Note 5. Note Payable, Related Party

3 Months Ended

Mar. 31, 2015

Notes

Note 5. Note Payable, Related Party

NOTE 5.                      NOTE PAYABLE, RELATED PARTY

At March 31, 2015, note payable, related party consists of a note payable to the former controlling stockholder in the principal amount of $135,494.  The note bears interest at 5.76% per annum, is due February 12, 2016, and is secured by the Company’s 40% interest in Ananda.  The Company may elect to fully satisfy the outstanding principal and accrued interest by transferring the Company’s 40% interest in Ananda to the former controlling stockholder.  The former controlling stockholder may also elect to accept the transfer of the Company’s 40% interest in Ananda in full satisfaction of the unpaid principal and accrued interest.

Additionally, the Company has appointed the former controlling stockholder as proxy to act on behalf of the Company with respect to the Company’s ownership interest in Ananda.  The proxy extends to all actions, other than “extraordinary actions” defined in the Proxy Agreement.