COMMITMENTS AND CONTINGENCIES Term Note Payable Under the 2018 Loan Agreement with Solar Capital (see Note 10), as of December 31, 2018 , the Company was obligated to make future minimum principal payments, excluding the $1,800,000 fee that will be due upon repayment of the term loan in full, as follows: Years Ending December 31 (In thousands) 2019 $  2020 8,333 2021 20,000 2022 11,667 Total 40,000 Less unamortized repayment fee (1,296 ) Less unamortized deferred financing costs (831 ) Less current portion  Non-current portion $ 37,873 As of December 31, 2018 and 2017 , the Company had $345,000 and $363,000 accrued and unpaid interest payable under the 2018 Loan Agreement with Solar Capital and the Hercules Loan Agreement, respectively. These amounts are included in accounts payable on the Companys Consolidated Balance Sheets. Operating Leases The Company leases office space and equipment under non-cancelable agreements accounted for as operating leases. The leases generally require that the Company pay taxes, maintenance and insurance. Management expects that in the normal course of business, leases that expire will be renewed or replaced by other leases. In August 2014, the Company signed a lease for office space in the U.S. through September 2021. In December 2014, Alimera UK signed a lease for office space in the United Kingdom through December 24, 2024, although the lease is cancellable after December 17, 2019. The lease has a contingent escalation clause based on inflation beginning in 2020. The Company also leases office space in Ireland, Germany and Portugal under leases that expire in June 2019, June 2021 and March 2020, respectively. As of December 31, 2018 , a schedule by year of future minimum payments under all of the Companys operating leases is as follows: Years Ending December 31 (In thousands) 2019 $ 564 2020 421 2021 300 Total $ 1,285 Rent expense under all operating leases totaled approximately $509,000 and $499,000 for the years ended December 31, 2018 and 2017 , respectively. Capital Leases The Company leases equipment under capital leases. The property and equipment is capitalized at the lesser of fair market value or the present value of the minimum lease payments at the inception of the leases using the Companys incremental borrowing rate. As of December 31, 2018 , a schedule by year of future minimum payments under capital leases, together with the present value of minimum lease payments, is as follows (in thousands): Years Ending December 31 (In thousands) 2019 $ 328 2020 297 2021 76 Total 701 Less amount representing interest (42 ) Less amount representing executory costs (118 ) Present value of minimum lease payments 541 Less current portion (236 ) Non-current portion $ 305 Property and equipment under capital leases, which are included in property and equipment (Note 6), consisted of the following: December 31, 2018 2017 (In thousands) Automobiles $ 870 $ 663 Office equipment 60 63 Less accumulated depreciation (315 ) (311 ) Total $ 615 $ 415 Depreciation expense associated with property and equipment under capital leases was approximately $281,000 and $172,000 for the years ended December 31, 2018 and 2017 , respectively. Significant Agreements In February 2010, the Company entered into an agreement with a third party manufacturer for the manufacture of the ILUVIEN implant, the assembly of the ILUVIEN applicator and the packaging of the completed ILUVIEN commercial product. The Company is responsible for supplying the ILUVIEN applicator and the active pharmaceutical ingredient. In accordance with the terms of the agreement, the Company must order at least 80% of the ILUVIEN units required in the U.S., Canada and the EEA from the third party manufacturer. This agreement had an initial term of six years. After that six -year term ended, the agreement automatically renewed for successive one -year periods. In February 2016, the Company and the third party manufacturer amended and restated this agreement to extend the term by five years, at which point the agreement will automatically renew for successive one -year periods unless either party delivers notice of non-renewal to the other party at least 12 months before the end of the term or any renewal term. In May 2013, the Company entered into an agreement with the first of three contract research organizations (CROs) for clinical and data management services to be performed in connection with the five -year, post-authorization, open label registry study in patients treated with ILUVIEN per the labeled indication in the EEA. Since May 2013, the company has entered into twelve additional agreements for work with these CROs. For the years ended December 31, 2018 and 2017 , the Company incurred $141,000 and $101,000 , respectively, of expense associated with these agreements. As of December 31, 2018 and 2017, $4,000 and $67,000 , respectively, is included in accrued expenses (Note 8). As of December 31, 2018, the Company expects to incur an additional $210,000 of expense associated with these agreements through December 31, 2019. Employment Agreements The Company is party to employment agreements with four executives. The agreements generally provide for annual salaries, bonuses and benefits and for the at-will employment of such executives. Effective January 1, 2019, the Company is party to four agreements with annual salaries ranging from $332,000 to $525,000 . If any of the agreements are terminated by the Company without cause, or by the employee for good reason, as defined in the agreements, the Company will be liable for one year to 18 months of salary and benefits. Certain other employees have general employment contracts that include stipulations regarding confidentiality, Company property, severance in an event of change of control and miscellaneous items.