XML 33 R22.htm IDEA: XBRL DOCUMENT v2.4.0.6
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2011
Commitments and Contingencies [Abstract]  
COMMITMENTS AND CONTINGENCIES

NOTE 15 – COMMITMENTS AND CONTINGENCIES

Employment Agreements and Potential Payments Upon Certain Events

The Company has employment agreements with certain employees which are in effect as of December 31, 2011. The agreements provide for minimum salaries, which may be subject to annual percentage increases, non-equity incentive compensation based on pre-tax or net income levels attained by the Company and fringe benefits. The agreements also provide for payments contingent upon the occurrence of certain events. The following table provides the amount of commitments and contingent payments the Company is obligated to pay in the form of salaries, non-equity incentive compensation and fringe benefits under agreements with executive officers (in thousands):

 

                         
    As of December 31, 2011  
  Salaries     Non-equity
incentive
compensation		     Fringe  

Commitments

   $ 9,523     $ 5,022     $ 166  
       

Contingent payments upon certain events:

                        

Termination

   $ 4,524     $ 2,823     $ 58  

Change in control

   $ 13,634     $ 5,016     $ —    

Death

   $ 6,969     $ 3,923     $ 182  

Disability

   $ 4,540     $ 2,524     $ 182  

Operating Leases

The Company has leased certain computer equipment and software under a master equipment lease agreement with Relational Funding, Inc. with an original equipment cost of $2.7 million. The Company also has several leases on office space.

 

The following table provides future minimum rental payments required under the non-cancelable operating leases as of the period presented (in thousands):

 

         

As of December 31, 2011

  

2012

   $ 348  

2013

     224  

2014

     220  

2015 and thereafter

     71  
   

 

 

  

Total

   $ 863  
   

 

 

  

Litigation

Certain lawsuits have been filed against the Company. These lawsuits involve matters that are routine litigation incidental to the claims aspect of the Company’s business for which estimated losses are included in Unpaid Losses and Loss Adjustment Expenses in the Company’s Consolidated Financial Statements. In the opinion of management, these lawsuits are not material individually or in the aggregate to the Company’s financial position or results of operations. Accruals made or assessments of materiality of disclosure related to probable or possible losses do not consider any anticipated insurance proceeds.