NOTE 16 - SUBSEQUENT EVENT

On January 1, 2015, the Company issued a promissory note to First State Compassion Center Inc. in the amount of $1,100,000. The note carries a 12.5% interest rate and is due on December 31, 2019. During 2015, the note will act as a revolving credit line. Whatever the outstanding balance is eight months from the date of execution shall be fixed as the amount due and payable of the note, not to exceed $1,100,000.

First State Compassion Center is the tenant of the building which we are currently sub leasing but planning on acquiring during the year. The company entered into an Agreement of Sale to purchase the building for $1,695,000. The purchase in contingent upon the tenant securing licenses and permits for the growing and sale of medical marijuana in the state. If the tenant is unable to secure the appropriate licenses, the Agreement of Sale is null and void.