Note 13 – Commitments

Leases

The Company leases equipment, office and laboratory space under several non-cancelable operating leases that expire between September 2013 and May 2023. Certain leases include renewal options and rent escalation clauses. An entity owned by certain executive officers/directors of the Company owns the building that the Company leases as its main facility for laboratory operations and certain research operations. In March 2005, the Company amended and extended the lease for another 12 years. In addition to the minimum annual rentals of space, the lease is subject to annual increases, based on the consumer price index. Annual increases are limited to 3% per year. Rent expense, inclusive of real estate taxes, approximated $1,605, $1,556 and $1,509 during fiscal years 2013, 2012 and 2011, respectively.

Total rent expense incurred by the Company during fiscal 2013, 2012 and 2011 was approximately $4,354, $4,378 and $4,023, respectively. Minimum future annual rentals under non-cancelable operating leases, net of sublease rental income of $451, as of July 31, 2013, are as follows:

Employment Agreements

The Company has employment agreements with certain officers that are cancelable at any time but provide for severance pay in the event an officer is terminated by the Company without cause, as defined in the agreements. Unless cancelled earlier or with notice as defined, the agreement automatically renews for two years. Aggregate minimum compensation commitments, exclusive of any severance provisions, as of July 31, 2013 is $2,271.