NOTE 9 COMMITMENTS AND CONTINGENCIES Leases The Company leases its corporate and administrative offices, R&amp;D offices and certain equipment under operating lease agreements which expire through September 2012. Certain of the agreements contain renewal options. Future minimum payments under these operating lease agreements at December 31, 2011 were $234,000. The Company has subleased a portion of its San Diego office, which lease and sublease expire on September 30, 2012. The minimum sublease income due in 2012 from the sublease is $27,000. Rent expense was $406,000, $483,000 and $534,000 for the years ended December 31, 2011, 2010 and 2009, respectively. Litigation The Company may become involved in certain legal proceedings and claims which arise in the normal course of business. As of December 31, 2011, the Company did not have any material litigation outstanding, and management does not currently expect any matters to have a material impact on the Company's liquidity or the financial statements taken as a whole. Vendors The Company has entered into written agreements with some of its supplier-manufacturers. None of these agreements require minimum amounts of product to be purchased. Some of the agreements contain automatic renewal clauses and the Company believes that, with the exception of the Samsung distribution agreement that expires on March 31, 2011, it will be able to renew these contracts with similar terms upon their individual expirations. Employee Agreements and Compensation The Company provides a 401(k) retirement savings plan for all full-time employees. Employees are eligible after 90 days of service with the Company. The Company does not currently provide matching contributions. The Company entered into an employment agreement with its President and Chief Executive Officer in April 2008 that expires in April 2012. The employment agreement provides for an annual salary of $325,000. In February 2012, the Company agreed to extend this agreement for an additional four years at an annual salary of