EnWave Corporation has signed its sixteenth royalty-bearing commercial license agreement with Agricola Industrial La Lydia.
La Lydia, a family-owned company with more than 70 years of experience in agricultural activities and livestock, is a leading global producer of golden pineapples and a leading Costa Rican milk producer. They currently cultivate 700 hectares of agricultural land.
La Lydia will produce a variety of fruit, vegetable and cheese products using EnWave's Radiant Energy Vacuum ("REV") technology and has agreed to pay EnWave a range of product specific quarterly royalties ranging between three and five percent of the wholesale value of each product. The License provides La Lydia with geographic processing exclusivity in Costa Rica, Nicaragua, Honduras, Panama, El Salvador, the Dominican Republic, Belize and Guatemala. This exclusivity will remain intact pursuant to La Lydia submitting its minimum royalty payments to EnWave.
In addition to signing the License, La Lydia has submitted a purchase order (the "Purchase Order") to EnWave for a small commercial REV machine. This machine will enable product development and small-scale commercial production. Delivery of this machine is expected in early 2016. In order to retain the geographic and product exclusivity granted in the License, La Lydia is also required to submit a purchase order within one year of the start-up of the small commercial REV unit for one 100kW or higher REV machine. A second purchase order is required for a 100kW or higher REV machine within eighteen months of the start-up. All other terms of the License and Purchase Order are confidential.