7. COMMITMENTS AND CONTINGENCIES Lease Commitments The Company leases office space and data center space under operating lease agreements and certain equipment under capital lease agreements with interest rates ranging from 4% to 7%. Rent expense for operating leases was approximately $4.6 million, $3.5 million and $3.1 million for 2018, 2017 and 2016, respectively. Lease commitments over the next five years as of December 31, 2018 can be summarized as follows (in thousands): Years Ending December 31, Operating Lease Commitments 2019 $ 5,276 2020 3,101 2021 1,594 2022 782 2023 250 2024 33 Total lease commitments $ 11,036 Years Ending December 31, Capital Lease Commitments 2019 $ 3,025 2020 1,558 2021 107 Total minimum capital lease commitments 4,690 Less-amount representing interest (995 ) Total capital lease obligations 3,695 Less-current portion of capital lease obligations (2,328 ) Long-term portion of capital lease obligations 1,367 Contract Commitments The Company is obligated to make payments under various contracts with vendors and other business partners, principally for revenue-share arrangements. Contract commitments as of December 31, 2018 can be summarized as follows (in thousands): Years Ending December 31, Contract Commitments 2019 $ 1,353 2020 753 Total contract commitments $ 2,106 Litigation  The Company is awaiting a decision of an arbitration tribunal following a binding arbitration that took place on July 30, 2018 between the Company and Maxit Technology Incorporated and Maxit Technology Holdings Limited, or Maxit, who were formerly the Companys joint venture partners in China. After unsuccessful settlement discussions between the parties, on January 25, 2016, Maxit requested arbitration under the Rules of the International Chamber of Commerce. In its request for arbitration, Maxit asserted claims for breach of contract, breach of the covenant of good faith and fair dealing, breach of fiduciary duty, and negligent misrepresentation, all arising out of the Companys alleged failure to provide capital and software as required by the joint venture agreement. In its request, Maxit sought an award of money damages based on its share of the lost potential value of the joint venture, as well as a percentage of revenue from any future sales to customers originally introduced by Maxit, interest and legal expenses. Maxit alleges that its share of the lost potential value is approximately $15 million. Based in part on an independent appraisal, the Company assessed the lost potential value at only $0.6 million, for which half of this amount (based on 50/50 ownership) has been reserved in its financial statements. The Company contested Maxits claims vigorously, and while it is not possible at this time to predict the outcome of the arbitration, the Company continues to believe that Maxits claims are without merit. The Company anticipates a decision by the arbitration tribunal before the end of the second quarter of 2019. The Company and its Chief Executive Officer and former Chief Financial Officer were named as defendants in a federal securities class action lawsuit filed April 4, 2018 in the United States District Court for the Southern District of New York. The class includes persons who purchased the Companys shares between May 4, 2016 and March 15, 2018. The plaintiff alleged that the Company made materially false and misleading statements regarding its contract with AT&amp;T and the timing of revenue to be derived therefrom, and that as a result class members suffered losses because Synacor shares traded at artificially inflated prices. The plaintiff sought an unspecified amount of damages, as well as interest, attorneys fees and legal expenses. The court appointed a lead plaintiff and approved plaintiffs selection of lead counsel on July 6, 2018. On October 16, 2018 the court appointed new lead counsel and confirmed the lead plaintiff. The plaintiff filed an amended complaint on November 2, 2018, and the Company filed a motion to dismiss on December 17, 2018. The Company disputes these claims and intends to defend them vigorously. The liabilities related to this lawsuit are covered by D&amp;O insurance after the Company reaches its deductible. In addition, the Company is, from time to time, party to litigation arising in the ordinary course of business. It does not believe that the outcome of these claims will have a material adverse effect on its consolidated financial position, results of operations or cash flows based on the status of proceedings at this time. However, regardless of the outcome, such proceedings can have an adverse impact on the Company because of defense and settlement costs, diversion of resources and other factors.