9 - COMMITMENTS AND CONTINGENCIES
Company has a pending settlement with Incubrands Spirits Group (Incubrands) in connection with an equity agreement
(the Agreement), dated April 30, 2007. Pursuant to the Agreement, Incubrands claimed commission fees of $191,778
incurred during the agreement period with a predecessor of the Company. Panache assumed this liability upon Panaches creation
in February 2010 and recorded $162,309 as a deemed distribution, since the liability was transferred from a related entity. The
balance as of March 31, 2012 and December 31, 2011 was $171,778.
Company rents furnished office space on a month-to-month basis. Rent expense was $3,080 and $2,825 for the three months ended
March 31, 2012 and 2011, respectively.