14. COMMITMENTS AND CONTINGENCIES The Company has a lease agreement for a facility in Fremont, California that was amended in December 2012 to extend the lease agreement to September 2016. In September 2014, the Company signed the second amendment to its facility lease agreement in Fremont, California to add space and to extend the lease term through September 2019. In addition, the amended lease agreement provides for a tenant improvement allowance of up to $0.6million. In May 2016, the Company signed a third amendment to its facility lease agreement in Fremont, California to add space and to extend the lease term through September 2021 (the Third Amendment). The Third Amendment provides for a tenant improvement allowance of up to $0.4million and the extended lease has rent escalation clauses throughout the lease term. Rent increases, including the impact of a rent holiday and leasehold improvement allowance from the landlord, will be recognized as deferred rent and amortized on a straight-line basis over the term of the lease. Under the terms of the lease agreement, the Company provided the lessor with a security deposit in the amount of $0.1million. The lessor shall be entitled to draw on the security deposit in the event of any uncured default by the Company under the terms of the lease. The future minimum payments under the noncancelable operating lease at December31, 2016, are as follows (in thousands): Year ending December31, Amounts 2017 $ 1,460 2018 1,502 2019 1,686 2020 2,026 2021 1,439 Total $ 8,113 Rent expense under operating leases was $1.3million, $0.9million and $0.6million for the years ended December31, 2016, 2015 and 2014, respectively. Guarantees and Indemnifications The Company indemnifies each of its officers and directors for certain events or occurrences, subject to certain limits, while the officer or director is or was serving at our request in such capacity, as permitted under Delaware law and in accordance with our certificate of incorporation and bylaws. The term of the ind