EXCLUSIVE SALES SUB-LICENSING AGREEMENT

9 Months Ended

Apr. 30, 2022

Exclusive Sales Sub-licensing Agreement

EXCLUSIVE SALES SUB-LICENSING AGREEMENT

Note 8 EXCLUSIVE SALES  SUB-LICENSING AGREEMENT

On April 19, 2022, DSI signed an exclusive sales and promotion sub-licensing agreement with Lucy Pet Products Inc. (“Lucy”) pursuant to which Lucy will manufacture, market and distribute pet products derived from the Cedoga intellectual property. The terms of the sub-licensing agreement are as follows:

● Lucy will pay the Company a one-time sub-license fee of $100,000 on execution of the sub-licensing agreement.

● Lucy will pay the Company royalties of 5% of Net Revenue, calculated and payable quarterly. Net Revenue is defined as total revenue less direct cost of materials, manufacturing, packaging and delivery expenses and less excise, sales or similar taxes.