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Commitments and Contingencies
 12 Months Ended
Dec. 31, 2012
Commitments and Contingencies [Abstract]  
Commitments and Contingencies
Note 17. Commitments and Contingencies
 
Legal Matters
 
We are subject to legal proceedings and claims, either asserted or unasserted, that arise in the ordinary course of business. While the outcome of these proceedings and claims cannot be predicted with certainty, management does not believe that the outcome of any of these legal matters will have a material adverse effect on our consolidated financial position, results of operations or cash flows.
 


Leases
 
We lease certain office space, manufacturing facilities and equipment under long-term operating leases expiring at various dates through February 2016. The majority of our lease obligation relates to our lease agreement for the facility at Fremont, California with approximately 27,760 square feet commenced on December 1, 2008 for a term of seven years, with an option by us to cancel the lease after five years, upon forfeiture of the security deposit and payment of one-half of the fifth year's rent. Total rent expenses under these operating leases were $447,000, $460,000 and $308,000 for the years ended December 31, 2012, 2011 and 2010, respectively. Total minimum lease payments under these leases as of December 31, 2012 are summarized below (in thousands):

Lease Payments
 
2013
$                396
2014
322
2015
295
2016
1
 
$             1,014
 

Royalty Agreement

We entered into a royalty agreement with a vendor effective December 3, 2010 with a term of eight years, terminating December 31, 2018.  We and our related companies are granted a worldwide, nonexclusive, royalty bearing, irrevocable license to certain patents for the term on the agreement. We shall pay a total of $7.0 million royalty payment over eight years that began in 2011 based on future royalty bearing sales.  Royalty expense under this agreement was $1.4 million and $1.3 million for the years ended December 31, 2012 and 2011, respectively, and was included in cost of revenue. Total royalty payments under this agreement as of December 31, 2012 are summarized below (in thousands):

 
Royalty Payments
 
2013
$                 800
2014
800
2015
800
2016
575
2017
575
Thereafter
575
 
$              4,125