NOTE 9 – RELATED PARTY TRANACTIONS

In November 2014, the Company issued 2,500,000 shares of common stock to one shareholder for $25,000 in cash.

In March 2015, the Company entered into a new employment agreement with the Company’s CEO, Larry M. Reid. Under the agreement, Mr. Reid agreed to remit 2.0 billion shares of common stock back to the Company in exchange for 200,000 shares of Series C Convertible Preferred stock with a fair value of $252,000 as well as compensation stated in the agreement. The common stock remitted to the Company was recorded as a treasury acquisition for the value of the Series C preferred stock and the net present value of Mr. Reid’s salary over a five years using a discount rate of 5%, totaling approximately $627,000. The treasury stock was subsequently retired and recorded to additional paid-in capital.

As of September 30, 2016 and 2015, the Company has unsecured notes payable to stockholders totaling $132,676 and $95,001, respectively. These notes range in interest from 8% to 15% which are payable quarterly. All of these notes mature December 31, 2017.

During the year ended September 30, 2016, the Company issued an unsecured 8% promissory note to a stockholder, officer and director for $50,000

During the year ended September 30, 2016, a shareholder, officer and director converted $10,000 of a Note Payable into 500,000 shares of common stock

Under the terms of an employment agreement effective on November 28, 2016, Mr. Moore as CEO receives an annual salary of $200,000. The term of agreement is for a one-year period beginning on the effective date and shall automatically renew andcontinue in effect for additional one-year periods.

Under the terms of an employment agreement effective on March 13, 2015, Mr. Reid as CFO receives an annual salary of $96,000. The term of agreement is for a one-year period beginning on the effective date and shall automatically renew andcontinue in effect for additional one-year periods.