INTERNATIONAL SUSTAINABILITY & CARBON CERTIFICATION EU

(ISCC) COMPLIANCE BY DEPENDENT COLLECTOR & COMMERCIAL

AGREEMENT

THIS AGREEMENT IS MADE ON THIS 8th DAY APRIL 2022.

BETWEEN

FATHOPES ENERGY SDN BHD (920586-W) WITH BUSINESS ADDRESS AT

NO 40 (LOT 51) TAMAN PERINDUSTRIAN BUKIT EMAS, INANAM, MILE 7.5, JALAN TUARAN,
88450 KOTA KINABALU, SABAH, MALAYSIA (REFERED TO AS FHE)

AND
PT SINAR UTAMA BERKAH (REFERRED TO AS “DEPENDENT COLLECTOR”)

NOW IT IS HEREBY AGREED AS FOLLOWS:

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A. PREAMBLE

1. FatHopes Energy Sdn Bhd (FHE) is a waste & residue collector and operate a fleet of vehicles to collect
used cooking oil (UCO) from various points of origin within Southeast Asia.
2. FHE is an ISCC (International Sustainability & Carbon Certification EU) certified company.
3. FHE is classified as Collection Point and Trader, under ISCC certification.
4. PT Sinar Utama Berkah shall be classified as Dependent Collector of FHE under ISCC.
5. FHE appoints the Dependent Collector to collect UCO from specific locations on its behalf and FHE
shall fully support their operations with necessary training and management in the collection of UCO
6. The Dependent Collector shall act on behalf of Collection Point operator, FHE.
7. The Dependent Collectors shall solely work for FHE and are paid remunerations including fixed
payment, commissions or incentive based on FHE Dependent Collector Program
8. Area of coverage for collection shall be Jakarta INDONESIA

B. CONDITION PRECEDENT
1. The Dependent Collector shall provide the following information:
 a. Full details of the company, shareholders and directors
b. Address/ Location of operations
c. Ownership of the site of business or lease agreement with the landlord
d. Business License & Permit
e. A copy of all operating licenses required for the collection of UCO within the jurisdiction of
which the Dependent Collector operates.
f. Ownership of vehicle.
g. Names of staff, drivers and attendants.
h. Official Bank Account Number under the registered company or enterprise
2. The Dependent Collector shall demonstrate the ability to perform the activities of collecting UCO
according to the schedule and requirements of FHE
3. The Dependent Collector shall exclusively deal with UCO and shall declare that the UCO is not mixed
with fresh oil. The UCO refers to oil and fats of vegetable origin which has been used to cook food for
human consumption. That the UCO is not intentionally modified or contaminated to meet the
definition of waste

C. TERMS & CONDITIONS

1. The Dependent Collector shall comply with all ISCC (International Sustainability & Carbon
Certification) principles on waste & residue collection, as informed and instructed by FHE
2. FHE shall conduct periodic training and the Dependent Collector shall nominate staff to attend the
programs.
3. The Dependent Collector shall attend all training programs conducted by FHE specifically on ISCC
principles
4. The Dependent Collector shall avail visits to its premises by FHE staff for purposes of business
discussion and internal audit in line ISCC requirement.
5. The Dependent Collector shall be covered during ISCC audit based on a sampling method and shall
avail themselves for the audit.
6. The Dependent Collector shall ensure that auditors from Certifying Body and staff of ISCC are given
access to information, data and documents to evaluate ISCC compliance with the relevant
requirements of the ISCC scheme
7. FHE shall pay fixed rates, incentives, or a combination for collection of UCO as per the terms of
payment in this Agreement or as published and notified to the Dependent Collector from time to time.
8. The Dependent Collector shall ensure that all Point of Origin sign the Self Declaration form once
annually
9. The Dependent Collector must ensure that each UCO collection is recorded accordingly on the systems
as prescribed by FHE.
10. The Dependent Collector is required to update new system changes for FHE collection applications as
and when required by FHE.
11. The Dependent Collector is an extension of FHE and shall conform to all rules & regulations of FHE, as
a partner of FHE.
12. The Dependent Collector shall maintain the following:
a. List of point of origin (stores / restaurant), and ensure every outlet has signed copy of the Self
Declaration annually (every January)
b. Mass Balance format are filled and completed every month and are subject to verification by FHE
staff
c. Proper measurement method for quantity determination of UCO collected from the point of origin
d. Physical stock keeping and inventory data
e. Proper documentation for traceability of UCO from source to delivery
13. FHE reserves the right to terminate this Agreement immediately if the Dependent Collector does not
comply with ISCC procedures or there are any irregularities or breach of the terms and conditions
contained herein.

D. COMMERCIAL

TERRITORY AND AREA OF COVERAGE/ COLLECTION SCHEDULE

1. The assigned territory under Dependent Collector’s supervision shall be Jakarta, INDONESIA
2. FHE shall issue standard routine and collection schedule which are approved by the principal of the
point of origins (outlets /restaurants) where applicable.
3. The Dependent Collectors shall service all outlets assigned with proper schedule and routine for
collections which are approved by FHE where applicable.
4. FHE shall routinely check the collection records and inspect the premises and operations of the
Dependent Collector.
5. The Dependent Collector and staff will be trained before implementation of digital collection chit and
ISCC requirements at no additional cost to the Dependent Collector.

PRICING
a. Pricing for Dependent Collector’s acquired Points of Origin
1. Delivered Price of UCO collected by Dependent Collector from points of origin acquired by Dependent
Collector conforming to ISCC requirements shall be at minimum of indexed to the average MPOB Daily
Prices of Crude Palm Oil from the MPOB website or any other spot price as agreed between FHE and
the Dependent Collector (http://bepi.mpob.gov.my/admin2/price_local_daily_view_cpo_msia.php?
more=Y&jenis=3M) of the previous month at the following formula:

90% CPO x CPO monthly average index as described above

Example:
Based on current CPO price on MPOB website at RM 6,000 per mt. Nova Corp Enterprise delivers 20
mt of UCO to FHE at 90% X RM 6,000 / 4.2000 = USD 1,286 per mt for 20mt for a total of USD 25,720.

Based on the example given, FHE shall purchase the 20mt of UCO from the Dependent Collector at the
price of USD 25,720 or any other price as negotiated and agreed to between FHE and the Dependent
Collector.

2. The weight of the cargo shall be based on the net weight as calculated at the discharge port
weighbridge subject to quality approval at FHE lab based on specifications and deduction made
accordingly.
3. The Dependent Collector shall pay for all the logistics costs up to delivery at Port Klang.
4. FHE shall reserve the right to reject the cargo if the quality is drastically different from the
specifications of UCO.

Payment
1. Payment for the quantity delivered shall be made upon verification of quantity and quality, at any
location nominated by FHE.
2. Payment will be made within 7 days upon receipt and acceptance of UCO by FHE.
3. Payment shall be made directly to the official bank account as given under company’s details (as per
Condition Precedent)

Quality
 Should the UCO purchased in this Agreement breaches the quality specifications set out in the table
below, then the following adjustments would be made to the purchase price to reflect the relevant UCO
specification:

Base UCO Maximum Purchase Price Adjustment

Specifications Allowable UCO Specification
Specification
Free Fatty Acid Max 5.0% Max 10.0% 1% discount to Purchase Price per 1% of
FFA above 4.0% to maximum 10.0%,
decimals in proportion

Sulphur Max 40 ppm Max 80 ppm For >40 ppm but <50 ppm: $5 discount
For >50 ppm but <60 ppm: $10 discount
For >60 ppm but <70 ppm: $20 discount
For >70 ppm but <80 ppm: $30 discount

Moisture + Max 2.0% Max 10.0% 1% discount to Purchase Price per 1% of

Impurities (M&I) M&I above 2.0% to maximum 10.0%,
decimals in proportion

Unsaponifiable Max 1.0% Max 3.0% 2.5% discount to Purchase Price per 1%
of M&I above 1.0% to maximum 3.0%,
decimals in proportion

Iodine Value Min 50 Min 50 N/A

Phosphorous Max 50 ppm Max 80 ppm For >50 ppm but <60 ppm: $20 discount
For >60 ppm but <70 ppm: $30 discount
For >70 ppm but <80 ppm: $40 discount

E. DURATION & VALID OF THE AGREEMENT

1. This Agreement shall commence from 8th Apr 2022 and shall be valid for a period of one (1) year and
will be subject to fresh terms if negotiated for renewal of this contract.
2. This Agreement may be amended or modified by FHE from time to time, as part of the requirement of
ISCC or on mutual agreement. Such changes or amendments shall be made in writing and added as an
addendum to this Agreement and be valid till the expiry of the Agreement. In the event of a conflict
between the terms of this Agreement and the Addendum, the terms in the Addendum shall prevail.
F. TERMINATION

1. Both parties shall have the right to terminate this agreement based on mutually agreed terms.
2. FHE shall have the sole right to forthwith terminate the Dependent Collector if there is any breach of
the terms of this agreement or if there is non-compliance to ISCC regulation or FHE requirements.
3. The termination for non-compliance to ISCC shall be immediate.
4. One (1) month notice shall be given to the Dependent Collector in the event of a termination by FHE,
for other reasons apart from non-compliance to ISCC regulation.
5. Both parties shall work out any outstanding matters in relation to quantity and payments due
amicably.
6. This Agreement shall be governed by and construed in accordance with the laws of Malaysia and FHE
and the Dependent Collector irrevocably submit to the non-exclusive jurisdiction of the Courts of
Malaysia.
BOTH PARTIES HEREBY AGREE TO THE ABOVE TERMS AND CONDITIONS

……………………………….. ………………………………
FatHopes Energy Sdn Bhd
Name: PT Sinar Utama Berkah Name of Person:

Designation: Designation:
I/C No: I/C No:
Date: Date

Stamp: Stamp: