EXHIBIT NUMBER 10.8 Material Agreements Summaryof Municipal Solid Waste Concession Agreement, Land Lease Agreement & Supply ofTreated Sewage / Effluent Agreement
EXHIBIT NUMBER 10.8
Material Agreements
Summary of Municipal Solid Waste Concession Agreement, Land Lease Agreement &
Supply of Treated Sewage / Effluent Agreement
 | BIOCRUDE TECHNOLOGIES, INC. GOVERNMENT OF THE AUTONOMOUS ISLAND OF GRANDE COMORE (MORONI) |  |
| CONTRACT SUMMARY (CONFIDENTIAL) |
| Agreement Reference: | BIOCRUDE/MCMUC/AUTONOMOUS ISLAND OF GRANDE COMORE/MSW-LC/CA/2016/1 | Transaction Code: | BCT/MCMUC/MORONI/AUTONOMOUS ISLAND OF GRANDE COMORE/1 |
| Title of Agreement(s): | Municipal Solid Waste Concession Agreement, Land Lease Agreement & Supply of Treated Sewage / Effluent Agreement |
| Parties: | Commissariat à l’Environnement, à l’Urbanisme, au Développement Durable et à l’Energie, à l’Emploi, à l’Entreprenariat et à la Solidarité; Commissariat aux Finances, au Budget, à l’Economie, au Commerce Intérieur, à l’Industrie, au Plan, chargé de la promotion des Investissements; Commissariat à la Sécurité intérieure, à la Fonction Publique, à l’Administration des Collectivités Territoriales Décentralisées, à la Réforme Administrative, chargé de l’Information Gouvernorat de l’Île Autonome de la Grande Comore; (All referred to as “Government”) & BioCrude Technologies, Inc. (referred to as “BioCrude”) |
| Date: | January 11, 2016 | Documentation Signed: | Yes |
| Changes/Amendments: | None |
| Contract Object: | Develop, Construct, Operate, Maintain & Exploit an MSW to Energy Complex (MSW-Energy) in Moroni, Autonomous Island of Grande Comore via BOOT |
| Principal Obligations and Undertakings: | BioCrude: to Develop MSW to Energy Complex (MSW-Energy) in Moroni, Autonomous Island of Grande Comore via BOOT. Government: to supply: minimum guaranteed MSW (“Put or Pay”); Land, Treated Sewage Effluent; Grant the necessary Permits & Clearances; allow BioCrude to operate; Provide Sovereign Guarantees for the Execution of all Agreement Obligations. |
| Term/Duration: | 30 Years | Renewal option: | 30 Years |
| Termination Events, Procedures and Indemnities: | Yes; Party Default & Force Majeure; Procedures outlined in Agreements |
| Change of Control Clause: | Yes; to the Discretion of BioCrude Technologies, Inc. | Assignment Restrictions: | None |
| Governing Law: | Ontario, Canada | Dispute Resolution Jurisdiction: | Ontario, Canada |
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| Force majeure: | Yes; standard and satisfactory to both parties. | |||
| Change of law: | Not applicable; prescribed contract (Grandfathered). Law at signature prevails for duration of term and renewal option. | |||
| Land Lease: | Area of land: | 18 Acres | Lease Payment: | $1 US per 18 acres per year for the duration of term and option (no escalations), with compliant zoning and building by-laws for project. |
| Supply of Treated Effluent by Government STP: | Off-Take: | Up to 10,000,000 Litres/Day | Resource Payment by BioCrude: | 0.0000001 USD per kilolitre (kL) |
| Minimum Amount of Delivered MSW (Guaranteed; Put or Pay): | 700 TPD; Refer to Schedule 1. | Tipping Fee: | Refer to Schedule 1. | |
| Payment Terms: | Upon presentation of Invoice and offset from Revolving Letter of Credit (RLC); amount of escrowed RLC is for 12 months of future payment. | |||
| Guarantees: | Sovereign Guarantees provided by Government of Autonomous Island of Grande Comore for FULL EXECUTION of their obligations in Contracts. | |||
| Limitation on Liability: | Yes; only due to Force majeure. | |||
| Exclusion of Liability: | None | |||
| Liquidated Damages: | Yes; upon breach of execution of obligations from either party. | |||
| Penalties for Non-Performance: | None | |||
| Termination: | At end of term or option (to the discretion of BioCrude Technologies, Inc.), or if there is a breach from either party with no remedy related thereto (with penalty associations). | |||
| Intellectual Property Rights: | BioCrude Technologies, Inc. (FULL); No intellectual property transfer | |||
| Health, Safety & Env. Issues: | Obligation to bring installations into compliance at start-up, and sustain throughout operation. | |||
| Performance Bond: | None | Additional Insurance: |
| Company Point of Contact: | Mr. John Moukas | Program Management: |
| Other Contract Issues: | None |
| Associated Contracts: | Power Purchase Agreement (PPA) |
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Schedule I: Summary of Municipal Solid Waste Concession Agreement, Land Lease Agreement & Supply of Treated Sewage / Effluent Agreement (Rates Schedule)
| | BIOCRUDE TECHNOLOGIES, INC. GOVERNMENT OF THE AUTONOMOUS ISLAND OF GRANDE COMORE (MORONI) | |
| TIPPING FEE SCHEDULE FOR DURATION OF TERM & OPTION*** |
| Minimum Daily MSW Guarantee for Duration of Term**: | 700 Tonnes per Day (+/- 5%) | ||||
| Year from COD* | USD/T of MSW | Year from COD* | USD/T of MSW | Year from COD* | USD/T of MSW |
| 1 | 35.00 | 11 | 56.00 | 21 | 95.50 |
| 2 | 37.50 | 12 | 59.50 | 22 | 100.50 |
| 3 | 39.00 | 13 | 63.00 | 23 | 105.00 |
| 4 | 41.50 | 14 | 66.50 | 24 | 110.00 |
| 5 | 43.00 | 15 | 70.00 | 25 | 115.00 |
| 6 | 44.50 | 16 | 74.00 | 26 | 120.00 |
| 7 | 46.00 | 17 | 78.00 | 27 | 126.00 |
| 8 | 47.50 | 18 | 82.00 | 28 | 132.00 |
| 9 | 50.00 | 19 | 86.50 | 29 | 138.00 |
| 10 | 53.00 | 20 | 91.00 | 30 | 145.00 |
*Year commencement as of COD (Date of Commissioning) of projecting, time equals start)
** Year 1 to end of term and option, the Government Guarantees a minimum of 700 TPD
***Renewal term tipping fee indexation, utilizes the 30th year of the 1st term ($145.00) as the base for indexation. Indexing rate is 4.5 % per annum, thereafter, for the duration of the renewal option term
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Summary of Power Purchase Agreement (PPA)
| BIOCRUDE TECHNOLOGIES, INC. GOVERNMENT OF THE AUTONOMOUS ISLAND OF GRANDE COMORE (MORONI) | |
| CONTRACT SUMMARY CONFIDENTIAL |
| Agreement Reference: | BIOCRUDE/MCMUC/ AUTONOMOUS ISLAND OF GRANDE COMORE/MSW-LC/CA/2016/1 | Transaction Code: | BCT/MCMUC/MORONI/ AUTONOMOUS ISLAND OF GRANDE COMORE/1 |
| Title of Agreement(s): | POWER PURCHASE AGREEMENT (PPA) |
| Parties: | Le Gestion de l’Eau et de L'électricité Aux Comores (MA-MWE); (referred to as “Procurer”) BioCrude Technologies, Inc.; (referred to as “Vendor”) & Commissariat à l’Environnement, à l’Urbanisme, au Développement Durable et à l’Energie, à l’Emploi, à l’Entreprenariat et à la Solidarité; Commissariat aux Finances, au Budget, à l’Economie, au Commerce Intérieur, à l’Industrie, au Plan, chargé de la promotion des Investissements; Commissariat à la Sécurité intérieure, à la Fonction Publique, à l’Administration des Collectivités Territoriales Décentralisées, à la Réforme Administrative, chargé de l’Information Gouvernorat de l’Île Autonome de la Grande Comore; (All referred to as “Government”) |
| Date: | January 11, 2016 | Documentation Signed: | Yes |
| Changes/Amendments: | None | ||
| Contract Object: |
Resale of Procured Electricity under “Take or Pay” principle from BioCrude’s MSW-Energy Plant to the Autonomous Island of Grande Comore’s (Government) Power Corporation (MA-MWE). | ||
| Principal Obligations and Undertakings: | BioCrude: to procure electricity from its developed MSW-Energy Project, using MSW as feedstock. Government: to buy all available electricity (net of project self-consumption needs) from BioCrude. Provide Sovereign Guarantees & Revolving Letter of Credit (1 year’s Revenues) for the Execution of all Agreement Obligations. | ||
| Term/Duration: | 30 Years | Renewal option: | 30 Years |
| Termination Events, Procedures and Indemnities: | At end of term or option (to the discretion of BioCrude Technologies, Inc.), or if there is a breach from either party with no remedy related thereto (with penalty associations). | ||
| Change of Control Clause: | Yes; to the Discretion of BioCrude Technologies, Inc. | Assignment Restrictions: | None |
| Governing Law: | Ontario, Canada | Dispute Resolution Jurisdiction: | Ontario, Canada |
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| Electricity Act: | The Autonomous Island of Grande Comore Law n°__________________________ |
| Force majeure: | Yes; standard and satisfactory to both parties. |
| Change of law: | Not applicable; prescribed contract (Grandfathered). Law at signature prevails for duration of term and renewal option. |
| Resale of Electricity rates: | Refer to Schedule 1. |
| Payment Terms: | Upon presentation of Invoice and offset from Revolving Letter of Credit (RLC); amount of escrowed RLC is for 12 months of future payment (for duration of 30 year term). |
| Guarantees: | Sovereign Guarantees provided by Government of Autonomous Island of Grande Comore for FULL EXECUTION of their obligations in Contracts. |
| Limitation on Liability: | Yes; only due to Force majeure. |
| Exclusion of Liability: | None |
| Liquidated Damages: | Yes; upon breach of execution of obligations from either party. |
| Penalties for Non-Performance: | None |
| Termination: | At end of term or option (to the discretion of BioCrude Technologies, Inc.), or if there is a breach from either party with no remedy related thereto (with penalty associations). |
| Intellectual Property Rights: | BioCrude Technologies, Inc. (FULL); No intellectual property transfer |
| Health, Safety & Environmental Issues: | Obligation to bring installations into compliance at start-up, and sustain throughout operation. |
| Regulations regarding Electricity Act of Autonomous Island of Grande Comore: | Obligation to bring installations into compliance to the standards established by the Electricity Act of Autonomous Island of Grande Comore, at start-up, and sustain throughout operation. |
| Performance Bond: | None | Additional Insurance: |
| Company Point of Contact: | Mr. John Moukas | Program Management: |
| Other Contract Issues: | None |
| Associated Contracts: | MUNICIPAL SOLID WASTE CONCESSION AGREEMENT, LAND LEASE AGREEMENT & SUPPLY OF TREATED SEWAGE / EFFLUENT AGREEMENT |
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Schedule II: Summary of Power Purchase Agreement (PPA) (Rates Schedule)
| | BIOCRUDE TECHNOLOGIES, INC. GOVERNMENT OF THE AUTONOMOUS ISLAND OF GRANDE COMORE (MORONI) | |
| QUOTED TARIF FEE WITH ESCALATING INDEX SCHEDULE FOR DURATION OF TERM |
| Year from COD* | USD/kW-h | Year from COD* | USD/kW-h | Year from COD* | USD/kW-h |
| 1 | 0.1400 | 11 | 0.2500 | 21 | 0.4500 |
| 2 | 0.1475 | 12 | 0.2650 | 22 | 0.4700 |
| 3 | 0.1550 | 13 | 0.2800 | 23 | 0.4900 |
| 4 | 0.1650 | 14 | 0.2950 | 24 | 0.5100 |
| 5 | 0.1750 | 15 | 0.3100 | 25 | 0.5300 |
| 6 | 0.1850 | 16 | 0.3300 | 26 | 0.5500 |
| 7 | 0.1950 | 17 | 0.3500 | 27 | 0.5750 |
| 8 | 0.2050 | 18 | 0.3700 | 28 | 0.5900 |
| 9 | 0.2200 | 19 | 0.3900 | 29 | 0.6200 |
| 10 | 0.2350 | 20 | 0.4100 | 30 | 0.6500 |
*Year commencement as of COD (Date of Commissioning) of projecting, time equals start)
**Renewal term resale of electricity fee indexation, utilizes the 30th year of the 1st term ($0.65) as the base for indexation. Indexing rate is 4.5 % per annum, thereafter, for the duration of the renewal option term.
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