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NOTE PAYABLE
9 Months Ended
Sep. 30, 2011
NOTE PAYABLE [Text Block]

NOTE 4 – NOTE PAYABLE

During the nine months ended September 30, 2011 the Company received proceeds of $96,160 with respect to an unsecured note payable that is due on demand and bears interest at a rate of 10% per annum. Related to this note are repayments in the amount of $39,403 during the same period.

On August 16, 2011, the Company entered into an agreement with the holder of this note payable to issue 10,202,055 units to repay $2,040,411 in principal and accrued interest on this note. Each unit consists of one common share of the Company and one warrant that allow s the holder to purchase common shares of the Company at $0.50 up to 2 years from the date of issue, $0.75 after 2 years but before 3 years from date of issue, $1.00 after 3 years but before 4 years from date of issue, $1.25 after 4 years but before 5 years from date of issue.