Note 6 - 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. See Note 14 - Subsequent events. There are several non-cancellable operating leases for office and manufacturing equipment.   Total expenses under facility lease agreements for the fiscal year ended September 29, 2013 was $312 thousand and included $13 thousand related to a six month short term lease expiring in January 2014.  Total expenses for manufacturing and office equipment for the year ended September 29, 2013 was $18 thousand.  Total expenses under facility lease agreements for the fiscal year ended September 30, 2012 was $285 thousand and total expenses for manufacturing and office equipment was $13 thousand.

At September 29, 2013, the remaining minimum lease payments under the non-cancelable operating leases for equipment, office and facility space were as follows:

Pursuant to the terms of the amendment to the facilities lease, there was no base rent payment due from January 1, 2010 through July 31, 2010, and the total value of this rent abatement was $134 thousand.  The value of the deferred rent expense has been amortized monthly at a rate of $2 thousand per month over the life of the lease.  The total unamortized deferred rent as of September 29, 2013 was $44 thousand.  Commencing on August 1, 2010, the base rent payment was $19 thousand per month and increased to $20 thousand per month on August 1, 2013 through the end of the lease on July 30, 2015. 

As described further in Note 14 – Subsequent Events, on December 10, 2013, the company executed a lease extension on its Richardson, TX lease through March 2021.