COMMITMENTS AND CONTINGENCIES

12 Months Ended

Aug. 31, 2012

Notes to Financial Statements

Note 11 - COMMITMENTS AND CONTINGENCIES

Consulting Agreement

Effective September 1, 2010, the Company entered into a consulting agreement with, L.A. Dreamline II, LLC, a marketing consultant (a related party), for a monthly consulting fee of $15,000.  The consulting agreement is for a term of 25 months.  For the year ended August 31, 2012 and 2011, the Company paid the related party $180,000 and $180,000, respectively.

Lease

Effective May 1, 2010 we have entered into a month-to-month lease, providing for a monthly rental of $3,500 for our executive office.  Rent expense, including executory costs, for the years ended August 31, 2012 and 2011 was $78,820 and $48,412, respectively.