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Related Party Transactions
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12 Months Ended |
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Dec. 31, 2011
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| Related Party Transactions | 19. Related Party TransactionsOn August 13, 2010, Investacorp entered into a five-year office lease with Frost Real Estate Holdings, LLC (“FREH”), an entity affiliated with Phillip Frost, M.D., the Company’s chairman of the board and principal shareholder. The lease which, commenced on October 1, 2010, provides for aggregate payments during the five-year term of approximately $1,574 and minimum annual payments of $337. Rent expense under such lease amounted to $252 and $84 in 2011 and 2010, respectively. In 2007, the Company entered into a lease for office space with FREH, which expired in January 2012 and the Company is in discussion regarding renewal of such lease. This lease provides for minimum annual payments of $481. Rent expense under such lease amounted to $536, $512 and $490 in 2011, 2010 and 2009, respectively. The Company is a party to an agreement with Vector Group Ltd. (“Vector”), where Vector has agreed to make available to the Company the services of Vector’s Executive Vice President to serve as the President and Chief Executive Officer of the Company and to provide certain other financial, tax and accounting services, including assistance with complying with Section 404 of the Sarbanes-Oxley Act of 2002 and assistance in the preparation of tax returns. Various executive officers and directors of Vector and its subsidiary New Valley serve as members of the board of directors of the Company and Vector and its subsidiaries own approximately 8.1% of the Company’s common stock at December 31, 2011. In consideration for such services, the Company agreed to pay Vector an annual management fee plus reimbursement of expenses and to indemnify Vector. The agreement is terminable by either party upon 30 days’ prior written notice. Beginning January 1, 2012, the agreement was amended to reflect additional services to be provided as a result of the Securities America acquisition and to increase the annual fee from $600 to $750. The Company paid Vector $600 in each of 2011, 2010 and 2009 related to the agreement. Howard Lorber, the vice-chairman of the Company’s board of directors, a firm he serves as a consultant to, and affiliates of that firm received insurance commissions aggregating approximately $105, $208 and $14 in 2011, 2010 and 2009, respectively, on various insurance policies issued for the Company and its subsidiaries. See Note 12 for information regarding loan transactions involving related parties. |