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 BUSINESS LETTER

Numer 0311/2015/Vinaca issed day 03/11/2015

Send to: Government of Turkey

           VINACA CORPORATION

 

VINACA GREEN GAS SYSTEM

Project name

VINACA GREEN GAS SYSTEM

Capacity (min)

1000 metric ton of gas per month

Investor

Government of Turkey

Contractor

Members of Vinaca Corp

Content of Agreement

Contractor invests technology, operating manufacture

Investor deposit cash fund by 100% cost of project

Profits after tax, total cost that sharing 60% to contractor, 40% to investor

Investment time 50 years, after then contractor will clear all old equipments

Constructing

8 months

Items: Land; office; factory; Equipments (trucks; chippers; grinders; briquetters; dryers; green gas generators…) and main gas system.

Location

Turkey

Area land: 30,000m2.

Investor has to arrange clear land for project.

Project shall use green gas generator.

Project hasn’t any industrial waste, included solid waste.

Raw materials

Anything: fresh waste wood, sawdust, corn, rice straw, solid waste…

Standard metarial: 10% moisture, carbon 60%

Comsumption: 1000Kg standard metarial convert into 500Kg gas.

Target price: $50USD per 1000kg standard metarial

Products

Green gas 75% (CH4, CO, H2); 25% balance CO2, N2..

Without source: SO2, PH3, NH3, NxOy…

Calory: 8000 – 11,000Kcalo/Kg.

Tempture: 900 – 1200oC

Pressure less 3Kg/cm3

Without smell, smoke, high pressure

Target price $400USD per metric ton

Buyers

100,000 houses of town; village

Terms that buyers deposit about $100USD per house (per line, metter…).

This gas shall use to cooking; running generator less 5kW; heating…

Delivery and Payment

Contructor builds the gas lines system as water lines, transfer gas from project to the houses, durring in the distance 5km.

Meterring by the gas meter system, Meter automatic send sms, email to the houses and contractor monthly.

The buyers payment 3 a months on time, after ussed gas.

Payment over bank account after received gas bill

Financial

a) Total income per month

#

Item

Unit

Q.tity

Price (USD)

Total (USD)

1

Green gas

MT

1000

380

380,000

2

Total

(1)

 

 

400,000

 

b) Total cost:

#

Item

Unit

Q.tity

Price (USD)

Total (USD)

1

Metarial

MT

2000

50

100,000

2

Worker

%

10% (of income)

40,000

40,000

3

Processing

%

10% (of income)

40,000

40,000

4

Repair

%

10% (of income)

40,000

40,000

5

Total

(2)

 

 

220,000

 

c) Profits before tax:

Total (3) =Total income – Total cost = 400,000 – 220,000 = $180,000 USD.

 

d) Shared profits:

Contractor shall getting 60% by $108,000USD

Investor shall getting 40% by $72,000USD

Deposit fund

Vinaca Fund and Investor will deposit $5,000,000 to the contractor after signed the investment agreement.

This fund will be return to invester after 50 years.

The investor hasn’t payment of depreciated assets of project.

Payback time

Investor will get repayment within 70 months (by 40% profit x 70months).