14. Commitments

a) Effective January 1, 2022, as stipulated in each of their respective executive consulting agreements the CEO's monthly fee is $31,00 (C$40,000) and for the CFO $7,760 (C$10,000). The future minimum commitment under these consulting agreements, is as follows:

For the six-month period ending December 31, 2022

232,800

b) The Company has agreed to lease its office premises from Haute on a month-to-month basis, at the monthly rate of $6,208 (C$8,000). The Company is responsible for all expenses and outlays in connection with its occupancy of the leased premises, including, but not limited to utilities, realty taxes and maintenance.

c) Effective February 3, 2021, upon the successful completion of a Nasdaq listing, the Company has committed a payment of $300,000 to a consulting firm providing advisory and consulting services.

d) On November 5, 2021, the Company committed to the design and construction of its Hamilton, Ontario, Canada facility, including architectural and general consulting fees in the amount of $7,081,628 ($9,125,809).

e) The Company was assigned the land lease on the purchase of certain assets of Astoria Organic Matters Ltd., and Astoria Organic Matters Canada LP. The land lease, which comprises 13.88 acres in Roslin, Ontario, Canada, has a term expiring March 31, 2034. The basic monthly rent on the net lease is $2,328 (C$3,000) and is subject to adjustment based on the consumer price index as published by Statistics Canada ("CPI"). To date, no adjustment for CPI has been charged. The Company is also responsible for any property taxes, maintenance, insurance and utilities. In addition, the Company has the right to extend the lease for five further terms of five years each and one further term of five years less one day. As the Company acquired the business of 1684567, the previous landlord, in 2019, there are no future commitments for this lease.

The Company is responsible through a special provision of the site plan agreement with the City of Belleville (the "City"), Ontario, Canada, that it is required to fund road maintenance required by the City through to September 30, 2025 at an annual rate of $7,760 (C$10,000). The future minimum commitment is as follows:

For the six-month period ending December 31, 2022	$	7,760
For the year ending December 31, 2023		7,760
For the year ending December 31, 2024		7,760
For the year ending December 31, 2025		7,760
	$	31,040

g) PACE has provided the Company a letter of credit in favor of the MECP in the amount of $214,821 (C$276,831) and, as security, has registered a charge of lease over the premises, located at 704 Phillipston Road, Roslin, Ontario, Canada. The Company is required to provide for environmental remediation and clean-up costs for its organic waste processing and composting facility.

The letter of credit is a requirement of the MECP and is in connection with the financial assurance provided by the Company for it to be in compliance with the MECPs environmental objectives. The MECP regularly evaluates the Company's organic waste processing and composting facility to ensure compliance is adhered to and the letter of credit is subject to change by the MECP. As a result of audits conducted by the MECP in December of 2020, the Company has accrued estimated and actual costs for corrective measures as a result of the MECP's audits totaling $372,097 (C$479,506) (December 31, 2021-$334,498; C$424,059).

As at June 30, 2022, the MECP has not drawn on the letter of credit. The Company has been in discussions with its Canadian Chartered bank to obtain a new letter of credit for the new financial assurance with the MECP in the amount of $494,806 (C$637,637).