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Related Party Transactions
12 Months Ended
Dec. 31, 2017
Notes to Financial Statements  
Note 3. Related Party Transactions

As of December 31, 2017 and 2016, notes payable to related parties totaled $268,328 and $178,328, respectively. These amounts are owed to Doug Beplate, our Chief Executive Officer. During the years ended December 31, 2017 and 2016, Mr. Beplate provided loans to the Company of $111,500 and $66,138, respectively. These loans were for operating expenses of the Company, are due on demand and have no interest rate.

 

In January 2015, the Company entered into an employment agreement with Douglas Beplate with a monthly salary of $8,333, which was later increased to $15,000. Mr. Beplate is entitled to an annual restricted stock bonus equal to 2 ½% of gross sales with the number of shares computed based upon the average closing sales price of the Company's common stock in the month of December of each year. No stock bonus related to gross sales was accrued for 2016 or 2017 as such stock bonuses were immaterial and were waived by Mr. Beplate. Upon the sale of all or substantially all of the assets of the Company or other change in control or merger transaction in which the Company is involved, Mr. Beplate will be rewarded with a number of shares of restricted common stock of the Company which equals 5% of the then outstanding shares of the Company's common stock on a fully diluted basis. During the year ended December 31, 2017, he received $93,500 of compensation and the remaining balance of $86,500 has been recorded as accrued liabilities – related party on the balance sheet.

 

In November 2014, the Company entered into employment agreement with Nate Knight, our Chief Financial Officer. Mr. Knight received 500,000 shares as a signing bonus and a monthly salary of $4,000 (which has been increased to $5,000) pursuant to his employment agreement, which is also terminable "at will." The spouse of our Chief Executive Officer entered into an employment agreement for her services in November 2014 as an office administrator and she received as an employee "at will" 500,000 shares as a signing bonus and a monthly salary of $4,000 (which has been increased to $5,000).