Note 5 Note Payable – Officers, Directors and Related Parties

Officer loans are demand notes totaling $177,171 and $177,347, respectively, as of March 31, 2017 and December 31, 2016. These notes provide for interest at 12% per annum and are unsecured. Notes payable to the Directors resulted in interest charges of $5,244 and $11,699 for the periods ended March 31. 2017 and December 31, 2016, respectively. Other related party notes totaled $59,470 at March 31, 2017 for loans from a person who is neither an officer or director.

Related party notes payable as of March 31, 2017and December 31, 2016 consists of the following:

Description	March 31, 2017		December 31, 2016
Notes payable – Director bearing interest at 12% per annum, unsecured, demand notes.	$	60,000	$	60,000
Note payable - Officer bearing interest at 12% per annum, unsecured, demand note		57,701		53,501
Note payable – other bearing interest at 12% per annum, unsecured, demand note.		59,470		63,846
Total	$	177,171	$	177,347

The first note in the amount of $60,000 provides for interest at 12% per annum and is unsecured. This note resulted in an interest charge of $19,876 accrued and unpaid at December 31, 2016.

The second note was increased by loans of $30,557 and $33,000 during the period ended December 31, 2016. A repayment of $20,000 was made in December 2016.which decreased the total note to $53,501 as of December 31, 2016. Another loan was made in February 2017 in the amount of $4,200. The note is an unsecured demand note and bears interest at 12% per annum. This note resulted in an interest charge of $7,496 accrued and unpaid at March 31, 2017.

The third note is from a related party and has a current balance of $59,470 as of March 31, 2017. The note is an unsecured demand note and bears interest at 12% per annum. This note resulted in an interest charge of $7,013 accrued and unpaid at March 31, 2017.