11.	LEASE ARRANGEMENTS

The Company has operating lease commitments for office equipment and its office and maintenance facilities. The Company leases its corporate offices from a company controlled by certain of the Company

’s former officers and directors. The lease for this facility provides for monthly rent of

$14,862

and expires on

January 31, 2018,

though the lease

may

be renewed by us for

three

additional

two

-year option periods through

January 31, 2024.

The Company leases approximately

53,000

square feet of a

66,000

square foot aircraft maintenance facility located in Kinston, North Carolina under an agreement that extends through

January 2023,

with the option to extend the lease for

four

additional

five

-year periods thereafter. The Company has calculated rent expense under the current lease term.

GGS leases its production facility under an agreement that extends through

August 2019.

GAS leases several maintenance facilities across the country and an administrative office in Eagan, Minnesota. Most of the leases are on

one

year agreements with renewal clauses, but some of these are multi-year leases extending out as far as

March 2021.

Delphax leases its production facility in Mississauga, Ontario under an agreement extending through

August 2018.

Annual rents remaining under the agreement are CDN

$384,000

(approximately

$222,000

using the

March 31, 2016

exchange rate) per year. In addition, Delphax is obligated to pay as additional rent the related operating expenses of the landlord. Under the terms of the lease, Delphax is also subject to a facility restoration obligation (see Note

Delphax has office space in the United Kingdom under an operating lease that extends through

January 2017.

The annual lease payment for this facility is

£62,400

(approximately

$90,000

using the

March 31, 2016

exchange rate). In addition to the contracted lease amount, the lease payments include a pro rata portion of the operating expenses incurred by the landlord.

March 31, 2016,

future minimum annual lease payments (foreign currency amounts translated using applicable

March 31, 2016

exchange rates) under non-cancelable operating leases with initial or remaining terms of more than

one

year are as follows:

Year ended March 31,
2017	$	3,278,000
2018		2,611,000
2019		1,660,000
2020		1,018,000
2021		564,000
Thereafter		632,000
Total minimum lease payments	$	9,763,000

The Company

’s rent expense excluding Delphax for operating leases totaled approximately

$3,038,000

and

$2,309,000

for fiscal

2016

and

2015,

respectively, and includes amounts to related parties of

$178,000

and

$177,000

in fiscal

2016

and

2015,

respectively. Delphax’s rent expense from

November 24, 2015

through

March 31, 2016

totaled approximately

$226,000.