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Related Party Disclosures
6 Months Ended
Jun. 30, 2011
Related Party Disclosures  
Related Party Transactions Disclosure [Text Block]

NOTE D – RELATED PARTIES

 

Pursuant to the Asset Purchase Agreement between the Company and Reunion, Reunion paid to the Company, among other consideration, cash of $100,000 and a note payable from Reunion in the principal amount of $200,000, secured by 36,500,000 newly issued shares of common stock. The Company used the $100,000 cash proceeds from that transaction to pay off debt owed to Pam J. Halter, who served as Secretary and a Director of the Company from 2005 to 2010. In addition, the Company, for consideration, endorsed the note over to Ms. Halter with full recourse. On February 7, 2011, Ms. Halter, for consideration, granted Reunion an extension of time to March 7, 2011 to retire the debt. Subsequently said date was extended to April 18, 2011 under an oral agreement with Ms. Halter. Pursuant to the terms of the extension and oral agreement, Reunion agreed to assume certain obligations of the Company including legal, audit, office, and certain other expenses incurred by the Company totaling $26,407. In addition, certain members of Reunion agreed to reclassify loans made to the Company in the amounts of $10,050 as paid in capital.  Reunion defaulted on the single Note payment due April 18, 2011 and, on April 19, 2011, Ms. Halter foreclosed on the collateral under a mutual consent with Reunion.  By mutual oral consent the parties agreed to forebear implementation of the foreclosure until May 8 to give Reunion additional time to fund its obligation.  Payment did not occur by such date, and the foreclosure became complete.  As part of the consent agreement, ULB was conveyed to Reunion and Reunion agreed to assume any and all liabilities of ULB.

 

During the six months ended June 30, 2011, Bon Amour advanced the Company $15,000 in the form of direct payments to certain vendors to the Company.  The advances are non interest bearing and due on demand.

 

Other related party payables totaling $39,813 were contributed to capital.

 

Bon Amour, the Company’s majority shareholder, provides office space for the Company at no charge.

Management considers the Company's current office space arrangement adequate.