4. C OMMITMENTS AND C ONTINGENCIES In June 2010, we entered into non-cancelable facility leases for facilities located in Austin, Texas through May 2012 and Mountain View, California through August 2012. In March 2012, we amended the Austin, Texas lease on the same terms and extended the term to May 31, 2013. On July 5, 2012, we terminated our Mountain View, California lease and exited the facility without incurring any early termination costs or penalties. The annual base rent for our Austin, Texas facility is $94,000 per year. Contingent Liabilities Molecular Analytical Systems, Inc. Litigation On July 9, 2007, Molecular Analytical Systems ( MAS ) filed a lawsuit in the Superior Court of California for the County of Santa Clara ( Superior Court ) naming Vermillion and Bio-Rad Laboratories, Inc. ( Bio-Rad ) as defendants (the  State Court lawsuit ). In connection with the State Court lawsuit, MAS alleged that we breached our license agreement with MAS by transferring certain SELDI technology to Bio-Rad without obtaining MAS s consent. MAS listed the value of its claim as in excess of $5,000,000. Thereafter, the Superior Court ordered that the dispute be arbitrated before the Judicial Arbitration and Mediation Service ( JAMS ). MAS filed its demand for arbitration in 2010 and the arbitration hearing occurred in 2011. On February 23, 2012, an interim arbitration award was issued by the Arbitrator. In the interim arbitration award, the Arbitrator denied MAS s claim for breach of the license agreement as well as several other of MAS s claims. The Arbitrator found that MAS was entitled to an accounting concerning our 2% royalty obligation to MAS either through February 21, 2013 or until cumulative royalty payments reach $10 million, whichever comes first, and ordered that such royalties should be based on total GAAP revenues less revenues attributable to certain excluded entities, not just SELDI-related revenues. Subsequently, the parties agreed to resolve (i) any and all remaining royalty obligations owed to MAS fro