Commitments and Contingencies

The Company leases facilities in Ann Arbor, Michigan and Cambridge, Massachusetts. In March 2016, the Company amended its current lease in Cambridge to, among other provisions, extend the term until February 2022. Under the amendment, the landlord will contribute approximately $2.0 million toward the cost of tenant improvements. The contribution toward the cost of tenant improvements is recorded as deferred rent on the Company's condensed consolidated balance sheet and is amortized to our condensed consolidated statement of operations as reductions to rent expense over the lease term. As of March 31, 2018, the Company has recorded $1.7 million of leasehold improvements funded by the tenant improvement allowance.

In addition to the property leases, the Company also leases an offsite warehouse, various vehicles and computer equipment. The Company's purchase commitments consist of minimum purchase amounts of materials used in the Company's cell manufacturing process to manufacture its marketed cell therapy products.

As of March 31, 2018, future minimum payments related to leases and other contractual obligations are as follows:



(In thousands)	Total		2018		2019		2020		2021		2022		More than 5 years
Operating leases	$	18,444	$	3,679	$	4,710	$	4,699	$	4,595	$	761	—
Purchase commitments	3,244		462		718		688		688		688		—
Capital leases	101		63		14		10		10		4		—
Debt and Interest Related Payments	18,413		1,431		6,068		5,620		5,294		$	—	$	—
Total	$	40,202	$	5,635	$	11,510	$	11,017	$	10,587	$	1,453	$	—

Rent expense for the three months ended March 31, 2018 and 2017 was $1.5 million and $1.3 million, respectively.

License Agreement

On May 10, 2017, the Company announced that it has entered into a License Agreement (License Agreement) with Innovative Cellular Therapeutics CO., LTD. (ICT), a leading cell therapy company and developer of CAR-T cell therapy for cancer treatment, for the development and distribution of the Company's product portfolio in Greater China, South Korea, Singapore, and other countries in Asia. ICT acquired an exclusive license to certain patent rights, know-how and intellectual property relating to Carticel, MACI, ixmyelocel-T, and Epicel. The remaining variable consideration, which is related to the development and commercialization milestones and royalty based payments are monitored for completion and related revenue recognition as discussed in note 4.