17. Commitments

On May 15, 2015, the Company amended its March 2013 operating lease for office space in Boston, Massachusetts (the “Second Amendment”). The Second Amendment provides the Company additional square footage of approximately 3,000 square feet. The Company has committed to lease this space for a period of six years. The Second Amendment contains rent escalation that is being accounted for as rent expense under the straight-line method. The Company will record rent expense of approximately $14 per month on a straight-line basis over the effective lease term.

On September 9, 2015, the Company acquired Bioceros, located in Utrecht, The Netherlands. As part of the acquisition, the Company acquired a lease for approximately 5,800 square feet consisting of lab and office space. The lease is for 7 years, commencing on January 1, 2011 and ending December 31, 2018. The Company will record approximately $25 per month on a straight-line basis over the effective lease term.

On October 15, 2015, the Company signed a lease for approximately 4,400 square feet of office space in Zug, Switzerland. The Company has committed to lease this space through March 31, 2017 and will record approximately $17 per month on a straight-line basis over the effective lease term.

As of December 31, 2015, future minimum lease payments under all of the Company’s operating leases are as follows:


	December 31, 2015
2016	$	2,399
2017		1,092
2018		644
2019		655
2020		666
2021 and thereafter		464
Total	$	5,920
Less: Future sublease payments to be received		(1,124)
Net future lease payments	$	4,796

Rent expense under operating lease agreements amounted to approximately $727 and $366 for the years ended December 31, 2015 and 2014, respectively. Rent expense is reported net of sublease income.

License Agreements

From time to time, the Company enters into various licensing agreements whereby the Company may use certain technologies in conjunction with its product research and development.

Catalent Pharma Solutions, LLC

In January 2009, Moksha8 entered into a cell line sale agreement (“the Cell Line Agreement”) with Catalent Pharma Solutions (“Catalent”) for the acquisition of a gene expression cell line for BOW015 (“the GPEx Cell Line,”) developed by Catalent for Moksha8 pursuant to a separate development and manufacturing agreement dated July 14, 2008. The Cell Line Agreement was assigned to the Company on May 14, 2009, and was amended July 31, 2009 to revise certain payment-related terms. Under the terms of the Cell Line Agreement, the Company exercised an option to acquire all rights in the GPEx Cell Line for development and commercialization of products using the GPEx Cell Line, namely BOW015, subject to certain obligations to make contingent payments to Catalent.

The Company paid Catalent approximately $100 on execution of the Cell Line Agreement, and paid a further approximately $100 upon exercise of its option to complete the purchase of the GPEx Cell Line. The Company is required to make additional payments to Catalent of up to approximately $700 in the aggregate upon the achievement of certain development and regulatory milestones. In March 2013, the Company paid approximately $200 to Catalent upon the occurrence of certain clinical trial events for BOW015. Pursuant to the agreement, the Company will be obligated to pay approximately $500 upon the achievement of certain development and regulatory milestones. In addition, the Company will be required to pay a contingent sale fee in the form of royalties on worldwide net sales of BOW015 and any other product manufactured using the GPEx Cell Line at a percentage in the very low single digits for a period of 20 years following the first commercial sale of such product, and thereafter at a rate of less than one percent.

Either the Company or Catalent may terminate the Cell Line Agreement on 60 days' notice for the other party's material breach of the agreement, or for the other party's insolvency, and in the event of Catalent's termination for the Company’s material breach of the Cell Line Agreement, the Company’s ownership rights in the GPEx Cell Line would revert to Catalent. If the Company terminates the Cell Line Agreement for Catalent's breach, it will retain ownership of the GPEX Cell Line, but its payment obligations to Catalent will terminate.