Note 5 - Notes Payable, Related Parties

3 Months Ended

May 31, 2012

Note 5 - Notes Payable, Related Parties

NOTE 5 – NOTES PAYABLE, RELATED PARTIES

Notes payable as of May 31, 2012 and August 31, 2011 are comprised of the following:

	May 31, 2012 (unaudited)		August 31, 2011
Notes payable, 8% per annum, due on demand, unsecured, in default	$	4,349	$	265,474
Note payable, 8% per annum, due on demand, unsecured		48,243		-
Note payable, 8% per annum, due on demand, unsecured		23,821			-
Note payable, 8% per annum, due on demand, unsecured		34,075			-
Note payable, 8% per annum, due on demand, unsecured		16,317		-
Total	$	126,805	$	265,474

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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