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Related Party Transactions
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12 Months Ended |
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Dec. 31, 2014
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| Related Party Transactions [Abstract] | |
| Related Party Transactions |
Related Party Transactions
On August 13, 2010, Investacorp entered into a five-year lease with Frost Real Estate Holdings, LLC (“FREH”), an entity affiliated with the Company’s chairman of the board and principal shareholder, in an office building in Miami, Florida. 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 $315. Rent expense under such lease amounted to $351, $320 and $293 in 2014, 2013 and 2012, respectively.
Ladenburg’s principal executive offices are located in the same office building in Miami, Florida, where the Company leases approximately 18,150 square feet of office space from FREH. Ladenburg’s lease was renewed in March 2013 and now expires in February 2018. The lease provides for aggregate payments during the five-year term of approximately $2,995 and minimum annual payments of $599. Rent expense under such lease amounted to $578, $572 and $560 in 2014, 2013 and 2012, 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 8.17% of the Company’s common stock at December 31, 2014. 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. The Company paid Vector $850 in 2014, $750 in 2013 and $750 in 2012 under the agreement and pays Vector at a rate of $850 per year in 2015.
See Note 12 for information regarding loan transactions involving related parties.
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