Commitments and Contingencies Operating Leases Thpropere Company leases certain of its facilities under noncancelable operating leases with various expiration dates through May 2017. Rent expense was $393 and $388 for the three months and $1,165 and $1,084 for the nine months ended September 30, 2012 and 2011, respectively. Capital Leases The Company acquired capital leases as part of the EDN acquisition. The leases were secured by fixed assets primarily used in a data center. The leases have various expiration dates through October 2012. The interest rates range from 2.9% to 9.7% . In July 2012, the Company entered into a lease agreement to lease certain office equipment with an expiration date in July 2015. The lease bears an annual interest rate of 4.5% and is secured by fixed assets used in the Company's corporate office location. At September 30, 2012, future annual minimum lease payments under noncancelable operating and capital leases were as follows: Capital Leases Operating Leases 2012 remainder $ 7 $ 1,369 2013 18 3,241 2014 18 1,064 2015 10 248 2016 253 2017 107 Total minimum lease payments 53 $ 6,282 Less: Amount representing interest (4 ) Present value of capital lease obligations 49 Less: Current portion (18 ) Long-term portion of capital lease obligations $ 31 Contingencies Under the indemnification provisions of the Company s customer agreements, the Company agrees to indemnify and defend and hold harmless its customers against, among other things, infringement of any patent, trademark or copyright under any country s laws or the misappropriation of any trade secret arising from the customers  legal use of the Company s solutions. The exposure to the Company under these indemnification provisions is generally limited to the total amount paid by the customers under the applicable customer agreement. However, certain indemnification provisions potentially expose the Company to losses in excess of the aggregate amount paid to the Company by the customer under the applicable customer agreement. To dat