License agreement and royalty payment
Deliflor Japan Co., Ltd. (hereinafter referred to as “Licensor”) is a one hundred percent (100%) subsidiary company of Deliflor Chrysanten B.V. and Deliflor Royalties B.V. (hereinafter referred to as “Deliflor”), is aiming to represent Deliflor, and perform sales and promotion activities in Asia regarding chrysanthemum varieties bred or exclusively represented by Deliflor.
If a customer (hereinafter referred to as “Licensee”) desires to obtain for itself a non-exclusive license to produce, export, and sell cut flowers of the chrysanthemum varieties of Deliflor, the Licensee is required to sign a license agreement, which defines the terms and conditions for the use of Deliflor varieties and the payment of royalties. Royalties are regarded as usage-based payments made by licensee to licensor for use of a specific right such as intellectual property right and plant breeder’s right.

[Step 1] Making a license agreement
By making a license agreement, Licensor grants Licensee, and the Licensee accepts the rights to grow, export, and sell cut flowers of Deliflor varieties, subject to the restrictions indicated in the agreement, and also subject to conditions, provisions and stipulations laid down in the agreement. The Licensee undertakes to grow, export, and sell cut mum flowers of Licensed Products exclusively through counterparties as indicated in the agreement.

[Step 2] Ordering propagation materials
Licensee is able to request Licensor to provide propagation materials via telephone, fax, e-mail, etc. The Licensor inform Licensee about the availability of propagation materials and possible delivery week in advance. Licensee needs to submit an import permit if necessary prior to the delivery of propagation materials.

[Step 3] Importing propagation materials
Propagation materials are produced by Deliflor’s own propagation bases in African countries and are exported directly from there to the destination countries by air. Licensee is required to get necessary documents to import propagation materials and make an arrangement for plant quarantine inspection and custom clearance.

[Step 4] Reporting the amount of stems sold during a specific quarter
The Licensee shall pay the Licensor a license fee based upon the License fee table as indicated in the agreement with regard to the rights and powers granted to the Licensee in the agreement. The Licensee undertakes to provide the Licensor via Licensor’s Web Site, no later than the last day of the month following on each trading period (1st quarter: January 1 - March 31, 2nd quarter: April 1 - June 30, 3rd quarter: July 1 - September 30, 4th quarter: October 1 - December 31), with a royalty report including the total number of cut mum flowers of Deliflor varieties traded per counterparty. The above-mentioned date by which the statements must be submitted is a deadline.

[Step 5] Invoicing for royalties
Based upon the amount of stems reported, we will send an invoice.

[Step 6] Payment for royalties
Licensee is required to pay for royalties based upon an invoice.