NOTE 4 – EQUIPMENT DEPOSITS – RELATED PARTY

The Company paid deposits on equipment to Water Engineering Solutions, LLC, a related party, as follows: May 1, 2014 $690,000, June 27, 2014 $21,500, July 1, 2014 $115,000 August 7, 2014 $10,000, August 5, 2014 $5,000, August 19, 2014 $2,000 and August 22, 2014 $100,000. The Company received equipment valued at $274,769 and reduced the deposit on equipment. As of September 30, 2014, the total amount of deposits for equipment is $668,772. The equipment is being manufactured by and under an exclusive manufacturing contract from Water Engineering Solutions, LLC, an entity that is controlled and majority owned by Steven P. Nickolas and Richard A. Wright, for the production of our alkaline water.