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COMMITMENTS
3 Months Ended
Mar. 31, 2013
COMMITMENTS  
COMMITMENTS

NOTE 6 – COMMITMENTS

 

Operating Leases

 

The Company leases certain facilities and equipment under operating leases.  The Company recognizes rent expense on a straight-line basis over the lease term.  Rent expense was $1.8 million and $2.0 million for the quarters ended March 31, 2013 and 2012, respectively.  There were no material changes from the Company’s lease obligations presented in its 2012 Form 10-K.

 

Indemnification Agreements

 

The Company advances legal fees as required pursuant to indemnification agreements that were entered with certain former executives and employees while they were employed with the Company.  During the three months ended March 31, 2013 the Company advanced $1.9 million and has expensed $2.9 million under these indemnity agreements.  The Company expects to continue to advance payments pursuant to these agreements in future periods; however, management is unable to estimate the amount or timing of future payments under such agreements.