NOTE 7 - COMMITMENTS AND CONTINGENCIES
In an effort to streamline
costs, we do not have a main corporate office. Our Chief Executive Officer works out of him home in Scottsdale, Arizona and our
Chief Financial Officer maintains all the corporate records out of his home in Grand Rapids, Michigan. Currently we have no monthly
lease requirements. We had no rent expense under operating leases in fiscal 2012 or 2011. There are no future minimum lease payments
on these operating leases as of August 31, 2012.
Currently there are no
employment agreements as of August 31, 2012.
On September 1, 2011, Michael
Kramarz, the Companys Chief Financial Officer, signed an additional twelve month consulting agreement. Mr. Kramarz is to
perform all his regular duties he had previously performed as Chief Financial Officer including the preparation of the Companys
financial statements, SEC Filings, maintenance of corporate records, etc. Mr. Kramarz is to be compensated $70 per hour worked
and will turn in weekly time sheets for approval. Mr. Kramarz had previously had consulting contracts for the period of January
2008 through August 2011. During the fiscal year ended August 31, 2012 and 2011, we incurred an expense of $72,870 and $82,600
respectively, under these agreements.