Note 6- Music Catalog: Music Catalog Policy (Policies)

9 Months Ended

Sep. 30, 2013

Policies

Music Catalog Policy

The music catalog arises from the merger of D & B Music, Inc. into the Company on June 1, 2013. D & B Music, Inc. (formerly D & B Records, Inc.) has the worldwide rights to reproduce and distribute 41 fully produced titles. The cost of $356,841 represents the assumption by the Company of a promissory note, originally dated February 1, 2009, payable in the amount of $242,000 to Pegasus Group, Inc., together with the assumption of accrued and unpaid interest thereon through June 30, 2013 of $114,841. Interest continues to be payable at the rate of 10% per annum while the principal under the note is still outstanding.