Company: BNRG
Filing Date: 2025-03-04
Form Type: 20-F
Source: 0001213900-25-020178
Chunk: 128

Company: Brenmiller Energy Ltd.
Filing Date: 2025-03-04
Form: 20-F
Item: Item 19
Chunk 128
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 allowing for a two-month running-in period.

F-32

Brenmiller Energy Ltd.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

NOTE 12 - COMMITMENTS(cont.):

  Lease agreements with customers (cont.):  

The operation of the TES unit, and the
required maintenance thereafter will be the responsibility of the Company which has also guaranteed efficiency ratios of the TES unit
during the service period that will be examined annually; subject to a contractual remedy period, any failure to meet certain efficiency
ratio may give the Hospital cause to terminate the agreement and claim compensation as determined in the agreement.

In consideration for the Services,
the Hospital will pay a total of approximately NIS11.9million (approximately - $3.3million), over the lease period as follows:
NIS2.1million in each of the first three years, NIS1.7million in the fourth year and NIS1.3million in each of the remaining three
years (approximately $0.6million, $0.45million and $0.35million, respectively) and will have the option to acquire the TES unit
after the conclusion of the7year service period for an agreed amount equal to NIS 1 million (approximately - $0.3million), and following
which the Hospital will also have the option to acquire annual maintenance services (including spare parts) from the Company. If the option
to acquire is not exercised, then the Company will be responsible to dismantle and vacate the TES unit from the Hospital premises.

The
Company is in the process of obtaining the regulatory permission to the construction of the TES unit on the hospital grounds.

  Steam service agreement  

On August 12, 2024 an agreement was
signed between the Company and a pet food manufacturer in Hungary (the customer”), whereby the Company will build and operate a
bGenTMTES unit on a piece of land that is adjacent to the customer’s factory, and provide agreed upon steam outputs
(as specified in the agreement) to the customer on exclusive basis (the service). The initial term of the service under the agreement
is for12years from commencement of operations, which can be extended for additional6years each time, if mutually agreed by the parties.
During the term of the service, the customer has undertaken to consume and pay for the entire amount of agreed heat outputs, paid on a
quarterly basis. The service fee will be calculated and charged to the customer in Euros