NOTE 9. SUBSEQUENT EVENTS

Mr. Zel C. Khan, the Company’s CEO’s employment contract has been revised.  His annual salary will now be the sum of ten dollars ($10.00) per annum, effective January 1, 2017.  This salary change will be effective until the end of the fiscal year 2017.

Effective April 11, 2017, the Company initiated a $2,000,000 Series A Convertible Preferred Stock (“Preferred Stock”) offering at a price of $10.00 per share.  This results in a 71.429-for-one basis based on the Company’s common stock market price of $0.14 per share on April 11, 2017.  The holders of Series A Preferred Stock are entitled to receive non-cumulative dividends at a rate of 9%.  The Preferred Stock will automatically convert into common stock when the Company’s common stock market price equals or exceeds $0.30 per share for 30 consecutive days.  Currently 23,000 shares or $230,000 of the offering has been issued.

Effective April 18, 2017, all non-insider owners of SUDS PORRI interests are authorized to convert those interests, at their sole discretion, to preferred shares in the Company in conjunction with the Company’s current Series A Preferred Stock Offering.