Agreement on Access to, Agreement on Access to, and Sharing Benefit from, and Sharing Benefit from,

Vernonia galamensis L.Vernonia galamensis L.

Institute of Biodiversity Conservation Institute of Biodiversity Conservation June June

20072007

IntroductionIntroduction Ethiopia has diverse and rich genetic Ethiopia has diverse and rich genetic

resources associated with Community resources associated with Community Knowledge Knowledge It is necessary to It is necessary to

Conserve and sustainably utilizeConserve 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 Ethiopia is a Party to the Convention on Biological Diversity (CBD) Diversity (CBD)

It is necessary to determine by law the access It is necessary to determine by law the access to, and benefit-sharing from, GR and to, and benefit-sharing from, GR and associated CK and to approve the right of associated CK and to approve the right of communities communities

The proclamation The proclamation cited as “Access to Genetic Resources and cited as “Access to Genetic Resources and

Community Knowledge, and Community Community Knowledge, and Community Rights Proclamation No. 482/2006Rights Proclamation No. 482/2006 has seven Parts and 38 Articleshas seven Parts and 38 Articles Effective = 27 February 2006Effective = 27 February 2006

ObjectivesObjectives To ensure fair and equitable share of benefits To ensure fair and equitable share of benefits

arising out of the use of GR and CK for the arising out of the use of GR and CK for the country and its communitiescountry and its communities

Scope of applicationScope of applicationIt applies to:It applies to:• Access to genetic resources found in:Access to genetic resources found in:

- In situIn situ- Ex situEx situ

- Community knowledgeCommunity knowledge

It does not apply to:It does not apply to: Customary use, exchange of genetic Customary use, exchange of genetic

resources and community knowledge among resources and community knowledge among EthiopiansEthiopians

Sale of biological products for direct Sale of biological products for direct consumptionconsumption

ContentContent

Community RightsCommunity Rights Condition of Access Condition of Access Follow-up Compliance MeasuresFollow-up Compliance Measures Exploration of Genetic Resources Exploration of Genetic Resources Administration of AccessAdministration of Access

RegulationRegulation Council of Ministers may issue regulation for proper Council of Ministers may issue regulation for proper

implementationimplementation submittedsubmitted

The Agreement onThe Agreement onVernonia galamensis L.Vernonia galamensis L.

1. Parties 1. Parties

TThe he Institute of Biodiversity Conservation - Institute of Biodiversity Conservation - EthiopiaEthiopia “ “ProviderProvider””

And And Vernique Biotech Ltd - UK “Vernique Biotech Ltd - UK “CompanyCompany”.”.

2. The Genetic resource2. The Genetic resource

Vernonia galamensis L. ssp. galamensis Vernonia galamensis L. ssp. galamensis var. ethiopica var. ethiopica (Noya) is a new annual (Noya) is a new annual industrial oilseed cropindustrial oilseed crop

containing about 40 to 42% oil of which containing about 40 to 42% oil of which 73 to 80 % is vernolic acid;73 to 80 % is vernolic acid;

VernoniaVernonia is endemic to Ethiopia and is endemic to Ethiopia and grows in the Regional States of Oromiya, grows in the Regional States of Oromiya, Southern region, and TigraySouthern region, and Tigray

Very recently the plant was found to be a Very recently the plant was found to be a potential crop for inclusion into the potential crop for inclusion into the agricultural system in Ethiopiaagricultural system in Ethiopia

Seed yield up to 4000kg/haSeed yield up to 4000kg/ha Oil content of 40% using unimproved Oil content of 40% using unimproved

local materiallocal material

3. Scope of access3. Scope of access the Company has exclusive access to the Company has exclusive access to VernoniaVernonia seed to seed to

export and use for purpose of developing and export and use for purpose of developing and

commercializing the Vcommercializing the Vernoniaernonia seed oil products seed oil products

The Provider shall not grant access to other parties for the The Provider shall not grant access to other parties for the purpose of developing and commercializing the products purpose of developing and commercializing the products on the agreementon the agreement

may grant access for purposes of developing and may grant access for purposes of developing and commercializing products or applications 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 specified in this agreement but the Company has not

developed or has not begun developing within two yearsdeveloped or has not begun developing within two years

Scope Cont…Scope Cont…

The Company is not permitted to access the traditional The Company is not permitted to access the traditional knowledge of Ethiopian local communities in relation to knowledge of Ethiopian local communities in relation to the use of the use of VernoniaVernonia shall not make use of or commercialize such shall not make use of or commercialize such

traditional knowledge of Ethiopian local communities traditional knowledge of Ethiopian local communities unless it has PICunless it has PIC

shall not make any claim that may affect the shall not make any claim that may affect the traditional uses of traditional uses of VernoniaVernonia by local communities by local communities

4. Intellectual Property Ownership4. Intellectual Property Ownership

The Company shall neither claim nor obtain intellectual The Company shall neither claim nor obtain intellectual property rights over Vproperty rights over Vernoniaernonia or any genetic components or any genetic components thereof. thereof.

can obtain intellectual property rights relating to can obtain intellectual property rights relating to inventions, products or applications developed using inventions, products or applications developed using VernoniaVernonia oil. oil.

5. Transfer to third Parties5. Transfer to third Parties

The Company shall notThe Company shall not transfer samples of transfer samples of VernoniaVernonia or any genetic or any genetic

components thereof to third parties to use for their own components thereof to third parties to use for their own purposes. purposes.

assign, transfer or otherwise dispose, in whole or in assign, transfer or otherwise dispose, in whole or in part, to third parties any of its rights or obligations part, to third parties any of its rights or obligations under this agreement to access and use under this agreement to access and use Vernonia Vernonia seed or the genetic components. seed or the genetic components. only where the Provider is a party to the agreement only where the Provider is a party to the agreement

of assignment. of assignment.

6. Effect of the Agreement6. Effect of the Agreement

The agreement shall not affect whatsoever The agreement shall not affect whatsoever the sovereign rights of Ethiopia over the sovereign rights of Ethiopia over VernoniaVernonia

genetic resourcesgenetic resources

any traditional uses by, or traditional knowledge of, any traditional uses by, or traditional knowledge of,

local communities associated with local communities associated with VernoniaVernonia..

7. 7. Benefit-sharingBenefit-sharing

Monetary benefits:Monetary benefits: an license fee upon the signing of the agreementan license fee upon the signing of the agreement An annual royalty from An annual royalty from the sale value of products the sale value of products

derived fromderived from Vernonia Vernonia sold per ton;sold per ton; royalty from its net profit after taxes from the royalty from its net profit after taxes from the

commercialization of products derived from commercialization of products derived from VernoniaVernonia. .

Non-Monetary benefits:Non-Monetary benefits: share research results and technologies generated from share research results and technologies generated from

the use - do not affect the commercial advantages of the use - do not affect the commercial advantages of the Company (specify by mutual agreement ).the Company (specify by mutual agreement ).

priority to Ethiopian research institutions for it agronomic priority to Ethiopian research institutions for it agronomic research on Vernonia.research on Vernonia.

priority to Ethiopia to supply it with Vpriority to Ethiopia to supply it with Vernoniaernonia seed for seed for producing oil products producing oil products

training to local communities or out-growers on methods training to local communities or out-growers on methods of production of of production of Vernonia Vernonia seed as applicable.seed as applicable.

acknowledge Ethiopia as the source of the acknowledge Ethiopia as the source of the VernoniaVernonia used, in all its relevant publications and applications for used, in all its relevant publications and applications for IP protection over the products developed from IP protection over the products developed from VernoniaVernonia,.,.

8. 8. DurationDuration 10 years10 years The parties may renegotiate at the end The parties may renegotiate at the end

of that period - of that period - if not, terminateif not, terminate

9. Penalty9. Penalty shall be paid for shall be paid for a breach in the a breach in the

agreementagreement article 5 of the agreement (transfer to 3rd party)article 5 of the agreement (transfer to 3rd party) failure to failure to fulfil financial obligations on ‘Benefit sharing’ – fulfil financial obligations on ‘Benefit sharing’ –

may even lead to termination of the agreementmay even lead to termination of the agreement

10 Monitoring and Follow-up10 Monitoring and Follow-up

quarterlyquarterly progress reports on commercial and research progress reports on commercial and research works activitiesworks activities

examine, if it so wishes, the bookkeeping as well as the examine, if it so wishes, the bookkeeping as well as the relevant administrative details through an independent relevant administrative details through an independent accountant accountant

Meetings at least once in a year in Ethiopia to exchange Meetings at least once in a year in Ethiopia to exchange information on, and monitor the implementation of, this information on, and monitor the implementation of, this agreement.agreement.

11 . Termination11 . Termination

Either party may terminate this agreement at any time:Either party may terminate this agreement at any time: When performance becomes impossible for reasons When performance becomes impossible for reasons

beyond the control of the party concerned.beyond the control of the party concerned. When an order has been made or resolution has been When an order has been made or resolution has been

passed for the winding up or liquidation of the passed for the winding up or liquidation of the Company’s establishment.Company’s establishment.

When one of the parties fails to fulfill its obligations or When one of the parties fails to fulfill its obligations or violates the terms under this agreement, violates the terms under this agreement,

In the event of the termination by either party, the In the event of the termination by either party, the terminating party shall notify the other party in writing.terminating party shall notify the other party in writing.

12. Dispute settlement12. Dispute settlement Seek solution by negotiationSeek solution by negotiation If not shaIf not shall be submitted to an arbitration tribunal to ll be submitted to an arbitration tribunal to

be established by both partiesbe established by both parties The decision will be final and binding The decision will be final and binding on the parties on the parties

without appeal without appeal

13. Governing law13. Governing law

This agreement shall be interpreted in accordance This agreement shall be interpreted in accordance with, and governed in all respects by the laws of with, and governed in all respects by the laws of Ethiopia Ethiopia

where applicable, by international treaties, to which where applicable, by international treaties, to which Ethiopia is a party, and in particular, CBD and any Ethiopia is a party, and in particular, CBD and any other international law emanating from it.other international law emanating from it.

14. Amendments of agreement14. Amendments of agreement

to the extent mutually agreed by and to the extent mutually agreed by and between partiesbetween parties

made expressly in writing and attached as made expressly in writing and attached as an annexan annex

Institute of Biodiversity Conservation Institute of Biodiversity Conservation

June 2007 June 2007