Note 6. Commitments And Contingencies Leases In May 2015, Andrea entered into a lease for its current corporate headquarters located in Bohemia, New York, where Andrea leases space for research and development, sales and executive offices from an unrelated party. The lease is for approximately 3,000 square feet and expires in October 2020. Rent expense under this operating lease was $8,187 and $7,909 for the three months ended March 31, 2017 and March 31, 2016, respectively. The monthly rent under this lease is $2,725 with annual escalations of 3.5%. As of March 31, 2017, the minimum future lease payments under this lease and all other noncancellable operating leases are as follows: 2017 (April 1  December 31) $ 40,823 2018 50,319 2019 45,729 2020 30,870 Total $ 167,741 Employment Agreements In August 2014, the Company entered into an employment agreement with Mr. Andrea. The effective date of the employment agreement was August 1, 2014 and it currently expires on July 31, 2017, subject to renewal as approved by the Compensation Committee of the Board of Directors. Pursuant to his employment agreement, Mr. Andrea will receive an annual base salary of $300,000. The employment agreement provides for quarterly bonuses equal to 5% of the Companys pre-bonus net after tax quarterly earnings for a total quarterly bonus amount not to exceed $12,500; and annual bonuses equal to 9% of the Companys annual pre-bonus net after tax earnings in excess of $300,000 up to $3,000,000, and 3% of the Companys annual pre-bonus adjusted net after tax earnings in excess of $3,000,000. Adjustments to net after tax earnings shall be made to remove the impact of change in recognition of accumulated deferred tax asset value. All bonuses shall be payable as soon as the Companys cash flow permits. All bonus determinations or any additional bonus in excess of the above will be made in the sole discretion of the Compensation Committee. Mr. Andrea is also entitled to a change in control payment equal to three times the three year average of