Hempacco, High Sierra enter joint venture agreement

On November 17, 2022, the Company’s wholly-owned subsidiary, High Sierra Technologies, Inc., a Nevada corporation executed a Joint Venture Agreement with Hempacco Co., for the production, marketing, and sales of hemp smokables that will use the Company’s patented and patent-pending technologies, as well as certain patented and patent-pending technologies held by Hempacco. Pursuant to this Joint Venture Agreement, HSTI and Hempacco formed a new Nevada corporation known as Organipure. HSTI and Hempacco each own one-half of the equity interests in Organipure. In connection with the execution of the Joint Venture Agreement, Hempacco also entered a Hemp Smokables Manufacturing Agreement with Organipure, pursuant to which Hempacco will act as Organipure’s exclusive worldwide manufacturer and supplier of hemp smokables, subject to the terms and conditions of the Manufacturing Agreement. The hemp smokables will be manufactured according to product specifications and packaging described in the Manufacturing Agreement. Also, in connection with the execution of the Joint Venture Agreement, HSTI entered into a Patent License Agreement with Organipure, which granted Organipure a non-exclusive license of HSTI’s patented and patent-pending technologies to be used in connection with the hemp smokable products to be produced, marketed, and sold by Organipure. The annual license fee will be 5% of Organipure’s gross receipts from the use of the HSTI patents by Organipure. The term of the license expires December 31, 2033, unless terminated earlier for reasons specified in the HSTI Patent License Agreement. Similarly, Hempacco entered into a Patent License Agreement with Organipure which granted to Organipure a non-exclusive license of Hempacco’s patented and patent pending technologies to be used in connection with the hemp smokable products. The annual license fee will be 5% of Organipure’s gross receipts from the use of the Hempacco patents by Organipure. The term of the license expires December 31, 2033, unless terminated earlier for reasons specified in the Hempacco Patent License Agreement.