Note 7. RELATED PARTY TRANSACTIONS

In October 2013, the Company signed a distribution agreement with Gran Nevada Beverage, Inc. (Gran Nevada), a related party through common ownership and management. The agreement provides the Company with the right to sell and distribute Gran Nevada's beverages in Texas and California with purchase prices at the same wholesale prices charged to Gran Nevada's other distributors. The agreement is for an initial term of five years with automatic renewals of successive five year terms unless terminated.