Commitments

In March 2014, the Company entered into an office lease (the "Lease") for its corporate headquarters located at 600 W. Germantown Pike, Suite 100, in Plymouth Meeting, Pennsylvania, and occupied the new space in June 2014. The initial term of the Lease is 11.5 years. The Company intends to use the facility for office purposes. The base rent adjusts periodically throughout the 11.5 year term of the Lease, with monthly payments ranging from $0 to $58,000. In addition, the Company will pay the landlord for its share of operating expenses and a property management fee and have paid a security deposit of $49,000.

The lease required the lessor to complete and pay for certain improvements to the building before the commencement of the lease. The lessor completed these improvements worth approximately $933,000, which have been recorded as a leasehold improvement within fixed assets on the consolidated balance sheet, offset by a corresponding amount recorded in deferred rent.

The lease for the Company's former corporate headquarters in Blue Bell, Pennsylvania runs through June 30, 2017. The lease was amended in July 2014 to allow for the lessor the option to recapture all or a portion of the premises. In October 2014, the lessor exercised the option to recapture a portion of the premises. A minimal termination fee was recorded in 2014 and the monthly payments for the remaining space have been prorated to reflect the decrease in square footage. The facility was not completely vacated as of December 31, 2014, therefore no cease-use accrual has been recorded.

The Company's corporate office in San Diego is located at 10480 Wateridge Circle in San Diego, California. This lease was signed in April 2013 and the building was occupied in early December 2013. The term of the Lease runs through December 1, 2023. The base rent adjusts periodically throughout the ten year term of the Lease, with monthly payments ranging from $0 to $83,000. In addition, the Company will pay the landlord its share of operating expenses and a property management fee and has paid a security deposit of $64,000.

The lease required the lessor to complete and pay for certain improvements to the building before the commencement of the lease in December 2013. The lessor completed these improvements worth approximately $2.5 million, which have been recorded as a leasehold improvement within fixed assets on the consolidated balance sheet, offset by a corresponding amount recorded in deferred rent.

Rent expense was $1.2 million, $906,000, and $444,000 for the years ended December 31, 2014, 2013 and 2012, respectively. Future minimum lease payments under non-cancelable operating leases as of December 31, 2014 are as follows:



2015	$	621,000
2016	1,323,000
2017	1,298,000
2018	1,275,000
2019	1,506,000
Thereafter	7,722,000
Total	$	13,745,000

In the normal course of business, the Company is a party to a variety of agreements pursuant to which they may be obligated to indemnify the other party. It is not possible to predict the maximum potential amount of future payments under these types of agreements due to the conditional nature of our obligations and the unique facts and circumstances involved in each particular agreement. Historically, payments made by us under these types of agreements have not had a material effect on our business, consolidated results of operations or financial condition.