Note 13 - Related Party Transactions

3 Months Ended

Mar. 31, 2012

Notes

Note 13 - Related Party Transactions

NOTE 13 – RELATED PARTY TRANSACTIONS

During the three month period ended March 31, 2012:

In January of 2012 two individuals who are related to the Company’s CEO entered into a subscription agreement to purchase 1,250,000 shares of the Company’s restricted common stock at a price of $0.004 per share and the Company received proceeds of $5,000.

In January of 2012 the Company entered into a convertible loan agreement in the amount of $50,000 with two individuals who are related to the Company’s CEO. This loan pays interest at a rate of 8% per annum and the principle and accrued interest are due on or before July 18, 2012. The note is secured and is convertible at the lender’s option into shares of the Company’s common stock at a rate of $0.004 per share.

The Company had an ongoing agreement to pay a person who is related to the Company’s CEO a minimum of $3,000 per month for providing various administrative, clerical, office management and consulting services. The Company also agreed to pay the related party consultant additional cash and/or stock based compensation at its discretion based on additional time that the consultant spent rendering services. The agreement is verbal and may be terminated by the Company or the consultant at any time. In January 2012, the Company issued 1,000,000 shares of its restricted common stock to the related party consultant. The shares were recorded as an expense of $7,900 in consulting and contractor fees in the accompanying income statement. All fees paid to the related party consultant during the three month period ended March 31, 2012 are included as an expense in consulting and contractor fees in the accompanying income statement. At March 31, 2012 the Company owed the consultant $2,000 for past services rendered. This amount is included in accounts payable and accrued liabilities in the accompanying balance sheet.

The Company paid a limited liability company that is controlled by a person who is related to the Company’s CEO a total of $6,000 to provide background research, background checks and investigative information on individuals and companies, and act as an administrative specialist to perform administrative duties and clerical services. The consultant provided the services under the direction of the Company’s CEO. All fees paid to the related party consultant during the three month period ended March 31, 2012 are included as an expense in consulting and contractor fees in the accompanying income statement.

The Company has an ongoing agreement with a limited liability company that is owned and controlled by a person who is related to the Company’s CEO to provide stock transfer agency services. At March 31, 2012, the Company owed the limited liability company $22,114 for transfer agency services rendered, legal fees and other services. This amount is included in accounts payable and accrued liabilities in the accompanying balance sheet.

At March 31, 2012 the following promissory notes and shareholder loans were outstanding to related parties:

A convertible note payable dated January 9, 2009, due to a person related to the Company’s CEO with a face amount of $10,000. This note bears interest at a rate of 10% per annum with interest payment to be paid monthly and is convertible at the note holder’s option into the Company’s common stock at $0.015 per share.  The convertible note payable was due on or before January 9, 2010 and is secured.  This convertible note payable is currently in default due to non-payment of principal and interest.

A convertible loan dated January 25, 2010, in the principal amount of $6,000 with a person who is related to the Company’s CEO. This loan pays interest at a rate of 6% per annum and the principle and accrued interest are due on or before January 25, 2011. The note is not secured and is convertible at the lender’s option into shares of the Company’s common stock at a rate of $0.005 per share. This loan is currently in default due to non-payment of principal and interest.

A loan agreement dated February 24, 2010, the principal amount of $7,500 with a corporation. The Company’s CEO is a director of the corporation and a former Director of the Company is an officer of the corporation. The loan is not secured and pays interest at a rate of 6% per annum and the principle and accrued interest were due on or before February 24, 2011. This loan is currently in default due to non-payment of principal and interest.