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AGREEMENT WITH GREEN ERA LTD. - COMMITMENTS

12 Months Ended

Dec. 31, 2014

Note 5 - AGREEMENT WITH GREEN ERA LTD. - COMMITMENTS

On February 17, 2011, we entered into an agreement with GreenEra, Ltd., a company formed under the laws of the Cyprus Republic, to acquire the rights of exploitation of 60,000 hectares (approximately 150,000 acres) of forest land in Novo Aripuana, State of Amazones, Brazil. The property can be developed and we believe can produce carbon credits that when sold could produce profits. Any profits that will be gained from the development or the sale of the carbon credits will be shared 50-50 between COSM and the owner of the forest land. The parties agreed that:

	·	Cosmos will pay GreenEra $5,000 per month for approximately 34 years beginning in April 1, 2011. Cosmos has the right to cancel the agreement. Upon such cancellation, no future obligation to GreenEra would exist.

	·	Cosmos will obtain financing sufficient to pay for all costs associated with obtaining the carbon credits, but not to exceed $1.2 million.

	·	GreenEra will be the developer responsible for performing all actions necessary to obtain the credits.

GreenEra acquired the exclusive rights to develop and to obtain these carbon credits when it contracted with the landowner on December 28, 2009. Therefore, Cosmos Holdings Inc. has assumed the rights and obligations of that agreement which stipulates, in part:

	·	The landowner has the right to veto sales of any credits under $2.00.

	·	If GreenEra is unable to receive a carbon credit certification by December 31, 2013, or cannot sell, convey, assign, lend or sublet, carbon credits or any other rights or products the contract is voided.

As of December 31 2013 GreenEra has not been successful in receiving carbon credit certification or sold, conveyed, assigned, lent or sublet, carbon credits or their rights. Therefore, our agreement with GreenEra is voided and Cosmos has no obligation to GreenEra.

Our former Principal Executive Officer, Mr. Panagiotis Drakopoulos, is also a 50.1% shareholder but not a director or officer of GreenEra Ltd.

From inception of the agreement through December 31, 2013, we have accrued $165,000 of costs associated with this agreement and have paid none. At December 31, 2014, the Green Era Ltd. liability was forgiven and reclassified to additional paid in capital because of the related party nature of the liability. See note 6.

- Definition

The entire disclosure for significant arrangements with third parties, which includes operating lease arrangements and arrangements in which the entity has agreed to expend funds to procure goods or services, or has agreed to commit resources to supply goods or services, and operating lease arrangements. Descriptions may include identification of the specific goods and services, period of time covered, minimum quantities and amounts, and cancellation rights.

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