NOTE I   COMMITMENTS AND CONTINGENCIES Lease commitment MI s operations are housed in one 34,500 square foot building, which is leased from Dr. Moller. The term of the current lease is for ten years ending June 30, 2013, at $41,400 per month. MI remains liable for all property taxes and insurance on the leased property. The minimum rental commitment remaining on the leased property is $496,800 per year. As of June 30, 2012, unpaid rent for the above lease, including related interest, amounted to $5,098,484. The office operating lease agreements require that the Company pays certain operating expenses applicable for the leased premises. Future minimum rental payments required under these operating leases are as follows: Years Ending June 30, Amount 2013 496,800 Years thereafter - Total $ 496,800 Rent expense charged to operations under this lease aggregated $496,800 and $496,800 for fiscal 2012 and 2011, respectively. Moller International receives reimbursements for rent from Freedom Motors. Total reimbursements received for the years ended June 30, 2012 and 2011 amounted to $209,925 and $158,243, respectively. Contingencies J.F. Wilson &amp; Associates Ltd. v. Estate of Percy Symens, et a l. Moller International (MI) is named as a defendant in a lawsuit pending in Yolo County, California Superior Court - J.F. Wilson &amp; Associates Ltd. v. Estate of Percy Symens, et al. The complaint, filed in April 2005, alleges that MI unlawfully discharged solvents into the environment while doing business at 203 J Street and 920 Third Street in Davis, California during 1968 to 1980. The Company denied these allegations in its Answer. A number of the claims and cross-claims filed in this lawsuit have been settled, while for the remaining claims and cross-claims the parties have reached settlement and are in the process of finalizing the settlement agreement documents. In a related administrative proceeding initiated on September 26, 2006, the California Central Valley Regional Water Quality Control Board (RWQCB) issued a draf