SECOND ADDENDUM TO THE AGREEMENT FOR SUPPLY OF SPRING WATER AND FIRST ADDENDUM TO THE AGREEMENT FOR THE MANUFACTURE OF SECURED SPRING WATER ICE CUBES AND BOTTLED WATER
EXHIBIT
10.18
TRANSLATION
FOR CONVENIENCE ONLY - NOT LEGALLY BINDING
SECOND
ADDENDUM TO THE AGREEMENT
FOR
SUPPLY OF SPRING WATER
AND
FIRST ADDENDUM TO THE AGREEMENT FOR THE
MANUFACTURE
OF SECURED SPRING WATER ICE CUBES
AND
BOTTLED WATER
BY
AND BETWEEN:
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WATER
BANK OF AMERICA INC.,
corporation duly constituted pursuant to the Canada Business Corporations
Act, having its head office at 5 Place Ville Xxxxx, Suite 1108,
Province
of Quebec, H3B 2G2, herein represented by Xx. Xxxx-Xxxxxxxxx Xxxxxxx, duly
authorized for the purposes of these presents, as he so
declares;
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Hereinafter
designated as “WBOA”
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AND:
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EAU
DE SOURCE NATURELLE 83 PPM INC.,
corporation legally constituted pursuant to the Canada Business
Corporations Act, having its head office at 00000, Xxxxx 00, Xxxxxxxxx
Xxxxxxx, Xxxxxxxx of Xxx Xxxxxxxxx, Xxxxxx, X0X 0X0, formerly known
as
4287762 Canada
Inc.
herein represented by Xx. Xxxxx St-Onge, duly authorized for the
purposes of these presents, as he so declares;
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Hereinafter
designated as “CANADA INC.”
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AND
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ANTIROUILLE
MÉTROPOLITAIN CANADA LTÉE, corporation
duly constituted pursuant to the Canada Business Corporations Act,
having
its principal place of business at 0000 Xxxxxxx Xxxxxxxxx, Xxxxx-Xxxxxxxx,
Xxxxxxxx xx Xxxxxx, herein represented by Xx. Xxxxx St-Onge, duly
authorized for the purposes of these presents, as he so
declares;
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and
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GESTION
BRUNO ST-ONGE,
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and
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XXX.
XXXXXX XXXXXXXXXX
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Hereinafter
referred to as the
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“INTERVENERS”
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ADDENUM
TO THE AGREEMENT FOR SUPPLY OF SPRING WATER
WHEREAS
on
February 11, 2006, the parties entered into and concluded a contract entitled
“Contract for the Supply of Spring Water” (hereinafter designated the
“Contract”)
pursuant to which CANADA INC. granted to certain water rights to
WBOA;
WHEREAS
the
parties wish to modify the Contract in order to replace the exclusivity
provisions therein by a right of first refusal, and to further cancel the
cost
stipulated in such Contract for bottled water and the fabrication of secured
spring water ice cubes;
WHEREAS
in
consideration of the water rights mentioned hereinabove, WBOA consented in
favour of CANADA INC., the option to subscribe to 6,000,000 Class “A” shares in
its capital stock, the whole for a period of five (5) years at a price of
$0.25
per share (hereinafter designated the “Options”);
WHEREAS
CANADA
INC. assigned its options to the INTERVENERS hereunder in the following
proportions:
Gestion
Bruno St-Onge Inc.:
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4,000,000
Options
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Xxx.
Xxxxxx Xxxxxxxxxx:
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2,000,000
Options
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WHEREAS
the
INTERVENERS acknowledge having been informed of WBOA’s intention to enter into
and conclude a reverse take over transaction with Autostrade Motors Inc.
an
American corporation whose securities are listed on the “Over the Counter
Bulletin Board” in the United States;
WHEREAS
CANADA
INC. and the INTERVENERS acknowledge that in view of completing the
aforementioned transaction, WBOA must reduce the number of options to which
it
had consented in favour of certain holders, in the aggregate of approximately
21,000,000 options, to 1,500,000 options of Autostrada Motors Inc. for a
period
of three (3) years at a purchase price of $0.25 USD;
WHEREAS
the
parties hereby wish to amend the Contract in order to reflect the following
terms and conditions, and take into account the reduction of options, the
whole
as more fully explained hereinabove;
THE
PARTIES COVENANT AS FOLLOWS:
1.
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PREAMBLE
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1.1 |
The
preamble is an integral part hereof as recited herein at
length;
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2
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AMENDMENTS
TO ARTICLE 2 OF THE
CONTRACT
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2.1
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The
parties hereby agree and covenant to amend Article 2.2 of the Contract
as
follows:
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Subject
to CANADA INC. holding the infrastructures and the necessary authorizations
for
the bulk sale of water, the cost of the water rights shall be equivalent
to the
Canadian average for such product together with any related fees due to
regulatory norms which shall then be applicable.
2.2
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The
parties agree and covenant to repeal Article 2.3 of the Contract
and to
replace same by the following:
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2.3
Right
of
First Refusal
Throughout
the term of the Contract, WBOA obliges itself, whether for bulk water or
for
bottled water, to grant a right of first refusal in favour of CANADA INC.
on any
purchase order (hereinafter designated the “Purchase Order”) which it shall
receive in writing, as well as provide and divulge to CANADA INC., the price
and
the name of the lowest bidder.
CANADA
INC. must, within the seven (7) days following the reception of the Purchase
Order, indicate in writing to WBOA, as the case may be, its acceptance to
produce and deliver (i.e.: if a Purchase Order provides for a specific
destination for delivery) to the destination of such bottles of water according
to the price and specifications (i.e.: delivery dates, format, labelling,
etc.)
as may be provided in the Purchase Order. In the event that CANADA INC. accepts
the Purchase Order, WBOA shall place such Purchase Order with CANADA INC.
(hereinafter designated the “Response”). In the event that CANADA INC. fails to
provide WBOA with a Response within the aforementioned delay of seven (7)
days,
WBOA shall be entitled to place an order with a supplier of its
choice.
The
Purchase Order and Response must be sent by registered mail, fax or electronic
mail to the coordinates to be determined between the parties within thirty
(30)
days of the signature of these presents.
The
parties acknowledge that the hereinabove mentioned right of first refusal
does
not apply to bottled water in the 18 litre format as provided by Eau de Source
Vita (2000) Inc., the whole in conformity with the Addendum previously entered
into and concluded between the parties.”
2.3
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The
parties hereby agree and covenant to repeal for all legal purposes,
Article 2.5 of the Contract.
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3.
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AMENDMENT
TO ARTICLE 3 OF THE
CONTRACT
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3.1
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The
parties agree and covenant to repeal Article 3 of the Contract
and to
replace it with the following:
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“As
consideration for the guaranteed water rights consented in favour of WBOA,
CANADA INC., shall be entitled to receive:
i) |
500,000
Class “A” Shares of WBOA;
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ii)
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750,000
options of the 1,500,000 options consented by Autostrada Motors
Inc. at
the price and for the vesting period stated in the Agreement for
the
cancellation of options signed by the parties concurrently
herewith.”
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4.
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AMENDMENTS
TO ARTICLE 5.2 OF THE
CONTRACT
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4.1 |
The
parties agree and covenant to repeal Article 5.2 viii) of the Contract
and
to replace it with the following:
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“5.2 viii) The
parties agree and covenant that in the event that WBOA does not place any
order
with CANADA INC. for a consecutive period of twenty-four (24) months, then
CANADA INC. reserves the right to unilaterally terminate the present
Contract.”
4.2 |
The
parties agree and covenant to repeal Article 5.2 ix) of the
Contract.
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5
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OTHER
PROVISIONS
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5.1
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All
other provisions of the Contract shall remain unchanged and in
effect.
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ADDENDUNM
TO THE AGREEMENT FOR THE MANUFACTURE OF
SECURED
SPRING WATER ICE CUBES AND BOTTLED WATER
WHEREAS
on
February 11, 2006, the parties entered into and concluded an agreement entitled
“Agreement for the Manufacture of Secured Spring Water Ice Cubes and Bottled
Water” (hereinafter the “Agreement”);
WHEREAS
WBOA
shall purchase the unit for the production of secured spring water ice cubes
in
lieu and in the place of CANADA INC.;
WHEREAS
the
parties agree and covenant to amend the Agreement in the following
manner:
THE
PARTIES COVENANT AS FOLLOWS:
6.
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PREAMBLE
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6.1 |
The
preamble hereto constitutes an integral part
hereof.
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7.
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AMENDMENT
TO THE TITLE OF THE
AGREEMENT
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7.1
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The
parties agree and covenant to amend the title of the “AGREEMENT FOR THE
MANUFACTURE OF SECURED SPRING WATER ICE CUBES AND BOTTLED WATER” to the
“AGREEMENT FOR THE MANUFACTURE OF SECURED SPRING WATER ICE
CUBES”.
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8.
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AMENDMENT
TO ARTICLE 2 OF THE
AGREEMENT
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8.1
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The
parties agree and covenant to repeal Articles 2.1 and 2.2 of the
Agreement
and to replace same with the
following:
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“2.1 |
INSTALLATION
AND MAINTENANCE
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WBOA
shall proceed to the purchase and installation within the premises and
infrastructures of CANADA INC., of a production unit for the manufacturing
of
secured spring water ice cubes from the company Megaplastic, together with
an
automated packaging machine (Kappa or equivalent) necessary (hereinafter
designated the “Unit”), the whole in order to permit multiple optimal
productivity conditions at the latest by the 1st
of May
2007;
WBOA
shall be responsible for all costs relating the delivery and installation
of the
Unit (i.e.: installation, water hook ups, electricity and others) within
the
premises and infrastructures of CANADA INC., the whole with the collaboration
of
CANADA INC.’s personnel. Furthermore, WBOA shall be responsible of any costs
related to the maintenance of the Unit, the whole with the collaboration
of
CANADA INC.’s personnel.”
“2.2 |
EXCLUSIVITY
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CANADA
INC. binds and obliges itself to manufacture secured spring water ice cubes
for
the sole and exclusive benefit of WBOA and deliver same, the whole in accordance
with technical specifications as provided by WBOA;”
8.2
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The
parties agree and covenant to repeal Article 2.3 of the
Agreement;
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8.3
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The
parties agree and covenant to repeal Article 2.5 of the Agreement
and
replace same with the following:
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“2.5 |
Stocks
and Finished Products
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CANADA
INC. will be responsible for providing a sufficient inventory of consumables
required for the processing of secured spring water ice cubes (superior
and
inferior PET film, cardboard, palettes, self-adhesive stickers, printer
ink,
etc.), the whole in conformity with the norms and specification as requested
by
WBOA. Additionally, CANADA INC., will also provide the spring water necessary
for the production of the products.
CANADA
INC. warrants to WBOA that its spring water shall meet the alimentary norms
in
effect in the United States and in Canada. Additionally, CANADA INC. undertakes
to obtain the required authorizations and/or licences in view of having its
spring water approved by the American and Canadian competent authorities.
As
regards to raw materials, same shall be incumbent upon WBOA.
CANADA
INC. will assume all handling associated with the production of the Products,
starting from loading of the consumables. CANADA INC. shall ensure the supply
of
the Unit, the loading of the Products and, as the case may be, the transport
thereof, the whole according to accepted industry practices. To this effect,
CANADA INC. shall be responsible for the Products until delivery, in the
event
that the latter is responsible for the transportation.
It
is
agreed that CANADA INC. obliges itself to use the Unit with prudence and
diligence, the whole in accordance with accepted industry practices, in order
to
preserve same in good working order, subject to normal wear and
tear.
Furthermore,
the parties agree and covenant to secure and maintain in effect all necessary
insurances for the protection of the Unit against fire, theft and civil
liability.”
8.4
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The
parties agree and covenant to repeal Article 2.8 to replace it
with the
following:
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“2.8
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For
the first three (3) months following the installation of the Unit,
the
price for the secured spring water ice cubes shall be that which
appears
in Annex A, which annex shall be transmitted by CANADA INC. within
thirty
(30) days following the installation of the Unit and the approval
by WBOA
of the first coffret of secured spring water ice cubes. The prices
shall
include among other things, the purchase of raw materials, labour,
spring
water, costs related to the manufacture of the secured spring water
ice
cubes, packaging, palettisation and warehousing of finished products
as
well as, as the case may be, the transport of same. WBOA shall
pay the
requested price, plus applicable
taxes.
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For
each
period of three (3) months, WBOA binds and obliges itself to order three
(3)
containers per month. In the event that WBOA fails to respect such minimum
order, it shall be held to pay to CANADA INC. a monthly rental as
follows:
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From
0 to 1 container per month:
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$5,000.00
per month
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·
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2
containers per month:
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$3,000.00
per month
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·
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3
containers and more:
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$00.00
per month
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For
the
purpose of calculating the monthly rental, it has been agreed that the
calculation of the monthly ordered containers shall be established every
three
(3) months for the first year following the installation of the Unit, and
every
six (6) months for the subsequent years. Thus, for example, in the event
that,
during the first two (2) months following the installation of the Unit, WBOA
does not order any containers but does order nine (9) containers during the
third (3rd)
month,
the monthly rental already invoiced shall then be credited.
Within
such period of thirty (30) days preceding the expiration of the three (3)
month
delay, or, as the case may be, the six (6) month delay as mentioned hereinabove,
the parties agree to confirm the price amongst themselves for the subsequent
period. In the event that the parties do not reach an agreement upon the
expiration of said delay, it has been agreed that the parties shall terminate
the present agreement. As such, WBOA shall, within a period of thirty (30)
days,
recover the Unit and pay the inventory of the consumables and the Products
at
cost price for the consumables, and for the price in effect for the Finished
Products. It has been agreed that during said period of thirty (30) days,
no
minimum rental shall be invoiced to WBOA.”
9.
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AMENDMENT
OF ARTICLE 4 OF THE
AGREEMENT
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9.1 |
The
parties agree and covenant to repeal 4.2 x) and xi) of the
Agreement.
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10.
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AMENDMENT
OF ARTICLE 5 OF THE
AGREEMENT
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10.1 |
The
parties agree and covenant to repeal Article 5 of the
Agreement.
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11.
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AMENDMENT
OF ARTICLE 6 OF THE
AGREEMENT
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11.1 |
The
parties agree and covenant to repeal Article 6.2 of the
Agreement.
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12.
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OTHER
PROVISIONS
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12.1 |
All
the other provisions of the Agreement shall remain
unchanged.
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IN
WITNESS WHEREOF,
the
parties have signed three original copies.
At
Trois-Rivières, on the 10th
of
October 2006.
WATER BANK OF AMERICA INC. | ||
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Per: | (SGD) | |
Xxxx-Xxxxxxxxx Xxxxxxx |
EAU DE SOURCE NATURELLE 83 PPM INC. | ||
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Per: | (SGD) | |
Bruno St-Onge |
ANTIROUILLE
MÉTROPOLITAIN
CANADA
LTÉE
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Per: | (SGD) | |
Bruno St-Onge |
GESTION BRUNO
ST-ONGE INC.
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Per: | (SGD) | |
Bruno St-Onge |
(SGD) | ||
XXXXXX XXXXXXXXXX |