3. Commitments and Contingencies

Lease Obligations- The Company is obligated under one operating lease, for its corporate office space, expiring in March 2015. Future aggregate minimum annual rental payments under this lease for the next twelve months are as follows:

Twelve Months Ending March 31,
2015	$	89

Rent expense under this lease was approximately $22 and $21 for the three months ended March 31, 2014 and 2013, respectively.

The Company is also obligated under certain five-year, slot equipment operating leases, the projected costs of which are not included in the table above due to fluctuating inventory, expiring over staggered years, which provide for a monthly fixed rental fee per slot machine, and an option for replacement with different/newer machines during the term of the lease. In the first quarter of 2014, the Company’s slot lease expenses were approximately $668 versus $599 in the comparable period in 2013, an increase of $69, resulting from an addition of 28 slot machines.

Employment Agreements- The Company’s July 1, 2005 employment agreement with its Chief Executive Officer (“CEO”), Mr. Rami S. Ramadan, absent the intervention of either party by September 30th of each year, will renew automatically for another calendar year, currently ending December 31, 2014. In addition to a perpetually renewable employment term of one year absent the intervention of either party, the agreement provides for annual compensation, plus participation in the Company’s benefits programs and equity incentive plans. As of March 31, 2014, the Company is contractually obligated to pay approximately $338 of annual base compensation for the remainder of the year 2014.

401(k) Retirement Plan- The Company maintains a contributory 401(k) retirement plan. The plan is for the benefit of all eligible corporate employees, who may have up to 16.5% of their salary withheld, not to exceed the maximum, federally-allowed amount. The Company makes an employer-matching contribution of 60 cents for each employee dollar contributed, per each pay period.

Profit Sharing and Individual Performance Plans- The Company also maintains a profit sharing plan as well as a personal performance plan for the benefit of all eligible key management employees (“KME”s). The profit sharing plan is based on achieving certain annual financial targets, while the individual performance plan is based on each KME’s personal performance relative to pre-set performance criteria throughout the operating year.

Taxing Jurisdiction - The Czech Republic currently has a number of laws related to various taxes imposed by governmental authorities. Applicable taxes include corporate income tax, gaming tax, value-added tax (“VAT”), payroll (social) taxes and, formerly, charity taxes. Tax declarations, together with other legal compliance areas (e.g. customs and currency control matters) are subject to review and investigation by a number of governmental authorities, which are enabled by law to impose fines, penalties and interest charges, and create tax risks in the Czech Republic. Management believes that it has adequately provided for all of its Czech tax liabilities.

Effective January 1, 2012, charity taxes were eliminated in lieu of a new overall flat gaming tax (the “New Gaming Tax”) of 20.0% on all live game and slot revenues, as well as an applicable 19% corporate income tax on adjusted Czech net income. Additionally, the administration tax and state supervision fee have been eliminated in lieu of a per slot, per diem tax, payable along with the New Gaming Tax. The New Gaming Tax is payable by the 25th day following the end of each quarter, while the corporate income tax is payable by June 30th of the subsequent year, and, estimated quarterly income tax payments that began in September 2013. (See also Note 4(k) “Czech Gaming Taxes” and Note 4(l) “Income Taxes” below).

Legal Proceedings- The Company is sometimes subject to various contingencies, the resolutions of which its management believes, will not have a material adverse effect on the Company’s consolidated financial position or results of operations. TWC was not involved in any material litigation during the quarter ended March 31, 2014, and through the date of this filing.