LINE OF CREDIT:
The Company has an $890,000 credit
line for working capital purposes with UBS Bank USA (UBS) established pursuant to a Credit Line Agreement dated October
24, 2011 that is secured by the personal guarantee of the Companys President and Chief Executive Officer. At November 30,
2012, the Line of Credit had an outstanding balance of $887,332. Interest is payable monthly at a stated reference rate of 0.249%
+ 337.5 basis points. The reference rate is based on the 30 day LIBOR (London Interbank Offered Rate) and is subject
to change from UBS.