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10. RELATED PARTY TRANSACTIONS
 12 Months Ended
Dec. 31, 2012
Notes to Financial Statements  
NOTE 10. RELATED PARTY TRANSACTIONS

The Company provided living accommodations in a manufactured home on the Company’s premises for the Company’s President as additional compensation for security and lock-up services the president provides. Over the years the Company has recorded annual expenses less than $12,000 related to the housing provided for its president.  In 2012, the manufactured home was demolished and a new home is being built on the same site, to be used both as a residence for the Company’s President and to accommodate overnight stays for Company guests.

 

In February 2007 the Company entered into a lease agreement for 59 acres of vineyard land at Elton Vineyards. This lease is for a 10-year term with four five-year renewals at the Company’s option and a first right of refusal in the event of the vineyard’s sale. For 2012, the annual costs of this lease were $114,631. For subsequent years there is an escalation provision tied to the CPI not to exceed 2% per annum. Betty M. O’Brien, a Director of the Company, is a principal owner of Elton Vineyards.