Document:

MEMORANDUM OF UNDERSTANDING

 

Dated the 15th day of
September, 2012

 

Between:

 

QUADRISE CANADA CORPORATION.,
a body corporate having its head office in Calgary, Alberta (hereinafter referred to as "Quadrise Canada")

 

- and -

 

Petrosonic
Energy Inc a US public company incorporated in the State of Nevada, (hereinafter referred to as "Petrosonic")

 

WHEREAS:

 

A.          Quadrise Canada has the rights to
a process concept for the production of a synthetic heavy hydrocarbon emulsion fuel oil (referred to as "SFOTM"),
which concept includes, without limitation, technology and know-how for the raw material choice (including the specifications of
the feedstock, water, chemicals and equipment which together produce SFOTM), processing, combustion knowledge, and the
specifications of finished SFOTM (hereinafter the "Technology").

 

B.          Petrosonic is an energy company registered
in the State of Nevada and is interested in developing projects located in Albania (the "Albanian Projects").

 

C.          Petrosonic and Quadrise Canada are
interested in establishing a business arrangement to manufacture emulsion fuels for the Albanian Projects.

 

D.          The parties hereto desire to provide
in this MOU for their respective rights and obligations in respect of the Albanian projects relating to (a) the grant by Quadrise
Canada to Petrosonic of a license to use and combust SFOTM, (b) the manufacture of SFOTM to support Petrosonic’s
business, (c) the delivery, operation and maintenance of an SMU (“Synthetic Fuel Manufacturing Unit”), as hereinafter
defined, and (d) other general principles that will govern the relationship between the parties.

 

NOW THEREFORE Quadrise Canada and
Petrosonic covenant and agree as follows:

 

		1.	GRANT OF LICENSE: Subject to the terms contained herein, Quadrise Canada hereby grants to
Petrosonic and its authorized agents the exclusive right to deploy and use the Technology and any improvements thereto for the
purpose of producing SFOTM for the Albanian Projects and potential future Projects to be defined and located in Iraq.
In addition Petrosonic and its authorised agents will be granted the same right in other jurisdictions it chooses to expand in
the future, subject to Quadrise Canada’s ability to do so.

 

    	 

    	 

    

 

		2.	FEEDSTOCK: Feedstock to the SMU which includes hydrocarbon material and water shall
be supplied by Petrosonic. Petrosonic retains ownership of the feedstock at all times. Feedstock supplied to SMU shall be within
the composition and capacity of the SMU, as determined by the QCC blend master.  

 

		3.	UNITS OF MEASUREMENT: The unit of measurement for hydrocarbons shall be barrels. Input to
the SMU shall be measured in barrels of hydrocarbon feedstock. Output of the SMU shall be measured in barrels of SFOTM

 

		4.	PROVISION OF MANUFACTURING PROCESS: Subject to the terms contained herein, Quadrise Canada
shall manufacture sufficient quantities of, within the capacity of Quadrise Canada’s installed equipment, as established
and approved by the parties from time to time. It will be agreed by the parties, prior to transporting and installing the equipment
that it will be adequate to product SFOTM to meet the requirements and specifications of the Albanian Projects.

 

		5.	CONTROL OF SFOTM PROCESS: The SFOTM process and operation of the SMU
shall be under the control of a blend master designated solely by Quadrise Canada. The blend master shall train local skilled labour
to operate the SFO for the long term projects, but for greater clarity, those trained individuals will always be under the direction
of the blend master designated by Quadrise Canada.

  

		6.	SFOTM MANUFACTURING UNIT: Quadrise Canada shall, on or before November 1, 2012,
deliver to the Albanian Project site ̧ at Petrosonic’ s sole cost and expense, a manufacturing unit capable of delivering
120 barrels of SFOTM per hour (the "SMU").. The SMU will consist of two skid units. The first unit
(i.e. production unit) is rated for Class 1 Division 2 under the electrical code of Alberta and will be suitable for installation
and operation in hazardous areas. The second unit (i.e. control unit), which is not classified, consists of motor controls and
an office, and must be located outside hazardous areas.

 

Quadrise Canada shall retain
ownership of the SMU and shall be responsible for its operation and maintenance. Until notified otherwise by Quadrise Canada, Mr.
Patrick Brunelle of Quadrise Canada will be responsible for overseeing the operation and maintenance of the SMU during the Albanian
Projects. In addition, Quadrise Canada will make the services of Mr. Patrick Brunelle, or other designates, available to Petrosonic
for the purpose of assisting Petrosonic with the development of the Albanian Projects. Quadrise Canada has sole discretion with
respect to designating the individual responsible for the operation and maintenance of the SMU.

 

		7.	TRANSPORTATION AND INSTALLATION OF THE SMU: The SMU will be shipped from Kimberlina, California
to Durres, Albania, as designated by Petrosonic. The installation and commissioning will be supervised by DenimoTech, (a subsidiary
of Quadrise Canada), staff. DenimoTech staff at Petrosonic’s request will also assist or install the Petrosonic equipment.
The cost of transportation shall be solely at Petrosonic’s expense. The cost of DenimoTech personel and other Quadrise Canada
personnel shall be solely of Quadrise Canada.

 

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		8.	ALBANIAN PROJECTS: Petrosonic and Quadrise Canada will use their reasonable best efforts
to commence burning SFOTM for the Albanian Projects by January 15, 2013. Except as provided herein, Petrosonic
shall be responsible for the capital and operating costs directly associated with the Albanian Projects. The Albanian Projects
shall operate for a testing period of up to three (3) consecutive months; during such period Petrosonic will use the Technology
to assess its commercial viability. In making such assessment Petrosonic may assess a number of parameters, including: performance
of combustion, and the quality of emissions to enable proper equipment design for long term projects.

 

		9.	TRIAL AND TESTING PERIOD: Each of the Albanian and potential future Iraq projects
and projects in other jurisdictions Petrosonic chooses to expand, may have a 3 month trial and testing period during which Colt
and Akzo Nobel royalties are not payable. A Quadrise Canada blend master should be on site to ensure proper start-up of equipment.
Albanian and potential Iraq projects operating for more than three (3) months are defined as long term projects and are subject
to payment terms defined herein.

 

		10.	COMMUNICATION AND KEY PERSONNEL: The key personnel for Quadrise Canada are:

 

		1.	Business matters – Alfred Fischer 403-537-1819

		2.	Technology, chemistry and equipment operations – Patrick Brunelle 403-537-1815

		3.	Accounting, payment and invoices – Cathy Connolly – 403-471-7123

 

The key personnel for Petrosonic
are:

		1.	Business matters – Art Agolli – 403-708-7869

		2.	Technology and Site operations - Art Agolli

		3.	Accounting, payment and invoices – Art Agolli

 

		11.	ACCESS; Subject to reasonable notice and first complying with Petrosonic’ s applicable
environment, health, safety and other policies, Quadrise Canada, its contractors, agents and invitees, (“Quadrise Canada
Personnel”) shall be permitted reasonable access, provided that such contractors, agents or invitees are accompanied at all
times by a representative of Quadrise Canada, to the SMU, the feedstock preparation facilities, SFOTM storage and handling
facilities, combustion facilities, flue gas treatment, by-product disposition facilities and any other facility impacted by use
of the SFOTM, during the Albanian Projects and Iraq Projects and other projects for the purpose of confirming design
and operating performance.

  

    	- 3 -

    	 

    

 

		12.	LONG TERM ALBANIAN PROJECTS: The parties acknowledge that in anticipation of a Long term
Project they have already discussed certain terms and that the terms for the Long Term Albanian Projects will include the following
general arrangements, roles, responsibilities and undertakings:

 

		(a)	Quadrise Canada will grant Petrosonic (and, if applicable its partners, co-ventures and agents
in respect of a Long Term Project) a license to use and combust SFOTM for the Long Term Project for the total consideration
of $10.00. This license will describe the roles and responsibilities of Quadrise Canada, Petrosonic, and, if applicable, Petrosonic’s
partners, co-ventures and agents.

 

		(b)	The parties will prepare a master service agreement between Petrosonic and Quadrise Canada that
outlines the terms and conditions under which Quadrise Canada will manufacture SFOTM for Petrosonic on a long term basis.
The master service agreement shall include a chemical supply agreement and delivery schedule.

 

		(c)	The license and master service agreement including the chemical supply agreement and schedule shall
be for a term of ten years, renewable on an evergreen basis for the life of the Long Term Project.

 

		(d)	During the Long term Projects; Quadrise Canada shall have similar rights as provided under the
short term Albanian Projects to: (i) receive and review information on a regular weekly basis, and (ii) access the specific project
site.

 

		(e)	Petrosonic will endeavour to engage, at commercially reasonably rates, the services of Worley Parsons,
for (i) the conceptual design (often referred to as the “Design Basis Memorandum”), design of the feedstock
preparation and supply facility, SFO fuel storage and handling, burners, steam generator, flue gas Desulphurization, reagent and
product disposition, and any other portion of the facility directly related to the implementation of the Technology in respect
of the Long Term Project, and (ii) for engineering, procurement, construction, and management services in respect of the implementation
of the Technology in respect of the Long Term Project. Petrosonic shall inform Quadrise Canada if they choose not to use Worley
Parsons and the reasons for the decision.

 

		(f)	Petrosonic will be responsible for supplying the feedstock, water, natural gas, electricity, and
all other utilities required for operation at its sole cost.

 

		(g)	Petrosonic will be responsible for obtaining all necessary regulatory and environmental approvals
and permits for the Trial and Testing periods and the Long Term Projects.

 

 

		(h)	Quadrise Canada will own all SMUs needed to supply the required amounts of SFOTM to
Petrosonic unless agreed otherwise with Petrosonic. Operating charges related to the SMUs are part of the quoted fixed monthly
charge. Long term operation of the SMUs on a client site is under the supervision of Quadrise Canada, but operating labour after
training are Petrosonic staff.

 

    	- 4 -

    	 

    

 

		(i)	Petrosonic will be responsible for all operating costs related to the combustion of SFOTM.

 

		(j)	Petrosonic shall be responsible to provide all local manpower to operate Quadrise Canada equipment.
The local manpower shall be trained by Quadrise Canada staff or DenimoTech staff (subsidiary owned by Quadrise Canada).

 

		(k)	If Petrosonic decides to expand beyond the capacity of existing Quadrise Canada equipment, it shall
consult with Quadrise Canada and provide sufficient lead time for Quadrise Canada to provide the additional equipment

 

		13.	QUADRISE CANADA FEES AND SFOTM COSTS: SFOTM manufacturing fee charged
by Quadrise Canada shall be based on monthly input barrels of hydrocarbons into SMU and manufactured into SFOTM. The
actual fee per barrel of SFOTM is dependent on the type of feedstock and water used which impacts the chemical concentration.
At 500 barrels per day average monthly input of hydrocarbons, it is estimated, based on clean water and bitumen type feedstock,
the cost will be approximately $9.00 barrel of hydrocarbon input, or $6.30 per barrel of SFOTM. If Petrosonic uses a
vacuum residue or asphaltenes feedstock, the charges will increase, due to a different chemical type and higher chemical concentrations
required. The volumes throughput will have an effect on the cost per barrel of SFOTM because the fixed cost component.
As the volume of the throughput increases above 1000 barrels per day, the portion of the fixed costs will decrease and the
amount of the fee on the barrel basis charged should be lower than $9.00 per barrel.

  

		14.	INVOICES, PAYMENT AND ACCOUNTING; Quadrise Canada' monthly charges for manufacturing SFOTM
will be based on $9.00 per barrel of hydrocarbon input, metered at the mill input flange. The $9.00 per barrel charge includes
mill rental, insurance, taxes, supplies, accounting, telephone, blend master and maintenance of QCC equipment, chemicals, Akzo
Nobel royalty, Worley Parsons royalty, and QCC overhead. Quadrise Canada shall provide Petrosonic with a monthly statement setting
out the details of hydrocarbon throughput. Payment is due within 30 days. The chemical costs shall be invoiced and paid in advance
of the chemicals being ordered. All other items shall be billed at the end of each month.

  

		15.	EXCLUSIVITY: Quadrise Canada shall not manufacture SFO for any other parties in Albania,
without the written permission of Petrosonic.

 

		16.	PREFERRED STATUS OF PETROSONIC: In consideration of Petrosonic being a pioneer in SFOTM
projects in Albania, Quadrise Canada is prepared to work with Petrosonic on terms acceptable to both parties for other applications
that may reduce costs or enhance the value of Petrosonic’ s Albanian projects. These applications may include SFOTM
fuelled diesel engines, transportation of hydrocarbons using SFOTM technology, and use of waste hydrocarbons in the
manufacture of SFOTM.

 

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		17.	REPLACEMENT AGREEMENTS: The parties hereto have executed this MOU to provide:

 

		(a)	in this MOU for their respective rights and obligations in respect of the Albanian Projects relating
to (a) the intent to grant by Quadrise Canada to Petrosonic a license to use and combust SFOTM, (b) the manufacture
of SFOTM to support Petrosonic’ s business, (c) the delivery, operation and maintenance of an SMU, and (d) other
general principles that will govern the relationship between the parties; and

 

		(b)	Certain general terms and principles to be reflected in any agreements that may be reached between
the parties in respect of the Long Term Projects.

 

Further, the
parties acknowledge that they each would like to replace this MOU with a more formal comprehensive agreement in respect of the
Albanian Projects, and to that end, the parties shall use their best efforts to meet and to work diligently to prepare and execute
such agreement. Quadrise Canada shall be responsible for circulating and revising various drafts of such agreement, which agreement
shall include a license to use the Technology to produce bitumen emulsion and all matters incidental thereto, and any other matters
deemed necessary by the parties hereto by December 31, 2012, or a date mutually agreed to. Such agreement shall reflect the terms
of this MOU and shall contain the terms and conditions necessary to effect the transaction between the parties. In this regard,
the parties shall cooperate and use best efforts to ensure such agreement(s) are completed, acting reasonably.

 

		18.	DECOMISSIONING AND RETURN OF SMU: Should Petrosonic no longer require the SMU or discontinue
paying the fees per throughput, Petrosonic shall ship the SMU to Calgary Alberta and pay for all costs associated with transportation
and decommissioning.

 

		19.	NON USE AND NON ANALYSIS AGREEMENTS: Petrosonic understands the exclusive and confidential
nature of the chemical mixtures used as part of the emulsification process and therefore shall not conduct an analysis of the chemicals
provided by Quadrise Canada to Petrosonic in respect of the Albanian Projects. In addition, the parties will enter into an agreement,
on such terms as the parties may agree, which pertains to the non-analysis of such chemicals in respect of the operations on the
Albanian Projects. Further, the parties will enter into an agreement, on such terms as the parties may agree, wherein Petrosonic
will confirm that it will not reverse engineer or otherwise attempt to discover the confidential aspects of SFOTM.

 

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		20.	INDUSTRY GRANTS: Petrosonic and Quadrise Canada shall assist each other in completing and
providing any documentation reasonably necessary to obtain grants or funding with respect to the Albanian business, provided however,
that such assistance shall not materially interfere with Petrosonic’ s business. The parties agree that where a grant or
funding relates to the Albanian Projects or any Long Term Project, such grant or funding shall be used for the Albanian Projects
or Long Term Project in a manner approved by both parties. All other grants or funding shall be for the account of the party receiving
same.

 

		21.	NO ADDITIONAL FEES: Where the parties determine to proceed with the Long Term Project, Quadrise
Canada agrees that Petrosonic shall not be subject to any additional license fees to use the Technology or use or combust SFOTM
other than in respect of the monthly manufacture of SFOTM, which fees will be determined in a manner consistent with
how such fees are determined in respect of the Albanian and Iraq Projects.

 

		22.	PETROSONIC'S CO-VENTURERS: Quadrise Canada acknowledges that Petrosonic may be involved
with third party co-venturers in its Albanian Projects and as a result such parties may request confidential information pertaining
to the Technology which Quadrise Canada has provided to Petrosonic. Quadrise Canada shall permit Petrosonic to distribute such
confidential information to those companies approved in writing by Quadrise Canada provided that such companies have first entered
into a confidentiality agreement, with Quadrise Canada, in form satisfactory to Quadrise Canada, acting reasonably.

  

		23.	FINANCING: Quadrise Canada acknowledges that Petrosonic may require financing for
its operation from time to time. As a result, such financing parties may request confidential information pertaining to the Technology
which Quadrise Canada has provided to Petrosonic. Quadrise Canada shall permit Petrosonic to distribute such confidential information
to those companies approved in writing by Quadrise Canada provided that such companies have first entered into a confidentiality
agreement, with Petrosonic, binding them to the same terms that Petrosonic is bound by. For greater clarity, the formulation of
the chemicals or the mill technology, will not be made available. At Petrosonic’ s cost, Quadrise Canada is prepared to assist
in such financing presentations and potential investor roadshows.

  

		24.	NO RESTRICTION: Nothing in this MOU shall restrict Quadrise Canada from entering into negotiations
or any agreement with any third party whatsoever including any negotiation or agreement pertaining to the Technology, with the
exception of projects in Albania and Iraq. Nothing in this MOU shall restrict Petrosonic from entering into negotiations or any
agreement with any third party whatsoever, provided however that Petrosonic shall not enter into negotiations or any agreement
with a third party to produce emulsified hydrocarbons in Albania, Iraq and other countries it chooses to expand to.

 

		25.	INTELLECTUAL PROPERTY: Quadrise Canada shall own any improvements to the Technology or SFOTM
obtained by using the Technology or SFOTM at the Albanian projects or future potential projects such as those contemplated
in Iraq.

 

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		26.	SALE OF PETROSONIC: In the event that Petrosonic sells all of its assets, or a portion of
its assets that include the Albanian projects including the Long Term projects, to an entity, which is proven to the satisfaction
of Petrosonic to be a competitor of Quadrise Canada in the area of supplying SFOTM or an equivalent fuel source to the
energy industry, the licenses granted hereunder shall terminate, and all Quadrise Canada equipment shall be returned to Calgary
Alberta, Canada at Petrosonic’ s sole cost.

 

		27.	NO PARTNERSHIP: The parties hereof are independent contractors and nothing herein contained
shall be construed to create a partnership between the parties. Except as expressly authorized by the terms and conditions hereof,
nothing herein shall be construed to authorize a party to act as the agent of the other party, or to permit any party to act on
behalf of or bind the other party.

 

		28.	INFORMATION AND PUBLICATIONS: The parties acknowledge that the Albanian Projects are expected
to generate information pertaining to the use of SFOTM and Technology on or associated with the Albanian and Iraq Projects
and agree, in respect of such information, that (except as may be required by law or regulation):

 

		(a)	except as set out herein, Petrosonic shall have the right to provide third parties access to such
information and Petrosonic shall not permit any third party to access or use in any way such information without Quadrise Canada'
written consent;

 

		(b)	Quadrise Canada shall have the right to purchase from Petrosonic for the total consideration of
ten dollars ($10.00) one copy of all information related to the Albanian and Iraq projects, such information includes, steam performance
and emissions operating data, engineering design information and operating data related to the installation and operations of the
SMU, storage, steam generator design and operation including burner details and performance data, and product disposition, including
but not limited to flue gas, flue gas treatment, steam production as it pertains to the SFOTM or the Technology, for
Quadrise Canada internal use; and

 

		(c)	Quadrise Canada shall have the right to publish, jointly or independently, technical papers, articles
or other academic materials relating to SFOTM or the Technology; such technical papers, articles or other academic materials
may contain information relating to the operations or performance of the Albanian Projects, provided that Petrosonic has consented
to the disclosure of such information, such consent not to be unreasonably withheld. If Petrosonic wishes to publish any technical
papers, articles or other academic materials relating to Albanian Projects, the same terms apply

  

		29.	REPLACEMENT AGREEMENTS: The parties hereto have executed this MOU to provide:

 

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		(a)	in this MOU for their respective rights and obligations in respect of the Albanian Projects relating
to (a) the grant by Quadrise Canada to Petrosonic of a license to use and combust SFOTM, (b) the manufacture of SFOTM
to support Petrosonic’ s business, (c) the delivery, operation and maintenance of an SMU, and (d) other general principles
that will govern the relationship between the parties; and

 

		(b)	Certain general terms and principles to be reflected in any agreements that may be reached between
the parties in respect of the Long Term Projects.

 

Further, the
parties acknowledge that they each would like to replace this MOU with a more formal comprehensive agreement in respect of the
Albanian Projects, and to that end, the parties shall use their best efforts to meet and to work diligently to prepare and execute
such agreement. Quadrise Canada shall be responsible for circulating and revising various drafts of such agreement, which agreement
shall include a license to use the Technology to produce bitumen emulsion and all matters incidental thereto, and any other matters
deemed necessary by the parties hereto by December 31, 2012, or a date mutually agreed to by the parties. Such agreement shall
reflect the terms of this MOU and shall contain the terms and conditions necessary to effect the transaction between the parties.
In this regard, the parties shall cooperate to ensure such agreement is completed without any unreasonable positions being taken.

 

		30.	OTHER RIGHTS;

 

		31.	LAWS: This MOU shall be governed by and construed in accordance with the laws of the Province
of Alberta and the laws of Canada applicable therein (without reference to conflicts of laws principles), and the courts of Alberta,
Canada shall have jurisdiction to entertain applications for injunctive relief and all other actions arising in connection with
this MOU.

 

		32.	CURRENCY: All monetary references in this MOU and the Replacement Agreements shall be Canadian
currency.

 

		33.	INSURANCE: During the term of Albanian Projects, Quadrise Canada shall obtain and maintain
insurance coverage of at least Five Million ($5,000,000) Dollars in general liability and One Million ($1,000,000) Dollars in vehicle
insurance.

  

ACCEPTED
BY:

 

	QUADRISE CANADA INC.	 	PETROSONIC ENERGY INC.
	 	 	 	 	 
	By: 	/s/ Alfred Fischer	 	By: 	/s/ Art Agolli
	 	 	 	 	 
	Date: 	Sept 15, 2012	 	Date: 	Sept 15, 2012

 

    	- 9 -Enterprise Agreement

 

This agreement is entered into in Tirana, as of 7 September
2012 and it is based on the part five, title two, chapter 7 and in continuation of the Civil Code of the Republic of Albania on
the Enterprise Agreement.

 

Article 1

Parties of the agreement

 

For the purpose of this agreement the parties herein shall be
defined as:

		a.	Orederer

		b.	Entreprenuer

 

The Orderer: The company “Petrosonic Albania Sh.a”,
with registered Office in Tirana, represented by Mr. Bendis Husi.

 

The Entrepreneur: Pavli Vallja Company, certified legal person
with registered Office in

Fier, represented by Mr. Pavli Vallja

 

Article 2

Agreement endorsement venue

 

This agreement is entered in Tirana, dated 7 September 2012.

 

Article 3

Object of agreement

 

An enterprise to entirely assemble the plan and the respective
lines, as well as the fire protection system of the plant dividing the asphaltene from the gross heavy fuel based on the technological
scheme of the company “Petrosonic Albania Sh.a”, attached in the Annex A of this agreement, and located in Mbrostar,
Fier.

 

Article 4

Realization Term of the object of agreement

 

8 weeks from the endorsement date of the agreement by the parties.

 

Article 5

Price

 

The price for the entire assembling according to the technological
scheme in the Annex A attached herein and the fire protection systems with foam solution, water freezing and cooling and all the
other components of the reservoir, is the total quotation according to the Annex B. The total price includes the materials and
VAT.

 

    	 

    	 

    

If the materials or special devices shall be purchased by the
Orderer, then these amounts shall be deducted from the final payment of the quotation in Annex B. The orderer shall inform the
entrepreneur in writing about the devices purchased, so that the orderer avoids their purchase again.

 

Article 6

Documentation

 

		1.	The offer signed by both parties shall be considered an annex of the agreement.

		2.	The enterprise agreement is signed by both parties.

		3.	The constructive and assembling project of the reservoir.

		4.	Schedule of the works signed by both parties.

		5.	Quotations of the works carried out on monthly basis.

		6.	Supply Offer with the entrepreneur’s materials.

		7.	In the event of observing inaccuracies in the technical documentation, for the purpose of constructive realization of the plant
and also its assembling, the entrepreneur should inform the orderer within 2 (two) days and also provide the respective technical
solutions. The entrepreneur cannot make any changes or purchases of the materials without the approval of the orderer.

		8.	If the clarification of the inaccuracies of the technical documentation requires an interruption of the manufacturing and assembling
works, then the terms of their realization shall be agreed between and by both parties and the new working schedule shall be signed
by both parties.

 

Article 7

Method of payment

 

The payments shall be executed on monthly basis upon the submission
and delivery of the quotation of the monthly works performed, according to the approved project and the VAT invoice within 10 (ten)
days of the successive month. For special cases due to working needs and upon the consent of both parties, advance payments may
be executed as the need may arise.

 

Article 8

Entrepreneur’s obligations

 

		-	Realization of the object of agreement in conformity with the technical requirements and conditions of the constructive project
and assembling of the plant and the lines entirely, the fire protection systems with foam solution, water freezing and cooling
and all the other components of the reservoir, mechanic and technological works according to the technological scheme in Annex
A, attached to this agreement;

		-	Realization of the object of agreement within the time limits defined in the realization schedule and approved by both parties
(Annex C of Agreement);

		-	Ensuring the means and instruments, materials and welding device, cranes, metallic frames, electrodes for welding, gas and
oxygen;

		-	Transport and insurance of its personnel (social and medical insurance and the technical security rules);

		-	Compile monthly quotations and the final quotation of the works performed and hand it over to the orderer within the term,
accompanied by the VAT invoice;

		-	Realize the object of agreement with a high technical quality;

		-	Repair the defects observed upon the specialized control of the welding lines, etc during the hydrostatic testing of the reservoir.

 

    	 

    	 

    

Article 9

Orderer’s obligations

 

		-	Ensure the electrical energy supply and drinking water supply;

		-	Ensure the protection of the object and its lighting for works carried out during the night;

		-	Effect the payment according to the article 7 of the agreement;

		-	Verify the works performed according to the quotations submitted by the entrepreneur;

		-	Undertake the specialized technical inspection of the works performed with regard to welding lines, assembling quality of the
lines within 2 (two) weeks from the confirmation date of the termination of the works for the realization of the project by the
entrepreneur.

		-	Upon the termination of the works and compilation of the final quotation, undertake the inspection of the works made and take
over the object.

		-	With regard to additions and changes in the project, he is bound in cooperation with the entrepreneur to compile a schedule
of the additional works accompanied by respective quotations;

		-	Upon the observation of the defects during the inspection, he requires the entrepreneur to make the repairs.

		-	Failure to make the repairs of the observed defects on due time constitutes an event of indemnity.

 

Article 10

Testing and acceptance

		-	Specialized testing of the object is carried out by the orderer at his expenses;

		-	The testing results are summarized documented in a form of acceptance. The observed defects resulting from the work of the
entrepreneur, and retesting shall be made at his expenses;

		-	Defects resulting from the works and manufacture of third parties, retesting shall be made at the expenses of the orderer.

 

Article 11

Guarantees

 

		-	The entrepreneur guarantees the security and high quality for the realization of the metallic construction through the welding
of the reservoir in particular and their assembling and lines of the plant in its entirety;

		-	The guarantee period for the normal operation of the object assembled within the technical requirements and conditions of the
project is 6 (six) months from the operation date.

		-	The defects arising during the period of the guarantee shall be repaired by the entrepreneur at his expenses.

 

    	 

    	 

    

Article 12

Competences of disputes’ settlement

 

The parties commit to solve their disputes in understanding.
If they fail to settle the disputes in understanding, both parties agree address to Tirana Court as the competent authority to
settle the conflict.

 

Article 13

Sanctions

 

The orderer: 

 

The realization time of the works schedule shall be postponed
for every day of delay in the materials’ supply.

 

The Entrepreneur: 

 

For every day of delay in handing over the object, from the
hand over term specified in the article 4, the Entrepreneur shall pay an indemnity equal to the extent of 2/1000 for every day
exceeding the defined term based on the overall value of the agreement according to the article 5.

 

Article 14

Miscellaneous

 

For any issue not expressly provided in the agreement, the parties
may refer to the Civil Code of the Republic of Albania. This agreement is compiled in two copies, one for each party.

 

	 	 	 
	The Entrepreneur	 	The Orderer
	/s/Pavli Vallja	 	Petrosonic Albania Sh.a
	Signature	 	/s/Art Agolli
	 	 	Authorized Represetative
	 	 	Signature
	 	 	 

 

 

    	 

    	 

    

 

ANNEX A

 

Schematic representation of the bitumen production plant in
Mbrostar

 

Prepared by Engineer V. KLLAPI

 

ANNEX B

QUOTATION 

 

OBJECT:Technological connections to the bitumen plant in
Mbrostar

Investor:The company _________________ sh.p.k Fier

 

	No.	Analysis	Denomination of works	Unit	Quantity 	Price	ALL Value	USD Value
	1.	 	FV Pipe ø60x4 mm ml 180	kg	1010	228	230280	 
	2.	 	FV Pipe ø89x4.50 mm ml 120	kg	1140	224	255360	 
	3.	 	FV Pipe ø76x4 mm ml 100	kg	840	224	188160	 
	4.	 	FV Pipe ø114x5 mm ml 180	kg	2430	224	544320	 
	5.	 	FV Pipe ø159x6 mm ml 45	kg	1065	224	238560	 
	6.	 	FV Pipe ø32x3 mm ml 75	kg	225	230	51750	 
	7.	 	FV Flange Dn 30-16 	piece	22	620	13640	 
	8.	 	FV Flange Dn 30-16 	piece	30	1350	40500	 
	9.	 	FV Flange Dn 50-16 	piece	38	1930	73340	 
	10.	 	FV Flange Dn 80-16 	piece	52	2880	149760	 
	11.	 	FV Flange Dn 100-16 	piece	8	3750	30000	 
	12.	 	FV Flange Dn 150-16 	piece	8	4320	34560	 
	13.	 	FV Vent Dn 20-16	piece	12	4800	57600	 
	14.	 	FV Vent Dn 50-25	piece	14	13800	13800	 
	15.	 	FV Taps Dn 50-16 Ansi	piece	18	17700	318600	 
	16.	 	FV Taps Dn 80-16 Ansi	piece	10	26080	260800	 
	17.	 	FV Taps Dn 100-16 Ansi	piece	25	31250	781250	 
	18.	 	FV Taps Dn 150-16 	piece	3	45600	136800	 
	19.	 	FV Elbow ø30	piece	15	1200	1200	 
	20.	 	FV Elbow ø60-5 mm	piece	22	1800	39600	 
	21.	 	FV Elbow ø89-5 mm	piece	30	3800	114000	 
	22.	 	FV Elbow ø114x6 mm	piece	40	5800	232000	 
	23.	 	FV Elbow ø150-7 mm	kg	8	7600	60800	 
	24.	 	FV construction profiles U240x8	kg	800	172	137600	 
	25.	 	FV profile 60x60x5 ml 35	kg	220	174	38280	 
	26.	 	FV profile 40x40x4 ml 60	kg	260	178	46280	 
	27.	 	FV Manometer 0-16 at	piece	10	3200	32000	 
	28.	 	FV bitumen pump 3”+ 4”, 4 bar	piece	5	650000	3250000	Ps
	29.	 	Reservoir thermal isolation 120 m3 30m3 	m2	310	3800	1178000	 
	30.	 	Painting the reservoirs and pipe	m2	750	440	330000	 
	31.	 	FV Bolts M12, 16, 20	kg	85	480	40800	 
	32.	 	FV security valve in reservoirs 	piece	10	75000	750000	Ps
	33.	 	FV centrifugal gasoline pump, P11 KW	piece	2	480000	960000	ps
	34.	 	FV measuring level in the reservoir	piece	7	88000	616000	 
	35.	 	FV electrical generator 30 kw	piece	1	2000000	2000000	 
	36.	 	FV electrical panel P 30 kw	piece	2	240000	480000	 
	37.	 	FV cable 4x10 mm	Ml	165	620	102300	 
	38.	 	FV cable 4x6 mm	Ml	160	320	51200	 
	39.	 	FV cable 4x5.5 mm	Ml	125	160	20000	 

 

 

    	 

    	 

    

 

	40.	 	FV electrical push button	piece	14	5800	81200	 
	41.	 	FV lights 500 w	piece	6	6800	40800	 
	42.	 	FV zinc pillars 9 m per light	piece	5	33000	165000	 
	43.	 	FV various washers	piece	110	300	33000	 
	44.	 	FV pump and reservoir grounding 	piece	16	1050	16800	 
	45.	 	FV construction sites in reservoirs	kg	800	186	148800	 
	46.	 	FV quantity gauge 0-1000 l, 3”+ 4”	m2	4	820000	3280000	Ps

	 	 	Amount 1	 	 	17664740	 	 	 		 
	 	 	Reserve fund	5% 	 	883237		 	 		 
	 	 	Amount 2	 	 	18547977		 	 	181843	 
	 	 	VAT	20% 	 	3709595		 	 		 
	 	 	Amount VAT included	 	 	22257572	 	 	 	218212	 

 

Prepared by:

Eng. V.Kllapi

Eng. V. Moço

 

 

    	 

    	 

    

 

QUOTATION

CONSTRUCTION OF THE FIRE EXTINGUISHING SYSTEM

OBJECT: Bitumen production plant in Mbrostar, Fier

 

	No.	Analysis	Denomination of works	Unit	Quantity 	Price	ALL Value	USD Value
	1.	 	FV foam tank S 2000 set	piece	1	650000	650000	`ps
	2.	 	FV water reservoir 50m3	piece	1	889800	889800	 
	3.	 	FV foam camera 2 +4” 1000l/min	piece	8	130000	1040000	ps
	4.	 	FV foam mixer 4”	piece	2	160000	320000	Ps
	5.	 	FV water hydrant 3”	piece	6	21000	126000	 
	6.	 	FV water pump, q1000l/min, p11kw	piece	1	350000	350000	Ps
	7.	 	FV Pipe ø114x5 mm ml 70	kg	950	220	209000	 
	8.	 	FV Pipe ø76x4 mm ml 80	kg	640	222	142080	 
	9.	 	FV Pipe ø60x4 mm ml 110	kg	605	222	134310	 
	10.	 	FV Taps with lever 3”	piece	5	18500	92500	 
	11.	 	FV Taps Dn 50-16 	piece	5	16200	81000	 
	12.	 	FV Taps Dn 100-10	piece	2	36200	72400	 
	13.	 	FV Taps Dn 80-16	piece	3	29000	87000	 
	14.	 	FV water spray device through pipes 2”	Set	2	8500	17000	 
	15.	 	Painting the devices and connections	m2	170	440	74800	 

	Amount 1	 	4285890	 	 
	Reserve fund	5%	214295	 	
	Amount 2	 	4500185	 	 
	VAT	20%	900037	 	
	Amount VAT included	 	5400221	 	36880

 

Prepared by:

Eng. V.Kllapi

 

    	 

    	 

    

  

Schematic presentation of the fire extinguishing system of the
bitumen plant in Mbrostar

 

Water from the line

Tanks

 

Legend

		1.	Water reservoir 30m2 piece 1

		2.	Water pump P=12kw H=50m, piece 1

		3.	Foam tank type S 2000, piece 1

		4.	Foam room 3” CS2, piece 8

		5.	Water hydrant 3”, piece 8

		6.	FV Pipe ø114x5 mm ml 70

		7.	FV Pipe ø76x4 mm ml 80

		8.	FV Pipe ø60.3x4 mm ml 100

		9.	Taps Dn 50-16, piece 8

		10.	Lever taps Dn 75-10, piece 8

		11.	Taps Dn 100-16, piece 3

		12.	Taps Dn 80-16, piece 3

  

Foam room assembling in the reservoirs

reservoir

foam room type CS 2

foam solution tube

 

Prepared by:

Eng. V.Kllapi

License no Gj0224/2

 

Schematic presentation of bitumen production plant in Mbrostar
– Fier

 

Water from the line

Tanks

 

Legend

		1.	Diesel reservoir 120m3 piece 2

		2.	Solvent reservoir 120m3 piece 2

		3.	Reservoir 20m3, gravity division, piece 3

		4.	Reservoir 120m3 products, piece 2

		5.	Reservoir 30m3, process, piece 1

		6.	Oil thermal generator

		7.	Heating exchange

		8.	Vibration device

		9.	Gear pump P=11kw, piece 4

		10.	Centrifugal pump P=11kw, piece 3

		11.	Condenser

 

    	 

    	 

    

 

 

		12.	FV Pipe ø114 mm ml 180

		13.	FV Pipe ø60.3x4 mm ml 170

		14.	FV Pipe ø32x3 mm ml 60

		15.	FV Pipe ø159x6 mm ml 28

		16.	Taps Api Dn 50- Pn16, piece 12

		17.	Taps Dn 50- Pn16, piece 16

		18.	Security valve in the reservoir Dn 4”, piece 7

		19.	Level indicator in the reservoir, piece 7

		20.	Quantity gauge 0-500 l/min, piece 6

		21.	Taps Dn 150- 16, piece 4

		22.	Taps Dn 25- Pn16, piece 12

		23.	Taps Dn 80- Pn16, piece 8

 

Prepared by:

Eng. V.Kllapi

 

 

 

 

 

    	 

    	 

    

 

Company: "Pavli Vallja"

Lagja “8 Shkurti”, Fier

NIPT: K63208401I

Object: Bitumen production plant in Mbrostar, Fier

Investor: “Petrosonic Sh.a”

Constructor: "Pavli Vallja"

 

PARTLY QUOTATION No. 1

September 2012

 

 

	No.	Description of works	Unit	Quantity 	Price/unit	ALL Value
	1.	FV Pipe ø114x5 mm	kg	1000	224	224000
	2.	FV Pipe ø89x4.5mm 	kg	300	224	67200
	3.	FV Construction profile “U” 240x8	kg	800	172	137600
	4.	FV Construction profile “L” 60x60x5	kg	220	174	38280
	5.	FV Construction profile “L” 40x40x4	kg	260	178	46280
	6.	FV Flange Dn 114-16 	piece	30	2880	86400
	7.	FV Flange Dn 89-16 	piece	30	1930	57900
	8.	FV Elbow ø114x6 mm	piece	20	5800	116000
	9.	FV Elbow ø89-5 mm	piece	10	3800	38000
	10.	FV Bolts M 12, 16, 20	kg	45.152	480	21673
	 	Amount	 	 	 	833333
	 	VAT 20%	 	 	 	166667
	 	Total amount	 	 	 	1000000

 

 

	The Contractor	 	The Investor
	 	 	 
	Pavli Vallja	 	“Petrosonic Sh.a”

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