Item 1.01 Entry into a Material Definitive Agreement.
On October 10, 2022, Veritec, Inc. ("Company") entered into a License and
Distributor Agreement ("License Agreement") with Nugen Universe, LLC ("NU"). The
License Agreement is for a period August 10, 2022 (effective date) through
August 31, 2027, and grants NU a Worldwide license and distribution for the
Company's blinxPay Close-Loop Virtual Wallet and blinxPay Open-Loop Visa Debit
and all hardware products of the Company.
NU shall pay the the Company a one-time license payment of $1,000,000 for the
right to market the Company's products noted above, of which $200,000 was
received by the Company. The remaining balance of $800,000 is scheduled to be
paid as outlined in the License Agreement. In addition to the one-time license
payment, EU agrees to pay a minimum monthly support fee plus 5% royalty from all
sales of products noted above.
The foregoing descriptions of the License Agreement do not purport to be
complete and are qualified by reference to the full text of such agreements,
which are attached to this Current Report on Form 8-K as Exhibits 10.1 and is
incorporated herein by reference.
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