Synertec Corporation Limited announced that it has entered into a perpetual and exclusive Intellectual Property ("IP") Licence Agreement for the use of Sichuan GreenTech Environmental Technology Co., Ltd.'s ("GreenTech") Composite Dry Power ("CDP") technology. Further to the ASX Announcement on 4 August 2021, Synertec confirms that the condition to the extension of the secured loan funding provided by Synertec to GreenTech has been satisfied. The condition to extension was the entry into the IP Licence Agreement between GreenTech and Synertec under which Synertec has the right to access, use, copy, modify, adapt, exploit, reproduce, publish and communicate (including the right to sub-license those rights) GreenTech's intellectual property rights and associated rights of any kind in respect of the drying and/or processing technology for the treatment (by the use of CDP) of water based sludge or sulphonated mud and/or the harmless treatment for oil based drilling rocks cuttings, and all related technologies, devices, processes or techniques and any improvements to any of the foregoing ("GreenTech IP"). The new Licence Agreement will replace the existing worldwide licence agreement that GreenTech and Synertec are parties to, and which expires in September 2022. Key elements of the Licence Agreement include: The Licence Agreement is perpetual, and provides Synertec with exclusive use of GreenTech's CDP intellectual property within Australia, New Zealand, Canada, North America, Central America and South America. Synertec will pay an upfront Licence fee to GreenTech by extinguishing AUD 600,000 of the secured loan, with GreenTech having repaid the remaining balance of AUD 200,000 plus interest on the secured loan upon signing of the Licence Agreement. Synertec will make a further two milestone payments of 2.5 million fully paid ordinary shares each (at an equivalent value of 10 cents per share) after 3 and 5 years respectively, based on revenue hurdles of $2 Million by year 3 and $5M by year 5 being achieved. The milestone payments each represent 0.7% of Synertec's current issued capital, and will not be subject to any voluntary escrow period. There are no ongoing royalty fees associated with the Licence Agreement. The Licence Agreement may be terminated by mutual agreement. At the time of entering into the Licence Agreement GreenTech repaid the remaining balance of the loan, which along with the upfront Licence Fee that Synertec paid to GreenTech to extinguish part of the loan, the loan has now been fully repaid by GreenTech.