VirTra Inc (VTSI)

[TEEROY]

the royalty structure may have changed since they are being installed in a third party venue but am not sure.

Item 1.01Entry into a Material Definitive Agreement.

On August 23, 2017, we entered into a Standard Location Agreement (the “Agreement”) with Lucky Strike Albany, L.L.C. and Lucky Strike Jillian’s, L.L.C. (each, an “Initial Location” and collectively, the “Initial Locations”), pursuant to which we will permit the Initial Locations, as well as any future locations added to the Agreement, to operate our shooting lounge simulators (the “Machines”).

Pursuant to the terms of the Agreement, during the initial two-year term, each Initial Location will pay us a percentage of Gross Revenue (as defined in the Agreement). Following the initial term, the Agreement will automatically renew for one-year periods.

The Agreement is subject to revenue commitments, based on the Gross Revenue of each Initial Location, and exclusivity provisions, based on the number of Machines at each Initial Location. We will bear the costs of procuring, installing, and maintaining the shooting lounge equipment and accessories to operate the Machines. The Initial Locations will bear the costs of infrastructure, furniture, and operating the lounges within their facilities.

https://www.sec.gov/Archives/edgar/data/1609319/000156459017018157/ck0001609319-8k_20170825.htm