WOOD PELLET SUPPLY MOA KOREA GLOBAL ENERGY DEVELOPMENT CORPORATION ( hereunder called as “A” ) and COBY ENERGY CORP ( Hereunder called as “B” ) has agreed to buy and sell set forth to hereinafter. “A” Buyer ( Buyer ) Company : KOREA GLOBAL ENERGY DEVELOPMENT CORPORATION Address : suit 1214, New Tea castle, 429-1, Gasan-Dong, KeumCheon-Ku, Seoul Business License no : 110111-4805565 President : JANG OK “B” Seller ( Supplier ) Company : COBY ENERGY CORPORATION Address : 895-41, Dongpae-Dong, Gyoha-Ro, Paju-Si, Kyungki-Do, Korea Business License no : 110111-2826620 President : Mun Haewoon 4. Purpose ‘This Agreement is pursuing for the mutual benefits and contribution for its vitalization and ‘development in the industrial field of Bio Mass Cogeneration power plant by supplying Wood Pellet to "A" from *B". 2. Duration and Termination 1) This Agreement shall come into effect on the date of its signature ( the “Effective date”) and is entered into for an undefined perio Its duration is Twenty (20) years and will be automatically extended for ten (10) years continuously if both parties do not breach any requirement set forth in this agreement. 2) The Agreement can be terminated by either Party's written notice subject to a term of notice of 30 days before its expiration date 3, ITEM / TERMS and CONDITIONS 1) Fuel Type : WOOD PELLET ( No 1 ~ 3 grade ) 2) Supply Quantity : Yearly 70,000metric tons ( Monthly 6,000metric tons) 3) Packing : Container Loading packed in Jumbo Bag 4) Price : CNF USS(§/metric ton including EBS Charges ( POD : Busan, Inchon, Kwangyang buyer's Option ) . it can be proportionally adjustable depend on the outtur caloric value of 4,000 kal / kg basis. 5) Payment : By Cash of Korean won within 10 days of following Month of shipping Month. 6) Shipment : Shipment Starting from around Jan 1* of 2016, if necessary it can be doneearlier. 7) Delivery : Within 2 months after placing order ( Quantity is calculated by based on 9.9 mw Jone generator, yearly 70,000 metric ton , monthly 6,000 metric tons ) It should be delivered to the destination designated by "A". and ought to pass the sample test by “As required quality level. With the quality approval by buyer, it would consider the delivery to be completed. 8) Priority Delivery : First priority is NONSAN 1 generator and YANGJU 3 Generators and so on. (Depending on new Plant building schedule, "B" shall supply additional quantity to "B’ secure more capacity to supply.) 9) Quality standard for Wood Pallet : The quality specification is required to meet below mentioned level. if the Korea standard changes, both party shall discuss and agree to substitute by appropriate quality. a) caloric value: over than value 4,000 kcal/kg ( 1~3 grade ) b) Size: Diameter 6~25mm, Length smaller than 32mm c) Outlooking density : over than 500kg/ m* 4) Moisture : less than 15% ) Ash content : ess than 6% ) Fines content : less than 2.0% 9) Durability : over than 95% h) Sulfur: less than 0.05% i) Chlorine : less than 0.05% J) Nitrogen : less than 1% k) Heavy Metals Arsenic : less than 1.0mg/kg Cadmium : less than 0.5mg/kg Chrome : less than 10mg/kg Copper : less than 10mg/kg Lead : less than 4.0mg/kg Mercury : less than 0.05mg/kg Nickel : less than 10mg/kg Zinc : less than 100mg/kg |) balance chemical composition : less than 2.0% m) Ete : “B®” shall provide appropriate quality in case of the change of Korea quality standard for the Wood Pallet 10) Both party can discuss and amend the contractual terms if necessary. 11) Price change : In case of more than +/- 10% price fluctuation, both party can discuss and adjust its initial contract price CNF USS@@Jimetric ton with POD Busan, KwangYang, Inchon port. 412) Price Increase : It shall increase the contractual price by 2% yearly since the shipment is,effected, 4, Quality Liability ; “B" shall take responsibilty for the quality issue only within the range mentioned in this Agreement. 5. Quality Inspection and Claim responsibility = 11) Upon delivery of materials to "A" premise , “A” immediately check its quality and ought to report to “B” once any problems happens such as Defective Quality and Quantity shortage and so on. ‘As soon as any claim notice is reported, “B" should take immediate action like compensation or reduction, contract termination etc. 2) Even if the problem can not be found out at once, “A” should report the claim to latest within 14 days. “A” can not raise any claim after that period of time. 3) If the Quality issue is too serious and unacceptable, which can not be remedied by mutual, discussion, “A” can declare to "B" the contract termination. 6, PERFORMANCE BOND and RISK OF LOSS 1) In order to warrant mutual obligation and performance in this Contract, "and "B" shall exchange the Guaranty Insurance Policy at the amount of Korea won \WIEENMIB issued by Guarantee Insurance company. 2)°A” and “B" can discuss and fix the effective date of Insurance Policy. 3) Each Party is entitled to request for the compensation in the occurrence of one of the following events. ‘Bs failure to perform or fulfil the supply herein agreed contractual delivery ~"A"s failure to take materials within the period herein agreed = In the event any party's failure to perform or fulfil the contract, the other party can send written notice specifying such failure and request for the fulfilment of contract. If such failure is not entirely and definitely remedied within 14 calendar days after receipt, the other party can request for the reimbursement of the amount equals to Insuranoe Policy. 4) In the event of termination agreed by both party , it should promptly provide the necessary document pertaining contract termination to other party. ‘7 TERMINATION OF CONTRACT Each party is entitled to terminate the present Agreement by force of law and with immediate effect in the occurance of one of following events. 1) the other party files a voluntary petition in bankruptcy and is declared bankrupt. 2) due to unpaid tax, it starts liquidation or levy on the property or similar proceedings. 8, INTERPRETATION Both parties shall comply with the interpretation according to this agreement. If there is additional agreement, which shall be followed preferentially. And after that, both partiesshall follow International General rules and regulation. Finally it shall be followed by * Interpretation. 9. CONFIDENTIALITY Each party hereto shall identify as confidential information (‘Confidential Information”) all information provided by such Party to the other Party which is considered by such providing Party to be confidential, proprietary information. Neither Party hereto will, without the prior written consent of the Party providing such confidential information, 1) use any portion of such Confidential information for any purpose other than performance pursuant to this Agreement, or 2) disclose any portion of such Confidential information to any person or entity other than the offices, directors, agents and employees of such Party and its Affliates who reasonably need to have access to the Confidential Information for purpose of performance under this Agreement and who are bound by appropriate confidenciality agreements and commitments consistent with those utilize by such Party in protecting its own confidential information. 10. ARBITRATION This Agreement is made, shall be executed, construed, performed and enforced in accordance with the laws of Korea, excluding its conflict of law rules. Any dispute, controversy or difference which may arise out of, or in connection with or in relation to the validity, interpretation or execution of this Agreement, or for the breach thereof, shall unless settied by amicable arrangements of the parties without undue delay, be finally settled by the Courts of Plaintiff's country. 41. FORCE MAJEURE Both parties shall not be liable to the other party for loss, injury, delay, expenses, damages, or other casualty suffered or incurred by the other party due to the failure of other party to perform its obligation hereunder as a result of trade dispute, strikes, riots, civil or military conflict, sabotage, labor unrest, storms, fires, explosion, act of God or government or any cause beyond the reasonable control of the other party. 42, AGREEMET EFFECTUATION This Agreement shall come into effect on the date of its signature ( the “Effective date") and is entered into for an undefined period. Signatures sent to the other parties by Fax or E-mail enclosed authentication certificate of CEO's seal shall be binding as evidence of the acoaptance of the terms of this Agreement by such signatory party.‘Signed in duplicate, at On... Each party acknowledging to have received one original copy. 2014. 10. 24 “A” Buyer ( Buyer) ‘Company : KOREA GLOBAL ENERGY DEVELOPMENT CORPORATION Address : suit 1214, New Tea castle, 429-1, Gasan-Dong, KeumCheon-Ku, Seoul Business License no : 110111-4805565, President : JANG OK “B" Seller ( Supplier ) Company : COBY ENERGY CORPORATION Address : 595-41, Dongpae-Dong, Gyoha-Ro, Paju-Si, Kyungki-Do, Korea Business License no : 110111-2826620 President : Mun Haewoon