NOTE 9 – DISTRIBUTION AGREEMENT WITH A RELATED ENTITY

On March 1, 2014, the Company entered into a subcontractor installer agreement with Smartgen, a related entity that is engaged in business of equipment rental and provider of maintenance, repair and installation services to mobile telecommunications towers in California. Under the terms of the agreement, Smartgen has been appointed as a non-exclusive, authorized service provider for the installation, repair and service of the Company’s products in Southern California. The agreement has a term of three years from the date of execution and automatically renews for additional one-year periods if not terminated.

During the years ended December 31, 2017 and 2016, Smartgen performed $186,392 and $111,684, respectfully, in field services.

During the year ended December 31, 2016, Smartgen purchased $0 in goods, parts and services from the Company and $1,136 in goods, parts and services during the year ended December 31, 2017.