NOTE 10: OPERATING LEASE

3 Months Ended

Nov. 30, 2011

Notes to Financial Statements

NOTE 10: 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.

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	$	137,034
2013		144,253
2014		151,648
2015		104,450
Total	$	537,427