15.

Commitments and contingencies:

(a)

The Company has several non-cancelable lease and purchase obligations primarily for general office facilities, service contracts for mobile telephone services and equipment that expire over the next

ten

years. Future minimum payments under these agreements are as follows:

Contractual Obligations for the year ending December 31,	Contractual Lease Obligations		Purchase Obligations		Total Obligations

201 8	$	1,989,000	$	34,405,000	$	36,394,000
201 9		1,569,000		12,121,000		13,690,000
20 20		1,119,000		553,000		1,672,000
202 1		455,000		31,000		486,000
202 2		348,000		28,000		376,000
Thereafter		1,857,000		227,000		2,084,000
	$	7,337,000	$	47,365,000	$	54,702,000

Rental expense under operating lease agreements

was

$1.9

million,

$1.2

million and

$1.0

million for the years ended

December

31,

2017,

2016

and

2015,

respectively.

(b)

February 9, 2015

Ting Fiber, Inc.(“Ting”) entered into a lease and network operation agreement with the City of Westminster, Maryland (the “City”) relating to the deployment of a new fiber network throughout the Westminster area (“WFN”).

Under the agreement, the City will finance, construct, and maintain the WFN which will be leased to T

ing for a period of

ten

years. The network will be constructed in phases, the scope and timing of which shall be determined by the City, in cooperation with Ting.

Under the terms of the agreement, T

ing

may

be required to advance funds to the City in the event of a quarterly shortfall between the City’s revenue from leasing the network to Ting and the City’s debt service requirements relating to financing of the network. Ting could be responsible for shortfalls between

$50,000

and

$150,000

per quarter. In Fiscal

2016,

the City has entered into financing for the construction of the WFN which allows the City to draw up to

$21.0

million, from their lenders, over the next

five

years with interest only payments during that period with a loan maturity of

years. As of

December 31, 2017,

the City has drawn

$7.5

million and City’s revenues from TING exceed the City’s debt service requirements. The Company does

not

believe it will be responsible for any shortfall in Fiscal

2018.

(c)

In the normal course of its operations, the Company becomes involved in various legal claims and lawsuits. The Company intends to vigorously defend these claims. While the final outcome with respect to any actions outstanding or pending as of

December

31,

2017

cannot be predicted with certainty, it is the opinion of management that their resolution will

not

have a material adverse effect on the Company’s financial position.

Namecheap

August 30, 2017,

Namecheap, Inc. (“

Namecheap”) filed a complaint against the Company, eNom, Inc., and unknown John Does in the United States District Court for the Western District of Washington alleging breach of contract, breach of the implied duty of good faith and fair dealing, and unjust enrichment (the “Namecheap Federal Action”). Namecheap voluntarily dismissed the Namecheap Federal Action without prejudice on

October 10, 2017.

That same day, Namecheap filed a substantially similar complaint against Tucows Inc., eNom, LLC, and unknown John Does alleging breach of contract and breach of the implied duty of good faith and fair dealing in Washington State Court, King County (the “Namecheap State Action”). In the Namecheap State Action, Namecheap sought preliminary and ultimate equitable relief by way of the transfer of approximately

2.65

million domain names from the eNom, LLC platform to the Namecheap platform using BTAPPA. By Order dated

November 15, 2017,

the Court granted Namecheap’s Motion for Preliminary Injunction and the Company complied therewith in taking steps with Namecheap towards the BTAPPA. The Court ordered Namecheap to post a bond against damages sustained by the Company. The Company sought clarification from the Court on

one

BTAPPA requirement which the Court provided in the

January 5, 2018

Order. The BTAPPA transfer was initiated on

January 8, 2018

and completed on

January 16, 2018.

In addition to the equitable relief it has sought, Namecheap also seeks direct and consequential damages in the Namecheap State Action. The Company believes that the claims lack merit and intends to continue to defend them vigorously. The Company does

not

believe that this litigation is a material pending legal proceeding.