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6 RELATED PARTY TRANSACTIONS

3 Months Ended

Mar. 31, 2017

6. RELATED PARTY TRANSACTIONS

*Notes Payable/Related Parties Summary*
*As of March 31, 2017*
	*Note*			*Issuance*	*Unpaid*
*Noteholder*	*Amount*			*Date*	*Amount*
Shannon Masjedi		$	150,000	12/10/2010		$	89,243
Albert Masjedi		$	500,000	6/1/2016		$	342,772
Marc Shenkman		$	10,000	3/14/2013		$	6,000
Marc Shenkman		$	16,000	9/9/2014		$	10,000
Marc Shenkman		$	10,000	2/21/2016		$	10,000

Total		$	686,000			$	458,015

The following description represent note payable-related party transaction pre-reverse merger between Snöbar and the Company that were assumed by the Company as a condition to the merger agreement:

On December 10, 2010, Shannon Masjedi, Company President, Chief Executive Officer and Interim Chief Financial Officer, provided a loan of $150,000 to MAS Global Distributors in the form of an unsecured promissory note with an interest rate of 3% per month and an unspecified term. The note has subsequently been modified to provide a maturity date of December 31, 2018. The principal balance of this note as of December 31, 2016 and March 31, 2017 was $89,243. No notice of default has been given.

On June 1, 2016 Snöbar Holdings entered into a promissory note with Azizolla Masjedi, father-in-law to Shannon Masjedi, in an amount of $500,000 to purchase all the shares and interests of International Production Impex Corporation ("IPIC"). The note matures on December 31, 2017. As of December 31, 2016 and March 31, 2017 the balance on this note was $392,772 and $342,772, respectively.

On March 14, 2013, Snöbar Holdings entered into an unsecured promissory note with a Marc Shenkman, Company Chairman of the Board of Directors. The note had a principal balance of $10,000 with an interest rate of 5% per year, and an original maturity date of March 14, 2014, subsequently extended to December 31, 2020 with a reduced interest rate of 2% per year. Mr. Shenkman also agreed to make all interest retroactive and payment deferred to maturity. The note had an outstanding balance of $6,000 as of December 31, 2016 and March 31, 2017.

On September 9, 2014, Snöbar Holdings entered into a second unsecured promissory note with Marc Shenkman, through his affiliate company Entrust Group for a total amount of $6,000 and a third unsecured promissory note for a total amount of $10,000, both at an annual interest rate of 2%. No term was provided for in each note, but Mr. Shenkman has subsequently agreed to a maturity date of December 31, 2020, and the accrual of interest rate and payment deferral to maturity. As of December 31, 2016 and March 31, 2017 the notes had balances of $10,000 in each period.

The following transactions are post-merger and recorded directly with the Company:

On February 21, 2016, Marc Shenkman paid a legal bill of $10,000 on behalf of the Company without executing a promissory note, however, the Company has recorded the value as if it were a promissory note at an interest rate per year of 2%. As of December 31, 2016 and March 31, 2017 the note had a balance of $10,000.

As of December 31, 2016 the Company has short term Notes Payable to Related Parties of $0 and long term Notes Payable to Related Parties of $458,015.

On March 14, 2013, Snöbar Holdings entered into an unsecured promissory note with a certain unrelated third party, who is now a shareholder of the Company. The note had a principal balance of $86,821 with an interest rate of 5% and had a maturity date of March 14, 2014. The note's maturity date has subsequently been extended to February 1, 2020. Interest owing on the note was extinguished in a subsequent extension of the term. The note is current and the entire balance is still owed and outstanding.

From 2012 through December 31, 2016, Shannon Masjedi has provided an unsecured credit line to the Company, payable on demand without interest. As of March 31, 2017, the balance under the credit line was$136,945.

We believe that each reported transaction and relationship is on terms that are at least as fair to us as would be expected if those transactions were negotiated with third parties.