Item 1.01 Entry into a Material Definitive Agreement.
On January 31, 2023, Midwest Energy Emissions Corp., along with its wholly-owned
subsidiary, MES, Inc. (together, the "Company"), entered into a License and
Supply Agreement with Dakin Holdings Ltd., a company incorporated in Barbados
("Dakin"), effective as of January 1, 2023 (the "Dakin Agreement"), pursuant to
which Dakin has granted to the Company (i) a limited license to manufacture and
produce for Dakin products (the "Products") comprising certain intellectual
property owned by Dakin as described below (the "Dakin IP"), and (ii) an
exclusive license to commercialize the Licensed IP in the United States. Dakin
is a company owned and controlled by Richard MacPherson, the Company's Chief
Executive Officer and President. The Dakin Agreement is for a term of ten years
unless terminated earlier under certain circumstances as set forth therein.
Under the Dakin Agreement, Dakin shall purchase from the Company 100% of Dakin's
requirements for the Products containing the Dakin IP for all sales of the
Products outside of the United States, subject to the availability of the
products from the Company, at a pricing formula set forth in the Dakin
Agreement. The Company shall pay Dakin a license fee of $12,500 per month for a
three-year period commencing as of the effective date, and pay Dakin a royalty
on all sales of the Products made by the Company in the United States. The
Company has also agreed to provide Dakin with technical support as requested by
Dakin at such technical support rates set forth in the Dakin Agreement subject
to adjustment.
The License IP consists of a proprietary compound of materials engineered to
treat a boiler to improve the combustion process and thereby reduce overall
emissions, while improving boiler efficiency during the combustion of all types
of fuels at power plants.
The foregoing description of the Dakin Agreement is qualified in its entirety by
the full text of such document which is filed as Exhibit 10.1 to this report and
incorporated by reference into this Item 1.01
Item 9.01 Financial Statements and Exhibits.
Exhibit Number Description
10.1* License and Supply Agreement among Dakin Holdings Ltd., Midwest
Energy Emissions Corp. and MES, Inc. dated as of January 31, 2023
104 Cover Page Interactive Data File (embedded within the Inline XBRL
document)
* Filed herewith.
2
© Edgar Online, source Glimpses