CONTRIBUTION,ASSIGNMENT AND ASSUMPTION AGREEMENT by and among THE DOW CHEMICAL COMPANY, DOW GLOBAL TECHNOLOGIES INC. and PFENEX INC. NOVEMBER 30, 2009

EX-10.11 15 d576774dex1011.htm EX-10.11 EX-10.11

Exhibit 10.11

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CONTRIBUTION, ASSIGNMENT AND ASSUMPTION AGREEMENT

by and among

THE DOW CHEMICAL COMPANY,

DOW GLOBAL TECHNOLOGIES INC.

and

PFENEX INC.

NOVEMBER 30, 2009


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CONTRIBUTION, ASSIGNMENT AND ASSUMPTION AGREEMENT

THIS CONTRIBUTION, ASSIGNMENT AND ASSUMPTION AGREEMENT (this “Agreement”) is effective as of this 30th day of November 2009 (the “Effective Date”) by and among The Dow Chemical Company, a Delaware corporation (“TDCC”), Dow Global Technologies Inc., a Delaware corporation (“DGTI”) and Pfenex Inc., a Delaware corporation (the “Company”). TDCC, DGTI and the Company are sometimes referred to herein individually as a “Party” and collectively as the “Parties.” TDCC and DGTI are sometimes referred to herein as “Dow.”

RECITALS

WHEREAS, the Company is a newly formed corporation, with no assets or liabilities as of the date hereof;

WHEREAS, TDCC engages in the Business (as defined below), among other businesses, and owns certain of the Transferred Assets (as defined below) relating to and used in the Business;

WHEREAS, DGTI owns certain intellectual property rights to the technologies relating to and used in the Business;

WHEREAS, Dow desires to contribute, transfer and assign to the Company the Transferred Assets, on the terms and conditions herein; and

WHEREAS, the Company desires to accept from Dow the Transferred Assets, on the terms and conditions herein.

NOW, THEREFORE, in consideration of the foregoing recitals and the mutual covenants and promises contained herein, the adequacy and sufficiency of which are hereby acknowledged, the Parties agree as follows:

ARTICLE 1

DEFINITIONS

1.1 “Affiliate” means, with respect to any Person, any other Person that directly or indirectly controls or is controlled by or under common control with such Person. For the purposes of this definition, “control,” when used with respect to any Person, means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise; and the terms of “affiliated,” “controlling” and “controlled” have meanings correlative to the foregoing.

1.2 “Books and Records” shall mean all papers and records (in any format including paper or electronic) kept or maintained including any and all laboratory notebooks, invention disclosures, purchasing and sales records, all data and communications relating to ongoing business development activities, preclinical and clinical data, all Regulatory Documents, vendor lists, product documentation, product specifications, marketing documents and the like, in each case pertaining solely to the Transferred Assets.


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1.3 “Business” shall mean the biopharmaceutical business and related activities conducted by TDCC and its Affiliates since January 1, 2009, primarily at their base of operations in San Diego, California relating to the Pfenex Expression Technology and/or the VLP Technology.

1.4 “CERCLA” means the federal Comprehensive Environmental Response, Compensation and Liability Act of 1980.

1.5 “Code” shall mean the Internal Revenue Code of 1986, as amended.

1.6 “Contract” shall mean a written or oral contract, agreement, instrument, other understanding or commitment.

1.7 “Environmental Laws” means any Law relating to the environment, occupational health and safety, Materials of Environmental Concern or natural resources including, without limitation, any Law pertaining to: (a) the presence of or the treatment, storage, disposal, generation, transportation, handling, distribution, manufacture, processing, use, import, export, labeling, recycling, registration, investigation or remediation of Materials of Environmental Concern; (b) air, water and noise pollution; (c) groundwater and soil contamination; and (d) the release or threatened release into the environment, the workplace or other areas of Materials of Environmental Concern, including emissions, discharges, injections, spills, escapes or dumping of Materials of Environmental Concern. As used above, the term “release” shall have the meaning set forth in CERCLA.

1.8 “Governmental Authority” means any nation or government, any state or other political subdivision thereof, any agency, authority, instrumentality, regulatory body, court, administrative tribunal, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government.

1.9 “Knowledge” or “knowledge” of Dow means and includes the actual knowledge of Pat Lucy, Dennis Merens, Charles Squires and Henry Talbot, and shall include all information each such person knows or should have known after due inquiry of those individuals that would reasonably be expected to have knowledge of the matter in question.

1.10 “Law” means, collectively, all applicable international, foreign, federal, state, county, regional and local statutes, treaties, rules, regulations, ordinances, codes, orders, decrees, judgments and administrative or judicial precedents or authorities, including the interpretation or administration thereof by any Governmental Authority charged with the enforcement, interpretation or administration thereof, in each case having the force of law.

1.11 “Liability” or “Liabilities” shall mean liabilities of any kind or nature, primary or secondary, direct or indirect, absolute or contingent, known or unknown, including but not limited to any debts, commitments, obligations, liabilities for claims in tort or contract (including unripened liabilities due to past actions or sales), and all costs and expenses (including reasonable attorneys’ fees), incurred in connection with the defense of any such claims.

1.12 “Lien” means (a) any encumbrance, mortgage, pledge, lien, charge or other security interest of any kind upon any property or assets of any character, or upon the income or profits therefrom; (b) any acquisition of or agreement to have an option to acquire any property

 

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or assets upon conditional sale or other title retention agreement, device or arrangement (including a capitalized lease); or (c) any sale, assignment, pledge or other transfer for security of any accounts, general intangibles or chattel paper, with or without recourse.

1.13 “Material Adverse Effect on the Business” means any change, effect or circumstance that is materially adverse to the Transferred Assets, financial condition or results of operations of the Business, taken as a whole.

1.14 “Materials of Environmental Concern” means any: pollutants, contaminants or hazardous substances (as such terms are defined under CERCLA), pesticides (as such term is defined under the Federal Insecticide, Fungicide and Rodenticide Act), solid wastes and hazardous wastes (as such terms are defined under the Resource Conservation and Recovery Act), chemicals, other hazardous, radioactive or toxic materials, oil, petroleum and petroleum products (and fractions thereof), or any other material (or article containing such material) listed, subject to regulation or forming the basis of liability under any Environmental Law (including, without limitation, asbestos in any form, urea formaldehyde, perchlorate or polychlorinated biphenyls).

1.15 “Person” shall mean any individual, entity or Governmental Authority.

1.16 “Permits” means all licenses, permits, registrations, consents, authorizations and other approvals from all Governmental Authorities.

1.17 “Permitted Liens” means the Liens affecting the Transferred Assets listed on Schedule 1.17.

1.18 “Pfenex Expression Technology” shall have the meaning ascribed to such term in the Technology Assignment Agreement.

1.19 “Post-Closing Taxes” shall mean any and all Taxes relating to or arising from the Transferred Assets that (i) are attributable to any taxable period (or any portion thereof) beginning on or after the Effective Date and the portion of any Tax period that includes, but does not begin on, the Effective Date beginning on and including the Effective Date or (ii) are related to an event or transaction occurring on or after the Effective Date.

1.20 “Pre-Closing Taxes” shall mean any and all Taxes relating to or arising from the Transferred Assets or the Company that (i) are attributable to any taxable period (or any portion thereof) ending on or prior to the Effective Date and the portion of any Tax period that includes, but does not end on, the Effective Date ending on the Effective Date or (ii) are related to an event or transaction occurring prior to the Effective Date.

1.21 “Proceeding” means any (a) action, suit, proceeding, claim or arbitration against or involving Dow’s operation of the Business or the Business by or before any Governmental Authority or before any arbitrator; and (b) any investigation by a Governmental Authority of which Dow has Knowledge.

1.22 “Regulatory Documents” shall mean any and all regulatory submissions (whether completed or in process) to any Governmental Authority anywhere in the world submitted by or on behalf of Dow relating to the Business (including any product developed in

 

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connection therewith), including all annual reports, adverse event reports, and other adverse event submission tracking information, and amendments and supplements to any of the foregoing.

1.23 “Sublease” shall mean the Sublease Agreement between TDCC and the Company, in the form attached hereto as Exhibit A.

1.24 “Tax” (and, with correlative meaning, “Taxes”) shall mean (i) any federal, state, local or foreign income, alternative or add on minimum income, ad valorem, business license, documentary, employment, environmental, excise, franchise, gains, gross income, gross receipts, license, occupation, payroll, personal property, premium, profits, property transfer, real property, recording, sales, services, severance, social security, stamp, transfer, unemployment insurance, use, value added, windfall profit or withholding tax, custom, duty, levy or other governmental assessment, charge or fee in the nature of a tax (whether payable directly or by withholding), (ii) any liability for Taxes of any Person under Treasury Regulations Section 1.1502-6 (or any similar provision of state, local or foreign law), as a transferee or successor, by Contract or otherwise and (iii) any estimated Tax, interest, fines, penalties or additions to Tax with respect to amounts referred to in clauses (i) or (ii) hereof.

1.25 “Tax Authority” shall mean any Governmental Authority responsible for the imposition, assessment or collection of any Tax (domestic or foreign).

1.26 “Tax Returns” shall mean all reports, estimates, declarations of estimated Tax, information statements and returns relating to Taxes and any schedules attached to or amendments of any of the foregoing.

1.27 “Transaction Agreements” means the Technology Assignment Agreement, the Technology Licensing Agreement, the Grant-Back License Agreement, the Sublease and the Transition Services Agreement.

1.28 “Transition Services Agreement” shall mean the Transition Services Agreement between TDCC and the Company, in the form attached hereto as Exhibit B.

1.29 “VLP Technology” shall have the meaning ascribed to such term in the Technology Assignment Agreement.

ARTICLE 2

CONTRIBUTION OF ASSETS

Subject to the terms and conditions of this Agreement, Dow hereby contributes, transfers, assigns, conveys and delivers, as specified below, to the Company, the assets described in Sections 2.1 through 2.5 of this Article 2 (collectively, the “Transferred Assets”), and the Company hereby acquires from Dow all the rights and assumes all obligations and responsibilities associated therewith as stated in this Agreement. Notwithstanding any of the foregoing or Sections 2.1 through 2.5 below, those assets of Dow not specifically referenced in Sections 2.1 through 2.5 below shall remain the assets of Dow.

2.1 Intellectual Property Rights. Concurrent with the execution of this Agreement, the Parties are entering into a Technology Assignment Agreement, in the form attached hereto as

 

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Exhibit C (the “Technology Assignment Agreement”), and a Technology Licensing Agreement, in the form attached hereto as Exhibit D (the “Technology Licensing Agreement”), pursuant to which Dow is assigning and licensing to the Company certain intellectual property rights set forth therein. The Company and Dow are also entering into a Grant-Back and Technology License Agreement, in the form attached hereto as Exhibit E (the “Grant-Back License Agreement”), pursuant to which Company is licensing to Dow certain intellectual property rights set forth therein.

2.2 Fixed Assets. Dow hereby contributes, transfers, assigns, conveys and delivers to the Company, all of its rights, title and interest in and to the fixed assets listed in Schedule 2.2 (the “Fixed Assets”).

2.3 Business Contracts. Dow hereby assigns to the Company, and the Company hereby assumes, subject to Section 3.1, all rights and obligations of Dow under the Contracts listed in Schedule 2.3 (collectively, the “Business Contracts”).

2.4 Books and Records. Dow hereby assigns to the Company the Books and Records that are used solely in the Business and are in the care or custody of or owned or otherwise transferable by Dow as of the Effective Date (collectively, the “Transferred Books and Records”).

2.5 Rights to Sue. Dow hereby assigns any and all right to recover past, present and future damages for the breach, infringement or misappropriation, as the case may be, relating to, arising from, or in connection with, the Transferred Assets set forth in Section 2.1; except to the extent Dow may exercise such rights with respect to a counterclaim that can be made against a party to whom Dow has an obligation for an Excluded Liability pursuant to the provisions set forth in Section 5.03 of the Grant Back License Agreement.

2.6 Other Assets. Dow hereby contributes, transfers, assigns, conveys and delivers to the Company, all of its rights, title and interest in and to all other assets and properties that are not expressly identified in Sections 2.1 to 2.5, other than the computers, telephones and any related or similar equipment, located at 5501 Oberlin Drive, San Diego, California, 92121, and used in the Business as of the Effective Date (the “Other Assets”).

ARTICLE 3

LIABILITIES

3.1 Assumed Liabilities. The Company hereby assumes and agrees to be solely liable for and obligated to discharge and/or perform all of the Liabilities of Dow with respect to the ownership, possession, operation and use of the Transferred Assets to the extent arising on or after the Effective Date, including without limitation, any Post-Closing Taxes (collectively, the “Assumed Liabilities”). The Company shall not assume any Liabilities of Dow pursuant hereto, other than the Assumed Liabilities.

3.2 Definition of Excluded Liabilities. Except for the Assumed Liabilities, the Company does not assume and is not assuming, any debt, liability, duty or other obligation (of any kind) of Dow, whether known or unknown, fixed or contingent, and regardless of when such liabilities or obligations may arise or may have arisen or when asserted, including any Pre-Closing Taxes which are outstanding or unpaid as of the Effective Date (collectively, the

 

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Excluded Liabilities”), but excluding any (a) Transfer Taxes or (b) liabilities, or obligations related to the Transferred Assets which are typically assessed against a purchaser of assets), and Dow shall remain responsible for the Excluded Liabilities.

ARTICLE 4

CLOSING

4.1 Closing. The closing of the purchase and sale of the Transferred Assets and of the transactions contemplated by this Agreement (the “Closing”) shall be held at the Company’s offices at 5451 Oberlin Drive, San Diego, California 92121, at 11:59 p.m. PST on November 30, 2009, or at such other time or place as may be agreed by the Parties (such date, the “Closing Date”).

(a) At the Closing, the Company shall deliver, in each case to the extent applicable duly executed by the Company:

(i) to each of TDCC and DGTI, 11,340,000 and 2,660,000 shares, respectively, of Series A-1 Participating Preferred Stock of the Company (the “Shares”), as consideration in part for Dow’s contribution of Transferred Assets to the Company;

(ii) the Technology Assignment Agreement;

(iii) the Technology Licensing Agreement;

(iv) the Grant-Back License Agreement;

(v) the Sublease; and

(vi) the Transition Services Agreement.

(b) At the Closing, TDCC and DGTI shall deliver or cause to be delivered to the Company, in each case to the extent applicable duly executed by the TDCC or DGTI, as applicable:

(i) the Technology Assignment Agreement;

(ii) the Technology Licensing Agreement;

(iii) the Grant-Back License Agreement;

(iv) the Sublease; and

(v) the Transition Services Agreement.

(c) At the Closing, title to the Transferred Assets shall be delivered to the Company free and clear of all Liens, except for Permitted Liens.

4.2 Tax Treatment. Each of the Parties agrees that the transactions contemplated by this Agreement shall be treated, pursuant to Section 351 of the Code, as a tax-free contribution of the Transferred Assets by Dow to the Company in exchange for the issuance of the Shares. None of the Parties shall take a position on any Tax Return or attachment thereto, before any Tax

 

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Authority, in any judicial Proceeding, or for any other Tax purpose that is in any way inconsistent with such Tax treatment, unless specifically required to do so pursuant to a “determination” within the meaning of Section 1313(a) of the Code or an analogous provision of Law. Each party has consulted with its own Tax counsel regarding the Tax consequences of the transactions contemplated by this Agreement and no party makes any representations to any other party regarding such Tax consequences. The Shares issued pursuant to this Agreement will be the first issuance of capital stock of the Company.

4.3 Transfer Taxes. The Company shall be responsible for and shall pay all sales, use, transfer, stamp duty, recording, value added, and other similar Taxes, including all bulk sales taxes, in each case including interest, penalties or additions attributable thereto (the “Transfer Taxes”), arising out of or in connection with the transactions contemplated by this Agreement. The Parties shall cooperate with each other in good faith in the preparation and filing of any Tax Returns relating to any Transfer Taxes.

4.4 Assignability and Consents. Notwithstanding anything to the contrary contained in this Agreement, if the conveyance, assignment, transfer or delivery or attempted conveyance, assignment, transfer or delivery to the Company of any Transferred Asset is (a) prohibited by any applicable law, or (b) would require any authorizations, approvals, consents or waivers from a third party and such authorizations, approvals, consents or waivers have not been obtained prior to the Closing Date (each, a “Non-Assignable Asset”), in either case, the Closing shall proceed, but the Closing shall not constitute the conveyance, assignment, transfer or delivery of such Non-Assignable Asset, and this Agreement shall not constitute a conveyance, assignment, transfer or delivery of such Non-Assignable Asset unless and until such authorization, approval, consent or waiver is obtained. After the Closing, each of TDCC and DGTI, as the case may be, shall continue to use commercially reasonable efforts to obtain any such authorization, approval, consent or waiver as promptly as practicable for the Non-Assignable Assets as set forth on Schedule 4.4.(a), except with respect to those Non-Assignable Assets the Parties have agreed would not be included in the Transferred Assets as set forth on Schedule 4.4(b). Once authorization, approval or waiver of or consent for the conveyance, assignment, transfer or delivery of any such Non-Assignable Asset is obtained, each of TDCC and DGTI, as the case may be, shall convey, assign, transfer and deliver such Non-Assignable Asset to the Company at no additional cost to the Company. Notwithstanding anything to the contrary contained in this Agreement, each of TDCC, DGTI and the Company, agree to cooperate to effect as close as possible, the rights, benefits and obligations of any Business Contract that is a Non-Assignable Asset as if it were assigned at Closing, including, without limitation, the enforcement, for the benefit of the Company, of any and all rights of TDCC or DGTI, as the case may be, against such other party thereto arising out of the contract, or cancellation thereof, by such other party or otherwise. To the extent that such Business Contract has to be modified, amended or terminated in order to facilitate the assignment or transfer of the Business to the Company, each of TDCC, DGTI and the Company, agree to take such actions and execute such documents as may reasonably be requested in writing to effect the same.

4.5 Taking of Necessary Action; Further Action. From time to time after the Closing Date or the Closing, at the request of either Party, the Parties hereto shall execute and deliver such other instruments of sale, transfer, conveyance, assignment and confirmation and take such action as may be reasonably necessary to transfer, convey and assign to the Company, and to

 

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confirm the Company’s title to or interest in the Transferred Assets, to put the Company in actual possession and operating control thereof and to assist the Company in exercising all rights with respect thereto. In addition, if, following the transfer of the Transferred Assets, the Company identifies specific items within the Transferred Assets that were not transferred to the Company, TDCC and/or DGTI, as applicable, shall use all reasonable efforts to transfer such items to the Company.

Notwithstanding any provision herein, Sections 4.4 and 4.5 shall continue in full force and effect after the Closing until their expiration in accordance with Section 7.1.

ARTICLE 5

REPRESENTATIONS AND WARRANTIES OF DOW

Except as set forth in the disclosure schedule attached hereto prepared by Dow (the “Disclosure Schedule”), Dow represents and warrants to the Company, as follows:

5.1 Organization. Each of TDCC and DGTI is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware. Each of TDCC and DGTI has all requisite organizational power and authority to carry on the Business and to own and use the properties owned and used by them in the Business, including the Transferred Assets.

5.2 Authorization. Each of TDCC and DGTI has all requisite power and authority to execute and deliver this Agreement and the Transaction Agreements and to perform its obligations hereunder and thereunder. The execution and delivery by each of TDCC and DGTI of this Agreement and the Transaction Agreements and the consummation by each of TDCC and DGTI of the transactions contemplated hereby and thereby have been duly and validly authorized by all necessary corporate action on the part of TDCC and DGTI. This Agreement and the Transaction Agreements have been duly and validly executed and delivered by each of TDCC and DGTI and (assuming due authorization, execution and delivery by the Company) constitute valid and binding obligations of each of TDCC and DGTI, enforceable against TDCC and DGTI in accordance with their terms, subject to bankruptcy, insolvency and similar laws affecting the rights of creditors generally and subject to rules of law governing specific performance, injunctive relief and other equitable remedies.

5.3 Governmental Authorization. The execution and delivery of this Agreement and the other Transaction Documents by TDCC and DGTI and the consummation of the transactions contemplated hereby and thereby, do not require any consent or approval of, or any notice to or other filing with, any Governmental Authority, except for consents, approvals, notices and filings required to reflect a change in ownership of the patents or other consents, approvals, notices, and filings the failure of which to be obtained or made would not, individually or in the aggregate, have a Material Adverse Effect on the Business.

5.4 Assets. Each of TDCC and DGTI has good and valid title to all of the Fixed Assets, the Transferred Books and Records and the Other Assets free and clear of all Liens. The Transferred Assets owned by the Company immediately following the Closing and the rights possessed by the Company immediately following the Closing (including the rights acquired by the Company under the Business Contracts) include all assets and rights of TDCC and DGTI and their respective Affiliates that: (i) are used or held for use by TDCC and DGTI and their

 

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respective Affiliates primarily in the operation or conduct of the Business, or (ii) are necessary for, or would otherwise be infringed by, the operation or conduct the Business by the Company in substantially the same manner as currently conducted, and such assets and rights are sufficient for the conduct of the Business by the Company in substantially the same manner as currently conducted by TDCC and DGTI, as applicable.

5.5 Business Contracts. The Business Contracts listed on Schedule 2.3 are all of the Contracts between TDCC or DGTI, as the case may be, and any third party necessary for the operation of the Business, and true and complete copies of all such Business Contracts have been delivered to or are in the possession of the Company. Each Business Contract is, as of the date hereof, legal, valid, binding and enforceable against TDCC or DGTI, as applicable, and in full force and effect, subject to bankruptcy, insolvency and similar laws affecting the rights of creditors generally and subject to rules of law governing specific performance, injunctive relief and other equitable remedies, and neither TDCC nor DGTI is subject to any material default thereunder, nor is any party obligated to TDCC or DGTI pursuant to any such Business Contract subject to any default thereunder. Neither TDCC nor DGTI has neither breached, violated or defaulted under, nor received notice that TDCC or DGTI has breached, violated or defaulted under, any of the terms or conditions of any Business Contract. Subject to Section 4.4, each of TDCC and DGTI has obtained all necessary consents, waivers and approvals of parties to any Business Contract as are required thereunder in connection with the Closing, or for any such Business Contract to be transferred to the Company, and to remain in full force and effect without limitation, modification or alteration after the Closing. Following the Closing, the Company will be permitted to exercise all of the rights TDCC or DGTI, as the case may be, had under the Business Contracts without the payment of any additional amounts or consideration other than ongoing fees, royalties or payments which TDCC or DGTI would otherwise be required to pay pursuant to the terms of such Business Contracts had the transactions contemplated by this Agreement not occurred.

5.6 Transferred Books and Records. The Transferred Books and Records are those related to, used in, or necessary for the operation of the Business.

5.7 Permits. TDCC (a) owns, holds or possesses all permits, licenses, franchises or authorizations required by any Governmental Authority for the conduct or operations of the Business (collectively, the “Permits”), and (b) is not in violation of, or default under, any such Permits, except in each case as would not reasonably be expected to have a Material Adverse Effect on the Business.

5.8 Compliance with Laws. To the knowledge of TDCC, TDCC has conducted the operations of the Business in compliance with applicable law, except for any violations or defaults that have not had and would not reasonably be expected to have a Material Adverse Effect on the Business.

5.9 Purchase Entirely for Own Account. This Agreement is made with Dow in reliance upon Dow’s representations to the Company, which by Dow’s execution of this Agreement, Dow hereby confirms that the Shares will be acquired for investment for Dow’s own account, not as a nominee or agent, and not with a view to the resale or distribution of any part thereof, and that Dow has no present intention of selling, granting any participation in, or otherwise distributing the same. By executing this Agreement, Dow further represents that Dow

 

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does not have any contract, undertaking, agreement or arrangement with any Person to sell, transfer or grant participations to such Person or to any third Person, with respect to any of the Shares.

5.10 Brokers. Neither Dow nor any of its respective officers, directors, employees or consultants has employed any broker or finder or incurred any Liability for any brokerage fees, commissions or finder’s fees in connection with the transactions contemplated by this Agreement.

5.11 Private Placement. Dow understands that the Shares have not been registered under the Securities Act of 1933, as amended (the “Securities Act”) or registered or qualified under any state securities Laws on the grounds that such Shares are being issued in a transaction exempt from the registration requirements of the Securities Act and the registration or qualification requirement of applicable state securities Laws, and that the Shares must be held indefinitely unless Shares are subsequently registered under the Securities Act and qualified or registered under applicable state securities Laws or an exemption from registration and qualification is available, and that, except as otherwise provided in the Transaction Documents, the Company is under no obligation to register or qualify the Shares. Dow shall hold harmless the Company and its directors, officers, employees and agents against any loss or Liability from any disposition of Shares by it in violation of this Section 5.11.

5.12 Accredited Investor. Dow is an “accredited investor” within the meaning of Rule 501 of Regulation D promulgated under the Securities Act and has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks of the investment to be made hereunder by it and it is able to bear the economic risk of its investment.

5.13 Legends. Dow understands that the Shares and any securities issued in respect of or exchange for the Shares, may bear one or all of the following legends, in substantially the following form:

(a) “THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH TRANSFER MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933.”

(b) Any legend set forth in, or required by, the other Transaction Agreements.

(c) Any legend required by the securities or corporate laws of any state to the extent such laws are applicable to the Shares represented by the certificate so legended.

5.14 Reliance. Dow understands and acknowledges that (a) the Shares to be acquired by it hereunder are being offered and sold to it without registration under the Securities Act in a private placement that is exempt from the registration provisions of the Securities Act; and (b)

 

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the availability of such exemption depends in part on, and the Company will rely upon the accuracy and truthfulness of, the foregoing representations, and Dow hereby consents to such reliance

ARTICLE 6

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

The Company hereby represents and warrants to TDCC and DGTI, as follows:

6.1 Organization. The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware.

6.2 Authorization. The Company has all requisite power and authority to execute and deliver this Agreement and the Transaction Agreements and to perform its obligations hereunder and thereunder. The execution and delivery by the Company of this Agreement and the Transaction Agreements and the consummation by the Company of the transactions contemplated hereby and thereby have been duly and validly authorized by all necessary corporate action on the part of the Company. This Agreement and the Transaction Agreements have been duly and validly executed and delivered by the Company and (assuming due authorization, execution and delivery by TDCC and DGTI) constitute valid and binding obligations of the Company, enforceable against the Company in accordance with their terms, subject to bankruptcy, insolvency and similar laws affecting the rights of creditors generally and subject to rules of law governing specific performance, injunctive relief and other equitable remedies.

6.3 Offering. Subject in part to the truth and accuracy of Dow’s representations set forth in Article 5 of this Agreement, the offer, sale and issuance of the Shares as contemplated by this Agreement are exempt from the registration requirements of the Securities Act and state securities and “blue sky” laws, and neither the Company nor any authorized agent acting on its behalf will take any action hereafter that would cause the loss of such exemption.

6.4 Valid Issuance of Shares. The Shares that are being purchased by Dow hereunder, when issued, sold and delivered in accordance with the terms of this Agreement and in accordance with their respective terms for the consideration expressed herein and therein, will be duly and validly issued, outstanding, fully paid, and nonassessable, and will be free of restrictions on transfer other than restrictions on transfer under this Agreement and under applicable Laws.

6.5 Brokers and Finders. Neither the Company nor any of its officers, directors, employees or consultants has employed any broker or finder or incurred any Liability for any brokerage fees, commissions or finder’s fees in connection with the transactions contemplated by this Agreement.

 

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ARTICLE 7

SURVIVAL

7.1 Investigations; Survival. The representations and warranties of Dow, on the one hand, and the Company, on the other hand, contained herein or in any certificates or other documents delivered prior to or at the Closing shall not be deemed waived or otherwise affected by any investigation made by any party hereto. The representations and warranties herein and the covenants set forth in Sections 4.4 and 4.5 shall survive the Closing until 5:30 pm PST on December 31, 2010.

ARTICLE 8

MISCELLANEOUS

8.1 Amendments and Waivers. This Agreement may not be amended, supplemented or modified, except by an agreement in writing signed by each of the Parties. Any Party may waive compliance by any of the other Parties with any term or provision of this Agreement; provided that such waiver shall not operate as a waiver of, or estoppel with respect to, any other or subsequent failure. No waiver shall be effective unless it is in writing and is signed by the Party asserted to have granted such waiver.

8.2 Governing Law. This Agreement is to be construed in accordance with and governed by the internal laws of the State of Michigan, without giving effect to any choice of law rule that would cause the application of the laws of any jurisdiction other than the internal laws of the State of Michigan to the rights and duties of the Parties.

8.3 Exhibits and Schedules. All exhibits and schedules attached hereto are hereby incorporated by reference into, and made a part of, this Agreement.

8.4 No Third-Party Beneficiaries. The terms and provisions of this Agreement are intended solely for the benefit of each Party hereto and their respective successors and permitted assigns and the Parties do not intend to confer third-party beneficiary rights upon any other Person.

8.5 Counterparts. This Agreement may be executed (including, without limitation, by facsimile signature or other electronic formats) in one or more counterparts, with the same effect as if the Parties had signed the same document. Each counterpart so executed shall be deemed to be an original, and all such counterparts shall be construed together and shall constitute one agreement.

8.6 Severability. If any provision of this Agreement, or the application of any such provision to any Person or set of circumstances, shall be determined to be invalid, unlawful, void or unenforceable to any extent, the remainder of this Agreement, and the application of such provision to Persons or circumstances other than those as to which it is determined to be invalid, unlawful, void or unenforceable, shall not be impaired or otherwise affected and shall continue to be valid and enforceable to the fullest extent permitted by law.

 

12


EXECUTION COPY

 

8.7 Notices. All notices, requests, demands and other communication required or permitted to be given hereunder shall be in writing and shall be deemed to have been duly given when received if delivered personally or mailed first class, postage prepaid, registered or certified mail, delivery by a courier service, or sent by facsimile or electronic mail as follows:

If to TDCC or DGTI:

The Dow Chemical Company

2030 Dow Center

Midland, Michigan 48674

Attention: Corporate Venture Capital

Fax: 317 ###-###-####

Email: ***@***

With a copy to:

Paul, Hastings, Janofsky & Walker LLP

515 South Flower Street

Los Angeles, California 90071

Attention: Robert R. Carlson

Fax No.: (213)  ###-###-####

Email: ***@***

If to Company:

Pfenex Inc.

5501 Oberlin Drive

San Diego, California 92121

Attention: Chief Executive Officer

Fax: 858 ###-###-####

Email: [To be designated by written notice to Dow]

With a copy to:

Wilson Sonsini Goodrich & Rosati, P.C.

701 Fifth Avenue, Suite 5100

Seattle, Washington 98104

Attention: Effie Toshav

Fax No.: (206)  ###-###-####

Email: ***@***

8.8 Entire Agreement. This Agreement contains the entire understanding among the Parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements and understandings, inducements or conditions, express or implied, oral or written, be the several, complete and exclusive embodiment of their agreement, and that any evidence, oral or written, of a prior or contemporaneous agreement that alters or modifies this Agreement shall not be admissible in any Proceeding concerning this Agreement. The express terms hereof control and supersede any course of performance and/or usage of the trade inconsistent with any of the terms hereof.

 

13


EXECUTION COPY

 

8.9 Interpretation. Unless otherwise indicated herein, with respect to any reference made in this Agreement to a section (or article, subsection, paragraph, subparagraph or clause) or exhibit, such reference shall be to a section (or article, subsection, paragraph, subparagraph or clause) of, or an exhibit or schedule to, this Agreement. The article, section, subsection, paragraph or subparagraph headings contained in this Agreement and the recitals at the beginning of this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Whenever the words “include,” “includes” or “including” are used in this Agreement, they shall be deemed, as the context indicates, to be followed by the words “but without limitation.” Words used herein, regardless of the number and gender specifically used, shall be deemed and construed to include any other number, singular or plural, and any other gender, masculine, feminine or neuter, as the context indicates is appropriate. Where specific language is used to clarify or illustrate by example a general statement contained herein, such specific language shall not be deemed to modify, limit or restrict the construction of the general statement which is being clarified or illustrated.

8.10 Construction. The construction of this Agreement shall not take into consideration the Party who drafted or whose representative drafted any portion of this Agreement, and no canon of construction shall be applied that resolves ambiguities against the drafter of a document.

8.11 Jurisdiction; Service of Process. Each of the Parties (a) submits to the jurisdiction of any state or federal court sitting in New York in any action or proceeding arising out of or relating to this Agreement; (b) agrees that all claims in respect of such action or proceeding may be heard and determined in any such court; (c) waives any claim of inconvenient forum or other challenge to venue in such court; (d) agrees not to bring any action or proceeding arising out of or relating to this Agreement in any other court; and (e) waives any right it may have to a trial by jury with respect to any action or proceeding arising out of or relating to this Agreement. Each party agrees to accept service of any summons, complaint or other initial pleading made in the manner provided for the giving of notices in Section 8.7, provided that nothing in this Section 8.11 shall affect the right of a Party to serve such summons, complaint or other initial pleading in any other manner permitted by law.

8.12 Provisional Relief; Specific Performance. The Parties agree that irreparable damage would occur in the event that any of the provisions of this Agreement are not performed in accordance with their specific terms or were otherwise breached. Accordingly, it is agreed that the Parties shall be entitled to seek an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement in any state or federal court of the State of New York, in addition to any other remedy to which they are entitled at law or in equity.

8.13 Recovery of Fees by Prevailing Party. If any legal action, including, without limitation, an action for arbitration or injunctive relief, is brought relating to this Agreement or the breach or alleged breach hereof, the prevailing Party in any final judgment or arbitration award, or the non-dismissing Party in the event of a voluntary dismissal by the Party instituting the action, shall be entitled to the full amount of all reasonable expenses, including all court costs, arbitration fees and actual attorneys’ fees paid or incurred in good faith.

 

14


EXECUTION COPY

 

8.14 Further Assurances. The Parties agree (a) to furnish upon request to each other such further information, (b) to execute and deliver to each other such other documents, and (c) to do such other acts and things, all as the other Party may reasonably request for the purpose of carrying out the intent of this Agreement and the documents referred to in this Agreement.

[Signature Page Follows]

 

15


IN WITNESS WHEREOF, each of the Parties has caused this Contribution, Assignment and Assumption Agreement to be executed on its behalf by their respective officers thereunto duly authorized all as of the Effective Date.

 

THE DOW CHEMICAL COMPANY
By:  

/s/ Fernando Ruiz

Name:  

Fernando Ruiz

Title:  

Corp Vice President & Treasurer

DOW GLOBAL TECHNOLOGIES INC.
By:  

/s/ Mark A. Whiteman

Name:  

Mark A. Whiteman

Title:  

President

PFENEX INC.
By:  

/s/ Albert Hansen

Name:  

Albert Hansen

Title:  

President

[Signature Page to Contribution, Assignment and Assumption Agreement]


Exhibit A

SUBLEASE

THIS SUBLEASE (“Sublease”) is entered into as of November 30, 2009, by and between THE DOW CHEMICAL COMPANY, a Delaware corporation (“Sublessor”), and PFENEX INC., a Delaware corporation (“Sublessee”).

RECITALS

A. Pursuant to that certain Lease dated as of December 20, 2007, by and between Sublessor and ECI TWO OBERLIN LLC, a Delaware limited liability company (“Master Lessor”) (collectively and as amended or renewed from time to time, the “Master Lease”), Sublessor leased from Master Lessor certain premises (as set forth more particularly in the Master Lease, the “Final Premises”) located in a project located in San Diego, California (as set forth in the Master Lease, the “Project”). As of the date hereof, the Final Premises is comprised of the Building A Premises (as defined in the Master Lease) and the Building C Premises (as defined in the Master Lease).

B. Sublessor desires to sublease to Sublessee, and Sublessee desires to sublease from Sublessor, the entire Final Premises as shown on Exhibit “A” attached hereto (the “Subleased Premises”) and all improvements and fixtures located thereon, upon the terms and conditions set forth herein.

C. Capitalized terms used herein but not otherwise defined herein shall have the meanings set forth in the Master Lease.

NOW, THEREFORE, in consideration of the foregoing recitals and of the mutual promises and covenants contained herein, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

1. Subleased Premises. Subject to all of the terms and conditions set forth herein, Sublessor hereby subleases to Sublessee, and Sublessee hereby subleases from Sublessor the Subleased Premises. Sublessor and Sublessee acknowledge and agree that there are 27,292 Rentable Square Feet in the Building A Premises and 4,768 Rentable Square Feet in the Building C Premises and Sublessee shall have no right to remeasure or otherwise contest the Rentable Square Feet in either space for any purpose.

2. Term.

2.1 Initial Term. The term of this Sublease (“Sublease Term”) shall commence on the later of (a) December 1, 2009, and (b) the closing of the transaction transferring certain assets of Sublessor to Sublessee (the “Commencement Date”) and shall expire on March 15, 2011 unless sooner terminated pursuant to any provision hereof.

2.2 Automatic Termination. This Sublease shall terminate automatically upon any expiration or earlier termination of the Master Lease and Sublessor shall not be liable to Sublessee by reason thereof.

3. Condition of Subleased Premises; Improvements. Sublessee acknowledges that it has inspected the Subleased Premises and agrees to accept the same in an “AS-IS”, “WHERE-IS” condition, without any representation or warranty, express or implied, being made by Sublessor. Sublessee further accepts the Subleased Premises subject to all applicable zoning, municipal, county and state laws,

 

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ordinances, and regulations governing and regulating the use of the Subleased Premises. Sublessee acknowledges that neither Sublessor nor Sublessor’s agents have made any representation or warranty as to the suitability or fitness of the Subleased Premises for the conduct of Sublessee’s use, the physical condition or the fitness for any particular purpose of all or any part of the Subleased Premises as an inducement to Sublessee to enter into this Sublease or for any other purpose. Sublessor shall have no obligation to make any alterations or improvements in the Subleased Premises or to provide any allowance therefor.

4. Rent.

4.1 Monthly Base Rent. Commencing on the Commencement Date and continuing throughout the Sublease Term, Sublessee shall pay to Sublessor Monthly Base Rent for the Subleased Premises equal to Forty Thousand Seventy-Five and 00/100 Dollars ($40,075.00) (based on $1.25 per Rentable Square Foot in the Subleased Premises). Sublessee shall, concurrently with execution hereof, pay Sublessor its first monthly installment of Monthly Base Rent.

4.2 Additional Rent; Building Costs; Property Taxes. Commencing on the Commencement Date, Sublessee shall be obligated to pay all additional rent (as described in Section 5(b) of the Master Lease) payable by Sublessor under the Master Lease, including, without limitation, all Operating Expense payments due and payable under the Master Lease (“Additional Rent”). In addition to the Monthly Base Rent and Additional Rent which are expressly provided for above, Sublessee shall be responsible throughout the Sublease Term for all other payments or charges arising or accruing under the Master Lease during the Sublease Term including, without limitation, the following: (a) any charges relating to any special privilege or services provided to Sublessee (or its subtenants, assignees or anyone claiming by, through or under Sublessee) such as HVAC and freight elevator service for which Sublessor is separately charged by Master Lessor; (b) any indemnity payments relating to the Subleased Premises not attributable to any act of Sublessor; (c) any claims for damages or other losses resulting from a casualty to the Subleased Premises; (d) any claims by Master Lessor for reimbursement resulting from Master Lessor’s exercise of self help remedies in the Subleased Premises, and (e) any utility charges due and payable under the Master Lease (collectively, items (a) through (e) shall be included in the definition of Additional Rent).

4.3 Payment of Rent. Monthly Base Rent shall be paid in advance on the first day of each calendar month, at such address as Sublessor shall, from time to time, specify in writing. If the date of termination of this Sublease is not the last day of a calendar month, then rent for the last month of this Sublease shall be prorated. All Additional Rent shall be paid to Sublessor within five (5) days of demand and before it becomes delinquent under the Master Lease. Monthly Base Rent, Additional Rent and all other amounts due under this Sublease shall be deemed to be rent (“Rent”). Except as otherwise expressly provided under this Sublease, all Rent shall be paid by Sublessee without notice, demand, deduction, offset or abatement in lawful money of the United States.

5. Use of the Subleased Premises.

5.1 Permitted Use. The Subleased Premises shall be used and occupied only for the uses set forth in Section 7(a) of the Master Lease, and for no other purpose.

5.2 Alterations; Compliance with Law. Sublessee shall not be permitted to make alterations to the Subleased Premises without the prior written consent of Sublessor which consent shall not be unreasonably withheld or delayed (and otherwise in compliance with and to the extent allowed under the Master Lease). Sublessee shall, at its sole expense, comply promptly with all applicable statutes, ordinances, rules, regulations, orders, restrictions of record, and requirements in effect during the term hereof (or any part of such term) regulating its use of the Subleased Premises.

 

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5.3 Maintenance of Subleased Premises. Sublessee agrees that it shall use and maintain the Subleased Premises in a first class condition and otherwise as required by the Master Lease.

5.4 Surrender. Upon the expiration or termination of this Sublease, Sublessee shall return the Subleased Premises in the same condition (reasonable wear and tear excepted) and in the same configuration as of the date hereof (including any renovations thereto, which shall become part of the Subleased Premises), unless otherwise required by Sublessor or the Master Lessor.

6. Building Services. Sublessor shall have no obligation during the Sublease Term (whether under the Master Lease or otherwise) to render any services to the Premises or to expend any money for the repair of or perform any obligation for Sublessee in, to or with respect to the Subleased Premises of any nature whatsoever. Sublessor specifically is not responsible for providing security to the Subleased Premises and shall have no liability whatsoever to Sublessee for loss, damage or theft of or to Sublessee’s property.

7. Master Lease.

7.1 Sublessor’s Compliance with Master Lease. Sublessee expressly agrees that Sublessor shall not be obligated to perform, and shall not be liable or responsible for the performance by or failure of performance of Master Lessor, of any of the obligations of Master Lessor under the Master Lease and Sublessee shall have no claim against Sublessor for any default of Master Lessor. Sublessee further agrees that Sublessor shall not be obligated to perform any of the obligations of Sublessor as tenant under the Master Lease and Sublessee shall have no claim against Sublessor for any such non-performance, including, without limitation, any termination or forfeiture of the Master Lease caused by Sublessor.

7.2 Application of Terms of Master Lease. The terms, conditions and respective obligations of Sublessor and Sublessee to each other with respect to the Subleased Premises under this Sublease shall be the terms and conditions of the Master Lease (which are incorporated herein by reference), except for those provisions of the Master Lease which are directly contradicted by this Sublease (e.g., Sections 1(i), 1(k), and 3 of the Master Lease), in which event the terms of this Sublease shall control over the Master Lease. Therefore, for the purposes of this Sublease and with respect to the Subleased Premises only, wherever in the Master Lease the word “Landlord” is used it shall be deemed to mean Sublessor herein and wherever in the Master Lease the word “Tenant” is used it shall be deemed to mean Sublessee herein; provided, however, Sublessor does not assume and shall not otherwise be liable for the obligations of the Master Lessor under the Master Lease. Sublessee hereby waives any cause of action and any right to bring any action against Sublessor by reason of any act or omission of Master Lessor under the Master Lease. Any condition resulting from a default by Master Lessor shall not constitute as between Sublessor and Sublessee an eviction, actual or constructive, of Sublessee and no such default shall excuse Sublessee from the performance or observance of any of its obligation under this Sublease or entitle Sublessee to any rental abatement hereunder.

7.3 Subordinate to Master Lease. This Sublease is and shall be at all times subject and subordinate to the Master Lease. Sublessee acknowledges that this Sublease is subject and subordinate to the Master Lease and that this Sublease shall be subject and subordinate to all agreements which have recorded or statutory priority over this Sublease or the Master Lease. Notwithstanding any provision of this Lease to the contrary, the expiration or termination of this Sublease and/or the Master Lease and/or the termination of Sublessee’s rights to possession of the Subleased Premises shall not discharge, relieve or release Sublessee from any obligation or liability whatsoever under any indemnity provision of this Sublease.

 

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7.4 No Greater Rights. Any obligation of Sublessor which is contained in this Sublease by the incorporation by reference of the provisions of the Master Lease may be observed or performed by Sublessor using reasonable efforts to cause the Master Lessor under the Master Lease to observe and/or perform the same, and Sublessor shall have a reasonable time to enforce its rights to cause such observance or performance. Sublessee shall not in any event have any rights in respect of the Subleased Premises greater than Sublessor’s rights under the Master Lease.

7.5 Sublessee Not to Breach. Sublessee shall not do or permit to be done any act or thing which may constitute a breach or violation of any term, covenant or condition of the Master Lease by the tenant thereunder, whether or not such act or thing is permitted under the provisions of this Sublease.

7.6 Insurance Required Under Master Lease. Sublessee shall be responsible, at its own cost and expense, for obtaining and maintaining relative to the Subleased Premises, all that insurance (including coverage for possessions and general liability) as is required by the Master Lease to be carried by the “Tenant” thereunder. Sublessee’s insurance shall be issued by an insurance company or companies approved by Sublessor and the Master Lessor, and shall be written on such forms with such exclusions and deductible amounts as Sublessor shall approve. The policy or policies shall name Sublessor and Master Lessor as additional insureds and shall include thirty (30) days’ advance written notice to Sublessor prior to the cancellation or material reduction in coverage of such insurance policies.

8. Signage. Sublessee shall not cause, suffer or permit any person to display any signs or notices at the Subleased Premises without the prior written consent of Master Lessor and Sublessor. All signage shall be at Sublessee’s sole cost and expense.

9. Brokerage. Each party represents and warrants to the other that no broker or finder has been engaged by it, respectively, in connection with any of the transactions contemplated by this Sublease or to its knowledge is in any way connected with any of such transactions. In the event of a claim for broker’s or finder’s fee or commissions in connection herewith, Sublessor shall indemnify, protect, defend and hold Sublessee harmless from and against the same if it shall be based upon any statement or agreement alleged to have been made by Sublessor, and Sublessee shall indemnify, protect, defend and hold Sublessor harmless from and against the same if it shall be based upon any statement or agreement alleged to have been made by Sublessee. The parties’ respective indemnification obligations under this paragraph shall survive the termination or expiration of this Sublease.

10. Indemnification

10.1 In General. Sublessee hereby agrees to indemnify, defend, protect and hold Sublessor, its affiliates, employees, officers, directors, agents and representatives, and the Master Lessor and each of their respective successors and assigns, harmless from and against any and all losses, liabilities, costs (including costs of cure, remedy or settlement made by Sublessor), damages, demands, and expenses (including costs of investigation, defense and reasonable attorneys’ fees, whether or not litigation, arbitration or mediation is actually instigated or commenced) from the payment of, or the obligation to pay, any and all sums of money due or demanded by any person or entity whatsoever on account of any and all claims, demands, suits, actions, liens, settlements, judgments, garnishments or attachments (collectively, “Losses”), arising out of or in connection with (a) the acts, omissions or negligence of Sublessee or its employees, agents, contractors and invitees; (b) the breach of the Master Lease by Sublessee and/or default by Sublessee in the observance of its terms, covenants or conditions and any cure undertaken by Sublessor with respect thereto; (c) the breach of this Sublease by Sublessee and any default in the observance of its terms, covenants or conditions; (d) the use of the Premises or Subleased Premises by Sublessee or its employees, agents, contractors and invitees or any person claiming by, through or under Sublessee; (e) any injury or death of any person (including, without limitation, any employee of Sublessor or any damage to or destruction of any property of any person (including, without

 

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limitation, any employee of Sublessor occurring on or about the Premises); or (f) any and all actions, suits, proceedings, claims and demands taken or made in enforcing this indemnity. The provisions of this Section 10 shall survive the expiration or earlier termination of this Sublease. Sublessor shall not be liable for and Sublessee hereby waives all claims against Sublessor for any damage to any property or injury, illness or death of any person in, upon, or about the Premises arising at any time and from any cause whatsoever.

10.2 Defense by Sublessee. In connection with any claim giving rise to indemnity hereunder resulting from or arising out of any claim or legal proceeding by any third party, Sublessee, at its sole cost and expense, shall assume the defense of any such claim or legal proceeding using counsel of Sublessor’s choice. Sublessor shall be entitled to participate in the defense of any such action, with its counsel and at its own expense; provided, however, that if Sublessor, in its reasonable discretion, determines that there exists a conflict of interest between the Sublessee (or any constituent party thereof) and Sublessor, Sublessor shall have the right to engage separate counsel, the actual costs and expenses of which shall be paid by Sublessee.

11. Default. In the event of a default by Sublessee under this Sublease which continues after the giving of any notice and the expiration of any cure period provided for a like default under the Master Lease, Sublessor shall have available to it under this Sublease all remedies which are available to Master Lessor under the Master Lease, including the imposition of late charges and interest on delinquent payments.

12. Assignment/Subletting. Sublessee’s rights to assign, sublease, pledge, encumber, hypothecate or otherwise transfer (each, a “Transfer”) all or any part of Sublessee’s interest in this Sublease, or permit the Subleased Premises to be occupied by anyone other than Sublessee, shall be in accordance with and subject to all provision of Section 23 of the Master Lease. Additionally, any Transfer sought by Sublessee shall be subject to Sublessor’s prior written consent, which consent shall not be unreasonably withheld within the purview, context and general criteria of said Section 23.

13. Miscellaneous Provisions.

13.1 Entire Agreement. This Sublease, together with the Exhibits hereto (which are incorporated herein by this reference), constitutes the entire agreement between the parties hereto with respect to the subject matter hereof, and supersedes all prior agreements between the parties hereto with respect thereto. No claim of waiver, modification, consent or acquiescence with respect to any of the provisions of this Sublease shall be made against either party, except on the basis of a written instrument executed by or on behalf of such party.

13.2 Governing Law and Venue. This Sublease is to be governed by and construed in accordance with the laws of the State in which the Building is located.

13.3 Attorneys’ Fees. If any or all of Sublessor, Sublessee, or Master Lessor shall bring an action against any other by reason of the breach of any covenant, provision or condition hereof, or otherwise arising out of this Sublease, the unsuccessful party shall pay to the prevailing party all attorneys’ fees and costs actually incurred by the prevailing party, in addition to any other relief to which it may be entitled.

 

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13.4 Notices. All notices, requests and other communications hereunder shall be in writing and shall be delivered by personal service, by Federal Express® or other nationally recognized commercial courier service, or mailed first class, postage prepaid, by certified mail, return receipt requested, in all cases addressed to:

 

SUBLESSOR:        The Dow Chemical Company
   2030 Dow Center
   Midland, Michigan 48674
   Attn: Charles Kendall
SUBLESSEE:    Pfenex Inc.
   5451 Oberlin Drive
   San Diego, California 92121
   Attn: Bert Liang

In the case of service by personal delivery, delivery shall be deemed complete on the date of delivery. In the case of service by Federal Express® or other nationally recognized commercial courier service, service shall be deemed complete on the second (2nd) business day following deposit with such courier service. In the case of service by mail, service shall be deemed complete at the earlier of (i) the expiration of the third business day after the date of mailing, or (ii) the date of delivery as shown by the return receipt. Either party hereto may from time to time, by notice in writing, served as set forth above, designate-a different address or a different or additional person to which all such notices or communications thereafter are to be given.

13.5 Further Assurances. Each party hereto shall perform all acts and things and to make, execute and deliver such written instruments as shall be reasonably necessary to carry out the terms and provisions of this Sublease.

13.6 Counterparts. This Sublease may be executed in any number of counterparts, each of which so executed shall be deemed an original, but all of which taken together shall constitute but one agreement.

[Signatures on next page.]

 

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IN WITNESS WHEREOF, the parties hereto have executed this Sublease as of the day and year set forth above.

 

“SUBLESSOR”:

THE DOW CHEMICAL COMPANY,

a Delaware corporation

By:  

/s/ Charles B. Kendall

  Name:  

Charles B. Kendall

  Its:  

Authorized Representative

“SUBLESSEE”:

PFENEX INC.,

a Delaware corporation

By:  

/s/ Albert Hansen

  Name:  

Albert Hansen

  Its:  

President

 

-8-


EXHIBIT “A” TO SUBLEASE

SUBLEASED PREMISES




Exhibit B

Transition Services Agreement


Exhibit C

Technology Assignment Agreement


Exhibit D

Technology Licensing Agreement


Exhibit E

Grant-Back License Agreement


Schedule 1.17

Permitted Liens

 

1. License Agreement between Dow Global Technologies and Diversa Corporation dated December 30, 2003.

 

2. Pfenex Expression Technology License Agreement between Dow Global Technologies and Dr. Reddy’s Laboratories dated April 30, 2008.

 

3. Technology License Agreement between DGTI and Dow AgroScience (DAS) as of January 7, 2009.

 

4. Any requirements under the License Agreement between Washington University and Agrigenetics dated December 30, 1996.

 

5. Any requirements under the Agreement between Agrigenetics and University of Wisconsin dated December 23, 1982.

 

6. Any rights or licenses as required by foreign patent offices including, but not limited to, compulsory licenses as required by foreign patent offices.


Schedule 2.2

Fixed Assets

 

Dow
Company
Code

   Plant
Code
   Cost Center
Number
   Asset
Class
   Asset
Number
   Capitalization
Date
   Useful
Life
Year
Book
    

Asset Description 1

   Data
Acquisition
Cost
     Accum Depr      Net Book
Value
 
0001    YU    00001140    0028    00253818    12/1/2003      20       APC INFRASTRUXURE UNINTE-      20,297         5,924         14,373   
0001    YU    00001140    0041    00233314    8/1/2001      10       REVCO ULT2586-9D FREEZER,      9,484         8,735         750   
0001    YU    00001140    0041    00233315    8/1/2001      10       REVCO ULT2586-9D FREEZER,      9,484         8,735         750   
0001    YU    00001140    0041    00245239    6/1/2001      10       12 ZETA PLUS HOUSING      1,973         1,644         329   
0001    YU    00001140    0041    00245241    6/1/2001      10       SET OF 6 WATSON MARLOW PU      3,293         2,744         549   
0001    YU    00001140    0041    00245242    6/1/2001      10       STREAMLINE 200 COLUMN AND      10,071         8,394         1,677   
0001    YU    00001140    0041    00248024    7/1/1994      12       FORKLIFT 1987 CATERPILLA      5,587         5,587         0   
0001    YU    00001140    0041    00252793    11/1/2003      10       BPG 140/500 COLUMN DIN/NI      6,409         5,641         768   
0001    YU    00001140    0041    00252794    11/1/2003      10       BPG 300/500 COLUMN DIN/NI      16,481         14,505         1,976   
0001    YU    00001140    0041    00260068    3/1/2004      10       PALL MAXIM PLUS TFF      76,233         6,354         69,879   
0001    YU    00001140    0041    00295391    9/1/2006      10       PACIFIC RIM MECHANICAL      36,172         11,154         25,018   
0001    YU    00001140    0042    00254111    12/1/2003      5       AMERSHAM BIOPROCESS SKID      229,615         229,615         0   
0001    YU    00001140    0042    00254112    12/1/2003      5       20CM (16L) CHROMA. COLUMN      8,878         8,878         0   


Dow
Company
Code

   Plant
Code
   Cost Center
Number
   Asset
Class
   Asset
Number
   Capitalization
Date
   Useful
Life
Year
Book
    

Asset Description 1

   Data
Acquisition
Cost
     Accum Depr      Net Book
Value
 
0001    YU    00001140    0042    00254113    12/1/2003      5       20CM (16L) CHROMA. COLUMN      8,878         8,878         0   
0001    YU    00001140    0042    00254114    12/1/2003      5       20CM (16L) CHROMA. COLUMN      8,878         8,878         0   
0001    YU    00001140    0042    00254115    12/1/2003      5       45CM (78L) CHROMA. COLUMN      49,903         49,903         0   
0001    YU    00001140    0042    00254447    1/1/2004      5       STEDIM PALLETANKS (15 EA)      34,151         34,151         0   
0001    YU    00001140    0042    00254452    1/1/2004      5       FILTER HOUSING 30IN X 3      6,664         6,664         0   
0001    YU    00001140    0042    00254453    1/1/2004      5       FILTER HOUSING 30IN X 3      6,664         6,664         0   
0001    YU    00001140    0042    00254455    1/1/2004      5       UF MEMBRANE HOUSING      6,664         6,664         0   
0001    YU    00001140    0042    00254819    3/1/2004      5       ULTRA FILTRATION PELLICON      7,956         7,399         557   
0001    YU    00001140    0042    00254820    3/1/2004      5       WATSON MARLOW      2,931         2,727         204   
0001    YU    00001140    0042    00254821    3/1/2004      5       ULTRA FILTRATION MEMBRANE      5,862         5,452         410   
0001    YU    00001140    0042    00254822    3/1/2004      5       WATSON MARLOW      2,931         2,727         204   
0001    YU    00001140    0042    00254824    3/1/2004      5       METTLE TOLEDO      6,281         5,842         439   
0001    YU    00001140    0042    00254825    3/1/2004      5       THERMOFORMA REFRIGERATOR      7,537         7,010         528   
0001    YU    00001140    0042    00258951    7/1/2004      3       MILLIPORE PROFLUX M60      74,906         74,906         0   
0001    YU    00001140    0042    00258953    7/1/2004      3       MORSE DRUM HANDLER      2,918         2,918         0   
0001    YU    00001140    0043    00213183    4/1/1991      15       FERMENTER, 1500 LITER, (P      111,630         111,630         0   
0001    YU    00001140    0043    00213184    4/1/1991      15       FERMENTER, 1500 LITER, (P      111,630         111,630         0   


Dow
Company
Code

   Plant
Code
   Cost Center
Number
   Asset
Class
   Asset
Number
   Capitalization
Date
   Useful
Life
Year
Book
    

Asset Description 1

   Data
Acquisition
Cost
     Accum Depr      Net Book
Value
 
0001    YU    00001140    0043    00213186    4/1/1991      15       FERMENTER, 75 LITER, (PP)      50,284         50,284         0   
0001    YU    00001140    0043    00213187    4/1/1991      15       FERMENTER, 75 LITER, (PP)      50,284         50,284         0   
0001    YU    00001140    0043    00213201    4/2/1994      10       IMPELLERS      7,340         7,340         0   
0001    YU    00001140    0043    00216585    8/1/1999      10       AGILENT 1100 BINARY PUMP      10,433         10,433         0   
0001    YU    00001140    0043    00216594    8/1/1999      10       TECAN MINI PREP 50 PKG      16,395         16,395         0   
0001    YU    00001140    0043    00218352    8/1/1999      10       AGILENT 1100 COLUMN HEATR      9,671         9,671         0   
0001    YU    00001140    0043    00218363    8/1/1999      10       AGILENT 1100 AUTOSAMPLER      8,166         8,166         0   
0001    YU    00001140    0043    00218375    8/1/1999      10       AGILENT 1100 DEGASSER      3,224         3,224         0   
0001    YU    00001140    0043    00219208    1/1/2000      10       HP 8453 UV-VIS SPECTROPHO      19,337         18,856         481   
0001    YU    00001140    0043    00219214    1/1/2000      10       44 RAININ P2, P20,P100, P      7,332         7,147         185   
0001    YU    00001140    0043    00219220    2/1/2000      10       PHARMACIA AKTA EXPLORER 1      61,439         59,393         2,046   
0001    YU    00001140    0043    00219223    2/1/2000      10       STERIS 60” GRV FERMENTATI      100,596         97,247         3,349   
0001    YU    00001140    0043    00219243    1/1/2000      10       20 CORNING PC-20 STIRRER      6,347         6,190         157   
0001    YU    00001140    0043    00219254    1/1/2000      10       SLM AMINCO AB-2 (FA254)L      45,380         44,245         1,135   
0001    YU    00001140    0043    00219255    1/1/2000      10       REVCO VCRR445A18 CHROMOTO      7,446         7,364         82   
0001    YU    00001140    0043    00219256    1/1/2000      10       REVCO U2020GA14 FREEZER      1,182         1,169         13   
0001    YU    00001140    0043    00219257    1/1/2000      10       BRANSON SONIFIER II CELL      3,191         3,157         34   


Dow
Company
Code

   Plant
Code
   Cost Center
Number
   Asset
Class
   Asset
Number
   Capitalization
Date
   Useful
Life
Year
Book
    

Asset Description 1

   Data
Acquisition
Cost
     Accum Depr      Net Book
Value
 
0001    YU    00001140    0043    00219280    1/1/2000      10       MJ RESEARCH PTC200 THERMA      5,235         5,102         133   
0001    YU    00001140    0043    00219281    1/1/2000      10       MJ RESEARCH PTC200 THERMA      5,235         5,102         133   
0001    YU    00001140    0043    00219282    1/1/2000      10       MJ RESEARCH ALS1296 ALPHA      2,617         2,553         64   
0001    YU    00001140    0043    00219283    1/1/2000      10       MJ RESEARCH ALD1234 ALPHA      2,804         2,730         74   
0001    YU    00001140    0043    00219284    1/1/2000      10       MJ RESEARCH ALD1234 ALPHA      2,804         2,730         74   
0001    YU    00001140    0043    00219289    1/1/2000      10       EPPENDORF 5417R REFRIGERA      5,179         5,050         129   
0001    YU    00001140    0043    00219290    1/1/2000      10       EPPENDORF 5417C CENTRIFUG      2,252         2,196         56   
0001    YU    00001140    0043    00219292    1/1/2000      10       ISOTEMP 11690650D INCUBAT      1,351         1,317         34   
0001    YU    00001140    0043    00219293    1/1/2000      10       ISOTEMP 11690650D INCUBAT      1,351         1,317         34   
0001    YU    00001140    0043    00219294    1/1/2000      10       10 FISHER GENIE 2 VORTEX      1,801         1,756         45   
0001    YU    00001140    0043    00219392    4/1/2000      10       VIRTIS ADVANTAGE FREEZE      15,586         14,812         774   
0001    YU    00001140    0043    00219444    4/1/2000      10       NESLAB CFT-25 CHILLER S/N      4,521         4,296         225   
0001    YU    00001140    0043    00219446    4/1/2000      10       EDWARDS E2M28 ROTARY PUMP      4,521         4,296         225   
0001    YU    00001140    0043    00219448    4/1/2000      10       HP MSD 5973 MASS PSECTROM      54,867         52,127         2,740   
0001    YU    00001140    0043    00219450    4/1/2000      10       CTC ANALYTICS COMBI PAL A      21,947         20,854         1,093   
0001    YU    00001140    0043    00219451    4/1/2000      10       CTC ANALYTICS COMBI PAL A      21,947         20,854         1,093   
0001    YU    00001140    0043    00219452    4/1/2000      10       3 APEX PROSEP 800 LARGE      65,840         62,549         3,291   


Dow
Company
Code

   Plant
Code
   Cost Center
Number
   Asset
Class
   Asset
Number
   Capitalization
Date
   Useful
Life
Year
Book
    

Asset Description 1

   Data
Acquisition
Cost
     Accum Depr      Net Book
Value
 
0001    YU    00001140    0043    00219456    4/1/2000      10       HP G 1222A DEGASSER S/N:J      2,032         1,929         103   
0001    YU    00001140    0043    00219457    4/1/2000      10       HP G 1222A DEGASSER S/N:J      2,032         1,929         103   
0001    YU    00001140    0043    00219458    4/1/2000      10       HP G 1311A HPLC PUMPS S/N      11,516         10,944         572   
0001    YU    00001140    0043    00219459    4/1/2000      10       HP G 1312A HPLC PUMPS S/N      11,516         10,944         572   
0001    YU    00001140    0043    00219460    4/1/2000      10       HP G 1313A AUTOSAMPLER      9,484         9,007         477   
0001    YU    00001140    0043    00219461    4/1/2000      10       HP G 1313A AUTOSMPLER      9,484         9,007         477   
0001    YU    00001140    0043    00219462    4/1/2000      10       HP G 1314A UV-VIS DETECTO      6,774         6,432         342   
0001    YU    00001140    0043    00219463    4/1/2000      10       HP G 1321A FLUORESCENCE D      9,484         9,007         477   
0001    YU    00001140    0043    00219464    4/1/2000      10       HP G 1316A COLUMN HEATER      5,419         5,148         271   
0001    YU    00001140    0043    00219763    2/1/2000      10       2 COLE PARMER 77410-00      1,263         1,220         43   
0001    YU    00001140    0043    00219764    2/1/2000      10       2 COLE PARMER 77601-60      505         492         13   
0001    YU    00001140    0043    00219765    2/1/2000      10       9 MILLIPORE PEL2 PLC FILT      4,547         4,401         146   
0001    YU    00001140    0043    00219766    1/1/2000      10       COMPOSITE ROTOR INC. KAD-      5,408         5,275         133   
0001    YU    00001140    0043    00219767    1/1/2000      10       COMPOSITE ROTOR INC. KAD-      3,877         3,780         97   
0001    YU    00001140    0043    00219768    1/1/2000      10       COMPOSITE ROTOR INC. CBTH      918         896         22   
0001    YU    00001140    0043    00219846    2/1/2000      10       BioRad Protein IEF      11,251         10,878         373   
0001    YU    00001140    0043    00219868    2/1/2000      10       BECKMAN/COULTER AVANTI      37,200         35,962         1,238   


Dow
Company
Code

   Plant
Code
   Cost Center
Number
   Asset
Class
   Asset
Number
   Capitalization
Date
   Useful
Life
Year
Book
    

Asset Description 1

   Data
Acquisition
Cost
     Accum Depr      Net Book
Value
 
0001    YU    00001140    0043    00220092    6/1/2000      10       MOLECULAR DEVICES GEMINI      35,691         33,312         2,379   
0001    YU    00001140    0043    00220169    6/1/2000      10       COMPOSITE ROTOR INC. KAJ      4,854         4,527         327   
0001    YU    00001140    0043    00220181    6/1/2000      10       ADVANCED LASER POLARIMETE      38,074         35,533         2,541   
0001    YU    00001140    0043    00220373    7/1/2000      10       ONIX VG PRIMA P600S PROCE      103,895         96,110         7,785   
0001    YU    00001140    0043    00220374    7/1/2000      10       ONIX STANDARD ANALYZER W/      11,544         10,676         868   
0001    YU    00001140    0043    00220705    7/1/2000      10       BECKMAN COULTER BC AVANTI      32,952         30,479         2,473   
0001    YU    00001140    0043    00220706    7/1/2000      10       BECKMAN COULTER JA12 ROTO      9,843         9,103         740   
0001    YU    00001140    0043    00220707    7/1/2000      10       BOEKEL 131000 HYBRIDIZATI      1,770         1,639         131   
0001    YU    00001140    0043    00220708    7/1/2000      10       METTLER PB303-SRS BALANCE      1,416         1,316         100   
0001    YU    00001140    0043    00220709    7/1/2000      10       METTLER AB54-SRS BALANCE      1,770         1,639         131   
0001    YU    00001140    0043    00220710    7/1/2000      10       SPECTRONICS XL-1500 UV CR      1,628         1,508         120   
0001    YU    00001140    0043    00220712    7/1/2000      10       JOUAN CR422 CENTRIFUGE S/      10,123         9,362         761   
0001    YU    00001140    0043    00220713    7/1/2000      10       JOUAN CR422 CENTRIFUGE S/      10,123         9,362         761   
0001    YU    00001140    0043    00220994    8/1/2000      10       EPPENDORF 5417R REFRIGERA      5,355         4,914         441   
0001    YU    00001140    0043    00220995    8/1/2000      10       EPPENDORF 5417R REFRIGERA      5,355         4,914         441   
0001    YU    00001140    0043    00220996    8/1/2000      10       ISOTEMP 215 DUAL WATER BA      1,190         1,092         98   
0001    YU    00001140    0043    00221170    8/1/2000      10       5 METTLER TOLEDO BALANCE      10,471         9,598         873   


Dow
Company
Code

   Plant
Code
   Cost Center
Number
   Asset
Class
   Asset
Number
   Capitalization
Date
   Useful
Life
Year
Book
    

Asset Description 1

   Data
Acquisition
Cost
     Accum Depr      Net Book
Value
 
0001    YU    00001140    0043    00221192    8/1/2000      10       HAMILTON HM554S824PB FUME      10,650         9,765         885   
0001    YU    00001140    0043    00221193    8/1/2000      10       HAMILTON HM554S824PB FUME      10,650         9,765         885   
0001    YU    00001140    0043    00221299    2/1/2000      10       M FLEX DRIVE L/S 1-100RPM      15,240         14,733         507   
0001    YU    00001140    0043    00221300    2/1/2000      10       LS EASY LOAD II PUMP HEAD      8,206         7,937         269   
0001    YU    00001140    0043    00221685    9/1/2000      10       GENETIX QP9804 COLONY PIC      103,160         93,705         9,455   
0001    YU    00001140    0043    00221762    5/1/1984      3       STERILGUARD HOOD S/N 5622      1,342         1,342         0   
0001    YU    00001140    0043    00221770    2/1/2000      10       steris sterilizer 24x36x6      91,686         88,634         3,052   
0001    YU    00001140    0043    00222273    10/1/2000      10       FISHER 117 LABCONCO VACUU      3,296         2,972         324   
0001    YU    00001140    0043    00222275    10/1/2000      10       MJ RESEARCH ALS-1296 ALPH      2,041         1,836         205   
0001    YU    00001140    0043    00222276    10/1/2000      10       MJ RESEARCH ALS-1296 ALPH      2,041         1,836         205   
0001    YU    00001140    0043    00222277    10/1/2000      10       MJ RESEARCH ALS-1296 ALPH      2,041         1,836         205   
0001    YU    00001140    0043    00222278    10/1/2000      10       MJ RESEARCH ALSH 2384 ALP      3,317         2,989         328   
0001    YU    00001140    0043    00222279    10/1/2000      10       EPPENDORF 5417R REFRIGERA      4,851         4,367         484   
0001    YU    00001140    0043    00222280    10/1/2000      10       BECKMAN COULTER AVANTI J-      27,644         24,876         2,768   
0001    YU    00001140    0043    00222281    10/1/2000      10       BECKMAN COULTER JLA 8.100      13,221         11,899         1,322   
0001    YU    00001140    0043    00222282    10/1/2000      10       BECKMAN COULTER OPTIMA XL      39,664         35,695         3,969   
0001    YU    00001140    0043    00222283    10/1/2000      10       BECKMAN COULTER TY-70TI R      9,615         8,658         957   


Dow
Company
Code

   Plant
Code
   Cost Center
Number
   Asset
Class
   Asset
Number
   Capitalization
Date
   Useful
Life
Year
Book
    

Asset Description 1

   Data
Acquisition
Cost
     Accum Depr      Net Book
Value
 
0001    YU    00001140    0043    00222284    10/1/2000      10       BECKMAN COULTER SW-28 ROT      9,615         8,658         957   
0001    YU    00001140    0043    00222285    10/1/2000      10       BECKMAN COULTER SW-41TI R      10,817         9,739         1,078   
0001    YU    00001140    0043    00222286    10/1/2000      10       BECKMAN COULTER 100TI ROT      9,615         8,658         957   
0001    YU    00001140    0043    00222661    10/1/2000      10       PYREX LAB LASSARE FOR 550      8,857         7,975         882   
0001    YU    00001140    0043    00222663    10/1/2000      10       FIHER UV TRANSILLUMINATOR      1,620         1,459         161   
0001    YU    00001140    0043    00222664    10/1/2000      10       EPPENDORF 5810R CENTRIFUG      15,694         14,124         1,570   
0001    YU    00001140    0043    00222665    10/1/2000      10       REVCO ULTIMA II UPRT 86 F      1,744         1,568         176   
0001    YU    00001140    0043    00222727    10/1/2000      10       2700 D SELECT BIOCHEM ANA      17,907         16,120         1,787   
0001    YU    00001140    0043    00223290    11/1/2000      10       SPECTRONIC INSTR FA078 FR      21,782         19,422         2,360   
0001    YU    00001140    0043    00223294    11/1/2000      10       REVCO ULTIMA II FREEZER S      9,421         8,401         1,020   
0001    YU    00001140    0043    00223387    12/1/2000      10       ALPHA INNOTECH GEL IMAGIN      18,313         16,175         2,138   
0001    YU    00001140    0043    00223388    12/1/2000      10       ALPHA INNOTECH GEL IMAGIN      18,313         16,175         2,138   
0001    YU    00001140    0043    00223530    12/1/2000      10       VIRTEK SDDC-2 ARRAYER SYS      65,439         57,796         7,643   
0001    YU    00001140    0043    00224911    12/1/2000      10       DIONEX ED50 ELECTROCHEMIC      12,615         11,148         1,467   
0001    YU    00001140    0043    00225206    12/1/2000      10       MALDI REFLECTROM MASS SPE      221,396         195,518         25,878   
0001    YU    00001140    0043    00225256    12/1/2000      10       20L SP 99169 FERMENTOR      67,279         59,247         8,032   
0001    YU    00001140    0043    00225257    12/1/2000      10       20L SP 99169 FERMENTOR      67,279         59,247         8,032   


Dow
Company
Code

   Plant
Code
   Cost Center
Number
   Asset
Class
   Asset
Number
   Capitalization
Date
   Useful
Life
Year
Book
    

Asset Description 1

   Data
Acquisition
Cost
     Accum Depr      Net Book
Value
 
0001    YU    00001140    0043    00225258    12/1/2000      10       20L SP 99307 FERMENTOR      67,279         59,247         8,032   
0001    YU    00001140    0043    00225261    12/1/2000      10       20L SP 99307 FERMENTOR      67,279         59,247         8,032   
0001    YU    00001140    0043    00225262    12/1/2000      10       20L SP 99307 FERMENTOR      67,239         59,210         8,029   
0001    YU    00001140    0043    00225263    12/1/2000      10       20L SP 99307 FERMENTOR      67,239         59,210         8,029   
0001    YU    00001140    0043    00225648    12/1/2000      10       AGILENT 2440AA LC/MSD TRA      161,471         142,634         18,837   
0001    YU    00001140    0043    00225649    12/1/2000      10       AGILENT 1600A CAPILLARY E      40,368         35,662         4,706   
0001    YU    00001140    0043    00225651    12/1/2000      10       APPLIED BIOSYSTEMS 3100 D      157,576         139,101         18,475   
0001    YU    00001140    0043    00225916    12/1/2000      10       KUHNER SM1501-A SHAKING I      22,925         20,238         2,687   
0001    YU    00001140    0043    00225917    12/1/2000      10       KUHNER SM1501-B SHAKING I      22,925         20,238         2,687   
0001    YU    00001140    0043    00225918    12/1/2000      10       KUHNER SM1501-C SHAKING I      22,941         20,254         2,687   
0001    YU    00001140    0043    00225919    12/1/2000      10       KUHNER SM1503-A SHAKING I      30,396         26,842         3,554   
0001    YU    00001140    0043    00225920    12/1/2000      10       KUHNER SM1503-B SHAKING I      30,396         26,842         3,554   
0001    YU    00001140    0043    00225921    12/1/2000      10       KUHNER SM1503-C SHAKING I      30,396         26,842         3,554   
0001    YU    00001140    0043    00225937    11/17/2000      10       Pellicon Filter;P17508;Mi      1,885         1,885         0   
0001    YU    00001140    0043    00225939    11/17/2000      10       Peristaltic Pump;101 U/R      3,771         3,771         0   
0001    YU    00001140    0043    00225940    11/17/2000      10       Peristaltic Pump and acce      2,828         2,828         0   
0001    YU    00001140    0043    00225960    11/17/2000      10       Pipet-aid;Drummond Scient      2,828         2,828         0   


Dow
Company
Code

   Plant
Code
   Cost Center
Number
   Asset
Class
   Asset
Number
   Capitalization
Date
   Useful
Life
Year
Book
    

Asset Description 1

   Data
Acquisition
Cost
     Accum Depr      Net Book
Value
 
0001    YU    00001140    0043    00226017    11/17/2000      10       Air pressure gauge, 0 - 0      566         566         0   
0001    YU    00001140    0043    00226028    11/17/2000      10       Balance;AG245;Mettler      3,771         3,331         440   
0001    YU    00001140    0043    00226029    11/17/2000      10       Balance;PB1502;Mettler      4,714         4,161         553   
0001    YU    00001140    0043    00226030    11/17/2000      10       Balance;PR5002;Mettler To      1,885         1,670         215   
0001    YU    00001140    0043    00226031    11/17/2000      10       Balance;Scout-;SC6010;Oha      1,885         1,670         215   
0001    YU    00001140    0043    00226032    11/17/2000      10       Balance;BB2400;BB2400;Met      943         943         0   
0001    YU    00001140    0043    00226042    11/17/2000      10       BPG 140/500 Column;Amersh      20,887         18,452         2,435   
0001    YU    00001140    0043    00226043    11/17/2000      10       BPG 140/500 Column;Amersh      20,887         18,452         2,435   
0001    YU    00001140    0043    00226044    11/17/2000      10       BPG Column;140/500;Amersh      7,542         6,663         879   
0001    YU    00001140    0043    00226048    11/17/2000      10       Centrifuge;Avanti;J-25;Be      75,419         66,622         8,797   
0001    YU    00001140    0043    00226050    11/17/2000      10       Chamber pressure gauge (0      566         566         0   
0001    YU    00001140    0043    00226051    11/17/2000      10       Chamber pressure gauge, -      566         566         0   
0001    YU    00001140    0043    00226054    11/17/2000      10       Circulating water bath;Ma      18,855         16,651         2,204   
0001    YU    00001140    0043    00226066    11/17/2000      10       Compressed air pressure g      566         566         0   
0001    YU    00001140    0043    00226067    11/17/2000      10       Compressed air pressure g      566         566         0   
0001    YU    00001140    0043    00226068    11/17/2000      10       Compressed air pressure g      566         566         0   
0001    YU    00001140    0043    00226069    11/17/2000      10       Compressed air tank gauge      566         566         0   


Dow
Company
Code

   Plant
Code
   Cost Center
Number
   Asset
Class
   Asset
Number
   Capitalization
Date
   Useful
Life
Year
Book
    

Asset Description 1

   Data
Acquisition
Cost
     Accum Depr      Net Book
Value
 
0001    YU    00001140    0043    00226070    11/17/2000      10       Compressed air tank press      566         566         0   
0001    YU    00001140    0043    00226074    11/17/2000      10       Constant temperature oven      5,656         5,656         0   
0001    YU    00001140    0043    00226075    11/17/2000      10       Continuous Flow Centrifug      5,656         5,656         0   
0001    YU    00001140    0043    00226089    11/17/2000      10       Diode-array Detector;HP 1      566         505         61   
0001    YU    00001140    0043    00226180    11/17/2000      10       Laboratory Vacuum Pump an      3,771         3,771         0   
0001    YU    00001140    0043    00226182    11/17/2000      10       Labscale TFF System;Milli      943         943         0   
0001    YU    00001140    0043    00226197    11/17/2000      10       Magnetic stirrer;12in;S47      2,828         2,828         0   
0001    YU    00001140    0043    00226198    11/17/2000      10       Magnetic stirrer;12in;S47      2,828         2,828         0   
0001    YU    00001140    0043    00226199    11/17/2000      10       MasterFlex I/P pump;Milli      2,828         2,828         0   
0001    YU    00001140    0043    00226213    11/17/2000      10       Multi-Blok Heater;2053;La      3,771         3,771         0   
0001    YU    00001140    0043    00226217    11/17/2000      10       Nitrogen pressure gauge,      566         566         0   
0001    YU    00001140    0043    00226218    11/17/2000      10       Nitrogen pressure gauge,      566         566         0   
0001    YU    00001140    0043    00226219    11/17/2000      10       Nitrogen pressure gauge,      566         566         0   
0001    YU    00001140    0043    00226226    11/17/2000      10       Outlet pressure gauge, 0      566         566         0   
0001    YU    00001140    0043    00226231    11/17/2000      10       Pressure regulator gauge      943         943         0   
0001    YU    00001140    0043    00226234    11/17/2000      10       Pressure regulator gauge,      566         566         0   
0001    YU    00001140    0043    00226235    11/17/2000      10       Pressure regulator gauge,      566         566         0   


Dow
Company
Code

   Plant
Code
   Cost Center
Number
   Asset
Class
   Asset
Number
   Capitalization
Date
   Useful
Life
Year
Book
    

Asset Description 1

   Data
Acquisition
Cost
     Accum Depr      Net Book
Value
 
0001    YU    00001140    0043    00226237    11/17/2000      10       Pressure regulator gauge,      566         566         0   
0001    YU    00001140    0043    00226238    11/17/2000      10       Pressure regulator gauge,      566         566         0   
0001    YU    00001140    0043    00226239    11/17/2000      10       Pressure Regulator gauge      943         943         0   
0001    YU    00001140    0043    00226247    11/17/2000      10       Pump, Low Flow 32 RPM;101      2,828         2,828         0   
0001    YU    00001140    0043    00226254    11/17/2000      10       Refrigerator / Freezer;H      7,542         6,663         879   
0001    YU    00001140    0043    00226256    11/17/2000      10       Refrigerated Incubator sh      9,427         9,427         0   
0001    YU    00001140    0043    00226263    11/17/2000      10       Refrigerator, 2 - 8 Degre      5,656         4,999         657   
0001    YU    00001140    0043    00226276    11/17/2000      10       Sonifier;450;Branson      3,771         3,771         0   
0001    YU    00001140    0043    00226295    11/17/2000      10       Stirrer;overhead;Wheaton      3,771         3,771         0   
0001    YU    00001140    0043    00226297    11/17/2000      10       Super Fraction Collector;      2,828         2,828         0   
0001    YU    00001140    0043    00226362    11/17/2000      10       Thermostatted Autosampler      566         505         61   
0001    YU    00001140    0043    00226363    11/17/2000      10       Thermostatted Column Comp      566         505         61   
0001    YU    00001140    0043    00226368    11/17/2000      10       Ultralow Temperature Free      13,198         11,660         1,538   
0001    YU    00001140    0043    00226372    11/17/2000      10       Vaccum pressure gauge, -      566         566         0   
0001    YU    00001140    0043    00226374    11/17/2000      10       Vacuum Degasser;HP 1100;H      566         505         61   
0001    YU    00001140    0043    00226382    11/17/2000      10       Vacuum Pump and Compresso      2,828         2,828         0   
0001    YU    00001140    0043    00226390    11/17/2000      10       Vortex;Genie 2;G-560;Fiso      2,828         2,828         0   


Dow
Company
Code

   Plant
Code
   Cost Center
Number
   Asset
Class
   Asset
Number
   Capitalization
Date
   Useful
Life
Year
Book
    

Asset Description 1

   Data
Acquisition
Cost
     Accum Depr      Net Book
Value
 
0001    YU    00001140    0043    00226391    11/17/2000      10       Vortex Mixer;Genie 2;VWR      943         943         0   
0001    YU    00001140    0043    00226395    11/17/2000      10       Vortex-Genie 2;G-560;VWR      2,828         2,500         328   
0001    YU    00001140    0043    00226399    11/17/2000      10       Water Bath;VWR Scientifc      943         833         110   
0001    YU    00001140    0043    00227286    12/1/2000      10       NIKON E800 MICROSCOPE S/N      61,574         54,388         7,186   
0001    YU    00001140    0043    00227287    12/1/2000      10       NIKON E600 MICROSCOPE S/N      27,988         24,725         3,263   
0001    YU    00001140    0043    00227289    12/1/2000      10       SAVANT RVT400-115 REFREIG      4,951         4,373         578   
0001    YU    00001140    0043    00227290    12/1/2000      10       SAVANT OFP400-115 VACUUM      7,427         6,564         863   
0001    YU    00001140    0043    00227292    12/1/2000      10       SAVANT SPD111V-115 SPEEDV      7,427         6,564         863   
0001    YU    00001140    0043    00227293    12/1/2000      10       SAVANT CONCENTRATOR S/N:O      20,795         18,360         2,435   
0001    YU    00001140    0043    00227466    12/1/2000      10       SPECTRAMAX PLUS 384 MICRO      23,273         20,546         2,727   
0001    YU    00001140    0043    00227469    12/1/2000      10       AGILENT G 1322 HPLC      93,767         82,831         10,936   
0001    YU    00001140    0043    00227470    12/1/2000      10       AGILENT UV-VIS SPECTROPHO      23,442         20,707         2,735   
0001    YU    00001140    0043    00227471    12/1/2000      10       AGILENT HP 6890 GC S/N:US      50,233         44,373         5,860   
0001    YU    00001140    0043    00227503    12/1/2000      10       STERIS CENTURY SCIENTIFIC      51,908         45,833         6,075   
0001    YU    00001140    0043    00227585    1/1/2001      10       SP99169-20L FERMENTORS W/      89,538         78,347         11,191   
0001    YU    00001140    0043    00227586    1/1/2001      10       SP99169-20L FERMENTORS W/      89,538         78,347         11,191   
0001    YU    00001140    0043    00227587    1/1/2001      10       SP99169-20L FERMENTORS W/      89,538         78,347         11,191   


Dow
Company
Code

   Plant
Code
   Cost Center
Number
   Asset
Class
   Asset
Number
   Capitalization
Date
   Useful
Life
Year
Book
    

Asset Description 1

   Data
Acquisition
Cost
     Accum Depr      Net Book
Value
 
0001    YU    00001140    0043    00227588    1/1/2001      10       SP99169-20L FERMENTORS W/      89,538         78,347         11,191   
0001    YU    00001140    0043    00227589    1/1/2001      10       SP99169-20L FERMENTORS W/      90,511         79,196         11,315   
0001    YU    00001140    0043    00227590    1/1/2001      10       SP99169-20L FERMENTORS W/      90,511         79,196         11,315   
0001    YU    00001140    0043    00227591    1/1/2001      10       SP99169-20L FERMENTORS W/      90,511         79,196         11,315   
0001    YU    00001140    0043    00227592    1/1/2001      10       SP99169-20L FERMENTORS W/      90,511         79,196         11,315   
0001    YU    00001140    0043    00227593    1/1/2001      10       SP99169-20L FERMENTORS CU      82,726         72,390         10,336   
0001    YU    00001140    0043    00227594    1/1/2001      10       SP99169-20L FERMENTORS CU      82,726         72,390         10,336   
0001    YU    00001140    0043    00228118    1/1/2001      10       OMEGA DR231012010A4-M1-C2      7,780         6,810         970   
0001    YU    00001140    0043    00229344    3/1/2001      10       FISHER HAMILTON SAFE AIRE      7,705         6,617         1,088   
0001    YU    00001140    0043    00229360    3/1/2001      10       FISHER 307C INCUBATOR S/N      2,744         2,355         389   
0001    YU    00001140    0043    00229361    3/1/2001      10       FISHER 307C INCUBATOR S/N      2,744         2,355         389   
0001    YU    00001140    0043    00229362    3/1/2001      10       REVCO ULT21869D34 UPRIGHT      9,078         7,795         1,283   
0001    YU    00001140    0043    00229363    3/1/2001      10       BUCHI R124C24PB481 ROTVAP      6,544         5,616         928   
0001    YU    00001140    0043    00229678    3/1/2001      10       STANDARD BIOPROCESS SYSTE      152,090         141,231         10,859   
0001    YU    00001140    0043    00229717    1/1/2001      10       FREEZER MODEL ULT2586-93,      8,078         7,527         551   
0001    YU    00001140    0043    00229718    1/1/2001      10       REFRIGERATOR MODEL REL230      4,252         3,962         290   
0001    YU    00001140    0043    00229720    1/1/2001      10       FREEZER MODEL ULT2330D18,      4,677         4,358         319   


Dow
Company
Code

   Plant
Code
   Cost Center
Number
   Asset
Class
   Asset
Number
   Capitalization
Date
   Useful
Life
Year
Book
    

Asset Description 1

   Data
Acquisition
Cost
     Accum Depr      Net Book
Value
 
0001    YU    00001140    0043    00229721    1/1/2001      10       FREEZER MODEL ULT2586-93,      8,078         7,527         551   
0001    YU    00001140    0043    00229722    1/1/2001      10       FREEZER MODEL ULT2330D18,      4,677         4,358         319   
0001    YU    00001140    0043    00229723    1/1/2001      10       FREEZER MODEL ULT2330D18,      4,677         4,358         319   
0001    YU    00001140    0043    00229817    3/1/2001      10       INCUBATOR 50/60, 220V, MO      3,610         3,353         257   
0001    YU    00001140    0043    00230034    5/1/2001      10       APC MATRIX 500VA EXTENDED      4,116         3,467         649   
0001    YU    00001140    0043    00230035    5/1/2001      10       APC MATRIX 500VA EXTENDED      4,116         3,467         649   
0001    YU    00001140    0043    00230200    5/1/2001      10       AIR LOGIC CHEMICAL HOOD F      140,463         118,381         22,082   
0001    YU    00001140    0043    00230491    7/1/2001      10       WESTFALIA SC 6-06-576 POL      200,520         165,429         35,091   
0001    YU    00001140    0043    00231720    5/1/2001      10       METTLER AX105DR BALANCE A      6,443         5,963         481   
0001    YU    00001140    0043    00231726    8/1/2001      10       FISHER ADA FUMEHOOD S/N:      7,246         5,923         1,323   
0001    YU    00001140    0043    00231727    8/1/2001      10       FISHER ADA FUMEHOOD S/N:      7,246         5,923         1,323   
0001    YU    00001140    0043    00232815    7/1/2001      10       STANDARD BIOPROCESS SYSTE      114,934         94,820         20,114   
0001    YU    00001140    0043    00232816    7/1/2001      10       AKTA EXPLOER SYSTEM S/N:5      70,237         57,950         12,287   
0001    YU    00001140    0043    00232817    7/1/2001      10       AKTA EXPLOER SYSTEM      70,237         57,950         12,287   
0001    YU    00001140    0043    00232900    8/1/2001      10       CUSTOM CHEMICAL HOOD FOR      114,310         93,356         20,954   
0001    YU    00001140    0043    00232905    3/1/2001      10       MICROFLUIDIZER M 11 OY S/      29,138         25,013         4,125   
0001    YU    00001140    0043    00233085    10/1/2001      10       SANYO MPR 1410 DBL DOOR L      3,887         3,112         775   


Dow
Company
Code

   Plant
Code
   Cost Center
Number
   Asset
Class
   Asset
Number
   Capitalization
Date
   Useful
Life
Year
Book
    

Asset Description 1

   Data
Acquisition
Cost
     Accum Depr      Net Book
Value
 
0001    YU    00001140    0043    00233136    9/1/2001      10       NIRO CERAMIC MICROFILTRAT      172,228         139,122         33,106   
0001    YU    00001140    0043    00233240    9/1/2001      10       DNA PTC-0200 ENGINE CHASI      5,587         4,519         1,068   
0001    YU    00001140    0043    00233409    10/1/2001      10       GENESIS 25 PUPER ES PILOT      41,092         32,872         8,220   
0001    YU    00001140    0043    00233565    10/1/2001      10       EPPENDORF 5810R EPPENDORF      10,056         8,051         2,005   
0001    YU    00001140    0043    00236711    10/1/2001      10       SANYO MPR 1410 DBL DOOR L      3,887         3,112         775   
0001    YU    00001140    0043    00237072    11/1/2001      10       MTPC 144 CONVIRON PLANT P      153,541         121,557         31,984   
0001    YU    00001140    0043    00237073    11/1/2001      10       MTPC 144 CONVIRON PLANT P      153,541         121,557         31,984   
0001    YU    00001140    0043    00237101    11/1/2001      10       PTC 2200 THERMAL CYCLER      10,601         8,392         2,209   
0001    YU    00001140    0043    00237102    11/1/2001      10       ALD 1233 DNA ENGINE      5,114         4,047         1,067   
0001    YU    00001140    0043    00237685    11/1/2001      10       REVCO ULT2586-9-A35 FREEZ      8,735         6,921         1,814   
0001    YU    00001140    0043    00237688    11/1/2001      10       METTLER TOLEDO AX504 ANAL      5,261         4,166         1,095   
0001    YU    00001140    0043    00237689    11/1/2001      10       METTLER TOLEDO HR73 MOIST      4,305         3,407         898   
0001    YU    00001140    0043    00238184    12/1/2001      10       PL ELS EVAPORATIVE LIGHT      14,074         11,022         3,052   
0001    YU    00001140    0043    00238720    12/1/2001      10       BROOKFIELD RS CPS P1 CONE      17,399         13,630         3,769   
0001    YU    00001140    0043    00238980    12/1/2001      10       TAYLOR WHARTON 24K SRYOST      13,765         10,781         2,984   
0001    YU    00001140    0043    00238984    12/1/2001      10       TECAN POSID V2 RSP 150      23,650         18,480         5,170   
0001    YU    00001140    0043    00238988    12/1/2001      10       VIRTIS DOUBLE TIER MANIFO      1,728         1,357         371   


Dow
Company
Code

   Plant
Code
   Cost Center
Number
   Asset
Class
   Asset
Number
   Capitalization
Date
   Useful
Life

Year
Book
    

Asset Description 1

   Data
Acquisition
Cost
     Accum Depr      Net Book
Value
 
0001    YU    00001140    0043    00238990    12/1/2001      10       THERMO FORMA 983 DOUBLE D      8,580         6,721         1,859   
0001    YU    00001140    0043    00238992    12/1/2001      10       THERMO FORMA 195051 DELUX      2,145         1,685         460   
0001    YU    00001140    0043    00238996    12/1/2001      10       FISHER SCIENTIFIC BIOPHOT      3,137         2,461         676   
0001    YU    00001140    0043    00239001    12/1/2001      10       GENOMIC SOLUTIONS INVESTI      11,984         9,386         2,598   
0001    YU    00001140    0043    00239692    12/1/2001      10       PRESTO LABEL WORKSTATION      23,667         18,542         5,125   
0001    YU    00001140    0043    00239934    1/1/2002      10       INOX 200L JACKETED MIX TA      14,231         11,031         3,200   
0001    YU    00001140    0043    00239935    1/1/2002      10       INOX 500L JACKETED MIX TA      18,972         14,702         4,270   
0001    YU    00001140    0043    00240071    1/1/2002      10       NORTHSTAR GD403 GLASSWARE      45,370         35,161         10,209   
0001    YU    00001140    0043    00240082    1/1/2002      10       SARTORIUS ANALYTICAL BALA      2,433         1,883         550   
0001    YU    00001140    0043    00240358    2/1/2002      10       PURETEC DI WATER SYSTEM F      42,796         32,815         9,981   
0001    YU    00001140    0043    00240415    1/1/2002      10       HP-1100 REFRACTIVE INDEX      7,051         7,051         0   
0001    YU    00001140    0043    00240560    3/1/2002      10       INNOVA 4000 INCUBATOR BEN      5,528         4,193         1,335   
0001    YU    00001140    0043    00240563    3/1/2002      10       SANYO MPR-720R SINGLE DOO      3,514         2,662         852   
0001    YU    00001140    0043    00240965    4/1/2002      10       REVCO ULTIMA II-80C FREEZ      8,481         6,362         2,119   
0001    YU    00001140    0043    00242481    6/1/2002      10       DNA ENGINE CHASSIS SN: EN      5,539         4,064         1,475   
0001    YU    00001140    0043    00242483    6/1/2002      10       ALPHA ENGINE 30/48 DUAL S      2,389         1,755         634   
0001    YU    00001140    0043    00242679    7/1/2002      10       DYAD CHASSIS SN: DY002029      9,547         6,925         2,622   


Dow
Company
Code

   Plant
Code
   Cost Center
Number
   Asset
Class
   Asset
Number
   Capitalization
Date
   Useful
Life

Year
Book
    

Asset Description 1

   Data
Acquisition
Cost
     Accum Depr      Net Book
Value
 
0001    YU    00001140    0043    00242680    7/1/2002      10       DYAD ALPHA UNIT SN: AL053      2,383         1,729         654   
0001    YU    00001140    0043    00242681    7/1/2002      10       DYAD ALPHA UNIT SN: AI053      2,383         1,728         655   
0001    YU    00001140    0043    00243207    8/1/2002      10       FLUORCHEM 8800 DIGITAL IM      18,077         12,958         5,119   
0001    YU    00001140    0043    00243208    8/1/2002      10       FLUORCHEM 8800 DIGITAL IM      18,077         12,958         5,119   
0001    YU    00001140    0043    00243212    8/1/2002      10       KUHNER ISF-1-W SHAKERINCU      20,644         14,792         5,852   
0001    YU    00001140    0043    00243213    8/1/2002      10       KUHNER ISF-Q-W SHAKERINCU      20,644         14,792         5,852   
0001    YU    00001140    0043    00243214    8/1/2002      10       KUHNER ISF-1-W SHAKERINCU      20,644         14,792         5,852   
0001    YU    00001140    0043    00243215    8/1/2002      10       KUHNER ISF-Q-W SHAKERINCU      20,644         14,792         5,852   
0001    YU    00001140    0043    00243216    8/1/2002      10       KUHNER ISF-1-W SHAKERINCU      20,644         14,792         5,852   
0001    YU    00001140    0043    00243217    8/1/2002      10       KUHNER ISF-1-W SHAKERINCU      20,644         14,792         5,852   
0001    YU    00001140    0043    00243218    8/1/2002      10       KUHNER ISF-1-W SHAKERINCU      20,644         14,792         5,852   
0001    YU    00001140    0043    00243219    8/1/2002      10       KUNER ISF-1-W SHAKERINCUB      20,644         14,792         5,852   
0001    YU    00001140    0043    00243220    8/1/2002      10       KUHNER ISF-1-W SHAKERINCU      20,644         14,792         5,852   
0001    YU    00001140    0043    00243221    8/1/2002      10       KUHNER ISF-1-W SHAKERINCU      20,644         14,793         5,851   
0001    YU    00001140    0043    00244228    10/1/2002      10       JULABO F34/MD CIRCULATOR      3,833         2,683         1,150   
0001    YU    00001140    0043    00244234    10/1/2002      10       AGILENT G1312A 1100 SERIE      13,382         9,368         4,014   
0001    YU    00001140    0043    00244235    10/1/2002      10       AGILENT G1379A 1100 SERIE      3,143         2,198         945   


Dow
Company
Code

   Plant
Code
   Cost Center
Number
   Asset
Class
   Asset
Number
   Capitalization
Date
   Useful
Life

Year
Book
    

Asset Description 1

   Data
Acquisition
Cost
     Accum Depr      Net Book
Value
 
0001    YU    00001140    0043    00244236    10/1/2002      10       AGILENT G1313A 1100 SERIE      11,245         7,877         3,368   
0001    YU    00001140    0043    00244237    10/1/2002      10       AGILENT G1365B 1100 SERIE      11,921         8,345         3,576   
0001    YU    00001140    0043    00245890    12/1/2002      10       GENESIS FREEDOM 200 TEMO      293,020         200,233         92,787   
0001    YU    00001140    0043    00245924    11/1/2002      10       GEA 1000 LITER BATCH TANK      17,549         12,135         5,414   
0001    YU    00001140    0043    00246351    12/1/2002      10       SPAN 8 SINGLE PACKAGED BF      117,540         80,267         37,273   
0001    YU    00001140    0043    00246381    12/1/2002      10       GENE TAC HYDRIDIZATION ST      57,825         39,492         18,333   
0001    YU    00001140    0043    00247313    11/1/2002      10       GENETIX QFILL2 SN: 799      7,638         5,285         2,353   
0001    YU    00001140    0043    00247516    12/1/2002      10       DIONEX AS40 AUTOMATED SAM      11,207         7,661         3,546   
0001    YU    00001140    0043    00247523    11/1/2002      10       PERISTALIC PUMP, MODEL #7      5,023         4,511         512   
0001    YU    00001140    0043    00247712    12/1/2002      10       AMERSHAM BIOSCIENCES CHRO      27,137         18,319         8,818   
0001    YU    00001140    0043    00247749    1/1/2003      10       DELTA V 20L FERNENTORS BA      48,924         33,023         15,901   
0001    YU    00001140    0043    00248051    8/1/2000      10       U LINE UNDERCOUNTER REFRI      10,001         9,167         834   
0001    YU    00001140    0043    00249556    1/1/2001      10       AKTA EXPLORER 10 SYSTEM 1      45,711         39,998         5,713   
0001    YU    00001140    0043    00250863    6/1/2001      10       CENTRIFUGE, FLOOR MODELJ2      3,648         3,042         606   
0001    YU    00001140    0043    00252083    8/1/2003      10       NIKON TS100 INVERTED      6,111         3,770         2,341   
0001    YU    00001140    0043    00252103    7/1/2003      10       QIAGEN 4-15C CENTRIFUGE      8,720         5,452         3,268   
0001    YU    00001140    0043    00252104    7/1/2003      10       QIAGEN 2X96 PLATE ROTOR      969         606         363   


Dow
Company
Code

   Plant
Code
   Cost Center
Number
   Asset
Class
   Asset
Number
   Capitalization
Date
   Useful
Life

Year
Book
    

Asset Description 1

   Data
Acquisition
Cost
     Accum Depr      Net Book
Value
 
0001    YU    00001140    0043    00252139    8/1/2003      10       JOUAN IGO5OR STACKED      7,299         4,504         2,795   
0001    YU    00001140    0043    00252140    9/1/2003      10       ARIETE NS2006H NIRO-      36,949         22,479         14,470   
0001    YU    00001140    0043    00252434    10/1/2003      10       THERMO FORMA 2-8C REFRIG.      5,794         5,109         685   
0001    YU    00001140    0043    00252824    9/1/2003      10       WAVE BIOREACTOR ROCKER      3,484         3,077         407   
0001    YU    00001140    0043    00252826    9/1/2003      10       BIOLOGICAL SAFETY CABINET      5,323         4,701         621   
0001    YU    00001140    0043    00252830    9/1/2003      10       AKTA EXPLORER W/ CONTROL      81,357         71,845         9,512   
0001    YU    00001140    0043    00252831    9/1/2003      10       OSMOMETER MICRO      6,000         5,299         701   
0001    YU    00001140    0043    00252836    9/1/2003      10       CONDUCTIVITY METER W/      1,032         911         121   
0001    YU    00001140    0043    00252837    9/1/2003      10       PERPHECT PH ORION METER      1,032         911         121   
0001    YU    00001140    0043    00252842    9/1/2003      10       TABLE ORBITAL SHAKER      3,097         2,734         363   
0001    YU    00001140    0043    00252957    11/1/2003      10       AGILENT 1100 SERIES      12,314         7,284         5,030   
0001    YU    00001140    0043    00253061    11/1/2003      10       GEA-NIRO SOAVI NS 100 1L      15,723         9,284         6,439   
0001    YU    00001140    0043    00253829    12/1/2003      10       GEA NIRO CONTROL PANEL      15,862         9,244         6,618   
0001    YU    00001140    0043    00253830    12/1/2003      10       GEA NIRO FEED PUMP      2,974         1,732         1,242   
0001    YU    00001140    0043    00253832    12/1/2003      10       GEA NIRO LOOP CONTROLLER      1,239         724         515   
0001    YU    00001140    0043    00253833    12/1/2003      10       GEA NIRO INLET GUAGEW      991         577         414   
0001    YU    00001140    0043    00254083    12/1/2003      10       AGILENT 1100 VARIABLE      3,333         1,945         1,388   


Dow
Company
Code

   Plant
Code
   Cost Center
Number
   Asset
Class
   Asset
Number
   Capitalization
Date
   Useful
Life

Year
Book
    

Asset Description 1

   Data
Acquisition
Cost
     Accum Depr      Net Book
Value
 
0001    YU    00001140    0043    00254713    1/1/2004      10       MJ RESEARCH DNA ENG.      8,678         4,992         3,686   
0001    YU    00001140    0043    00254714    1/1/2004      10       AGILENT 1100 UV LC DET      6,509         3,744         2,765   
0001    YU    00001140    0043    00254715    1/1/2004      10       AGILENT 1100 UV LC DET      6,509         3,744         2,765   
0001    YU    00001140    0043    00254716    1/1/2004      10       MOL. DEV. SKANWASHER 400      6,509         3,744         2,765   
0001    YU    00001140    0043    00254717    1/1/2004      10       AKTA 100 EXPLORER      78,103         44,911         33,192   
0001    YU    00001140    0043    00255057    2/1/2004      10       MJ RESEARCH OPTICON QPRC      22,599         12,807         9,792   
0001    YU    00001140    0043    00255682    4/1/2004      10       NOVA BP300 BIOPROFILE      32,393         17,817         14,576   
0001    YU    00001140    0043    00263582    10/1/2004      10       MOLECULAR DEVICES SKAN      7,523         3,761         3,762   
0001    YU    00001140    0043    00277032    2/1/2005      10       AMERSHAM      5,565         5,565         0   
0001    YU    00001140    0043    00277033    2/1/2005      10       AMERSHAM      5,565         5,565         0   
0001    YU    00001140    0043    00277053    2/1/2005      10       DASGIP FEDBATCH-PRO (8)      193,034         90,083         102,951   
0001    YU    00001140    0043    00279118    4/1/2005      10       VWR - BIOPHOTOMETER      16,308         7,341         8,967   
0001    YU    00001140    0043    00279119    4/1/2005      10       HARVARD ELECTROPORATOR      7,610         3,425         4,185   
0001    YU    00001140    0043    00279120    4/1/2005      10       SAVANT VAPOR TRAP      3,262         1,468         1,794   
0001    YU    00001140    0043    00279121    4/1/2005      10       FLUORCHEM IMAGING SYSTEM      31,528         14,190         17,338   
0001    YU    00001140    0043    00279122    4/1/2005      10       AVANTI CENTRIFUGE      50,010         22,507         27,503   
0001    YU    00001140    0043    00279134    5/1/2005      10       COLUMN DI/NI      4,551         2,011         2,540   


Dow
Company
Code

   Plant
Code
   Cost Center
Number
   Asset
Class
   Asset
Number
   Capitalization
Date
   Useful
Life

Year
Book
    

Asset Description 1

   Data
Acquisition
Cost
     Accum Depr      Net Book
Value
 
0001    YU    00001140    0043    00279135    5/1/2005      10       COLUMN DI/NI      4,551         2,011         2,540   
0001    YU    00001140    0043    00279136    5/1/2005      10       FIXED ANGLE ROTOR W/LID      6,427         2,840         3,587   
0001    YU    00001140    0043    00279137    5/1/2005      10       PORTABLE FLR SCALE W/ ACC      10,181         4,498         5,683   
0001    YU    00001140    0043    00285041    12/1/2005      10       SCI-LOG FILTER -TEC PLUS      13,235         5,075         8,160   
0001    YU    00001140    0043    00285360    12/1/2005      10       MIRCROREACTOR TECHNOLOGIE      185,690         71,181         114,509   
0001    YU    00001140    0043    00285686    1/1/2006      10       AVANTI ROTOR ASSEMBLY      9,141         3,428         5,713   
0001    YU    00001140    0043    00285759    1/1/2006      10       CALIPER LABCHIP 90      75,910         28,467         47,443   
0001    YU    00001140    0043    00297271    11/1/2006      10       DASGIP FEDBATCH-PRO      241,483         70,433         171,050   
0001    YU    00001140    0043    00297272    12/1/2006      10       CALIPER LABCHIP 90 SYSTEM      80,424         22,786         57,638   
0001    YU    00001140    0043    00298716    11/1/2006      10       TS SERIES BENCHTOP CELL      39,894         11,636         28,258   
0001    YU    00001140    0043    00299932    1/1/2007      10       FORTEBIO OCTET SYSTEM      97,573         26,831         70,742   
0001    YU    00001140    0043    00299978    1/1/2007      10       BRANSON ULTRASONICS      3,238         892         2,346   
0001    YU    00001140    0043    00300028    1/1/2007      10       SARTORIUS SARTOCON SLICE      11,290         3,104         8,186   
0001    YU    00001140    0043    00304180    11/1/2000      10       BIOFLO 3000 TMC FERMENTOR      40,801         36,381         4,420   
0001    YU    00001140    0043    00304181    11/1/2000      10       BIOFLO 3000 TMC FERMENTOR      40,801         36,381         4,420   
0001    YU    00001140    0043    00304705    6/1/2007      10       CELLERATOR U-24 CHANGED      32,325         7,544         24,781   
0001    YU    00001140    0043    00304706    7/1/2007      10       DASGIP1 TOP DRIVE      91,598         20,611         70,987   


Dow
Company
Code

   Plant
Code
   Cost Center
Number
   Asset
Class
   Asset
Number
   Capitalization
Date
   Useful
Life

Year
Book
    

Asset Description 1

   Data
Acquisition
Cost
     Accum Depr      Net Book
Value
 
0001    YU    00001140    0043    00304871    7/1/2007      10       BIORAD TETRAD PT240G      24,879         5,598         19,281   
0001    YU    00001140    0043    00305639    8/1/2007      10       WYATT TECHNOLOGIES      93,583         20,277         73,306   
0001    YU    00001140    0043    00305653    8/1/2007      10       BECKMAN COULTER      3,860         835         3,025   
0001    YU    00001140    0043    00309914    1/1/2008      10       SPECTRAMAX M2E      57,598         10,081         47,517   
0001    YU    00001140    0043    00310319    1/1/2008      10       SCINOMIX AUTOMATED      89,628         15,686         73,942   
0001    YU    00001140    0043    00310396    1/1/2008      10       DASGIP      78,511         13,740         64,771   
0001    YU    00001140    0043    00313432    6/1/2008      10       4-BOWL SUPER Q WATER SYST      21,326         2,846         18,480   
0001    YU    00001140    0043    00313433    6/1/2008      10       CHROMATOGRAPHY CLEAN RM      21,326         2,846         18,480   
0001    YU    00001140    0047    00225633    12/1/2000      10       AKTA EXPLORER 100 COMPAC      82,992         73,297         9,695   
0001    YU    00001140    0047    00225634    12/1/2000      10       AKTA EXPLORER 10 W/P950-F      67,902         59,971         7,931   
0001    YU    00001140    0047    00226414    11/17/2000      10       Printer;LC-P45;Mettler To      377         335         42   
0001    YU    00001140    0047    00226415    11/17/2000      10       Programmable Power Supply      2,828         2,500         328   
0001    YU    00001140    0047    00226416    11/17/2000      10       Programmable Power Supply      2,828         2,828         0   
0001    YU    00001140    0047    00226417    11/17/2000      10       Programmable Power Supply      2,828         2,500         328   
0001    YU    00001140    0047    00241938    5/1/2002      10       DELL POWEREDGE 1500SC COM      3,388         2,515         873   
0001    YU    00001140    0047    00252627    11/1/2003      5       DELL OPTIPLEX GX270T      1,240         1,240         0   
0001    YU    00001140    0047    00252628    11/1/2003      5       DELL OPTIPLEX GX270T      1,240         1,240         0   


Dow
Company
Code

   Plant
Code
   Cost Center
Number
   Asset
Class
   Asset
Number
   Capitalization
Date
   Useful
Life

Year
Book
    

Asset Description 1

   Data
Acquisition
Cost
     Accum Depr      Net Book
Value
 
0001    YU    00001140    0047    00252629    11/1/2003      5       DELL OPTIPLEX GX270T      1,240         1,240         0   
0001    YU    00001140    0047    00252630    11/1/2003      5       DELL OPTIPLEX GX270T      1,240         1,240         0   
0001    YU    00001140    0047    00295295    8/1/2006      5       SYNCSORT BACKUP NETAPP      11,143         7,060         4,083   
0001    YU    00001140    0071    00232804    8/1/2001      14       BUILDING A STEELCASE FURN      332,546         193,984         138,562   
0001    YU    00001140    0071    00248035    3/1/1999      10       LAB FURNITURE POOL 110 CH      33,569         33,569         0   
0001    YU    00001140    0071    00248036    3/1/1999      10       LAB FURNITURE POOL CHAIRS      11,898         11,898         0   
0001    YU    00001140    0071    00248064    9/1/2000      14       OFFICE FURNITURE FOR LOBB      6,083         3,944         2,139   
0001    YU    00001140    0072    00220616    11/1/1998      5       PRESENTATION PROJECTOR      3,020         3,020         0   
0001    YU    00001140    0072    00248028    2/1/1996      3       POSTAGE METER ASCOM HASLE      1,334         1,334         0   
0001    YU    00001140    0072    00248031    7/1/1996      6       OFFICE EQUIPMENT FOLDER      474         474         0   
0001    YU    00001140    0073    00222722    10/1/2000      5       DELL POWEREDGE 1300 PIII      6,137         6,137         0   
0001    YU    00001140    0073    00222726    10/1/2000      5       DELL POWEREDGE 6400 18G      1,611         1,611         0   
0001    YU    00001140    0073    00237106    11/1/2001      3       SQL SERVER NT WINDOWS PRO      3,970         3,970         0   
0001    YU    00001140    0073    00242431    6/1/2002      3       PROXIMA DP 6860 MULTIMEDI      4,972         4,972         0   
0001    YU    00001140    0073    00242484    6/1/2002      3       PROXIMA X350 MULTIMEDIA P      3,636         3,636         0   
0001    YU    00001140    0073    00242485    6/1/2002      3       PROXIMA X350 MULTIMEDIA P      3,636         3,636         0   
0001    YU    00001140    0073    00243176    8/1/2002      10       PROXIMA X350 MULTIMEDIA P      3,438         2,467         971   


Dow
Company
Code

   Plant
Code
   Cost Center
Number
   Asset
Class
   Asset
Number
   Capitalization
Date
   Useful
Life

Year
Book
    

Asset Description 1

   Data
Acquisition
Cost
     Accum Depr      Net Book
Value
 
0001    YU    00001140    0073    00243178    8/1/2002      3       PROXIMA X350 MULTIMEDIA P      3,438         3,438         0   
0001    YU    00001140    0073    00247688    12/1/2002      3       PROXIMA X350 MULTIMEDIA P      3,553         3,553         0   
0001    YU    00001140    0073    00281591    9/1/2005      3       CISPRO CHEMICAL INVENTORY      7,321         7,321         0   
0001    YU    00001140    0073    00284833    12/1/2005      3       SAMSUNG 915N-BLACK 19 IN.      3,845         3,845         0   
0001    YU    00001140    0073    00285808    1/1/2006      5       STORVANTAGE      85,342         64,006         21,336   
0001    YU    00001140    0086    00220372    6/1/2000      5       VECTOR INFORMAX NTI SUITE      30,018         30,018         0   
0001    YU    00001140    0086    00227280    12/1/2000      5       VECTOR NTI SUITE 2.0 SOFT      29,235         29,235         0   
0001    YU    00001140    0086    00230198    5/1/2001      5       DNA SEQUIENCING SOFTWARE      4,498         4,498         0   
0001    YU    00001140    0086    00230199    5/1/2001      5       DNA SEQUIENCING SOFTWARE      4,498         4,498         0   
0001    YU    00001140    0086    00238559    12/1/2001      5       GENEMATHS SOFTWARE VERSIO      7,514         7,514         0   
0001    YU    00001140    0086    00240913    4/1/2002      5       CORELIMS PLUS DBMS SOFTWA      5,297         5,297         0   
0001    YU    00001140    0086    00240914    4/1/2002      5       PHRED INTERFACE SOFTWARE      1,606         1,606         0   
0001    YU    00001140    0086    00240962    4/1/2002      5       PHRAP CROSS MATCH SOFTWAR      4,000         4,000         0   
0001    YU    00001140    0086    00240963    4/1/2002      5       PHRAP OTT SOFTWARE      2,000         2,000         0   
0001    YU    00001140    0086    00242418    6/1/2002      5       SEQUENCHER SOFTWARE      8,998         8,998         0   
0001    YU    00001140    0086    00243023    8/1/2002      5       GENE DIRECTOR BASE SOFTWA      95,309         95,309         0   
0001    YU    00001140    0086    00244241    10/1/2002      5       SIGNALLP SOFTWARE      8,543         8,543         0   


Dow
Company
Code

   Plant
Code
   Cost Center
Number
   Asset
Class
   Asset
Number
   Capitalization
Date
   Useful
Life

Year
Book
    

Asset Description 1

   Data
Acquisition
Cost
     Accum Depr      Net Book
Value
 
0001    YU    00001140    0086    00245352    11/1/2002      5       SEQUENCHER DNA SOFTWARE      8,998         8,998         0   
0001    YU    00001140    0086    00247333    12/1/2002      5       INFORMAX VECTOR NTI LAB S      28,551         28,551         0   
0001    YU    00001140    0086    00247527    12/1/2002      5       SEQUENCHER SOFTWARE FOR W      5,042         5,042         0   
0001    YU    00001140    0087    00281592    9/1/2005      5       CISPRO CHEMICAL INVENTORY      7,189         5,873         1,316   
0001    YU    00001140    0087    00285809    1/1/2006      5       STORVANTAGE NET APP      42,313         31,736         10,577   
0001    YU    00001140    0087    00295455    8/1/2006      5       SYNCSORT BACKUP NETAPP      15,495         9,813         5,682   
0001    YY    00001424    9900    00251322    1/1/2000      5       Axis Genetics - Biotechno      683,000         683,000         0   
0001    YY    00001424    9902    00251321    1/1/2000      5       Axis Genetics - Biotechno      929,000         929,000         0   
                       

 

 

    

 

 

    

 

 

 
Grand
Total
                          12,676,775         10,098,610         2,578,165