9 . Commitments and Contingencies Lease Agreements The Company has various lease arrangements for office and laboratory space located in California, Oregon, Missouri and Switzerland with contractual lease periods expiring between 2021 and 2028. These leases require monthly lease payments that may be subject to annual increases throughout the lease term. Certain lease agreements also provide the Company with the option to renew for additional periods ranging from one to five years. These renewal options are not considered in the remaining lease term unless it is reasonably certain that the Company will exercise such options. In addition, the Company entered into a sale-leaseback transaction in August 2019. See further discussion in Note 8Balance Sheet Components. Throughout the term of the lease agreements, the Company is responsible for paying certain operating costs, in addition to rent, such as common area maintenance, taxes, utilities and insurance. These additional charges are considered variable lease costs and are recognized in the period in which the costs are incurred. The following table contains a summary of the lease costs recognized under ASC 842 and additional information related to operating leases for the three and nine months ended September 30, 2020: Three Months Ended Nine Months Ended (in thousands) September 30, 2020 September 30, 2020 Operating lease cost $ 1,151 $ 3,432 Short-term lease cost 118 435 Variable lease cost 460 1,700 Total least cost $ 1,729 $ 5,567 Other Information Weighted average remaining lease term (in years) 4.3 years Weighted average incremental borrowing rate 7.7 % Cash paid for amounts included in the measurement of operating lease liabilities for the nine months ended September 30, 2020 was $3.4 million and was included in net cash used in operating activities in the Company's condensed consolidated statement of cash flows. The maturity of the Companys operating lease liabilities as of September 30, 2020 was as follows (in thousands): Amounts 2020 (excluding the nine months ended September 30, 2020) $ 1,155 2021 4,472 2022 4,219 2023 4,271 2024 3,007 Thereafter 1,095 Total lease payments 18,219 Less: imputed interest (2,668 ) Present value of operating lease liabilities $ 15,551 The following amounts were recorded in the condensed consolidated balance sheet as of September 30, 2020 (in thousands): Operating Leases Operating right-of-use assets $ 14,762 Accrued and other liabilities $ 3,459 Operating lease liabilities, noncurrent 12,092 Total operating lease liabilities $ 15,551 Rent expense under ASC 840 was $1.2 million and $3.2 million for the three and nine months ended September 30, 2019, respectively. Manufacturing and Supply Letter Agreements Letter Agreement, Assignment and Master Services Agreement with Samsung On April 9, 2020, the Company and Samsung Biologics Co., Ltd. (Samsung) entered into a binding letter agreement (the Samsung Letter Agreement), pursuant to which Samsung will perform development and manufacturing services for the Companys SARS-CoV-2 antibody program. Under the terms of the Samsung Letter Agreement, the Company had committed to purchase a firm and binding capacity reservation for a specified number of manufacturing slots in 2021 and 2022. The Company was obligated to pay a total of approximately $362 million for such capacity reservation on a take-or-pay basis regardless of whether such manufacturing slots are utilized by the Company, subject to annual adjustment based on the Korean Consumer Price Index, which also includes certain fees relating to project management and technology transfer. The amounts will be payable during 2021 and 2022 and invoiced on a per-batch basis, with shortfalls invoiced at the end of the year in which such shortfall occurs. On August 4, 2020, the Company, GlaxoSmithKline Trading Services Limited (GSKTSL) and Samsung entered into an Assignment and Novation Agreement effective as of July 31, 2020 pursuant to which the Company assigned and transferred to GSKTSL all of the Companys right, title, and interest in, to and under the Samsung Letter Agreement, and GSKTSL became the Companys successor in interest in and to all of the Companys rights, duties, and obligations in, to and under the Samsung Letter Agreement. On August 4, 2020, GSKTSL entered into a Master Services Agreement with Samsung effective as of July 31, 2020 (the Samsung MSA), thereby superseding the Samsung Letter Agreement, and pursuant to which, among other things, Samsung will perform development and manufacturing services for clinical and commercial supply of antibody products under the Companys SARS-CoV-2 antibody program. Letter Agreement, Assignment and Master Services Agreement with WuXi Biologics On June 15, 2020, the Company and WuXi Biologics entered into a binding letter of intent (the WuXi Biologics Letter Agreement), pursuant to which WuXi Biologics will perform certain development and manufacturing services for the Companys SARS-CoV-2 antibody program. Under the terms of the WuXi Biologics Letter Agreement, the Company had committed to purchase a firm and binding capacity reservation for the manufacture of a specified number of batches of drug substance of the Companys SARS-CoV-2 antibody in 2020 and 2021. In addition, the Company had the right to order an additional specified number of batches of drug substance, provided it makes such election by a specified date in the fourth calendar quarter in 2020. WuXi Biologics is obligated to reserve such manufacturing slots on a non-cancellable basis, and will manufacture the agreed number of batches of drug substance in accordance with an agreed manufacturing schedule. The Company was obligated to pay a total of approximately $130.0 million for such capacity reservation, if all batches are manufactured, inclusive of estimated raw material costs, with between 70% and 80% of the batch production fees owed to WuXi Biologics on a take-or-pay basis regardless of whether such manufacturing slots are utilized by the Company. The amounts will be payable during 2020 and 2021 and invoiced on a per-batch basis. The SARS-CoV-2 antibody drug substance contemplated to be manufactured in accordance with the terms of the WuXi Biologics Letter Agreement will be utilized in connection with progressing the development and commercialization of the SARS-CoV-2 antibody product under the Companys collaboration with GSK. On August 4, 2020, the Company, GSKTSL and WuXi Biologics entered into an Assignment and Novation Agreement effective as of July 29, 2020 pursuant to which the Company assigned and transferred to GSKTSL all of the Companys right, title, and interest in, to and under the WuXi Biologics Letter Agreement, and GSKTSL became the Companys successor in interest in and to all of the Companys rights, duties, and obligations in, to and under the WuXi Biologics Letter Agreement. On August 4, 2020, GSKTSL entered into a non-exclusive Master Services Agreement for Commercial Manufacture of Drug Substance with WuXi Biologics effective as of July 29, 2020 (the WuXi Biologics MSA), thereby superseding the WuXi Biologics Letter Agreement, and pursuant to which, among other things, WuXi Biologics will perform development and manufacturing services for clinical and commercial supply of antibody products under the Companys SARS-CoV-2 antibody program. GSKTSL entered into the WuXi Biologics MSA and Samsung MSA in connection with the performance of the obligations of the Company and GSK, pursuant to the GSK Agreement. In accordance with the terms of the GSK Agreement, the Company will continue to be responsible for 72.5% of the costs under each of the WuXi Biologics MSA and Samsung MSA, and GSK will bear 27.5% of such costs under each of the Samsung MSA and the WuXi Biologics MSA, subject to certain conditions and exceptions. Indemnification In the ordinary course of business, the Company enters into agreements that may include indemnification provisions. Pursuant to such agreements, the Company may indemnify, hold harmless and defend an indemnified party for losses suffered or incurred by the indemnified party. In some cases, the indemnification obligation will continue after the termination of the agreement. The maximum potential amount of future payments the Company could be required to make under these provisions is not determinable. In addition, the Company has entered into indemnification agreements with its directors and certain officers that may require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. To date, no demands have been made upon the Company to provide indemnification under these agreements, and thus, there are no indemnification claims that the Company is aware of that could have a material effect on the Companys condensed consolidated balance sheets, condensed consolidated statements of operations, or condensed consolidated statements of cash flows.