NOTES PAYABLE

9 Months Ended

Sep. 30, 2011

NOTES PAYABLE

NOTES PAYABLE

NOTE 7- NOTES PAYABLE

Notes Payable - Related Parties

Funds are advanced to the Company from various related parties including Scott A. Haire, the Company's Chairman, and entities controlled by him.  Other shareholders may fund the Company as necessary to meet working capital requirements and expenses.  The following is a summary of amounts due to related parties, including terms of the debt, and the interest accrued as of September 30, 2011:

Related party	Nature of relationship	Terms of the agreement	Principal	Interest
H.E.B., LLC, a Nevada limited liability company	Scott Haire is the managing member of HEB.	Unsecured, two separate $1,000,000 open lines of credit, no maturity date, and interest  at 10% per annum.  Aggregate amount of line available at September 30, 2011 is $1,582,525.	$ 417,475	$ 266,175
SWCC	Investor  in eHealth	Dated 7/21/06, no stated interest rate and  no maturity date.	21,900	-
Wound Management Technologies, Inc.	Scott Haire is an officer and director of both WMT and VHGI.	Unsecured note with interest accrued at a rate of 10% per annum with no maturity date.	45,664	4,418
Commercial Holding AG, LLC	Commercial Holding AG, LLC has provided previous lines of credit to affiliates of VHGI.	Unsecured note with interest accrued at a rate of 10% per annum with no maturity date	142,600	98,006
MAH Holdings, LLC	MAH Holdings, LLC has provided  previous lines of credit to affiliates of VHGI.	Unsecured, three separate $500,000 lines of credit, no maturity date with an interest rate of 10% per annum. Aggregate amount of line available at September 30, 2011 is $306,575.	1,193,425	15,641
Total			$1,821,064	$384,240

The following is a summary of amounts due to unrelated parties, including terms of the debt, and the interest accrued as of September 30, 2011:

Notes Payable	Terms of Agreement	Principal	Discount	Interest
8% Notes, Convertible	Four convertible notes payable with principal and accrued interest at 8% per annum due nine months from date of execution.  The maturity dates range from January 6, 2012 to June 12, 2012. Notes are convertible into common stock at a 45% discount on the market price.	$  150,000	$ 27,679	$ 3,413
12% Notes, Convertible	Two convertible notes payable with principal and accrued interest, at 12% per annum, due July 19, 2012.  Notes are convertible into common stock at a 50% discount on the market price.	200,000	160,109	4,734
Western Sierra Notes	Two notes payable issued in relation to the Mining Agreement with Western Sierra Mining Corporation discussed in Note 3.	-	-	10,902
July 1 Notes	Two notes payable due September 1, 2011. Initially, a total of 625,000 shares of common stock were issued to the lenders in lieu of interest. The maturity dates were later extended to December 31, 2011 in exchange for 256,000 shares of common stock issued as extension fees.	100,000	-	-
July Senior Notes	Six senior promissory notes payable with two to three month terms, with  maturity dates ranging from September 2, 2011 to December 31, 2011.  Proceeds are to be used to consummate the transaction described in the May 27 letter of intent with Lily Group, Inc. (see note 4).  $81,250 of the balance is currently in default.	481,250	-	-
Total		$  931,250	$187,788	$19,049

Debentures

On December 17, 2008, the Company issued convertible debentures which were all converted into shares of the Company’s common stock as of June 30, 2010 with no remaining debenture balance as of December 31, 2010.