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Note 12 - Commitments and Contingencies
 12 Months Ended
May 26, 2013
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Disclosure [Text Block]

12.         Commitments and Contingencies 


Operating Leases


Landec leases facilities and equipment under operating lease agreements with various terms and conditions, which expire at various dates through fiscal year 2019. Certain of these leases have various renewal options.


The approximate future minimum lease payments under these operating leases, excluding land leases, at May 26, 2013 are as follows (in thousands):


   

Amount

 

FY2014

  $ 2,139  

FY2015

    1,730  

FY2016

    1,421  

FY2017

    1,135  

FY2018

    554  

Thereafter

    350  
    $ 7,329  

Rent expense for operating leases, including month to month arrangements was $4.8 million, $1.5 million and $1.2 million for the fiscal years 2013, 2012 and 2011, respectively.


Capital Leases


There was no equipment under capital lease agreements at May 26, 2013.


Employment Agreements


Landec has entered into employment agreements with certain key employees. These agreements provide for these employees to receive incentive bonuses based on the financial performance of certain divisions in addition to their annual base salaries. The accrued incentive bonuses amounted to $548,000 at May 26, 2013 and $526,000 at May 27, 2012.


Purchase Commitments


At May 26, 2013, the Company was committed to purchase $2.2 million of produce during fiscal year 2014 in accordance with contractual terms at market rates. Payments of $9.5 million were made in fiscal year 2013 under these arrangements.


Loss Contingencies


As of May 26, 2013, the Company is not a party to any legal proceedings.