Manufacturing Agreement
This
Co-Development and Cooperation Agreement (“Agreement”) is made and entered into
by and between Vystar Corporation, a Georgia corporation in the United States
with its principal offices located at 0000 Xxxxxxxxx Xxxx., Xxxxxxxx 000, Xxxxx
000 Xxxxxx, XX 00000 (hereinafter referred to as “Vystar”) and Revertex
(Malaysia) Sdn. Bhd., a Malaysian company with its principal offices located
at
1 ½ Mile, Jalan Batu Pahat, X.X. 000, 000000 Xxxxxx, Xxxxx, Xxxxxxxx
(hereinafter referred to as “Revertex”), effective April 1, 2008 (“Effective
Date”) based on the terms and conditions contained herein.
RECITALS
WHEREAS
Vystar has considerable scientific and technological knowledge and capabilities
in the field of low-allergen natural rubber latex, and specifically has obtained
the following patents:
(1)
6,906,126; (2) 7,056,970; (3) PCT/US2005/025018 and has filed the following
pending applications (1) 11,249,887; and (2) 61/022,250 “Vystar Patents”);
and
WHEREAS
Revertex has considerable technological knowledge and capabilities in the field
of processing natural rubber latex; and
WHEREAS
Vystar and Revertex desire to jointly investigate and develop large-scale
standard operating procedures (“SOPs”) for processing low-active-protein,
low-allergen, natural rubber latex; and
WHEREAS
Vystar desires to appoint and Revitex desires to accept such appointment as
an
authorized and licensed manufacturer of Vystar’s patented Vytex CL60 and Vytex
PV forms of natural rubber latex.
WHEREAS
the parties have entered into a Letter of Intent dated August 22, 2006, as
amended December 31, 2006 and June 19, 2007 (collectively, the “LOI”) in which
the parties have begun Development to explore such a relationship.
NOW
THEREFORE, in consideration of the mutual performance of the terms and
conditions hereinafter set out, IT IS HEREBY AGREED AS FOLLOWS:
ARTICLE
I Definitions
1.1
"Application" shall mean the application of chemicals and/or processes to
natural rubber latex pursuant to and consistent with the Vystar Patents ,
including any future patents, continuations, derivative works, and/or new
developments that would use any of the Vystar Patents as prior art or are
otherwise related to the technology reflected by the Vystar
Patents.
1.2
“Confidential Information” shall mean all information disclosed to a Party
(“Receiving Party”) by the other Party (“Disclosing Party”) in connection with
this Agreement that is conveyed (a) in written, graphic, or other tangible
form
and conspicuously marked “confidential”, “proprietary” or in some other manner
to indicate its confidential or proprietary nature; or (b) orally, provided
that
such information is designated in writing as confidential or proprietary within
thirty (30) days of such oral disclosure. Additionally, the following
information shall be deemed Confidential Information even if not conspicuously
marked “confidential” or “proprietary”: all documentation, formulations,
algorithms, compilations, manuals, manufacturing processes, business methods,
computer programs, symbols, or other know-how and supporting material related
to
the research, development, manufacture, marketing, sale, copy rights,
trademarks, patents, technologies, trade secrets, Industrial Property Rights,
and internal management systems of the Products, Systems and Technology subject
to this Agreement, as defined herein, that are not generally known to the
public, whether conveyed verbally, in writing, on diskette, on tape or other
media.
1.3
“Confirmation” shall mean the written confirmation signed by both Vystar and
Revertex accepting the Plan for Development of the Products.
1.4
“Copyrights” shall mean all copyrights, trademarks, trade names or other usages,
whether registered or not, relating to the research, development, design,
manufacture, package, assembly, testing, marketing, or sale of the Products
in
any and all jurisdictions around the world.
1.5
“Development” shall mean the development of manufacturing processes, procedures
and other SOPs for the Application in large-scale processing to produce the
Products.
1.6
“Improvements” shall mean any modifications, improvements, changes or derivative
works to the Products, Technology, technical documentation or Information as
defined herein, or Systems.
1.7
“Industrial
Property Right" shall mean any and all inventions, discoveries, developments,
improvements and works relating either to the Application and/or the Products
and their related manufacturing processes, whether patentable or not, including
but not limited to patents and know how, developed by the Parties under this
Agreement after the effective date of this Agreement.
1.8
“Know-how” shall include, but shall not be limited to, all technical
information, (including but not limited to technical data or specifications,
drawings, engineering information, process or production information, formulas,
information on compositions of matter, techniques or methods, software or
computer programs, and proprietary tools) related to the research, development,
design, manufacture, package, assembly or testing of the Products;
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1.9
“Licensed Activities” shall mean to research, develop, design, manufacture,
package, assemble, test, and improve the Application for purposes of
toll-manufacturing the Products for Vystar and/or marketing, selling and
distributing the Products itself .
1.10
“Patents” shall mean all patent rights in any and all jurisdictions and all
right, title and interest in all patent applications and patents to issue on
them, all letters of patent or equivalent rights and applications, including
any
reissue, extension, division, continuation or continuation-in-part of
applications throughout the world;
1.11
“Plan” shall mean a development plan that reflects the feasibility of the
Development of the Products by Revertex, which shall initially be drafted by
Revertex, and is attached hereto as Exhibit A, and made a part of this
Agreement. Vystar maintains responsibility within the Plan for the Vystar
Technology and the Application and Revertex maintains responsibility for the
processes of treating and refining the natural rubber latex.
1.12
“Raw
Materials” shall mean all items required for the Toll manufacture of the
Products.
1.13
“Products” shall mean the low-active-protein and/or low-allergen natural rubber
latex processed product resulting from the Application.
1.14
“Revertex Services” shall mean those services listed on Exhibit D attached
hereto and incorporated herein by reference.
1.15
“Systems” shall mean any management or other system shared by Vystar with
Revertex for the purposes of Revertex’ Development of the Products and
optimizing the performance of production lines of Revertex for this purpose.
1.16
“Toll” or “Tolling” shall mean to convert/process Raw Materials into
Products.
1.17
“Tolling Waste” shall mean any waste, as that term is defined under Regulatory
Requirements as defined in Section 6.3, resulting from the Tolling of Raw
Materials into Products under this Tolling Agreement.
1.18
“Technical Documentation” shall mean all drawings, data, charts, graphs,
procedures, books, operation manuals, data, technical processes and other
tangible technical literature necessary for the Systems and/or the research,
development, design, manufacture, package, assembly or testing of the Products.
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1.19
“Technology” shall mean, collectively, patents, know-how, copyrights,
trademarks, trade names, and other Confidential Information which are disclosed
or provided pursuant to the terms of this Agreement, and are necessary for
research, development, manufacture, packaging, assembly or testing of the
Products. That Technology controlled by Vystar as of the date of this Agreement,
thereafter acquired by Vystar during the term of this Agreement, or otherwise
developed during or pursuant to this Agreement or which relates to the
Application, including all SOPs and other manufacturing processes previously
developed or developed during the term of this Agreement or the LOI related
to
the Application, shall be referred to as “Vystar Technology”. That Technology
controlled by Revertex as of the date of this Agreement, thereafter acquired
by
Revertex during the term of this Agreement, or otherwise developed during or
pursuant to this Agreement related to the processing of compounded latex and
prevulcanized lattices, and which does not relate to or depend upon the
Application, the Products or the manufacturing or other processing for the
Applications and Products, shall be referred to as “Revertex Technology”.
1.20
“Vystar Services” shall mean technical support or consulting services Vystar
tenders to Revertex under this Agreement.
1.21
“Vytex CL60” shall mean the particular product resulting from applying the
Application to the natural rubber latex that has not been treated with
pre-vulcanized chemical processes.
ARTICLE
II. Manufacturing,
Packaging, Distribution and Commercialization of Products
2.1
Revertex shall procure the relevant Raw Materials for manufacturing and/or
processing the Products. The cost for such Raw Materials shall be billed to
Vystar on a cost plus model as described in Exhibit C on Revertex Fees for
the
Products that Vystar sells. Revertex shall inspect and test before unloading
all
Raw Materials promptly upon receipt and give Vystar immediate notice of
defective or substandard Raw Materials. Revertex’s failure to provide such
notice shall constitute a material breach of this Agreement.
2.2
Pursuant to the Plan and the Services described on Exhibit D, it is anticipated
that Revertex will process, package, distribute, and possibly market and sell
the Products. If Revertex desires to engage in these and other Licensed
Activities, as defined below, Revertex shall comply with the following
requirements:
2.2.1
With the exception of any product that Revertex is currently marketing as of
the
Effective Date, Revertex shall manufacture, distribute, promote and/or sell
only
the Vystar Products as Revertex’ chemically-treated, low-active-protein or
low-allergen natural rubber latex product.
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2.2.2
Revertex must include the Vystar trademark and trade name “Vytex” on all Product
packaging, and if Revertex sells any of the Products for its own benefit, upon
paying Vystar a Licensing fee that will be subject to a separate agreement,
Revertex shall require of any of Revertex’ customers to whom Revertex markets,
sells or distributes the Products that they similarly include the Vytex
tradename and in the same manner as required of Revertex on all Product
packaging manufactured, processed, packaged, marketed, sold or otherwise
distributed by those Revertex customers. All such trademarks and/or trade names
on all packages shall be used and placed as mutually agreed upon by the parties.
All such marketing activities and trademark usage requirements shall be
incorporated in this Agreement as Exhibit B. Neither Revertex nor any Revertex
customer may make any changes to the use and placement of the Vystar trademarks
and/or trade names without the express written approval of Vystar.
2.2.3
Should Revertex determine it desires to market and/or sell any of the Products,
Vystar and Revertex (and/or Revertex’ agents approved by Vystar) shall mutually
market the Vytex natural rubber latex, and each party shall include the other
party in its marketing activities and materials, including any electronic or
on-line product listing and catalogs.
2.2.4
Generally, Vystar shall have responsibility for marketing to the Product
end-users world-wide, including product development and marketing groups located
in the North American region and in companies not otherwise covered by Revertex.
If Revertex elects to sell any of the Products, Revertex shall have
responsibility for sales and marketing of the Products to the Product
manufacturers outside of the North American region, specifically in Southeast
Asia and Europe currently covered by Revertex, or as otherwise agreed to between
the Parties.
2.2.5
Each party shall be fully responsible for the costs of its marketing materials
for its marketing efforts. In the event that the parties engage in joint efforts
that result in joint marketing materials, the parties shall share equally in
these costs unless otherwise expressly agreed by the parties.
2.2.6
Each party shall provide to the other party sufficient documentation and
training to facilitate each party’s co-marketing efforts under the licensing and
non-disclosure requirements contained in this Agreement.
2.2.7
Each Party hereby grants a limited, nonexclusive, world-wide, non-assignable
and
non-transferable, royalty-free license to each party’s trademarks and copyrights
for the co-marketing and sales activities and materials, provided that the
trademarks and marketing materials are not altered or modified from the parties’
approved versions.
2.2.8
Each party shall only use marketing materials related to the other party that
are approved by the other party.
2.2.9
Each party shall make opportunities available to invite the other party to
marketing and sales meetings with potential customers and each party shall
make
good faith efforts to attend such sales and marketing meetings.
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2.3
Vystar shall provide to Revertex quarterly estimates, or such other interval
mutually agreed to by the parties, reflecting the expected volume for Products
required by Vystar.
2.3.1
Vystar will transmit orders for quantities of each of the Products to Revertex
by separate orders containing details.
2.3.2
Revertex shall invoice Vystar for processing and storage of Products, along
with
the invoicing of any Raw Material provided by the Revertex, pursuant to sections
4.1, and in accordance with the schedule of fees shown in Exhibit
C.
2.4
Warehousing/Storage. To
the
extent that Vystar Raw Materials and Products are stored at Revertex’s site.
Revertex shall provide sufficient and appropriate facilities for such storage.
Details of such facilities are provided in Exhibit F.
2.5
Sole
right and title to Products hereunder shall remain in Vystar at all times.
Revertex shall not sell, transfer, grant any security interest in, encumber
or
otherwise dispose of any interest of Vystar in the Products.
2.6
Transportation. If
required by Revertex, Vystar will supply to Revertex information to assist
Revertex in complying with any relevant transportation regulations for shipping
Products.
2.6.1
Revertex shall ensure that precautionary labels, tags, hazard warnings
statements, and other safety information are affixed to the containers in which
the Products are shipped, in accordance with the relevant transportation
regulations and specific directions furnished Revertex by Vystar.
2.6.2
Where the drumming of materials is part of the Tolling agreement, Vystar will
provide Revertex with specific information which Revertex will use to print
drum
labels. Revertex shall affix labels to all drums and ensure that all drums,
labels and markings comply with all Regulatory Requirement, including, without
limitation, any relevant transportation regulations.
2.7
Waste, Recycle & Contamination.
Revertex
accepts all responsibilities under Regulatory Requirements, including the status
of any generator or other equipment, for Tolling Waste. Prior to the initial
contract, purchase order, or arrangement for removal, transportation, treatment,
storage or disposal of Tolling Waste, Revertex shall notify Vystar with
specifics of the transaction, so that Vystar may state any
objection.
2.7.1
Revertex agrees promptly to notify Vystar of any change in the Tolling of Vystar
Raw Materials into Products that could affect the quantity, type, or character
of any Tolling Waste.
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2.7.2
If
any non-waste material is produced by Revertex from Vystar Raw Materials or
Products, which material Revertex intends to recycle or reuse or send to a
third
party for recycle or reuse, Revertex agrees to notify Vystar in advance of
the
recycle or reuse activity.
2.8 Spill
and Transportation Accident Notification. Revertex
shall immediately notify Vystar upon discovery of any leak or spill of Vystar
Raw Materials or Products at Revertex’s site, if such leak or spill is not
totally contained, recovered, and prevented from reaching the air, soil or
water. Revertex shall report all incidents under Regulatory
Requirements.
2.8.1
Revertex shall immediately notify Vystar, within3 hours maximum, of any
transportation or operational accident involving Vystar Raw Materials or
Finished Products. .
2.8.2
Revertex has a continuing obligation to notify Vystar of any matter addressed
by
this Section 2.8, even if such notice would not be immediate, and to update
Vystar of any significant new or changed information or
developments.
ARTICLE
III. Fees
Where
Revertex provides the Revertex Services described in Exhibit D for Vystar
without selling any of the Products itself, Vystar shall pay to Revertex the
fees described on Exhibit C labeled “Revertex Fees” (“Revertex Fees”).
ARTICLE
IV. Limited License
4.1
Subject to the terms and conditions of this Agreement, Vystar hereby grants
to
Revertex a non-transferable, non-assignable, non-exclusive, world-wide, limited
right and license to the Vystar Technology, Technical Documentation and Systems
to research, develop, design, manufacture, package, assemble, test, and improve
the Application for purposes of toll-manufacturing the Products for Vystar
and/or marketing, selling and distributing the Products itself (“Licensed
Activities”).
4.2
Subject to the terms and conditions of this Agreement, Vystar hereby also grants
to Revertex a non-transferable, non-assignable, non-exclusive, world-wide
limited right and limited license to use the Vystar trademarks, “Vytex™”, and
other trademarks or trade names as expressly approved by Vystar on the packaging
of the Products. Revertex shall not use any of Vystar’s trademarks or trade
names in any other manner other than as expressly prescribed by Vystar. Revertex
shall not deface, obliterate or otherwise modify any of the Vystar trademarks
or
trade names.
4.3
The
Licenses in Sections 4.1 and 4.2 herein shall collectively be referred to as
the
“License”.
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4.4
Revertex shall not sell, transfer or assign any aspect of the License. The
License shall be valid for the term of this Agreement unless terminated earlier
as provided in this Agreement. Revertex shall not, and shall not permit its
employees, representatives or agents to sell, assign, lease, sublicense,
transfer or disclose to any third party, or allow any third party to use the,
Vystar Technology, Technical Documentation, Systems or the Application except
as
specifically permitted by this Agreement.
4.5
Nothing contained herein shall be construed as granting the receiving party
a
license, an option on a license or any right to operate under any patent,
technology or know how, or more generally under any Industrial Property Right
of
the disclosing party which may be disclosed by it under this Agreement and
which
shall remain its complete and full property.
4.6
In
the event that Revertex determines it may need to utilize third parties to
assist in the manufacturing of Vytex product due to the volume, the parties
shall follow the procedures outlined in Article V Restriction on Subcontracting;
Nonassignability provision described herein.
ARTICLE
V. Restriction on Subcontracting; Nonassignability
5.1
Revertex shall not subcontract the Development or any of the other Licensed
Activities in whole or in part to any third party without the prior written
consent of Vystar. The rights and obligations granted and imposed upon the
Parties pursuant to this Agreement shall not be assignable or otherwise capable
of delegation, transferable, or subject to encumbrance by act of either Party
or
by operation of law or otherwise without the express written consent of the
other Party. Any attempt to assign, delegate, transfer or encumber such rights
or duties, absent the other Party’s prior written consent shall be null and
void. Notwithstanding the foregoing, a transfer of all or substantially all
of
the assets of either Party to an affiliate of that Party shall not be deemed
a
prohibited assignment for purposes of this Article.
5.2
In
the event that Revertex would require use of a third party to assist in the
processing and or manufacture of the Products using the Application in order
to
meet Vystar’s quantities required, Revertex shall communicate such fact to
Vystar with sufficient notice to allow Vystar to review such third party’s
qualifications and approve of any such third party. In the event of Vystar’s
approval to Revertex’ use of any such third party subcontractor to assist
Revertex in processing or manufacturing the Products using the Application,
such
third party contractor shall be required to execute a limited license and
confidentiality agreement with Vystar prior to any disclosure of Vystar’s
Application and Vystar Technology by Revertex. For all other components of
the
subcontractor processing and manufacturing relationship, Revertex shall contract
directly with and be responsible to Vystar for the third party’s production of
the Products. The use of any third parties pursuant to this section shall not
change the Revertex Fees charged to Vystar for the Revertex Services as
described herein and on Exhibit C.
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ARTICLE
VI.
Quality & Performance Standards Compliance
6.1.
Revertex shall engage in the Development activities and the other Licensed
Activities with reasonable skill and care. Revertex represents that it has
the
requisite expertise, ability and legal right to engage in the Development
activities and other Licensed Activities and that it can and will perform the
Development activities and other Licensed Activities in an efficient and ethical
manner.
6.2
Revertex shall establish and maintain programs which address continuous
improvement of final product quality, and strive to achieve goals similar to
the
ISO 9001 quality process at a minimum. The status of such programs are to be
shared with Vystar.
6.3
Revertex acknowledges that the Products are or may be governed by governmental
regulations and licensing in the various jurisdictions in which the Products
may
be marketed, distributed and/or sold. It shall be the duty of Revertex to
ascertain whether any drawings and specifications are at variance with the
Regulatory Requirements applicable to it as a toll manufacturer before starting
Tolling. If Revertex discovers any variance with the Regulatory Requirements
in
any drawings and/or specifications, Revertex shall promptly notify Vystar in
writing and the necessary changes shall be made before proceeding with the
part
of the Tolling affected. Revertex shall obtain all permits necessary for the
Tolling, and shall give all required notices. Revertex shall be responsible
for
complying with all government regulations and for seeking all required licenses,
certifications and approvals required in order to comply with all governmental
regulations and licensing that apply to Revertex’ Development activities and
other Licensed Activities and as otherwise may be required of Vystar as the
processor of record and which Vystar would be required to pass along to any
of
its contractor or toll manufacturers (“Regulatory Requirements”). Revertex shall
have full and proper regard to and shall comply with all other relevant laws,
regulations and codes of conduct in the performance of the Development and
other
Licensed Activities pursuant to this Agreement.
6.4
Revertex shall have a drug and alcohol policy applicable while performing
services for Vystar. Revertex shall ensure that its employees and agents do
not
perform any service for Vystar while under the influence of alcohol or any
controlled substance. Revertex is responsible for all aspects of compliance
with
regulations promulgated by the Occupational Safety & Health Act, 1994 and
any applicable sate worker regulations. This obligation includes all training
and hazard communication as required in the OSHA Regulations. If Revertex has
not received sufficient information on the Vystar Raw Materials or Products,
then Revertex shall contact Vystar for this information. Attached hereto as
Exhibit E are Material Safety Data Sheets covering the Vystar Raw Materials
to
be Tolled by Revertex and covering the Products. If not already posted, Revertex
agrees to disseminate and post copies of the Material Safety Data Sheets,
including warnings and safety and health information concerning the Vystar
Raw
Materials and Products and/or their containers, in a conspicuous place in
Revertex’s plant to which employees, agents, contractors or customers of
Revertex have open and frequent access. Revertex agrees to otherwise advise
its
employees, agents, contractors or customers by disseminating all information
furnished by Vystar regarding the possible hazards of, precautions concerning,
and safe-handling procedures utilized in dealing with: (1) the Vystar Raw
Materials, and (2) the Products to the extent not already disseminated by
Revertex as a result of Revertex’ activities other than Vystar Tolling.
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6.5
Revertex shall not make any modifications to the Technical Documentation, the
Systems, the Vystar Technology, Application or the Products without the express
written approval of Vystar. If Revertex modifies or causes the modification
without Vystar’s approval of the Technical Documentation, Systems, Vystar
Technology, Application or the Products that are developed, manufactured,
marketed, distributed or sold, Revertex shall indemnify and hold harmless Vystar
against any and all claims, damages, fines, costs and expenses (including
without limitation, reasonable attorneys’ fees and costs of suit) resulting from
the defense, settlement and/or regulatory action related to Revertex’ use,
development, manufacture, packaging, marketing, sale, distribution or any other
Licensed Activity or other activity with respect to the unapproved modified
Products. This indemnification shall survive termination or expiration of the
Agreement.
6.6
In
compliance with Vystar’s quality assurance procedure, Revertex is required to
retain a sample measuring 500 cubic centimeters of Product after loading for
each tank truck delivery. The sample shall be retained for three (3) months
after each delivery. Provided that, in the event of a claim relating to any
Product delivered, the sample of the said Product delivered shall be retained
as
long as necessary.
6.7
Revertex, in performing its obligations under this Agreement, shall establish
and maintain appropriate business standards, procedures, and controls, including
those necessary to avoid any real or apparent impropriety or adverse impact
on
the interests of Vystar. Revertex shall review with Vystar at reasonable
frequency during performance of this Agreement, Revertex’s business standards,
procedures, and controls, including, without limitation, those related to the
activities of Revertex’s employees and agents in their relations with Vystar
employees, agents and representatives, suppliers, subcontractors and third
parties.
ARTICLE
VII. No Warranties
BOTH
VYSTAR AND REVERTEX GIVE
NO
WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, INCLUDING
BUT NOT LIMITED TO THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR
A
PARTICULAR PURPOSE with respect to the activities described in this Agreement
except as expressly set forth in this section. Neither party shall communicate
any warranties on behalf of the other to any customer to which it markets,
sells
or distributes the Products other than that expressly described herein. Each
party shall hold harmless and indemnify the other party for any warranties
that
it extends to any third party in violation of this provision.
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IN
NO
EVENT WILL EITHER PARTY OR ANY OF ITS SUPPLIERS OR LICENSORS BE LIABLE TO THE
OTHER PARTY FOR: (1) LOST PROFITS, LOST DATA OR LOST USE, OR ANY OTHER
INCIDENTAL OR CONSEQUENTIAL DAMAGES, OR FOR ANY INDIRECT, SPECIAL, OR PUNITIVE
DAMAGES REGARDLESS OF THE FORM OF ACTION, WHETHER CONTRACT, TORT STRICT PRODUCT
LIABILITY OR OTHERWISE, EVEN IF CUSTOMER OR ANY OTHER PERSON HAS ADVISED THAT
PARTY OR ANY OF ITS SUPPLIERS OR LICENSORS OF THE POSSIBILITY OF SUCH DAMAGES;
(2) DAMAGES CAUSED BY THE OTHER PARTY’S FAILURE TO PERFORM ITS RESPONSIBILITIES
UNDER THIS AGREEMENT; (3) REPAIRS OR ALTERATIONS DONE WITHOUT THE PRIOR WRITTEN
APPROVAL OF THE OTHER PARTY; OR (4) USE OF THE OTHER PARTY’S TECHNOLOGY,
TECHNICAL DOCUMENTATION, SYSTEMS, OR APPLICATION OR ULTIMATE PRODUCTS IN A
MANNER THAT IS NOT AUTHORIZED BY THIS AGREEMENT. THE REMEDY OF CONSEQUENTIAL
DAMAGES SHALL NOT BE AVAILABLE EVEN IN THE EVENT THE SOLE AND EXCLUSIVE REMEDY
OF REPAIR AND/OR REPLACEMENT FAILS OF ITS ESSENTIAL PURPOSE.
THIS
LIMITATION WILL NOT APPLY TO CLAIMS FOR DEATH OR PERSONAL INJURY CAUSED SOLELY
BY THE NEGLIGENCE OF A PARTY OR ITS EMPLOYEES, SUBCONTRACTORS OR AGENTS.
ARTICLE
VIII. Reports, Records, Access & Audits
8.1
Revertex shall submit to Vystar its final report on the Development on or prior
to the date specified in the Plan.
8.2
In
the event that Revertex is unable to submit the final report by the specified
date as referred to in the preceding paragraph, Revertex shall notify Vystar
to
that effect without delay.
8.3
Vystar may from time to time request that Revertex make a report on the progress
of the Development and manufacture or other Licensed Activities and Vystar
shall
be entitled to provide instructions or assistance for, or be present at, the
implementation of the Development or manufacture and packaging, at the site
where Revertex carries out the Development and/or manufacture and
packaging.
8.4
Revertex shall keep accurate and thorough records in sufficient detail to enable
Vystar and/or any governmental or licensing body to inspect records and
activities related to the Development and other Licensed Activities. Upon
Vystar’s request, and after reasonable prior notice, Revertex shall permit
Vystar or an independent auditor to have access during ordinary business hours
to Revertex’ records and operation to determine Revertex’ compliance with this
Agreement and with respect to the Development and other Licensed Activities.
Such examination shall be at Vystar’s expense and shall not take place more than
once each six (6) months, unless required more often by a governmental or
licensing agency or Vystar has reason to believe Revertex may not be complying
with the Regulatory Requirements, the License or other obligations described
herein.
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8.5
Revertex shall retain the original of the final report on the Development,
original data, experimental products, and other related materials in an
appropriate manner for a period of 3 years from the date on which the final
report is submitted to Vystar. The procedures after the expiration of the
retention period shall be determined through discussion between the
parties.
8.6
Revertex and Vystar agree that all transactions will be accurately reflected
in
their books and records, and that no funds or other assets will be paid directly
or indirectly to government officials (or persons acting on their behalf) for
the purpose of influencing government decisions or actions. Violation of this
policy will result in the immediate termination of this Agreement. No employee,
agent, contractor, subcontractor or other third party used by Vystar will have
the authority to give any direction, either written or oral, relating to the
making of any commitment by Revertex, Vystar or their agents to any third party
in violation of the terms of this section.
8.7
If
Revertex receives any request for audit, inspection, information or other action
by a governmental or licensing body, or other third party with respect to the
Products or the Application, Revertex shall immediately notify Vystar. If
Revertex becomes aware of any defect or other concern regarding the Products
or
Application which it knows or suspects may cause injury, harm or other hazards
associated with the use or control of the Products, Revertex shall immediately
inform Vystar of such and both parties will determine the appropriate course
of
action with respect to notifying any governmental authority, customers or other
third party(ies).
ARTICLE
IX.
Product & Technology Discontinuation or Modification
9.1
Vystar reserves the right to modify or discontinue any Vystar Technology,
System, Technical Documentation, Application and resulting Product upon thirty
(30) days notice to Revertex. If such modification or discontinuation is due
to
Regulatory Requirements, as described in this Agreement, the notice period
of
such modification or discontinuation shall be pursuant to such Regulatory
Requirements and will be as stated in the notice to Revertex. In some cases,
this modification or discontinuation may be effective immediately.
9.2
In
the event that, prior to the completion of the Development, Vystar provides
Revertex with notice of discontinuation of all or part of the required test,
Revertex shall promptly discontinue the Development. The settlement of the
development fees accrued prior to the discontinuation shall be made by agreement
through discussion between the parties.
12
9.3
In cases where the Development is discontinued
pursuant to the preceding paragraphs, Revertex shall promptly provide to Vystar
the results of the Development achieved prior to the termination. The manner
to
deal with the original data and experimental products with respect to the
Development having been created prior to the discontinuation shall be determined
through discussion between the parties.
ARTICLE
X. Confidentiality
10.1
During the course of performing this Agreement, it is anticipated that both
Parties will learn Confidential Information of the other Party. Each Party
shall
keep confidential the Confidential Information and shall not use or disclose,
either directly or indirectly, to any person or entity the Confidential
Information of the other Party for any purpose other than as provided for in
this Agreement without the express, written permission of the other Party,
except that each Party may: (i) use the Confidential Information of the other
Party to carry out the activities expressly permitted hereunder; (ii) disclose
the Confidential Information of the other Party to those persons who have a
need
to know such Confidential Information in order to carry out the activities
expressly permitted hereunder on behalf of the Receiving Party and who are
bound
by confidentiality obligations no less stringent than those contained herein;
and (iii) disclose the Confidential Information as required by law or orders
from any government departments, legislative bodies or governing courts,
provided that, in such event, the Receiving Party subject to such obligation
shall promptly notify the Disclosing Party to allow intervention to contest
or
minimize the scope of the disclosure or apply for a protective order. Each
Party
agrees to take precautions to prevent unauthorized disclosure or use of the
Confidential Information, and such precautions shall be consistent with the
precautions used to protect the Receiving Party’s own confidential information
of like significance, but in no event less than the care exercised by a
reasonable business person in the protection of its valuable confidential
information. In the event that the Receiving Party learns or has reason to
believe that any person who has had access to the Confidential Information
of
the Disclosing Party has violated or intends to violate the terms of this
Agreement, the Receiving Party shall immediately notify the Disclosing Party
and
shall cooperate with the Disclosing Party in seeking any relief against any
such
person or violation.
10.2
In
the event of any unauthorized disclosure of the Disclosing Party’s Confidential
Information by any of the Receiving Party’s employees, vendors, contractors,
agents or other third party with access to the Disclosing Party’s Confidential
Information, the Disclosing Party shall have the right to commence legal
proceedings directly against such employee, vendor, contractor, agent or third
party, and such right shall be stipulated in the non-disclosure undertaking
executed by the Receiving Party’s employees, vendors, contractors, agents or
other third parties. The Parties hereto both acknowledge that damages that
would
be suffered by the Disclosing Party as a result of a breach of the provisions
of
this Article X may not be determinable and that an award of a monetary judgment
for such a breach would be an inadequate remedy. Consequently, the Disclosing
Party shall have the right, in addition to any other rights it may have, to
obtain, in any court of competent jurisdiction, injunctive relief or any other
equitable relief to restrain any breach or threatened breach of any provision
of
this Article X or otherwise to specifically enforce any of the provisions
hereof.
13
10.3
Confidential Information shall include, but shall not be limited to all aspects
of the Technology, Systems, Technical Documentation, Application and Products
shall be deemed as Confidential Information for all purposes and at all times.
Notwithstanding the above, the confidential obligation contained in this
paragraph shall not apply to any of the following information to the extent
that
it can be demonstrated in writing that the information:
1)
is
already known to the public through no violation of a nondisclosure obligation
at
the
time of disclosure by the other party;
2)
becomes known to the public without fault of the receiving party after the
disclosure by the other party;
3)
is
already in the possession of the receiving party at the time of disclosure
by
the other party;
4)
is
lawfully obtained without any obligation of confidentiality from a third party
who has the right to make such disclosure (subparagraphs 1-4 shall be referred
to as “Non-Confidential Information”); or
5)
is
required to be disclosed by any governmental or judicial agency, but only after
the Receiving Party has given the Disclosing Party notice of such disclosure
request and given the Disclosing Party an opportunity to object and/or seek
a
protective order.
10.4
The
Receiving Party must seek prior written approval from the Disclosing Party
for
any vendors, contractors, subcontractors, or other third parties that the
Receiving Party proposes to use for any work involving the Disclosing Party’s
Confidential Information. Any such vendors, contractors, subcontractors and
third parties must be bound by confidentiality, nondisclosure agreement
containing terms equivalent to those contained herein and the form of which
has
been approved by the Disclosing Party. The Receiving Party shall also procure
non-disclosure undertakings from its employees having access to the Confidential
Information on a need-to-know basis. The terms of the non-disclosure undertaking
shall be no less stringent than those contained herein.
10.5
All
Confidential Information of a Disclosing Party shall remain the sole property
of
such Disclosing Party. At the termination or expiration of this Agreement,
or at
any time the Disclosing Party requires, the Receiving Party shall return to
the
Disclosing Party all equipment, manuals, reports or other written or soft copy
information regardless of the form, whether originals, copies, derivative works,
test results or other information created by the Receiving Party reflecting
the
Disclosing Party’s Confidential Information, and shall not keep or retain any
copies of the Disclosing Party’s Confidential Information. The confidentiality
and nondisclosure obligations contained in this Article X shall survive
termination of this Agreement until such time as the Confidential Information
becomes Non-Confidential Information pursuant to the terms contained
herein.
14
ARTICLE
XI. Ownership of Results and Industrial & Intellectual Property
Rights
11.1
Any
manufacturing techniques or processes or any know how, in the broadest sense,
invented and/or developed under this Agreement shall be owned as follows. If
relating (i) to the Application and manufacturing processes related to the
Application, the Technical Documentation, Systems, Vystar Technology, and
resulting processes, components, manufacturing processes and SOPs or other
Vystar Confidential Information shall be Industrial Property Rights or other
intellectual property rights owned by Vystar (“Vystar Owned Property”; (ii) to
manufacturing processes of compounded latex and prevulcanized lattices not
relating to the Application, Revertex Technology, and resulting processes,
components, manufacturing processes and SOPs or other Revertex Confidential
Information shall be Industrial Property Rights or other intellectual property
rights owned by Revertex (“Revertex Owned Property”). All of the Technology
owned individually by either Vystar or Revertex, as defined herein, shall be
prosecuted by that party individually in their sole individual
discretion.
11.2
All
Improvements made to, which shall include derivative works made from, the
individually owned Technology, being either Vystar Owned Property or Revertex
Owned Property (“Owning Party”), the corresponding Technical Documentation,
Systems, Application or products by one or more employees or contractors of
the
non-Owning Party shall be works for hire and shall remain the exclusive property
of the Owning Party as part of the Owning Party’s Confidential Information.
11.2.1
Such Owning Party Improvements shall become subject to this Agreement; and
11.2.2
The expenses and costs in procuring and maintaining the intellectual property
protection for the Improvements shall be the responsibility of the Owning Party,
who shall determine whether to apply for patent or other appropriate protection
and, if so, which party shall prepare and prosecute such application and in
which countries corresponding applications shall be filed and by whom.
11.3
During the term of this Agreement, the non-Owning Party shall notify the Owning
Party of Improvements it or one of its contractors has made to the Owning
Party’s Technology. The non-Owning Party and/or its contractors, and their
employees, representatives and contractors shall cooperate fully with the Owning
Party in preparing, prosecuting, and otherwise securing such intellectual
property protection. Expenses of preparing, prosecuting and otherwise securing
such intellectual property protection shall be borne by the Owning
Party.
15
11.4
All
results obtained by any of the tests carried out shall be vested in the Owning
Party, as defined herein, and the Owning Party may use such results without
any
restriction.
11.5
If a
Party becomes aware that the Products infringes upon an Intellectual Property
Right of a third party, it will promptly notify the other Party thereof in
writing. In such event, each Party will do everything possible to cure the
Products from a potential infringement in order to avoid as much as possible
an
infringement suit. In case an infringement suit is nevertheless instituted
by a
third party against one or both of the Parties, each Party will equally
participate in any and all costs for the defense thereof. If the other Party
does not respond favorably to the registered letter within thirty (30) days
after the date it has been sent, the initiating Party will have the right to
bring a claim or legal action against such infringing entity in such country,
the costs and proceeds of which will be borne and recovered by that initiating
Party solely.
11.6
In
case a counterclaim relating to the Products is instituted against the
initiating Party, it will immediately inform the other Party thereof by
registered letter or courier with signature evidencing delivery mentioning
all
details relating to such counterclaim. In such case, the initiating Party will
make available to the other Party any defense in such counterclaim and the
other
Party will have the right to join the initiating party in the claim or legal
action at any time possible and/or to participate in the defense of the
counterclaim. Any participation and/or observations will be taken into account
by the initiating Party in as far as reasonable. In the event that the other
Party joins the initiating Party, the costs and proceeds will be handled as
if
the parties had jointly brought the claim or legal action.
11.7
No
settlement by the initiating Party will diminish the rights or interests of
the
other Party in the Products without the other Party’s prior and explicit written
consent.
ARTICLE
XII.
Health Hazards and Insurance
12.1
In
the event that in the course of implementation of the Development or any of
the
Licensed Activities any employee of Revertex has suffered damage to his/her
health caused by or in connection with the Products, Revertex shall take
immediate necessary actions and promptly notify Vystar to that effect, and
both
parties shall discuss and determine necessary matters including the
determination as to whether or not the scheduled test shall continue to be
carried out.
12.2
Revertex shall maintain and keep in force during the term of this Agreement
premises, workers’ compensation, general public liability insurance and any
other insurance against any insurable claim which might or could arise regarding
the development, manufacturing and packaging or any of the Licensed Activities
of the Products. Revertex shall add Vystar as an additional insured on Revertex’
insurance policies, and shall provide Vystar with a copy of such. Revertex
shall
notify Vystar immediately upon any modification, termination or expiration
in
coverages.
16
ARTICLE
XIII.
Indemnification
13.1
Each
Party (the “Indemnifying Party”) shall defend, indemnify and hold harmless the
other Party (the “Indemnified Party”) and its parent, sister and subsidiary
companies, affiliates, directors, supervisors, officers, employees, agents,
representatives and consultants (“Indemnified Persons”) from and against any and
all claims, actions, damages, fines, losses, expenses, costs (including without
limitation reasonable attorneys’ fees and litigation or arbitration costs) or
other liability incurred by the Indemnified Party and Indemnified Persons,
arising out of or relating to any allegation of or actual breach of any: (1)
term or condition of this Agreement; (2) any representation, warranty or
covenant of the Indemnifying Party under this Agreement; (3) any negligence
or
willful misconduct; (4) any claims of damages by any third party resulting
from
any act or omission of the Indemnifying Party; and/or (5) any infringement
or
violation by the Indemnifying Party of any third person’s intellectual property
rights arising as a result of the Indemnifying Party’s entering into and/or
performance of or attempt to perform this Agreement and/or (6) any violation
of
the Regulatory Requirements. Provided that the Indemnified Party shall provide
to the Indemnifying Party prompt written notice of any such claim for which
indemnification is sought and shall further provide reasonable cooperation
in
the defense and all related settlement negotiations thereof. The Indemnifying
Party shall have the sole right to control the defense of a claim for which
indemnification is sought hereunder. Notwithstanding any of the foregoing,
the
Indemnified Party shall have the right, in its absolute discretion and at its
sole cost, to employ attorneys of its own choice in the defense of such claim.
Neither Party shall have any liability for claims arising out of the other
Party’s use of the Technology, the Technical Documentation, the Systems, and/or
the Products not authorized by this Agreement or with any changes not approved
by the other party.
13.2
Each
Party shall bear all costs and expenses incurred in relation to any claim or
cause of action due to that Party’s own misconduct or negligence.
13.3
Where such injury, death, loss or damage is the result of the joint or
concurrent negligence or misconduct of both Revertex and Vystar or their
respective agents, employees, representatives, or contractors, Revertex’s duty
of indemnification shall be reduced in the same proportion attributed to the
negligence or misconduct of Vystar, its agents, contractors, employees or
representatives.
ARTICLE
XIV. Term & Termination
14.1
Term.
This
Agreement shall become effective on the Effective Date and shall remain in
full
force and effect for three (3) years from the Effective Date, unless and until
earlier terminated hereunder or unless modified by any term provision in the
Plan or Confirmation. This Agreement shall be renewable for successive 2-year
terms upon mutual agreement of the Parties ninety (90) days prior to each
previous term’s expiration.
17
14.2
Termination
without Cause.
Either
Party may terminate this agreement upon one hundred twenty (120) days notice
to
the other Party.
14.3
Termination
with Cause.
Unless
otherwise provided by law, either Party may terminate this Agreement in the
event that the other Party breaches any provision of this Agreement after the
non-breaching party serves the breaching party with a notification specifying
a
reasonable period of time, but in no case less than ten (10) days, during which
the breach shall be remedied and, if the breaching party fails to remedy the
breach within the specified period, the non-breaching party may terminate this
Agreement and/or the then effective Plan and Confirmation and may claim from
the
breaching party direct and ordinary damages resulting from the termination.
This
liability for damages shall not apply to indirect, special, incidental,
consequential or any other damages than the direct or ordinary
damages.
14.4
Termination
Upon Occurrence of Events.
Either
Party hereto may immediately terminate this Agreement upon delivering notice
to
the other party if any of the following events occurs:
14.4.1
Thirty percent (30%) or more of the assets of the other party becomes subject
to
attachment, provisional attachment, provisional disposition, public sale,
procedures for tax delinquency, petition for an auction sale, or any other
sanctions imposed by public authorities;
14.4.2
A
petition is filed by or against the other party for the institution of
proceedings for corporate arrangement, civil rehabilitation or special
liquidation, or for bankruptcy, which is not dismissed within thirty (30)
days;
14.4.3
An
order is issued by a competent regulatory agency to suspend the business of,
or
revoke the business license or business registration of, the other party that
is
related to this Agreement;
14.4.4
The other party becomes unable to make any payment or becomes insolvent, or
the
financial standing of the other party has otherwise seriously deteriorated,
or
there is a reasonable ground to suspect the deterioration and acceptable
reassurances have not been given after twenty (20) days notice of such
suspicions.
14.5
Upon
the termination of this Agreement Revertex shall cease to use any of the
Technology, Systems, Products, Application or Technical Documentation, unless
otherwise authorized by Vystar, and shall promptly return to Vystar all
information, Technical Documentation (including copies thereof) and the
remaining sample substance of the Application or any Product.
14.6
Notwithstanding the foregoing, the termination of this Agreement shall not
relieve either Party of any liability or obligation accrued prior to such
termination, and such termination shall not affect any provision, which shall
be
effective after such termination as stipulated or implied herein. The exercising
of its rights in this Article XIV by either Party shall not impair the
exercising of other rights of such Party pursuant to provisions of law or
herein, including, but not limited to the right of the terminating party to
claim damages.
18
ARTICLE
XV. Force Majeure
15.1
Notwithstanding any provisions herein, no Party shall be held liable or
responsible to the other Party for failure or delay in fulfilling or performing
any obligation under this Agreement if such failure or delay is caused by
actions, inactions or events which are beyond the reasonable control of the
affected Party, the effect of which is to prevent or interfere with such Party’s
performance hereunder, including but not limited to any weather; natural
disasters; government action or inaction or other governmental laws, orders,
restrictions, embargos or blockades; war; national or regional emergency; city
riot or other civil disobedience; revolution or rebellion; strike or other
work
stoppage; fire; explosion; flood; sabotage; pestilence; accident or breakdown
of
machinery, unavailability of fuel, labor, containers or transportation
facilities; accidents of navigation or breakdown or damage of vessels, or other
conveyances for air, land or sea or other impediments or hindrances to
transportation; or any other circumstances of like or different character
commonly referred to as an act of God or force majeure. Each Party agrees to
give the other Party prompt written notice of the occurrence of any such
condition and shall make all reasonable efforts to perform despite such
occurrence. In the event of that such condition continues for more than three
(3) months, the Parties may consult with each other to determine whether or
not
to terminate this Agreement.
15.2
Notwithstanding the aforesaid, the Parties shall perform obligations stipulated
herein as soon as possible after the end of such force majeure.
ARTICLE
XVI. Jurisdiction
Vystar
and Revertex agree that any disputes arising out of or in connection with this
Agreement shall be governed by Georgia law in the United States of America
(“U.S.A.”) and submitted into a court of competent jurisdiction in Atlanta,
Georgia, U.S.A..
ARTICLE
XVII. Matters subject to Discussion/Entire
Agreement/Amendment
This
Agreement, along with its Schedules, Plans and Confirmations constitutes the
entire understanding between the Parties, and supersede all previous
undertakings, agreements, and understandings, whether oral or written, between
the Parties hereto. No modification, amendment or alteration of this Agreement
shall be effective unless agreed to in writing signed by both Parties. Any
matters not provided for in this Agreement or any doubts arising in connection
with the interpretation of this Agreement shall be resolved through good faith
discussions between the parties hereto.
19
ARTICLE
XVIII. Notice
All
notices, requests and other communications under this Agreement shall be in
writing and shall be deemed to have been duly given if delivered by hand or
by
registered return mail to:
In
case of Vystar:
Xxxxxxx
Xxxxx
President
& COO
0000
Xxxxxxxxx Xxxx.
Xxxxxxxx
000, Xxxxx 000
Xxxxxx,
XX 00000
Phone:
x0
000-000-0000
Fax:
x0
000-000-0000
In
case of Revertex
__Revertex
(M) Sdn. Bhd.__
_______________________
Attn: Xxxxx
Xxx Ming__
Phone:
x000-000-0000____
Fax:
+__000-000-0000____
Provided,
however, that if a Party shall have designated a different address by notice
to
the other Party, then to the last address so designated. Either Party may change
its address by giving written notice to the other Party.
ARTICLE
XIX. Relationship of the Parties/No Third-Party
Beneficiaries
19.1
The
relationship between Vystar and Revertex is that of independent contractors
with
respect to all matters related to this Agreement. Each Party agrees that
discretionary authority over all significant business matters with respect
to
the other Party and its Technology rests with the owning Party, and the
non-owning Party shall have no authority, whether express or implied, to make
contracts, representations, warranties or any other obligations in the name
of,
or binding upon, the owning Party. Neither Party shall be responsible for the
other Party’s acts .
19.2
This
Agreement is made for the benefit of the Parties hereto and is not intended
to
benefit any third parties and shall not be available for enforcement or benefit
of any third parties not a Party to this Agreement as evidenced by a duly
authorized signature hereto.
20
ARTICLE
XX. Severability
If
a
court or arbitrative panel of competent jurisdiction finds any provision of
this
Agreement to be invalid or unenforceable, the provisions of this Agreement
shall
be separable and such invalid or unenforceable term(s) shall be ineffective
in
the affected jurisdictions to the extent of such prohibition or unenforceability
without invalidating the remaining provisions of this Agreement. The remaining
provisions of this Agreement and the invalidated provisions in other
non-affected jurisdictions shall remain in full force and effect until the
Agreement terminates or expires.
ARTICLE
XXI. Waiver
The
waiver by either Party of a breach of any provision of this Agreement shall
not
operate or be construed as a waiver of any subsequent breach of that particular
provision or any other provision on the Agreement. Failure by any Party at
any
time to enforce any of the provisions of this Agreement shall not affect or
impair such provisions in any way, or the right of any Party at any time to
avail itself of any remedies it may have for breach of such provisions pursuant
to this Agreement, either in equity or in law.
Article
XXII Taxes
22.1
Vystar shall reimburse Revertes for any existing taxes which Revertex may be
required to pay upon the production, transportation, delivery, use, possession
or storage of the Products, but not taxes upon, or measured by, the income
of
Revertex or the Raw Materials. Vystar shall provide Revertex, upon request,
with
properly completed exemption certificates for any tax from which Vystar claims
an exception.
22.2 Unless
it
elects otherwise, Vystar shall reimburse Revertex for any new taxes or increase
in existing taxes which Revertex may be required to pay upon the production,
transportation, delivery, use, possession or storage of the Product (other
than
taxes upon, or measured by, the income of Revertex or the Raw Materials) if
Revertex provides Vystar with written notice of such new or increased tax.
However, within thirty (30) days after receiving such written notice from
Revertex, Vystar may elect by written notice to Revertex not to reimburse
Revertex, in which event Revertex may terminate this Agreement upon written
notice. If Vystar does not give written notice of its ele tion not to reimburse
Revertex, Vystar shall reimburse Revertex for such new or increased
taxes.
22.3 Notwithstanding
the above, Vystar shall render all of its property stored or retained at
Revertex’ facilities to the appropriate government authorities for the purposes
of determining any personal property tax that may be assessed against such
property. Vystar shall pay any personal property tax assessed against its
property directly to the appropriate government authorities.
21
ARTICLE
XXIII. Parts
This
Agreement may be executed in two (2) or more counterparts, which together shall
form a single agreement as if both Parties had executed the same document.
ARTICLE
XXIV. Survival
The
following Sections and Articles shall survive the termination of expiration
of
this Agreement: Jurisdiction Article XVI, Effect of Termination Section 14.5,
Indemnification Article XIII, Ownership Article XII, Confidentiality Article
X,
Records Retention Section 8.5, No Warranties Article VII, and Audit Section
8.7.
In
witness hereof, the Parties hereto have caused this Agreement to be executed
in
duplicate with their respective names and seals affixed thereto, and each Party
shall retain one copy thereof.
Date:
April 11, 2008
Vystar
Corporation
|
|
Signature:
/s/
|
Name:
|
|
Title:
|
|
Date:
|
Revertex:
|
|
Signature:
/s/
|
Name:
|
|
Title:
|
|
Date:
|
22
EXHIBIT
A
PLAN
CONFIDENTIAL
VYTEXÔ
NRL SOP
Preparation
of VytexÔ
Natural
Rubber Latex from Field Latex
Authors:
Xxxxxx Xxxxxxxxx, Xxxx Xxxxx, Vystar Corporation
1.0
INTRODUCTION
1.1
Purpose
The
purpose of this procedure is to describe a means of chemically reducing the
antigenic protein (AP) level in natural field rubber latex without diminishing
the physical properties of the latex.
1.2 Procedure
This
procedure is performed prior to concentration. The beginning feedstock is field
latex, containing approximately 27% total solids content (TSC) prior to
de-sludging.
1.3 Results
The
protein results of this procedure are to be determined by Xxxxxx Xxxxxxx
Foundation Education Research Institute, an independent laboratory analysis
using the ASTM D6499-03 Inhibition ELISA protocol. Once the aging process is
completed, as proscribed in Section 4.2, a sample of the batch should be sent
within three (3) days to the following address for protein testing:
LEAP
Testing Service
c/o
Xxxxxx Xxxxxxx Foundation for Education & Research Inc
Attn:
Xx.
Xxxxx Xxxxxxx
Xxx
Xxxxxxx Xxxxxx
Xxxxx,
Xxxxxxxxxxxx 00000
Phone:
(000) 000-0000
Fax:
(000) 000-0000 or 000-0000
E-mail:
XXX@xxxxxxx.xxx
2.0
PREPARATION OF CHEMICALS TO TREAT 1 KG OF FIELD LATEX (
***********************
3.0 MIXING
& CENTRIFUGING of VYTEXÔ
NATURAL RUBBER LATEX
***********************
*************
THESE PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH
THE
COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT
23
4.0 CONCLUSION
& DISCUSSION
4.1
A
charged surfactant is mixed with the natural rubber latex emulsion and stirred
to extract or ‘wash’ the proteins from the cisisoprene micelles. The
surfactant acts on the protein molecules through van der Waal forces or weak
hydrogen bonding to bring the protein into the hydrophilic phase. Excess
surfactant is used to keep the micelles suspended in the hydrophilic
phase. Meanwhile, insoluble aluminum hydroxide is added to the
emulsion which captures the proteins with electron pair sharing bonding.
The resultant insoluble complex is separated from the emulsion by centrifuging
or filtration.
4.2
Similar to existing practices by processors of latex, Vytex NRL should be stored
for 21 days for maturation purposes prior to distribution. Further, the
Certificate of Analysis (COA) that will accompany every Vytex NRL, as described
in the Services of Exhibit D, should only include test results taken immediately
after the 21 day maturation process. An example of the COA is attached for
reference. The following is a list of parameters with definitions for
completion;
·
|
Date
Issued: The initial starting date of the production run. This should
be listed by month & day and year. For example- February 2,
2008
|
·
|
Lot#:
The lot # is defined by the month, day, and last two digits of the
year. Also noted will be the trial run. For example-
020208/12
|
·
|
Product
Name: The product name will always be defined as Vytex™
NRL
|
·
|
Customer:
The customer will define the recipient of Vytex NRL. For example-
Regent Hospital Products Sdn Bhd
|
·
|
Address:
The address will reflect the destination of the Vytex NRL material.
For example- Xxx 0, Xxxxxx Xxxxxxxxxx 0, Xxxxx Xxxxxxxxxx Xxxxxx
09000
Kulim, Kedah Darul Aman, Malaysia
|
The
test
result for each property measured should be the median value of at least three
samples measured per property.
24
Certificate
of
|
VytexÔ
Natural Rubber Latex (NRL)
DATE
ISSUED: February
2, 2008
LOT
#:
|
020208/12
|
PRODUCT
NAME:
|
VYTEXTM
NRL
|
CUSTOMER:
|
|
ADDRESS:
|
|
Properties
Measured and Units of Measurement
|
Test
Date
|
Test
Method
|
Test
Result
|
Specification
|
|||||||||
TSC
(%)
|
2-25-08 | ISO 124 |
60.40
|
60-62
|
|||||||||
Alkalinity
(%)
|
2-25-08 | ISO 125 |
0.71
|
0.60-0.80
|
|||||||||
VFA
no.
|
2-25-08 | ISO 506 |
0.016
|
0.070
Max
|
|||||||||
Viscosity,
cPs
(sp 2/60)
|
2-25-08 | ISO 1652 |
62.5
|
20-100
|
|||||||||
Mechanical
Stability Test (MST)
|
2-25-08 | ISO 35 |
1,800
|
800-2,500
|
|||||||||
Coagulum
(mesh#
80) ppm
|
2-25-08 | ISO 706 |
35
|
100
Max
|
|||||||||
pH
|
2-25-08 | ISO 976 |
10.87
|
10-11.5
|
We
certify that we have tested a representative sample from the above product.
All
tests are carried out in accordance to the following stated QC Test Methods
based on relevant standards.
All
the
test samples were prepared in accordance to Sampling Method ISO
123.
25
The
measurement of uncertainty of the tests is
available upon request.
Approved
Signatory
|
|
Name
|
|
Designation
|
Vystar
Corporation•
0000
Xxxxxxxxx Xxxxxxxxx, Xxxx.000, Xxx. 000 • Xxxxxx, XX 00000 • V 770.965.0383 • F
770.965.0162 • xxx.xxxxx.xxx
26
EXHIBIT
B
TRADEMARKS
Revertex
shall place the following trademark label on all packaging and/or bills of
lading shipping the Vytex™ NRL. The size of this label shall be appropriate for
the size of the packaging. For example, for sample-sized shipments, the label
shall be no smaller than 4 inches by 6 inches. For 55 gallon drum-sized
shipments, the Vytex label shall be no smaller than 8 inches by 12 inches.
Vystar shall provide Revertex with the graphics for such labeling.
If
the
Vytex order is in a larger sized vessel than a 55-gallon drum, the Vytex label
shall be placed on the xxxx of lading accompanying that shipment. The Vytex
trademark label on the bills of lading shall be no smaller than 2 inches by
3
inches.
Revertex
shall also comply with the following additional usage requirements:
1.
|
The
Vytex logo must be present on all Vytex NRL products and
samples.
|
2.
|
Revertex
must not obstruct the Vytex logo by placing any other elements either
on
or too close to the logo.
|
3.
|
The
Vytex oval shape must not be used as a decorative
element.
|
4.
|
Revertex
must not add any trademark symbol to any of the Vytex or other Vystar
products or in conjunction with the Vytex or Vystar logos that do
not
already appear there from Vystar.
|
5.
|
Revertex
may only use the Vystar and Vytex logo or oval symbol in connection
with
the packing and shipping of Vytex consistent with the terms in this
Manufacturing Agreement.
|
Revertex
may use the Vystar and Vytex trademarks only as provided for herein unless
expressly approved in writing by Vystar.
The
following is the Vytex logo.
Vytex™
is a trademark of Vystar Corporation, Duluth, Ga
27
The
following is the Vytex logo as it should be used on product
labeling.
Vytex™
NRL
Production
Date: _________
Vytex™
is a trademark of Vystar Corporation, Duluth, Ga
28
EXHIBIT
C
FEES
The
Fees
shall be all-inclusive for the Services, as described in this Agreement and
as
listed in Exhibit D. The Fees shall be calculated initially* as
follows:
1. ***************,
plus
2. ***************,
plus
3. ***************,
plus
4. ***************.
*
With an increase in volume of Vytex NRL toll manufacturing, the parties shall
negotiate a volume discount schedule.
*************
THESE PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH
THE
COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT
29
EXHIBIT
D
REVERTEX
SERVICES
The
Revertex Services shall include all activities required to follow the procedures
outlined in the Plan and SOP as described in Exhibit A and in the Agreement
generally. Without limiting the foregoing, the Services shall include the
following:
1.
|
Procurement
of all raw materials and raw latex required to manufacture the Vytex™ NRL,
as described in the Plan and SOP attached hereto as Exhibit
A.
|
2.
|
Mixing
of all materials required to required to manufacture the Vytex
NRL.
|
3.
|
Centrifuging
of the NRL and the Vytex NRL mixture after application of the Vytex
process and chemicals pursuant to the SOP in Exhibit
A.
|
4.
|
Holding
and Aging of the Vytex NRL mixture.
|
5.
|
Storing
Vytex NRL.
|
6.
|
Testing
each batch and/or lot of Vytex NRL and providing a Certificate of
Analysis
(“COA”) in triplicate with the standard parameters. Revertex shall: (i)
send 1 copy of the COA to Vystar upon completion of the testing,
(ii) keep
1 copy for the required record retention period (no less than 10
years)
and shall send the 3rd
copy to the customer designated for that batch and/or lot number
as
prescribed by Vystar.
|
7.
|
Packaging
the Vytex NRL for shipment.
|
8.
|
Arranging
for and putting into the hands of the common carrier mutually agreed
to by
the parties.
|
9.
|
Notifying
Vystar on a periodic basis agreed to by the parties of the status
of
manufacturing, inventory and shipment, and as otherwise requested
by
Vystar.
|
10.
|
Submitting
the reports to Vystar on the manufacturing process and test results
as
requested by Vystar on the intervals mutually agreed to by the parties,
but in no event less than
quarterly.
|
11.
|
Participating
in periodic conference calls and/or meetings to review the Services
and
experiences.
|
12.
|
Participate
in and be available for communications with Vystar clients and prospective
clients on specifications and other discussions regarding Vytex
NRL.
|
13.
|
Other
services as mutually agreed to by the
parties.
|
30
EXHIBIT
E
MATERIAL
SAFETY DATA SHEETS
31
32
EXHIBIT
F
REVERTEX
STORAGE FACILITIES DESCRIPTION
33