UNITED STATES PATENT AND TRADEMARK OFFICE
`_______________________
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`________________________
`
`Cyanotech Corporation
`Petitioner
`
`v.
`
`The Board of Trustees of the University of Illinois
`Patent Owner
`
`_______________________
`
`IPR2013-00401
`Case:
`Patent No.: 5,527,533
`_______________________
`
`
`
`
`
`
`
`PATENT OWNER’S MOTION TO SUBMIT SUPPLEMENTAL
`INFORMATION PURSUANT TO 37 C.F.R. §42.123(b)
`
`
`Pursuant to 37 C.F.R. § 42.123(b) and the Board’s May 1, 2014 Order
`
`
`
`
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`(Paper No. 38), Patent Owner hereby moves for leave to submit supplemental
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`information in support of its Response (Paper No. 32). This information consists
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`of statements by Petitioner in its brochures and communications with customers
`
`that raise significant questions about the primary reference upon which Petitioner
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`relies. Patent Owner notified Petitioner of these documents—documents Petitioner
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`created and already knew of—with more than sufficient time to avoid any potential
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`risk of prejudice to Petitioner. Justice dictates that Petitioner’s own statements
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`concerning these issues be considered as part of the IPR proceedings it initiated.
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`
`
`1
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`

`

`Patent Owner seeks to submit two supplemental documents—a pair of
`
`emails containing information Petitioner provided to its customers. These two
`
`emails contain the following attachments:
`
`(1)
`
`(2)
`
`(3)
`
`A flyer bearing Cyanotech’s logo-entitled letterhead (Ex. A at
`RA015049–50);
`A memorandum entitled “Cyanotech’s titer measurements versus
`our competitor’s” (Ex. A at RA015051); and
`A four-page brochure for a Cyanotech product (Ex. B at
`RA023192–95).
`
`The patent-at-issue is directed to methods of using astaxanthin. The primary
`
`
`
`referenced relied upon by Petitioner in this IPR, an obscure dissertation by Rene
`
`Grangaud (Cyan Ex. 1002), involved the administration of an oil that Grangaud
`
`reported as being astaxanthin. (See Pat. Owner’s Resp. (Paper No. 32) at pp. 9–10;
`
`Cyan Ex. 1002 at pp. 29–37.) Grangaud relied on a method called
`
`spectrophotometric analysis to show that the oil he isolated was in fact astaxanthin.
`
`(Id.) Patent Owner argued in its Response that this method was insufficient to
`
`confirm that the isolated substance was astaxanthin (as opposed to some other
`
`carotenoid, compound, or mixture thereof), or that the effects observed following
`
`administration of the oil to rats was due to astaxanthin (as opposed some other
`
`compound). (Pat. Owner’s Resp. (Paper No. 32) at pp. 27–31.) More
`
`specifically, Patent Owner argued that Grangaud’s spectroscopic analysis was
`
`unreliable and inconclusive because it does not differentiate astaxanthin from other
`
`carotenoids and related compounds. (Id.)
`
`
`
`2
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`

`

`In the documents at issue, Cyanotech states that the spectrophotometric
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`method used by Grangaud is an unreliable means for determining the presence of
`
`astaxanthin. (Ex. A at RA015049 (“The problem with the Spectrophotometric
`
`assay method is that, in addition to astaxanthin, other carotenoids such as lutein,
`
`canthaxanthin, and beta carotene are falsely included as astaxanthin in the results.
`
`Of even greater concern, chlorophyll and degradation products of astaxanthin
`
`without health benefits (such as astacene) will also be falsely included as
`
`asxatanthin in the results. . . . Purchasing astaxanthin from a supplier that uses
`
`Spectrophotometric analysis means that you can’t be sure if your astaxanthin is
`
`really astaxanthin”); id. at RA015051 (“The only valid way to accurately measure
`
`astaxanthin is the HPLC method used by Cyanotech”); Ex. B at RA023195 (“ [A]
`
`UV spectrophotometric analysis [ ] can falsely include other carotenoids and even
`
`chlorophyll and astacene (a breakdown bi-product of astaxanthin that has no health
`
`benefits) as astaxanthin”).) Thus, these documents contradict the conclusions set
`
`forth in Grangaud, and directly support Patent Owner’s Response. As these are
`
`Petitioner’s own statements, justice dictates that the Board consider them in
`
`reaching its decision.
`
`
`
`Patent Owner was reasonably diligent and could not have reasonably
`
`obtained this information sooner. The two documents at issue were part of a
`
`
`
`3
`
`

`

`production consisting of over 100,000 pages.1 As of the due date for Patent
`
`Owner’s Response (March 21, 2014), Cyanotech had produced an additional
`
`160,000 pages of documents.2 Due to the large volume of documents with which
`
`Patent Owner was faced, Patent Owner did not discover the two emails that are the
`
`subject of this Motion until the week after it filed its Response. Patent Owner
`
`discovered these documents after running keyword searches in the course of
`
`preparing for the Rule 30(b)(6) deposition of Petitioner in the parallel litigation.
`
`Petitioner was questioned about one of the documents at the March 27, 2014
`
`deposition (Ex. B, at RA023192–95 (marked as “Exhibit 182”).)
`
`
`
`Consideration of the proposed supplemental information is in the interests of
`
`justice. First, the supplemental information is Petitioner’s own statements and is
`
`directly relevant to an argument already set forth in Patent Owner’s Response.
`
`Second, Patent Owner notified Petitioner of the supplemental information (and also
`
`provided Petitioner with copies of the documents) a full month before the date set
`
`
`1 Cyanotech initially produced these documents on October 1, 2013, but did
`so without any confidentiality designation. Cyanotech subsequently requested that
`Petitioner destroy the documents received on October 1, 2013 and then produced a
`replacement set on October 29, 2013. (Patent Owner relied upon an incorrect bates
`number when indicating these documents were produced in December during the
`conference call with the Board.)
`2 To date, Petitioner’s total production in the litigation consists of over
`285,000 pages, with more to come.
`
`
`
`4
`
`

`

`for Petitioner’s Reply,3 and almost two full weeks before the deposition of Patent
`
`Owner’s expert. Third, the proposed supplemental information does not give rise
`
`to any new arguments; to the contrary, it offers support to Patent Owner’s already-
`
`filed argument that Grangaud’s spectrophotometric analysis was unreliable and
`
`insufficient.
`
`Patent Owner respectfully submits that it is only just that Petitioner be held
`
`to its own words and that Petitioner would not be prejudiced by any delay in the
`
`identification of these documents. For these reasons, Patent Owner requests that
`
`the Board authorize submission of the attached supplemental information.
`
`
`
`Dated: May 2, 2014.
`
`
`
`
`
`Respectfully submitted,
`
`
`
`
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`
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`
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`
`
`
`s/ Mark D. Schuman
`
`Mark D. Schuman (Lead Counsel)
`
`Registration No. 31,197
`
`CARLSON CASPERS
`
`225 South Sixth Street, Suite 4200
`
`Minneapolis, MN 55402
`
`Telephone: (612) 436-9600
`
`Facsimile: (612) 436-9650
`
` mschuman@carlsoncaspers.com
`
`
`
`Counsel for Patent Owner The Board of
`
`Trustees of the University of Illinois
`
`
`
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`
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`3 Patent Owner emailed the documents to Patent Owner, along with an
`explanation of the Patent Owner’s intent to seek permission to submit them as
`supplemental information, on April 21, 2014.
`
`
`
`5
`
`

`

`CERTIFICATE OF SERVICE
`
`Pursuant to 37 C.F.R. § 42.6(e), the undersigned certifies that on May 2,
`
`
`
`2014, a true and correct copy of the foregoing Patent Owner’s Motion to Submit
`
`Supplemental Information Pursuant to 37 C.F.R. §42.123(b) was served via
`
`electronic mail upon the following:
`
`Joseph A. Rhoa (Lead Counsel)
`Registration No. 37,515
`NIXON & VANDERHYE P.C.
`901 North Glebe Road, 11th Floor
`Arlington, VA 22203-1808
`Telephone: (703) 816-4043
`Email: jar@nixonvan.com
`
`George E. Darby (Back-up Counsel)
`PARADISE PATENT SERVICES, INC.
`95 – 1045 Alakaina St.
`Mililani, HI 96789
`Telephone: (808) 626-1300
`Email: cyan@teleport-asia.com
`
`Counsel for Petitioner Cyanotech Corporation, including
`its subsidiary, Nutrex Hawaii, Inc.
`
`
`
`
`
`
`
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`
`
`
`
`
`
`
`
`
`
`
`6
`
`
`
`
`
`
`
`
`
`
`
`s/Mark D. Schuman
`(Lead Counsel)
`Registration No. 31,197
`
`

`

` 
`
` 
`
` 
`
` 
`
` 
`
` 
`
`Exhibit A 
`
`Exhibit A
`
`

`

`Message
`
`From:
`Sent:
`
`‘
`_.:.._fi,.;»,:,c,,,.
`
`5/16/2008 7:15:36 PM
`
`]
`
`To: ‘W’'
`CC:
`bcapelli@cyanotech.com; gcysewski@cyanotech.com; jvinson@cyanotechicom; skei|y@cyanotech.com
`Subject:
`Re: ”Dunc/Cyanotech and” meeting follow-up items
`
`Attachments: Analytical method Different Methods yield Drastically Different Resultspdf; Analytical method, Cyanotech vs our
`competitordoc; BioAstin Logo Rebate Program#2.doc.rtf
`
`Good afternoon Cico,
`
`l did receive your e-mail copied below of yesterday and here is how i would like to proceed:
`
`*On points 1, 2 and 3a, Jeane Vinson and Bob Capelli at corporate will send you a technical information packet today or
`
`Monday 2 day air from Kona, HI. The technical dossier essentially has all of the scientific substantiation of astaxanthin
`
`by Cyanotech and others related to experiment work, clinical studies and PowerPoint presentation material of the
`
`carotenoid on a CD. Also in the packet will be our product literature and 2 books (one for you and the other for
`
`Jordan) on natural astaxanthin as written by Bob Capelli (VP Sales and Marketing— Cyanotech) and Dr. Cysewski
`
`(President and CEO’ Cyanotech). Addressing here point 3b, please see attachment, the actual BioAstin natural
`
`astaxanthin HPLC methodology will be on the CD
`
`*On point 4,,our best offer pricing per the 1.35% natural astaxanthin beadlet form tablet'ed or 2 piece hard
`
`shell capsule dosage product is ”kg, FOB- Kailua-Kona, Hi. Attached, you'll find our BioAstin logo rebate
`
`program. The program is an incentive system for use of the BioAstin logo on your front, side or back labeling. The
`
`discounts off of the mkg price noted are clearly delineated. Related to the oleoresin product for GofL soft gel
`capsule dosage product possibility, please contact Los Angeles basedW5, Cyanotech‘s soft gel
`
`encapsulation partner for BioAstin. WI, President offii can be reachedNW or roan”
`
`my, 98%, the price and technology leader for astaxanthin soft gel encapsulation
`
`On point 3, we really don't have sophisticated carotenoid market research data. Here is what we do know from CRN and
`
`trade publication data, iutein garnered S150miilion worldwide in supplement sales in 2007, while lycopene generated
`
`SlZSmillion in worldwide supplement sales. The lion's share of worldwide demand is had in the US. marketplace. Beta
`
`carotene used to run higher than those levels, it's sales today are greatly diminished l’ll offer from first hand comments
`
`of insiders I know at *their natural beta carotene sales worldwide run about $20—$30million per annum. At this
`
`point, astaxanthin, zeaxanthin and all others are tiny in comparison to the first three mentioned
`
`*Related to a meeting, i would love to come down to Florida to meet face to face with Mend you in June. My wife
`
`and I, however, are under baby watch until her due date of June 15 and I can't go anywhere right now.
`
`i
`
`recommend that we (Bob Capelli, Jeane Vinson,m yourself and me) convene for a conference call the week ofJune
`
`5, time and day TBD. Then, Jordan, you and me meet face to face over dinner or lunch at the July 17‘19 NPA show in Las
`
`Vegas.
`
`I will attend the entire show, GofL always has a big presence at this trade show. With both arrangements, | see
`
`advantages in that we can address technical needs in the conference call with the Hawaiian personnel present and then
`
`at the face to face meeting we can plot out our course getting into the nuts and bolts of upcoming GofL natural
`
`astaxanthin product introductions. Please get back to me locking up a time and day for the conference call the week of
`
`06/05 (Hawaii is 6 hours behind“ currently) and then offering your thinking on the face to face meeting in
`
`Las Vegas.
`
`Have a great weekend ahead,
`
`W M
`
`anufacturer‘s Representative
`
`Cyanotech Corp.
`
`HIGHLY CONFlDENTiAL
`
`RA—015047
`
`

`

`mmotechcom
`
`(847) 234-7703 office
`
`(773) 960-3996 cellular
`
`(847) 234-7480 facsimile
`
`
`
`Research and Science Manager
`
`5500W Blvd., Suite 202
`.,
`w l.
`‘.;..1‘ ,,
`g.“
`
`
`
`On Fri, 16 May 2008 09:36:04 0400 "
`Heym
`
`‘ c__g_n1> writes:
`
`
`The email I sent you yesterday don’t worry about the Structure function claims (just found them in the previous email you
`sent back in Feb), but I do need the studies associate with the claims.
`
`Look forward to hearing from you.
`
`m
`
`HIGHLY CONFIDENTIAL
`
`RA—015048
`
`

`

`
`
`
`
`=— CYANOTECH CORPORATION www.cyanotech.com
`
`Astaxanthin Measurement: Drastic Differences in
`
`Analytical Methods lead to Drastically different
`Results
`
`Natural astaxanthin derived from Haematococcus is offered by a few of nutrition
`supplement ingredient manufacturers in the United States. These companies offer a
`variety of extracted oleoresin astaxanthin products and stabilized astaxanthin powders.
`Unfortunately, the analysis methods for astaxanthin and reporting of the astaxanthin
`content are not standardized. This can lead to confusion in the market place and to
`consumer products with dosages under that of label claims.
`
`There are two general methods for analyzing the astaxanthin content of a product:
`Spectrophotometric analysis and High Pressure Liquid Chromatography (HPLC) analysis.
`The problem with the Spectrophotometric assay method is that, in addition to
`astaxanthin, other carotenoids such as lutein, canthaxanthin, and beta carotene are
`falsely included as astaxanthin in the results. Of even greater concern, chlorophyll and
`degradation products of astaxanthin without health benefits (such as astacene) will also
`be falsely included as astaxanthin. Astaxanthin concentrations determined by
`Spectrophotometric analyses can be overstated by 20% — 30%.
`(The results will
`definitely be overstated by a minimum of 18%) . Some manufacturers try to minimize
`this overstatement by reporting Spectrophotometric analyses results as “astaxanthin
`complex” to indicate that the analysis includes other carotenoids. While this is
`technically more correct, it does not provide the true level of astaxanthin in a product
`nor does it account for the possible presence of chlorophyll or degradation products of
`astaxanthin. Purchasing astaxanthin from a supplier that uses Spectrophotometric
`analysis means that you can't be sure if your astaxanthin is really astaxanthin; it will
`definitely have other carotenoids and it may very well have chlorophyll and the inert
`astacene as well.
`
`The most technically sound and accurate method for determining the astaxanthin
`content of a product is by HPLC analysis. Determination of the astaxanthin content of
`Haematococcus algae by Cyanotech Corporation’s HPLC analysis method has been
`accepted by the US Food and Drug Administration (21 CFR 73.185), the Canadian Food
`Inspection Agency (Registration Number 990535) and is used by Japan's official analysis
`agency, the Japan Food Research Laboratory (JFRL) . HPLC analysis uses column
`chromatography to separate carotenoids from one another and from degradation
`products of astaxanthin and chlorophyll to allow accurate measurement of only
`astaxanthin. There is, however, a complication: Haematococcus produces astaxanthin
`primarily as esters with fatty acids attached onto the terminal hydroxyl group(s).
`HPLC
`ISO 9001:2000 CERTIFIED QUALITY MANAGEMENT SYSTEM
`
`
`73-4460 Queen Kaahumanu Highway #102 - Kailua-Kona, Hawaii 96740 ~Phone:(808)326-1353
`Fax: (808) 329—3597 . e—mall: info@cyanotech.com
`
`RA—O15049
`
`

`

` ,.
`
`CYANOTECH CORPORATION
`
`www.cyanotech.com
`
`analysis of a simple solvent extract of such products would produce many ester—
`astaxanthin “peaks”. Further, pure mono—esters and di—esters of astaxanthin are not
`available to calibrate the analytical results.
`
`This problem is overcome by treating a simple solvent extract of an astaxanthin product
`with cholesterol esterase which gently saponifies the esters (or removes the fatty acids
`from the astaxanthin) yielding free astaxanthin. HPLC analysis of the saponified solvent
`yields only free astaxanthin peaks which are easily quantified using pure astaxanthin
`standards.
`
`In conclusion, an HPLC analysis method which employs a cholesterol esterase, as
`detailed in Cyanotech’s method should be used for accurate determination of the
`astaxanthin content of products. Astaxanthin content should be reported as per cent or
`total milligrams of free astaxanthin and not as “astaxanthin complex” which includes
`other carotenoids and possible degradation products.
`
`A detailed HPLC analysis protocol for astaxanthin analysis is available on the web at:
`http://www.cyanotech.com/pdfs/axbul20.pdf.
`
`ISO 9001:2000 CERTIFIED QUALITY MANAGEMENT SYSTEM
`
`73—4460 Queen Kaahumanu Highway #102 . Kailua-Kona, Hawaii 96740 uPhone:(808)326«1353
`Fax: (808) 329.3597 - evmail: info@cyanotech.com
`
`RA—015050
`
`

`

`Cyanotech’s titer measurements versus our competitor’s
`
`Our competitor’s titers are stated as astaxanthin complex, a figure which includes
`astaxanthin and related compounds, including some that may be breakdown products
`of astaxanthin without the same activity. True astaxanthin, including the various cis
`isomers (in the top half of this list) accounts for only about 85% of the total
`
`“astaxanthin complex” at best, which is shown below for our SCE7 product:
`
`TYPICAL CAROTENOID COMPOSITION
`% OF EXTRACT
`
`Astaxanthin, all-trans
`Astaxanthin, 9-cis
`Astaxanthin, 13-cis
`Astaxanthin, 15-cis
`Astaxanthin, di-cis
`
`Astacene
`
`Semi-Astacene
`Beta-Carotene
`Canthaxanthin
`Lutein
`
`9-91
`«as
`«me-
`duh.
`O“
`
`0&3
`
`0..
`0.35
`GAD
`0..-
`
`Consequently, their method of stating titer would overstate the actual astaxanthin
`content by at least a factor of 1/0.85= 1.176 or almost 18%. Also, Cyanotech includes
`an overage in its shipment of BioAstin to allow for stability losses. We do not know if
`they follow this practice. Samples from them in the past have shown no overage but
`in fact a deficiency.
`
`Lastly, but extremely important is their analytical method for testing their titer is by
`UV Spectrophotometric analysis. This method erroneously records such foreign
`compounds as astacene (a compound that astaxanthin breaks down into if oxidized
`without the antioxidant and anti-inflammatory properties of astaxanthin) and even
`chlorophyll as astaxanthin. Thus, if the algae meal is harvested a little early, the
`chlorophyll will inaccurately show up as astaxanthin using UV. Also, if the astaxanthin
`has begun to oxidize the astacene will erroneously show up as astaxanthin using this
`method. The only valid way to accurately measure astaxanthin is the HPLC method
`used by Cyanotech, which is also used by all independent labs that we know of in
`United States and Japan that test for astaxanthin content.
`
`HIGHLY CONFIDENTIAL
`
`RA—015051
`
`

`

`Cyanotech Corporation Logo
`Rebate Program
`
`Cyanotech is encouraging our valued customers to participate in our Logo
`Rebate Program. Manufacturers that print our logo on their product labels
`are entitled to an ongoing discount as follows:
`
`For logos displayed on the front panel
`For logos displayed on the side or back panel
`
`“-6 discount
`Cit/o discount
`
`In order to receive the discount, please complete the attached form. Also, a
`sample of your finished label must be sent to your Cyanotech Sales
`Representative, after which future invoices will reflect the discount.
`
`Lastly, participating manufacturers must use the discount received to
`promote their product containing BioAstin. Promotions of any nature are
`acceptable: Advertising, promotional literature, in store product
`demonstrations, etc.
`
`If you have any questions, please ask your Cyanotech Sales Representative
`or call, Bob Capelli, Vice President of Sales, at 808—334—9415.
`
`BioAstin Logo Rebate Program
`
`HIGHLY CONFIDENTIAL
`
`RA—015052
`
`

`

`Company Name:
`
`Date:
`
`Logo will be displayed (check one):
`
`Front of label (6% discount):
`
`Side or back oflabel (3% discount):
`
`Copy of label (check one):
`
`Enclosed:
`
`To Follow:
`
`Briefly describe in what way the promotional discount allowance will be
`used (example: print advertising):
`
`‘
`
`Please note: Discount will be reflected, through a price reduction on each
`invoice. No discount will be given without a completed form and the
`submission of a label. Manufacturers that discontinue use of the discount to
`
`promote the Cyanotech ingredient will have their rebates revoked.
`
`Logo Rebate Program Acceptance Form
`
`I agree that my company will use the rebate toward promoting products
`containing Cyanotech’s ingredient BioAstin.
`
`HIGHLY CONFlDENTlAL
`
`RA—015053
`
`

`

`I agree to forward a label electronically or by mail in order to receive my
`first discount.
`I will forward a finished bottle from the first production lot
`directly to Cyanotech.
`
`I agree to use BioAstin as the only source of astaxanthin in all products
`produced by my company.
`
`In order to continue receiving the discount, I agree to send Cyanotech one
`bottle every year of each of the products using BioAstin (if requested by
`Cyanotech).
`
`Signed:
`
`Title:
`
`Company Name:
`
`Date :
`
`HIGHLY CONFIDENTlAL
`
`RA—015054
`
`

`

` 
`
` 
`
` 
`
` 
`
` 
`
` 
`
`Exhibit B 
`
`Exhibit B
`
`

`

`
`
`‘
`
`Message
`
`From:
`Sent:
`To:
`
`Subject:
`
`Bob Capelii [bcapeliiéflcyanotecncom]
`4/30/2012 4:33:22 PM
`’
`W h,
`a
`,_
`
`RE: German chapters
`
`Attachments; BioAstinjlmgj/eggieflCertComp.pdf; BioAstin__4mg’lOiU“Veggie_Specs.pdf; BEoAstin Brochure 2010.pdf; BioAstEn 4
`page 2007 Brochurerpdf
`
`Lastfiy, attached piease find some aciditéonaé technical information.
`
`Best regards;
`
`Bob Capefli
`
`ch President Saies & Marketing
`
`Cyanotech Corporation
`
`Kailua~Kona, Hawaii, USA
`808.334.9415
`
`bcapelli@cyanotech.com
`
`
`x xi“
`
`
`From: : “It”
`..
`‘
`‘
`,
`Sent; Sunday, April 29, 2012 11:08 PM
`To: ”Bob Capeiii'
`Subject: RE: German chapters
`
`HE Mr CapeRE,
`
`i have a few questions for ymr:
`
`1. $3 the astaxan‘thin in your capguées esterified .7
`
`2. § flared there are two phases of deveioppement in the CifitLirE‘ of the seaweed, one green and one red ? corfid you teH
`
`me more that about ? D0 you have a document about the cuStura way ?
`3. Ni ather iechnécai informations ?
`
`4. Wou§d you be m Geneva for WTAFGOD ”F
`
`Thanks a Eot for year answar P
`
`Best regard.
`
`€ézrs’?5 852.5%.651‘5’s’ri‘fi13.
`
`
`
`HlGHLY CONFIDENT‘AL
`
`RA-023182
`
`

`

`
`
`C9 9?}
`
`
`
`
`De : Bob Capeéli [mafttmbcapelli@cyanotech.com]
`Envoyé : vendredé 26 aofit 2011 23:04
`A : 'm‘
`Cc : 'Ws‘
`Objet : RE: German chapters
`
`Aioha Mr.m
`
`We have had some incédents over the fast 4 years, that we have said the vegetarian getcaps where there was some minor
`
`W: We have worked with them to impmve this; for exampte, they are new parking in the Same size
`
`boxes but with less geitaps t0 ailow ”room for them to breath" which seems to have improved the situation.
`
`t’m not sure if éexpéaéned the differences between vegetarian capsuées and non~vegetarian to you, but I try to be open
`
`about 3%? things with Our customers, so it’s irnpnrtant that you know about some key differences. Of course, if yaur
`
`product fine or marketing pasétéon énvoéves on§y vegetarian precincts, 3 fufiy understand that you have n0 choice but to
`
`use this product; but in short, 1 §éke to make it dear to customers that there are some émper‘tant advantages to usmg the
`
`norwegetaréan capsuées:
`
`1. White we have had instances where there wamon the veggie caps, we have never seen this: cm the nan-
`veggie caps
`
`HEGHLY CONFIDENTEAL
`
`REA—023183
`
`

`

`2. There is currentiy only one manufacturer in the worfd that we’re aware of that offers a veggie softget that can
`maintain Stabriity of Astaxanthin sufficiently.
`in fact, we Searched far 7 years through excessive stabiiity testing
`at variaus manufacturers t0 find thés one. But the dr‘sadvantage is that their teed times for orders are usualiy 12
`m 14 weeks {vergug 4 ~ 6 weeks for non-rveggée caps}. ThES makes ordering for us very défficutt because we want
`to always have mvefitory, but atso want to set? product that is as fresh as passibter Sc: we’ve had game instances
`where we. were temporaréty But of stock 0n the veggies ever the fast 4 years, whereas with the nan-veggie caps
`this has dniy happened twice En 13 years.
`
`3.
`
`Lastiy, due to the cost of making the veggie caps and the fact that time manufacturer gives us no guarantee, we
`have to préce them at $10 per thousand mare than the rsen'veggée caps.
`
`idon’t know ET you’re in a positiorr to consider uséng non—veggie caps, but if you are you may want to mnséder it.
`Bike a Sampie to review, péease Bet us know
`
`if you’d
`
`50, to answer your questions, yes) we guarantee fuiéy ati of the products we eeiéwif they arrive in fess than optfimat
`conditiong, we offer a M credit.
`
`Best regards,
`
`Bob Capefii
`
`Vice President Safes 8: Marketing
`Cyanotech Corporation
`KaiiuaeKona, Hawaii, USA
`808.334.9415
`
`bcageuiflwgygnotechcom
`
`M4.
`.
`,
`From:
`Sent: Friday, August 26, 2011
`To: 'Bob Capeili‘
`'
`a». ._ .‘v ;. »
`CC:
`V.
`.
`-‘
`
`
`RE: German chapters
`
`Subject:
`
`Hi,
`
`
`
`i received your sampies and book; today‘
`
`The difference between the capsutes is qufiet big but it is totaily in our standards.
`
`The only thing 5 an: very scared of is that them”
`Maybe. it is because of the high temperature of the iast few days ?I What do you think ‘9
`
`if you can guaranty the capsuées wiiE arrived in perfect condétéons, then E woutd iike to order you Mfthem.
`
`Best regards,
`
`
`
`HtGHLY CONFIDENTEAL
`
`RA’023184
`
`

`

`
`
`
`
`
`
`nan-W; :W
`
`
`
`De : Bob Capem [Mozbcageitifiécyanotefiggm]
`Envoyé : vendredi, 19. aofit 2011 10:25
`AM
`Objet : German chapters
`
`Here are the chapters in German.
`
`Bob Capelii
`Vice President Safes & Marketing
`
`Cyanotech Corporation
`Kafiua—Kona, Hawaii, USA
`808.334.9415
`
`bcagelii@cyanotech.com
`
`
`
`
`
`
`
`
`
`
`
`Sent: Wednesday, August 17, 2011 10:39 PM
`To: 'Bob Capem'
`CC: lyin§9.n@;xangtewcfiucfiqm;W
`Subject: RE: Astaxanthin softgers
`
`
`
`H$GHLY CONFIDENTSAL
`
`Rik—023185
`
`

`

`Dear Mr. Capelll,
`
`Thank you for your answers. Please see my comments below.
`
`esoi:33.
`
`E 3:53;: 33:: :33:: 53:23:33 :33 three @333: ”$3333.33 3:333 oases: to
`
`
`
`g 33:33:33“: for as, 33 33:3 33:52? :33: 333:: :3 33:31:: two 3::£333.33 3333333 :3 3:33:23: am:
`
`:33 am“: 333:: £3: :3:533:3r :33:33:3 35:3 3:23: 333::33%};z2g‘”:3S toe £3,333,333 iyanoteca
`33:33:: €133:
`:Eizee :t::s::::me:s 33 3:32:35: to $333 3:23:33 5333::3: {me 39‘ 3:33:9333333333332 232:3 met ‘ we:3:33
`
`$.13a»; 32
`2:323:32 3:3-:3 £3333: 3333:3333 one: 3:333:3333333 33:33:33: am:or
`
`semen was :3: mweasw: 33:33 tor the 33::33:33: 33éts‘: 3:33 33:33: 3333333.
`lam notsurprised of your answer... Anyway, I agree to try with your capsules. But l would like to see the sample
`before. Especially concerning packaging problems that could occur. The address below is correct. Maybe you could
`
`send me en exampfe of you book in the same time ? l actualiy have a German-French translator in my team, if you are
`interested to translate {t in the future...
`
`
`:aa 353;};:33 33:33::25:33: :3: you.:fio: 3:232; review; :35:
`3*: us 33:33:: i“? 33:35:: Eiéze to regeEee
`
`
`
`:33;week: :53 33:: anr t::3:.333::33:3: €23.33: mittens at this 3933:3333 :33:~:.; :3:at we won id be Mom: ‘33 {2:333:53 3
`You: :2:
`3:03:35: ma 3:3: :3333iaoown: foes: 3:33;: :3 We:3:33:3333:33:: “to: 3:33 :33: we: to two you make. the 332:3: 3’333:33333%
`re» 3~11:
`3:35:23 you:3: 33:33:: your meme: 33:33:33 33:73:: 3:33: can 3:33:33:3: :2:3:o.:*::ei 33:33::
`
`What are you exactly thinking of ? This could be free books or advertising ?
`
`if you’d likempaymeht terms, o3ease compiete this and send it back'and
`l have also attached a credit: apphcatmn.
`we wif: forward at to our Corporate Controller for rev:ew
`ifnot3have to pay in advance ? 53:53:33.}:
`
`:3 they 33:: 3;:3: 53::3:: 33:33:33 3:53.: .333
`
`We can pay in advanced.
`
`One more question. What would be the expiration date of your capsules ?
`
`Best regards.
`
`
`
`HlGHLY CONFIDENTlAL
`
`RA-023186
`
`

`

`IW_ W ,
`
`
`
`
`
`
`
`Bob Capem
`Vice President Sales 81 Marketing
`
`Cyanotech Corporation
`KailuaiKona, Hawaii, USA
`308.334.9415
`
`bcageflificyanotechxom
`
`1,
`
`
`Sent: Sunday, August 14, 2011 9:34 PM
`To:W
`.-
`Cc 'Bob Capelii‘
`Subject: Astaxanthin sofigeis
`
`Dear Mr.“
`
`based On your request for the Astaxanthin vegée softgeIs, I have ciarified with Bob Cape?“ from Cyanotec in Hawaii the
`
`situatémn and he wéii be: pleased to $98 we; {he requested pmduct.
`
`HIGHLY CONFIDENTIAL
`
`RA—023187
`
`
`
`

`

`Piease contact him and keep me aiways in copy, so that i stay informed
`
`1 wouéd apor'ecrate very much, if this comboratéorr Can be kept confidentiat between the three of 115.
`
`Best regards
`
`W
`
`,,Ges_endet: Samstagl 13.,August 2011 03:29
`An:m‘
`Betreff: RE: Presentation DOK
`
`MW
`
`You can use me as the primary commit for" Mr‘Wand 1’13 introduca mm to Jeane. Jeane 81 E work as a team.
`
`Have a good weekend“
`
`Bob Cape-Hi
`
`Vice President Sales 8: Marketing
`Cyanotech Corporation
`
`Kaiiua-Kona, Hawaii, USA
`808.334.9415
`
`bcageflchyanotechxom
`
`
` From:
`-1er
`;
`.
`1
`Sent: Friday, August 12, 2011 5:04 AM
`To: bcap_e£%i§c13;yanotech.com
`Subject: WG: Presentation DOK
`
`Dear Bob,
`
`itaiked to Giant and he wmfid be harmy to buy from you
`
`Pfease indicate the person in your company that wouid be the contact for MLMand iwifi propose this person
`‘offéciatiy’ to him and then you can make him an offer,
`
`Thanks and best regards
`
`
`
`HIGHLY CONFEDENTEAL
`
`RA—023188
`
`

`

`
`Gesendet: Dienstag, 9. August 2011 11:35
`An: 'W'
`Betreff: RE: Presentation DOK
`
`Banjour NW
`
`.3’aimerais vous commander Wapauies d’astaxanthine 4mg. Maxis avam: quesiques questions :
`
`
`
`-
`
`~
`
`Quei est Ee délai de livraison '5’
`Quei est fie prix en USD ?
`thelie first $22 data de péremption ?
`
`D’avance mam de was :‘épanseg.
`
` JKC 3"?‘?€3.ié $581»,
`
`
`
`HIGHLY CONFIDENTIAL
`
`RA*023189
`
`
`
`

`

`
`
`BioAstin”
`
`
`
`
`
`NA TURAL AS TAMNTHIN
`
`mmm
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`RA-023190
`
`

`

`EiDAS'i‘ina otters superior antioxidant content to reduce inflammation throughout the body and support a variety
`of health henetits {or men and women of at? ages and lifestyles,
`
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`0 lnside-OutBeauty
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`' Men 811 Women concerned about sun exposure
`M &Wme dsl‘
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`0E h
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`
`c’mi[($90913mmsieéuye50manaemia);:riiiélrfi'hfl
`
`
`
`
`
`h Solvent~free supercritical C02 extraction
`
`9 Cultivated in a Biosecure Zone, certified free of
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`pesticides, herbicides with 100% potable drinking
`water from Hawaiian aquifers
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`e Guaranteed 6M0 Free and Non«irradiated
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`r iSO 9001:2000 and GMP Certified
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`r 100% pure and natural Astaxanthin. Don’t be
`fooled by products sold as "Astaxanthin Complex"
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`? Guaranteed stable oleoresin proven to retain
`
`Astaxanthincontentovertime
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`9 Proprietary analytical method exclusively accepted
`by the US FDA, and the governmental agencies of
`Japan, China, Korea and Canada
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`
`>
`
`k
`
`i%L
`
`W
`
`
`eapsulated tabiet grade beadiet gnoduc’rs as weii as cussom
`Cyanotech offers standardized oieoresin and Meme
`formulations designed to address a variety of health concerns.
`
`
`
`
`
`flyfififitflh
`
`teshlcom
`
`3:1 5653?? Queer: K55:
`
`
`
`V,,V___._WM
`
`RA~023191
`
`

`

`
`
`
`
`RA~0231 92
`
`

`

`
`
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