LEASE COMMITMENTS

9 Months Ended

Sep. 30, 2015

LEASE COMMITMENTS

Operating Leases:

The Company leases the Louisville, Kentucky facility from a related party under an operating lease expiring December 2017. As of December 31, 2012, the lease automatically renewed for a five-year option period under terms of the lease agreement. Effective January 1, 2013, the lease amount increased to $53.8 thousand per month based on the CPI index as stated in the lease agreement. In addition, we are responsible for real estate taxes, insurance, utilities and maintenance expense for the facility (See Note 7).

The Company leases equipment from a related party under operating leases expiring in November 2015 and May 2016 for a monthly payment totaling $10.5 thousand. See also Note 7 - Related Party Transactions for additional information relating to the related party rent and lease payments. The Company and the related party are currently in discussions related to the extension of the November 2015 ending date.

The Company leased office space in Dallas, Texas for which monthly payments of $1.0 thousand were due through April 2015. The Company no longer leases this space.

The Company leases a lot in Louisville, Kentucky for a term that commenced in March 2012 and ends in February 2016. The monthly payment amount from March 2012 through February 2014 was $3.5 thousand. The monthly payment amount then increased to $3.8 thousand for the remaining term. During 2015, the Company determined that it no longer required the lot. During the third quarter of 2015, the Company agreed to vacate the property and begin making monthly payments of $4.0 thousand through March 2017 in satisfaction of current and past due amounts. As of September 30, 2015, the Company owed $41.0 thousand for past due rents.

On October 1, 2014, the Company executed a 60 month operating lease for processing equipment that will be used in our Recycling segment in the amount of $30.6 thousand per month.

The Company signed a lease, effective December 1, 2014, to lease a facility in the Seymour, Indiana area. This lease is for a period of three years. The Company has the option to extend the lease for three (3) additional three (3) year periods. Rent is $8.0 thousand per month and increases each year by $0.2 thousand per month. In the event ISA exercises the option to renew the lease for a second three-year term, at the end of the second three-year term, ISA has the option to purchase the property.

On April 30, 2015, the Company entered into a lease agreement with LK Property Investments, LLC (See Note 7), for a portion of the 4.4 acre parcel of real estate located at 6709 Grade Lane, Louisville, Kentucky in the amount of $3.0 thousand per month. The lease terminates on April 14, 2019, but the Company has the right to terminate the lease and vacate the leased premises upon 90 days notice. The Company is required to reimburse the lessor for 40% of the property taxes on the parcel during the term.

Future minimum lease payments for operating leases for the next five twelve-month periods ending September 30 of each year, in thousands, as of September 30, 2015 are as follows:



2016	$	1,234
2017	1,172
2018	582
2019	387
2020	—
Future minimum lease payments	$	3,375

Total rent expense for the nine months ended September 30, 2015 and 2014 was $1,014.8 thousand and $661.2 thousand, respectively.