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&lt;p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"&gt;In January, 2013, the Company was advised that legal remedies
were being sought by the party involved in the rescission action pertaining to the Belize investment.&amp;#160;&amp;#160;The Company disputes
that the amount of $120,000 had become past due as the stock to be returned had not been returned at that point.&amp;#160;&amp;#160;Aside
from the stated amount due for that has been accrued, the Company does not believe that any additional liability will be incurred.&lt;/p&gt;

&lt;p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 8pt/normal Times New Roman, Times, Serif; margin: 0"&gt;On May 23, 2013, a vendor obtained a judgment against the
Company for an unpaid invoice, plus court fees and interest of $98,070.&amp;#160;&amp;#160;The Company acknowledges the liability and have
established an installment agreement with the vendor. This amount was fully accrued as of March 31, 2013.&lt;/p&gt;



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