10.

Commitments:

The Company leases office facilities in Vancouver, British Columbia, Canada, The Valley, Anguilla, British West Indies and Netanya, Israel. These office facilities are leased under operating lease agreements.

During the quarter ended

March 31, 2019,

the Company signed a

five

year lease for a facility in Vancouver, Canada, commencing

April 1, 2019

and ending

March 2024.

This facility comprises approximately

1,459

square feet. The Anguillan operating lease expired on

April 1, 2011

but unless

month’s notice is given it automatically renews for a future

months until notice is given.

The Netanya, Israel operating lease expired on

July 14, 2017

but unless

month’s notice is given it automatically renews for a future

months until notice is given. Subsequent to the quarter ended

September 30, 2019,

the lease was extended for a further

months. The Company has accounted for this lease as a short-term lease.

The minimum lease payments under these operating leases are approximately as follows:


2019	$	12,352
2020		41,971
2021		43,073
2022		44,175
2023		45,277
2024		11,388

The Company paid rent expense totaling

$22,109

for the quarter ended

September 30, 2019 (

September 30, 2018 -

$7,637

The Company has a management consulting agreement with T.M. Williams (Row), Inc., an Anguilla incorporated company, and Mr. T. M. Williams. During the year ended

December 31, 2014,

the Company amended a previous agreement with Mr. T. M. Williams to provide for a consultancy payment of

2.5%

of the monthly social bingo business with a minimum of

$11,000

and a maximum of

$25,000

per month.

During the year ended

December 31, 2014,

the Company entered into an agreement with Jayska Consulting Ltd. and Mr. J. M. Williams, Chief Executive Officer of the Company for the provision of services of Mr. J. M. Williams as Chief Executive Officer of the Company. The Consulting agreement provides for a consultancy payment of

GBP5,000

Sterling per month. In addition, during the year ended

December 31, 2014,

the Company entered into an agreement with LVA Media Inc. and Mr. J. M. Williams, for the provision of services of Mr. J. M. Williams as Chief Executive Officer of the Company. The Consulting agreement provides for a consultancy payment of

2.5%

of the monthly social bingo business with a minimum of

$7,500

and a maximum of

$25,000

per month.

As at

September 30, 2019,

the Company had a number of renewable license commitments with large brands, including, Garfield, Moomins, Mr. Men and Little Miss, Mr. Bean, Peter Rabbit, Pororo and the Winx club.

These agreements have commitments to pay royalties on the revenue from the licenses subject to the following minimum guarantee payments:


2019	$	7,379
2020		3,000

The Company expensed the minimum guarantee payments over the life of the agreement and recognized license expense of

$16,458

(

September 30, 2018 -

$9,577

) for the quarter ended

September 30, 2019

and

$44,332

(

September 30, 2018 -

$22,562

) for the

nine

months ended

September 30, 2019 .