(a) Operating Lease The future minimum payment under an operating lease for the use of a vehicle amounts to approximately $3,995. The lease expires on May 31, 2014. Minimum annual lease payments are as follows: December 31, 2014 $ 3,995 $ 3,955 (b) Rental Lease for Snoke Distribution US LLC Effective April 23, 2012, the Company entered into an operating lease agreement for a rental premises in Hollywood, Florida, USA. The terms of this agreement are to be for a period of 2 years beginning May 1, 2012 and ending April 30, 2014 with payments made monthly and annual rent in year 1 of $37,800 and year 2 of $38,924 plus Florida sales tax of 7%. The Company has the option to extend the lease for 3 consecutive years at 3% annual increase in rental amounts. Minimum annual lease payments under this lease are as follows: December 31, 2014 $ 13,886 $ 13,886 (c) Litigation The Company is subject to certain legal proceedings and claims, which arise in the ordinary course of its business. Although occasional adverse decisions or settlements may occur, the Company believes that the final disposition of such matters should not have a material adverse effect on its financial position, results of operations or liquidity. There was no outstanding litigation as of December 31, 2013. (d) Consulting Agreement The Company entered into a consulting services agreement with a related party on April 1, 2013. The Company agreed to pay fees with respect to various professional services to be provided to it under the agreement. The agreement may be terminated by either party by notice in writing to the other party given not less than 90 days prior to the effective date of termination.