Note 3 - Commitments and Contingencies

Leases

Pursuant to a lease amendment effective January 4, 2010, Optex Systems Holdings leases its office and manufacturing facilities under a non-cancellable operating lease expiring July 31, 2015, in addition to maintaining several non-cancellable operating leases for office and manufacturing equipment.

On December 10, 2013 Optex Systems Holdings executed a lease amendment, renewing its Richardson, TX lease, effective as of December 10, 2013. Under the terms of the amendment:

Total expense under facility lease agreements as of the three and six months ended March 30, 2014 was $120 thousand and $174 thousand, respectively, and total expense for manufacturing and office equipment was $5 thousand and $11 thousand, respectively.  Total expense under facility lease agreements as of the three months and six months ended March 31, 2013 was $70 thousand and $145 thousand, respectively, and total expense for manufacturing and office equipment was $1 thousand and $2 thousand, respectively.

As of March 30, 2014, the remaining minimum lease payments under the non-cancelable operating leases for equipment, office and facility space are as follows:

Pursuant to the terms of the recent amendment to the facilities lease, there was no base rent payment due from January 1, 2014 through March 31, 2014, and the total value of the rent abatement related to the lease amendment is $63.5 thousand. As of March 30, 2014 the unamortized deferred rent was $98 thousand as compared to $44 thousand as of September 29, 2013. Deferred rent expense is recognized at a rate of $1.2 thousand per month over the life of the lease. Commencing on April 1, 2014 the base rent payment will be $21.2 thousand per month.