SHAREHOLDER LOAN

6 Months Ended

Jun. 30, 2011

5.	SHAREHOLDER LOAN

In March 2011, the Company placed $100,000 in promissory notes with a shareholder who is a qualified investor. The notes were unsecured and provided for accrued interest of prime plus 3% (6.25% as of June 30, 2011) payable on maturity of June 30, 2011. In April 2011, $50,000 of the amount owed was converted to the terms of the Convertible Debenture Series 2011. The balance of $50,000 was extended under the same terms until September 30, 2011. Accrued interest of $796 was paid in cash on June 30, 2011.