ADM plans to produce and sell Clarisoy worldwide

Burcon NutraScience Corp said it has signed a non-binding letter of intent with Archer Daniels Midland Company (ADM) that details the intention of the two parties to enter into a license agreement.

Under the terms of the agreement, Burcon will license its Clarisoy technology to ADM on an exclusive basis to produce, market and sell Clarisoy soy protein isolates worldwide.

The terms of the proposed license include:

* License to ADM of all intellectual property, including know-how and trade secrets, concerning the manufacture and use of Clarisoy.

* Royalty stream payable to Burcon on a quarterly basis begins upon the signing of the Definitive Agreement.

* Engineering and design of initial semi-works commercial Clarisoy production plant to be completed by ADM concurrent with the completion of the Definitive Agreement.

* Royalty structure incorporates financial incentive for ADM to expand sales globally.

Burcon has also agreed to enter into a stand-still/no-shop agreement with ADM while the two parties negotiate and execute the Definitive Agreement for the license.