Commitments And Contingencies

6 Months Ended

Jun. 30, 2011

Commitments And Contingencies

Commitments And Contingencies

8. Commitments and Contingencies

The Company has certain contracts with several athletes which will require the Company to make minimum payments to these athletes over the next two years. The payments are in exchange for autographs and licensing rights on inventory items to be received in the future.

The Company leases its corporate offices, manufacturing, warehouse and distribution facilities along with its company-owned stores under operating leases with varying terms and lengths. Rent expense under these leases for the six and three months ended June 30, 2011 and June 30, 2010 were $2,627, $2,342 and $1,359, $1,157, respectively.

The Company leases certain computer and warehouse equipment under capital leases. The leases collectively require monthly payments of $8 and expire through 2014. Interest rates on the capital leases range from 3% to 10%.

The Company was a named party in a breach of contract suit brought by a former landlord. The Company believes the claim is without merit and has defended itself vigorously. The parties are scheduled to go to trial in October 2011. No outcome can be determined at this time.