COMMITMENTS | NOTE 11 – COMMITMENTS Employment Agreements In May 2011, the Company entered into employment agreements with its chief executive officer, president and chief financial officer. The Agreements were for a term of five years (ending on May, 31, 2016). During the nine-months ended September 30, 2016, the Company accrued a total of $150,000 as management fees in accordance with the terms of these agreements. In August 2012, the Company entered into employment agreements with the president and chairman of the board of Greenway Innovative Energy, Inc. for a term of five years with compensation of $90,000 per year. In September 2014, the president’s employment agreement was amended to increase his annual pay to $180,000. On April 30, 2015, accrual on the Greenway Innovative Energy chairman of the board agreement ceased due to his absence from the Company for more than a year. During the nine-months ended September 30, 2017, the Company paid $120,000 and accrued $135,000 for the Greenway Innovative Energy president. During the nine-months ended September 30, 2016, the Company paid $45,000 and accrued $135,000 for the Greenway Innovative Energy president. In the August 2012 acquisition agreement with Greenway Innovative Energy, Inc., the Company agreed to issue an additional 7,500,000 shares of restricted common stock when the first portable GTL unit is build and becomes operational and is capable of producing 2,000 barrels of diesel or jet fuel per day, and pay Greenway Innovative Energy a 2% royalty on all gross production sales on each unit placed in production. In October 2015, the Company entered into a two-year lease for approximately 1,800 square feet a base rate of $2,417 per month. During the nine-months ended September 30, 2017, and 2016, respectively, the Company expensed $31,388 and $21,753. The Company has a minimum commitment for 2017 of approximately $11,160 in annual maintenance fees for its United States Bureau of Land Management (“BLM”) mining lease, which are paid in August 2017. Once the Company enters the production phase, royalties owed to the BLM will be equal to 10% of production. There is no actual lease agreement with the BLM, the Company files an annual maintenance fee form to hold the claims. Legal On April 22, 2016, the Company filed suit under Cause No. DC-16-004718, in the 193rd District Court, Dallas County, Texas against Mamaki of Hawaii, Inc. (“Mamaki”), Hawaiian Beverages, Inc.(“HBI”), Curtis Borman and Lee Jenison (collectively, the “Defendants”) for breach of a Stock Purchase Agreement dated October 29, 2015, wherein the Company sold its shares in Mamaki to HBI for $700,000 (along with the assumption of certain debt). The Defendants failed to make payments of $150,000 each on November 30, 2015, December 28, 2015, and January 27, 2016. On January 13, 2017, the Company executed a Settlement and Mutual Release Agreement with the Defendants. The Defendants subsequently failed to make payments pursuant to the provisions of the Settlement and Mutual Release Agreement. Due to the bankruptcy proceedings with respect to Curtis Borman, further action in the proceeding has been stayed. On September 14, 2017, In The Third Judicial District Court Of Salt Lake County State Of Utah, Tonaquint, Inc., a Utah Corporation, filed suit against Greenway Technologies, Inc., (F.K.A. UMED Holdings, Inc.), under Case No. 170905756. Pursuant to a Securities Purchase Agreement (the "Purchase Agreement") between Tonaquint, as buyer, and UMED, as seller, Tonaquint acquired a Convertible Promissory Note (the "Note"), issued by UMED, and a Warrant to Purchase Shares of Common Stock (the "Warrant"). The Warrant allegedly provided Tonaquint with "the right to purchase at any time on or after September 18, 2014a number of fully paid and non assessable shares of UMED's common stock equal to $47,400.00 divided by the Market Price (as defined in the Note, as of September 18, 2014, as such number may be adjusted from time to time pursuant to the terms and conditions of this Warrant to Purchase Shares of Common Stock." Greenway Technologies disputes that it has any obligation to issue shares pursuant to the Warrant. The parties have agreed to mediate the dispute. |