Sustainable Green Team, Ltd. signed a Letter of Intent to expand its global presence in Jamaica, Trinidad, Bahamas, and Barbados. The LOI outlines the proposed terms of a manufacturing, distribution, and sales relationship between the two parties. Under the terms of the LOI, Sustainable Green Team, Ltd. will grant its exclusive right to manufacture, distribute, and sell its products, HUMISOIL, XLR8 Bio, and other mutually agreed-upon products in the designated territories.

Upon closing on a Definitive Agreement, SGTM's subsidiary SGTM-VRM, LLC and the Caribbean Partner ("Partner") will work to establish manufacturing facilities, implement marketing and distribution strategies, and ensure the successful launch of the products in the market. The collaboration agreement has three phases: PHASE I: Developing and testing a sales, marketing, and distribution strategy for Humisoil and XLR8 in the designated territories. Partner will purchase a standard package of SGTM-VRM products to begin the manufacturing process, expect PHASE 1 completion by the end of second quarter-2024.

PHASE II: Knowledge and technology transfer from SGTM to Partner, enabling and establishing the infrastructure for manufacturing, distribution, and sales of HUMISOIL® and XLR8®Bio, within the territories. The expectation of PHASE II completion is by the end of third quarter-2024. PHASE III: Scaling up the manufacturing, sale, and distribution of SGTM-VRM products, focusing on waste mitigation, odor elimination, bio-cleaning, and soil regeneration.

PHASE III expects to commence by August 2024, with a projected revenue of over $80 million from July 2024 to June 2027. The pricing structure will involve the Caribbean Partner purchasing SGTM's manufactured products wholesale. At the same time, the Partner will pay SGTM a revenue share or licensing fee for any products the Partner manufactures.

This LOI establishes an initial term of five years from the execution of the Definitive Agreement, with automatic one-year renewals based on mutually agreed-upon thresholds. The Definitive Agreement will outline the obligations and terms of the relationship, including a manufacturing, sale, and distribution agreement and a license agreement.