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Note 6 - Related Party Transactions
12 Months Ended
Dec. 31, 2015
Notes  
Note 6 - Related Party Transactions

NOTE 6 – RELATED PARTY TRANSACTIONS

 

Executive Offices

 

The Company's executive offices are located at 150 Research Dr., Hampton VA. These offices are leased by The Health Network, Inc. ("THN"), of which Ron Howell is President. THN allows the Company to use the office space without a formal sublease or rental agreement.

 

The Company currently accrues $0.00 per month as a general operating fee, which covers use of the office space, use of certain equipment, and various other services.  At December 31, 2015 and 2014, the Company owes THN an amount of $365,462 and $365,462 respectively, for amounts due under this agreement.

 

Consulting Agreements

 

The Company has entered into a consulting agreement with Mr. Howell, President of the Company, whereby the Company agreed to pay Mr. Howell $10,000 per month for consulting services through December 31, 2010.  Mr. Howell received 714,286 shares of common stock valued at $120,000 as a partial payment for amounts owed under this agreement.  The consulting agreement may be terminated at will by the Company.  The Company intends to continue to engage Mr. Howell as a consultant until his consulting services are no longer required.  Mr. Howell received 1,000,000 shares of common stock valued at $40,000 in February of 2011 as partial payment for amounts due under this agreement.  As of December 31, 2015 and 2014, the Company owes Mr. Howell $680,000 and $560,000, respectively under the agreement.

 

The Company has entered into a consulting agreement with Eric Clemons, a shareholder of the Company, whereby the Company agreed to pay Mr. Clemons $10,000 per month for consulting services through December 2009.  This employment agreement carried the provision that it could be extended beyond this date upon mutual agreement by both parties and that the agreement could be canceled by the Company at any time after that date.  Mr. Clemons received 1,471,419 shares of common stock valued at $103,000 as a partial payment for amounts owed under this agreement in January of 2010.  The Company continued to accrue amounts owed under this agreement through July of 2010.  The balance owed to Mr. Clemons at December 31, 2015 and December 31, 2014 is $70,000 and $70,000, respectively under this agreement.  The Company disputes this amount and is currently assessing legal issues surrounding this obligation.