NOTE 14 - COMMITMENTS AND CONTINGENCIES Consulting Agreements In the second quarter of 2013, the Company engaged the services of an investment advisory firm to provide the Company with non-exclusive investment banking and strategic advisory services, as well as their best efforts to assist the Company in raising capital through a private placement of equity or debt securities. Terms of the executed agreement included an initial services period of five months with a monthly fee of $3,500. Either party may terminate the agreement with a minimum five-day written notice. After the initial services period, provided neither party elected termination, the agreement automatically extended on a month-to-month basis at the same monthly fee of $3,500. The advisory firm s incurred travel and out-of-pocket expenses associated the provided services will also be paid by the Company. If the Company completes a financing transaction with investors identified by the advisory firm, the Company is required to pay a cash fee equal to five percent of the aggregate amount raised by the Company in the financing transaction. In addition to the fees described above, upon the closing of the financing transaction, the Company is required to issue the advisory firm warrants to purchase five percent of the same class of any equity securities issued in the financing transaction, with an exercise price equal to the issue price in the financing transaction, exercisable for at least two years following the close of the financing transaction. In the event the agreement with the advisory firm is not renewed, expires and/or is terminated, the advisory firm is entitled to receive the compensation provided under the agreement for any financing transaction completed by the Company within such twelve months after such termination involving with any investor identified by the advisory firm during the term of the agreement. Office Leases At December 31, 2013, the Company s principal properties consisted of a facility in Canyon Lake, Texas (approximately 3