NOTE 16 - COMMITMENTS AND CONTINGENCIES A. Commitments and Contingencies Relating to Fab 2 (1) Facility Agreement Liens For liens on Towers assets under the Facility Agreement which were fully released as of June 30, 2016, see Note 12B. For liens relating to Jazz Credit Line Agreement, see Note 12C. For liens under TPSCo 2015 Term Loan agreement see Note 12D. For liens relating to TJT term loan, see Note 12E. (2) Approved Enterprise Status For details regarding Approved Enterprise Status relating to Fab 2, see Note 20A and Note 8B. B. License Agreements The Company enters into intellectual property and licensing agreements with third parties from time to time. The effect of each of them on the Companys total assets and results of operations is immaterial. Certain of these agreements call for royalties to be paid by the Company to these third parties. C. Leases Towers administrative offices and corporate headquarters, Fab 1 and Fab 2 manufacturing operations are located in a building complex situated in an industrial park in Migdal Haemek, in the northern part of Israel. The premises where the administrative offices and Fab 1 are located are under a long-term lease from the ILA, which expires in 2032. Tower has no obligation for lease payments related to this lease through the year 2032. Tower entered into a long-term lease agreement with the ILA relating to Fab 2 for a period ending in 2049. The lease payments through 2049 relating to this lease have been paid in advance and are expensed through the operational lease period. Tower occupies certain other premises under various operating leases. The obligations under such leases were not material as of December 31, 2016. Jazz leases its fabrication facilities under lease contracts that may be extended until 2027, through the exercise of an option at Jazzs sole discretion to extend the lease period through 2027. In 2015, Jazz exercised its first option to extend the lease term from 2017 to 2022, while maintaining the option to extend the lease term at its sole