7. COMMITMENTS AND CONTINGENCIES Operating Lease We lease our facilities under non-cancelable operating leases that expire on various dates through fiscal year 2017 . We entered into a new lease agreement in the U . K . that extended the term of lease to December 24, 2016 . Our lease agreements provide us with the option to renew. We recognize rent expense, which includes fixed escalation amounts in addition to minimum lease payment, on a straight-line basis over each lease term. Rent expense for facilities under operating leases was $ 1.3 million, $ 1.1 million , and $ 779,000 for the fiscal years ended June 30, 2013, 2012 and 2011, respectively. We generated no sublease rental income for the fiscal years 2013, 2012 and 2011, respectively. A summary of future minimum lease payments is as follows (in thousands): Fiscal Year June 30, Operating Leases 2014 $ 1, 184 2015 1, 164 2016 1,200 2017 727 Total minimum lease payments $ 4, 275 Cloud Services We have agreements with third parties to provide co-location services for cloud operations that expire on various dates through fiscal year 201 6 . The agreement requires payment of a minimum amount per month in return for which the cloud services provider provides co-location services with certain guarantees of network availability. Rental expense for co-location centers was $ 761 ,000 , $ 633,000 and $ 438,000 for the fiscal years ended June 30, 2013, 2012 and 2011, respectively. A summary of future minimum payments ( includ ing an estimated new 3 year commitment for one datacenter ) is as follows (in thousands): Fiscal Year June 30, Co-location 2014 $ 542 2015 420 2016 396 Total minimum payments $ 1, 358 Employee benefit plans Defined Contribution Plans We sponsor an employee savings and retirement plan, the 401(k) Plan, as allowed under Section 401(k) of the Internal Revenue Code. The 401(k) Plan is available to all domestic employees who meet minimum age and service requirements, and provides employees with tax deferred salary deductions and alternative investment o