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10. RELATED PARTY TRANSACTIONS | 12 Months Ended
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Dec. 31, 2013
Notes to Financial Statements |
NOTE 10. RELATED PARTY TRANSACTIONS | The Company provides living accommodations in a residence on the Company’s premises, at its convenience, for the Company’s President. The President provides security and lock-up services and is required to live on premises as a condition of his employment. Over the years the Company has recorded annual expenses less than $12,000 related to the housing provided for its president. 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 2013, the annual costs of this lease were $118,485. 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.

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