NOTES PAYABLE - Note 7

9 Months Ended

Sep. 30, 2013

Notes to Financial Statements

NOTES PAYABLE - Note 7

NOTE 7 - NOTES PAYABLE

There was note issued to CNCG as part of the Company acquisition of Portables, with an original face amount of $500,000, term from October 11, 2011 to October 11, 2014, and annual interest rate of 2.0%. The outstanding balance of the note is $205,937. As of November 25, 2013, the note is in default.

The Company issued a note for $870,000 on or about June 1, 2010 to the prior shareholders of Nollec Wireless as part of the acquisition consideration for Nollec Wireless. The outstanding balance of the note is $145,000 as of September 30, 2013; the note carries an interest rate 6% per annum. As of November 25, 2013, the note is in default.