CirTran Corporation (CIRX)

[MFlores]

On May 1, 2009, PlayBev, a consolidated variable interest entity, entered into compensation agreements with its managers, Mr. Hawatmeh and Mr. Nora. The agreed compensation consists of a monthly fee of $10,000 for each manager, reimbursement of reasonable expenses on its behalf, a car allowance for Mr. Nora of $1,000 per month to cover the cost of use, fuel and repairs. The Company has accrued $924,000 and $672,000 in compensation, which is included in related-party payables as of December 31, 2012 and 2011, respectively.

And Playbev has no operations.

From Note 4 of the recent 10K filing:

"PlayBev still has no operations of its own and the Company is providing all or a majority of the operating activity of PlayBev. These costs are being pushed through the credit facility."