Related Party Transactions

9 Months Ended

Aug. 31, 2015

8.	Related Party Transactions

(a)

During the nine months ended August 31, 2015, the Company incurred $nil (2014 - $4,597) of management fees to the former Chief Financial Officer (“CFO”) of the Company and a company controlled by the former CFO of the Company. As at August 31, 2015, the company controlled by the former CFO of the Company owed $798 (Cdn$1,050) (November 30, 2014 - $927 (Cdn$1,050)) to the Company.

(b)

On December 4, 2009, the Company entered into a loan agreement with the former President and Chief Executive Officer (“CEO”) of the Company for $7,000 which is payable on the earlier of December 4, 2010 or within seven days of the Company completing a financing in excess of $800,000. The amount is unsecured and bears interest at 5% per annum. On December 4, 2010, the Company extended the maturity date of the loan to December 4, 2013. On August 26, 2011, the Company repaid $2,000 of the loan by issuance of 20,000 common shares at $0.0001 per share resulting in a loss on settlement of $52,000.

(c)

During the nine months ended August 31, 2015, the Company incurred $22,500 (2014 - $15,000) of management fees to the former CEO of the Company. As at August 31, 2015, the former CEO of the Company owed $16,831 (November 30, 2014 - $21,722) to the Company. These amounts are unsecured, non-interest bearing, and due on demand.

(d)

During the nine months ended August 31, 2015, the Company incurred $6,000 (2014 - $4,000) of management fees to the former Vice President of Finance of the Company. As at August 31, 2015, the Company owed $20,731 (November 30, 2014 – $14,731) to the former Vice President of Finance. These amounts are unsecured, non-interest bearing, and due on demand. On December 15, 2014, the former Vice President of Finance of the Company terminated her employment agreement with the Company. On March 2, 2015, the Company entered into a settlement agreement for unpaid wages and expenses for $16,731, of which $4,731 was due on March 15, 2015, and $2,000 due monthly thereafter. As the Company failed to make the payments as scheduled, a one-time penalty of $4,000 was incurred and is payable to the former Vice President of Finance of the Company.

(e)

During the nine months ended August 31, 2015, the Company incurred $39,000 (2014 - $nil) of management fees to the Chief Financial Officer (“CFO”) of the Company. As at August 31, 2015, the Company owed $18,754 (November 30, 2014 - $7,018) of management fees and $350 (November 30, 2014 – $100) of administrative expenses to the CFO of the Company. These amounts are unsecured, non-interest bearing, and due on demand.

(f)

During the nine months ended August 31, 2015, the Company incurred $36,000 (2014 - $nil) of management fees to the President and CEO of the Company. As at August 31, 2015, the Company owed $48,000 (November 30, 2014 - $12,000) to the President and CEO of the Company. These amounts are unsecured, non-interest bearing, and due on demand.

(g)

As at August 31, 2015, the Company owed $12,000 (November 30, 2014 - $12,000) to a company controlled by the President and CEO of the Company. These amounts are unsecured, non-interest bearing, and due on demand.

(h)

As at August 31, 2015, the Company owed $27,468 (Cdn$36,137) (November 30, 2014 - $32,558 (Cdn$36,137)) to the President and CEO of the Company. These amounts are unsecured, non-interest bearing, and due on demand.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References + Details

CHUMA HOLDINGS, INC. 10-Q