Commitments and Contingencies

9 Months Ended

Sep. 30, 2013

Commitments and Contingencies [Abstract]

Commitments and Contingencies

12. Commitments and Contingencies

Operating Lease Commitments

Effective July 1, 2013, the Company modified a property lease at its Fairfax, Virginia office location to expand operational capacity and consolidate certain functions. Under the terms of the new lease agreement, the lease expires in 2019 and requires fixed escalating lease payments and additional periodic rent payments to cover a proportionate share of taxes, maintenance, insurance and other shared expenses at each anniversary date. The lease contains additional incentives including free rent for up to 6 months under certain conditions and a leasehold improvement allowance for up to $120,000. The Company has the right to terminate the lease after 3 years by providing written notice by no later than September 30, 2016 and paying an early termination fee equal to 50% of the lessor's unamortized leasehold tenant improvements, brokerage commissions paid in connection with the lease and two months' current rent.

Effective July 1, 2013, the Company modified a property lease at its Tennessee office location to expand operational capacity. Under the terms of the new lease agreement, the lease expires in 2016 and requires fixed escalating lease payments and additional periodic rent payments to cover a proportionate share of taxes, maintenance, insurance and other shared expenses at each anniversary date.

There were no additional changes to existing equipment and sublease arrangements during the three or nine month periods ended September 30, 2013.

Remaining future minimum payments by year (excluding related party leases) required under lease obligations consist of the following for fiscal years ending December 31:

					Less
	Property		Equipment		Property			Net Lease
	Leases		Leases		Sublease			Total
	(Unaudited)
2013	$	261,000	$	23,000	$	(5,900	)	$	278,100
2014		560,000		41,000		(23,600	)		577,400
2015		472,000		30,000		(23,600	)		478,400
2016		386,000		24,000		(11,800	)		398,200
2017		320,000		10,000		-			330,000
Thereafter		417,000		-		-			417,000
Total	$	2,416,000	$	128,000	$	(64,900	)	$	2,479,100

Employment Agreements

The Company has employment agreements with certain executives that set forth compensation levels and provide for severance payments in certain instances. On August 13, 2013, the Company entered into an amendment to the Company's employment agreements with Steve L. Komar, Chief Executive Officer, and James T. McCubbin, Executive Vice President and Chief Financial Officer, to extend the term of their original employment through December 31, 2013 at the same salary and benefit levels then in effect.