<?xml version="1.0" encoding="us-ascii"?><InstanceReport xmlns:xsd="http://www.w3.org/2001/XMLSchema" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"><Version>2.4.0.8</Version><ReportLongName>009 - Disclosure - NOTE 4 - CONVERTIBLE NOTES PAYABLE</ReportLongName><DisplayLabelColumn>true</DisplayLabelColumn><ShowElementNames>false</ShowElementNames><RoundingOption /><HasEmbeddedReports>false</HasEmbeddedReports><Columns><Column FlagID="0"><Id>1</Id><IsAbstractGroupTitle>false</IsAbstractGroupTitle><LabelSeparator>

</LabelSeparator><CurrencyCode /><FootnoteIndexer /><hasSegments>false</hasSegments><hasScenarios>false</hasScenarios><MCU><KeyName /><CurrencySymbol /><contextRef><ContextID>c2_From1Apr2012To31Mar2013</ContextID><EntitySchema>http://www.sec.gov/CIK</EntitySchema><EntityValue>0001083706</EntityValue><PeriodDisplayName /><PeriodType>duration</PeriodType><PeriodStartDate>2012-04-01T00:00:00</PeriodStartDate><PeriodEndDate>2013-03-31T00:00:00</PeriodEndDate><Segments /><Scenarios /></contextRef><UPS /><CurrencyCode /><OriginalCurrencyCode /></MCU><CurrencySymbol /><Labels><Label Key="CalendarSupplement" Id="0" Label="12 Months Ended" /><Label Key="Calendar" Id="1" Label="Mar. 31, 2013" /></Labels></Column></Columns><Rows><Row FlagID="0"><Id>1</Id><IsAbstractGroupTitle>true</IsAbstractGroupTitle><LabelSeparator>

</LabelSeparator><Level>1</Level><ElementName>exnt_ConvertiblePromissoryNotePayableAbstract</ElementName><ElementPrefix>exnt_</ElementPrefix><IsBaseElement>false</IsBaseElement><BalanceType>na</BalanceType><PeriodType>duration</PeriodType><IsReportTitle>false</IsReportTitle><IsSegmentTitle>false</IsSegmentTitle><IsCalendarTitle>false</IsCalendarTitle><IsEquityPrevioslyReportedAsRow>false</IsEquityPrevioslyReportedAsRow><IsEquityAdjustmentRow>false</IsEquityAdjustmentRow><IsBeginningBalance>false</IsBeginningBalance><IsEndingBalance>false</IsEndingBalance><IsReverseSign>false</IsReverseSign><FootnoteIndexer /><Cells><Cell FlagID="0" ContextID="" UnitID=""><Id>1</Id><IsNumeric>false</IsNumeric><IsRatio>false</IsRatio><DisplayZeroAsNone>false</DisplayZeroAsNone><NumericAmount>0</NumericAmount><RoundedNumericAmount>0</RoundedNumericAmount><NonNumbericText /><FootnoteIndexer /><CurrencyCode /><CurrencySymbol /><IsIndependantCurrency>false</IsIndependantCurrency><ShowCurrencySymbol>false</ShowCurrencySymbol><DisplayDateInUSFormat>false</DisplayDateInUSFormat></Cell></Cells><ElementDataType>xbrli:stringItemType</ElementDataType><SimpleDataType>string</SimpleDataType><IsTotalLabel>false</IsTotalLabel><UnitID>0</UnitID><Label>Convertible Promissory Note Payable [Abstract]</Label></Row><Row FlagID="0"><Id>2</Id><IsAbstractGroupTitle>false</IsAbstractGroupTitle><LabelSeparator>

</LabelSeparator><Level>2</Level><ElementName>exnt_ConvertiblePromissoryNotePayable</ElementName><ElementPrefix>exnt_</ElementPrefix><IsBaseElement>false</IsBaseElement><BalanceType>na</BalanceType><PeriodType>duration</PeriodType><IsReportTitle>false</IsReportTitle><IsSegmentTitle>false</IsSegmentTitle><IsCalendarTitle>false</IsCalendarTitle><IsEquityPrevioslyReportedAsRow>false</IsEquityPrevioslyReportedAsRow><IsEquityAdjustmentRow>false</IsEquityAdjustmentRow><IsBeginningBalance>false</IsBeginningBalance><IsEndingBalance>false</IsEndingBalance><IsReverseSign>false</IsReverseSign><PreferredLabelRole>terseLabel</PreferredLabelRole><FootnoteIndexer /><Cells><Cell FlagID="0" ContextID="c2_From1Apr2012To31Mar2013" UnitID=""><Id>1</Id><IsNumeric>false</IsNumeric><IsRatio>false</IsRatio><DisplayZeroAsNone>false</DisplayZeroAsNone><NumericAmount>0</NumericAmount><RoundedNumericAmount>0</RoundedNumericAmount><NonNumbericText>&lt;div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"&gt;

      &lt;font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 10pt; FONT-WEIGHT: bold"&gt;NOTE

      4 &amp;ndash; CONVERTIBLE NOTES PAYABLE&lt;/font&gt;

    &lt;/div&gt;&lt;br/&gt;&lt;table style="FONT-FAMILY: times new roman; FONT-SIZE: 11pt" cellspacing="0" cellpadding="0" width="100%"&gt;



          &lt;tr&gt;

            &lt;td valign="top" width="64%"&gt;

              &lt;div style="LINE-HEIGHT: 9.1pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"&gt;

                &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold"&gt;Convertible

                notes payable-related party consists of the

                following:&lt;/font&gt;

              &lt;/div&gt;

            &lt;/td&gt;

            &lt;td style="BORDER-BOTTOM: black 0.5pt solid" valign="top" width="20%" colspan="5"&gt;

              &lt;div style="LINE-HEIGHT: 9.1pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"&gt;

                &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold"&gt;March

                31,&lt;/font&gt;

              &lt;/div&gt;

            &lt;/td&gt;

          &lt;/tr&gt;

          &lt;tr&gt;

            &lt;td valign="top" width="64%"&gt;

              &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"&gt;&amp;nbsp;&lt;/font&gt;

            &lt;/td&gt;

            &lt;td style="BORDER-BOTTOM: black 0.5pt solid" valign="top" width="1%"&gt;

              &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"&gt;&amp;nbsp;&lt;/font&gt;

            &lt;/td&gt;

            &lt;td style="BORDER-BOTTOM: black 0.5pt solid" valign="top" width="7%"&gt;

              &lt;div style="LINE-HEIGHT: 9.1pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"&gt;

                &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold"&gt;2013&lt;/font&gt;

              &lt;/div&gt;

            &lt;/td&gt;

            &lt;td valign="top" width="2%"&gt;

              &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"&gt;&amp;nbsp;&lt;/font&gt;

            &lt;/td&gt;

            &lt;td style="BORDER-BOTTOM: black 0.5pt solid" valign="top" width="1%"&gt;

              &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"&gt;&amp;nbsp;&lt;/font&gt;

            &lt;/td&gt;

            &lt;td style="BORDER-BOTTOM: black 0.5pt solid" valign="top" width="8%"&gt;

              &lt;div style="LINE-HEIGHT: 9.1pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"&gt;

                &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold"&gt;2012&lt;/font&gt;

              &lt;/div&gt;

            &lt;/td&gt;

          &lt;/tr&gt;

          &lt;tr style="background-color: #CCEEFF;"&gt;

            &lt;td valign="top" width="64%" align="left"&gt;

              &lt;div style="LINE-HEIGHT: 9.1pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"&gt;

                &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 8pt"&gt;3%

                convertible note payable to Ryan Corley, President

                of the Company, due on demand, convertible into

                a&lt;/font&gt;

              &lt;/div&gt;

              &lt;div style="LINE-HEIGHT: 9.1pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"&gt;

                &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 8pt"&gt;maximum

                of 271,311 common shares&lt;/font&gt;

              &lt;/div&gt;

            &lt;/td&gt;

            &lt;td valign="bottom" width="1%"&gt;

              &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"&gt;&amp;nbsp;&lt;/font&gt;

            &lt;/td&gt;

            &lt;td valign="bottom" width="7%" align="right"&gt;

              &lt;div style="LINE-HEIGHT: 9.1pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"&gt;

                &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 8pt"&gt;21,705&lt;/font&gt;

              &lt;/div&gt;

            &lt;/td&gt;

            &lt;td valign="bottom" width="2%"&gt;

              &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"&gt;&amp;nbsp;&lt;/font&gt;

            &lt;/td&gt;

            &lt;td valign="bottom" width="1%"&gt;

              &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"&gt;&amp;nbsp;&lt;/font&gt;

            &lt;/td&gt;

            &lt;td valign="bottom" width="8%" align="right"&gt;

              &lt;div style="LINE-HEIGHT: 9.1pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"&gt;

                &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 8pt"&gt;21,705&lt;/font&gt;

              &lt;/div&gt;

            &lt;/td&gt;

          &lt;/tr&gt;

          &lt;tr&gt;

            &lt;td valign="top" width="64%" align="left"&gt;

              &lt;div style="LINE-HEIGHT: 9.1pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"&gt;

                &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 8pt"&gt;2%

                convertible notes payable to Ryan Corley, due on

                demand, convertible into a maximum of 13,825,480

                and&lt;/font&gt;

              &lt;/div&gt;

              &lt;div style="LINE-HEIGHT: 9.1pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"&gt;

                &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 8pt"&gt;12,595,503

                common shares, respectively&lt;/font&gt;

              &lt;/div&gt;

            &lt;/td&gt;

            &lt;td valign="bottom" width="1%"&gt;

              &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"&gt;&amp;nbsp;&lt;/font&gt;

            &lt;/td&gt;

            &lt;td valign="bottom" width="7%" align="right"&gt;

              &lt;div style="LINE-HEIGHT: 9.1pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"&gt;

                &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 8pt"&gt;620,750&lt;/font&gt;

              &lt;/div&gt;

            &lt;/td&gt;

            &lt;td valign="bottom" width="2%"&gt;

              &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"&gt;&amp;nbsp;&lt;/font&gt;

            &lt;/td&gt;

            &lt;td valign="bottom" width="1%"&gt;

              &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"&gt;&amp;nbsp;&lt;/font&gt;

            &lt;/td&gt;

            &lt;td valign="bottom" width="8%" align="right"&gt;

              &lt;div style="LINE-HEIGHT: 9.1pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"&gt;

                &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 8pt"&gt;583,850&lt;/font&gt;

              &lt;/div&gt;

            &lt;/td&gt;

          &lt;/tr&gt;

          &lt;tr style="background-color: #CCEEFF;"&gt;

            &lt;td valign="top" width="64%" align="left"&gt;

              &lt;div style="LINE-HEIGHT: 9.1pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"&gt;

                &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 8pt"&gt;2%

                convertible note payable to an entity controlled by

                Ryan Corley, due on demand, convertible into a

                maximum&lt;/font&gt;

              &lt;/div&gt;

              &lt;div style="LINE-HEIGHT: 9.1pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"&gt;

                &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 8pt"&gt;of

                978,000 common shares&lt;/font&gt;

              &lt;/div&gt;

            &lt;/td&gt;

            &lt;td valign="bottom" width="1%"&gt;

              &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"&gt;&amp;nbsp;&lt;/font&gt;

            &lt;/td&gt;

            &lt;td valign="bottom" width="7%" align="right"&gt;

              &lt;div style="LINE-HEIGHT: 9.1pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"&gt;

                &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 8pt"&gt;48,900&lt;/font&gt;

              &lt;/div&gt;

            &lt;/td&gt;

            &lt;td valign="bottom" width="2%"&gt;

              &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"&gt;&amp;nbsp;&lt;/font&gt;

            &lt;/td&gt;

            &lt;td valign="bottom" width="1%"&gt;

              &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"&gt;&amp;nbsp;&lt;/font&gt;

            &lt;/td&gt;

            &lt;td valign="bottom" width="8%" align="right"&gt;

              &lt;div style="LINE-HEIGHT: 9.1pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"&gt;

                &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 8pt"&gt;48,900&lt;/font&gt;

              &lt;/div&gt;

            &lt;/td&gt;

          &lt;/tr&gt;

          &lt;tr&gt;

            &lt;td valign="top" width="64%" align="left"&gt;

              &lt;div style="LINE-HEIGHT: 9.1pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"&gt;

                &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 8pt"&gt;3%

                convertible notes payable to an entity controlled

                by Ryan Corley, due on demand, convertible into a

                maximum&lt;/font&gt;

              &lt;/div&gt;

              &lt;div style="LINE-HEIGHT: 9.1pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"&gt;

                &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 8pt"&gt;of

                1,619,500 common shares&lt;/font&gt;

              &lt;/div&gt;

            &lt;/td&gt;

            &lt;td valign="bottom" width="1%"&gt;

              &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"&gt;&amp;nbsp;&lt;/font&gt;

            &lt;/td&gt;

            &lt;td valign="bottom" width="7%" align="right"&gt;

              &lt;div style="LINE-HEIGHT: 9.1pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"&gt;

                &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 8pt"&gt;111,350&lt;/font&gt;

              &lt;/div&gt;

            &lt;/td&gt;

            &lt;td valign="bottom" width="2%"&gt;

              &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"&gt;&amp;nbsp;&lt;/font&gt;

            &lt;/td&gt;

            &lt;td valign="bottom" width="1%"&gt;

              &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"&gt;&amp;nbsp;&lt;/font&gt;

            &lt;/td&gt;

            &lt;td valign="bottom" width="8%" align="right"&gt;

              &lt;div style="LINE-HEIGHT: 9.1pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"&gt;

                &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 8pt"&gt;111,350&lt;/font&gt;

              &lt;/div&gt;

            &lt;/td&gt;

          &lt;/tr&gt;

          &lt;tr style="background-color: #CCEEFF;"&gt;

            &lt;td valign="top" width="64%" align="left"&gt;

              &lt;div style="LINE-HEIGHT: 9.1pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"&gt;

                &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 8pt"&gt;2%

                convertible notes payable to Douglas Goodsell, due

                on demand, convertible into a maximum of

                194,926&lt;/font&gt;

              &lt;/div&gt;

              &lt;div style="LINE-HEIGHT: 9.1pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"&gt;

                &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 8pt"&gt;common

                shares&lt;/font&gt;

              &lt;/div&gt;

            &lt;/td&gt;

            &lt;td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="1%"&gt;

              &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"&gt;&amp;nbsp;&lt;/font&gt;

            &lt;/td&gt;

            &lt;td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="7%" align="right"&gt;

              &lt;div style="LINE-HEIGHT: 9.1pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"&gt;

                &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 8pt"&gt;6,413&lt;/font&gt;

              &lt;/div&gt;

            &lt;/td&gt;

            &lt;td valign="bottom" width="2%"&gt;

              &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"&gt;&amp;nbsp;&lt;/font&gt;

            &lt;/td&gt;

            &lt;td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="1%"&gt;

              &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"&gt;&amp;nbsp;&lt;/font&gt;

            &lt;/td&gt;

            &lt;td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="8%" align="right"&gt;

              &lt;div style="LINE-HEIGHT: 9.1pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"&gt;

                &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 8pt"&gt;6,413&lt;/font&gt;

              &lt;/div&gt;

            &lt;/td&gt;

          &lt;/tr&gt;

          &lt;tr&gt;

            &lt;td style="PADDING-BOTTOM: 4px" valign="top" width="64%" align="left"&gt;

              &lt;div style="LINE-HEIGHT: 9.1pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"&gt;

                &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 8pt"&gt;Total

                notes payable-related party&lt;/font&gt;

              &lt;/div&gt;

            &lt;/td&gt;

            &lt;td style="BORDER-BOTTOM: black 4px double" valign="bottom" width="1%" align="right"&gt;

              &lt;div style="LINE-HEIGHT: 9.1pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"&gt;

                &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 8pt"&gt;$&lt;/font&gt;

              &lt;/div&gt;

            &lt;/td&gt;

            &lt;td style="BORDER-BOTTOM: black 4px double" valign="bottom" width="7%" align="right"&gt;

              &lt;div style="LINE-HEIGHT: 9.1pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"&gt;

                &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 8pt"&gt;809,118&lt;/font&gt;

              &lt;/div&gt;

            &lt;/td&gt;

            &lt;td style="PADDING-BOTTOM: 4px" valign="bottom" width="2%"&gt;

              &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"&gt;&amp;nbsp;&lt;/font&gt;

            &lt;/td&gt;

            &lt;td style="BORDER-BOTTOM: black 4px double" valign="bottom" width="1%" align="right"&gt;

              &lt;div style="LINE-HEIGHT: 9.1pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"&gt;

                &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 8pt"&gt;$&lt;/font&gt;

              &lt;/div&gt;

            &lt;/td&gt;

            &lt;td style="BORDER-BOTTOM: black 4px double" valign="bottom" width="8%" align="right"&gt;

              &lt;div style="LINE-HEIGHT: 9.1pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"&gt;

                &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 8pt"&gt;772,218&lt;/font&gt;

              &lt;/div&gt;

            &lt;/td&gt;

          &lt;/tr&gt;



      &lt;/table&gt;&lt;br/&gt;&lt;table style="FONT-FAMILY: times new roman; FONT-SIZE: 11pt" cellspacing="0" cellpadding="0" width="100%"&gt;



          &lt;tr&gt;

            &lt;td valign="top" width="64%"&gt;

              &lt;div style="LINE-HEIGHT: 9.1pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"&gt;

                &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold"&gt;Convertible

                notes payable consist of the following:&lt;/font&gt;

              &lt;/div&gt;

            &lt;/td&gt;

            &lt;td style="BORDER-BOTTOM: black 0.5pt solid" valign="top" width="20%" colspan="5"&gt;

              &lt;div style="LINE-HEIGHT: 9.1pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"&gt;

                &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold"&gt;March&amp;nbsp;31,&lt;/font&gt;

              &lt;/div&gt;

            &lt;/td&gt;

          &lt;/tr&gt;

          &lt;tr&gt;

            &lt;td valign="top" width="64%" align="left"&gt;

              &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"&gt;&amp;nbsp;&lt;/font&gt;

            &lt;/td&gt;

            &lt;td style="BORDER-BOTTOM: black 0.5pt solid" valign="top" width="1%"&gt;

              &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"&gt;&amp;nbsp;&lt;/font&gt;

            &lt;/td&gt;

            &lt;td style="BORDER-BOTTOM: black 0.5pt solid" valign="top" width="7%"&gt;

              &lt;div style="LINE-HEIGHT: 9.1pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"&gt;

                &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold"&gt;2013&lt;/font&gt;

              &lt;/div&gt;

            &lt;/td&gt;

            &lt;td valign="top" width="2%"&gt;

              &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"&gt;&amp;nbsp;&lt;/font&gt;

            &lt;/td&gt;

            &lt;td style="BORDER-BOTTOM: black 0.5pt solid" valign="top" width="1%"&gt;

              &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"&gt;&amp;nbsp;&lt;/font&gt;

            &lt;/td&gt;

            &lt;td style="BORDER-BOTTOM: black 0.5pt solid" valign="top" width="8%"&gt;

              &lt;div style="LINE-HEIGHT: 9.1pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"&gt;

                &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold"&gt;2012&lt;/font&gt;

              &lt;/div&gt;

            &lt;/td&gt;

          &lt;/tr&gt;

          &lt;tr style="background-color: #CCEEFF;"&gt;

            &lt;td valign="top" width="64%" align="left"&gt;

              &lt;div style="LINE-HEIGHT: 9.1pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"&gt;

                &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 8pt"&gt;4%

                convertible notes payable to a stockholder, due on

                demand, convertible into a maximum of 350,000

                common shares&lt;/font&gt;

              &lt;/div&gt;

            &lt;/td&gt;

            &lt;td valign="bottom" width="1%"&gt;

              &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"&gt;&amp;nbsp;&lt;/font&gt;

            &lt;/td&gt;

            &lt;td valign="bottom" width="7%" align="right"&gt;

              &lt;div style="LINE-HEIGHT: 9.1pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"&gt;

                &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 8pt"&gt;175,000&lt;/font&gt;

              &lt;/div&gt;

            &lt;/td&gt;

            &lt;td valign="bottom" width="2%"&gt;

              &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"&gt;&amp;nbsp;&lt;/font&gt;

            &lt;/td&gt;

            &lt;td valign="bottom" width="1%"&gt;

              &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"&gt;&amp;nbsp;&lt;/font&gt;

            &lt;/td&gt;

            &lt;td valign="bottom" width="8%" align="right"&gt;

              &lt;div style="LINE-HEIGHT: 9.1pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"&gt;

                &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 8pt"&gt;175,000&lt;/font&gt;

              &lt;/div&gt;

            &lt;/td&gt;

          &lt;/tr&gt;

          &lt;tr&gt;

            &lt;td valign="top" width="64%" align="left"&gt;

              &lt;div style="LINE-HEIGHT: 9.1pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"&gt;

                &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 8pt"&gt;2%

                convertible notes payable to a&amp;nbsp;stockholder,

                due on demand, convertible into a maximum of

                100,000 common shares&lt;/font&gt;

              &lt;/div&gt;

            &lt;/td&gt;

            &lt;td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="1%"&gt;

              &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"&gt;&amp;nbsp;&lt;/font&gt;

            &lt;/td&gt;

            &lt;td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="7%" align="right"&gt;

              &lt;div style="LINE-HEIGHT: 9.1pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"&gt;

                &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 8pt"&gt;5,000&lt;/font&gt;

              &lt;/div&gt;

            &lt;/td&gt;

            &lt;td valign="bottom" width="2%"&gt;

              &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"&gt;&amp;nbsp;&lt;/font&gt;

            &lt;/td&gt;

            &lt;td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="1%"&gt;

              &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"&gt;&amp;nbsp;&lt;/font&gt;

            &lt;/td&gt;

            &lt;td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="8%" align="right"&gt;

              &lt;div style="LINE-HEIGHT: 9.1pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"&gt;

                &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 8pt"&gt;5,000&lt;/font&gt;

              &lt;/div&gt;

            &lt;/td&gt;

          &lt;/tr&gt;

          &lt;tr style="background-color: #CCEEFF;"&gt;

            &lt;td style="PADDING-BOTTOM: 4px" valign="top" width="64%" align="left"&gt;

              &lt;div style="LINE-HEIGHT: 9.1pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"&gt;

                &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 8pt"&gt;Total

                notes payable&lt;/font&gt;

              &lt;/div&gt;

            &lt;/td&gt;

            &lt;td style="BORDER-BOTTOM: black 4px double" valign="bottom" width="1%" align="right"&gt;

              &lt;div style="LINE-HEIGHT: 9.1pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"&gt;

                &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 8pt"&gt;$&lt;/font&gt;

              &lt;/div&gt;

            &lt;/td&gt;

            &lt;td style="BORDER-BOTTOM: black 4px double" valign="bottom" width="7%" align="right"&gt;

              &lt;div style="LINE-HEIGHT: 9.1pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"&gt;

                &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 8pt"&gt;180,000&lt;/font&gt;

              &lt;/div&gt;

            &lt;/td&gt;

            &lt;td style="PADDING-BOTTOM: 4px" valign="bottom" width="2%"&gt;

              &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"&gt;&amp;nbsp;&lt;/font&gt;

            &lt;/td&gt;

            &lt;td style="BORDER-BOTTOM: black 4px double" valign="bottom" width="1%" align="right"&gt;

              &lt;div style="LINE-HEIGHT: 9.1pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"&gt;

                &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 8pt"&gt;$&lt;/font&gt;

              &lt;/div&gt;

            &lt;/td&gt;

            &lt;td style="BORDER-BOTTOM: black 4px double" valign="bottom" width="8%" align="right"&gt;

              &lt;div style="LINE-HEIGHT: 9.1pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"&gt;

                &lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman, serif; FONT-SIZE: 8pt"&gt;180,000&lt;/font&gt;

              &lt;/div&gt;

            &lt;/td&gt;

          &lt;/tr&gt;



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