COMMITMENTS AND CONTINGENCIES

The Company leases certain facilities and equipment under various non-cancelable operating lease agreements that expire at various dates through 2025. At December 31, 2013, the future minimum lease payments under operating leases with initial non-cancelable terms in excess of one year are as follows:



2014	$	6,909
2015	6,327
2016	5,757
2017	4,997
2018	4,832
Thereafter	22,365
	$	51,187

Rent expense totaled $8,496, $6,789 and $6,546 in 2013, 2012 and 2011, respectively.

The Company has entered into employment agreements with certain members of senior management, the terms of which expire on January 15, 2016 through January 1, 2017. The terms of these agreements are up to 3 years, include non-compete and non-disclosure provisions, and provide for defined severance payments in the event of termination.

Legal Contingencies

The Company has been named as a defendant in certain pending lawsuits in the normal course of business (the “Pending Lawsuits”). Also, the Company may become the subject of proceedings by the Environmental Protection Agency and Department of Justice as a result of the Waste Water Allegations and by the Environmental Protection Agency and Missouri Department of Natural Resources as a result of the Voluntarily Disclosed Matters related to its Cuba, Missouri facility ("OMT"). It is the policy of management to disclose the amount or range of reasonably possible losses. In the opinion of management, after consulting with legal counsel, the losses, if any, resulting from the Pending Lawsuits should not have a material effect on the Company’s financial position or results of operations, and the losses, if any, resulting from the Waste Water Allegations and Voluntarily Disclosed Matters cannot be estimated because the actions to be taken, if any, by the relevant government agencies remains uncertain.

The Company believes a proceeding by the Missouri Attorney General is contemplated with respect to the Missouri AG Matter as further disclosed in Item 3 - Legal Proceedings. In the opinion of management, after consulting with legal counsel and based on the discussions the Company has had with the Missouri Attorney General’s office, the Company has established a loss contingency of $167, which represents management’s current estimate of the minimum penalty the Missouri Attorney General is contemplating assessing on the Company.

OMT became a subsidiary of LMI as a result of LMI’s acquisition of Valent Aerostructures (“Valent”) in December 2012. The Company believes certain environmental representations set forth in the purchase agreement pursuant to which Valent acquired OMT, and the purchase agreement pursuant to which LMI acquired Valent, provide the Company with certain rights of indemnification with respect to the matters disclosed herein. The Company also has insurance policies that it believes covers various environmental issues at Valent and its subsidiaries, including OMT, and breaches by Valent and OMT of their respective environmental representations and warranties in each of the purchase agreements. As a result, the Company believes its rights of indemnification and insurance coverage may provide for a recovery of some or all of the costs associated with the matters disclosed herein. We cannot provide any assurance, however, that we will ultimately prevail in any claim for indemnification or secure insurance proceeds from our insurance policies.