15. Commitments and Contingencies

In December 2014, the Company entered into a lease agreement, pursuant to which the Company will lease office, laboratory and storage space in a new building being constructed adjacent to the Company’s headquarters. The new lease agreement has a ten-year term and is estimated to commence in April 2016. At the same time, the Company entered into an amendment to the existing lease on its headquarters, to be coterminous with the new lease. The Company has an option to extend the term of both leases for two additional periods of five years. The initial base rent on the new lease will be approximately $88,356 per month, subject to rent abatement during the first three months of the lease. Beginning January 1, 2015, the base rent on the amended lease will be approximately $150,361 per month. Base rents under both leases will increase at a rate of 3% annually. In addition, the leases require the Company to pay a property management fee equal to 3% of the base rent. The leases also obligate the landlord to fund tenant improvements, grant the Company a right of first refusal and right of first offer with respect to portions of the buildings, require the Company to reimburse the landlord for certain operating expenses, and include terms related to parking.

In December 2014, the Company entered into a one-year lease agreement, pursuant to which the Company will rent temporary office and laboratory space commencing in March 2015. The base rent on the new lease will be $52,537 per month. In addition, the lease requires the Company to pay a property management fee equal to 3% of the base rent.

In December 2014, the Company entered into an amendment effective as of November 2014 to an existing lease, pursuant to which the Company leases office space in a building nearby its headquarters. The amendment increases the size of the leased premises effective February 2015 and extends the term of the lease through January 2025. The Company also has an option to extend the term of the lease for one additional three year period at the then-current fair market rent for comparable space. The base rent will be $38,205 per month beginning in February 2015, and $63,473 per month beginning in February 2016; thereafter, the rent will increase at a rate of approximately 2% annually. The amendment obligates the landlord to fund a substantial portion of tenant improvements, and includes terms related to parking and a right of first offer and right of first refusal with respect to a portion of the building.

Rent expense totaled approximately $1.4 million, $1.2 million and $856,000 for the years ended December 31, 2014, 2013 and 2012, respectively.

Future minimum lease payments under noncancelable capital and operating leases as of December 31, 2014 were as follows:


	(In thousands)
2015	$	3,034
2016		3,483
2017		3,794
2018		3,852
2019		3,962
Thereafter		26,340

	$	44,465

The Company has purchase obligations totaling $6.7 million at December 31, 2014 related to binding commitments to purchase inventory.

From time to time, the Company may become involved in litigation relating to claims arising from the ordinary course of business. Management believes that there are no claims or actions pending against the Company currently, the ultimate disposition of which would have a material adverse effect on the Company’s consolidated results of operation, financial condition or cash flows.