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## Notes to the consolidated financial statements 

For the year ended 31 December 2012 

## 23. Commitments 

## Operating lease, software and service commitments 

The Group leases all its office facilities and vehicles, and some of its office and test equipment, under operating leases. Future minimum lease payments under non-cancellable operating rental and lease agreements and payments for other commitments are as follows: 

<img src='content_image/207495.jpg'>

Total payments for operating leases and software commitments, charged as an expense in the income statement, amounted to US$8,896,000 and US$9,219,361 for the years ended 31 December 2012 and 2011 respectively. 

## Finance lease, hire purchase and software commitments 

The Group has finance leases and hire purchase contracts for test and IT equipment and has software contracts. The leases have terms of renewal but no purchase options and escalation clauses. Renewals are at the option of the specific entity that holds the lease. Future minimum payments under finance leases and hire purchase and software contracts together with the present value of the net minimum payments are as follows: 

<img src='content_image/207503.jpg'>

[1] The increase in 2012 relates to a new six year licensing agreement, further information is provided in note 12. 

## Capital commitments 

The Group has contractual commitments for the acquisition of property, plant and equipment in 2012 of US$3,014,000 (2011: US$2,264,000) and for the acquisition of intangible assets of US$1,229,000 (2011: US$2,501,000). 

In addition the company has a contingent liability of US$400,000 in connection with the purchase of intangible assets. This liability is contingent to certain shipping volumes, relating to the acquired technology, being met. We expect to reach these shipping volumes in first Quarter 2013. 

