NOTE 10 - COMMITMENTS AND CONTINGENCIES
On April 4, 2012, Entia
Biosciences, Inc. entered into a Commercial Lease agreement with Lanz Properties, LLC for 13,081 square feet of office and warehouse
space located at 13565 S.W. Tualatin-Sherwood Road, Suite 800, Sherwood, Oregon 97140. The new lease commences June 1, 2012 and
will terminate on July 31, 2015. No rent will be payable until October 2012. The base monthly rental rate will start at $3,160,
increasing to $3,260 in October 2013, and then $3,343 in June 2014.
Entias prior two
leases for 3,400 square feet at 14889 S.W. Tualatin-Sherwood Road #205, Sherwood, Oregon 97140, had a base monthly rent of $2,400
and ended on May 31, 2012. Management believes that the new facility offers a better location and configuration for its biotechnology
activities and provides significantly more space for manufacturing, fulfillment, and administration over the next three years.
Entia calculated the deferred
rent amount related to the long-term lease agreement and determined that the amount to accrue would be immaterial to the financial
statements, and thus, decided not to record or disclose this amount.