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&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;&lt;font style="font: 8pt Times New Roman, Times, Serif"&gt;On August
8, 2008, the Company entered into a lease for office space, commencing on September 1, 2008 through August 31, 2011.&amp;#160;&amp;#160;Rent
is payable in advance, in annual installments.&amp;#160;&amp;#160;The initial year&amp;#146;s rent was $46,200, increasing as defined.&amp;#160;&amp;#160;The
Company had an option to extend the lease for an additional three-year period.&lt;/font&gt;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;&lt;font style="font: 8pt Times New Roman, Times, Serif"&gt;&amp;#160;&lt;/font&gt;&lt;/p&gt;

&lt;p style="font: 8pt Times New Roman, Times, Serif; margin: 0"&gt;&lt;font style="font: 8pt Times New Roman, Times, Serif"&gt;An Agreed
Judgment was filed against the Company in the 57th Circuit Court, Judicial District, State of Michigan, in the amount of $38,668
on February 25, 2011 by the landlord of the real estate lease dated August 8, 2008. On July 21, 2013 the Landlord agreed to a
final payment offer for all past and current rent due through August 31, 2013 of $157,489, plus interest at 12%, payable by September
30, 2013.&lt;/font&gt;&lt;/p&gt;



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