NOTE 17 – COMMITTMENTS

Building Lease

The Company leases a combined production and office facility located in Mundelein, Illinois. The facility is approximately 44,000 square feet. The Company extended the lease in the first quarter of 2013 until May 2014 and the required monthly rental payments will be $21,361, including property taxes. Insurance and maintenance are billed when due. If we were to lose this lease or not be able to extend our lease due to the specific requirements of our Company, the effect on our operations could be substantial.

The Company recognizes escalating lease expense on a straight-line basis in accordance with current accounting standards.

The future minimum annual rental payments and sub-lease income for the years ended December 31 under the lease terms are as follows:

Year Ended	Rentals
2014	256,332
2015	85,444
2016	-
2017	-
2018	-
	$341,776

The total rent expense for the years ended December 31, 2013 and 2012, respectively, was $280,696 and $324,397.

On March 14, 2014 the Company entered into an amendment to the original lease agreement for office space located in Mundelein, Illinois. The amendment extended the term of the lease to May 14, 2015 upon the same terms and conditions contained in the lease as amended.