NOTE 6 – NOTES PAYABLE

On June 27, 2012 an accredited investor loaned the Company $10,000 at a rate of 1.5% interest per month payable monthly. Between July 13, 2012 and July 24, the investor advanced a further $15,000 for a total indebtedness of $25,000 on the same terms. At September 30, 2012 there was an accrued interest balance of $25.

On August 30, 2012 an accredited investor entered into an arrangement with the Company to loan up to $100,000 on a revolving basis at a rate of 2.5% per month based on purchase orders or invoices that have not been previously factored. The terms call for interest payments at the time of receipt of funds from the invoices submitted as evidence. At September 30, 2012 there was outstanding principal and interest of $85,755. The initial deposit for this loan came via the Company’s President and CFO pursuant to the investor, who is a foreign national, setting up an appropriate entity to handle further transactions. Further, the Company’s President and CFO has personally guaranteed the loan on behalf of the Company.

At September 30, 2012 and December 31, 2011, the balance due on all notes payable was $110,755 and $0, respectively.