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
2013	$	190,250
2014		65,250
2015		-
2016		-
2017		-
	$	255,500

The total rent expense for the years ended December 31, 2012 and 2011, respectively, was $324,397 and $305,632.