NOTE 11 - NOTE PAYABLE - LINE OF CREDIT AND INSURANCE

Line of Credit:

The Company has a line of credit with Wells Fargo Bank. The line of credit provides for borrowings up to $40,000. The balance as of December 31, 2013 and December 31, 2012 was $39,979 and $37,028, respectively. The interest rate is the Prime Rate plus 3%. The CEO of the Company is the personal guarantor.

Insurance:

On March 1, 2012, the Company incurred additional short term financings of $4,436 for the purchase of Errors & Omissions insurance. The interest rate on the financing was 6.96% and will mature in February 2013. On August 31, 2012, the Company incurred short term financing of $5,794 for the purchase of Directors' & Officers' insurance. The interest rate on the financing was 6.96% and matured July 2013. As of December 31, 2013 and 2012, the balance on the notes incurred for insurance financing was $0 and $4,612, respectively.