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Commitments and Contingencies | 12 Months Ended
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Dec. 28, 2013
Commitments and Contingencies | 10. Commitments and Contingencies Lease Agreements. The Company leases its operating facilities under a non-cancelable operating lease. On December 22, 2009, the lease for the Mountain View, California facility was amended and renewed to lease for an additional six year period beginning March 1, 2010 until February 28, 2015. Rent expense totaled $0.6 million for each of the fiscal years 2013, 2012 and 2011. Future minimum lease payments under current operating leases at December 28, 2013 are summarized as follows (in thousands):
Fiscal Year |  | Operating Lease Payments |
2014 |  | $ | 866 |
2015 |  |  | 226 |
2016 |  |  | 92 |
2017 |  |  | 14 |
Total future minimum lease payments |  | $ | 1,198 |
Manufacture and Supply Agreement. In April 2013, the Company entered into a manufacture and supply agreement with Peregrine Surgical Ltd. to manufacture and supply certain components and ophthalmic instrumentation for IRIDEX. Annually, there is a minimum commitment to purchase $750 thousand. In 2013, purchases made under the agreement amounted to $134 thousand. The agreement, which terminates on July 2017, is renewable at the end of the term for successive one year terms. Future minimum payments for manufacture and supply commitments as of December 28, 2013 are summarized as follows (in thousands):
Fiscal Year |  | Contract Manufacturing and Supply Commitments |
2014 |  | $ | 1,178 |
2015 |  |  | 750 |
2016 |  |  | 750 |
2017 |  |  | 375 |
Total contract manufacturing and supply commitments |  | $ | 3,053 |
License Agreements. The Company is obligated to pay royalties equivalent to 5% of sales on certain products under certain license agreements with termination dates as early as the end of 2018 and as late as the end of 2021. Royalty expense, charged to cost of revenues, was approximately $0.1 million, $0.1 million, and $0.2 million for the fiscal years 2013, 2012 and 2011, respectively. Indemnification Arrangements. The Company enters into standard indemnification arrangements in our ordinary course of business. Pursuant to these arrangements, the Company indemnifies, holds harmless, and agrees to reimburse the indemnified parties for losses suffered or incurred by the indemnified party, generally our business partners or customers, in connection with any trade secret, copyright, patent or other intellectual property infringement claim by any third-party with respect to our products. The term of these indemnification agreements is generally perpetual anytime after the execution of the agreement. The maximum potential amount of future payments the Company could be required to make under these agreements is not determinable. The Company has never incurred costs to defend lawsuits or settle claims related to these indemnification agreements. As a result, the Company believes the estimated fair value of these agreements is minimal. The Company has entered into indemnification agreements with its directors and officers that may require the Company to indemnify its directors and officers against liabilities that may arise by reason of their status or service as directors or officers, other than liabilities arising from willful misconduct of a culpable nature; to advance their expenses incurred as a result of any proceeding against them as to which they could be indemnified; and to make good faith determination whether or not it is practicable for the Company to obtain directors and officers insurance. The Company currently has directors and officers liability insurance. In general, management believes that claims which are pending or known to be threatened, will not have a material adverse effect on the Company’s financial position or results of operations and are adequately covered by the Company’s liability insurance. However, it is possible that cash flows or results of operations could be materially affected in any particular period by the unfavorable resolution of one of more of these contingencies or because of the diversion of management’s attention and the incurrence of significant expenses.

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- Definition The entire disclosure for commitments and contingencies. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.25) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6449706&loc=d3e16207-108621 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 460 -SubTopic 10 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=6398077&loc=d3e12565-110249 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 450 -SubTopic 20 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=25496072&loc=d3e14435-108349 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 440 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6394976&loc=d3e25287-109308 + Details
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