SUBSTRATE SUPPLY AND COOPERATION AGREEMENT
This Substrate Supply and Cooperation Agreement (this “Agreement”) is made effective as of the 13 th day of July, 2006,
between Microgy, Inc., a Colorado corporation with offices at One Cate Street, 4 th Floor, Portsmouth NH, 03801 USA
(“Microgy”) and Liquid Environmental Solutions Corporation, a Delaware corporation with offices at 12626 High Bluff Drive,
Suite 240, San Diego, CA 92130 (“LESC”). Microgy and LESC may be referred to herein each as a “Party” and collectively as the
A. Microgy develops, constructs, owns and operates anaerobic digester biogas production facilities (each, a “Biogas
Facility”) that utilize manure and other organic waste streams for the production of biogas.
B. The addition of suitable organic waste streams as substrate in the digestion process employed by the Biogas Facilities
can enhance biogas production.
C. Microgy seeks to arrange for the consistent and cost-effective supply, handling and delivery of suitable substrates, in
such quantities as is required for the start-up and operation of its Biogas Facilities.
D. LESC, through its affiliates, collects, treats and disposes of non-hazardous liquid waste streams, some of which may be
suitable substrates for use in Microgy’s Biogas Facilities.
E. LESC seeks to lower the cost of operations of its affiliates, including waste processing costs, disposal fees,
transportation costs, as well as gain access for its affiliates to additional customer markets by expanding its waste disposal
F. LESC is committed to protecting the environment and seeks ways to convert non-hazardous liquid waste streams into
alternative energy sources, as opposed to more traditional methods of processing and disposal.
G. The Parties believe that cooperation between them regarding the supply, handling and delivery of substrates could
generate significant economic and market benefits for each of them.
H. The Parties further believe that cooperatio