COMMITMENTS AND CONTINGENCIES

Leases

The Company leases administrative and sales offices and certain equipment under noncancelable operating leases, which contain various renewal options and, in some cases, require payment of common area costs, taxes and utilities. These operating leases expire at various times through

2028.

Rent expense was

$0.7

million and

$0.6

million for the

three

months ended

June 30, 2018

and

2017,

respectively. Rent expense was

$1.3

million and

$1.1

million for the

six

months ended

June 30, 2018

and

2017,

respectively.

Future minimum lease payments under noncancelable operating leases at

June 30, 2018,

are as follows (in thousands):

Year ending December 31,	Amount
2018 (remaining six months)	$	718
2019		1,307
2020		1,374
2021		1,291
2022		1,061
2023 and thereafter		4,264
Total future minimum lease payments	$	10,015

April 2018,

the Company entered into a new approximately

20,800

square foot lease, located in Santa Clara, California. The term of the new lease is approximately

ten

years commencing on or around

September 1, 2018.

Total lease obligation over the new lease term is approximately

$7.0

million, less a lease abatement allowance of approximately

$0.4

million. The terms of the new lease include a tenant improvement allowance of approximately

$1.3

million. Future minimum lease payments under the lease are included in the above table.

Indemnifications

— The Company generally provides a warranty to its customers that its software will perform substantially in accordance with documented specifications typically for a period of

days following initial delivery of its products. The Company also indemnifies certain customers from

third

-party claims of intellectual property infringement relating to the use of its products. Historically, costs related to these guarantees have

not

been significant. The Company is unable to estimate the maximum potential impact of these guarantees on its future results of operations.

Purchase obligations

— The Company has purchase obligations with certain suppliers for the purchase of goods and services entered in the ordinary course of business. As of

June 30, 2018,

total outstanding purchase obligations were

$13.7

million, which are primarily due within the next

months.

Indemnification of Officers and Directors

— As permitted by the Delaware general corporation law, the Company has included a provision in its certificate of incorporation to eliminate the personal liability of its officers and directors for monetary damages for breach or alleged breach of their fiduciary duties as officers or directors, other than in cases of fraud or other willful misconduct.

In addition, the Bylaws of the Company provide that the Company is required to indemnify its officers and directors even when indemnification would otherwise be discretionary, and the Company is required to advance expenses to its officers and directors as incurred in connection with proceedings against them for which they

may

be indemnified. The Company has entered into indemnification agreements with its officers and directors containing provisions that are in some respects broader than the specific indemnification provisions contained in the Delaware general corporation law. The indemnification agreements require the Company to indemnify its officers and directors against liabilities that

may

arise by reason of their status or service as officers and directors other than for liabilities arising from willful misconduct of a culpable nature, to advance their expenses incurred as a result of any proceeding against them as to which they could be indemnified, and to obtain directors’ and officers’ insurance if available on reasonable terms. The Company has obtained directors’ and officers’ liability insurance in amounts comparable to other companies of the Company’s size and in the Company’s industry. Since a maximum obligation of the Company is

not

explicitly stated in the Company’s Bylaws or in its indemnification agreements and will depend on the facts and circumstances that arise out of any future claims, the overall maximum amount of the obligations cannot be reasonably estimated.

Litigation

— From time to time, the Company is subject to various claims and legal proceedings that arise in the ordinary course of business. The Company accrues for losses related to litigation when a potential loss is probable and the loss can be reasonably estimated in accordance with FASB requirements. As of

June 30, 2018,

the Company was

not

party to any material legal proceedings, thus

loss was probable and

amount was accrued.