AWB Seed Variety Licence – 2004 Essential reading – Seed Variety Licence for 2004 Seed Sales

Since 2003 AWB Seeds has implemented some fundamental changes to the way we administer our seed licencing arrangements in order to streamline the documentation associated with the purchase of a seed variety in respect of which AWB Seeds is a grantee or licencee of Plant Breeders" Rights (AWB Seeds Variety).

Key elements of AWB Seeds" current seed licencing arrangements include:

The Seed Variety Licence 2004 terms and conditions apply to all purchases of AWB Seeds Varieties during the 2004 season. Therefore, it is important that you take the time to make yourself fully aware of all the terms and conditions associated with the purchase of an AWB Seeds Variety as detailed below.

The key points of the Seed Variety Licence 2004 are as follows:

These are the terms and conditions on which AWB Limited (ABN 99 081 890 459) trading as AWB Seeds (we or us or our) licences to each person (you or your) who purchases (either itself or through an authorised representative), from us or an AWB Seeds approved retailer, seed that is subject to registered protection under the Plant Breeders Rights Act 1994 (Cth) (Act) and in respect of which we are the grantee of Plant Breeders Rights (PBR) or licencee of that grantee (Seed).

Details of AWB Seeds approved retailers are available online http://www.awb.com.au/growers/awbseeds/aboutawbseeds/ or by contacting AWB Seeds on 03 5389 0150.

Each time you complete a purchase of Seed from us or an AWB Seeds approved retailer, you simultaneously enter into a licence with us in respect of the relevant Seed, on these terms and conditions. You acknowledge that no licence rights are granted by us in respect of purchases of Seed from persons other than us or AWB Seeds approved retailers.

(a) Subject to paragraph 3(b), we licence you to plant Seed for the purpose of you producing grain therefrom (Commodity) and selling that Commodity as commodity (and not as seed). You must not use Seed for any other purpose.

(b) You may retain:

(i) Commodity as seed for the purpose of subsequent planting by you (Retained Seed). Retained Seed remains subject to these terms and conditions including the obligation to make payments under paragraph 5 in respect of Commodity produced therefrom; and

(ii) Commodity for the purpose of feeding your stock (Stockfeed Commodity).

(c) Subject to any express entitlements conferred on you under these terms and conditions, you acknowledge that all rights conferred on us or our licensors under the Act in respect of the Seed remain in full force and effect.

(a) To the extent permitted by law we exclude all warranties and liabilities in relation to the Seed howsoever arising (including all liabilities arising from our negligence).

(b) Where any warranty or liability in relation to the Seed (including a liability arising from our negligence) cannot be excluded by us, we limit our liability to the extent legally permissible to:

(i) the replacement of the Seed or the supply of agronomically equivalent Seed; or

(ii) the payment of the cost of replacing the Seed or acquiring agronomically equivalent Seed, – as determined by us in our discretion.

(a) You agree, in accordance with the following provisions of this paragraph 5, to pay to us a royalty on each metric tonne of Commodity you produce (other than Retained Seed) calculated at the rate applying to the relevant Commodity (End Point Royalty) plus applicable GST as set out in the schedule to these terms and conditions.

(b) In respect of the sale of Commodity to us or a third person with whom, prior to the time of that sale, we have entered into a collection arrangement (Collection Marketer), an amount equal to the End Point Royalty (plus applicable GST) will be deducted by us or that Collection Marketer, as the case may be, from purchase monies otherwise payable to you, in satisfaction of your obligation under paragraph 5(a). A tax invoice will be issued to you in relation to the End Point Royalty after the End Point Royalty is deducted from the purchase monies payable to you.

(c) In respect of any sale of Commodity to a third person who is not a Collection Marketer and in respect of any Stockfeed Commodity, you must pay to us the applicable End Point Royalty (plus applicable GST) within 30 days after the day of sale or day of harvest of the Stockfeed Commodity, as applicable. A tax invoice will be issued to you in relation to the End Point Royalty following receipt of your payment.

(a) As a condition of your purchase of Seed from an AWB Seeds approved retailer and your sale of Commodity to a Collection Marketer, you agree to supply to that approved retailer or Collection Marketer your name, address, contact and trading details.

(b) At the time of making your payment under paragraph 5(c) and at any other time that we request in writing, you must provide to us complete and accurate written details of the:

(i) varieties and quantities of Commodity produced and/or sold;

(ii) persons to whom Commodity is sold and details of the varieties and quantities of Commodity sold to those persons;

(iii) the varieties and quantities of Stockfeed Commodity;

(iv) the varieties and quantities of Retained Seed; and

(v) any other details reasonably required by us in order to verify your compliance with the requirements of these terms and conditions.

(c) You authorise us to contact and obtain from any person from whom you purchase Seed or to whom you sell Commodity any of the details referred to in paragraphs 6(a) or 6(b).

(a) For the purposes of these terms and conditions, the expression sold includes bartered or exchanged and sell has a corresponding meaning.

(b) You acknowledge and agree that we may enter the details referred to in paragraphs 6 (a) and (b) into an internal database and use those details to contact you with information regarding any of our business developments and/or our products and services (Marketing Purposes). If you do not wish us to use your details for Marketing Purposes please contact us on 03 5389 0150.

(c) You and us both agree that in performing our rights and exercising our obligations under these terms and conditions, we will each comply with all applicable laws including the Privacy Act 1988 (Cth). A copy of the AWB privacy policy (with which we agree to comply) is available online www.awb.com.au or by contacting AWB Seeds on 03 5389 0150.

(d) Any failure by us to insist on strict compliance with any of these terms and conditions or any delay by us in exercising our rights under these terms and conditions will not constitute a variation or waiver of any of these terms and conditions or any other right that is available to us.

(e) These terms and conditions can be amended by us at any time by giving you not less than 14 days notice in writing. Any amendments to these terms and conditions, except to the End Point Royalty rates, will apply after the notice period. Amendments to End Point Royalty rates notified in a year will only apply from the commencement of the subsequent year"s harvest. You acknowledge that these terms and conditions cannot be amended in any other manner and that no person (including the person from whom you purchase Seed) other than us has the authority to amend these terms and conditions on our behalf.

(f) If part or all of any provision of these terms and conditions or its application to any person or circumstance is illegal or unenforceable, the provision will be interpreted so as to ensure it is not illegal or unenforceable. If any provision or any part of it cannot be so interpreted, the provision or part of it will be severed from these terms and conditions and the remaining provisions of these terms and conditions remain in force.

(g) Where you comprise two or more persons, an agreement or obligation to be performed or observed by you binds those persons jointly and each of them severally.

(h) Your obligations under these terms and conditions cannot be assigned without our prior written consent and you acknowledge that we can give our consent on such terms and conditions as we think fit.

(i) These terms and conditions (and any contract between us in which these terms and conditions form part) are governed by the law in the State of Victoria and you and us each submit to the jurisdiction of the courts of that state.

(j) The expressions GST and tax invoice, when used in these terms and conditions, have the meaning given to them in the A New Tax System (Goods and Services Tax) Act 1999 (Cth).

Schedule– End Point Royalty rates and breakdown

* Seed Variety Licence and applicable End Point Royalty rate(s) only apply in states of NSW, VIC and SA.

** Grazing or Hay – Despite these terms and conditions, you may plant Seed for the purpose of cutting hay or grazing your livestock and, in this circumstance, a payment of $55.00 per tonne of seed sown (GST inclusive) is due and payable to us within 30 days from when the crop has been fully grazed or cut for hay, in lieu of any obligation to pay End Point Royalties in respect of that crop.