Agreement on Access to, and Sharing Benefit from, Vernonia galamensis L. Institute of Biodiversity Conservation June 2007

Introduction Ethiopia has diverse and rich genetic resources associated with Community Knowledge Ethiopia has diverse and rich genetic resources associated with Community Knowledge It is necessary to It is necessary to Conserve and sustainably utilize Conserve and sustainably utilize recognize and protect knowledge of the community recognize and protect knowledge of the community Ethiopia is a Party to the Convention on Biological Diversity (CBD) Ethiopia is a Party to the Convention on Biological Diversity (CBD) It is necessary to determine by law the access to, and benefit-sharing from, GR and associated CK and to approve the right of communities It is necessary to determine by law the access to, and benefit-sharing from, GR and associated CK and to approve the right of communities

The proclamation cited as Access to Genetic Resources and Community Knowledge, and Community Rights Proclamation No. 482/2006 cited as Access to Genetic Resources and Community Knowledge, and Community Rights Proclamation No. 482/2006 has seven Parts and 38 Articles has seven Parts and 38 Articles Effective = 27 February 2006 Effective = 27 February 2006Objectives To ensure fair and equitable share of benefits arising out of the use of GR and CK for the country and its communities To ensure fair and equitable share of benefits arising out of the use of GR and CK for the country and its communities

Scope of application It applies to: Access to genetic resources found in:Access to genetic resources found in: -In situ -Ex situ -Community knowledge It does not apply to: Customary use, exchange of genetic resources and community knowledge among Ethiopians Customary use, exchange of genetic resources and community knowledge among Ethiopians Sale of biological products for direct consumption Sale of biological products for direct consumption

Content Community Rights Community Rights Condition of Access Condition of Access Follow-up Compliance Measures Follow-up Compliance Measures Exploration of Genetic Resources Exploration of Genetic Resources Administration of Access Administration of AccessRegulation Council of Ministers may issue regulation for proper implementation Council of Ministers may issue regulation for proper implementation submitted submitted

The Agreement onVernonia galamensis L. 1. Parties The Institute of Biodiversity Conservation - Ethiopia Provider The Institute of Biodiversity Conservation - Ethiopia Provider And And Vernique Biotech Ltd - UK Company. Vernique Biotech Ltd - UK Company.

2. The Genetic resource Vernonia galamensis L. ssp. galamensis var. ethiopica (Noya) is a new annual industrial oilseed crop Vernonia galamensis L. ssp. galamensis var. ethiopica (Noya) is a new annual industrial oilseed crop containing about 40 to 42% oil of which 73 to 80 % is vernolic acid; containing about 40 to 42% oil of which 73 to 80 % is vernolic acid; Vernonia is endemic to Ethiopia and grows in the Regional States of Oromiya, Southern region, and Tigray Vernonia is endemic to Ethiopia and grows in the Regional States of Oromiya, Southern region, and Tigray Very recently the plant was found to be a potential crop for inclusion into the agricultural system in Ethiopia Very recently the plant was found to be a potential crop for inclusion into the agricultural system in Ethiopia Seed yield up to 4000kg/ha Seed yield up to 4000kg/ha Oil content of 40% using unimproved local material Oil content of 40% using unimproved local material

3. Scope of access the Company has exclusive access to Vernonia seed to export and use for purpose of developing and commercializing the Vernonia seed oil products the Company has exclusive access to Vernonia seed to export and use for purpose of developing and commercializing the Vernonia seed oil products The Provider shall not grant access to other parties for the purpose of developing and commercializing the products on the agreement The Provider shall not grant access to other parties for the purpose of developing and commercializing the products on the agreement may grant access for purposes of developing and commercializing products or applications may grant access for purposes of developing and commercializing products or applications other than those specified in this agreement other than those specified in this agreement specified in this agreement but the Company has not developed or has not begun developing within two years specified in this agreement but the Company has not developed or has not begun developing within two years

Scope Cont… The Company is not permitted to access the traditional knowledge of Ethiopian local communities in relation to the use of Vernonia The Company is not permitted to access the traditional knowledge of Ethiopian local communities in relation to the use of Vernonia shall not make use of or commercialize such traditional knowledge of Ethiopian local communities unless it has PIC shall not make use of or commercialize such traditional knowledge of Ethiopian local communities unless it has PIC shall not make any claim that may affect the traditional uses of Vernonia by local communities shall not make any claim that may affect the traditional uses of Vernonia by local communities

4. Intellectual Property Ownership The Company shall neither claim nor obtain intellectual property rights over Vernonia or any genetic components thereof. The Company shall neither claim nor obtain intellectual property rights over Vernonia or any genetic components thereof. can obtain intellectual property rights relating to inventions, products or applications developed using Vernonia oil. can obtain intellectual property rights relating to inventions, products or applications developed using Vernonia oil.

5. Transfer to third Parties The Company shall not The Company shall not transfer samples of Vernonia or any genetic components thereof to third parties to use for their own purposes. transfer samples of Vernonia or any genetic components thereof to third parties to use for their own purposes. assign, transfer or otherwise dispose, in whole or in part, to third parties any of its rights or obligations under this agreement to access and use Vernonia seed or the genetic components. assign, transfer or otherwise dispose, in whole or in part, to third parties any of its rights or obligations under this agreement to access and use Vernonia seed or the genetic components. only where the Provider is a party to the agreement of assignment. only where the Provider is a party to the agreement of assignment.

6. Effect of the Agreement The agreement shall not affect whatsoever the sovereign rights of Ethiopia over Vernonia genetic resources the sovereign rights of Ethiopia over Vernonia genetic resources any traditional uses by, or traditional knowledge of, local communities associated with Vernonia. any traditional uses by, or traditional knowledge of, local communities associated with Vernonia.

7. Benefit-sharing Monetary benefits: an license fee upon the signing of the agreement an license fee upon the signing of the agreement An annual royalty from the sale value of products derived from Vernonia sold per ton; An annual royalty from the sale value of products derived from Vernonia sold per ton; royalty from its net profit after taxes from the commercialization of products derived from Vernonia. royalty from its net profit after taxes from the commercialization of products derived from Vernonia.

Non-Monetary benefits: share research results and technologies generated from the use - do not affect the commercial advantages of the Company (specify by mutual agreement ). share research results and technologies generated from the use - do not affect the commercial advantages of the Company (specify by mutual agreement ). priority to Ethiopian research institutions for it agronomic research on Vernonia. priority to Ethiopian research institutions for it agronomic research on Vernonia. priority to Ethiopia to supply it with Vernonia seed for producing oil products priority to Ethiopia to supply it with Vernonia seed for producing oil products training to local communities or out-growers on methods of production of Vernonia seed as applicable. training to local communities or out-growers on methods of production of Vernonia seed as applicable. acknowledge Ethiopia as the source of the Vernonia used, in all its relevant publications and applications for IP protection over the products developed from Vernonia,. acknowledge Ethiopia as the source of the Vernonia used, in all its relevant publications and applications for IP protection over the products developed from Vernonia,.

8. Duration 10 years 10 years The parties may renegotiate at the end of that period - if not, terminate The parties may renegotiate at the end of that period - if not, terminate 9. Penalty shall be paid for a breach in the agreement shall be paid for a breach in the agreement article 5 of the agreement (transfer to 3rd party) article 5 of the agreement (transfer to 3rd party) failure to fulfil financial obligations on Benefit sharing – may even lead to termination of the agreement failure to fulfil financial obligations on Benefit sharing – may even lead to termination of the agreement

10 Monitoring and Follow-up quarterly progress reports on commercial and research works activities quarterly progress reports on commercial and research works activities examine, if it so wishes, the bookkeeping as well as the relevant administrative details through an independent accountant examine, if it so wishes, the bookkeeping as well as the relevant administrative details through an independent accountant Meetings at least once in a year in Ethiopia to exchange information on, and monitor the implementation of, this agreement. Meetings at least once in a year in Ethiopia to exchange information on, and monitor the implementation of, this agreement.

11. Termination Either party may terminate this agreement at any time: When performance becomes impossible for reasons beyond the control of the party concerned. When performance becomes impossible for reasons beyond the control of the party concerned. When an order has been made or resolution has been passed for the winding up or liquidation of the Companys establishment. When an order has been made or resolution has been passed for the winding up or liquidation of the Companys establishment. When one of the parties fails to fulfill its obligations or violates the terms under this agreement, When one of the parties fails to fulfill its obligations or violates the terms under this agreement, In the event of the termination by either party, the terminating party shall notify the other party in writing. In the event of the termination by either party, the terminating party shall notify the other party in writing.

12. Dispute settlement Seek solution by negotiation Seek solution by negotiation If not sha ll be submitted to an arbitration tribunal to be established by both parties If not sha ll be submitted to an arbitration tribunal to be established by both parties The decision will be final and binding on the parties without appeal The decision will be final and binding on the parties without appeal 13. Governing law This agreement shall be interpreted in accordance with, and governed in all respects by the laws of Ethiopia This agreement shall be interpreted in accordance with, and governed in all respects by the laws of Ethiopia where applicable, by international treaties, to which Ethiopia is a party, and in particular, CBD and any other international law emanating from it. where applicable, by international treaties, to which Ethiopia is a party, and in particular, CBD and any other international law emanating from it.

14. Amendments of agreement to the extent mutually agreed by and between parties to the extent mutually agreed by and between parties made expressly in writing and attached as an annex made expressly in writing and attached as an annex

Institute of Biodiversity Conservation June 2007