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Summary of Benitec, CSIRO &
QDPI Settlement (1)
Benitec expects to announce shortly to the market:


The settlement of all litigation on a drop-hands basis by all parties

The formation of a unified ddRNAi patent portfolio, providing greater worldwide patent
protection

Focused commercialistion rights based on:

Benitec – Human Fields

CSIRO - Plants and Animals

QDPI - R&D

Benitec, CSIRO &QDPI will identify key projects and co-develop ddRNAi applications for
future investment and commercialisation

QDPI’s R&D is provided with routes to commercialisation through Benitec (human) and
CSIRO (Animal and Plant).

Summary of Settlement (2)
The Settlement recognises the right of Benitec/CSIRO to share in each other’s ddRNAi value creation.
The Settlement will comprise:

Shared revenue streams
Each of Benitec & CSIRO retain the majority of earnings from their exclusive activities, with:
• Benitec receiving a small share of CSIRO animal activities;
• CSIRO receiving a small share of Benitec’s human activities; and
• Continuation of Benitec’s exclusive product distribution and licensing deal with Promega (USA)
• If CSIRO dispose of the Animal ddRNAi technology, CSIRO will pay to Benitec 30% of the
sale/disposal proceeds.

Benitec will issue CSIRO with a “Capital Growth Agreement” enabling CSIRO to participate in
Benitec’s corporate value increase over a 7 year period. This unsecured agreement provides for exit
by CSIRO;

At the end of the 7 years with payment to CSIRO of 5% of the Benitec’s market cap less certain
deductions, including Benitec’s present value and the value of any merged entity during the 7
years. This 5% is capped at USD100m based on Benitec’s then market cap of USD2 billion,
payable over 3 years.

Within the first 3 years upon certain trigger events, including change of control (over 50%); the
sale of Benitec for cash; and sale/disposal of Benitec’s ddRNAi technology other than in ordinary
course of business. These events trigger payment to CSIRO of 20% of Benitec’s market cap less
certain deductions, including Benitec’s present value and the value of any merged entity. This
payment has a minimum of USD10m with a cap of USD150m based on Benitec’s then market
cap of USD2 billion.