NOTE 11   COMMITMENTS AND CONTINGENCIES Legal Proceedings There are no legal proceedings, which the Company believes will have a material adverse effect on its financial position. Operating Leases The Company leased office and warehouse space in Columbus, Ohio under an operating lease. The lease provided for a lease payment of $4,200 per month from December 1, 2012 through November 30, 2013, and a lease payment of $4,400 per month from December 1, 2013 through November 30, 2014, and lease payments thereafter on a month-to-month basis at a rate of $4,568 per month. On September 20, 2012, this lease was assigned to Two Fat Greeks, LLC as part of the transfer of the Company s assets and business to Two Fat Greeks, LLC, and as such, the Company has no ongoing minimum lease payments associated with the lease. Contingent Consideration In connection with the acquisition of E-Waste Systems of Ohio, Inc. (formerly Tech Disposal, Inc.) on October 14, 2011, the Company agreed to pay contingent consideration to selling shareholder equal to 4.5 times the adjusted earnings before interest tax depreciation and amortization (EBITDA) for the twelve month period immediately following closing, plus the cash balance at the date of closing, less the initial consideration paid. The purchase consideration is deferred for 12 months in accordance with the contractual terms of the earn-out arrangement and is to be paid through the issuance of common stock. The contingent liability was valued on the date of acquisition based probability-weighted expected outcomes of operations over the earnout period. The contingent liability was $291,999 as of December 31, 2011. On March 22, 2012, the Company reached a settlement agreement with the selling shareholder of E-Waste Systems of Ohio, Inc. (formerly Tech Disposal, Inc.) wherein the Company agreed that the liability for the contingent consideration estimated at the time of acquisition would be settled at a value of $388,000 resulting in a loss on settlement of contingent consideration of $66.671