NOTE 13: LITIGATION	3 Months Ended
Nov. 30, 2011
Notes to Financial Statements
NOTE 13: LITIGATION	On June 27, 2011 Mr. Joseph Duryea, former President, filed a complaint (“the Complaint”) against the Company in the United States District Court for the District of Nevada (Case No. 2: 11-cv-01054-GMN CWH) alleging breach of contract, breach of the covenant of good faith and fair dealing, tortious breach of contract, and fraud (“the Litigation”) in relation to an employment agreement (“the Employment Agreement”) the Company entered into with him on January 15, 2010. On September 15, 2011 the Company entered into a settlement agreement (“the Settlement Agreement”) with Mr. Duryea to resolve the above Litigation. Under the terms of the Settlement Agreement, the Company agreed to pay Mr. Duryea a total of $85,000 (“the Settlement Funds”). Of this total amount, the Company agreed to pay $45,000 upon execution of the Settlement Agreement and the remaining $40,000 was to be paid in four equal installments, payable on or before the following dates: October 15, 2011, November 15, 2011, December 15, 2011, and January 15, 2012. An outstanding balance of $20,000 remains payable as of November 30, 2011. The remaining $20,000 is to be paid in $10,000 installments on or before December 15, 2011 and January 15, 2012.

NOTE 13: LITIGATION

3 Months Ended

Nov. 30, 2011

On June 27, 2011 Mr. Joseph Duryea, former President, filed a complaint (“the Complaint”) against the Company in the United States District Court for the District of Nevada (Case No. 2: 11-cv-01054-GMN
CWH) alleging breach of contract, breach of the covenant of good faith and fair dealing, tortious breach of contract, and fraud (“the Litigation”) in relation to an employment agreement (“the Employment Agreement”) the Company entered into with him on January 15, 2010.

On September 15, 2011 the Company entered into a settlement agreement (“the Settlement Agreement”) with Mr. Duryea to resolve the above Litigation. Under the terms of the Settlement Agreement, the Company agreed to pay Mr. Duryea a total of $85,000 (“the Settlement Funds”). Of this total amount, the Company agreed to pay $45,000 upon execution of the Settlement Agreement and the remaining $40,000 was to be paid in four equal installments, payable on or before the following dates: October 15, 2011, November 15, 2011, December 15, 2011, and January 15, 2012. An outstanding balance of $20,000 remains payable as of November 30, 2011. The remaining $20,000 is to be paid in $10,000 installments on or before December 15, 2011 and January 15, 2012.