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COMMITMENTS AND CONTINGENCIES
12 Months Ended
Dec. 31, 2013
Commitments And Contingencies  
COMMITMENTS AND CONTINGENCIES

The Company has entered in a number of consulting agreements with various consultants.  Termination of any of these agreements could result in termination fees.

 

The Company leases its office in Irvine, California on a one-year lease.  Total rent expense for the year ended December 31, 2013 was approximately $46,000.  Total remaining payments on the lease through July 31, 2013 are approximately $14,728.

 

The Company maintains employment agreements with certain key management.  The agreements provide for minimum base salaries, eligibility for stock options, performance bonuses and severance payments.

 

Legal Proceedings

 

From time to time, claims are made against the Company in the ordinary course of business, which could result in litigation. Claims and associated litigation are subject to inherent uncertainties and unfavorable outcomes could occur. In the opinion of management, the resolution of these matters, if any, will not have a material adverse impact on the Company’s financial position or results of operations.

 

On July 1, 2011, a lawsuit was filed in the United States District Court, the Southern District of Ohio, Cincinnati Division, against GT Beverage Company, LLC (“GT LLC”) by Dominion Liquid Technologies, LLC.  The lawsuit alleges that GT LLC breached terms of a 2010 co-packing agreement, which governed the relationship between the parties. As of February 2013, Dominion amended its complaint to add the Company as a defendant in the case.  Dominion is seeking monetary damages in an amount exceeding $800,000.  GT LLC has filed its answer denying all of Dominion’s claims and expects to vigorously defend the suit.  A trial will likely be set in the second quarter of 2014.