NOTE M - COMMITMENTS AND CONTINGENCIES 1. Commitments At March 31, 2013, Nathan s had open purchase commitments for hot dogs at a total cost of $5,000,000 which have been purchased between April and July 2013. The hot dogs purchased represented approximately 25.4% of Nathan's actual usage during the fiscal 2014 period. At September 29, 2013, Nathan s had fulfilled its obligation pursuant to this purchase commitment and has not entered into any new purchase commitments during the fiscal 2014 period. However, Nathan s may enter into additional purchase commitments in the future as favorable market conditions become available. At March 31, 2013, Nathan s had open construction contracts of approximately $2,000,000 in connection with the rebuilding of the Coney Island restaurant. At September 29, 2013, the construction at Coney Island had been completed and all of these contracts had been paid or have been accrued to be paid. We estimate that we will invest approximately $1,200,000 in connection with the redevelopment of our Yonkers restaurant this year of which approximately $360,000 has been incurred through September 29, 2013. 2. Contingencies The Company and its subsidiaries are from time to time involved in ordinary and routine litigation. Management presently believes that the ultimate outcome of these proceedings, individually or in the aggregate, will not have a material adverse effect on the Company s financial position, cash flows or results of operations. Nevertheless, litigation is subject to inherent uncertainties and unfavorable rulings could occur. An unfavorable ruling could include money damages and, in such event, could result in a material adverse impact on the Company s results of operations for the period in which the ruling occurs or is implemented. The Company has also been involved in the following legal proceeding: The Company is party to a License Agreement with SMG, Inc. ( SMG ) dated as of February 28, 1994, as amended (the  License Agreement ) pursuant to which: (i) SMG acts as the Company