Document:

MANUFACTURING AND SUPPLY AGREEMENT

 

This Manufacturing and Supply Agreement (the "Manufacturing Agreement ") is entered into as of the 23rd day of June, 2011 (the " Effective Date "), by and between ThePharmaNetwork, LLC, a New Jersey limited liability company and its wholly owned subsidiary, Ascend Laboratories, LLC (together "TPN"), and Elite Pharmaceuticals, Inc. and Elite Laboratories, Inc. (a subsidiary of Elite Pharmaceuticals, Inc.), both Delaware corporations ("ELITE").

 

RECITALS

 

WHEREAS, ELITE and TPN (the “Parties”) entered into a Product Collaboration Agreement (“Collaboration Agreement”) on November 10, 2006 to collaborate in the development, commercialization, manufacturing and distribution of a generic Methadone Hydrochloride, 10 mg tablets pursuant to ANDA #090635 (the “Product”);

 

WHEREAS, by Settlement Agreement, made as of March 11, 2011 (“Settlement Agreement”), the Parties terminated and settled the Collaboration Agreement whereby Elite has agreed to relinquish to TPN all rights and interest in the ANDA in exchange for the payment of certain amount;

 

WHEREAS, ELITE is engaged in the manufacture and commercialization of pharmaceutical products;

 

WHEREAS, ELITE wishes to supply TPN with pharmaceutical products on the terms and conditions set forth in this Manufacturing Agreement;

 

WHEREAS, TPN desires to have ELITE supply TPN with Product on the terms and conditions set forth in this Manufacturing Agreement; and

 

NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth in this Manufacturing Agreement, and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Parties hereto agree as follows:

 

ARTICLE 1

 

DEFINITIONS

 

Capitalized terms used in this Manufacturing Agreement shall have the meanings ascribed to them in this Article 1 or as otherwise set forth herein.  Unless the context indicates otherwise, the singular shall include the plural and the plural shall include the singular.

 

1.1.          "Act" means the United States Food, Drug and Cosmetic Act, as amended from time to time, and the regulations promulgated thereunder.

 

1.2.          "Affiliates" means a corporation or any other entity that directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, the designated party, but only for so long as the relationship exists.  "Control" shall mean ownership of shares of stock having at least 50% of the voting power entitled to vote for the election of directors in the case of a corporation.  Notwithstanding the foregoing, the owners of preferred stock (or common stock issued upon conversion thereof) of either party such as financial institutions, venture capital funds and private equity investors shall not be its "Affiliates" for purposes of this Manufacturing Agreement.

 

{***} Confidential portions of this exhibit have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance with Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

  

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1.3.          "ANDA" means Abbreviated New Drug Application No. 0090635 pursuant to Section 505 of the Act (21 U.S.C. Section 355) submitted by TPN to the FDA for approval to market and duly approved by the FDA on November 25, 2009.

 

1.4.          “ELITE” shall mean Elite Pharmaceuticals, Inc., and Elite Laboratories, Inc. (a subsidiary of Elite Pharmaceuticals, Inc.), both Delaware corporations

 

1.5.          “API” shall mean the active pharmaceutical ingredient of the Product.

 

1.6.          "Batch" means a specific quantity of Product as set forth on Exhibit A that is intended to have uniform character and quality, within specified limits, and is produced according to a single manufacturing order during the same cycle of manufacture.

 

1.7.          "Certificate of Analysis" means a certificate issued by the manufacturer of a lot or batch of a Product, which certificate contains such information as provided in the Quality Agreement (as defined below).

 

1.8.          "cGMP" means the current standards for the manufacture of pharmaceuticals, as set forth in the United States Federal Food, Drug and Cosmetic Act, as amended, and applicable regulations and guidance promulgated there under, including without limitation the Code of Federal Regulations, as amended from time to time.

 

1.9.          "DEA" means the United States Drug Enforcement Agency or any successor United States governmental agency performing similar functions with respect to controlled substances.

 

1.10         "Facility" means any ELITE manufacturing and packaging facility and Epic Pharm LLC (Laurelton, NY) packaging facility.

 

1.10.    "FDA" means the United States Food and Drug Administration or any successor United States governmental agency performing similar functions with respect to pharmaceutical products.

 

1.11         “Forecast”  shall have the meaning set forth in Section 2.4.

 

1.12         “Initial Term” shall have the meaning set forth in Section 7.1.

 

1.13.        "Laws" means any present and future national, state, or local law (whether under statute, rule, regulation, or otherwise); requirements under permits, orders, decrees, judgments, or directives; and requirements of a Regulatory Agency and any other applicable government authorities, including without limitation Good Manufacturing Practices as promulgated by the United States Food and Drug Administration and specified in the U.S. Code of Federal Regulations Parts 210 and 211, as amended from time to time.  The determination of either Party to this Manufacturing Agreement that a Legal Requirement is necessary shall be dispositive for purposes of this Manufacturing Agreement.

 

1.14.        “Collaboration Agreement” means the written agreement entered into by ELITE and TPN as of the 10th day of November, 2006 titled “Product Collaboration Agreement”.

 

1.15.        “TPN” shall mean ThePharmaNetwork, LLC, a New Jersey limited liability company, and its wholly owned subsidiary, Ascend Laboratories, LLC, a New Jersey limited liability company

 

{***} Confidential portions of this exhibit have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance with Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

  

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1.16.        "Product" means the finished pharmaceutical products identified in the attached Exhibit A.

 

1.17.        "Product Specifications" means the written specifications for the Product approved by the FDA, and delivered to ELITE thereafter as Exhibit B of this Manufacturing Agreement.

 

1.18.        "Quality Agreement" means the agreement to be entered into by the Parties hereto concurrently herewith, setting out the quality assurance standards to be applicable to the manufacturing services provided by ELITE as set forth in Exhibit C.

 

1.19         “Release Certificate” means a document, also known as a “Certificate of Compliance” or “COC” confirming that the Product to which such document refers has been manufactured in accordance with, and in all respects complies with the ANDA, the Product Specifications and cGMP.

 

1.20         “Renewal Term” shall have the meaning set forth in Section 7.1.

 

1.21         “Settlement Agreement” means the written agreement entered into by ELITE and TPN as of the 11th day of March, 2011 titled “Settlement Agreement.”

 

1.22.        "Shipments" means all shipments made hereunder of Product.

 

1.23.        "Territory" means the United States.

 

1.24.        "United States" means the United States of America and its states, territories, possessions and protectorates thereof, the District of Columbia and the Commonwealth of Puerto Rico.

 

ARTICLE 2

 

SUPPLY OF PRODUCT

 

2.1.           Supply.  During the Term of this Manufacturing Agreement as defined below, and subject to the terms and conditions set forth herein, TPN agrees to purchase Product it requires exclusively from ELITE pursuant to this Manufacturing Agreement and ELITE agrees to supply the Product exclusively to TPN, from the Facility, such Product as is ordered by TPN.

 

   (a)  Product supplied hereunder shall be supplied as specified in TPN's purchase orders made pursuant to this Article 2 and shall meet the Product Specifications.

 

   (b)  Each shipment shall be accompanied by a Certificate of Analysis in English, a Release Certificate and any other documentation required by Laws.

 

   (c)  Product shall be manufactured in accordance with cGMP and all other applicable Laws and any procedures set forth in the Product Specifications and Quality Agreement, and such additional procedures as may be agreed upon in writing by the Parties.

 

  (d)   Product shall be purchased by TPN under this Manufacturing Agreement at the prices set forth on Exhibit A attached hereto.

 

  (e)   Neither Elite nor any of its Affiliates shall supply, solicit, or arrange for, or take orders for the supply of the Product for any person (including any Affiliates) for the purpose of manufacturing, marketing and/or selling the Product for sale in the Territory.

 

  (f)    Notwithstanding anything to the contrary contained in this Manufacturing Agreement and subject to the terms of the Settlement Agreement,  TPN acknowledges that ELITE may develop a generic product containing methadone of any strength (including the filing of an abbreviated new drug application relating to such product) and (ii) nothing herein shall be construed to limit or otherwise restrict ELITE from developing, commercializing, manufacturing and distributing any pharmaceutical product similar to, or which may compete with, the Product or the ANDA.

 

{***} Confidential portions of this exhibit have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance with Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

  

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 (g)    TPN shall be responsible for the procurement of all API used in connection with the manufacture of the Product; provided, however that all quality assurance work shall be performed by Elite.  Vendor qualification for a new API source shall be at TPN’s cost.

 

2.2.          Product Orders .

 

   (a)  From time to time and subject to the other provisions of this Manufacturing Agreement, TPN shall place orders for Batch quantities of Product, specifying delivery dates.  Within three (3) days after receipt of TPN’s purchase order, ELITE shall by written notice (which can be by email) confirm to TPN the amount of the Product ordered and the delivery date(s).  Acceptance of product orders shall be contingent upon sufficient quantities of API being available in inventory.  Subject to the terms of this Manufacturing Agreement, ELITE shall meet specified delivery dates, provided the delivery dates specified in any such orders shall not be less than ninety (90) days from the date of such orders.

 

   (b)  ELITE shall use commercially reasonable efforts to accommodate a TPN request for delivery of the Product sooner than as otherwise is required under this Manufacturing Agreement;  and, if TPN’s business conditions necessitate reduction of Product amount ordered or delay in purchase order delivery dates, then ELITE shall use commercially reasonable efforts to implement such requested changes, provided that, if such changes cause ELITE to incur additional expenses, ELITE shall specify such additional expenses in writing and provide such substantiating documentation reasonably requested by TPN, and ELITE shall make such changes upon TPN’s written prior approval of the additional costs.  TPN shall pay such additional expenses as and when incurred.

 

2.3.          Acceptance.  ELITE shall ensure that the Product ordered by TPN in accordance with this Manufacturing Agreement is shipped in accordance with the delivery dates specified in TPN's purchase order received by ELITE, and ELITE shall notify TPN promptly of any anticipated delay

 

2.4.          Forecasts and Production Planning.

 

   (a)  Within fifteen days (15) business days of the Effective Date, TPN will provide ELITE with a written forecast of its requirements for the Product for the next twelve (12) months (a “Forecast”).

 

   (b)  It is agreed by the Parties that the first three months of the twelve (12) month forecast are binding on TPN (“Firm Period”).  It is understood that such Forecasts for the remaining nine (9) months are intended to be good faith estimates only, and shall not be binding upon TPN subject to Section 7.3(a)(ii).

 

   (c)  If this Manufacturing Agreement is renewed under Section 7.1, then during each successive year on or about the fifteenth day after renewal, TPN shall provide ELITE with a twelve (12) month forecast of the quantity of Product required by TPN, by month, for the following twelve (12) months each, a  Forecast.

 

   (d)  To the extent that Product orders specified for shipment in any quarter exceed the most recent TPN Forecast for such quarter by more than twenty percent (20%) (any excess of twenty percent (20%) or less shall, for this purpose, be deemed not to exceed forecast), ELITE shall use its commercially reasonable efforts to fulfill any such excess contained in TPN's Product orders, but ELITE shall not be liable to TPN for any inability, despite its reasonable efforts, to fill orders in excess of such forecast.

 

{***} Confidential portions of this exhibit have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance with Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

  

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2.5.          Delivery.

 

   (a)  All Products shall be delivered FOB, Elite’s or Epic Pharma’s loading dock unless otherwise mutually agreed to in writing by the Parties.  Risk of loss or of damage to the Product shall remain with ELITE until Product is loaded onto the carrier's vehicle in the United States at which time risk of loss or damage shall transfer to TPN.   ELITE shall use a shipper designated by TPN. Product shall be transported in accordance with the Product Specifications and other applicable Laws.

 

   (b)  To accommodate production variances, a Batch quantity Product order shall be considered filled by Elite if the amount shipped is at least 90% of the quantity specified for a Batch in Exhibit A.

 

(c) ELITE shall deliver the Product to TPN with at least eighteen (18) months of remaining shelf life at the shipment date unless TPN requests for a delay in shipment set forth in Section 2.2(b).

 

2.7.          Delays.    During the Term of this Manufacturing Agreement, if ELITE is not able to timely meet Product orders submitted by TPN pursuant to Section 2.2, ELITE shall promptly notify TPN of the reason for the delay and the date delivery of Product is expected to occur If shipment is delayed more than 5 business days beyond the date of delivery for reasons other than API supply (including DEA quota issues), then ELITE shall be responsible for any and all customer bill back penalty actually incurred and documented by TPN to be paid by ELITE within fifteen (15) days from receipt of such invoice.

 

2.8           Failure to Supply. In the event that at any time ELITE foresees that it will be unable to supply to TPN in whole or in part an ordered or forecasted quantity of the Product by the delivery date for any reason, including Section 9.1 (Force Majeure) hereof, ELITE shall notify TPN of such inability as soon as possible, the reasons therefor and the date such inability is expected to end, the quantities of Product available during such period and the proposed amount of resources allocated to TPN in the event such inability is caused by a shortage resources required for the manufacture of the Product.  Once the shortage is resolved, then TPN shall be allocated manufacturing resources based on prorated 12 month average from TPN’s Forecast.

 

2.9           TPN shall be entitled to reject any portion of any shipment of Product that is damaged or deviates materially from the Specifications, the Quality Agreement, cGMP or other Laws without invalidating any remainder of such shipment.  TPN shall inspect the Product manufactured by ELITE upon receipt thereof and shall give ELITE written notice (a “Deficiency Notice”) of all claims for Product that deviate materially from the Specifications, the Quality Agreement, cGMP or other Laws within thirty (30) days after TPN’ receipt thereof.  Should TPN fail to provide ELITE with the Deficiency Notice within the applicable 30-day period, then the delivery shall be deemed to have been accepted by TPN on the 30th day after delivery.  Notwithstanding the foregoing, if Product is damaged or deviates materially from the Specifications, the Quality Agreement, cGMP or other Laws due to defects not readily discoverable using commercially reasonable efforts to discover such defects within thirty (30) days after TPN’ receipt thereof (such defects, “Latent Defects”), TPN (or its nominee) shall give ELITE a Deficiency Notice of such Latent Defect which shall not be more than fifteen (15) days after TPN’s discovery thereof.

 

{***} Confidential portions of this exhibit have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance with Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

  

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ARTICLE 3

 

PRICING AND PAYMENT

 

3.1.          Price.  Subject to the remainder of this Article 3, the price to be paid by TPN for Product from ELITE shall be as set forth on Exhibit A.

 

3.2.          Price Adjustment.  If this Manufacturing Agreement shall be renewed and continue in place more than three (3) years from the Effective Date, then ELITE may adjust the Product price for increases in manufacturing costs determined according to GAAP.  Any price increase shall not exceed the increase in the United States Producers' Price Index, Pharmaceuticals Preparations, NAICS 325412, during the period since the last increase.

 

3.3.          Invoicing and Payment.  Payment terms by TPN for Product supplied by ELITE hereunder meeting Product Specifications shall be net 30 days by check or wire transfer, and shall be made without set-off and free and clear of, and without any deduction or withholding for or on account of any taxes, duties, levies, fees or charges, except as otherwise permitted under this Manufacturing Agreement.  Any balances overdue by 60 days shall be charged at the rate of 1% per month.  Product shall be invoiced no sooner than the date of shipment by ELITE.  If TPN disputes any invoice, TPN shall notify ELITE that it disputes the accuracy of such invoice specifying in particularity such inaccuracy.  TPN and ELITE shall make good faith efforts to resolve any disputes within fifteen (15) days thereafter and subject to Section 7.2 a(iii).  Any amounts that are disputed shall be due upon the resolution of such dispute.

 

ARTICLE 4

 

QUALITY AND REGULATORY MATTERS

 

In conjunction with the execution of this Manufacturing Agreement, the Parties shall execute a Quality Agreement in the form of Exhibit C attached hereto.

 

ARTICLE 5

 

WARRANTIES

 

5.1.          Compliance with cGMP.  ELITE warrants that any Product supplied by it hereunder shall be manufactured in accordance with cGMP.

 

5.2.          Conformity with Specifications. ELITE warrants that, at the time of shipment any Product supplied by it hereunder shall meet the Product Specifications except for any failure to meet Product Specifications arising from the handling, packaging or other act or omission of TPN or subsequent entity handling the Product.

 

5.3.          ELITE Representations. ELITE hereby represents and warrants to TPN that (a) it has obtained all necessary licenses, authorizations and approvals required by applicable Law, including those required by the FDA, DEA or any other applicable regulatory agency to enter into this Manufacturing Agreement and perform its obligations hereunder; (b) the execution, delivery and performance of this Manufacturing Agreement by ELITE does not conflict with or constitute a material breach of any order, judgment, agreement, or instrument to which it is a party; (c) the execution, delivery and performance of this Manufacturing Agreement by ELITE does not require the consent of any person;  (d) none of its officers or directors has ever been debarred or convicted of a felony under the laws of the United States for conduct relating to the development or approval of a drug product or relating to the marketing or sale of a drug product.

 

{***} Confidential portions of this exhibit have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance with Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

  

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5.4.          Certificate of Analysis and Release Certificate.  ELITE warrants that the Certificate of Analysis, Release Certificate and all other records and documents created by ELITE and provided to TPN will be true and correct.

 

5.5.          Nonconformance and Procedures to Address.

 

   (a)  Nonconformance. If TPN discovers any material nonconformance (“Nonconformance”) of Product under this Manufacturing Agreement, TPN shall give prompt written notice to ELITE specifying the Nonconformance.

 

   (b)  Procedure for Nonconformance.  Upon notifying ELITE of any Nonconformance of Product TPN shall afford ELITE a reasonable opportunity to inspect the Product in question and make an appropriate adjustment or replacement.  The Parties shall submit any dispute regarding quality of the Nonconformance of Product to Consumer Product Testing Co., Inc. or Gibraltar Laboratories, Inc., the determination of which shall be binding on the Parties and the costs of which shall be borne by the Party against whom such determination is rendered.  If such laboratory confirms a Nonconformance of the Product in question (or any part of it) at the time of delivery to the carrier, or if the Parties agree that there is a Nonconformance, then, in addition to other remedies that may be available, ELITE shall promptly refund or provide a credit for any money paid by TPN (including shipping costs) with respect to such Nonconforming Product. ELITE may, at its sole option, either direct TPN to return nonconforming Product to ELITE or have it destroyed by TPN, and certify such destruction to ELITE, all at ELITE’s expense.

 

5.6.           TPN Representations. TPN hereby represents and warrants to ELITE that (a) it has obtained all necessary licenses, authorizations and approvals required by applicable Law, including those required by the FDA, DEA or any other applicable regulatory agency to enter into this Manufacturing Agreement and perform its obligations hereunder; (b) the execution, delivery and performance of this Manufacturing Agreement by TPN does not conflict with or constitute a material breach of any order, judgment, agreement, or instrument to which it is a party; (c) the execution, delivery and performance of this Manufacturing Agreement by TPN does not require the consent of any person;  (d) none of its officers or directors has ever been debarred or convicted of a felony under the laws of the United States for conduct relating to the development or approval of a drug product or relating to the marketing or sale of a drug product.

 

ARTICLE 6

 

INDEMNIFICATION AND INSURANCE

 

6.1.          ELITE Indemnity.  Subject to Sections 6.2 and 6.4, ELITE shall indemnify and hold harmless TPN and its Affiliates against all third party claims, actions, costs, expenses, including court costs and legal fees or other third party liabilities (" Third Party Liabilities ") whatsoever in respect of:

 

   (a)  ELITE's and/or its Affiliates', subcontractors' or suppliers' failure to comply with the Product Specifications, cGMP or applicable Laws;

 

   (b)  the storage or handling of the Product after the Effective Date by ELITE or any third party, other than a third party acting on behalf of TPN or its Affiliates;

 

{***} Confidential portions of this exhibit have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance with Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

  

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   (c)  any material breach of any representation, warranty, covenant or similar promise made under this Manufacturing Agreement or arising out of this Manufacturing Agreement;

 

   (d)  any negligence or willful misconduct by ELITE and/or any of its employees; and

 

   (e)  for any Product that is recalled or withdrawn from the market by reason of ELITE’s material breach of any warranty or other covenant under this Manufacturing Agreement, TPN will be entitled to reimbursement of any and all documented costs associated with a recall or withdrawal, including the cost of the Product, legal and regulatory consulting fees incurred and reasonable costs associated with compliance with the recall or withdrawal (including penalties).  If it is determined that the recall or withdrawal should extend to the Product packaged into unit dose or distributed by TPN, then reimbursement to TPN will be extended to include all its expenses of compliance, including manufacturing and packaging costs and materials, return fees, distributor reimbursement, processing expense such as customer notification and returns, shipping, disposal and penalty costs associated with the Product of the recalled or withdrawn lots only.

 

6.2.          TPN Indemnity.  Subject to Sections 6.1 and 6.4, TPN shall indemnify and hold harmless ELITE and its Affiliates against all Third Party Liabilities whatsoever in respect of:

 

   (a)  the use, marketing, storage, distribution, handling or sale of the Product after the Effective Date by TPN or any third party, other than a third party acting on behalf of ELITE or its Affiliates;

 

   (b)  any product liability in connection with the Product caused by TPN or any third party acting on behalf of TPN or its Affiliates;

 

   (c)  any negligent or wrongful act by TPN and any material breach by TPN of any representation or warranty, covenant or similar promise made under this Manufacturing Agreement or arising out of this Manufacturing Agreement.

 

6.3.          Procedures for Indemnification.  In the event that a Party (the " Indemnified Party ") is seeking indemnification under Sections 6.1 or 6.2, the Indemnified Party shall inform the other Party (the " Indemnifying Party ") of a claim as soon as reasonably practicable after the Indemnified Party receives notice of the claim, shall permit the Indemnifying Party to assume direction and control of the defense of the claim, and shall cooperate as requested by the Indemnifying Party (at the expense of the Indemnifying Party) in the defense of the claim; provided, however, if the defendants in any such action include both the Indemnified Party and the Indemnifying Party and the Indemnified Party shall have reasonably concluded that a conflict may arise between the positions of the Indemnifying Party and the Indemnified Party in conducting the defense of any such action or that there may be legal defenses available to it that are different from or additional to those available to the Indemnifying Party, the Indemnified Party shall have the right to select separate counsel to assume such legal defenses and to otherwise participate in the defense of such action or on behalf of the Indemnified Party.  No Indemnifying Party shall, without the prior written consent of the Indemnified Party, settle or compromise or consent to the entry of judgment with respect to any pending or threatened action or claim whatsoever, in respect of which indemnification could be sought under Sections 6.1 or 6.2 (whether or not the Indemnified Party is an actual or potential party thereto), unless such settlement, compromise or consent (i) includes an unconditional release of the Indemnified Party in form and substance reasonably satisfactory to the Indemnified Party from all liability arising out of such action or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of the Indemnified Party.  The Indemnifying Party shall not be liable for settlement of any pending or threatened action or any claim whatsoever that is effected without its written consent (which consent shall not be unreasonably withheld or delayed).

 

{***} Confidential portions of this exhibit have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance with Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

  

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6.4.          Mitigation.  In the event of any occurrence which may result in either Party becoming liable under Section 6.1 or Section 6.2, each Party shall use its best efforts to take such actions as may be reasonably necessary to mitigate the damages payable by the other Party under Section 6.1 or Section 6.2, as the case may be.

 

6.5.          Limitation of Liability.  NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED HEREIN, IN NO EVENT SHALL ANY PARTY, ITS DIRECTORS, OFFICERS, EMPLOYEES, AGENTS OR AFFILIATES BE LIABLE TO THE OTHER PARTIES FOR ANY CLAIMS RELATED TO LOST PROFITS AND GOODWILL, WHETHER BASED UPON A CLAIM OR ACTION OF CONTRACT, WARRANTY, NEGLIGENCE, STRICT LIABILITY OR OTHER TORT, OR OTHERWISE, ARISING OUT OF THIS MANUFACTURING AGREEMENT.

 

6.6.          Insurance.  Each Party shall maintain commercial general liability insurance through the term of this Manufacturing Agreement upon launch of the Product, which insurance shall afford limits of not less than $5,000,000 for each occurrence and $5,000,000 in the aggregate per annum for personal injury or property damage liability.  Furthermore, each Party shall maintain product liability insurance, through the term of this Manufacturing Agreement upon launch of the Product and for a period of three (3) years thereafter, which insurance shall afford limits of not less than $5,000,000 per claim and in the aggregate per annum with respect to product and completed operations liability.  This insurance shall be written to cover claims incurred, discovered, manifested, or made during or after the expiration of this Manufacturing Agreement.  Each Party shall provide the other with a certificate of insurance evidencing the above and showing the name of the issuing company, the policy number, the effective date, the expiration date and the limits of liability.  The insurance certificate shall further provide for a minimum of thirty (30) days' written notice to the insured of a cancellation of, or material change in, the insurance.  If a Party is unable to maintain the insurance policies required under this Manufacturing Agreement through no fault on the part of such Party, then such Party shall forthwith notify the other Party in writing and the Parties shall in good faith negotiate appropriate amendments to the insurance provision of this Manufacturing Agreement in order to provide adequate assurances.

 

ARTICLE 7

 

TERM AND TERMINATION

 

7.1.          Term.  The initial term (the “Initial Term”) of this Agreement shall commence on the Effective Date and shall continue for one year from the first delivery date; thereafter, the term of this Agreement shall be extended for successive two (2) year terms (each a “Renewal Term”) upon the mutual written agreement of the Parties entered into at least six (6) months prior to the expiration of the Initial Term or a Renewal Term.

 

7.2          Termination.

 

(a)           Either Party shall be entitled to terminate this Agreement by notice to the other Party if:

 

(i)           Material Breach.  By either Party, in the event that the other Party commits a material breach of this Agreement and such breach shall not have been cured within forty-five (45) days after the giving of written notice of such material breach, unless (a) the specific provision to which such breach relates expressly provides for a different period, or (b) the Parties mutually agree in writing to an extension of such forty-five (45)-day period (the “Cure Period”).  Unless such breach is cured during the Cure Period, such termination shall be effective immediately upon the expiration of the Cure Period without any further action or notice by the non-breaching Party;

 

{***} Confidential portions of this exhibit have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance with Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

  

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(ii)           Failure to Make Payment.  By ELITE, in the event that TPN breaches any of its obligations to make payment to ELITE under this Agreement, and such breach is not cured within forty-five (45) days of the giving by ELITE of written notice of such breach (the “Payment Cure Period”).  Unless such breach is cured during the Payment Cure Period, such termination shall be effective immediately upon the expiration of the Payment Cure Period without any further action or notice by ELITE.    Notwithstanding the foregoing, the Payment Cure Period shall be tolled pending a good faith effort to resolve any bona fide dispute between the Parties as to whether such payment is due, subject to the following terms and conditions:

 

(1)           TPN (x) gives written notice to ELITE during the Payment Cure Period of the existence of a bona fide dispute regarding such payment and (y) pays ELITE the undisputed portion of such amount; and

 

(2)           the Parties shall use good faith efforts to resolve such dispute as soon as practicable (such Payment Cure Period to resume running if such dispute is not resolved prior to the expiration of fifteen (15)-days after the commencement of a bona fide dispute).

 

 (iii)                      Insolvency Proceeding.

 

(1)           By either Party on written notice to the other Party, which termination shall have an immediate effect, if such other Party at any time (w) commences a voluntary case or other proceeding seeking liquidation, reorganization or other relief with respect to itself or its debts under any bankruptcy, insolvency or other similar Law or seeking the appointment of a trustee, receiver, liquidator, custodian or similar official of it or of any substantial part of its property, (x) consents to any such relief or to the appointment of or taking possession by any such official in an involuntary case or other proceeding commenced against it, (y) makes a general assignment for the benefit of creditors or (z) takes any corporate action to authorize any of the foregoing;

 

(2)           By either Party on written notice to the other Party, which termination shall have an immediate effect, if such other at any time has an involuntary case or other proceeding commenced against it seeking liquidation, reorganization or other relief with respect to it or its debts under any bankruptcy, insolvency or other similar Law now or hereafter in effect or seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official of it or any substantial part of its property and such involuntary case or other proceeding remains undismissed and unstayed for a period of ninety (90) days or an order for relief is entered against such Party under Applicable Laws;

 

(3)           By either Party giving thirty (30) days written notice to the other Party, which termination shall be effective on the expiration of such notice, if either Party at any time is insolvent or is generally unable to pay its debts as they become due. TPN acknowledges that it has received a copy of Elite’s current financial statement and agrees that the aforesaid provision providing for termination by notice to an insolvent Party is without force unless Elite’s financial condition as reflected in its financial statements is subject to subsequent material negative changes.

 

(b)          In addition to the rights of termination provided elsewhere in this Agreement, TPN may terminate this Agreement:

 

{***} Confidential portions of this exhibit have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance with Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

  

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(i)   if any applicable regulatory authority, state or local laws, ordinances guidelines or regulations, present or future, including any conditions, amendments or variations state that ELITE’s Facility is not suitable or ceases to be suitable for the manufacture of the Product or suspends, terminates or refuses to grant any license, permit, authorization or approval required to manufacture the Product; or

 

(ii)         if the Parties jointly determine that it is not economically feasible to  market the  Product due to changes in the market for the Product, including technical, commercial, regulatory, environmental, health or safety reason, costs of obtaining the API, the introduction of competitive products and changes in the reimbursement policies of third party payors.

 

(c)           In the event that this Manufacturing Agreement is terminated for any reason other than a material breach by TPN or termination under Section 7.1, Elite shall provide TPN with at least six (6) months prior written notice of such termination.

 

 7.3         Consequences of Termination

 

(a)           On termination or expiry of the Agreement for any reason ELITE shall:

 

(i)           ensure that any copies of TPN’s confidential information, or any information of a technical nature relating to the Product or its manufacture and supplied by TPN to ELITE are promptly returned to TPN or, at TPN’s option, destroyed;

 

(ii)          promptly invoice and deliver to TPN an amount equal to the cost of any pharmaceutical or packaging materials (that cannot be otherwise used by ELITE or deployed to other customers of ELITE) and Product, in ELITE’s possession, provided that, ELITE can prove by documentary evidence that such pharmaceutical or packaging materials and Product:

 

(1)           were purchased in reliance on TPN’s’ forecast for the Firm Period; and

 

(2)           are in compliance with all relevant Product Specifications and otherwise fit for commercial use.

 

(b)          The termination or expiry of this Agreement shall not release either of the Parties from any liability which at the time of termination or expiry has already accrued to the other Party, nor affect in any way the survival of any other right, duty or obligation of the Parties which is expressly stated elsewhere in this Agreement to survive such termination or expiry.

 

ARTICLE 8

 

CONFIDENTIALITY

 

8.1.          The information exchanged between ELITE and TPN pursuant to this Manufacturing Agreement is expressly subject to the Mutual Confidential Agreement entered into by the Parties and dated November 10, 2006 (the “Confidentiality Agreement”) and whose term is hereby made coterminous with this Manufacturing Agreement.

 

{***} Confidential portions of this exhibit have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance with Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

  

11

  

 

ARTICLE 9

 

COMPLAINTS AND RECALLS

 

9.1           Each Party shall notify the other Party immediately by telephone and confirm in writing within twenty four (24) hours upon becoming aware of any problem relating to the Product, including where:

 

	
  

	
(a)

	
the Product does not comply with the Product Specifications, cGMP or any matter which may affect the safety or efficacy of the Product arising during its manufacture;

 

	
  

	
(b)

	
the Product is affected by bacteriological or other contamination;

 

	
  

	
(c)

	
the Product is affected by significant chemical, physical or other change or deterioration or stability failures; or

 

	
  

	
(d)

	
there are any other complaints, adverse reaction reports, safety issues or toxicity issues relating to Product of which it becomes aware.

 

9.2           If any of the circumstances described in Section 6.1 arise, and upon written notification from TPN, ELITE shall promptly and at its own expense conduct all such internal investigations as may be reasonably necessary to determine the validity of such complaint as they relate to manufacture of the Product.  ELITE shall provide an initial  report of the findings of such investigations in writing to TPN within five (5) days from the first notification acknowledging that time is of the essence in responding to the FDA and DEA within required timeframes.  ELITE shall promptly complete a final report upon receipt of all pertinent data.  TPN shall be responsible to respond to the complainant and provide a written copy of such response to ELITE.  ELITE shall carry out any corrective actions that TPN may reasonably require in order to avoid the repetition of the complaint.

 

9.3           TPN shall be responsible for initiating a Product recall or withdrawal and the recall or withdrawal strategy shall be determined and developed by TPN.  In the event that the need for the recall or withdrawal is caused by any failure on the part of ELITE or its Affiliates to comply with any material obligation under this Manufacturing Agreement or the Quality Agreement, or through the negligence of ELITE or Affiliates, or the failure of the Product as manufactured hereunder to meet the Product Specifications (Out Of Specification or “OOS”) due to the fault of ELITE, all documented out-of-pocket costs reasonably incurred by TPN in relation to such recall shall be borne by ELITE.

 

ARTICLE 10

 

MISCELLANEOUS

 

10.1.        Force Majeure.  If any Party is prevented from complying, either totally or in part, with any of the terms or provisions of this Manufacturing Agreement, by reason of force majeure, including, but not limited to fire, flood, earthquake, explosion, storm, strike, lockout or other labor trouble, riot, war, rebellion, accidents, acts of God and/or any other cause or externally induced casualty beyond its reasonable control, whether similar to the foregoing matters or not, then, upon written notice by the Party liable to perform to the other Party, the requirements of this Manufacturing Agreement or such of its provisions as may be affected, and to the extent so affected, shall be suspended during the period of such disability; provided that the Party asserting force majeure shall bear the burden of establishing the existence of such force majeure by clear and convincing evidence; and provided further, that the Party prevented from complying shall use its best efforts to remove such disability within thirty (30) days, and shall continue performance with the utmost dispatch whenever such causes are removed, and shall notify the other Party of the force majeure event not more than five (5) working days from the time of the event.  When such circumstances arise, the Parties shall discuss what, if any, modification of the terms of this Manufacturing Agreement may be required in order to arrive at an equitable solution.

 

{***} Confidential portions of this exhibit have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance with Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

  

12

  

 

10.2         Trademarks.  Each Party agrees and acknowledges that it shall not acquire by virtue of this Manufacturing Agreement any interest (other than such non-exclusive license as may be necessary for the Party to perform its duties hereunder) in or to any trademarks or trade names of the other Party; provided, however, that TPN shall have the right to identify ELITE as the manufacturer of the Product.  The  Product shall bear a label that incorporates the following statement:  “Manufactured by Elite Laboratories, Inc., 165 Ludlow Avenue, Northvale, NJ  07647”.

 

10.3.        Notices.  Except as otherwise specifically provided, any notice or other documents to be given under this Manufacturing Agreement shall be in writing and shall be deemed to have been duly given if sent by registered mail, nationally recognized overnight delivery service or facsimile transmission to a Party or delivered in person to a Party at the address or facsimile number set out below for such Party or such other address as the Party may from time to time designate by written notice to the other:

 

If to ELITE:  Elite Pharmaceuticals, Inc.

   165 Ludlow Avenue

   Northvale, NJ 07647

   Attention:  President

   Facsimile: 201-750-2755

with a copy to:  Ruffa & Ruffa, P.C.

   110 East 59th Street

   New York, New York  10022

 

   Attn: William Ruffa

   Facsimile: 877-329-7833

If to TPN:  ThePharmaNetwork, LLC   180 Summit Avenue, Suite 200Montvale, NJ 07645

   Attention:  Jonathan B. Rome/President  & CEO

   Facsimile: 201-476-1987

with a copy to:

   ThePharmaNetwork, LLC

    180 Summit Avenue, Suite 200

     Montvale, NJ 07645

     Attention:  Allen Bagatsing, Esq./Chief Legal Counsel

   Facsimile: 201-476-1987

 

Any such notice provided pursuant to this Section 10.3 shall be deemed to have been received by the addressee five business days following the date of dispatch of the notice or other document by mail or, where the notice or other document is sent by overnight delivery service, by hand or is given by facsimile, simultaneously with the transmission or delivery.  To prove the giving of a notice or other document it shall be sufficient to show that it was dispatched.   Either Party may change its address at which notice is to be received by written notice provided pursuant to this Section 10.3.

 

{***} Confidential portions of this exhibit have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance with Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

  

13

  

 

10.4.        Waiver and Amendment.  A waiver by either Party of any term or condition of this Manufacturing Agreement in any one instance shall not be deemed or construed to be a waiver of such term or condition for any other time.  All rights, remedies, undertakings, obligations and agreements contained in this Manufacturing Agreement shall be cumulative and none of them shall be a limitation of any other remedy, right, undertaking, obligation or agreement of either Party.  This Manufacturing Agreement may not be amended or modified, except in a writing signed by an officer of each Party hereto.

 

10.5.        Severability.  If any one or more of the provisions of this Manufacturing Agreement shall be held to be invalid, illegal or unenforceable in any respect, the validity, legality or enforceability of the remaining provisions hereof shall not in any way be affected or impaired thereby.  In the event any provisions shall be held invalid, illegal or unenforceable, the Parties shall use their best efforts to substitute a valid, legal and enforceable provision which, insofar as practical, implements the purposes hereof.

 

10.6.        Headings.  The headings contained in this Manufacturing Agreement are included herein for reference and convenience and shall not affect the meaning of the provisions of this Manufacturing Agreement.

 

10.7.        Assignment and Successors.  This Manufacturing Agreement may not be assigned by either Party, except by operation of law, to any third party without the prior written consent of the other Party, which consent shall not be unreasonably withheld, delayed or conditioned.  In the event of any such assignment, the assignee shall expressly assume in writing the performance of all the terms and conditions of this Manufacturing Agreement and all of the obligations to be performed by the assignor.  Any assignment not in accordance with this Manufacturing Agreement shall be void. 10.8.         Governing Law; Dispute Resolution; Venue.  This Manufacturing Agreement shall be construed, and the rights of the Parties determined, in accordance with the laws of the State of New Jersey without regard to conflict of law or choice of law rules. Any controversy or claim pursuant to this Manufacturing Agreement or the breach thereof shall be referred for decision forthwith to a senior executive of each Party not directly involved in the dispute.  If no agreement is reached within thirty (30) days of the request by one Party to the other to refer the same to such senior executive, then such controversy or claim shall be settled by arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association; such arbitration to be held in Bergen County, New Jersey on an expedited basis.  Judgment upon the award rendered by the Arbitrator(s) may be entered in any court having jurisdiction thereof.  Notwithstanding anything to the contrary contained in this Manufacturing Agreement, each Party shall have the right to institute a legal action in a court of proper jurisdiction located in Hackensack, New Jersey for injunctive relief or a decree of specific performance in the event such relief is not available in the proceedings described above.

 

10.9.        Independent Parties.  This Manufacturing Agreement shall not be deemed to create any partnership, joint venture, amalgamation or agency relationship between the Parties.  Each Party shall act hereunder as an independent contractor.  Neither Party shall at any time enter into, incur, or hold itself out to third parties as having authority to enter into or incur, on behalf of the other Party, any commitment, expense, or liability whatsoever.

 

{***} Confidential portions of this exhibit have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance with Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

  

14

  

 

10.10.      Survival of Provisions.  All accrued rights and obligations of the Parties, expressly including the provisions of Articles 3.4, 4, 6, 7, 8 and 10, shall survive the termination for any reason of this Manufacturing Agreement.

 

10.11.      Publicity.  Neither Party shall make any public announcement concerning, or otherwise publicly disclose, any information with respect to the transactions contemplated by this Manufacturing Agreement or any of the terms and conditions hereof without the prior written consent of the other Party hereto.  Notwithstanding the foregoing, either Party may make any public disclosure concerning the transactions contemplated hereby that in the opinion of such Party's counsel may be required by law or the rules of any stock exchange on which such Party's or its Affiliates' securities trade; provided, however, the Party making such disclosure shall provide the non-disclosing Party with a copy of the intended disclosure reasonably, and to the extent practicable, prior to public dissemination, and the Parties hereto shall coordinate with one another regarding the timing, form and content of such disclosure.

 

10.12.      Entire Agreement.  This Manufacturing Agreement, together with the Quality Agreement, constitutes the full, complete, final and integrated agreement between the Parties hereto relating to the subject matter hereof and supersedes all previous written or oral negotiations, commitments, agreements, transactions or understandings with respect to the subject matter hereof.  Any modification, amendment or supplement to this Manufacturing Agreement must be in writing and signed by authorized representatives of both Parties.  In case of a conflict between the agreements, this Manufacturing Agreement shall prevail.

 

10.13.      No Third Party Beneficiaries.   No person or entity not a party to this Manufacturing Agreement, including any employee of any Party to this Manufacturing Agreement, shall have or acquire any rights by reason of this Manufacturing Agreement, nor shall either Party have any obligations or liabilities to such other person or entity by reason of this Manufacturing Agreement.

 

10.14.      Remedies Cumulative.  Except as otherwise provided herein, any and all remedies herein expressly conferred upon a Party shall be deemed cumulative with and not exclusive of any other remedy conferred hereby, or by law or equity upon such Party, and the exercise by a Party of any one remedy shall not preclude the exercise of any other remedy.  If any action at law or in equity is necessary to enforce or interpret the terms of this Manufacturing Agreement, the prevailing Party shall be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which such Party may be entitled.

 

10.15.      Further Assurances.  Each Party shall execute and deliver such additional instruments and other documents and use commercially reasonable efforts to take or cause to be taken, all actions and to do, or cause to be done, all things necessary under applicable law to consummate the transactions contemplated hereby.

 

10.16.      Counterparts; Facsimile Signatures.  This Manufacturing Agreement may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute a single agreement.  This Manufacturing Agreement may be executed by facsimile signatures, which signatures shall have the same force and effect as original signatures.

 

10.17.      Drafting.   The Parties have participated jointly in the negotiation and drafting of this Manufacturing Agreement.  In the event an ambiguity or question of intent or interpretation arises, this Manufacturing Agreement shall be construed as if drafted jointly by the Parties and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any of the provisions of this Manufacturing Agreement.

 

{***} Confidential portions of this exhibit have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance with Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

  

15

  

 

[This section is intentionally left blank; signature page follows]

 

{***} Confidential portions of this exhibit have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance with Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

  

16

  

 

 

IN WITNESS WHEREOF, the Parties hereto have caused this Manufacturing Agreement to be executed, as of the date first above written, by their duly authorized representatives.

 

	
ELITE PHARMACEUTICALS, INC.

	  	
THEPHARMANETWORK, LLC

	  	  	  
	
By:

	  	
By:

	
Name: Chris Dick

	  	
Name:Jonathan B. Rome

	
Title:  President

	  	
Title:  President & CEO

 

{***} Confidential portions of this exhibit have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance with Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

  

17

  

 

EXHIBIT A

 

Product and Purchase Price and Minimum Annual Volume Requirements

 

	
Product

	 	
Mg

	 	
 Bottle

Size 

	 	
Cost Per Bottle

exclusive of API

FOB Elite

	 	
Minimum

Annual

Volume

	
 

Methadone

Hydrochloride 10 mg

Tablets, ANDA #090635

	 	
 

 

 

10mg

	 	
 

 

 

 100's

	 	
 

Manufacturing

Cost  ${***} (see

notes below)

	 	
{***}

Bottles

 

NOTE:    The purchase price includes all costs except API cost which is the obligation of TPN.

ELITE shall produce Product in batch sizes between {***} bottles to {***} bottles per batch.  Elite will begin with the smaller batch sizes and increase batch size as necessary.  Orders shall be done based on a batch size of {***} bottles.

ELITE may also from time to time subcontract to Epic Pharma, LLC for bottling of batches.

 

{***} Confidential portions of this exhibit have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance with Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

  

18

  

 

EXHIBIT B

 

Product and Packaging Specifications

 

The written specifications for the Product will be pursuant to the terms of the ANDA # 090635 duly approved by the FDA, and delivered to ELITE thereafter as Exhibit B of this Manufacturing Agreement.

 

{***} Confidential portions of this exhibit have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance with Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

  

19

  

 

EXHIBIT C

 

QUALITY AGREEMENT

 

Between

 

ThePharmaNetwork, LLC.

 

And

 

ELITE Pharmaceuticals, Inc.

 

{***} Confidential portions of this exhibit have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance with Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

 

  

20Exhibit 10.1

This Assignment Agreement ("Agreement") is made and entered into on the 12th day
of April 2011 ("Effective Date")

BETWEEN:

     GROWERS SYNERGY PTE LTD, (the "ASSIGNOR"), Company No 200920853Z, a limited
     liability company incorporated in Singapore whose registered office is at
     14 Chin Bee Road, Singapore 619824; and

     STEVIA VENTURES INTERNATIONAL LTD. (the "ASSIGNEE"), Company No 010338747,
     a limited liability company incorporated in the British Virgin Islands
     having its registered office at Walkers Chambers, 171 Main Street, Road
     Town, Tortola VG1110, British Virgin Islands.

WHEREAS the Assignor has legally assumed a supply agreement with PureCircle
dated the 20th day of February 2009 to supply dry stevia leaf (the "Contract")
attached as EXHIBIT A by an assignment agreement dated the 30th day of November
2009 attached as EXHIBIT B; and

WHEREAS the Contract is in good standing; and

WHEREAS the Contract may be assigned per clause 10.1 of the Contract and no
consent shall be required for an assignment by either Party to its Affiliate so
long as the assignment does not result in a change to the conditions of the
Contract in any way.

WHEREAS the Parties meet the definition of Affiliate as defined in the Contract
and Assignor desires to assign the Contract to Assignee and Assignee desires to
accept the assignment from Assignor without altering the conditions of the
Contract in any way.

NOW, THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS:

1.   The Assignor shall assign the Contract as of the Effective Date and
     Assignee shall accept the assignment as of the Effective Date.

2.   Assignor certifies that
     a. the contract is in good standing and is legally assignable;
     b.   the Assignor meets all requirements to legally assign the contract;
     c.   the Assignee is an Affiliate of Assignor;
     d.   there are no liens or other liabilities attached to or associated with
          the Contract;
     e.   the Contract attached as EXHIBIT A constitutes the entire
          understanding and agreement of the Parties with respect to the subject
          matter contained therein and supersedes all prior and contemporaneous
          agreements and understandings.

3. Assignee certifies that
     a.   the Assignee meets all requirements to legally accept assignment of
          the contract;
     b.   the Assignee is an Affiliate of Assignor;
     c.   the Assignee accepts the Assignment without alteration to the
          Contract.

4.   This assignment Agreement shall be construed in accordance with the laws
     the Republic of Singapore which shall govern the validity of this
     Agreement, the construction of its terms, and the interpretation and
     enforcement of the rights and duties of the parties hereto, if either party
     files a legal action the against the other.
<PAGE>
IN WITNESS WHEREOF, each of the parties has executed this Agreement as of the
Effective Date set forth above.

ASSIGNOR:                                    ASSIGNEE:

GROWERS SYNERGY PTE LTD                      STEVIA VENTURES INTERNATIONAL LTD.

By: /s/ George S. Blankebaker Jr             By: /s/ George S. Blankebaker Jr
   ----------------------------------           --------------------------------
         Authorized Signature                          Authorized Signature

NAME:  George S Blankenbaker Jr              NAME:  George S Blankenbaker Jr
TITLE: Managing Director                     TITLE: President
<PAGE>
This Assignment Agreement ("Agreement") is made and entered into on the 30thday
of November 2009 ("Effective Date")

BETWEEN:

     WATERLAND HOLDINGS PTE LTD, (the "ASSIGNOR"), a limited liability company
     incorporated in Singapore whose registered office is at 48 Toh Guan Road
     East, #06-152 Enterprise Hub, Singapore 608586; and

     GROWERS SYNERGY PTE LTD, (the "ASSIGNEE"), a limited liability company
     incorporated in Singapore whose registered office is at 14 Chin Bee Road,
     Singapore 619824.

WHEREAS the Assignor has executed a supply agreement with PureCircle dated the
20th day February of 2009 to supply dry stevia leaf (the "Contract"); and

WHEREAS the Contract is in good standing; and

WHEREAS the Contract may be assigned per clause 10.1 of the Contract and no
consent shall be required for an assignment by either Party to its Affiliate so
long as the assignment does not result in a change to the conditions of the
Contract in any way.

WHEREAS the Parties meet the definition of Affiliate as defined in the Contract
and Assignor desires to assign the Contract to Assignee and Assignee desires to
accept the assignment from Assignor without altering the conditions of the
Contract in any way.

NOW, THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS:

1.   The Assignor shall assign the Contract as of the Effective Date and
     Assignee shall accept the assignment as of the Effective Date.

2.   Assignor certifies that
     a.   the contract is in good standing and is legally assignable;
     b.   the Assignor meets all requirements to legally assign the contract;
     c.   the Assignee is an Affiliate of Assignor;
     d.   there are no liens or other liabilities attached to or associated with
          the Contract;
     e.   the Contract attached as EXHIBIT A constitutes the entire
          understanding and agreement of the Parties with respect to the subject
          matter contained therein and supersedes all prior and contemporaneous
          agreements and understandings.

3.   Assignee certifies that
     a.   the Assignee meets all requirements to legally accept assignment of
          the contract;
     b.   the Assignee is an Affiliate of Assignor;
     c.   the Assignee accepts the Assignment without alteration to the
          Contract.

4.   This assignment Agreement shall be construed in accordance with the laws
     the Republic of Singapore which shall govern the validity of this
     Agreement, the construction of its terms, and the interpretation and
     enforcement of the rights and duties of the parties hereto, if either party
     files a legal action the against the other.
<PAGE>
IN WITNESS WHEREOF, each of the parties has executed this Agreement as of the
Effective Date set forth above.

ASSIGNOR:                                    ASSIGNEE:

WATERLAND HOLDINGS PTE LTD                   GROWERS SYNERGY PTE LTD

By: /s/ George S. Blankebaker Jr             By: /s/ George S. Blankebaker Jr
   ----------------------------------           --------------------------------
         Authorized Signature                          Authorized Signature

NAME:  George S Blankenbaker Jr              NAME:  George S Blankenbaker Jr
TITLE: Managing Director                     TITLE: President
<PAGE>
20th February 2009

SUPPLY AGREEMENT

between

WaterLand Holdings Pte Ltd

as Supplier

and

PureCircle Sdn Bhd

as Customer

relating to

Supply of Stevia Leaves

<PAGE>
THIS AGREEMENT is dated the 20th day February of 2009 and made BETWEEN:

(1)  WaterLand Holdings Pte Ltd, (the "Supplier"), a limited liability company
     incorporated in Singapore whose registered office is at 48 Toh Guan Road
     East, #06-152 Enterprise Hub, Singapore 608586; and

(2)  PureCircle Sdn Bhd, (the "Customer"), (Company No. 578803-K) a limited
     liability company incorporated in Malaysia whose Malaysian registered
     office is at 3A-12, Perdana The Place, No. 1 Jalan PJU 8/5G, Damansara
     Perdana, 47820 Petaling Jaya, Selangor Darul Ehsan, Malaysia.

WHEREAS:

(A)  The Supplier carries on the business of engaging in agriculture and related
     ancillary businesses and Supplier has competent techniques, capacity and
     qualifications for, and intends to engage and invest in the growing of
     Stevia. Supplier has represented that it has plans to conduct R&D and
     establish nurseries and test plots in the countries of Vietnam, Indonesia,
     and Thailand for the purpose of developing commercial scale propagations
     and plantations.

(B)  The Customer carries on the business of Stevia extract production and sale
     of Stevia extract products ("Business"), and based on representation by
     Supplier in recital (A) above is desirous to entrust Supplier to produce
     Products (as defined herein) and purchase the Products from the Supplier
     for that Business.

(C)  The Supplier is desirous to plant the Stevia Seedlings and supply the
     Products only to the Customer to the exclusion of other customers and the
     Customer is desirous to purchase the same, on the terms and conditions as
     set out in this Agreement.

NOW IT IS HEREBY AGREED AS FOLLOWS:

1.   INTERPRETATION

1.1  DEFINITIONS

In this Agreement, unless the context otherwise requires:

"Business Day" means a day, other than a Saturday or Sunday, on which banks are
open for ordinary banking business in Malaysia.

"Companies Act" means the Malaysian Companies Act 1965.

"Parties" means, collectively, the Supplier and the Customer, and the term
"Party" shall refer to either of them as the context may require.

"Products" means the products set out in Schedule 1.

"Reb A" means Rebaudioside A.
<PAGE>
"Specification" means the specification of the Products set out in Schedule 2 or
any other specification of the Products agreed in writing between the Supplier
and the Customer from time to time.

"Stevia Seedlings" means suitable stevia planting materials (ie cutting/roots).

"Year" means any reference to a "year" is to that year in accordance with the
Gregorian calendar.

"US$" means the United States dollar

In this Agreement where the context admits:

(A)  "subsidiary" and "holding company" shall have the same respective meanings
     as in the Companies Act and "Subsidiary" shall mean a subsidiary of the
     Company ;

(B)  references to, or to any provision of, any treaty, statute, directive,
     regulation, decision, order, instrument, by-law, or any other law of, or
     having effect in, any jurisdiction ("Laws") shall be construed also as
     references to all other Laws made under the Law referred to, and to all
     such Laws as for the time being amended, re-enacted (with or without
     amendment), consolidated or replaced or as their application is modified by
     other Laws from time to time;

(C)  references to clauses and schedules are references to the clauses of and
     schedules to this Agreement and references to this Agreement include the
     schedules and the Agreed Form documents;

(D)  references to the singular shall include the plural and vice versa and
     references to the masculine, the feminine and the neuter shall include each
     other such gender;

(E)  "person" includes any individual, partnership, body corporate, corporation
     sole or aggregate, state or agency of a state, and any unincorporated
     association or organisation, in each case whether or not having separate
     legal personality; and

(F)  "company" includes any body corporate.

1.2  Headings

The headings and sub-headings are inserted for convenience only and shall not
affect the construction of this Agreement.

1.3  Schedules

Each of the schedules shall have effect as if set out herein.

2.   Ordering AND SALE OF THE PRODUCTS

2.1  During the continuance of this Agreement, the Supplier shall sell and the
     Customer shall purchase all Products produced by the Supplier in any one
     Year, subject to the terms and conditions of this Agreement.

                                       2
<PAGE>
2.2  In addition to producing Products for Customer, the Supplier will also
     produce Stevia Seedlings for the purposes of producing the Products for
     Customer.

2.3  As long as Supplier meets at least 70% of the volumes as described in
     clause 3.5 from its Vietnamese production operations, then the Customer is
     obliged to only purchase product in Vietnam from Supplier. In the case that
     Supplier fails to meet 70% of the projected volumes in Vietnam, then
     Customer is at liberty to purchase the Products from any third parties in
     Vietnam.

2.4  Customer will also purchase Product from supplier, from Indonesia and/or
     Thailand, as well as Vietnam, up to a combined total volume of 15,000
     metric tons of dry leaf per annnum under the same conditions of price,
     shipping terms, and quality as defined in this agreement. Upon Waterland
     Holding's demonstrated production and quality results in those countries,
     Customer may elect to transition other current suppliers in Thailand and
     Indonesia to Supplier, and execute a similar mutually exclusive
     relationship in those countries at the appropriate time.

2.5  The Supplier shall sell the Products only to the Customer to the exclusion
     of other customers on the terms and conditions as set out in this
     Agreement. Customer is obliged to purchase all product produced, up to 130%
     of the volumes as described in clause 3.5. If customer produces volumes in
     excess of 130% of those described in clause 3.5, then customer shall have
     the right of first refusal to purchase said volumes. Customer shall, in
     good faith, endeavour to purchase such volumes, but is not obliged to do
     so. For all volumes for which Customer does not purchase, Supplier may sell
     to another party.

3.   SPECIFICATION AND QUANTITY OF THE PRODUCTS

3.1  All Products sold by the Supplier to the Customer pursuant to this
     Agreement shall conform in all respects to the Specification.

3.2  Subject to clause 8.3, the Supplier and the Customer shall review and agree
     on or before 30th September of each Year on any subsequent revisions to the
     Specification of the Products applicable for the forthcoming Year.

3.3  The Supplier will permit the Customer or the Customer's representative at
     all reasonable times to enter the Supplier's premises and growing sites for
     the purpose of inspecting the Products and Stevia Seedlings and the
     processing, packaging and storage operation (whether or not owned by the
     Supplier) relating to the Products and Stevia Seedlings, and will as
     reasonably requested by the Customer, supply without cost random samples of
     the Products and Stevia Seedlings for testing by the Customer or its
     representatives, to ensure that the growing conditions of the Stevia
     Seedlings and Products conform with the Customer's requirements and that
     the Products and Stevia Seedlings will meet with the Specifications.

3.4  The Supplier may consult with the Customer from time to time during the
     continuance of this Agreement in order to ensure that the Specification of
     the Products to be sold by the Supplier to the Customer is acceptable to
     the Customer. Any amendments to the Specification or to the growing
     conditions of the Products shall be agreed in writing by both Parties.

3.5  During the first two (2) Years, the Supplier shall supply the Customer with
     approximately 15,000 metric tonnes in 2009 and 15,000 metric tonnes in 2010
     of the Product and the Supplier shall provide the Customer with prior

                                       3
<PAGE>
     notice at any time during the first two (2) Years if it has reason to
     believe that it would be substantially over or under produced to fulfil the
     forecast volumes under this clause.

3.6  Subject to clause 8.1, the Supplier and the Customer shall review and on or
     before 30th September of each Year on the quantity of the Products to be
     supplied by the Supplier to the Customer in the forthcoming Year and the
     Supplier shall provide the Customer with prior written notice at any time
     during the year following the revision if it has reason to believe that it
     would be unable to fulfil its forecast volumes under this clause.

4.   MANUFACTURE AND DELIVERY OF THE PRODUCTS

4.1  Delivery of the Products shall be at terms CIF Guangzhou or Shenzen Port in
     China. The supplier shall deliver, at their costs, to the port of entry
     into China. The Customer shall, at their expense, import, clear and provide
     all activities to nationalize the product into China. The Supplier shall
     provide all necessary export documents, in advance, to facilitate the
     timely clearing of the product.

4.2  The Supplier shall ensure that the Products are thoroughly inspected and
     meet the Specifications prior to the delivery of the Products as described
     in clause 4.1.

4.3  The Supplier shall take all reasonable steps including BUT not limited to
     propagation activities to continue to improve the quality of the Products.

4.4  The Customer shall upon receiving Products at the Customer's warehouse
     inspect the Products within fourteen (14) Business Days of such delivery
     and notify the Supplier upon inspection of any defect by reason of which
     the Customer alleges that the Products delivered are not in accordance with
     the Specification and which should be apparent on reasonable inspection.

4.5  If the Customer FAILS to give any notice as described in clause 4.4 then,
     except in respect of any defect which is not one which should be apparent
     on reasonable inspection, the Products shall be conclusively presumed to be
     in all respects in accordance with the Specification, and accordingly the
     Customer shall be deemed to have accepted the delivery of the Products in
     question and the Supplier shall have no liability to the Customer with
     respect to that delivery.

4.6  If the Customer rejects any delivery of the Products which are not in
     conformity with the Specification ("Defective Products"), (without
     prejudice to clause 8.2 or 8.4) the Customer may still proceed to buy the
     Defective Products from the Supplier at such price to be mutually agreed
     between the Supplier and the Customer. In the event that the Customer does
     not purchase the Defective Products (without any obligations or liability
     by the Customer to the Supplier), then the following shall occur:

     a)   The Supplier shall pay the Customer all the monies paid by the
          Customer for the respective Products supplied by Customer to Supplier;
          and

     b)   Supplier can sell the same to such third party provided the proceeds
          from that sale shall be utilised in priority to pay the Customer all
          the monies paid by the Customer for the respective Products; All
          remaining proceeds will be paid to the supplier.

4.7  Risk in and responsibility for the Products shall pass to the Customer once
     the Products are received at the Port of Guangzhou (or other acceptable
     port). Property and title in the Products shall not pass to the Customer
     until the Supplier has received full payment for the Products in accordance
     with clause 5.

                                       4
<PAGE>
4.8  The delivery of the Products by the Supplier to the Customer shall be in
     packing sizes and material acceptable to Customer. The Customer shall be
     entitled under this Agreement to net off the packaging material weight. The
     cost for the packaging shall be paid by the Supplier.

5.   PRICE OF THE PRODUCTS AND STEVIA SEEDLINGS AND PAYMENT

5.1  The initial price to be charged by the Supplier to the Customer in respect
     of the Products for the first two (2) years is as set out in Schedule 3.

5.2  Subject to clause 8.3, the Supplier and the Customer shall review and on or
     before 30th September of each Year on any subsequent revisions to the Price
     and price adjustment mechanisms set out in Schedule 3 applicable for the
     forthcoming Year provided that the pricing mechanism of the Products for
     the forthcoming year shall not exceed 20% of the agreed price of that
     material year. IN the calculation of the maximum increase or decrease in
     price of 20%, the net annual inflation adjustment of the country in which
     the purchase price currency is based and/or net of an annual inflation
     adjustment of the producing country further adjusted for by the currency
     conversion of the purchase price currency will be considered. The Supplier
     and the Customer shall act in good faith to negotiate the terms of the
     pricing mechanism of the Products for the forthcoming year.The Supplier and
     Customer shall not act unreasonably to frustrate or terminate the
     negotiations of the pricing mechanism of the Products for the forthcoming
     year.

5.3  The Supplier shall be entitled to reasonably increase the price for the
     Products to cover any extra expenditure incurred as a result of the
     Customer's instructions which differ from those outlined in this agreement.

6.   CONFIDENTIALITY

6.1  Subject to the provisions of clauses 6.2 and 6.3, each party:

     (A)  shall treat as strictly confidential and use solely for the purposes
          contemplated by this Agreement all information, whether technical or
          commercial, obtained or received by it as a result of entering into or
          performing its obligations under this Agreement and relating to the
          negotiations relating to, or the provisions or subject matter of, this
          Agreement or any other party to it ("confidential information");

     (B)  shall not, except with the prior written consent of the party from
          whom the confidential information was obtained publish or otherwise
          disclose to any person any confidential information except for the
          purposes contemplated by this Agreement; and

     (C)  where any of the confidential information is also privileged, the
          waiver of such privilege is limited to the purposes of this agreement
          and does not and is not intended to result in any wider waiver of the
          privilege and each party shall take all reasonable steps to protect
          the privilege of the other party in its respective confidential
          information and shall advice the other party promptly in writing if
          any step is taken by any other person to obtain any privileged
          confidential information of the other party.

                                       5
<PAGE>
6.2  PERMITTED DISCLOSURES

Each party may disclose confidential information which would otherwise be
subject to clause 6.1 if, and only to the extent that it can demonstrate that:

     (A)  such disclosure is required by law or by any securities exchange or
          regulatory or governmental body having jurisdiction over it, wherever
          situated, and whether or not the requirement has the force of law;

     (B)  the confidential information was lawfully in its possession prior to
          its disclosure by the other party (as evidenced by written records)
          and had not been obtained from the other party;

     (C)  the confidential information has come into the public domain other
          than through its fault or the fault of any person to whom the
          confidential information has been disclosed in accordance with clause
          6.1;

provided that any such disclosure shall not be made without prior consultation
with the party from whom the confidential information was obtained.

6.3  DISCLOSURES TO CERTAIN PARTIES

Each party may for the purposes contemplated by this Agreement disclose
confidential information to the following persons or any of them, provided that
a written confidentiality undertaking in a form equivalent to clause 6.1 has
been obtained from such person:

     (A)  its professional advisers, auditors, bankers and insurers, acting as
          such; and

     (B)  its directors, officers, senior employees and sub-contractors.

Further to the above, the Customer shall prepare a Contract Verification Letter
for this agreement for general disclosure by the Supplier for verification of
this agreement.

6.4  SURVIVAL OF RESTRICTIONS

The restrictions contained in this clause shall survive the termination of this
Agreement and shall continue for two years from the date of termination.

7.   WARRANTIES

The Supplier hereby separately represents warrants and undertakes for itself to
and with the Customers and its successors in title as follows:

     A)   The Supplier has full legal right, power and authority to execute,
          deliver and perform their obligations under this Agreement; and

     B)   There is no provision of any existing contract, agreement or
          instrument binding the Supplier which has been or would be contravened
          by the execution and delivery of this Agreement or by the performance
          or observance by the Supplier of any of the terms hereof.

The Customer hereby separately represents warrants and undertakes for itself to
and with the Supplier and its successors in title as follows:

                                       6
<PAGE>
     A)   The Customer has full legal right, power and authority to execute,
          deliver and perform their obligations under this Agreement; and

     B)   There is no provision of any existing contract, agreement or
          instrument binding the Customer which has been or would be contravened
          by the execution and delivery of this Agreement or by the performance
          or observance by the Customer of any of the terms hereof.

8.   TERM AND TERMINATION

8.1  This Agreement shall come into force on 20 February 2009 and, subject to
     earlier termination pursuant to clauses 12.4, 8.2, 8.3 or 8.4 below, shall
     continue in force for a period of three (3) years ("Term").

8.2  Either party may terminate this Agreement forthwith by giving written
     notice to the other in any of the following events:

     (A)  if the other party commits any material breach of any of the terms and
          conditions of this Agreement and fails to remedy that breach (if
          capable of remedy) within one month after notice from the other party
          requiring it to be remedied and giving full particulars of the breach;
          or

     (B)  if the other party has a winding up petition presented against it or
          enters into liquidation whether compulsory or voluntary (except for
          the purposes of bona fide reconstruction or amalgamation with the
          prior approval of the other party), or compounds with or makes any
          arrangement with its creditors or makes a general assignment for the
          benefit of its creditors, or if it has a receiver, manager,
          administrative receiver or administrator appointed over the whole or
          substantially the whole of its undertaking or assets, or if it has an
          administration petition presented or administration application made
          against it or a notice of intention to appoint an administrator has
          been given to any person or if it ceases or threatens to cease to
          carry on its business, or makes any material change in its business,
          or if it suffers any analogous process under any foreign law.

8.3  The Customer is at liberty to terminate the Agreement without any liability
     whatsoever to the Supplier if the review of the Specifications (as ascribed
     in clause 3.2 hereto); or the Pricing ( as ascribed in clause 5.2 hereto)
     is not agreed between the Supplier and the Customer in writing at least 60
     days prior to the end of each Year.

8.4  CONSEQUENCES OF TERMINATION

Upon termination in accordance with this clause 8 or clause 12.4:

     (A)  the rights and obligations of the parties under this Agreement shall
          terminate and be of no future effect, except that clauses 1, 6 and 11
          shall remain in full force and effect;

     (B)  any rights or obligations to which any of the parties to this
          Agreement may be entitled or be subject before such termination shall
          remain in full force and effect;

     (C)  termination shall not affect or prejudice any rig ht to damages or
          other remedy which the terminating party may have in respect of the
          event which gave rise to the termination or any other right to damages

                                       7
<PAGE>
          or other remedy which any party may have in respect of any breach of
          this Agreement which existed at or before the date of termination.

9.   LIMITATION OF LIABILITY

9.1  The provisions of this clause 9 set out the entire financial liability of
     the Supplier (including any liability for the acts or omissions of its
     employees, agents and sub-contractors) to the Customer in respect of:

     (A)  any breach of this Agreement; and

     (B)  any representation, statement or tortious act or omission including
          negligence arising under or in connection with this Agreement;

     (C)  Product liability, Product safety only as it pertains to any specific
          act of negligence traceable to the supplier;

     (D)  voluntary or involuntary recall of the Products only as it pertains to
          any specific act of negligence traceable to the supplier;

9.2  All warranties, conditions and other terms implied by statute or common law
     are to the fullest extent permitted by law, excluded from the terms of this
     Agreement.

10.  PROVISIONS RELATING TO THIS AGREEMENT

10.1 ASSIGNMENT

Either party must have the prior written consent of the other party to assign
all or any part of its rights and benefits under this Agreement to a third
party. No consent shall be required for such an assignment to any subsidiary,
Affiliate, or holding company of either party to its affiliate so long as the
assignment does not result in a change to the conditions of the agreement in any
way.

10.2 SUB-CONTRACTING

The Supplier shall be entitled to carry out its obligations under this Agreement
through any agents or sub-contractors appointed by it in its absolute discretion
for that purpose subject to the written consent of the Customer.

10.3 ENTIRE AGREEMENT

     (A)  This Agreement, together with any documents referred to in it,
          constitutes the whole agreement between the parties relating to its
          subject matter and supersedes and extinguishes any prior drafts,
          agreements, undertakings, representations, warranties and arrangements
          of any nature, whether in writing or oral, relating to such subject
          matter, and can be amended only by written agreement amongst the
          Parties.

     (B)  The Parties acknowledge that they have not been induced to enter into
          this Agreement by any representation or warranty other than those
          contained in this Agreement and, having negotiated and freely entered
          into this Agreement, agree that they shall have no remedy in respect
          of any other such representation or warranty except in the case of
          fraud. The Parties acknowledge that their legal advisers have
          explained to them the effect of this clause.

                                       8
<PAGE>
     (C)  No variation of this Agreement shall be effective unless made in
          writing and signed by each of the parties.

10.4 RIGHTS ETC CUMULATIVE AND OTHER MATTERS

     (A)  The rights, powers, privileges and remedies provided in this Agreement
          are cumulative and are not exclusive of any rights, powers, privileges
          or remedies provided by law or otherwise.

     (B)  No failure to exercise nor any delay in exercising by any party to
          this Agreement of any right, power, privilege or remedy under this
          Agreement shall impair or operate as a waiver thereof in whole or in
          part.

     (C)  No single or partial exercise of any right, power privilege or remedy
          under this Agreement shall prevent any further or other exercise
          thereof or the exercise of any other right, powers, privilege or
          remedy.

10.5 COSTS

Subject to any express provisions to the contrary each party to this Agreement
shall pay its own costs of and incidental to the negotiation, preparation,
execution and carrying into effect of this Agreement.

10.6 INVALIDITY

If any provision of this Agreement shall be held to be illegal, void, invalid or
unenforceable under the laws of any jurisdiction, the legality, validity and
enforceability of the remainder of this Agreement in that jurisdiction shall not
be affected, and the legality, validity and enforceability of the whole of this
Agreement in any other jurisdiction shall not be affected.

10.7 COUNTERPARTS

This Agreement may be executed in any number of counterparts, which shall
together constitute one Agreement. Any party may enter into this Agreement by
signing any such counterpart.

10.8 NOTICES

     (A)  Any notice (which term shall in this clause include any other
          communication) required to be given under this Agreement or in
          connection with the matters contemplated by it shall, except where
          otherwise specifically provided, be in writing in the English
          language.

     (B)  Any such notice shall be addressed as provided in clause 10.8(C) and
          may be:

          (1)  personally delivered, in which case it shall BE deemed to have
               been given upon delivery at the relevant address if it is
               delivered not later than 17.00 hours on a Business Day, or, if it
               is delivered later than 17.00 hours on a Business Day or at any
               time on a day WHICH is not a Business Day, at 09.00 hours on the
               next Business Day; or

          (2)  if within Malaysia, sent by first class pre-paid post, in which
               case it shall be deemed to have been given two Business Days
               after the date of posting; or

                                       9
<PAGE>
          (3)  if from or to any place outside Malaysia, sent by pre-paid
               airmail, or by air courier in which case it shall be deemed to
               have been given seven Business Days after the date of posting in
               the case of airmail or two Business Days after delivery to the
               courier, in the case of air courier;

          (4)  sent by facsimile, in which case it shall be deemed to have been
               given when despatched, subject to confirmation of uninterrupted
               transmission by a transmission report provided that any notice
               despatched by facsimile after 17.00 hours on any Business Day or
               at any time on a day which is not a Business Day shall be deemed
               to have been given at 09.00 on the next Business Day; or

          (5)  sent by electronic mail, in which case, it shall be deemed to be
               given when received but subject to the same provisions regarding
               receipt after 17.00 hours as apply to notices sent by facsimile;

     (C)  The addresses and other details of the parties referred to in clause
          10.8(B) are, subject to clause 10.8(D):

          Name: WaterLand Holdings Pte Ltd

          For the attention of: George Blankenbaker

          Address: 14 Chin Bee Road, Singapore 619824

          Facsimile number: +(65) 6-515-9929

          E-mail address: george@waterlandholdings.com

          Name: PureCircle Sdn. Bhd

          For the attention of: Dorn Wenninger

          Address: Unit 10-03-02, 3rd Floor, PNB Damansara, No. 19, Lorong
          Dungun, Damansara Heights, 50490, Kuala Lumpur, Malaysia

          Facsimile number: +603 20939777

          E-mail address: dwenninger@purecircle.com

     (D)  Any party to this Agreement may notify the other party of any change
          to the address or any of the other details specified in clause
          10.8(C), provided that such notification shall only be effective on
          the date specified in such notice or five Business Days after the
          notice is given, whichever is later.

10.9 RELATIONSHIP OF THE PARTIES

     (A)  Nothing in this Agreement shall constitute, or be deemed to
          constitute, a partnership between the parties nor, except as expressly
          provided, shall it constitute, or be deemed to constitute, any party
          the agent of any other party for any purpose.

                                       10
<PAGE>
     (B)  Subject to any express provisions to the contrary in this Agreement,
          neither Party shall have the right or authority to and shall not do
          any act, enter into any contract, make any representation, give any
          warranty, incur any liability, assume any obligation, whether express
          or implied, of any kind on behalf of the other Party or bind the other
          Party in any way.

11.  LAW AND JURISDICTION

11.1 MALAYSIAN LAW

This Agreement shall be governed by, and construed in accordance with, Malaysian
law.

11.2 The Supplier shall comply strictly with all applicable requirements
     relating to occupational safety and health legislation or similar laws in
     Malaysia as well as in the country of operations in which the product is
     produced, and the relevant rules and regulations thereunder.

11.3 JURISDICTION

In relation to any legal action or proceedings arising out of or in connection
with this Agreement ("Proceedings"), each of the parties irrevocably submits to
the non-exclusive jurisdiction of the Malaysia courts and waives any objection
to Proceedings in such courts on the grounds of venue or on the grounds that
Proceedings have been brought in an inappropriate forum

11.4 ARBITRATION

     (A)  Any dispute or difference arising out of or in connection with this
          Agreement, including any question regarding its existence, validity or
          termination and regardless of the nature of such dispute or
          difference, shall be referred to and finally resolved by arbitration
          under the Kuala Lumpur Regional Centre for Arbitration ("KLRCA
          Rules"), which Rules are deemed to be incorporated by reference into
          this Clause, and:

          (1)  the number of arbitrators shall be three, one of whom shall be
               appointed by the party asserting a claim against the other party,
               one of whom shall be appointed by the party against whom a claim
               has been asserted, and the third of whom shall be selected by
               mutual agreement, if possible, within thirty days of the
               selection of the second arbitrator and failing which by the
               administering authority. In the event the party against whom a
               claim has been asserted fails to appoint the second arbitrator
               within 15 days after the first arbitrator is appointed by the
               Party asserting a claim, then the administering authority shall
               select the second and third arbitrators after expiration of the
               said 15 days;

          (2)  the seat of arbitration shall be Malaysia; and

          (3)  the language to be used in the arbitral proceedings shall be
               English.

                                       11
<PAGE>
12.  FORCE MAJUERE

12.1 EFFECT OF FORCE MAJEURE

Neither party shall be deemed to be in breach of this Agreement or otherwise
liable to the other as a result of any delay or failure in the performance of
its obligations under this Agreement if and to the extent that such delay or
failure is caused by force majeure (as defined in clause 12.2) and the time for
performance of the relevant obligation(s) shall be extended accordingly.

12.2 DEFINITION OF FORCE MAJEURE

For the purpose of this clause, "force majeure" means any circumstances not
within the reasonable control of the party concerned including, without
limitation:

     (A)  any strike, lockout or other industrial action, or any shortage of or
          difficulty in obtaining labour, fuel, raw materials or components; any
          destruction, permanent breakdown, malfunction or damage of or to any
          premises, plant, equipment (including computer systems) or materials;

     (B)  any action taken by a governmental or public authority of any kind,
          including, without limitation, not granting a consent, exemption,
          approval or clearance or imposing an embargo, export or import
          restriction, rationing, quota or other restriction or prohibition;

     (C)  any civil commotion or disorder, riot, invasion, war, threat of or
          preparation for war;

     (D)  any accident, fire, or explosion, (other than in each case, one caused
          by a breach of contract by or assistance of the party concerned)
          storm, flood, earthquake, subsidence, epidemic or other natural
          physical disaster.

12.3 OBLIGATIONS OF AFFECTED PARTY

A party whose performance of its obligations under this Agreement is delayed or
prevented by force majeure:

     (A)  shall immediately notify the other party of the nature, extent, effect
          and likely duration of the circumstances constituting the force
          majeure;

     (B)  shall use all reasonable endeavours to minimise the effect of the
          force majeure on its performance of its obligations under this
          Agreement including the making of any alternative arrangements for
          resuming the performance of its obligations which may be practicable
          without incurring material additional expense; and

     (C)  shall, subject to clause 12.4, immediately after the cessation of the
          force majeure, notify the other party thereof and resume full
          performance of its obligations under this Agreement.

12.4 TERMINATION FOR FORCE MAJEURE

If any force majeure delays or prevents the performance of the obligations of
either party for a continuous period in excess of six months, the party not so
affected shall then be entitled to give notice to the affected party to

                                       12
<PAGE>
terminate this Agreement, specifying the date (which shall not be less than 30
Business Days after the date on which the notice is given) on which termination
will take effect. Such a termination notice shall be irrevocable, except with
the consent of both parties, and upon termination the provisions of clause 8.4
shall apply

             THIS SECTION OF THE PAGE IS INTENTIONALLY LEFT BLANK]

                                       13
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IN WITNESS whereof each of the parties has executed this Agreement in a manner
binding upon it the day and year first above written.

                                                                       SIGNED BY

FOR AND BEHALF OF PURECIRCLE SDN. BHD. in the presence of :- )

SIGNED BY

FOR AND BEHALF OF             )
WATERLAND HOLDINGS PTE LTD.   )
in the presence of:-          )

                                       14

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