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   &lt;div align="left" style="font-size: 10pt; margin-top: 12pt"&gt;&lt;b&gt;15. Contingencies&lt;/b&gt;
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   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;The Company may be, from time to time, a party to various disputes and claims arising from
   normal business activities. The Company accrues for loss contingencies when information available
   indicates that it is probable that a liability has been incurred and the amount of such loss can be
   reasonably estimated. The Company believes that the ultimate resolution of these matters will not
   have a material adverse effect on the Company&amp;#8217;s financial condition or liquidity. However,
   adjustments, if any, to the Company&amp;#8217;s estimates could be material to operating results for the
   periods in which adjustments to the liability are recorded.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;The U.S. Patent and Trademark Office (PTO)&amp;#160;rejected the Company&amp;#8217;s application under the
   Hatch-Waxman Act for an extension of the term of U.S. Patent
   No.&amp;#160;5,196,404 (&amp;#8216;404 patent), the principal U.S.
   patent that covers Angiomax (the patent term extension application filing), because in the PTO&amp;#8217;s
   view the application was not timely filed. The Company filed suit against the PTO, the FDA and U.S.
   Department of Health and Human Services (HHS) seeking to set aside the denial of the patent term
   extension application filing. On August&amp;#160;3, 2010, the court granted the Company&amp;#8217;s motion for summary
   judgment and ordered the PTO to consider the patent term extension application timely filed. On
   August&amp;#160;5, 2010, the PTO granted an interim extension of the term
   of the &amp;#8216;404 patent until August&amp;#160;13, 2011. The period for the government to appeal the court&amp;#8217;s August&amp;#160;3,
   2010 decision expired on October&amp;#160;5, 2010 without government appeal. The PTO has sent the patent
   term extension application to the FDA for a determination on  the length of the
   extension of the &amp;#8216;404 patent.
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   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;On August&amp;#160;19, 2010, APP Pharmaceuticals, LLC (APP)&amp;#160;filed a motion to intervene for the purpose
   of appeal in the Company&amp;#8217;s case against the PTO, the FDA and HHS. On September&amp;#160;13, 2010, the court
   issued an order denying APP&amp;#8217;s motion to intervene. On September&amp;#160;1, 2010, as amended on September
   17, 2010, APP filed a notice of appeal to the United States Court of Appeals for the Federal
   Circuit of the district court&amp;#8217;s August 3&lt;sup style="font-size: 85%; vertical-align: text-top"&gt;, &lt;/sup&gt;2010 and September&amp;#160;13, 2010 orders (and all
   related and underlying orders). On October&amp;#160;5, 2010, the Company filed a motion to dismiss APP&amp;#8217;s
   appeal and the Company is awaiting a decision by the court.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;The
   Company has entered into agreements with the law firms involved in
   the patent term extension application
   filing that suspend the statute of limitations on any claims against them for failing to make a
   timely filing. The Company has entered into a similar agreement with Biogen Idec, one of its
   licensors for Angiomax, relating to any claims, including claims for damages and/or license
   termination, that Biogen Idec may bring relating to the patent term
   extension application filing. Such claims by
   Biogen Idec could have a material adverse effect on the Company&amp;#8217;s financial condition, results of
   operations, liquidity or business. The Company is currently in discussions with the law firms
   involved in the patent term extension application filing and with Biogen Idec and Health Research Inc. with respect
   to the possible resolution of potential claims among the parties.
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