NOTE I   COMMITMENTS AND OTHER MATTERS [1] Leases We occupy a leased facility for our corporate headquarters building, located in Rochester, New York, which consists of both executive offices and manufacturing space. The facility is owned by a partnership, with which Asher J. Flaum, a Company director, is associated. In October 2014, we extended our lease for a three-year renewal term through May 31, 2018. The current rental rate is $5,687 per month ($68,244 per annum), and in June 2015 the rental rate increases to $6,256 per month ($75,070 per annum) for the remainder of the current lease term. In addition, we are required to pay a proportionate share of yearly real estate taxes and yearly common area operating costs. The lease agreement has one additional three-year renewal option with a 10% rate increase at the subsequent renewal period. (See Note C [2].) Rent expense for the years ended December 31, 2014 and 2013 was approximately $68,000 and $68,000, respectively. Rent payments required under the extended lease for the years ending December 31, 2015, 2016, 2017 and 2018 amount to approximately $72,000, $75,000, $75,000 and $31,000, respectively. [2] Employment Agreements In 2010, we appointed a new chief executive officer and executed a five year employment agreement pursuant to which his base compensation would be $50,000 per annum, which compensation increases to $200,000 per annum on the first day of the calendar year immediately following the calendar year in which we have adjusted EBITDA of at least $300,000 (earnings before interest, taxes, depreciation and amortization, but excluding all non-cash expenses associated with stock options). In September 2014, the CEO agreed to temporarily reduce his base compensation to $25,000 per annum. Under the employment agreement, the CEO is entitled to a performance bonus based upon financial targets established each year in good faith by the Governance and Compensation Committee and the achievement of individual management objectives established annually by such c