10. Related Party Transaction
On May 22, 2012 the Company borrowed $32,714 from the related party at 10% interest due on demand. On September 17, 2012 the Company borrowed an additional $22,033 from the same related party with the interest at 10% due on demand.
On January 13, 2012 the Company entered into a 12 month unsecured promissory note in the amount of $211,000 with a related party. Interest shall accrue in arrears on the principal of this Note outstanding from time to time at the rate of ten percent (10.00%) per annum. Interest shall be payable on the last day of each quarter, commencing March 30, 2012, and continuing until the Maturity Date. Should Maker fail to pay the entire Loan and accrued interest by the Maturity Date, Maker agrees that the interest rate shall increase to Twelve percent (12.00%) per annum.