10. Commitment and Contingencies

At March 31, 2012, the Company's minimum commitments under non-cancelable operating leases were as follows (in thousands):


	San Diego Gross Rental Payments		Additional Tenant Allowance Payments		Cambridge Net Rental Payments
April 2012-March 2013	$	1,154	$	78	$	412
April 2013-March 2014		1,189		78		93
April 2014-March 2015		2,437		155		0
April 2015-March 2016		2,511		155		0
April 2016-March 2017		2,586		155		0
Thereafter		16,195		879		0

Total minimum lease payments	$	26,072	$	1,500	$	505

As described in Note 2, as of September 2010, BP assumed the lease of the Company's research and development facilities in San Diego, California, and the parties entered into a sublease agreement dated September 2, 2010 for a portion of the San Diego facilities which the Company will continue to occupy, rent free, for a period of up to two years at the discretion of the Company, and as such no further obligation exists for this lease. The Company expects to vacate these premises in June 2012.

San Diego Lease

On June 24, 2011, the Company signed a lease agreement for 59,199 square feet for new office and laboratory space in San Diego for a term of 126 months from the first day of the first full month after the commencement date. The agreement includes a build out of space with a targeted commencement date in June 2012. Upon lease commencement, rent will be approximately $192,000 a month, which includes both base rent and a tenant improvement allowance. The rent will be increased by 3% on each annual anniversary of the first day of the first full month during the lease term. Further, the lease agreement allows for a "free rent" term starting with the seventh full month in the lease through the end of the sixteenth month. In addition to the tenant allowance incorporated in the lease payment, an additional tenant improvement allowance and an equipment allowance are also allowed, which must be paid back in monthly payments at a 9% interest rate. The lease provides the Company with two consecutive options to extend the term of the lease for five years each, which may be exercised with 12 months prior written notice. In the event the Company chooses to extend the term of the lease, the minimum monthly rent payable for the additional term will be determined according to the then-prevailing market rate.

In addition to the lease agreement, the Company concurrently signed a license agreement with the same landlord for the rent-free use of 8,000 square feet of temporary space located adjacent to the permanent building under construction. The license commenced on July 1, 2011 and is to expire on the earliest of (i) 45 days after the commencement date of the lease, or (ii) the termination of the agreement for cause. The temporary space was licensed on an "as is" basis with no requirement for landlord improvements. The Company is currently recognizing straight line rent based on the relative fair value of the temporary space as compared to the new facility. Rent expense for the three months ended March 31, 2012 was minimal.

In connection with this lease, the Company has put in place a facility for up to $3 million in secured equipment financing to help support the planned build-out of its research and bioprocess development laboratories and corporate headquarters in San Diego. The facility is to fund no more than 30% of the total cost of the pilot plant and research and development equipment needed for the new building. The facility is to be paid at an interest rate of 9% over a term of 126 months. No advances had been taken from this line as of March 31, 2012.

Cambridge Lease

The Company leases approximately 21,000 square feet of office space in a building in Cambridge, Massachusetts. The offices are leased to the Company under an operating lease with a term through December 2013. On March 31, 2011, the Company closed its office in Cambridge to focus all of its operations in San Diego to better align the Company with the evolving needs of the business and the market. Subsequently, the Company completed a sublease agreement in May 2011 for the full Cambridge facility, which will give the Company additional sublease income of approximately $0.5 million from April 2012 through March 2013 and $0.6 million in the remainder of 2013.

Credit Facility

On October 19, 2011, the Company entered into credit facilities with Comerica consisting of a $3.0 million domestic receivables and inventory revolving line (the "Comerica Line") and a $10.0 million export-import receivables revolving line (the "Ex-Im line"). No amounts had ever been outstanding on the lines. In conjunction with the sale of the oilseed processing business to DSM, the Comerica line was terminated.

Unamortized transactions costs of $0.3 million were expensed and are recorded within Other (expense) income, net line item on the Company's Condensed Consolidated Statement of Comprehensive Income for the three months ended March 31, 2012.

Further, in connection with the Comerica Line, the Company issued to Comerica a warrant to purchase 246,212 shares of its common stock at a price per share of $2.64. The warrant is exercisable at any time commencing on April 19, 2012 through the expiration of the warrant on October 19, 2016.

Letter of Credit

Pursuant to the Company's new facilities lease for office and laboratory space in San Diego, the Company is required to maintain a letter of credit of $3.2 million on behalf of its landlord in lieu of a cash deposit. The deposit provided for by the letter of credit would be held as a security for the performance of the Company's obligations under the lease and not as an advance rental deposit. The deposit will not be increased at any time but can be reduced based on certain financial and market capitalization requirements.

The letter of credit expires on December 31, 2012, and will be automatically extended annually without amendment through December 31, 2022. Subsequently, in conjunction with the credit lines entered into with Comerica in October 2011, the letter of credit was amended to be cash secured for its full value. This amount is reflected as long term restricted cash on the Company's consolidated balance sheets as of March 31, 2012 and December 31, 2011.

Litigation

From time to time, the Company is subject to legal proceedings, asserted claims and investigations in the ordinary course of business, including commercial claims, employment and other matters, which management considers to be immaterial, individually and in the aggregate. In accordance with generally accepted accounting principles, the Company makes a provision for a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular case. Litigation is inherently unpredictable. However, the Company believes that it has valid defenses with respect to the legal matters pending against the Company. It is possible, nevertheless, that the Company's consolidated financial position, cash flows or results of operations could be negatively affected by an unfavorable resolution of one or more of such proceedings, claims or investigations.