

    (b) You
      are
      acquiring the Restricted Stock Unit Award and the Shares subject thereto for
      investment only for your own account, and not with a view, or for resale in
      connection with, any “distribution” thereof under Applicable Law (as defined in
      Section 2(c) of the Plan); 

     

    (c) You
      understand that neither Restricted Stock Unit Awards nor the Shares have been
      registered in all State jurisdictions within the United States, and that the
      exemption(s) from registration relied upon may depend upon your investment
      intent as set forth above; 

     

    (d) You
      further understand that prior to any resale by you of the Shares acquired upon
      exercise of this Unit without registration of such resale in relevant State
      jurisdictions, the Company may require you to furnish the Company with an
      opinion of counsel acceptable to the Company that you may sell or transfer
      such
      Shares pursuant to an available exemption under Applicable Law; 

     

    (e) You
      understand that the Company is under no obligation to assist you in this process
      by registering the Shares in any jurisdiction or by ensuring that an exemption
      from registration is available; and 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    (f) You
      further agree that as a condition to settlement of this Unit, the Company may
      require you to furnish contemporaneously dated representations similar to those
      set forth in this Section 20.

     

    21  Compliance
      with Code §409A.
      For
      avoidance of doubt, and anything else contained herein to the contrary
      notwithstanding, if the Company determines in good faith that the settlement
      of
      Units pursuant to this Agreement constitutes deferred compensation subject
      to
§409A of the Internal Revenue Code and the regulations and other guidance issued
      pursuant thereto (“§409A”) then the following shall apply:

     

    (a) Settlement
      of Units shall in no event occur later than two and one-half months following
      the end of the year in which the Vesting Date occurs;

     

    (b) Settlement
      of Units shall not be accelerated to a time earlier than the time at which
      the
      Units would otherwise have been settled pursuant to this Agreement, whether
      by
      amendment of this Agreement or otherwise, unless such acceleration is permitted
      by §409A; and 

     

    (c) If
      any
      other provision of this Agreement or the Plan relating to the time or manner
      of
      settlement of Units would otherwise cause any amount to be subject to tax under
      §409A, the Company shall have the authority to revise the Agreement to the
      minimum extent, as determined by the Company in good faith, necessary to satisfy
      the requirements of §409A; provided, however, that nothing contained herein
      shall be construed to impose on the Company any liability for any tax imposed
      on
      you by §409A.

     

    By
      your
      signature below, you indicate your acceptance of the terms of this Restricted
      Stock Unit Award, and acknowledge that you have received copies of the Plan
      and
      the Prospectus, in each case as currently in effect. By signing this Agreement,
      you acknowledge that your personal information regarding participation in the
      Plan and information necessary to determine and pay, if applicable, benefits
      under the Plan must be shared with other entities, including companies related
      to the Company and persons responsible for certain acts in the administration
      of
      the Plan. By signing this Agreement, you consent to such transmission of
      personal data as the Company believes is appropriate to administer the
      Plan.

    

      
        	 	
                Accepted
                  and Agreed to by Participant:

              	 
	 	 	
                Participant

              
	 	 	 
	 	
                Acknowledged
                  and Agreed to by Company:

              	
                 

              
	 	 	
                Raymond
                  J. Milchovich

                Chairman,
                  President & CEO

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}]]