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<br />I <br />I <br />.- <br />I <br />I <br />I <br />I <br />I <br />I <br />I. <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />.- <br />I <br /> <br />CUBEI.LlS BUSINESS TRUST <br /> <br />:\iOTES TO CONSOLIDATED FIi\'A:\!CIAL ST A TEME:'IJTS <br /> <br />Note 10 - Common Stock <br /> <br />On July I. 2005, tht: Trust admitted three nc\v shareholders. In exchangc for I ,no I sharcs of the <br />Trust's common stock, each nc\v sharcholder was to make a cash payment S3,90() and issue to <br />tht: Trust a note receivable in the amount of 535, 15-l. The notes rcceivable bear interest at the <br />prime ratc (7.25% at Deccmber 31. 2t)05) and retjuire payments of principal 01''57,031 each July <br />I through 20 I O. Interest and other income for the year ended December 31. 2005 includes <br />53,823 related to these notes receivable. At Dcccmber 31. 2005, one of the new shareholders <br />had yct to make the 53,906 cash payment stipulated in the agreement; however. such amount was <br />paid in January 20l)6. <br /> <br />On Apnl 15, 200 I. the Trust sold 17 shares of its common stock, no par valuc, tu two nt:\v <br />stockholders for SI09,76-l to he paid in five equal annual installments without interest. rotal <br />amounts received from the sale amounted to SI0-l,76.3 and '5~2.83-l, respectively, through <br />December 31. 2005 and 200-l. <br /> <br />In 2005, the Trust granted certain employees stock grants in the al1loullt of '52'5,()()O each. The <br />grants vest ratably over a three year period expiring in 2008. If the employees tenninate their <br />employment with the Company prior to the full vesting of the grants, thc grants \vill bt: forfeited <br />in their entirety. <br /> <br />~otc II - Op{~rating Leases <br /> <br />The Company leascs office space in various locations which expire through 201.t The leases <br />call for base rent, based on escalating schedules, plus operating expenses and taxes. <br /> <br />Approximate future minimum rental payments under these leases are as follows: <br /> <br />2006 S 1.476,000 <br />2007 I, I SO.OOO <br />2008 847.000 <br />2009 723.000 <br />2010 7-l2.000 <br />Thereafter I ,S5G,OOO <br /> S 6,82-l.DllQ <br /> <br />Rent expense charged tu operations lor the years ended December J I, 2005 and 200.l was <br />approximately SI.014,OOO and S760,OOO, respectively. <br /> <br />At December ~ 1,2005 the Company had a standby letter of credit in the amount of S 176.500 in <br />lieu of rental deposits lor two of its Boston IlKations. <br /> <br />12 <br />