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Memorandum of Understanding (MoU) Between Hirata Corporation (HC) and Indonesian Agency for Agricultural Research and Development (IAARD) on Joint Collaboration Program for Sustainable Development for Functional Foods, Cosmetics & Toiletry and Pharmaceutical Use, 2020

Subject matter

Memorandum of Understanding

Summary of use(s)

Memorandum of Understanding between IAARD  and Hirata Corporation

Purpose or background

To enhance collection of potential plant genetic resource of Indonesia, jointly evaluate and develop marketable new product of functional foods, cosmetics, toiletry and pharmacy

Contact details

IAARD
Ministry of Agriculture
Jl. Ragunan 29 Pasar Minggu
Jakarta Selatan 12540
Indonesia

This Memorandum of Understanding (hereinafter referred to as the is made in Jakarta, by and between:

The Indonesian Agency for Agricuiturai Research and Deveioprrtent (IAARD), iocated dt Ji Ragunan No 29; Pasar Minggt½ Jakarta Selatan; Indonesia represented by Mr Fadjry DjUfry; Director General of Indonesian Agency for Agricuiturai Research and Deveiopment, (hereinafter referred to as "IAARD"), as the one Pa±r,

And

The Hirata Corporation, located at 111, Hitotsugi, Ueki, Kita, Kumamoto, Japan, 861-0193, represented by Yasuhide Hiraga, Chief Technology Officer, Managing Executive Officer Director of Research and Development, (hereinafter referred to as the Hirata), as the other party;

Referred to together as the "Parties", and individually as a "Party"

CONSIDERING that it is in the interest of both Pafties to build and strengthen their relations through horizontal relationship in the field of evaluating and joint development of

Indonesian                     Resources                         COSiYieÜCS  and

Pharmaceutical use"

RECOGNIZING the importance of protecting, conserving and sustainable utilizing of plant genetic resources and deveioped materiais to discover the possibiiities for agricuiturai crops use;

WHEREAS the minutes of meeting September 2, 2019.

PURSUANT to the Prevailing Laws and Regulations in Indonesia and other international Treaty for both countries;

In consideration of the mutual cooperation made hereinafter, IAARD and Hirata hereby agreed with the following general provisions and terms:

ARTICLE 1 OBJECTIVES

The objective of this Memorandum of Understanding (MOU) is to undertake the joint project through horizontal relationship, enhance collection of potential plant genetic resource of Indonesia, jointly evaluate and develop marketable new product of functional foods, cosmetis, toiletry and pharmacy. The benefit sharing from commercialization of the new products will be made for Indonesia according the Access and Benefit Sharing System and valuation.

ARTICLE 11 EXECUTING INSTITUTIONS

In order to implement this MOU, the Paries have considered, the executing institutions shall be:

  • Indonesian Horticultural Research and Development (ICHORD);
    1. Indonesian Ornamental Crop Institute (IOCRI);
    2. Indonesian Citrus and Subtropical Fruits Research Institute (ICISFRI);
  • Indonesian Center for Estate Crops Research and Development (ICECRD);
    1. Indonesian Spice and Medicinal Crops Research Institute (ISMCRI);
    2. Indonesian Sweetener and Fiber Crops Research Institute (ISFRI);
  • Indonesian Center for Food Crops Research and Development (ICFORD);
    1. Indonesian Legumes and Tuber Crops Research Institute (ILETRI);
  • Indonesian Center for Agricultural Post Harvest Research and Development

(ICAPOSTRD);

  • Indonesian Center for Agricultural Biotechnology and Genetic Resources Research and Development (ICABIOGRD).

ARTICLE 111

AREAS OF COOPERATION

The areas of cooperation would cover

Phase 1;

  • Research project for collecting, handling and processing of collected genetic resources by Indonesian Institute;
  • Joint evaluation of sample (extract) from collected genetic resources in Indonesia

(first evaluation);

  • Transfer of selected research sample (extract or dry sample) developed from the 1st evaluation to HC for 2nd evaluation in Japan at HC laborato:y with Indonesian researcher;
  • Joint research on formulation, product development, safety and functional/efficacy evaluation of selected product;

Phase 2;

  • Sharing Data and samples of the collections and evaluation for in both sides, short or medium-term training program, expertise sharing, technology transfer, establishment of research sites and facilities such as laboratory, laboratory equipment;
  • Collaboration in developing production system in Indonesia as well as in global action for commercialization of products obtained;
  • Obtain patent rights jointly and share the benefit from commercialization; Phase 3;
  • Establishment of new export products;
  • Developing potential crops in Indonesia;

ARTICLE IV

IAARD CONTRIBUTIONS

IAARD, subject to the availability of technical, personnel and resources, and mutually agreed upon shall;

  • provide research funding, expertise sharing, technology, supports establishment of research sites and facilities such as laboratory, laboratory equipment;
  • develop joint research projects, case by cases bases covered by this MOU and according to the Annex Il (General Format for Research Project Proposal);
  • provide access to HC of research sample of Indonesia to be acquired through joint research project approved under the terms of this Agreement and detailed in Annex
  • provide sales to HC on products developed from the joint research projects approved and conducted under covered by this MOU.

ARTICLE V

HC CONTRIBUTIONS

HC, subject to the availability of financial and resources, and as mutually agreed upon, shall:

  • welcome multiple research projects developed under cover of the MOU and according to Annex Il to cover expenditures for conducting the projects approved.
  • share the benefit with IAARD and or responsible research institutes in the event of commercialization of any result obtained through the research project approved and conducted under cover of this MOU and as shown in Annex Il.
  • provide expertise sharing, technology, supports esbblishment of research sites and facilities such as laboratory, laboratory equipment.
  • facilitate Indonesian researchers involved in the collaborative project to pursue short term training at HC and or at Japanese Universities or Research Institute to acquire knowledge, research skills and technologies.

ARTICLE VI PUBLICATION

  • The of scientific research under this collaboration shall be informed to the Parties prior to joint publishing under the condition that both parties have agreed in advance upon disclosure to the public and acknowledge funding source by HC.
  • Data and information obtained during the research collaboration shall be made accessible to both parties.

ARTICLE

SEITLEMENT OF DISPUTE

Any difference or dispute arising out of interpretation or implementation of this MOU shall be settled amicably through consultations and/or negotiations between the Parties.

ARTICLE

AMENDMENT

This MOU can be reviewed or amended at any time by mutual written consent by the Parties. Such revisions or  shall enter into force on such date as determined by the Parties and shall form as an integral part of this MOU.

ARTICLE IX

MATERIAL TRANSFER AGREEMENT

All biological materials used in the collaboration will be transferred using Material Transfer (MTA) that would carefully describe the Material. Further, the transfer of biological materials, including breeding materials and germplasm, will be subject to pertinent biosafety and bio-prospecting laws, rules, and regulations.

ARTICLE X

PROTECTION OF INTELLECTUAL PROPERTY RIGHTS

  • Any intellectual properW brought by one Party for the implementation of this MOU shall remain the property of that Party.
  • Any intellectual property resulted from activities under this MOU shall be jointly owned and subject to separate and specific arrangement concluded between the Parties.
  • For the soåeåy developed products (breeding materials, patent, PVP (plant variety protection)) should be registered with different kinds or types of intellectual property rights based on or related law or International Treaty.

ARTICLE Xl

GENETIC RESOURCES AND TRADITIONAL KNOWLEDGE

  • The Parties shall recognize the value of genetic resources and traditional knowledge (GRTK), and recognize the rights of holders of GRTK to the effective protection over GRTK against misuse and misappropriation of both Patties. GRTK shall be protected against misuse and misappropriation in both Parties.
  • Any utilization of Party's GRTK under the implementation of this MOU wili be carried out through specific arrangement to be concluded by the Parties in writing.

ARTICLE CONFIDENTIALITY

  • Each Parb,t will take appropriate and reasonable care to keep the Confidential Information of the other Party, and not disclose it to any third party without the prior, written consent of the other Part/. If granting access to such Confidential Information at all to its employees, students, contractors, and/or agents, a receiving Party shall grant access only on a need-to-know basis and shall remain liable for the use by these individuals. Receiving Party shall further require that each such employee, student, contractor, and/or agent agree in writing to maintain such confidentiality obligation under this MOU, and following its termination.
  1. In the event of oral disclosure of Confidential Information, the disclosing Parw shall identify at the time of disclosure the confidential nature of the oral communication to the receiving Party and reduce the Confidential Information to writing, marking it "confidential," and providing it to the receiving Parw within ten (10) days after oral disclosure.

b, Confidential Information does not include any information that:

 is known to a receiving Party before the disclosing ParW discloses it, as long as the receiving Party had no obligations to keep that information confidential; or ii. is or becomes publicly known without the fault of a receiving party; or iii. is obtained by the receiving Party from a third party in circumstances where the receiving Parw has no reason to believe that there has been a breach of an obligation of confidentiality owed to the disclosing ParW•, or iv. is independently developed by the receiving Party; or is approved for release in writing by an authorized representative of the disclosing Party,

  • The preceding, shall not prevent a Receiving Parb{ from disclosing the disclosing Party's Confidential Information to comply with any law if required to do by a judicial or administrative body with jurisdiction over the Party or under its governance requirements under institutional policies. Before making a disclosure, the receiving Party shall provide to the disclosing Party (i) notice of the requirement of further disclosure; (ii) a description of the information to be disclosed; and (iii) the opportunity, if available, to seek any legal redress prior to such further disclosure.
  • Nothing in this clause should be understood as an ability to keep project's results confidential in terms different from those agreed for Intellectual ProperW and Publications.

ARTICLE Xlll

ENTRY INTO FORCE, DURATION AND TERMINATION

  • This MOU shall enter into force on the date of the last signature by the Parties.
  • This MOU shall remain in force for a period of 5 (five) years and may be extended by mutual consent of the Parties.
  • This MOU may be terminated at the request of each PaO/ any time by giving written notification to the other Party at least 6 (six) months in advance of such termination notification,
  • The termination of this MOU Shali not affect the validity and duration of any on-going activities or projects made under this MOU until the completion of such activities or

IN WITNESS WHEREOF, this MOU is done in Jakarta, Indonesia on and in Japan on  shall be effective as the Effective Date and is executed in two identical counterparts which are equally valid. The Parties to this MOU have thoroughly read and certify this to be in accordance with their desires in all aspects that relevant signatures are set to be of evidence at the presence of the witness thereof and each copy held by the Parties.

 

For

Hirata Corporation

Yasuhide Hiraga

Title: Chief Technology Officer, Managing

Executive Officer Director of Research and

Development

Hirata Corporation

Date : 01/              1/2020

For

Indonesian Agency for Agricultural Research and Development

Fadjry Djufry

Title: Director eneral of Indonesian Agency for Indonesian Agency for

Agricultural Research and Development

Date : 9/03/-z..òto

 

Annex (Phases of the Program)

Joint Developing Program for New Plant Resources

For sustainable development of new plant resources for Functional Food,

Cosmetics & Toiletry and Pharmaceutical use

Phase-I :Research

Phase-I: Exploration / use Ex-situ collection (supported by HC) and Joint evaluation

  1. Both Parties cooperate to carry out joint coiiecting expedition to iooking for new resources. Existing resources (data and sample) of Institute of Indonesia can be incorporated.
  2. Joint evaluation of co!!ected resources wi!! be made in Indonesia (1 st eva!uation).
  3. A part of selected resources (not live plant, dry sample or extract from plant) will be transferred to HC for 2nd evaluation with a certificate of compliance provided by IAARD and appropriate MTA signed.
  4. Seiected samples and related data (outcome) obtained through the Phase-í(joint exploration, 1st and 2nd evaluation) will be exchanged between the Parties.
  5. IAARD wiii provide faciiity and staff and HC wiii provide financiai and technical supports to IAARDr

Phase-2: R&D for production and commercialization

  1. Both patties wili share the outcome (data, resources, knowhow) of the Phase-I to cooperate.
  2. IAARD wiii carry out R&D to investigate domestication and production of potentiai plant genetic resources selected through Phase-I in Indonesia.
  3. HC wili carry out R&D for commercialization in cooperation with University, Institute or other private party using se!ected genetic resources through Phase-I.
  4. Both Parties will cooperate for developing production system, establishing partnership with local growers in Indonesia for commercialization in global market.
  5. IAARD will provide HC an exclusive license for commercialization and IAARD will hoid production priority in Indonesia of the outcome.
  6. IAARD wi!! provide facility and staff and HC will provide financial and technical supports to IAARD.
  7. Benefit sharing obtained from the commercialization shall start at this phase according to ABS (access and benefit sharing) agreement.

Phase-3

. •.New Product Introduction

Cooperative Production and Commercialization

Goal: establishment of new export products (commodities) with ethica\ production system for Functional Food, Cosmetics & Toiletry and

Pharmaceutical use

 

ACRO 'NOVAS'

Hirata

Corporation

Phase-3: Ethical production system development and establish new commodities

  1. The new discovety (outcome) wiiå be made avaiiabie in agriculture of Indonesia as one of the new commodities with appropriate process.

Whiie a system to protect right of country of origin, of Indonesia wiii be estabiished for sustainable development for Indonesia,

Annex Il

General format for Research Project Proposal

  1. Basic information
    • Project title
    • Partner(s) information and contact details:

Name of institute/Research group:

 

Name of project leader:

Name of project leader 2:

Email:

Email:

Telephone number:

Telephone number:

  • Total cost (for three years): estimated funding requested
  1. Project description
    • Background and justification

Please describe /oca/ information regarding material to co//ect and use, such as past research done and material used and make list of them as potentia/ resource overview.

  • Contribution to the national development plan or the strategy
  1. Objective of the project

Please describe the objective and expected outcomes, or direct effects, of the project.

4, Expected Results

Please describe material, data, information, knowledge to use for the project and expecting outcomes.

  1. Activities

Please describe the activities that will be put in place to achieve the outcomes.

  1. Budget

Please describe resources needed to implement the projecti.

  1. Implementation schedule (Work Plan) Please insert table with a calendar ofactivities
  2. Commitment of the Group:

The Research Group recognize the Confidentiality and exclusivity of  and DATA compromises asumed by IAARD r$pect to HC

HC will cover up to $... of digible expenditures per year, and up to $ ... for three years.

Eligible expenditures are: (i) The of travel, Sl£h as accommo&tion, transportation, car and fuel to materiaf; (ii) Cost of growirg the collected smp\e, maintain, muftiptying and (iii) expenditures for carry out evaluation trial /research of collected sampls and prepare them to transfer to HC for next research sbge,

Salaris           per diem of public officials are not eligible.