Commitments and Contingencies

3 Months Ended

Mar. 31, 2012

Commitments and Contingencies [Abstract]

7. COMMITMENTS AND CONTINGENCIES

The Company is obligated, as lessee, under non-cancellable operating leases for office space in Dallas, Texas and Rutland, U.K. expiring through 2020. In addition, the Company is obligated, as lessee, under other non-cancellable operating leases for office equipment. As of March 31, 2012, the future minimum payments required under all operating leases with terms in excess of one year are as follows (in thousands):


Remainder of 2012	$	820
2013		1,185
2014		1,026
2015		930
2016		931
Thereafter		3,523

	$	8,415

The Company also has a distribution agreement with a supplier which includes a minimum royalty payment requirement to keep the contract in effect, which is not included in the table above. The aggregate minimum requirement over the next ten years under the contract totals $13.1 million.

During 2011, the Company entered into a perpetual license agreement with a third party that includes annual maintenance payments, which are not included in the table above. The aggregate amount of those annual requirements through December 31, 2021 under the contract total $1.5 million.

Additionally, in connection with the acquisition of Alloy Multimedia made during 2011, the Company is obligated to make contingent payments of up to $1.0 million based upon the achievement of certain sales objectives for products sold from the acquired company.

Contingent on the consummation of the Merger (see note 4), the Company will be required to pay fees of approximately $5.2 million to certain advisors related to services performed that are related to the Merger.

- Definition

The entire disclosure for commitments and contingencies.

+ References

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+ Details

Archipelago Learning, Inc. 10-Q