NOTE J – COMMITMENTS AND CONTINGENCIES

1. Operating leases

     With the exception of the Company's headquarters, Australian facility, and Tianjin facility, facilities are generally leased. Each of the facility lease agreements is a non-cancelable operating lease generally structured with renewal options and expires prior to or during 2019. The Company utilizes equipment under non-cancelable operating leases, expiring through 2016. The minimum rental commitments under operating leases at December 31, 2011 are as follows:

     These leases generally provide that property taxes, insurance, and maintenance expenses are the responsibility of the Company. Such expenses are not included in the operating lease amounts outlined in the table above or in the rent expense amounts that follow. The total rent expense for the years ended 2009, 2010, and 2011 was approximately $4,109, $4,442, and $6,410 respectively.

2. Contingencies

     The Company is occasionally involved in various lawsuits and disputes arising in the normal course of business. In the opinion of management, based upon advice of counsel, the likelihood of an adverse outcome against the Company is remote. As such, management believes that the ultimate outcome of these lawsuits will not have a material impact on the Company's financial position or results of operations.

3. Employee Benefit Plan

     The Company sponsors an employee benefit plan under Section 401(k) of the Internal Revenue Code. This plan covers employees who are at least 18 years of age and have met a one-month service requirement. The Company makes a matching contribution equal to 100 percent of the first one percent of a participant's compensation that is contributed by the participant, and 50 percent of that deferral that exceeds one percent of the participant's compensation, not to exceed six percent of the participant's compensation, subject to the limits of ERISA. In addition, the Company may make a discretionary contribution based on earnings. The Company's matching contributions cliff vest at two years of service. Contributions made by the Company to the plan in the United States for the years ended 2009, 2010, and 2011 were $879, $900, and $979, respectively. The 401(k) match balances for 2009, 2010, and 2011 were decreased by $0, $30, and $25, respectively, due to the application of prior year forfeitures of the unvested balances of terminated employees.