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&lt;p style="TEXT-INDENT: -22.5pt; MARGIN: 0in 0in 0pt 22.5pt;"&gt;&lt;b&gt;&lt;font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold;" size="2"&gt;8.&lt;/font&gt;&lt;/b&gt;&lt;b&gt;&lt;font style="FONT-SIZE: 3pt; FONT-WEIGHT: bold;" size="1"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&lt;/font&gt;&lt;/b&gt; &lt;b&gt;&lt;font style="FONT-SIZE: 10pt; FONT-WEIGHT: bold;" size="2"&gt;TERM LOAN&lt;/font&gt;&lt;/b&gt;&lt;/p&gt;
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&lt;p style="TEXT-INDENT: 24pt; MARGIN: 0in 0in 0pt;"&gt;&lt;font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt;" size="2"&gt;In order to partially fund a portion of the costs and related expenses of the acquisition of Actient described in Note (2), the Company entered into a Term Loan agreement with a syndicate of banks to borrow $225,000 in principal value. The original issue discount together with issuance costs of the Term Loan, amounting to $10,965, is being accreted to Interest expense over the stated term of the loan agreement and the unamortized balance has been deducted from the Term Loan balance shown in the Balance Sheet.&lt;/font&gt;&lt;/p&gt;
&lt;p style="MARGIN: 0in 0in 0pt;"&gt;&amp;#160;&lt;/p&gt;
&lt;p style="TEXT-INDENT: 24pt; MARGIN: 0in 0in 0pt;"&gt;&lt;font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt;" size="2"&gt;The Term Loan&amp;#160; is collateralized by a first priority security interest on certain real and all personal property of the Company and certain of its subsidiaries including (i)&amp;#160;a pledge of all of the equity interests held by the Company and such subsidiaries and (ii)&amp;#160;a lien encumbering all intellectual property owned by the Company and such subsidiaries.&amp;#160; The obligations of the Company and such subsidiaries under the Credit Agreement are unconditionally cross guaranteed by the Company and such subsidiaries.&lt;/font&gt;&lt;/p&gt;
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&lt;p style="TEXT-INDENT: 24pt; MARGIN: 0in 0in 0pt;"&gt;&lt;font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt;" size="2"&gt;The&lt;/font&gt; &lt;font style="FONT-SIZE: 10pt;" size="2"&gt;Term Loan principal must be repaid in equal quarterly installments of 1.25% per quarter commencing on June&amp;#160;30, 2013, with the remainder of the borrowings to be paid on the maturity date, unless otherwise prepaid prior to such date in accordance with the terms of the Term Loan.&lt;/font&gt; &lt;font style="FONT-SIZE: 10pt;" size="2"&gt;The principal amount outstanding is subject to mandatory prepayment from excess positive cash flow and upon the happening of certain events including: (i)&amp;#160;receipt of net cash proceeds from dispositions; (ii)&amp;#160;receipt of net cash proceeds from the sale or issuance of debt or equity; and (iii)&amp;#160;receipt of proceeds from casualty and condemnation events, in each case subject to certain limitations and conditions set forth in the Term Loan. The Company can elect loans to bear interest at a rate equal to either Base Rate (as defined in the agreement) or LIBOR, plus a margin.&amp;#160; The Base Rate interest rate margin is 4.00% and the LIBOR interest rate margin is 5.00%. The agreement also establishes a floor rate for both the Base Rate and LIBOR options. As of the date hereof, the Company has&lt;/font&gt; &lt;font style="FONT-SIZE: 10pt;" size="2"&gt;elected to base the interest rate of the borrowings on LIBOR. As of June&amp;#160;30, 2013, the total interest rate on the Term Loan principal was 6.25%.&lt;/font&gt;&lt;/p&gt;
&lt;p style="MARGIN: 0in 0in 0pt;"&gt;&amp;#160;&lt;/p&gt;
&lt;p style="TEXT-INDENT: 24pt; MARGIN: 0in 0in 0pt;"&gt;&lt;font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt;" size="2"&gt;The Term Loan contains no financial covenants but contains usual and customary operating and restrictive covenants for a facility of this type. Events of default under the Term Loan are also usual and customary for transactions of this type. As of June&amp;#160;30, 2013, the Company was in compliance with Term Loan covenants.&lt;/font&gt;&lt;/p&gt;
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