4. Commitments and Contingencies. Lease Obligations - The Company is obligated under one operating lease, averaging approximately $100 per year, with a 2.0% annual rent escalation, for its U.S. corporate office space, expiring in March 2020. Additionally, TWC is also obligated to pay three ground leases: (i) a remaining 67-year ground lease, ending March 2084, in connection with the Hotel Freizeit Auefeld, that has an annual lease payment of 26, or approximately $30; (ii) a 45-year ground lease ending March 2062, in connection with recently acquired Hotel Donauwelle, that has an annual lease payment of 184, or approximately $210; and (iii) an indefinite-term ground lease for a parcel of land, 50% shared with the federal government of CZ, for an annual payment of Kc 289, or approximately $13, each October. TWC is also obligated under several employee housing leases, aggregating approximately Kc 1,260, or approximately $55, per year, that can be terminated with a prior six-month notice. Future aggregate minimum annual rental payments under these leases for the next five years are as follows: Twelve Months Ending June 30, (Unaudited) 2018 $ 411 2019 $ 365 2020 $ 293 2021 $ 272 2022 $ 277 The Company is also obligated under a number of five-year, video slot machine equipment operating leases, the projected costs of which are not included in the table above due to fluctuating inventory, expiring over staggered years, which provide for a monthly fixed rental fee per slot machine, and an option for replacement with different/newer machines during the term of the lease. In the second quarter of 2017, the Companys slot machine equipment lease expense was $704 versus $633 in the comparable quarter in 2016, and $1,310 and $1,221 for the six months ended June 30, 2017 and 2016, respectively. All slot leases can be terminated at any time, subject to an early-termination penalty equal to three months of lease payments for each terminated slot machine lease. Employment Agreements - The Companys employment agreement with its