LexReal, LLC; Promotional Container, Inc.(PCI)and James Bonn.
James Bonn
Trade debt 516,026.25
Lex Real Co., LLC
Trade debt 151,147.00
Promotional Containers, Inc.
Trade debt 500,000.00
RELATED PARTY TRANSACTIONS
During the course of normal business, LEXREAL, LLC (LEXREAL), a Kentucky limited liability company, paid for goods and services for the benefit of the Company in the amount of $2,057,340.
LEXREAL is owned by the Company's president and majority stockholder, James N. Turek.
During the period ended March 31, 2006, $801,825 of debt was forgiven by LEXREAL.
The Company removed the obligation and increased paid-in capital to reflect this transaction. Additionally, the Company negotiated the remaining balance of $1,786,841 with LEXREAL as a note payable, bearing no interest, with a due date of December 31, 2010.
[...]
In January 2005, the Company obtained certain assets (molds, sales contract, customer base, and patents) from a related party, Promotional Container, Inc. (PCI)
PCI is owned by James N. Turek, Sr., the Company’s president and majority stockholder. Consideration to PCI consisted of a promise to exchange 100,000,000 shares of preferred stock (recorded as $360,000 of preferred stock subscribed in the accompanying balance sheet) in the Company by May 2007 and a promise to pay $500,000 (non-interest bearing) by May 2006. Due to common control, paid-in capital was reduced by $860,000 to record the transaction.
As of March 31, 2006 and December 31, 2005, the Company owed a balance of $500,000 to Promotional Containers, Inc. as a result of the acquisition. During the period ended March 31, 2006, the Company successfully negotiated the extension of the note with a due date of December 31, 2010.
On January 3, 2006, James N. Turek, Sr., the Company’s president and majority stockholder, forgave approximately $5,980,000 of obligations consisting of notes payable, accrued interest, and accrued salaries and bonuses. The Company removed the obligations and increased paid-in capital to reflect the transaction.
On January 3, 2006, James Turek, II, the son of the Company’s president, forgave certain liabilities, which included compensation and interest owed to him, of approximately $344,000. The agreement to forgive such liabilities was subsequently revoked and the Company has reinstated the amounts due.
On January 3, 2006, James Bonn, the Company’s secretary, forgave certain liabilities which included interest owed to him, amounting to $344,034.
The agreements from James Turek II and James Bonn to forgive such liabilities were subsequently revoked and the Company has reinstated the amounts due.
Additionally, the Company successfully negotiated an extension of the notes with the parties with a due date of December 31, 2010.
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