Notes Payable:

2012

2011

Notes payable to a group of investors, interest payable quarterly in installments of approximately $46,500, with an annual interest rate of 12%. $249,703 of these notes has been extended and is due on January 12, 2012. The remaining $1,288,541 was paid on July 1, 2011.

$

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$

1,538,244

Note payable to the Company’s investment banker, interest payable quarterly in installments of approximately $6,600 with an annual interest rate of 12%. This note was paid on July 1, 2011.

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221,172

Note payable to a bank, due in monthly installments of $40,104 with an annual interest rate of 4.25%. This note is unsecured and matures September 1, 2013. (1)

584,625

1,030,009

Note payable to a bank, due in monthly installments of $10,355 bearing interest at 3.95% due July 15, 2014.

247,986

350,000

Note payable to a bank, due in monthly installments of $9,359 bearing interest at 4.9% due September 15, 2014

239,965

337,647

Note payable to a bank, due in monthly installments of $10,286 bearing interest at 4.39% due September 20, 2014, this note is a conversion of a multi-advance note payable initially put in place on September 21, 2010, secured by related capital equipment purchases.

264,496

209,472

Multi-Advance Note payable to a bank, interest payable in monthly installments of approximately $480 with an annual interest rate of 3.0% + LIBOR, currently 3.25%, advances convert to 3 year term notes annually, first term-out date will be February 2013, term notes bear interest at 3.0% + Bank’s 3 year money market rate, secured by related capital equipment purchases.

173,202

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