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Note 4 - Commitments and Contingencies
9 Months Ended
Jul. 31, 2020
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

Note 4 – Commitments and Contingencies

 

On March 31, 2020, and as amended on June 2, 2020, the Company entered into the Amended Service Agreement with QuikfillRx, whereby QuikfillRx agreed to provide the Company with to the Services, consisting of sales management, website development and design, graphics, content, public communication, social media, management and analytics, and market and other research. The Services will be provided by QuikfillRx as requested from time to time by the Company.

 

As a result of the First Amendment, “General Compensation” consists of the following: (i) for the Services (as defined in the Service Agreement) provided in March 2020, the Company paid QuikfillRx an amount equal to $86,000; (ii) for the Services provided in April 2020, the Company paid QuikfillRx an amount equal to $100,000; (iii) each calendar month commencing May 2020 through October 2020, the Company will pay QuikfillRx an amount equal to $125,000 per month for the Services to be performed during such calendar month; (iv) if the parties agree to extend the term of the Service Agreement beyond the original expiration date of October 31, 2020, then for the period between November 1, 2020 and October 31, 2021, the Company will pay QuikfillRx $125,000 per month for the Services to be performed during such calendar month; and (iv) if the parties agree to extend the term of the Service Agreement beyond October 31, 2021, then for the period between November 1, 2021 and October 31, 2022, the Company will pay QuikfillRx $150,000 per month for the Services to be performed during such calendar month. 

 

In addition, pursuant to the Amended Service Agreement, the Company will pay QuikfilRx an amount equal to 0.9% of the Applicable Gross Quarterly Sales, which amount shall, at the Company’s option, be paid in (a) cash or (b) shares of the Company’s common stock, or (c) a combination of cash and common stock, subject to certain conditions, and an amount equal to 0.27% of the Applicable Gross Quarterly Sales, which amount must be paid in cash.