NOTE 9 – COMMITMENTS AND CONTINGENCIES

An employment agreement with the former CEO of the Company, which was terminated in 2017, provided this individual with salary, car allowances, bonuses based on the Company reaching certain milestones, life insurance, stock options and a death benefit.

The Company has recorded approximately $1,043,000 and $872,000 at December 31, 2017 and 2016, respectively, under accrued expenses for any amounts that may be owed under this agreement.