14. |
Commitments and Contingencies: |
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The Company has entered into certain
consulting agreements which carry commitments to pay advisors and consultants should certain events occur. An agreement
is in place with one Company Advisor that calls for total compensation over the four year Advisor Agreement of 500,000
warrants with an exercise price of $.15 of which 300,000 have vested, should the advisor complete the entire term of the
engagement, 150,000 warrants will vest on July 24, 2020, and the remaining 50,000 on July 24, 2021.
Additional Consulting agreements
call for two Individual Consultants to receive cash and stock bonuses for directly assisting the Company in hitting certain
operational milestones, such as national television publicity, achieving revenues of $500,000 monthly, $1,000,000 monthly,
and $3,000,000 quarterly.
CEO Sean Folkson has a consulting
agreement which will reward him with 1,000,000 warrants at a strike price of $.50 when the Company records its first quarter
with revenues over $1,000,000, and an additional 3,000,000 warrants with a $.50 strike price when the Company records
its first quarter with revenues over $3,000,000.
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