Commitments

Operating Leases

The Company leases office space for its general and administrative, supply chain and inventory management and research and product development operations in Emeryville, California under a non-cancelable operating lease that expires in November 2022. The base rent is subject to a 3% increase each year for the duration of the lease. Under the terms of the lease, as amended, the Company received an option to expand into additional space under certain conditions, as well as a renewal option for an additional five year term upon the expiration date. The Company will also pay a portion of common area and pass-through expenses in excess of base year amounts.

The Company also leases office facilities in San Diego, California, under a non-cancelable operating lease that expires in March 2020. The base rent will increase approximately 3.25% on an annual basis throughout the term. The Company is also required to pay a portion of common area and pass-through expenses in excess of base year amounts. This space is used primarily for general and administrative personnel. The Company received incentives of abated rent for approximately 4.5 months of the lease term totaling $332,000, additional rent abatements of $36,000 and a tenant improvement allowance of up to $382,000.

The Company recognizes rent expense on a straight-line basis over the non-cancelable term of its operating leases. Rent expense for the years ended December 31, 2015, 2014 and 2013 was $1,530,000, $870,000 and $829,000, respectively.

Future minimum lease payments required under operating leases that have initial or remaining noncancelable lease terms in excess of one year as of December 31, 2015 are as follows (in thousands):



2016	$	1,783
2017	1,838
2018	1,896
2019	1,955
2020	1,234
Thereafter	1,949
Total	$	10,655

Manufacturing and Supply Agreements

The Company has a manufacturing services agreement with Patheon UK Limited (Patheon) for the aseptic capsule assembly, filling and inspection, final system assembly and purchasing of Sumavel DosePro, as well as other manufacturing and support services, which expires on April 30, 2016. The parties may mutually agree in writing to renew the term for additional terms prior to the expiration of the then-current term. The Company is committed to pay Patheon remaining monthly manufacturing fees totaling $2,499,000 (based on the exchange rate as of December 31, 2015) through the remaining term of the agreement and an additional asset retirement obligation amount of $388,000 to restore Patheon's facility to its previous condition.

The Company has manufacturing and supply agreements with several third-party suppliers for the production of key components of Sumavel DosePro, which expire on various dates through 2020. As of December 31, 2015, the Company has non-cancellable purchase orders totaling approximately $1,253,000 for 2016 (based on the exchange rate as of December 31, 2015) under these arrangements.