NOTE 11 - LOANS PAYABLE - 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 will mature July 2013. As of December 31, 2012 and 2011, the balance on the notes incurred for insurance financing was $4,612 and $4,174, respectively.