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Commitments and Contingencies
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Dec. 31, 2012
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| Commitments and Contingencies |
9. Commitments and Contingencies
Leases
Operating leases primarily relate to the lease of the space used for our operations in Shrewsbury, New Jersey, Mississauga, Canada and Almere, Netherlands. Future minimum rental commitments under non-cancellable operating leases are as follows:
Rent expense for the years ended December 31, 2012, 2011 and 2010 was approximately $229 thousand, $332 thousand and $387 thousand, respectively.
Employment Agreements
In the event that Simon Nynens, President and Chief Executive officer, employment is terminated without cause or by the rendering of a non-renewal notification, he is entitled to receive severance payments equal to twelve months salary and immediate vesting of all outstanding equity awards, and to purchase the car used by him at the “buy-out” price of any lease or fair market value, as applicable. Additionally, in the event that a change of control of the Company occurs (as described in the employment agreement), Mr. Nynens’ outstanding equity awards become immediately vested and he is entitled to receive a lump-sum payment equal to 2.9 times his then annual salary and actual incentive bonus earned in the year prior to such change in control.
The Company has entered into letter agreements with its Vice President of Operations, Chief Financial Officer, and Vice President of Accounting and Reporting, under which each are entitled to severance payments for six months at the then applicable annual base salary if the Company terminates their respective employment for any reason other than for cause.
Other
As of December 31, 2012, the Company is not committed by lines of credit, standby letters of credit, has no standby repurchase obligations or other commercial commitments. Other than employment arrangements and other management compensation arrangements, the Company is not engaged in any transactions with related parties. (See Note 12 Subsequent Events) |
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