Commitments And Contingencies

12 Months Ended

Jun. 30, 2013

Commitments And Contingencies [Abstract]

Commitments And Contingencies

19. Commitments and Contingencies

     We lease certain office space, warehousing, and equipment under various operating leases. The leases expire at various dates through 2018 and generally provide for the payment of taxes, insurance and maintenance costs. Additionally, certain leases contain escalation clauses that provide for increased rents resulting from the pass through of increases in operating costs, property taxes and consumer price indexes.

     At June 30, 2013, future minimum lease payments for the years ending June 30 are as follows (dollars in thousands):

2014	$	1,893
2015		1,847
2016		1,351
2017		977
2018		880
2019 and thereafter		-
	$	6,948

     Rent expense under all operating leases amounted to $2,485,000, $2,852,000 and $2,841,000 for the years ended June 30, 2013, 2012 and 2011, respectively.

     From time to time, we are involved in litigation incidental to the conduct of our business. We believe that such pending litigation will not have a material adverse effect on our results of operations or financial condition.

     We enter into agreements in the ordinary course of business with customers that often require us to defend and/or indemnify the customer against intellectual property infringement claims brought by a third party with respect to our products. For example, we were notified that certain of our customers have settled with or been sued by the following companies, in the noted jurisdictions, regarding the listed patents:

Asserting Party	Jurisdiction	Patents at Issue
Pragmatus VOD LLC	U.S. District Court of Delaware	U.S. Patents Nos. 5,581,479 and
		5,636,139
Trans Video Electronics Ltd.	U.S. District Court of Delaware	U.S. Patents Nos. 5,594,936 and
		5,991,801
Olympic Developments AG, LLC	U.S. District Court Central	U.S. Patents Nos. 5,475,585 and
	District of California	6,246,400
InterAd Technologies	U.S. District Court of Delaware	U.S. Patent No. 5,438,353
LVL Patent Group	U.S. District Court of Delaware	U.S Patent No. 6,044,382
Sprint Communications Company, L.P.	U.S. District Court Eastern	U.S. Patent Nos. 6,754,907 and
	District of Pennsylvania	6,757,907
FutureVision.com LLC	U.S. District Court Eastern	U.S. Patent No. 5,877,755
	District of Texas

     We continue to review our potential obligations under our indemnification agreements with these customers and the indemnity obligations to these customers from other vendors that also provided systems and services to these customers. From time to time, we also indemnify customers and business partners for damages, losses and liabilities they may suffer or incur relating to personal injury, personal property damage, product liability, and environmental claims relating to the use of our products and services or resulting from our acts or omissions, our employees, authorized agents or subcontractors. We have not accrued any material liabilities related to such indemnifications in our financial statements and do not expect any other material costs as a result of such obligations. The maximum potential amount of future payments that we could be required to make is unlimited, and we are unable to estimate any possible loss or range of possible loss.

     Pursuant to the terms of the employment agreements with our executive officers and certain other employees, employment may be terminated by either the respective executive officer or us at any time. In the event the employee voluntarily resigns (except as described below) or is terminated for cause, compensation under the employment agreement will end. In the event an agreement is terminated by us without cause or in certain circumstances constructively by us, the terminated employee will receive severance compensation for a period from 6 to 12 months, depending on the officer, in an annualized amount equal to the respective employee's base salary then in effect. In the event our CEO resigns within three months of a change in control or the CEO's agreement is terminated by us within one year of a change of control other than for due cause, disability or non-renewal by our CEO, our CEO will be entitled to severance compensation multiplied by two. Additionally, if terminated, our CEO and CFO may be entitled to bonuses during the severance period. At June 30, 2013, the maximum contingent liability under these agreements is $1,952,000. Our employment agreements with certain of our employees contain certain offset provisions, as defined in their respective agreements.