LICENCE AGREEMENT
THIS AGREEMENT made as of the 8th day of December,2000.
BETWEEN:
MYCOTECHNOLOGY LTD, a limited company incorporated under the Companies Act under
number 176935 and having their Registered Office at ▇▇, ▇▇. ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇,
▇▇▇▇▇, ▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇ ▇▇▇▇▇▇▇
(hereinafter referred to as the "Licensor")
OF THE FIRST PART,
CULTUUR TECHNIEK BRABANT, a corporation valid and existing under the laws of
Netherlands and having its registered office at ▇▇▇▇▇▇▇▇ ▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇▇▇,
▇▇▇▇▇▇▇▇▇▇▇
(hereinafter referred to as the "Licensee")
OF THE SECOND PART.
WHEREAS the Licensor has the exclusive European rights to certain Proprietary
Marks (as hereinafter defined) and the Know-hnw/Technology (as hereinafter'
defined);
AND WHEREAS the Licensee is desirous of obtaining, and the Licensor is desirous
of granting to the Licensee, the sole and exclusive right to use the Proprietary
Marks and the Know-how/ Technology for the manufacturing, production, marketing
and/or sale of the Products (as hereinafter defined) in the Netherlands (as
hereinafter defined), upon the terms and subject to conditions as hereinafter
set out;
NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of the respective
covenmats and agreements of the parties contained herein, the sum of one pound
sterling paid by each party hereto to each of the other parties hereto and other
good and valuable consideration (the receipt and sufficiency of which is hereby
acknowledged by each of the parties hereto) it is agreed as follows:
ARTICLE ONE
DEFINITIONS
1.1 Whenever used in this Agreement the following terms shall be deemed to have
the following meanings unless the context otherwise requires:-
" Business" shall mean the cultivation of Shiitake Mushroon~s including the
production of Logs and Spawn as well as other exotic and medicinal mushrooms and
mushroom by-products.
"Confidential Information" shall mean information (whether written or verbal) in
and relating the Documentation, Know-how/Technology and all other information
furnished by the Licensor to the Licensee relating to the business and trade
secrets of the Licensor, but shall exclude the following information:-
(a) information which is or becomes available to the pub]tic through no fault
of the party receiving such information; and
(b) information which is subsequently received by any party from any third
party.
"Documentation" shall mean all drawings, specifications, manuals and any other
applicable media and documentation relating to the Know-how/Technology or its
usage thereof including all materials useful for design (for example, logic
manuals, flow charts and principles of operation) and machine-readable text or
graphic files subject to display or printout, and all advertising, promotional,
commercial and publicity pamphlets, brochures, leaflets and other materials
whatsoever relating to the Products.
"Improvements" shall mean all future improvements relating to
Know-how/Technology and Technical Information and Documentation.
"Know-how/Technology" shall mean information and date including formulae
Technology design specifications, techniques, procedures, plans, discoveries and
inventions (whether patented or not) as used at any time by the Licensor in
growing, marketing and selling Shiitake Mushrooms including the production of
Logs and Spawn as well as other exotic and medicinal mushrooms and mushroom
by-products at their facilities in Singapore and by any other licensees wherever
legally possible, which pertain to the use and exploitation of the Process or
the cultivation or marketing and sale of Shiitake Mushrooms and other exotic
mushrooms by means of the Process, together with any further information or date
pertaining thereto as may be available with the Licensor.
"Logs" shall mean raw materials comprising pre-formulated materials such as
chopped wood and/or sawdust and Nutrient Mix mixed with water in the proper
ration according to the Licensor's Know-how/Technology.
"Materials" shall mean Logs, Spawn and Nutrient Mix.
"Nutrient Mix" shall mean the nutrients developed by the Licensor for the
cultivation of Shiitake Mushrooms and production of Logs and Spawn as well as
other exotic and medicinal mushrooms and mushroom by-products.
"Parties" shall mean the Licensor and the Licensee.
"Plant" shall mean a facility in the Territory designed .and approved by the
Licensor to 3roduce fresh Shiitake Mushrooms or other exotic mushrooms, using
the Technical Information, Documentation and Improvements provided by the
Licensor hereuaader. The land and investment for the Plant will be committed by
the Licensee.
"Process" shall mean the process to produce fungi of the species Shiitake and
other exotic mushrooms by the means described in the European Patent Nos.
0107911/0248636
"Proprietary Marks" shall mean the trade marks, trade names, logos, designs,
symbols, emblems, insignia, fascia, slogans and other identifying marks whether
or not registered or capable of registration now or at any time hereafter
adopted by the Licensor for use in connection with any Product and/or the
Know-how/Technology.
"Shiitake Mushrooms" shall mean the fungi of the species shiitake cultivated
according to the Process or any part thereof.
"Other Exotic Mushrooms" shall mean any other species of exotic mushrooms
cultivated according to the Process or any part thereof.
"Spawn" shall mean the spawn of the species Shiitake and of the exotic mushrooms
produced according to the Licensor's Know-how/Technology.
"Technical Information" shall mean the information, know-how, dat_a formulae,
specifications, techniques, designs, procedures, plans, discoveries and
inventions (whether patented or not) available with the Licensor and relating to
the following, in so far as the same has been commercially tested and used and
found to be successful, including (but not limited to):
(a) design, engineering, fabrication, erection and installation of plant,
machinery and equipment required for the production of Product and sources
of supply thereof;
(b) production processes and methods, operating conditions, pollution and
quality control and testing and product development in respect of Product;
and
(c) Nutrient Mixes and all other materials and ingredients to be used in the
production of the Product including instructions on the required quantities
and the characteristics thereof and their treatment in the production of
Product as well as sources of supply thereof.
ARTICLE TWO
GRANT OF LICENCE
2.1 Provision of Documentation. The Licensor hereby grants to the Licensee, and
the Licensee hereby accepts a sole, perpetual and exclusive license to use,
and the right to sublicense the Proprietary Marks, Know-how/Technology and
Documentation as well as all Improvements thereon for the cultivation,
manufacturing, production, marketing and/or sale of the Products (the
"Rights").
2.3 Cultivation, Marketing and Distribution. The Licensor acknowledges and
agrees that the Licensee shall be using the Proprietary Marks,
Know-how/Technology, Documentation and the Process to cultivate, market and
distribute Shiitake Mushrooms and other exotic, edible and medicinal
mushrooms throughout the Territory.
ARTICLE THREE
CONSIDERATION
ARTICLE FOUR
REPRESENTATIONS AND WARRANTIES OF THE LICENSOR
4.1 The Licensor represents and warrants to the Licensee that the Licensor has
the exclusive European license to the Proprietary Marks,
Know-how/Technology, Documentation and Process including without limiting
the generality of the foregoing all rights in and to the patents,
trademarks and other intellectual property as set out in this Agreement and
flint the Licensor has the sole and exclusive right to authorize the use of
such patents, trademarks and other intellectual property by the Licensee in
accordance with the provisions of this Agreement.
ARTICLE FIVE
COVENANTS OF THE LICENSOR AND TIlE LICENSEE
5.1 The Licensee covenants and agrees to do the following throughout the term
of this Agreement:
(i) to operate and maintain proper accounting procedures in accordance with
generally accepted accounting principles.
3.1 License Fees. In consideration of the rights and license granted, and the
duties and obligations of the Licensor as set out herein, the Licensee
shall pay to the Licensor a technology fee of /~/j__~...(pound)300,000
(three hundred thousand pounds sterling) -
(ii) to keep at its registered office true and accurate records, :accounts,
books and data ("Business__ Records") which shall accurately reflect all
particulars relating to the Business and shall submit to the Licensor such
information and reports concerning the Business in such form as may be
specified by the Licensor.
(iii)to submit financial reports relating to the Business on a half-yearly
basis, not later than days after the mid-year and year-end dates.
(iv) to submit annual audited accounts of the Business within 180 days after the
year-end.
(v) to preserve and keep all Business Records for a period as required by local
tax laws.
The Licensee shall further ensure that each and every covenant referred to above
will also be obtained from any and all sub-licensees and same shall be forwarded
to the Licensor.
5.2 The Licensor covenants and agrees to do the following throughout the term
of this Agreement:
(i) to furnish to the Licensee and its sub-licensees all Know-bow/Technology,
Technical Information, Documentation and Improvements and render all
assistance necessary to enable the Licensee and its sub-licensees to
successfully establish the Plant and to produce and cultivate the Product.
(ii) without limiting the generality of the foregoing, the Licermor shall, from
time to time, provide to the Licensee and its sub-licensees, complete and
up-to-date Know-how/Technology, Technical Information, Documentation and
Improvements as it becomes available.
(a) to enable the Licensee and its sub-licensees to design, engineer, erect,
install and commission the Plant and all machinery and equipment therein
and to successfully produce, develop and sell the Product.
(b) to enable the Licensee and its sub-licensees to procure ,,'uitable
machinery, equipment and spares at reasonable prices and to fabricate and
manufacture the same indigenously in The Territory.
(c) to enable the Licensor and its sub-licensees to procure in flhe
international markets, alternative raw materials, consumables and other
inputs necessary for the production of Product at reasonable prices.
All Technical Information and Documentation referred to above shall be furnished
in English and shall be delivered to the Licensee within thirty (30) days of the
Effective Date.
ARTICLE SIX
TRAINING OF THE LICENSEE'S PERSONNEL
6.1 During the tenure of this Agreement, the Licensor shall train the
Licensee's personnel at the Plant as well as at other suitable factories
for the proper use and exploitation of Technical Information, Documentation
and Improvements furnished hereunder and for development of new products
and articles. For this purpose, the Licensor shall deploy, for a duration
of not more than one month at any one time, as and when necessary,
sufficiently knowledgeable and experienced consultants to the Plant.
6.2 Any such consultants deployed by the Licensor shall, ,during their stay in
the Territory, observe all rules and regulations that apply to Licensee's
employees.
6.3 The personnel to be trained, the consultants to be deployed and the periods
of such training, shall be as agreed by the parties from time to time.
6.4 All expenses incurred in connection with the training of the Licensee's
personnel at the Plant and elsewhere shall be borne by the Licensee unless
otherwise mutually agreed to by the parties.
6.5 The Licensee shall pay the Licensor a consultant's fee to he negotiated on
an individual basis and shall meet the actual expense of the Licensor
consultants doployed ~ in respect of their travel, board and lodging; but
no daily or other fees or remuneration will be paid to them.
ARTICLE SEVEN
MANAGEMENT OF PLANT
7.1 During the tenure of this Agreement and on mutual agreement, the Licensor
shall deploy its personnel in such numbers, not exceeding three (3) at any
one time, as are necessary to supervise, oversee and manage the operation
of the Plant, as agreed by the Pretties from time to time.
7.2 All costs and expenses incurred or accrued to the persormel shall be borne
and paid by the Licensee. The costs and expenses shall include, but not
limited to, remuneration, salary, board, lodging, travel, transportation
and other reasonable amenities.
7.3 In addition to the deployment of the Licensor's technical personnel to
assist in the operation of the Plant as may be agreed fTom time to time,
the Licensor ▇▇▇▇[1 arrange for a senior consultant to visit the Plant to
review production and technical issues with the Licensee's management once
a year and such traveling, accommodation, meals and out-of-pocket expenses
shall be borne by the Licensee.
ARTICLE EIGHT
MARKETING OF PRODUCTS
8.1 The Licensor agrees to use their best endeavors to assist the Licensee to
market the Products. Such sales shall be under the brand "EVERBLOOM" or
such other names as shall be mutually agreed tobythe parties.
ARTICLE NINE
SUPPLY OF RAW MATERIALS AND COMMERCIAL SERVICES
9.1 In the event that the Licensee requires any raw materials for the
production and cultivation of the Product and makes a written request for
the same, the Licensor shall supply the same at such prices and on such
other terms as may mutually be agreed upon.
9.2 The Licensor will assist the Licensee in the sourcing/supply of machinery
and consumables required to set up and operate the Plant, as and when
called upon to do so by the Licensee.
9.3 The raw materials shall include the Nutrient Mix, which shall be supplied
by the Licensor at a price to be agreed.
ARTICLE TEN
TERM OF AGREEMENT
10.1 Term of Agreement. This Agreement shall come into effect on its date of
execution and shall continue in full force and effect for an indefinite
period of time, unless terminated earlier in accordance with the terms set
out below.
10.2 Termination of AgreemenL where: The Licensor shall" be~-~fititled to
terminate this Agreement
(a) the Licensee breaches any of its covenants and obligations in this
Agreement including without limiting the generality of the foregoing:
(i) if the Licensee fails to submit when due the Statement of Sales and
Royalties Payable and financial reports which the Licensor is entitled
to under this Agreenaent;
(ii) if the Licensee falls to make payment of amounts due under this
Agreement within 60 days when they fall due; and
(iii)in the event that the Licensee is liquidated, dissolved or becomes
insolvent or bankrupt or placed under judicial management or the
control to receivers or trustees
then the Licensor shall have the fight to terminate this Agreement after giving
the Licensee written notice setting out such default and sixty (60) days to
rectify the default. If after sixty (60) days elapsed, the Licensee has failed
to cure said default, this Agreement shall be terminated forthwith and the
Licensee shall not be entitled to reimbursement of any fees paid by the Licensee
at the date of termination.
10.3 Injunctionn The Licensor shall be entitled to an injunction to restrain the
Licensee from engaging in any activities which constitute a breach of any
of the provisions of this Agreement without limiting any other legal or
equitable remedies available to the Licensor.
10.4 The Licensee's Right to Terminat~ In the event that the Licensor shall
breach any of its covenants and obligations in this Agreement or in the
event that the Licensor is liquidated, dissolved or becomes insolvent or
bankrupt or is placed under judicial management or the control to receivers
or trustees, the Licensee shall have the right to terminate this Agreement
after giving the Licensor written notice setting out such default and
thirty (30) days to rectify the default. If after thirty days have elapsed,
the Licensor has failed to cure said default, this Agreement shall be
te~adnated forthwith.
10.5 Termination Not to Relieve Obligations of Parties. Any termination pursuant
to this Agreement shall not relieve any party of any obligation or
liability accrued hereunder prior to such termination or rescind or give
rise to any fight to rescind anything done by any party hereunder prior to
the time such termination becomes effective and such teradnation shall not
affect in any manner any fights of any party arising under this Agreement
prior to such termination.
ARTICLE ELEVEN
GOVERMENTAL APPROVALS
11.1 The Parties hereto undertake to obtain from the respectiw: Governments all
approvals and authorizations necessary or required for the implementation
of the provisions of this Agreement.
11.2 Should approval or authorization fi:om the respective Governments be
subsequently withdrawn for any reason whatsoever, this Agreement shall
aut:omatically be terminated unless otherwise agreed between the Parties.
ARTICLE TWELVE
CONDIFENTIALITY
12.1 Each Party hereto undertakes to keep secret all information of a
confidential or secret nature supplied by one Party to the other pursuant
to this Agreement and agrees not to disclose any of such information to the
public or to any third party during the term of this Agreement and
following the expiration thereof without the express prior consent in
writing of the supplying Party and each Party in receipt of such
information is to ensure that it discloses ~c:h information only to
responsible employees and consultants whose duties are in furtherance of
the objectives of this Agreement and which cannot be fulfilled without use
by such Party of the information and where it is relevant to those duties
and who are under binding obligations to keep secret such of the
information as is necessarily disclosed to them.
ARTICLE THIRTEEN
RELATIONSHIP OF PARTIES AND INDEMNIFICATION
13.1 It is hereby declared that the Licensee is an independent contractor and
not an agent, legal representative, joint venturer, partner, employee or
servant of the Licensor and is not empowered to act on the Licensor's
behalf in any manner. The Licensee agrees that the Licensor is not in any
way fiduciary of the Licensee.
13.2 The Licensee shall indemnify the Licensor, its officers, directors,
employees, agents, affiliates, successors and assigns against:
(1) any and all claims, damages, or liabilities based upon, arising out of, or
in any way related to any negligence or act or omission by the Licensee or
any of its agents, contractors, servants, employees or licensees, and any
obligation of the Licensee incurred pursuant to any provision of this
Agreement.
(2) any or all fees (including reasonable attorney's fees), costs and other
expenses incurred by or on behalf of the Licensor in the investigation,
defence or prosecution of any and all claims.
ARTICLE FOURTEEN
GENERAL CONTRACT PROVISIONS
14.1 Notices. All notices or other communication to the Licensee required by the
terms of this Agreement shall be in writing and sent by registered mail,
return receipt request, addressed to Cultuur Techniek Brahant at Vensteeg
lb 5411, AR Zeeland, Netherlands, or such other address as the Licensee
shall designate in writing, or by facsimile or to such address confirmed by
registered mail. All notices or other communication to The Licensor
contemplated by the terms of this Agreement shall be in writing and sent by
registered mail, return receipt request, addressed to Mycotechnology Ltd at
▇▇, ▇▇. ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇, ▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇ ▇▇▇▇▇▇▇, or such other
address as the Licensor shall designate in writing, or by facsimile or to
such address confirmed by registered mail. If by registered mail, any
notice shall be deemed to have been given when received, or if by
facsimile, when the appropriate confirmation is received.
14.2 Assignment. The Licensee and its sub-licensees shall not be entitled at any
time to assign this Agreement of any part hereof except with the previous
written consent of the Licensor such consent not to be unreasonably
withheld.
14.3 Time of the Essence Time shall be of the essence of this Agreement and of
every part-- hereof and no extension or variation of this Agreement shall
operate as a waiver of this provision.
14.4 Entire Agreement. This Agreement constitutes the entire Agreement between
the Parties with respect to all of the matters herein and its execution has
not been induced by, nor do any of the parties rely upon or regard as
material, any representations or ~n-itings whatever not incorporated herein
and made a part hereof and may not be amended or modified in any respect
except by written instrument signed by the parties hereto. Any schedules
referred to herein are incorporated herein by reference and form part of
the Agreement.
14.5 Additional Considerations. The parties shall sign such further and other
documents, cause such meetings to be held, resolutions passed and by-laws
enacted, exercise their vote and influence, do and perform and cause to be
done and performed such further and other acts and things as may be
necessary or desirable in order to give full effect to this agreement and
every part thereof,
14.6 Enurement. This Agreement shall ensure to the benefit of and be binding
upon the parties and their respective successors and assigns.
14.7 Waiver. No omission or delay on the part of any party in exercising its
fights under this Agreement shall operate as a waiver thereof, nor shall
any single or partial exercise by any Party of any such fight preclude the
further or other exercise thereof or the exercise of any other fight which
it may have. Failure of either Party to require performance by the other
party of any provision hereof shall in no way affect the full fight to
require such performance at anytime thereafter. Nor shall the waiver by
either party of a breach of any provision hereof be taken or held to be a
waiver of any succeeding breach of such provision or as a waiver of the
provision itself.
14.8 Severabiliy. If any Article, Section or any portion of any Section of this
Agreement is determined to be unenforceable or invalid for any reason
whatsoever that enforceability or invalidity shall not affect the
enforceability or validity of the remaining portions of this Agreement and
such enforceable or invalid Article, Section or portion thereof shall be
severed from the remainder of this Agreement.
14.9 Headlngs for Convenience Only. The division of l~is Agreement into articles
and sections is for convenience of reference only and shall not affect the
interpretation or construction of this Agreement.
14.10Governing La,v. This Agreement shall be governed by and construed in
accordance with the laws of the Republic of Singapore and the Parties agree
to submit to the non-exclusive jurisdiction of the courts of the Republic
of Singapore.
14.11Gender. In this Agreement, words importing the singular number shall
include the plural and vice versa, and words importing the use of any
gender shall include the masculine, feminine and neuter genders and the
word "person" shall include an individual, a trust, a partnership, a body
corporate, an association or other incorporate or unincorporated
organiT"ation or entity.
14.12Calculation of ▇▇▇~ When calculating the period of time within which or
following which any act is to be done or step taken pursuant to this
Agreement, the date which is the reference date in calculating such period
shall be excluded. If the last day of such period is not a Business Day,
then the time period in question shall end on the first business day
following such non-business day.
14.13Counterparts. This Agreement may be executed in sever, d counterparts,
each of which so executed shall be deemed to be an original and such
counterparts together shall be but one and the same instrument.
IN WITNESS WHEREOF the parties have duly executed this Agreement as of the date
and year written above.
MYCOTECHNOLOGY LTD CULTUUR TECHNIEK BRABANT
Per:
Authorized Signing Officer
/s /
Authorized Signing Officer