NOTE 5. CONVERTIBLE NOTES PAYABLE - RELATED PARTY

	December 31, 2014		December 31, 2013
Balance due to a shareholder, unsecured, bears no interest until December 31, 2010 and 6% compounded monthly thereafter, with principal and interest due to be repaid in full at December 31, 2013. The principal balance is convertible at the option of the holder into shares of the Company's common stock at 50% of the lowest bid price of the Company's common stock in the 5 days prior to conversion, if quoted on an exchange, or if not quoted, at double the par value.	$	-	$	2,000

Balance due to a shareholder, unsecured, bears no interest until December 31, 2013 and 6% compounded monthly thereafter, with principal and interest due to be repaid in full at December 31, 2013. Any unpaid balance of principal or interest is convertible at the option of the holder into shares of the Company's common stock at $0.01 per share. (1)		-		4,000

On Balance due to a former related party who loaned the Company $3,225, net of $3,225 debt discount. The note is interest fee until June 30, 2015 after which time it bear interest at 6%. The note is convertible at the option of the holder into shares of Original Source Music, Inc. common stock. The number of issuable shares is equal to dividing the balance of the note by double the par value (currently $0.001).

Total	$	-	$	6,000

(1)

The convertible feature of the convertible note payable issued in the twelve months ended December 31, 2013 was valued at $16,000 on an intrinsic value basis. The valuation was based on the fact that 400,000 shares were issuable under the terms of note at $0.01 per share compared to the last cash price for the sale of the shares of $0.05. However, as the debt discount cannot exceed the face value of the loan note, $4,000 was recognized as a debt discount and amortized over the life of the loan note.

Effective March 5, 2014, both of these convertible notes payable - related party outstanding at December 31, 2013, were forgiven by the holder. The gain arising on forgiveness of these liabilities has been recognized in additional paid in capital.

On December 31, 2014 a former related party loaned the Company $3,255. The note is interest free until June 30, 2015 after which time it bear interest at 6%. The note is convertible at the option of the holder into shares of Original Source Music, Inc. common stock. The number of issuable shares is equal to dividing the balance of the note by double the par value (currently $0.001). The note has a balance of $3,225 as of December 31, 2014 and matures on February 28, 2016. The Company assessed the embedded conversion feature and determined that the fair value of the underlying common stock at inception exceeded the conversion price of this note and accordingly recorded at beneficial conversion feature (capped at proceeds received) of $3,255. Such beneficial conversion feature is accounted for as a debt discount which is amortized to interest expense, using the effective interest rate method, over the life of the note.