Lease commitments:

12 Months Ended

Feb. 28, 2013

5. Lease commitments:

Dr. Burzynski leases certain equipment used in the clinical trials under leases maturing in one to four years. Rent expense incurred under these leases was $151,695 and $164,894 for the years ended February 28, 2013 and February 29, 2012, respectively. Future minimum lease payments for the four years subsequent to February 28, 2013 are as follows:

2014	$	37,440
2015	37,440
2016	34,562
2017	20,172

	$	129,614

In addition, as explained in Note 2, Dr. Burzynski owns the facility used by the Company to perform research and produce its drug products. There is currently no lease agreement; however, the facility’s costs are included in the accompanying financial statements as rental expense. The rental expense is derived from not only utilities and expenses normally incurred by a tenant but also mortgage interest, insurance, property taxes and building depreciation. Rent expense totaled $256,198 and $263,922 for 2013 and 2012, respectively.

- Definition

The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing.

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