On May 2, 2011, JBI, Inc. (“ JBI ” or the “ Company ”) and Smurfit-Stone Container Corporation (“ Smurfit-Stone ”) entered into a Referral Agreement (the ‘ Agreement ”). Pursuant to the Agreement, Smurfit- Stone shall refer to JBI selected clients (“ Smurfit-Stone Clients ”) that may be producing significant amounts of plastic feedstock to assess the potential use of the plastic feedstock in JBI’s Plastic2Oil™ process. Upon each introduction of a Smurfit-Stone Client to JBI, JBI shall asses, in its commercially reasonable discretion, whether such Smurfit-Stone Client generates a sufficient amount of plastic feedstock to ensure that at least one JBI Plastic2Oil™ processor operating at such Smurfit-Stone Client’s facility will be able to operate at a minimum capacity of (10 metric tons/day).
Upon the determination that such Smurfit- Stone Client generates a sufficient amount of plastic feedstock at its facility to ensure that at least one Plastic2Oil™ processor will operate at full capacity, JBI shall notify Smurfit-Stone of this determination and attempt to negotiate an agreement with the Smurfit-Stone Client, on terms satisfactory to JBI in its sole discretion to have JBI; (i) install at least one Plastic2Oil™ processor at such Smurfit Stone Client’s facility; and (ii) sell the fuel produced by the Plastic2Oil™ processor to the Smurfit-Stone Client or to third parties.
Pursuant to the Agreement, Smurfit-Stone shall be paid five (5%) percent of the Gross Revenue (as defined in the Agreement) or (5%) of the Third Party Gross Revenue (as defined in the Agreement) realized from the sale of Plastic2Oil™ fuel produced at the Smurfit-Stone Client’s facility.
The foregoing description of the Agreement is not intended to be complete and is qualified in its entirety by the complete text of the Agreement attached as an exhibit to this Current Report on Form 8-K.
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