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NOTES RECEIVABLE
12 Months Ended
Dec. 31, 2011
NOTES RECEIVABLE  
NOTES RECEIVABLE
NOTE 7 - NOTES RECEIVABLE

Notes Receivable - Related Party
 
The following is a summary of amounts due from related parties, including accrued interest separately recorded, as of December 31, 2011:

Related party
Nature of relationship
Terms of the agreement
Principal amount
Accrued Interest
         
Secure
eHealth
 
Secure eHealth was a 100% owned
subsidiary of the Company until
December 2011. (see Note 5) Scott Haire
is the managing member of Secure eHealth.
Unsecured line of credit
0% interest, due on demand.
$    293,233
$0
         
Commercial
Holding, AG
 
Commercial Holding AG, LLC has
provided previous lines of credit to
affiliates of WMT.
Unsecured note with interest
accrued at rate of 10% per annum,
due on demand.
500,000
 
 
8,472
         
MAH
Holding, LLC
 
MAH Holding, LLC has provided
previous lines of credit to affiliates
of WMT.
Unsecured note with interest
accrued at 10% per annum,
due on demand.
166,216
113,618
 
TOTAL
   
$959,449
$122,090


The following is a summary of amounts due from related parties, including accrued interest separately recorded, as of December 31, 2010:

Related party
Nature of relationship
Terms of the agreement
Principal amount
Accrued Interest
HEB, LLC
Scott Haire is the
managing member of HEB
Unsecured $800,000 line
of credit with interest
accrued at 10% per annum,
due on demand.
$13,782
$45,299

Notes Receivable
 
The Private Access Note is with an unrelated company and the loan of $1,500,000 accrues interest at 9% per annum from the day of purchase to the maturity date of July 31, 2013.  As of December 31, 2011 the Company has accrued $413,048 interest and has established an allowance for this same amount.  According to the terms of the Assignment and Assumption Agreement between VHGI, Private Access, Inc. ("Private Access") and the Company, VHGI assigned all rights, title and interest in the Private Access Note, including the right to serve as collateral agent for the collateral pledged as security by Private Access, to the Company.  Under the terms of the Security Agreement dated August 3, 2009, which was assigned to the Company by VHGI, the Company, along with other investors, holds pro rata security interests in all property of Private Access including its intellectual property.

The Company has five $50,000 5% secured notes, with the same unrelated party for a total balance of $250,000.  The notes were received as part of the June 21, 2011 note payable and warrant purchase agreement (see note 8).  Each $50,000 5% secured note receivable has a maturity date 49 months from the initial funding.  As of December 31, 2011, the principal balance receivable on these notes is $250,000.   As of this same date, $7,431 of interest receivable has been accrued.