NRC - National Research Council of Canada

In May 2004, Naturally Advanced, through its wholly owned subsidiary CRAiLAR® Fiber Technologies Inc., entered into a Joint Collaboration Agreement (JCA) with the NRC Institute for Biological Sciences to develop CRAiLAR®, a patentable enzyme technology for the processing of hemp and other bast fibers. Under the terms of the JCA, all intellectual property developed under the agreement is available to the Company under exclusive license from the NRC. In October 2006, the Company entered into a Technology License Agreement with the NRC Institute for Biological Sciences, providing the Company an exclusive worldwide license to use and sublicense the technology developed under the JCA.

In May 2007, the NRC filed a patent application for processing hemp fibers under the Patent Cooperation Treaty simultaneously seeking protection in up to 117 countries worldwide. Later that month, CRAiLAR® Fiber Technologies Inc. secured the exclusive worldwide licensing rights from the NRC to the technology covered under this patent application.

ARC - Alberta Research Council

In January 2007, Naturally Advanced, through its wholly owned subsidiary CRAiLAR® Fiber Technologies Inc., entered into a Master Agreement for Technology Development ("MATD") with the Alberta Research Council ("ARC") to further develop technology related to the fabrication of products utilizing CRAiLAR® technology for use in textiles and composite applications.

Under the terms of the MATD, Naturally Advanced is entitled to an option to an exclusive, worldwide, royalty bearing license to use any new intellectual property developed pursuant to a Project Agreement. On May 23, 2007, the ARC filed two provisional patent applications related to technology developed under the MATD, and later that month the Company secured the exclusive worldwide licensing rights from the ARC, to the technology covered under the two patent applications.

CRAiLAR®

In September 2005, the Company trademarked the term CRAiLAR® to identify its proprietary technology platform relating to the engineering, processing and production of bast fibers, including all technology co-developed with and licensed from the NRC and ARC.