During the year ended August 31, 2012,
the Company entered into an agreement with an officer and shareholder for compensation in the amount of $10,000. The agreement
was for the period from January 1, 2012 through August 31, 2012. The officer and shareholder was paid $5,000 on this agreement
as of August 31, 2012. On July 19, 2012, the officer resigned and forgave the prorated balance due on the agreement of $3,125.
The amount was recorded as contributed capital.