. Commitments and contingencies

Operating leases

December

31,

2016,

the Company leases facilities under

six

non-cancelable operating leases, with terms that expire between

2017

and

2021.

The Company leases office, storage/warehouse, laboratory and manufacturing space in Abingdon, U.K., which leases are due to expire on

January

31,

2025

(with respect to the storage/warehouse facility) and

June

11,

2019.

March

2013,

the Company signed a

five

year lease for its U.S. corporate headquarters in Marlborough, Massachusetts. In

August

2015,

the Company entered into a lease amendment for this location to extend the term of the lease by

two

years through

October

31,

2020.

In addition, the lease amendment expanded the Company’s office space at this location by

7,600

square feet to a new total of

22,100

square feet. The base rent for the combined space over the lease term will range from an initial low of

$36,000

per month, which includes

$12,000

per month for the expansion space commencing in early

2016,

to a high of

$39,000

per month. The Company will have an option to extend the lease for

one

additional term of

five

years. In addition, the Company leases laboratory space in Memphis, Tennessee, which lease is due to expire on

December

31,

2021.

The Company has an option to extend the lease for

two

additional terms of

five

years each. The

two

laboratory facilities acquired in

2016

are located in Norwood and Boston, Massachusetts. The Company currently leases approximately

22,000

square feet of space in Norwood and approximately

18,000

square feet in Boston. The Norwood lease expires in

2021,

while the Boston lease expires in

2018.

The Company’s current rent under the Norwood lease is

$412,000

annually, subject to annual increases. The Company’s current rent under the Boston lease is

$263,000

annually.

Future minimum lease payments required under the non-cancelable operating leases in effect as of

December

31,

2016

are as follows:

(in thousands)	December 31, 201 6
2017	$	1,945
2018		1,852
2019		1,406
2020		1,126
2021		659
Thereafter		192
Total minimum lease payments	$	7,180

Rent expense is calculated on a straight-line basis over the term of the lease. Rent expense recognized under operating leases totaled

$1.4

million,

$0.9

million and

$0.7

million for the years ended

December

31,

2016,

2015

and

2014,

respectively.

Purchase commitments

The Company has license agreements with

third

parties that provide for minimum royalty, license, and exclusivity payments to be paid by the Company for access to certain technologies. In addition, the Company pays royalties as a percent of revenue as described in Note

13,

“Intellectual property—license agreements” to these consolidated financial statements. In addition, the Company has outstanding purchase obligations to its suppliers.

Future minimum payments required under license agreements and supplier purchase obligations in effect as of

December

31,

2016

are as follows:

(in thousands)	License agreements		Supplier purchase obligations		Total
2017	$	1,518	$	4,189	$	5,707
2018		1,512		447		1,959
2019		1,506		—		1,506
2020		25		—		25
2021		—		—		—
Thereafter		—		—		—
Total minimum payments	$	4,561	$	4,636	$	9,197

Legal contingencies

The Company is subject to claims and assessments from time to time in the ordinary course of business. The Company does not believe that any such matters, individually or in the aggregate, will have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows.

Indemnification

In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties and provide for general indemnification. The Company’s exposure under these agreements is unknown because it involves claims that

may

be made against the Company in the future, but that have not yet been made. To date, the Company has not paid any claims or been required to defend any action related to its indemnification obligations. However, the Company

may

record charges in the future as a result of these indemnification obligations.

In accordance with its articles of association, the Company has indemnification obligations to its officers and directors for certain events or occurrences, subject to certain limits, while they are serving at the Company’s request in such capacity. There have been no claims to date, and the Company has director and officer insurance that

may

enable it to recover a portion of any amounts paid for future potential claims.