21. Commitments and Contingencies

Shelton Operating Lease

As of December 31, 2015, the Company leases its operating facility located in Shelton, Connecticut. The lease agreement, as amended, requires monthly lease payments through October 13, 2017. At inception of the lease, the Company received an incentive allowance from the landlord of $2,127. The Company recorded the incentive allowance as leasehold improvements and deferred lease obligation. The Company is recording monthly rent expense associated with the lease on a straight-line basis over the ten-year minimum term of the lease reduced by the amortization of the deferred lease obligation over the same time period. As a result of this straight-line basis, deferred lease obligation includes $374 and $582 of unamortized incentive allowance plus $211 and $292 of accrued rent at December 31, 2015 and 2014, respectively.

Total rent expense under the operating lease was $665, $643 and $616 for the years ended December 31, 2015, 2014 and 2013, respectively.

Future minimum rental payments under the Shelton operating lease at December 31, 2015 are as follows:


2016	$	913
2017		740

Total	$	1,653

In conjunction with the signing of the Shelton, Connecticut lease, the Company entered into a standby letter of credit agreement for $2,170, which expires on May 31, 2017 as a security deposit for the premises. In accordance with the terms of the lease, because no drawing was made against the standby letter of credit nor has any default under the operating lease occurred, the amount of the letter of credit was automatically reduced by $294 annually starting March 1, 2008 until the stated amount reached a balance of $700, which occurred in 2012. This standby letter of credit is secured with restricted cash (refer to Note 7, Restricted Cash).

In connection with the relocation of the Company’s operating facility from Shelton to Stamford, Connecticut (see below), as of December 31, 2015, the Company was negotiating with the Shelton landlord regarding the Company’s future obligations under the Shelton lease.

The Company is accelerating the amortization of the Shelton leasehold improvements from the date of signing of the Stamford lease through the expected date that the Company will vacate the Shelton facility. Additional amortization expense as a result of such acceleration amounted to $67 during the year ended December 31, 2015 and will be $899 for the period from January through May 2016.

Stamford Operating Lease

In December 2015, the Company entered into a lease agreement (the “Stamford Lease”) with Four Stamford Plaza Owner LLC (the “Landlord”) for office space in Stamford, Connecticut (the “Premises”). The purpose of the Stamford Lease is to relocate the Company’s corporate headquarters. The Stamford Lease commences upon completion of renovations to the Premises, which is expected to be in May 2016 (the “Commencement Date”), and ends 90 months thereafter. The Stamford Lease requires monthly lease payments, including rent escalations and rent holidays, during the initial lease term. The Company will begin to make rental payments from the Commencement Date. The Stamford Lease is renewable for one five-year term.

In connection with the signing of the Stamford Lease, the Company entered into a standby letter of credit agreement for $769, which serves as a security deposit for the Premises. The standby letter of credit expires on December 16, 2016 and is automatically renewed annually through November 1, 2023. This standby letter of credit will be secured with restricted cash in a money market account, although the restricted money market account was not established until January 2016 (refer to Note 7, Restricted Cash).

Future minimum rental payments under the Stamford Lease at December 31, 2015 are as follows:


2016	$	288
2017		875
2018		1,093
2019		1,217
2020		1,241
Thereafter		3,650

Total	$	8,364

Under the Stamford Lease, the Landlord will contribute approximately $1,021 toward the cost of tenant improvements to the Premises as an incentive allowance. At the Commencement Date, the Company will record the incentive allowance as a leasehold improvements asset and a deferred lease obligation liability. The Company will record monthly rent expense associated with the Stamford Lease on a straight-line basis from the Commencement Date through the 7.5-year minimum term of the Stamford Lease, reduced by the amortization of the deferred lease obligation over the same time period.