On March 31, 2015, Empowered Products, Inc. entered into a shareholder loan agreement with Scott Fraser (the Lender), who holds a majority of the company's issued and outstanding common stock and is the company's president and chief executive officer. Under the terms of the agreement, the Lender agreed to provide the company with a $250,000 loan, which bears interest at a rate of 2.35% per annum, calculated yearly. The loan will be repaid in five consecutive yearly installments of principal and interest beginning on the first anniversary of the agreement.

The company may prepay the outstanding balance without penalty at any time while not in default. The loan may be accelerated if the company is in default of the agreement, including where the company fails to make a payment or perform any of its obligations, any representation made in connection with the agreement is materially incorrect or misleading, or if the company is dissolved, has a petition for bankruptcy filed against it, any of its material assets are attached, or if any event analogous to the preceding events occurs. The loan is secured by the accounts receivable and inventory of the company.