RELATED PARTY TRANSACTIONS | NOTE 4 RELATED PARTY TRANSACTIONS Related Party Debt The Company has entered into promissory notes (each a Note and collectively the Notes) with related parties, Terayco Enterprises, LTD. (Terayco) and A. Terry Ray (Terry Ray). Terayco (the Holder) is a corporation owned by Phillip E. Ray, the husband of A. Terry Ray, and A. Terry Ray, the principal shareholder of the Company. Terry Ray (the Holder) is the principal shareholder of the Company. As of June 30, 2021 and December 31, 2020, the Company was indebted to Terayco and Terry Ray in the aggregate principal amount of $81,500 $81,500 The details of each note, still outstanding, by the year of issue is as follows: 2012: ● $7,000 At the time of issue, the terms of the Note where it matured in two years 4% The principal amount of the Note may be prepaid by the Company, in whole or in part without premium or penalty, at any time. Upon any prepayment of the entire principal amount of the Notes, all accrued but unpaid interest shall be paid to the Holder on the date of prepayment. The Note becomes due and payable immediately upon the failure by the Company to pay within five (5) days of the due date of any amount of the principal or accrued interest on the Note. The unpaid principal on these Notes shall be convertible, at the sole and exclusive option of the Holder, prior to the payment in full of the principal and interest outstanding under the Notes into common stock of the Company. The Holder of the Note must give ten (10) days advanced written notice to the Company of its intention to convert the Note, unless agreed to otherwise by the parties. The number of shares issuable upon any optional conversion hereunder, whether the entire Note or any part thereof, shall be equal to that number of shares of common stock of the Company that results from dividing the amount of the Note to be converted by $0.01 At the time of issue, the terms of the Note were it matured two years from the date of issuance at which time the outstanding principal amount of the Note and all accrued and unpaid interest thereon was due and payable by the Company. The Note is interest free for the first year from issuance, after which time it bears interest at the rate of 4% per annum. Interest is accrued and compounded monthly and becomes payable on the maturity date. On December 31, 2013 the Company entered into an agreement with Terayco to issue 50,000 shares, at par value of $.001 of common stock of the authorized but unissued stock of the company to amend the $7,000 note to remove the optional conversion and extend the maturity date and the interest date to December 31, 2018. The shares were issued February 15, 2014. The note was amended on December 31, 2018 to extend the maturity date and the interest date to December 31, 2020. The note was further amended on December 31, 2020 to extend the maturity date and the interest date to December 31, 2023. 8 2014: ● A convertible promissory note was issued to Terayco on December 31, 2014 in the amount of $14,000 At the time of issue, the terms of the Note were it matured two years 4% The principal amount of the Note may be prepaid by the Company, in whole or in part without premium or penalty, at any time. Upon any prepayment of the entire principal amount of the Notes, all accrued but unpaid interest shall be paid to the Holder on the date of prepayment. The Note becomes due and payable immediately upon the failure by the Company to pay within five (5) days of the due date of any amount of the principal or accrued interest on the Note. The unpaid principal on these Notes shall be convertible, at the sole and exclusive option of the Holder, prior to the payment in full of the principal and interest outstanding under the Notes into common stock of the Company. The Holder of the Note must give ten (10) days advanced written notice to the Company of its intention to convert the Note, unless agreed to otherwise by the parties. The number of shares issuable upon any optional conversion hereunder, whether the entire Note or any part thereof, shall be equal to that number of shares of common stock of the Company that results from dividing the amount of the Note to be converted by $0.01 On December 31, 2015 the Company entered into an agreement with Terayco to issue 50,000 $.001 $14,000 The shares were issue on January 10, 2016 The note was amended at December 31, 2018 to extend the maturity date and the interest date to December 31, 2020. The note was further amended on December 31, 2020 to extend the maturity date and the interest date to December 31, 2023 2015: ● A promissory note was issued to Terayco on July 23, 2015 in the amount of $5,500 The note matures December 31, 2018. The note is interest free until December 31, 2018 after which time it will bear interest at the rate of 4% The principal amount of the Note may be prepaid by the Company, in whole or in part without premium or penalty, at any time. Upon any prepayment of the entire principal amount of the Notes, all accrued but unpaid interest shall be paid to the Holder on the date of prepayment. The note was amended on December 31, 2018 to extend the maturity date and the interest date to December 31, 2020. The note was further amended on December 31, 2020 to extend the maturity date and the interest date to December 31, 2023. 9 2019: ● A promissory note was issued to A. Terry, the Company President, on September 10, 2019 in the amount of $33,000 The note matures December 31, 2020. The note is interest free until December 31, 2020 after which time it will bear interest at the rate of 4% The note was amended on December 31, 2020 to extend the maturity date and the interest date to December 31, 2023 ● A promissory note was issued to A. Terry Ray on July 27, 2020 to replace a prior note $22,000 4% The following table summarizes the issue period of each outstanding note as of: December 31, June 30, 2021 2020 December 31, 2012 $ 7,000 $ 7,000 Terayco International December 31, 2014 $ 14,000 $ 14,000 Terayco International July 15, 2015 $ 5,500 $ 5,500 Terayco International September 10, 2019 $ 33,000 $ 33,000 Terry Ray November 23, 2020 $ 22,000 $ 22,000 Terry Ray TOTAL $ 81,500 $ 81,500 Other Related Party Transactions During the six months ended June 30, 2021 and 2020, the Company paid a total of $0 $2,000 |