China De Xiao Quan Care Grp Co Ltd (CDXQ)

[Rich]

Note 3 . Notes Payable

On April 11, 2012, GankIt signed a promissory note with Hillsmere S.A. in the amount of $50,000. The note bears interest at a rate of 15%, and becomes due and payable on April 10, 2014 and is collateralized by all of the assets of the Company. As of February 28, 2014, the principal balance outstanding was $50,000 and accrued, unpaid interest of $14,167. No interest or principal payments on this note have been made since its inception . On April 4, 2014, the maturity date was extended to April 4, 2015.

On June 21, 2013, Gankit signed a Master Credit Agreement with Levantera, SA, a company formed under the laws of the Marshall Islands, to provide a lending facility of up to $1 million. The Company has the right to periodically prepare a Borrowing Certificate (a “Certificate”) drawing upon this facility. At the end of each fiscal quarter, the Lender may prepare an Evidence of Indebtedness, setting forth advances, payments and interest accruals made during that quarter. Each Certificate and the interest accrued thereon is due one year after the date of the Evidence of Indebtedness. Interest accrued on un-matured amounts is 12% per year. Matured, unpaid amounts accrue interest at 18% per year. As of February 28, 2014, we have borrowed $150,000 on this facility and accrued $11,367 in interest. No interest or principal payments have been made as of February 28, 2014. Subsequent to our most recent borrowing tranche cash receipt on November 30, 2013, we have requested additional funds on this facility which have not arrived. We conclude therefore, that no additional funds are likely to be received pursuant to this financing facility.

On November 17, 2013, the Company signed a $50,000 promissory note with Shield Investments, Inc. and received the proceeds on November 22, 2013. The note is collateralized by all of the assets of the Company, matures on May 17, 2014 and accrues interest at 15% per year for unmatured amounts and 25% (or the highest amount allowed by law) on matured, unpaid amounts. As of February 28, 2014, we have not paid any interest or principal, and we have accrued $2,039 in interest.

On January 13, 2014, the Company signed a $50,000 promissory note with Shield Investments, Inc. and received the proceeds on January 29, 2014. The note is collateralized by all of the assets of the Company, matures on January 13, 2015 and accrues interest at 15% per year for unmatured amounts and 25% (or the highest amount allowed by law) on matured, unpaid amounts. As of February 28, 2014, we have not paid any interest or principal, and we have accrued $616 in interest.

On February 10, 2014, the Company signed a $50,000 promissory note with Shield Investments, Inc. and received the proceeds on February 12, 2014. The note is collateralized by all of the assets of the Company, matures on February 10, 2015 and accrues interest at 15% per year for unmatured amounts and 25% (or the highest amount allowed by law) on matured, unpaid amounts. As of February 28, 2014, we have not paid any interest or principal, and we have accrued $329 in interest.

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