Related Party Transactions

9 Months Ended

Sep. 30, 2012

Related Party Transactions:

Related Party Transactions

Note 4:  Related Party Transactions

For 2012 and 2011, the sole officer and director of the Company has provided office space at no cost to the Company.

Between August 2005 and September 2006 Capital Builders, Inc., a company owned and controlled by Kip Eardley, an officer and director of the Company, advanced $50,000 to the Company.  On October 23, 2006, the Company entered into a Debt Settlement Agreement with Capital Builders whereby all of the debt was exchanged for 1,000,000 Series E Preferred Shares.  Each Series E Share has voting rights equal to 10 shares of common stock, are not convertible into any other class of stock of the Company and have no preference to dividends or liquidation rights.

On September 30, 2011, loans from Capital Builders in the total amount of $10,900 were converted to a promissory note.  On December 30, 2011, funds loaned during the quarter from Capital Builders were converted to a promissory note in the amount of $1,500.  On March 31, 2012, funds loaned during the quarter from Capital Builders were converted to a promissory note in the amount of $16,335.  On June 30, 2012, funds loaned during the quarter from Capital Builders were converted to a promissory note in the amount of $500.  On July 23, 2012, funds were loaned by Capital Builders and converted to a promissory note in the amount of $6,000.  All of the money was used to pay operating expenses.  All of the notes accrue interest at 2% annually until repaid.  Accrued interest on these notes at September 30, 2012, and December 31, 2011, was $406 $55, respectively.