Item 1.02 Termination of a Material Definitive Agreement
On April 4, 2013, the Company arranged a debt swap under which a Special Situations Fund note for $40,000 was transferred to Asher Enterprises. The promissory note is unsecured, bears interest at 8% per annum. Any principal amount not paid by the maturity date bears interest at 22% per annum. During the nine months December 31, 2015 and 2014, the Company accrued $2,155 and $2,155 respectively in interest expense. After 180 days from issuance, the note may be converted at the option of the holder into common stock of the Company. The conversion price is 55% of the market price, where market price is defined as
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the average of the lowest three of the last ten closing trading prices on the OTCBB immediately prior to conversion date. At December 31, 2015, the note had a principal balance of $13,000, accrued interest of $8,008 and a derivative liability of $23,636. The company will retire this note, at no penalty, in full as of the date of this Board Resolution. There will be no more conversions, and all parties have agreed to cancel the note and its obligations entirely. This debt will be removed from our balance sheet.
On March 21, 2016, Mr. Edward Aruda, former CEO has signed an agreement to waive all of his unpaid salary and expenses to date in value of $8,000. This debt will be canceled and removed off the balance sheet.
On July 1, 2015, the Company entered into a Convertible Promissory Note with Santa Rosa Resources under which two notes issued to Syndication Capital were reassigned to Santa Rosa Resources in the sum of $30,000. The promissory note is unsecured, bears interest at 8% per annum, and matured on September 1, 2014. The Conversion Price shall mean par $.00001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933. At December 31, 2015, the note had a principal balance of $30,000 and accrued interest of $1,203. The company will retire this note at, no penalty, in full as of the date of this Board Resolution. There will be no more conversions, and all parties have agreed to cancel the note and its obligations. This debt will be removed from our balance sheet.
On March 21, 2016 Mr. Tim DeHererra, former CEO, has agreed to convert all of his outstanding salary and unpaid expenses to Preferred Series A Stock. The company has agreed to issue 200,000 shares of Preferred Series A stock to satisfy $358,459 of debt owed to Mr. DeHererra. The stock is locked-up for 24 months.
On March 21, 2016, Right Energy, Inc. has agreed to return and retire 60,000,000 shares of common stock that was issued on September 17, 2015, pursuant to the
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Farmout Agreement
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executed on September 14, 2015. The company has agreed to cancel all of the shares and return all of the 60,000,000 shares to the treasury.
The company has taken immediate action to make all of the adjustments for the quarter ending March 31, 2016.