OPERATING LEASE COMMITMENTS
3, 2005, the Company entered into a ten-year commercial operating lease with a company related through common ownership. The lease
covers various buildings and property which house our manufacturing plant, executive offices and other buildings with a current
monthly rental of $6,800. The lease expires on December 31, 2014. For the three months ended September 30, 2012 and 2011, we recognized
rental expense for these spaces of $20,400 and $19,800, respectively.