Of Control in Accordance with Korean Organic Certification (KOC) and Its Implementing

Contract

of control in accordance with Korean Organic Certification (KOC) and its Implementing Rules in the current version.

Inspection and certification of the operator in accordance with Korean Organic Certification(KOC) for eco-friendly agricultural products and organic processed foods according to the Eco-Friendly Agriculture Promotion Act

Kiwa BCS is a certification body designated by the National Agricultural Products Quality Management Service (NAQS) of Korea in order to carry out certifications of organic agricultural products under the scope of the regulations “Eco-Friendly Agriculture Promotion Act” (hereinafter, "Act")

Hereinafter referred to as Korean Organic Certifications (KOC) for organic agricultural products

For the fulfilment of the KOC for organic agricultural products, the operator has to meet all legal requirements formulated in the legal frame of the regulations mentioned above.

§ 1 Scope of the Contract

Both parties agree on the implementation of the inspection system according to the regulations of the KOC law and the specific KOC for organic agricultural products. If intended and permissible, an additional objective may be the issuing of a certificate indicating that the products are covered by the inspection system. The inspection system does not cover any other legal regulations as for example regarding food quality, hygiene or calibration.

The contract remains valid also in case of changes or complete revision of the standard.

§ 2 Obligations of Kiwa BCS

Kiwa BCS shall carry out the inspections in accordance with a standard inspection program that may be amended by the inspection authority only. Before each inspection Kiwa BCS shall agree on an inspection date with the operator. Agreements on inspection dates shall be binding. Cancellations shall be valid only if justified and if acknowledged by Kiwa BCS. Unannounced inspections are part of the inspection program. Kiwa BCS shall perform services within the framework of the relevant legal regulations in connection with the KOC for organic agricultural products. The liability of Kiwa BCS is stipulated in § “Liability” of the Standard Terms and Conditions (STC) of Kiwa BCS.

§ 3 Rights and Obligations of the Operator

The rights and obligations of the ordering party arise from the provisions of the relevant norm which this contract refers to. The inspection system both parties agree upon, as well as the relevant standard control program, are part of the contract (annex to the contract). The rights and obligations of the operator are laid down in § “Rights and Obligations of the Operator” of the STCs.

§ 4 Prices and Conditions of Payment

Prices and conditions of payment ensue from § “Prices” + “Conditions of Payment” of the STC of Kiwa BCS.

The invoice shall be drawn up according to expenses on the basis of the Kiwa BCS scale of fees valid at the respective time and the last agreed offer dated ...... The offer is based on the information in the application form. The presently valid scale of fees as well as the application and the offer constitute part of the contract.

§ 5 Adjustment Clause

Should a stipulation of this contract be or become invalid, it is to be replaced by such an agreement which is closest to the original purpose. All other stipulations of the contract remain valid. According to the stipulations of §“Adjustment Clause”(period of effectiveness) of the Standard Terms and Conditions, Kiwa BCS may adjust this contract with immediate effect, if this adjustment was imposed on Kiwa BCS by the competent authorities.

§ 6 Period of Validity and Termination

This contract comes into force with effect from......

The contract shall automatically be prolonged by another year, if it is not cancelled at least 6 months before December 31 of the respective year. If the operator ceases to produce, process or import products from organic agriculture, this contract shall automatically be terminated. Kiwa BCS has to be informed about the cessation of these activities immediately and in written form. On instruction by the authorities, Kiwa BCS reserves the right of a final inspection - even after termination of the contract. In case there is a delay in payment for over six months by the ordering party, Kiwa BCS can terminate the contract within two weeks time to the end of the month.

§ 7 Effectiveness/Amendments

The STCs of Kiwa BCS cover everything else. Only written changes and amendments to this contract shall be valid.