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LEASE COMMITMENTS AND CONTINGENCIES
 6 Months Ended
Jun. 30, 2011
LEASE COMMITMENTS AND CONTINGENCIES
14.           LEASE COMMITMENTS AND CONTINGENCIES
 
Commitments

      The Company has a non-cancelable lease for office space which commenced in May 2002 and expires in December 2015. Additionally, on January 1, 2011 the Company acquired additional office space. Merganser has a non-cancelable lease for office space, which commenced on May 2003 and expires in May 2014.  Merganser subleases a portion of its leased space to a subtenant.  FIDAC has a lease for office space which commenced in October 2010 and expires in February 2016. FIDAC UK has a lease for office space that expires in March 2019, which FIDAC UK has the right to terminate early in either March 2012 or March 2014 by providing six months notice to the lessor.  The Company’s aggregate future minimum lease payments total $10.1 million.   The following table details the lease payments.

Year Ending December
  
Lease Commitment
    
Sublease Income
    
Net Amount
  
   
(dollars in thousands)
  
2011 (remaining)
   $ 1,501     $ 85     $ 1,416  
2012
     3,005       70       2,935  
2013
     3,006       -       3,006  
2014
     2,522       -       2,522  
2015
     161       -       161  
Later years
     27       -       27  
    $ 10,222     $ 155     $ 10,067  

Contingencies

From time to time, the Company is involved in various claims and legal actions arising in the ordinary course of business.  In the opinion of management, the ultimate disposition of these matters will not have a material effect on the Company’s consolidated financial statements and therefore no accrual is required as of June 30, 2011 and 2010.
 
      Merganser’s prior owners may receive additional consideration under the merger agreement.  The Company paid approximately $14.1 million of this earn-out during the fourth quarter of 2010.  The Company cannot currently calculate how much additional consideration will be paid under the earn-out provisions because the payment amount will vary depending upon whether and the extent to which Merganser achieves specific performance goals. The additional earn-out consideration will be paid during 2012, if Merganser meets specific performance goals under the merger agreement. All amounts paid under this provision will be recorded as additional goodwill.