Commitments, Significant Contracts and Contingencies [Text Block] |
16.
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Commitments, Significant Contracts and Contingencies
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Management and Service Agreements
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As at August 31, 2017, the Company is party to the following contractual commitments:
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Party
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Monthly Commitment
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Expiry Date
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C.A.B Financial Services
(1) (2)
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$12,000
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November 30, 2018 |
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Docherty Management Ltd.
(1) (2)
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CAD $15,000
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March 1, 2018 |
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M&E Services Ltd.
(1)
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CAD $8,000
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June 1, 2018 |
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Corporate Development
(3) (4)
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CAD $4,000
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Month to Month |
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Advisory Agreement |
CAD $4,000
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March 24, 2018 |
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Investor relations and communications – Alex Blanchard Capital
(1)
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CAD $7,500
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December 19, 2017 |
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Research & Development |
CAD $3,854
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June 19, 2018 |
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Revenue Incentive Milestones
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(1)
100,000
common shares issuable upon the Company achieving non-refundable revenues of $200,000
to any single customer in any consecutive
60
-day period for the first
12
months of the contract, plus a further
50,000
common shares issuable upon achieving non-refundable revenues of $200,000
to any single customer in any consecutive
60
-day period, during the 13th - 24th months of the contract. If the Company achieves non-refundable revenues of $500,000
in any fiscal quarter, a further
200,000
common shares may be issuable during the first
12
months of the contract and
100,000
common shares during the 13th - 24th months of the contract.
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Intellectual Property Milestones
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(2)
During the term of the agreement, for each provisional patent application substantively devised and successfully created, written, and filed with the U.S. Patent Office for the Company’s Technology,
250,000
restricted common shares of the Company will be issuable.
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Corporate Development Milestones
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(3)
For new customers sourced by the Consultant until July 10, 2017; for combined Lexaria Energy and ViPova products and including all combined sales efforts and/or technology licensing revenues, achieving non-refundable revenues of $200,000
to any single customer in any consecutive
60
-day period would result in a restricted common share award of
100,000
Company shares (not achieved); and, from July 11, 2017, until July 10, 2018; a restricted common share award of
50,000
Company shares may be achieved; this clause is limited to one payment per customer during the
12
-month period, but payable on each customer that meets these sales/licensing thresholds.
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(4)
For new customers sourced by the Consultant until July 10, 2017; for combined Lexaria Energy and ViPova products and including all combined sales efforts and/or technology licensing revenues, achieving non-refundable revenues of $500,000
in any fiscal quarter would result in a restricted common share award of
200,000
Company shares (not achieved); and, from July 11, 2017, until July 10, 2018; for combined Lexaria Energy and ViPova products and including all sales efforts, achieving non-refundable revenues of $500,000
in any fiscal quarter would result in a restricted common share award of
100,000
Company shares; this clause is limited to one payment per fiscal quarter.
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