Commitments and Contingencies

12 Months Ended

Dec. 31, 2012

Commitments and Contingencies

Commitments and Contingencies

(8) Commitments and Contingencies

• (a)

  Leases

        The Company leases its facilities and certain equipment pursuant to operating and capital leases. The facility leases expire at various times through October 2025 and require the Company to pay operating costs, including real estate taxes. Equipment under capital lease consists of service vehicles, net of depreciation totaling approximately $60,000 as of December 31, 2012.

        Rental expense for operating leases, including charges for operating costs, was $1,071,798, $629,405 and $533,828 in 2012, 2011 and 2010, respectively.

        The following is a schedule of future minimum lease payments, excluding charges for operating costs, as of December 31, 2012:

Year Ending December 31:	Operating Leases		Capital Leases
2013	$	1,338,804	$	13,832
2014		1,026,702		14,719
2015		837,041		15,663
2016		793,375		14,760
2017		795,565		2,892
2018 and thereafter		4,305,562		—
	$	9,097,049		61,866
Less amounts representing interest				2,580
Present value of minimum lease commitments			$	59,286

• (b) Executive Severance Agreements

        The Company has a severance agreement with six of its executive officers which provides for the payment to the executive of a lump sum amount upon the occurrence of certain termination events. The payment could amount to one or two times the executive's current annual salary depending on the reason for termination.

• (c) Inventory Purchase Obligations

        At December 31, 2012, the Company had approximately $3.79 million of purchase order commitments to suppliers of the Company for delivery of inventory primarily during 2013.