Operating Lease

3 Months Ended

Aug. 31, 2010

Notes to Financial Statements

Operating Lease

The Company operates out of a leased facility in Cebu, Philippines. The lease began on December 1, 2007, and is for 5 years at the current rate of approximately $1,900 per month. On August 15, 2010, the Company signed a lease in Los Angeles for approximately $1,200 per month for a term of twelve months. On May 18, 2011, the Company board voted to close the Los Angeles facility effective that day. Also on May 18, 2011, the Company moved its corporate address to an office in Troy, Michigan by a shareholder who is providing the office space free of charge.

In March 2010, the Company signed a new lease for a facility in Cebu, Philippines. The lease begins on July 30, 2010, and is for 5 years at the rate of approximately $10,650 per month plus utilities. The lease contains a rent-free fit-out period from March 30 to July 29, 2010. The lease also contains an option for additional 5 years upon mutual agreement of the parties.

Minimum annual rents for all leases for the next five years are as follows:

Period Through:	Amount:
August 31, 2012	$	135,298
2013		142,422
2014		149,763
2015		143,619
Total	$	571,102