Document:

ex10_4.htm

EXHIBIT 10.4

 

INTEGRATED RISK MANAGEMENT AND GRAIN ORIGINATION AGREEMENT

 

THIS RISK MANAGEMENT AND GRAIN ORIGINATION AGREEMENT (the "Agreement"), is made and entered into this 30th day of October, 2007, by and among Biofuel Advanced Research & Development, (BARD) ("Client"), a Pennsylvania limited liability company with its principal office located at 7910 Lawnsdale Avenue, Philadelphia, PA 191 I 1., FCSTONE, LLC ("FCStone ), an Iowa limited liability company with its principal office located at 2829 Westown Parkway, Suite 100, West Des Moines, Iowa 50266, and FGDI, L.L.C. ("FGDI"). a Delaware limited liability company having its principal office located at  19901 North Dixie Highway, Suite B, Bowling Green, Ohio 43402.

WHEREAS, Client is developing a soybean crushing production facility to be located at One Ben Fairless Drive, Fairiess Hills, PA (the "Plant") that will produce several products, including soybean oil, using soybeans as its feedstock;

WHEREAS, FCStone is in the business of providing risk management services pertaining to commodity origination and marketing and related services; and

WHEREAS. FGDI is in the business of purchasing and selling soybeans into commercial channels and can originate the quantity and quality of soybeans required by Client for delivery to the Plant.

NOW, THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt of which is hereby acknowledged, the parties agree as follows:

 

1. Scope of Services. FGDI and FCStone shall provide the risk management, grain origination and related services as described in Exhibit A and incorporated herein, under terms and conditions as hereinafter further provided.

 

2. Risk Management Services by FCStone. FCStone shall, during the term hereof, provide consulting services to Client in the implementation of a risk management program for Client. The services to be provided by FCStone arc set forth in the portions of Exhibit A attached hereto which refer to FCStone. In connection therewith (he parties may agree to enter into certain hedging or other futures agreements and transactions from time to time. In such event all costs of such hedging, including margin calls and commissions, shall be the responsibility of Client. All such futures or contracts shall be executed on behalf of, and transacted in the name of, Client upon specific approval and direction by a Client Representative. All such transactions shall be subject to, and governed by. the applicable account agreements between Client and FCStone or other applicable party. Transaction fees, commissions and other charges shall be paid by Client as agreed from time to time and shall be in addition to the FCStone Service Fee set forth in Section 4(a).

 

3. Soybeans Origination by FGDI. FGDI agrees to supply to Client and deliver to the Plant the soybeans required for it to maintain the normal production schedule of the Plant, unless prevented from doing so by circumstances of supply or logistics reasonably beyond its control.    FCStone and FGDI shall work together to seek to obtain the lowest possible total soybeans cost for Client under prevailing market conditions consistent with prudent risk management practices. Client shall purchase from FGDI and FGDI shall supply to Client, all of the soybeans required for the operation of the Plant during the term hereof. Such origination shall be on the terms herein provided.

  

1

 

 

Except as provided to the contrary in any cash forward contract or for sales out of "FGDI" inventory in storage as herein provided, and unless otherwise agreed by the parties in writing or by oral agreement confirmed in writing, soybeans shall be sold by FGDI to Client, delivered at the Plant, at a price per bushel that shall be equal to FGDl's actual cost of origination and delivery, plus the FGDI Service Fee set forth in Section 4(b). FGDl's actual cost shall be the amount actually paid by FGDI to its supplier for the soybeans plus (1) actual freight, demurrage and other transportation cost is incurred by FGDI, (2) soybeans taxes, excise, or other transaction taxes, if any, imposed on the acquisition or sale of the soybeans, and (3) any other direct cost actually incurred by FGDI and paid in obtaining and delivering the soybeans. Client sir ill separately pay all rail car lease expenses, and such expenses shall not be included in item (\) above to the extent paid by Client.

4. Fees.

 

(a) FCStone. Client shall pay FCStane a service fee for its services hereunder of $120,000 per year, which is $0.002 per gallon of the anticipated annual Plant nameplaie capacity of 60,000,000 gallons per year (the "FCStom- Service Fee"). The FCStone Service Fee shall be payable in advance in equal monthly installments of $10,000 per month, payable on the first business day of each month after the Effective Date. In addition to such fees, as noted in Section 2. Client shall also pay any transaction commissions, fees, services charges or other charges arising from options, futures or other risk management transactions executed through FCStone, its affiliates, or others in accordance with their applicable schedule- of rates except that the rate for exchange traded furores and options transactions shall be $15.00 per round turn, plus applicable exchange fees and National Futures Association ("NFA") fees.

 

(b) FGDI.  Client shall pay FGDI a fee - if $0,045 per bushel for origination services hereunder on each bushel of soybeans delivered by unit grain train or barge or vessel to the Plant for tf •:• first tlr;.*e years after the Effective Dale as defined in Sec.ion 17(a) ("Regular Service Fee"). Soybeans originated by truck or in deliveries of less than a full unit train snail be charged a special service fee of $0,065 per bushel ("Special Service Fee'}, commensurate with the additional services to be provided. Together these fee:- are referred to herein as the "FGDI Service Fee'*. Both the Regular Service Fee and the Special Service Fee shall be increased prospectively as of the anniversary date of the Effective Date as deilncd in Section 17(a), for each renewal year after .he initial three year term, by adding $0,005 per bushel to the rates stale:! above f< • each year after the initial three year term. Client will pay FGDI a minimum annual service fee adjustment (the "FGDI Minimum Annual Fee Adjustment"), if Client purchases less than seventy five percent (75%) of the projec;.-d annual bushel requirements (the "Minimum Purchase Amount") of the Pluit, which is agreed to be sixty six million (66,000,000) bushels per year, during any year of the term hereof after the Effective Date. FGDI will adjust the Minimum Purchase Amount after three (3). 

 

FGDI, L.L.C.

 

  

2

  

Assignment of Contract

FOR VALUE RECEIVED, Biofuel Advance Research & Development, LLC (BARD). (“Assignor”) hereby assigns and otherwise transfers (“assigns”) to Bard Holding, INC. (“Assignee”) all rights, title and interest held by Assignor in and to the contract described as follows:

Contract dated November 5th, 2007, between FCStone, LLC. & FGDI, LLC. and Biofuel Advance Research & Development, LLC (BARD) and concerning for – FCStone, LLC providing risk management services pertaining to commodity origination and marketing and related services and FGDI, LLC agrees to supply and deliver soybeans required & maintain normal production schedule of the plant.

Assignor warrants and represents that said contract is in full force and effect and is fully assignable.  Assignor further warrants that it has the full right and authority to transfer said contract and that contract rights herein transferred are free of lien, encumbrance or adverse claim.  Said contract has not been modified and remains on the terms contained therein.

Assignee hereby assumes and agrees to perform all remaining and obligations of Assignor under the contract and agrees to indemnify and hold Assignor harmless from any claim or demand resulting from non-performance by Assignee.  Assignee shall be entitled to all monies remaining to be paid under the contract, which rights are also assigned hereunder.

This Assignment shall become effective as of the date last executed and shall be binding upon and inure to the benefit of the parties, their successors and assigns.

 

 

	 	 	 	 
	

Dated: ___12/01/2009______

	
 

	/s/Surajit Khanna	 
	 	 	Surajit Khanna, Managing Member	 
	 	 	
Biofuel Advance Research & Development (BARD), LLC Assignor

	 
	 	 	 	 
	 	 	 	 
	 	 	/s/Howard L. Bobb	 
	
Dated: ___12/01/2009______

	 	Howard L. Bobb, President	 
	 	 	

Bard Holding, Inc. Assignee

	 
	 	 	 	 
	 	 	 	 

 

 

  

3ex10_5.htm

EXHIBIT 10.5

 

	 	 

	
 

 

	April 15, 2009

 

 

Dr. Surajiet Khanna

Chairman

BARD, LLC

1167 Bridge Street

Philadelphia, PA 19124

 

SUBJECT:    BOP EPC Services - KIPC Biodiesel Site

 

Dear Dr. Khanna:

 

As per our meeting on April 9th, 2009 at your office in Philadelphia, PA, Tetra Tech EC, Inc. (Tetra Tech) is pleased to present to Biofuels Advanced Research Development, LCC (BARD), our intent to provide Balance of Plant (BOP) Engineer, Procure and Construct (EPC) services for the Keystone Industrial Port Complex (KIPC) - Biodiesel Plant. These services can be provided upon issuance of a contract with a mutually agreeable defined scope of services, price, schedule and terms and conditions. Please be aware that this letter is not a guarantee of our services and not binding on either party

 

As you are aware, Tetra Tech is one of the premier turnkey providers of services to renewable energy projects (wind, biofuels, etc.) for energy companies and developers nationwide. Tetra Tech has multidisciplinary staff in-house to provide the full suite of engineering and consulting services, and the resources to serve as the general contractor for the construction effort or as construction manager to BARD.

 

We have the proven ability to execute projects anywhere in the US and have the breath and depth of resources to work on multiple concurrent projects such as will be encountered on your project due to the accelerated schedule. This will dictate that the design effort will have to occur simultaneously with construction.

 

Please contact me at any time for clarification on any element of this submittal. I can be reached by phone at 215-702-4001, or via email at Jeff.otto@tteci.com. Thank you for giving us this opportunity and we look forward to your favorable response.

 

Attached to this Letter of Intent is Tetra Tech's understanding of the services to be provided in the role of BOP EPC Contractor.

 

 

Sincerely, 

Jeffrey Otto, P.E. 

Operations Manager

 

	cc:	Craig Mackay
	 	Dave DiCesare, P.E.
	 	Carl Tippmann, P.E. 
	 	Shekar Shanmugam

 

 

	 	
820Town Center Drive, Suite 100 

Bucks Town Corporate Campus, Langhorne, PA 19047 

Tel 215.702.4000   Fax   215.702.4045 

www.tteci.com

 

 

 

Dr. Surajiet Khanna 

Page 2

 

It is Tetra Tech's understanding that BARD is building the first full composite biodiesel plant in the northeast region of the United States. The facility will combine a 60M gallon biodiesel production plant and a 66M gallon soy solvent extraction plant. Soybeans will be used first and later in time algae will be added as part of the multi feedstock technology.

 

Based on conversations and materials provided by BARD representatives as well as Tetra Tech's experience on biofuels projects we anticipate the following services would need to be provided by Tetra Tech should a contract be agreed to between Tetra Tech and BARD.

 

SCOPE OF WORK

 

•  Front End Engineering - Engineering Management Services

 

Tetra Tech will provide Consultancy Services for the entire project. These activities include coordinating all front-end engineering and regulatory related activities including:

 

	    o	Land and Regulatory Services
	    o	Utility Coordination
	    o	Permitting Finalization
	    o	Project Reviews Through Implementation
	    o	
Reviewing basic engineering packages as received from technology suppliers covering plant data, utility requirements, available resources and other such tasks.

 

•      Discrete Detailed Engineering Design Tasks

 

Tetra Tech will provide detailed engineering design services for all necessary aspects of the project. This includes but is not limited to the following:

 

	    o	Architectural / Civil / Structural
	    o	Process / Mechanical
	    o	Electrical
	    o	Instrumentation and Controls
	    o	Fire Protection

 

•      Construction Services

 

Tetra Tech will provide General Contracting Services for BARD, not just Construction Management Services, to bring the project from design phase through completion. This means that we will procure, select, negotiate with and award contracts and purchase orders, and administer, including paying the subcontractors and suppliers. The subcontractors and suppliers will be contracting directly with Tetra Tech, which will reduce the administrative burden on BARD.

 

Tetra Tech will provide a full time person on site to coordinate the work activities minimizing the need for BARD's involvement. Tetra Tech will manage procurements to ensure the project is kept on schedule and perform QA inspections of vendor facilities to make sure the products are suitable for their intended use. In addition to managing the project's schedule and budget, the Tetra Tech Construction Project Manager will perform frequent site visits and client meetings.

 

 

 

 

Dr. Surajiet Khanna 

Page 3

 

If desired, Tetra Tech would also act as Construction Manager to BARD if that is BARD's preference.

 

This effort also includes preparation and issuance of bid packages for equipment and materials, and specialty subcontractors, scheduling, construction reviews and various tasks centered on the following topics:

 

	    o	Civil and Site Development o   Building for 60M Expandable Layout o   Rail Car Loading and Unloading o  Tankage
	    o	Pumps, Piping, and Transfer Systems o   Miscellaneous Equipment o   Silos and Material Storage o   Instrumentation and 
	    o	Control    Electrical

 

Our recommended approach would be procure and manage all equipment and contracts directly. TtEC would direct procure the major equipment, thereby eliminating subcontractor markup.

 

Whenever possible TtEC will procure off-the shelf equipment for schedule and cost considerations. In selecting vendors/equipment we will adhere to the criteria of Reparability, Operability and Maintainability ('ROM') of vendors chosen and equipment procured.

 

•   Commissioning and Warranty Services

 

Tetra Tech will provide Commissioning and Warranty Services for the biodiesel plant. This includes assistance in Pre-commissioning and Commissioning of the Plant.

 

SCHEDULE

 

Tetra Tech will also provide detailed Project Scheduling services to identify milestone events. Tetra Tech is aware that BARD intends to have this biodiesel facility on-line by January 2010 as indicated in previous meetings with Tetra Tech and BARD. Tetra Tech has the capabilities to support BARD in all aspects of this project to help achieve this goal.

 

COST/CONTRACT

 

Tetra Tech can enter in a variety of contract types with BARD, based on what both parties feel is best. Lump Sum, Time and Materials and Cost Plus are a few options. For Construction Management/General Contracting Services, we have the following options: lump sum, cost + fixed fee, guaranteed maximum and guaranteed maximum + shared savings

 

CONCLUSION

 

Tetra Tech is eager to begin working for BARD to help them reach their Project goals and objectives.

 

 

 

 

 

 

	  

 

TECHNO COMMERCIAL AGREEMENT

 

 

 

BETWEEN

 

 

 

TECH-START AUTOMATION CONSULTING (INDIA) PVT.LTD

Sri Sampada HiTech, Plot No. 2 & 4 

Flat No. 302, Kavuri Hills, Madhapur 

HYDERABAD - 500 081 (India)

 

 

AND

 

 

CHEMICAL CONSTRUCTION INTERNATIONAL (P) LTD.

205 Kusal Bazar, 32-33, Nehru Place 

New Delhi-110 019 (India)

 

 

for

 

BIOFUEL ADVANCE RESEARCH & DEVELOPMENT 

250000 TPY (750 TPD) 

SOYA OIL BASED 

BIO DIESEL PRODUCTION PLANT

 

 

 

Dated: 14 August 2007

 

 

 

 

 

 

  

  

  

 

Table of Contents

 

	PARTIES 	 	3
	RECITALS     	 	3
	1	Definitions  	3
	 	1.1 	Site 	4
	 	1.2 	Plant   	4
	 	1.3 	Basic Engineering   	4
	 	1.4 	Contract coming in to Force  	4
	 	1.5   	Site Project Manager 	4
	 	1.6 	Consignee    	4
	2	Scope of Supply and Service      	4
	3	 	Payments     	6
	4	 	Inspection  	6
	5	 	CCI's Responsibilities   	7
	6	 	Performance Guarantees  	8
	7	 	BUYER"s Responsibilities    	8
	8	 	Warranty  	9
	9	 	Maintenance Contract   	10
	10	 	Transferability of the Contract    	10
	11	 	Penalty for Delay  	10
	12	 	Patent Indemnification 	10
	13	 	Force Majeure   	10
	14	 	arbitration   	11
	15	 	General Provisions  	11
	 	 
	ANNEXURE - A    	13
	 	 
	 	EQUIPMENT LIST      	13
	 	SECTION-1 	15
	 	 	PREPARATORY SECTION      	15
	 	SECTION-II     	21
	 	 	TRANSESTERIFICA HON SECTION     	21
	 	SECTION-III  	32
	 	 	P HARM A GLYCEROL SECTION.   	32
	 	SECTION-IV     	37
	 	 	BA TTERY LIMITS FOR THE BIO-DIESEL PLANT.  	37
	 	 
	ANNEXURE-B       	38
	 	 
	 	 	ENGINEERING SERVICES     	38
	 	 
	ANNEXURE-C    	42
	 	 
	 	 	BUYER SCOPE OF SUPPLY    	42
	 	 
	ANNEXURE-D        	48
	 	 
	 	TECHNICAL PERFORMANCE GUARANTEE    	48
	 	 	Capacities     	50
	 	 	Product Qualities 	51
	 	 	Consumption of Utilities & Chemicals  	52
	 	 
	ANNEXURE-E....         	53
	 	 
	 	FEEDSTOCK AND CHEMICAL SPECIFICATIONS  	53
	 	 	Soya Oil  	54
	 	 	Methanol  	54
	 	 	Phosphoric Acid 1700 Tech   	54
	 	 	Sodium Hydroxide Liquor 100 Tw (47%)       	55
	 	 	Activated Carbon  	55
	 	 	Hydrochloric Acid (HCI)     	55
	 	 	Sodium Methylene, 30% (BASF DEGUSSA)    	55
	 	 
	ANNEXURE-F       	56
	 	 
	 	SUPERVISORY SERVICES     	56

 

 

Techno-Commercial Agreement 750 TPD Bio-Diesel Plant Status: Confidential

2

  

 

A G R E E M E N T

 

This AGREEMENT is made and signed on this day 14 August, 2007 between: 

 

PARTIES

 

M/s. CHEMICAL CONSTRUCTION INTERNATIONAL (P) LIMITED, a company incorporated under the companies act of 1956, having its registered office at 205, Kusal Bazar, 32-33, Nehru Place, New Delhi - 110 019, India, represented by Mr. O.P. Nambiar, Executive Director of M/s. CHEMICAL CONSTRUCTION INTERNATIONAL (P) LIMITED, which expression shall unless repugnant to the context, mean and include its successors and permitted assignees, herein after called as the CCI.

 

and

 

M/s. TECH-START AUTOMATION CONSULTING (INDIA) PVT.LTD a company incorporated under the companies act of 1956. having its Registered Office at Sri Sampada HiTech, Plot No. 2 & 4, Flat No. 302, Kavuri Hills, Madhapur, Hyderabad - 500 081, Andhra Pradesh, India represented by Mr. Kapil Bhargava, Director of M/s. TECH-START AUTOMATION CONSULTING (INDIA) PVT.LTD, which expression shall unless repugnant to the context, mean and include its successors and permitted assignees, here in after called as the BUYER.

Date     :       14 August 2007

RECITALS

 

	
    A.   

	
CCI is a Turnkey project engineering firm having technical collaboration with M/s. LURGI AG based at Lurgiallee 5, 60295 Frankfurt/M, Germany (referred to as LURGI) who have the experience and expertise in the design and construction of-

 

A complete 750 TPD (250,000 TPY) Soya Oil based commercial scale Bio-diesel production plant as per Annexure "A" enclosed herewith.

 

	
    B.   

	
The BUYER desires to construct such plants for BIOFUEL ADVANCE RESEARCH & DEVELOPMENT to be located at

 

Keystone Industrial Port Complex

One Ben Fairless Drive 

Fairless Hills. PA 19030 

USA

 

Techno-Commercial Agreement 750 TPD Bio-Diesel Plant Status: Confidential

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THEREFORE. THE PARTIES HERETO AGREE AS FOLLOWS:

 

1. Definitions

 

The following terms shall have the meaning indicated below unless contrary to the context.

	
1.1

	
Site

 

"Site" shall mean the proposed location for the construction of 750 TPD (250,000 TPY) Soya Oil based commercial scale Bio-diesel production plant to be supplied by CCI based on the Basic Engineering from LURGI for the BUYER pursuant to the terms of this Agreement.

 

	
1.2

	
Plan

 

"PLANT" shall mean certain plant and machinery specified herein in Annexure "A" with BASIC ENGINEERING by LURGI and manufactured and supplied by CCI to the BUYER for the production BIO-DIESEL and Pharma Grade GLYCERIN.

 

	
1.3   

	
Basic Engineering

 

The designs, drawings and process write-up are given by LURGI AG to CCI for this specific project, based on which CCI shall undertake the manufacture and procurement of the hardware for the above plant.

       

	
1.4  

	
Contract coming in to Force

 

Date of '"Contract coming into Force" will mean the date of receipt of first advance payment, as per Clause 3.4 (a) of this Agreement, to CCI by the BUYER.

        

	
1.5  

	
Site Project Manager

 

Shall mean the person nominated by CCI from time to time for matters regarding various project site related activities under this contract.

        

	
1.6  

	
Consignee

 

The name of the firm of the BUYER so designated

 

2. Scope of Supply and Service

 

	
2.1

	
CCI will supply the plant as per Annexure "A" and shall provide those additional engineering services set forth in Annexure "B" under the heading "Engineering Services" with the intent and purpose of providing the BUYER with the complete Plant which shall be capable of meeting the Performance Guarantees specified on Annexure "D".

 

Techno-Commercial Agreement 750 TPD Bio-Diesel Plant Status: Confidential

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CCI also undertakes to supply those additional equipments not mentioned in Annexure "A", but within Battery Limits, but found necessary to ensure performance of the plants.

 

CCI & LURGI also reserves the right to supply modified designs of items to ensure efficient plant performance subject to no extra money.

 

	
2.2  

	CCI shall also perform the following additional services:

     

	
(a)  

	
On site supervision of the assembly and construction of the Plant.

 

	
(b)  

	
Consultation regarding the Plant by telephone, mail or facsimile transmission.

 

	
(c)  

	Pre-commissioning and testing of the Plant.

 

	
(d)  

	Successful Commissioning of the Plant.

 

	
(e)  

	
Training of the BUYER's personnel in the operation and maintenance of the Plant during commissioning and startup of the plant and for a period of Thirty (30) days thereafter. This period can be extended on mutually agreed terms.

 

	
(f)  

	
Any other services required and mentioned under this agreement.

 

	
(g)  

	
Make available the presence of LURGI experts for any and all the above services whenever such need arises.

 

Such additional service shall be at the BUYER's expense, billed at the "per diem" rates, plus expenses, as set forth in Annexure - F.

 

	
2.3  

	
CCI, through their Site Project Manager, shall supervise the actual erection and assembly of the plant through the BUYER's contractors and workmen hired at site on separately agreed terms. Such construction and assembly shall be in accordance with the instructions, drawings, and specifications of CCI & LURGI.

 

	
2.4  

	
The Plant shall be strictly as per the BASIC ENGINEERING designs from LURGI and manufactured and supplied by CCI to produce 750 TPD BIODIESEL using feed stock (Raw Material) of Extracted Soya Oil, and also perform the following:

 

	
(a)  

	De-acidification drying the feed stock oil

 

	
(b)  

	Trans-esterifying and esterifying of the feed stock

 

	
(c)  

	Recovering and producing Pharma Grade Glycerol

 

 

Techno-Commercial Agreement 750 TPD Bio-Diesel Plant Status: Confidential

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The final produced product BIODIESEL shall be as per ASTM standards.

 

3. Payments

 

	
3.1  

	
The Contract Price for the services and the Machinery and Equipment set forth in Annexure "A" is Rs. 54,94,40,000/- (Rupees Fifty Four Crores, Ninety Four Lacs, Forty Thousand only) or equivalent Euros €9,811,430/- (Euros Nine Million, Eight Hundred and Eleven Thousand, Four Hundred and Thirty only) excluding all taxes, (Not applicable in case of EOU). Transportation, freight and transit insurance are excluded in this price.

 

	
3.2  

	
The Contract Price shall exclude all TECHNICAL KNOWHOW. BASIC, DETAILED ENGINEERING and technical services necessary for the design, manufacture, inspection, packing and forwarding.

 

	
3.3 

	The Contract Price excludes any and all taxes, duties.

 

	
3.4 

	
The Contract Price shall be paid directly to CCI by the BUYER as follows:

	
a)  

	
Thirty Five (35%) shall be paid as advance to bring this agreement in to force.

 

	
b)  

	
Sixty Five (65%) shall be paid under a confirmed, irrevocable and divisible Letter of Credit opened in favor of CCI by the BUYER from a First Class Bank, allowing for partial shipments and confirmed for payment at CCFs Bankers in New Delhi, against the delivery documents consisting of B/L, invoices, certificate of origin, packing list of equipment. The Letter of Credit will be valid for Thirteen (13) months.

 

	
c)  

	
Ten percent (10%) shall be provided as Bank Guarantee to the BUYER for the performance of the Plant for successful commissioning of the Plant as per Annexure "D". This Bank Guarantee shall be part of the documents of the last shipment for payment under the Letter of Credit.

 

4. Inspection

 

	
4.1 

	
When any item of Machinery and Equipment is shipped to the BUYER's site. CCI shall notify the BUYER who shall arrange to inspect the item within Seven (7) days for compliance with the specifications listed on Annexure "A". In case the inspection is not taken up by the BUYER within this period, the inspection of such items shall be deemed to have been waived.

 

 

Techno-Commercial Agreement 750 TPD Bio-Diesel Plant Status: Confidential

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4.2 

	
Certain special items being very large may be shipped in disassembled condition for assembly at the site in accordance with instructions to be furnished by CCI.

5. CCI's Responsibilities

 

	
5.1  

	
Subject to the BUYER fulfilling each and every one of its obligations hereunder on a timely basis, CCI agrees that it shall hand over the Plant after successful trials and successful commissioning within Twelve (12) months from the date of this agreement coming in to force.

 

	
5.2  

	
CCI shall commence deliveries to the BUYER, not later than Sixty (60) days after the date of this contract coming into force, Items 1 through 4 listed under ""Engineering Services" in Annexure "B". The plans and drawings for the construction of the plant shall be complete, adequate, legible and in English. All clarifications, if any, shall be available forthwith from the Site Project Manager for the understanding of the BUYER's contractors/ engineers.

 

	
5.3  

	
CCI shall station its Project Manager at the site to supervise the entire Plant commissioning work including receiving, handling, unloading, and proper storage of the Machinery and Equipment until its installation and successful commissioning.

 

	
5.4  

	
CCI shall provide a detailed packing list of the machinery and Equipment contained in each shipment for the purpose of allowing the BUYER to check each shipment upon arrival.

 

	
5.5  

	
The BUYER's Representatives shall have the right to visit the shops constructing and assembling the Machinery and Equipment, and to inspect the same from time to time. The BUYER shall be entitled to bring to the attention of CCI and LURGI any deviation observed from the prescribed specifications, flow charts, layout drawings, and other provisions of this Agreement and CCI shall rectify any such deviations or other defects at its own cost, within the schedule and terms of this Agreement.

 

	
5.6  

	
CCI shall station an adequate number of competent engineers and supervisors at the plant for up to One (1) month after successful commercial commissioning in order to train the BUYER's staff for the takeover, working, and maintenance of the Plant. The supervisory services will be provided as per Annexure "F".

 

	
5.7  

	
CCI shall notify the BUYER in writing at least Sixty (60) days in advance, specifying the date and time when CCI intends to carryout a trial run of the plant so as to enable the BUYER to arrange for the continuous supply of all feed stocks, operational staff, workmen, other facilities and input materials. Unless otherwise agreed by the parties, the trial shall begin at the time and date notified and the BUYER shall attend at such time.

 

Techno-Commercial Agreement 750 TPD Bio-Diesel Plant Status: Confidential

7

  

 

	
5.8  

	
If such trials are completed to the satisfaction of CCI, LURGI, and BUYER, the BUYER shall issue a certificate to such effect to CCI forthwith.

 

	
5.9  

	
CCI shall, if required, assist the BUYER in recruiting competent staff and to train them for the Plant Operations.

6. Performance Guarantees

 

	

6.1  

	
CCI on the basis of Lurgrs Basic Engineering and Process Technology hereby guarantees.

 

	
(a)  

	
That all of the Machinery and Equipment shall be properly designed and constructed and shall meet the specifications set forth in Annexure "A".

 

	
(b)  

	
That all of the Machinery and Equipment will be brand new. of first class material and workmanship designed to be operational under normal use.

 

Any part found to be defective within Twelve (12) months from the date of start up, or Eighteen (18) months from the date of supply, whichever is earlier, shall be replaced or satisfactorily repaired by CCI at free of charge.

 

	
(c)  

	
That the Plant, when fully completed in accordance with the plans and drawings of CCI, shall be able to produce 750 TPD of BIO-DIESEL and perform in accordance with the Performance Guarantees set forth in Annexure "D" attached hereto subject to operation and maintenance as per CCI's Operation Manuals.

 

	
6.2  

	
In the event the Plant does not meet the Performance Guarantee during trials set forth in Annexure "D", CCI shall, at its own expense, promptly make whatever modifications, improvements, or adjustments that are necessary in order to bring the plant up to the required Performance Guarantee levels.

 

	
6.3  

	
CCI assures the BUYER that the unit will work on full capacity 250.000 tons per year, in case of any problem during the warrantee period CCI shall attend with in Seventy Two (72) hours and shall try to solve the same at the earliest.

 

 

Techno-Commercial Agreement 750 TPD Bio-Diesel Plant Status: Confidential

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7.  BUYER'S Responsibilities

 

	
7.1  

	
The BUYER shall arrange the payments set forth in Clause 3.4 of this agreement.

 

	
7.2  

	
The BUYER shall complete foundations and site preparation as per instructions of CCI to enable the installation and commissioning of the Plant.

 

	
7.3  

	
The BUYER shall provide 300m3 of Raw water per day of zero commercial hardness to the points nominated by CCI at the Plant.

 

	
7.4  

	
The BUYER shall make available all inputs as per Annexure "C" and "E" and personnel for start-up, trials and commissioning of the fully assembled plant on the pre-commissioning test dates specified by CCI.

 

	
7.5  

	
The BUYER shall obtain permission and comply with all requirements of all governmental or regulatory bodies having jurisdiction over the Plant.

 

CCI will assist with all technical advisement and assistance to the BUYER to apply for all necessary clearances from the related regulatory authorities.

 

	
7.6  

	
The BUYER shall be responsible for properly storing and securing all machinery and equipment at the site, in accordance with instructions provided by CCI.

 

	
7.7  

	
The BUYER shall procure all feedstock materials of the required quality in the plant strictly in accordance with the requirements of CCI. The technical specifications for the feedstock are attached hereto as Annexure "E".

8. Warranty

 

	
8.1  

	
CCI shall assign and deliver to the BUYER the originals of all warranties and guarantees of other manufacturers or subcontractors of material, machinery and equipment purchased from or constructed by third parties for delivery to the BUYER, but no such assignment shall release CCI from its duties hereunder.

 

	
8.2  

	
For a period of Twelve (12) months from the date of start up or Eighteen (18) months from the date of supply, whichever is earlier, CCI shall remain responsible for the repair and replacement of the plant and any portions thereof as may be found to be defective or as may fail under proper use as per the instructions provided by CCI in the Operations Manual, whether arising from faulty design, materials, or workmanship. This excludes failure or defects due to improper use of the plant or any portions thereof.

 

 

Techno-Commercial Agreement 750 TPD Bio-Diesel Plant Status: Confidential

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9. Maintenance  Contract

 

	
9.1

	After the guarantee period CCI agrees to undertake a Comprehensive Annual Maintenance Contract (CAMC) or Annual Maintenance Contract (AMC) for a yearly period on terms to be agreed upon if the BUYER so desires.

10. Transferability of the Contract

 

	
10.1 

	
CCI shall not transfer or assign its rights and obligation arising out of or in relation to this agreement except with the written consent of the BUYER.

11. Penalty for Delay

 

	
11.1  

	
Subject to the BUYER fulfilling each and every obligation under this Agreement, CCI will compensate the BUYER for delay in commercial startup of the Plant in the amount of one-half of one percent (0.5%) per week of the price of the plants so delayed up to a maximum of 5% of the price.

 

	
11.2  

	
This compensation shall only apply if commissioning is late by a grace period of more than Thirty (30) calendar days from the date specified in clause 5.1. This provision is subject to adjustment on account of Force Majeure.

12. Patent Indemnification

 

	
 

	CCI and LURGI shall indemnify the BUYER adequately against any claims arising out of infringement of any patent due to their designs and technology in manufacturing Bio Diesel by their process.

 

13. Force Majeure

	
 

	
In the event of any delay by either party hereunder caused by acts of government, the public enemy, floods, epidemics, war, acts of God, fires, civil commotion, strikes, lockouts, explosion, earthquakes, public disorders, sabotage and serious accidents and other acts beyond the control of, and not reasonably foreseeable by, or to be reasonably anticipated and prepared for by the parties, the time for completion of such party's duties shall be extended to the extent of the delay was caused by such incidents of force majeure. No change in the costs of materials or labour shall constitute a force majeure.

 

In the event of a force majeure occurrence, the party intending to claim the benefit thereof shall immediately notify the other of such occurrence and shall keep the other fully and currently informed of the status of such force majeure and of the termination thereof.

Techno-Commercial Agreement 750 TPD Bio-Diesel Plant Status: Confidential

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14. Arbitration

 

	
 

	
All disputes, differences, and disagreements arising out of the performance by either party of this Agreement shall be resolved, if possible, by an amicable agreement of the parties. In the event, however, the said parties cannot agree, such matters shall be referred to arbitration by Arbitrators, one by each of the signatories and an umpire chosen by them.

 

This agreement shall be in accordance with the Rules of Conciliation and Arbitration of the CURRENT Indian Arbitration Act, and governed by the laws of UNION OF INDIA.

 

15. General Provisions

 

	
 

	
Whenever any certificate, consent or concurrence is by the terms of this Agreement required to be given by any party, the same shall be given within Seven (7) days from the date so requested.

 

Any alterations, amendments, or changes to this Agreement or its schedules shall be valid only if agreed to by the parties in writing. This Agreement embodies the entire agreement between the parties with respect to the subject matter hereof, and all previous representations, communications and agreements, whether oral or in writing, are incorporated herein.

 

Time is of the essence of this Agreement and each and every provision herein. Any extension of time granted for the performance of any duty under this Agreement shall not be considered an extension of time for the performance of any other duty under this Agreement.

 

The language of the contract for all matters shall be English.

 

This contract consists of Fifty Seven (57) pages inclusive of Annexure "A" to "F"

 

 

Techno-Commercial Agreement 750 TPD Bio-Diesel Plant Status: Confidential

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IN WITNESS WHEREOF, the panics hereto have set their hands as of the date set forth above.

 

	 	TECH-START AUTOMATION CONSULTING (INDIA) PVT.  LTD
	 	
 

Signature:

	/s/ Kapil Bhargava
	 	
 

Name:

	
(AUTHORIZED SIGNATORY)

 

KAPIL BHARGAVA

	 	
 

Date: 

	14.08.2007

 

 

	 	CHEMICAL CONSTRUCTION INTERNATIONAL (P) LTD.
	 	
 

Signature:

	/s/ O.P. Nambiar
	 	
 

Name:

	
(AUTHORIZED SIGNATORY)

 

O.P. NAMBIAR

	 	
 

Date: 

	14.08.2007

 

 

	 	BIOFUEL ADVANCED RESEARCH & DEVELOPMENT.
	 	
 

Signature:

	/s/ Surjit Khanna
	 	
 

Name:

	
(AUTHORIZED SIGNATORY)

 

SURAJIT KHANNA

	 	
 

Date: 

	14.08.2007

 

 

Techno-Commercial Agreement 750 TPD Bio-Diesel Plant Status: Confidential

12

  

 

Assignment of Contract

FOR VALUE RECEIVED, Biofuel Advance Research & Development, LLC (BARD). (“Assignor”) hereby assigns and otherwise transfers (“assigns”) to Bard Holding, INC. (“Assignee”) all rights, title and interest held by Assignor in and to the contract described as follows:

 

Contract dated August 14th, 2007, between Chemical Constructions International (P) Limited (CCI) & Tech Start Automation Consulting PVT. LTD and Biofuel Advance Research & Development, LLC. (BARD) and concerning for design, supply of equipment and construction of 750 TPD (250,000 TPY) Muti-feed stock base commercial scale Bio-diesel production plant.

 Assignor warrants and represents that said contract is in full force and effect and is fully assignable.  Assignor further warrants that it has the full right and authority to transfer said contract and that contract rights herein transferred are free of lien, encumbrance or adverse claim.  Said contract has not been modified and remains on the terms contained therein.

Assignee hereby assumes and agrees to perform all remaining and obligations of Assignor under the contract and agrees to indemnify and hold Assignor harmless from any claim or demand resulting from non-performance by Assignee.  Assignee shall be entitled to all monies remaining to be paid under the contract, which rights are also assigned hereunder.

This Assignment shall become effective as of the date last executed and shall be binding upon and inure to the benefit of the parties, their successors and assigns.

 

 

 

	 	 	 	 
	

Dated: ___12/01/2009______

	
 

	/s/Surajit Khanna	 
	 	 	Surajit Khanna, Managing Member	 
	 	 	Biofuel Advance Research & Development (BARD), LLC Assignor	 
	 	 	 	 

 

	

Dated: ___12/01/2009______

	
 

	/s/Howard L. Bobb,	 
	 	 	Howard L. Bobb, President	 
	 	 	Bard Holding, Inc. Assignee

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