11. Commitments and Contingencies

Leases

The Company leases office and laboratory space under various operating lease agreements for its Cambridge, MA location that, as amended, expire between March 2015 and January 2018. The Company recorded rent expense of $171 and $71 during the three months ended September 30, 2015 and 2014 and $563 and $157 during the nine months ended September 30, 2015 and 2014, respectively.

On November 2, 2015, the Company entered into an operating lease agreement with ARE-MA Region No. 20, LLC (“ARE”) for approximately 17,500 square feet of laboratory and office space located at 19 Presidential Way, Woburn, Massachusetts. Rent payments will commence on February 15, 2016 and will continue for a term of 5 years from substantial completion of the building improvements, which is currently estimated to be on or around April 1, 2016. Annual rent under the lease, exclusive of operating expenses and real estate taxes, will be approximately $0.4 million for the first year, with annual increases of $1.00 per square foot each year thereafter. Under the terms of the lease, ARE will contribute $35.00 per rentable square foot towards a tenant improvement allowance, which is included in the base rent set forth in the lease. The ARE lease contains customary provisions allowing ARE to terminate our lease should we fail to remedy any breach of our obligations within specified time periods, or upon our bankruptcy or insolvency.

The following table summarizes the future minimum lease payments under the Cambridge and Woburn operating leases:


Year Ending December 31,
2015 (remainder of year)	$	173
2016		1,111
2017		1,203
2018		548
2019		503
2020		521
2021		131

Total	$	4,190

The Company is further responsible for its pro rata share of operating expenses, real estate taxes and utilities of the facility housing the leased office and laboratory space.

License Agreements

The Company has entered into two license agreements with REGENX under which it is obligated to make contingent payments. See Notes 8 and 14 to the financial statements included in the Company’s final prospectus dated October 21, 2015, filed pursuant to Rule 424(b)(4) under the Securities Act of 1933 on October 22, 2015 for further information.

Research and Development Agreement

In June 2015, the Company entered into a three-year cooperative research and development agreement with the Eunice Kennedy Shriver National Institute of Child Health and Human Development, an institute of the U.S. National Institutes of Health, to conduct on behalf of the Company a non-clinical study to investigate the effectiveness of a potential gene therapy treatment for patients with GSDIa. Under the agreement, the Company is obligated to make noncancelable research funding payments of $244 annually, aggregating total payments of $732.

Legal Proceedings

The Company is not currently party to any material legal proceedings. At each reporting date, the Company evaluates whether or not a potential loss amount or a potential range of loss is probable and reasonably estimable under the provisions of the authoritative guidance that addresses accounting for contingencies. The Company expenses as incurred the costs related to its legal proceedings.

Indemnification Agreements

In the ordinary course of business, the Company may provide indemnification of varying scope and terms to vendors, lessors, business partners and other parties with respect to certain matters including, but not limited to, losses arising out of breach of such agreements or from intellectual property infringement claims made by third parties. In addition, the Company has entered into indemnification agreements with members of its board of directors that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is, in many cases, unlimited. To date, the Company has not incurred any material costs as a result of such indemnifications. The Company is not aware of any claims under indemnification arrangements, and it has not accrued any liabilities related to such obligations in its condensed financial statements as of September 30, 2015.