Note 9 - Commitments and Contingencies The Corporation leases real estate (office and warehouse space) under non-cancellable operating leases that expire on varying dates through 2014. The Corporation leases additional real estate (office and warehouse space) for an "Initial Term" commencing June 1, 2010 on a month to month basis. The Corporation may renew the Lease on a monthly basis by giving notice to the Landlord. The Corporation also has various obligations for auto and equipment leases through 2016. The Corporation's real estate leases are with an affiliated Corporation that is controlled by the Corporation's president. Minimum future rental payments under non-cancellable operating leases having remaining terms in excess of one year are as follows: Real Estate Other 2013 $ 73,264 $ 12,013 2014 $ 12,211 $ 11,583 2015 $ - $ 6,953 2016 $ - $ 2,319 December 31, 2012 December 31, 2011 Rental expense $ 96,602 $ 83,475 The Corporation leases telephone equipment under a non-cancellable capital lease commencing January 2011 and expiring in May 2015 with the option to purchase at the expiration of the 48 month lease term. As of December 31, 2012, the cost of telephone equipment under capital lease at the Corporation is $21,945 with accumulated amortization of $7,900. Minimum future capital lease payments under non-cancellable capital lease having remaining terms in excess of one year are as follows: Capital Lease 2013 $ 6,648 2014 $ 6,648 2015 $ 2,216 On May 28, 2004 Peter Gregory filed an action in the Ontario Superior Court of Justice against Vencash Capital Corporation. Peter Gregory was a former Vencash distributor and agent who filed the action related to a claim of wrongful dismissal from Vencash for $260,000 (CDN). On July 30, 2004 Vencash filed a Statement of Defence and Counterclaim in the amount of $1,600,000 for breach of contract, breach of confidence, breach of fiduciary duties, interference with economic relations, damages for inducing breach of contract, and punitive damages. The Corporation believes t