| Commitments, Significant Contracts and Contingencies [Text Block] |
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16.
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Commitments, Significant Contracts and Contingencies
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Management Agreements
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As at February 28, 2018, 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) |
$12,000
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November 30, 2018 |
| Docherty Management Ltd. (1) (2) |
CAD $15,000
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March 1, 2019 |
| M&E Services Ltd. (1) |
CAD $8,000
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June 1, 2018 |
| Corporate Development(3) (4) |
CAD $4,000
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Month to Month |
| Corporate Development(3) (4) |
CAD $1,000
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January 16, 2019 |
| Advisory Agreement |
CAD $4,000
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March 24, 2018 |
| Investor relations and communications – Alex Blanchard Capital(1) |
CAD $7,500
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Month to Month |
| Office Management (5) (6) |
CAD $6,500
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December 1, 2019 |
| Research & Development |
CAD $3,854
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June 19, 2018 |
Revenue Incentive Milestones
(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.
Intellectual Property Milestones
(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 for the first
12
months of the contract; 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, during the 13th - 24th months of the contract; 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 for the first
12
months of the contract; 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, during the 13th - 24th months of the contract; 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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Office Management Milestones
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(5)
Until December 1, 2018 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
would result in a restricted common share award of
75,000
Company shares; and from December 2, 2018, until December 1, 2019 for combined Lexaria Energy and ViPova products and including all sales efforts, achieving non- refundable revenues of $200,000
would result in a restricted common share award of
40,000
Company shares; this clause limited to one payment per customer during the
24
-month period, but payable on each customer that meets these sales/licensing thresholds;
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(6)
Until December 1, 2018 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
150,000
Company shares; and, from December 2, 2018, until December 1, 2019 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
80,000
Company shares; this clause limited to one payment per fiscal quarter;
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