ANNUAL INFORMATION FORM – XEBEC ADSORPTION INC. – For ...

with all H-6200 customers, as well as for manufacturing and order fulfillment. The commercial
gain from the sale of H-6200 units will be shared between Xebec and EMRE in proportion to the
contributions made by each party towards the research, development, and commercialization of
the H-6200. The signing of the Commercialization Agreement allowed for the formal launch of
marketing efforts for the H-6200 into the oil refinery market.
License and Development Agreement with Nuvera Fuel Cells for Advanced Hydrogen
Purification
On March 17, 2011, the Company announced the signature of a license and engineering
service agreement for a total value of USD 3.25 million with Nuvera Fuel Cells to allow for the
development of two rapid cycle hydrogen purification units for use in hydrogen refueling and
merchant hydrogen applications. Under the terms of the agreements, Xebec will receive an
upfront payment of USD 1.75 million and the remainder over the course of the development
period.
The development work to be performed under this engineering service agreement builds
on previous development programs that Xebec has conducted over the past 10 years and in
particular builds on previously completed product development projects for advanced separation
and rapid cycle PSA technology. In addition, Xebec has entered into a license agreement with
Nuvera for some of its hydrogen purification related Intellectual Property (IP) for refueling and
merchant hydrogen applications.
Intellectual Property
Xebec depends on a combination of patents, including patents on its technology and
applications of its technology, licenses, trademarks, copyrights and trade secrets to protect its
products and brands. Xebec also identifies and monitors intellectual property owned by others
on an ongoing basis, in order to avoid potential intellectual property infringements.
The Company has a stringent formalized process for the identification of patentable
inventions, the filing and prosecution of patent applications and the registration of trademarks
relating to new products. A review committee composed of senior Company executives oversees
this process. At December 31, 2010, the Company had 82 active granted patents covering 31
distinct inventions and had 39 patent applications pending covering 8 distinct inventions in the
United States, Canada, and certain European, Asian, and other countries. These patents and
patent applications cover namely the Company's fundamental rapid-cycle PSA technology,
including structured adsorbents, as well as the application of its technology in fuel cell systems,
internal combustion engines and chemical reactors. The Company has also registered the
HyQuestor® brand name and Pure Innovations® as trademarks in the United States and Canada,
and the Xebec® brand name as a trademark in Canada, the United States and Japan. Additional
Registrations in the United States of America as well as in certain countries in South East Asia,
in China and in certain countries in Europe are pending.
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