5. Commitments and Contingencies

Leases

The Company entered into an operating lease agreement in May 2010 for its San Jose headquarters that was subsequently modified in November 2013, which extended the term of the lease for a period of approximately one hundred thirty-nine (139) months from the date of the modified agreement and provided the Company with four months of free rent. In addition, the Company received a tenant improvement allowance of $1.0 million in the aggregate that was paid to the Company in equal installments over the course of the ten months after the date of the modified agreement to be used for the modification, refurbishment, construction or installation of improvements to the facility.

The following table presents rent expense included in the Consolidated Statement of Operations (in thousands):


	Years Ended December 31,
	2015		2014		2013
Rent expense	$	2,268	$	2,268	$	1,377

Future commitments and obligations under this operating lease to be satisfied as they become due over the term are as follows (in thousands):


The years ending December 31,
2016		2,350
2017		2,399
2018		2,459
2019		2,521
2020		2,584
Thereafter		12,452
Total	$	24,765

During 2015, the Company made payments in the amount of $1.7 million related to this operating lease. In December 2015, the company signed a sublease to lease out a portion of office space. The sublessee is expected to move in during Q2 2016. The term of the lease is for 3 years and the company will receive approximately $0.3 million in rental income annually.

Symyx Asset Purchase and Note Payable

In connection with the consummation of the Symyx asset purchase transaction in November 2011, the Company issued Symyx a secured promissory note in a principal amount equal to $27.3 million with a term of 24 months and an interest rate equal to 4%. On May 31, 2013, the Company used $25.0 million of the net proceeds from a revolving line with SVB and $1.5 million of cash to retire and repay all remaining principal and accrued interest due on the note. Over the life of the Symyx note the Company paid a total of $29.0 million, of which approximately $1.6 million related to interest.

The following table presents payments made during the years ended December 31, 2013 in connection with the note payable to Symyx (in thousands):


	Year Ended December 31, 2013
	Principal		Interest		Total
Symyx payments	$	26,516	$	437	$	26,953

Silicon Valley Bank Loan Agreement

During 2013, the Company entered into a loan agreement (Loan Agreement) with SVB in the amount of $25.0 million with interest at a fixed rate equal to 3.25%. The Loan Agreement had a financial covenant that required the Company to maintain a certain level of liquidity, and, as of December 31, 2014, the Company was compliant with the terms of that loan covenant. The term loan was to mature on November 30, 2016 and the Company was obligated to pay all outstanding principal and accrued and unpaid interest on that date. In August 2015, the Company repaid all remaining principal and accrued interest in the amount of $21.6 million.

The following table presents payments made during the years ended December 31, 2015 and 2014 for interest owed under the terms of the Loan Agreement (in thousands):


	Year Ended December 31, 2015
	Principal		Interest		Total
SVB payments	$	23,000	$	652	$	23,652

	Year Ended December 31, 2014
	Principal		Interest		Total
SVB payments	$	2,000	$	664	$	2,664

Litigation

The Company is subject to various claims arising in the ordinary course of business. Although no assurance may be given, the Company believes that it is not presently a party to any litigation of which the outcome, if determined adversely, would individually or in the aggregate be reasonably expected to have a material adverse effect on the business, operating results, cash flows or financial position of the Company.

Third parties and others may claim in the future that the Company has infringed their past, current or future intellectual property rights. These claims, whether meritorious or not, could be time-consuming, result in costly litigation, require expensive changes in the Company's methods of doing business or require the Company to enter into costly royalty or licensing agreements, if available. As a result, these claims could harm the Company's business, operating results, cash flows and financial position.