COMMITMENTS [Text Block] |
7. |
COMMITMENTS |
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a) Consulting agreements:
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The non-independent directors of the Company executed consulting agreements with the company on the following terms:
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The Company executed an employment agreement with the CEO of the Company which term extends to June 30, 2018. The CEO is to be paid an annual salary of $150,000
(CAD $200,000) plus benefits. In addition, the Company will pay a performance bonus of
3% of net profits before taxes and granted
1,150,000
stock options with a five- year expiry term. The Company must pay
4
months of pay for termination without cause.
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Effective July 21, 2016, Bryan Ganz was elected as a director of the Company. Prior to his appointment, effective May 1, 2016, the Company executed a one-year consulting agreement with Northeast Industrial Partners, LLC (“NEIP”), a Corporation in which the said director has an ownership interest. In January, 2017, the Company issued
589,414
common shares at a deemed price of $0.1142
per share to satisfy the payment of USD $50,000
due on November 15, 2016. In March 2017, the Company made the third share issuance and issued
503,251
common shares at a deemed price of $0.0994
per share to satisfy the payment of USD $50,000
due on February 15, 2017. In May 2017, the Company made the fourth and final share issuance and issued
534,941
common shares at a deemed price of $0.0935
per share to satisfy the payment of USD $50,000
due on May 15, 2017. Effective May 1, 2017, the Company and NEIP renewed the agreement for the period of time until such date as either of them terminates the original contract on not less than
15
days prior written notice to the other party. For services rendered by NEIP during the extension, SDI shall pay NEIP $62,500
within
15
days following every consecutive three-month period during the extension. All payments of the consulting fee during the extension shall be made by the issuance of common shares in the capital of SDI.
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Effective January 1, 2017, the Company executed a one-year service agreement with NEIP a Corporation in which Bryan Ganz, Director has an ownership interest to pay compensation of $7,500
per month. The said Corporation will assist the Company with administrative services which will include accounting, production, inventory management and human resources. The agreement is for a period of one year and can be terminated by either party by giving
60
days’ notice in writing.
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Effective April 2014, SDI executed an agreement with a non-related consultant to set up its social media sites and optimization of search engines for the Company, at a start- up fee for $2,250
(CAD$3,000) (Phase 1) and payment of $2,250
(CAD$3,000) per month and issued
150,000
stock options at $0.32
(CAD$0.38) when Phase 2 of the project was implemented. Either party can terminate the agreement by giving
30
days’ notice.
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b) The Company has commitments for leasing office premises in Oakville, Ontario, Canada to April 30, 2018 at a monthly rent of $4,800
(CAD $6,399).
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c) Effective January 1, 2017, the Company executed a commercial lease for leasing warehouse space in Perry, Florida. The lease is for an initial three-year term at a monthly lease payment of $3,250. The said lease can be renewed for an additional three-year term with a
10% increase.
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