Convertible Notes Payable – Related Party.

As of

December 31, 2019,

the amount of convertible debt principal, on the Company's balance sheet was

$444,581.

The total balance of the principal for convertible promissory notes as of

September 30, 2020,

$632,814.

This amount consisted of the following convertible promissory notes payable to Dr. Stephen T. Chen, Chairman, CEO, President, and CFO, and

i2China,

a consultant, as shown in the table below.

Note #.	Conversion Rate		Interest Rate			September 30, 2020		December 31, 2019
Note 1 - Chen	$	0.1680		0.75	%	$	114,026	$	114,026
Note 2 - Chen	$	0.1875		0.65	%	$	262,500	$	262,500
Note 3.19 - Chen	$	0.2500		1.85	%	$	39,620	$	39,620
Note 4.19 - Chen	$	0.2500		1.61	%	$	12,436	$	12,453
Note 5.19 – i2China	$	0.2500		1.85	%	$	16,000	$	16,000
Note 6.20 - Chen	$	0.2500		1.85	%	$	162,450	$	-
Note 7.20 - Chen	$	0.2500		1.60	%	$	1,782	$	-
Note 8.20 – i2China	$	0.2500		1.85	%	$	24,000	$	-
Total Convertible Notes – Related Party						$	632,814	$	444,581

Dr. Stephen T. Chen, Chairman, CEO, President, and CFO, and

i2China

Management Group, LLC, the Company's management consultant, elected to defer cash compensation during a period of development and fundraising. The parties received convertible promissory notes in consideration of the deferrals.

January 1, 2020,

the Company issued Note

#6.20

for deferred compensation to Dr. Stephen T. Chen, Chairman, CEO, President, and CFO, in the amount of

$216,600,

the maximum amount of cash compensation that could be deferred for

2020.

The Note is payable on

January 1, 2021,

or on demand and bears interest at the AFR

short-term rate of

1.85%.

The note is an advancing note with a maximum limit of

$216,600

whereby the Company promises to repay the aggregate Principal Amount advanced to date up to the stated maximum amount at Maturity.

Applicable Federal Rate - the minimum interest rate that the Internal Revenue Service (IRS) allows for private loans. The IRS publishes a monthly set of interest rates that the agency considers the minimum market rate for loans, whereas, interest rates less than the AFR would have tax implications.

ABI

may

request and the payee shall advance up to

$9,025

on the

15th

and last day of each month until the note matures. The Note

may

be convertible in whole or in part at a conversion price of

$0.25

per share into Amarillo Biosciences, Inc., Common voting stock. All shares issued are to be restricted subject to Rule

144

promulgated under the U.S. Securities Act of

1933.

The Company

may

prepay the Note in whole or in part at any time without penalty.

January 1, 2020,

the Company issued Note

#7.20

to Dr. Stephen T. Chen for deferred reimbursement of expenses advanced on behalf of ABI for

$30,000,

the maximum amount of reimbursable expense that could be deferred. The Note is payable on

January 1, 2021,

or on demand and bears interest at the AFR

short-term rate of

1.85%.

The note is an advancing note with a maximum limit of

$30,000

whereby the Company promises to repay the aggregate Principal Amount advanced to date up to the stated maximum amount at Maturity. ABI

may

request and the payee shall advance against the Note, until Maturity, the amount submitted on a completed and approved reimbursement form along with documentation of the amount to be advanced. The Note

may

be convertible in whole or in part at a conversion price of

$0.25

per share into Amarillo Biosciences, Inc., Common voting stock. All shares issued are to be restricted subject to Rule

144

promulgated under the U.S. Securities Act of

1933.

The Company

may

prepay the Note in whole or in part at any time without penalty.

January 1, 2020,

the Company issued Note

#8.20

for deferred compensation to

i2China

Management Group, LLC in the amount of

$48,000,

the maximum amount of cash compensation that could be deferred in

2020.

The Note is payable on

January 1, 2021,

or on demand and bears interest at the AFR

short-term rate of

1.85%.

The note is an advancing note with a maximum limit of

$48,000

whereby the Company promises to repay the aggregate Principal Amount advanced to date up to the stated maximum amount at Maturity. ABI

may

request and the payee shall advance up to

$4,000

on the last day of each month until the note matures. The Note

may

be convertible in whole or in part at a conversion price of

$0.25

per share.

The notes are unsecured and are due on demand. All shares issued on conversion are to be restricted subject to Rule

144

promulgated under the U.S. Securities Act of

1933.

The Company

may

prepay the notes in whole or in part at any time without penalty. The convertible notes due to Dr. Chen are related party notes.