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</LabelSeparator><Level>2</Level><ElementName>us-gaap_CommitmentsAndContingenciesDisclosureTextBlock</ElementName><ElementPrefix>us-gaap_</ElementPrefix><IsBaseElement>true</IsBaseElement><BalanceType>na</BalanceType><PeriodType>duration</PeriodType><IsReportTitle>false</IsReportTitle><IsSegmentTitle>false</IsSegmentTitle><IsCalendarTitle>false</IsCalendarTitle><IsEquityPrevioslyReportedAsRow>false</IsEquityPrevioslyReportedAsRow><IsEquityAdjustmentRow>false</IsEquityAdjustmentRow><IsBeginningBalance>false</IsBeginningBalance><IsEndingBalance>false</IsEndingBalance><IsReverseSign>false</IsReverseSign><PreferredLabelRole>verboseLabel</PreferredLabelRole><FootnoteIndexer /><Cells><Cell FlagID="0" ContextID="P01_01_2013To06_30_2013" UnitID=""><Id>1</Id><IsNumeric>false</IsNumeric><IsRatio>false</IsRatio><DisplayZeroAsNone>false</DisplayZeroAsNone><NumericAmount>0</NumericAmount><RoundedNumericAmount>0</RoundedNumericAmount><NonNumbericText>              &lt;table border="0" style="clear:both;width:100%; table-layout:fixed;"&gt;  &lt;tr&gt;  &lt;td&gt;&lt;/td&gt;  &lt;/tr&gt;  &lt;/table&gt;    &lt;div style="clear:both;FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "&gt;  &lt;div style="clear:both;FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"&gt;  &lt;table style="clear:both;MARGIN-TOP: 0px; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0px"   cellspacing="0" cellpadding="0"&gt;  &lt;tr style="TEXT-ALIGN: justify; VERTICAL-ALIGN: top"&gt;  &lt;td style="TEXT-ALIGN: left; WIDTH: 0.75in"&gt;  &lt;div&gt;&lt;font style="TEXT-TRANSFORM: uppercase"&gt;&lt;strong&gt;Note  7&lt;/strong&gt;&lt;/font&gt;&lt;/div&gt;  &lt;/td&gt;  &lt;td style="TEXT-ALIGN: justify"&gt;  &lt;div&gt;&lt;font style="TEXT-TRANSFORM: uppercase"&gt;&lt;strong&gt;commitments  and contingencies&lt;/strong&gt;&lt;/font&gt;&lt;/div&gt;  &lt;/td&gt;  &lt;/tr&gt;  &lt;/table&gt;    &lt;font style="TEXT-TRANSFORM: uppercase"&gt;&lt;/font&gt;&lt;/div&gt;    &lt;div style="clear:both;FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"&gt;  &amp;#160;&lt;/div&gt;    &lt;div style="clear:both;FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"&gt;  &lt;strong&gt;&lt;em&gt;License Agreements&lt;/em&gt;&lt;/strong&gt;&lt;/div&gt;    &lt;div style="clear:both;FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt;TEXT-INDENT: 22.3pt; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"&gt;  &amp;#160;&lt;/div&gt;    &lt;div style="clear:both;FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt;TEXT-INDENT: 22.5pt; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"&gt;  In March 2004, the Company entered into a license agreement with  Dr. M. Gopal Nair, Ph.D., of the University of South Alabama  College of Medicine, for the rights to use, produce, distribute and  market products derived from an invention by Dr. Nair, claimed in  US Patent # 5,912,251, entitled &amp;#8220;metabolically inert  anti-inflammatory and antitumor antifolates&amp;#8221;, designated by  the Company as CH-1504 and related compounds. The license provides  the Company exclusive rights,&amp;#160;excluding India, for CH-1504 and  related compounds. The Company made an upfront payment in May 2004  of $&lt;font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"&gt;150,000&lt;/font&gt;  and milestone payments as required by the agreement of $&lt;font  style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"&gt;100,000&lt;/font&gt;  each in March 2006 and 2005. In April 2007, the Company issued  &lt;font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"&gt;  26,643&lt;/font&gt; shares of its common stock, subject to trading  restrictions, at a value of approximately $&lt;font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"&gt;5.63&lt;/font&gt;  per share, in settlement of the $&lt;font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"&gt;150,000&lt;/font&gt;  annual milestone payment liability. In March 2008, the Company made  a milestone payment of $&lt;font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"&gt;100,000&lt;/font&gt;  related to patient dosing in a Phase II study as required by the  agreement. In April 2008, the Company issued &lt;font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"&gt;  30,612&lt;/font&gt; shares of its common stock, subject to trading  restrictions, at a value of approximately $&lt;font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"&gt;4.90&lt;/font&gt;  per share, in settlement of the 2008 anniversary milestone payment.  In April 2009, the Company made the 2009 anniversary milestone  payment of $&lt;font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"&gt;150,000&lt;/font&gt;.  In September 2010, the Company made a milestone payment of $&lt;font  style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"&gt;100,000&lt;/font&gt;  related to patient dosing in a Phase II study as required by the  agreement. The Company is obligated to pay royalties under the  agreement until the later of the expiration of the applicable  patent or the applicable last date of market exclusivity after the  first commercial sale, on a country-by-country basis. The potential  royalty payment under the license agreement is a mid-single-digit  percentage of net sales of the commercialized products licensed  under the agreement and there&amp;#160;are no minimum royalties  required under the agreement. The Company is also obligated to make  future potential milestone payments based on the achievement of  specific development and regulatory approval milestones. Although  the Company has no current development activity ongoing for this  portfolio of compounds, approximately $&lt;font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"&gt;1.5&lt;/font&gt;  million of payments might become due if specific clinical or  regulatory milestones are achieved at a future date, subject to the  Company&amp;#8217;s right to terminate the license agreement. In  addition, should the Company enter into an out-licensing agreement,  such payments could be offset by revenue received from the  sub-licensee.&amp;#160; The agreement remains in effect until the date  of the last to expire claim in the patent rights, if not terminated  earlier. Currently, the date of the last to expire claim in the  patent rights under this agreement is January 17, 2018, without  consideration of the potential for patent term extension or the  granting of additional patents. The agreement also provides for  termination (i) upon material breach, including nonpayment by the  Company of any monies due, if such breach remains uncured for a  period of sixty days, (ii) for bankruptcy of the Company and (iii)  for convenience by the Company upon thirty days&amp;#8217; written  notice.&lt;/div&gt;    &lt;div style="clear:both;FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt;TEXT-INDENT: 22.3pt; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"&gt;  &amp;#160;&lt;/div&gt;    &lt;div style="clear:both;FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt;TEXT-INDENT: 22.5pt; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"&gt;  In May 2006, the Company entered into an agreement with Dainippon  Sumitomo Pharma Co., Ltd. (&amp;#8220;DSP&amp;#8221;) for an exclusive,  sub-licensable license and rights to certain intellectual property  and proprietary information (the &amp;#8220;DSP Agreement&amp;#8221;)  relating to L-threo-3,4-dihydroxyphenylserine (&amp;#8220;L-DOPS&amp;#8221;  or &amp;#8220;droxidopa&amp;#8221;) including, but not limited to all  information, formulations, materials, data, drawings, sketches,  designs, testing and test results, records and regulatory  documentation. Pursuant to the DSP Agreement, DSP reserved rights  to market droxidopa in Japan, Korea, China and Taiwan that  precludes the Company&amp;#8217;s commercialization of droxidopa in  those markets.&amp;#160; As consideration for these rights, the Company  paid DSP $&lt;font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"&gt;100,000&lt;/font&gt;  and issued &lt;font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"&gt;  63,131&lt;/font&gt; shares of its common stock, with a value of  approximately $&lt;font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"&gt;4.35&lt;/font&gt;  per share, or $&lt;font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"&gt;274,621&lt;/font&gt;.  As additional consideration, the Company agreed to pay DSP and/or  its designees (1) royalties on the sales should any compound be  approved for commercial sale, and (2) milestone payments, payable  upon achievement of milestones as defined in the DSP Agreement. The  potential royalty payment under the license agreement is a  mid-single-digit percentage of net sales of the commercialized  products licensed under the DSP Agreement.&amp;#160;All obligations of  the Company to pay royalties under the DSP Agreement expire (i)  with respect to North America, which is defined to include the  United States, Canada and Mexico, eight years after the First  Commercial Sale, as defined in the DSP Agreement, in  the&amp;#160;United States, and (ii) with respect to the remainder of  the territory, eleven years after the First Commercial Sale in  either the United Kingdom, France, Italy, Germany or Spain. In  February 2008, the Company made a milestone payment under the DSP  Agreement of $&lt;font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"&gt;500,000&lt;/font&gt;  related to patient dosing in a Phase III study. In December 2011,  the Company made a milestone payment under the DSP Agreement of  $&lt;font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"&gt;750,000&lt;/font&gt;  related to submission of an NDA to the FDA and has remaining  potential future milestone payments as of June 30, 2013, subject to  the Company&amp;#8217;s right to terminate the DSP Agreement, totaling  $&lt;font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"&gt;2.5&lt;/font&gt;  million, including a potential milestone payment of $&lt;font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"&gt;1.5&lt;/font&gt;  million payable upon approval of an NDA.&amp;#160;The DSP Agreement has  no fixed term and upon expiration of the relevant royalty term, all  of the licenses and rights granted to the Company in the applicable  territory under the DSP Agreement shall become irrevocable,  perpetual, fully-paid, and royalty-free. Prior to that, the DSP  Agreement&amp;#160;provides for termination (i) upon material breach by  either party if such breach remains uncured for a period of sixty  days from the date the breaching party was notified of such breach,  (ii) for bankruptcy by either party upon thirty days written notice  and (iii) for convenience by the Company upon sixty days written  notice.&amp;#160; The Company and DSP also initiated, and the Company  agreed to fund, activities focused on modifying the manufacturing  capabilities of DSP in order to expand capacity and comply with  regulations and requirements of the FDA. Final expenses for this  work were recognized in the second quarter of 2012 resulting in the  Company recording cumulative expense of approximately $&lt;font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"&gt;3.1&lt;/font&gt;  million.&lt;/div&gt;    &lt;div style="clear:both;FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt;TEXT-INDENT: 22.3pt; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"&gt;  &amp;#160;&lt;/div&gt;    &lt;div style="clear:both;FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt;TEXT-INDENT: 22.5pt; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"&gt;  In conjunction with and as consideration for activities related to  the execution of the DSP Agreement, the Company entered into a  Finder&amp;#8217;s Agreement with Paramount BioCapital, Inc.  (&amp;#8220;Paramount&amp;#8221;). In May 2006, pursuant to the  Finder&amp;#8217;s Agreement, the Company issued warrants for the  purchase of &lt;font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"&gt;  250,000&lt;/font&gt; shares of its common stock at an exercise price of  $&lt;font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"&gt;4.31&lt;/font&gt;  per share. The exercise of these warrants was conditioned on an  event that occurred in January 2007 and, accordingly, the Company  recorded a charge for the fair value of the warrants at January  2007 of $&lt;font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"&gt;433,750&lt;/font&gt;.  The Company utilized the Black-Scholes-Merton valuation model for  estimating the fair value of the warrants as of the date the  condition for exercise occurred, based on a risk-free interest rate  of &lt;font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"&gt;  4.79&lt;/font&gt;%, an expected life of &lt;font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"&gt;  three&lt;/font&gt; years, an expected dividend yield of &lt;font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"&gt;  0&lt;/font&gt;%, an expected volatility of 66.01% and no estimated  forfeitures.&amp;#160; Such warrants remained unexercised and expired  in May 2013. As additional consideration, the Company agreed to (1)  make future milestone payments to Paramount, upon achievement of  milestones as defined in the Finder&amp;#8217;s Agreement, (2) pay  royalties on sales should any licensed compound become available  for commercial sale, and (3) compensate a stated third-party  consultant for services rendered in the evaluation of the  transaction with DSP. The Company has remaining potential future  milestone payments under the Finder&amp;#8217;s Agreement of $&lt;font  style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"&gt;150,000&lt;/font&gt;.&lt;/div&gt;    &lt;div style="clear:both;FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt;TEXT-INDENT: 22.5pt; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"&gt;  &amp;#160;&lt;/div&gt;    &lt;div style="clear:both;FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"&gt;  &lt;strong&gt;&lt;em&gt;Contract Research and Manufacturing Purchase  Obligations&lt;/em&gt;&lt;/strong&gt;&lt;/div&gt;    &lt;div style="clear:both;FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"&gt;  &amp;#160;&lt;/div&gt;    &lt;div style="clear:both;FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt; TEXT-INDENT: 22.3pt; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"&gt;  The Company often contracts with third parties to facilitate,  coordinate and perform agreed upon research and development and  manufacturing activities. These contracts typically call for the  payment of fees for services at the initiation of the contract  and/or upon the achievement of certain milestones. The Company  currently intends to continue its research and manufacturing  activities for contracts existing as of June 30, 2013. However,  should a need arise to cancel activities under these contracts,  there might be cancellation fees that could be substantial.&lt;/div&gt;    &lt;div style="clear:both;FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt; TEXT-INDENT: 22.3pt; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"&gt;  &amp;#160;&lt;/div&gt;    &lt;div style="clear:both;FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt;TEXT-INDENT: 22.3pt; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"&gt;  In addition, the Company has contracted with a third party for the  manufacture of commercial quantities of Northera prior to the date  of final marketing approval and might perform similar activities  for other of its product candidates in the future. The scale-up and  commercial production of pre-launch inventories involves the risk  that such products may not be approved for marketing by the  appropriate regulatory agencies on a timely basis, or ever. This  risk notwithstanding, the Company initiated such activities with  its primary supplier of active pharmaceutical ingredient of  Northera in December 2010 and had incurred expenses of  approximately $&lt;font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"&gt;1.2&lt;/font&gt;  million related to these activities during 2012. Until final  approval to market any of the Company&amp;#8217;s product candidates is  received from the appropriate regulatory agencies, such costs are  expensed to research and development. No such costs have been  incurred in 2013. &lt;font style="BACKGROUND-COLOR: transparent"&gt;In  addition, in October 2011, the Company committed to the purchase of  active pharmaceutical ingredient from the manufacturer to be used  in the production of commercial inventory in preparation for the  market launch of Northera in the United States with a value of  approximately $&lt;font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"&gt;7.2&lt;/font&gt;  million, given exchange rates at that time. A small initial  shipment of this material was delivered in the first quarter of  2012. In October 2012, the Company obtained a written waiver from  the third-party manufacturer wherein the Company was released from  its obligation to purchase the remaining material under this  agreement.&lt;/font&gt;&lt;/div&gt;    &lt;div style="clear:both;FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"&gt;  &lt;font style="BACKGROUND-COLOR: transparent"&gt;&amp;#160;&lt;/font&gt;&lt;/div&gt;    &lt;div style="clear:both;FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"&gt;  &lt;strong&gt;&lt;em&gt;Legal Proceedings&lt;/em&gt;&lt;/strong&gt;&lt;/div&gt;    &lt;div style="clear:both;FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt;TEXT-INDENT: 22.5pt; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"&gt;  &amp;#160;&lt;/div&gt;    &lt;div style="clear:both;FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt;TEXT-INDENT: 22.3pt; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"&gt;  Following the receipt of the CRL from the FDA regarding the NDA for  Northera&amp;#153; (droxidopa) in March 2012 and the subsequent decline  of the price of the Company&amp;#8217;s common stock, two purported  class action lawsuits were filed on April 4, 2012 and another  purported class action lawsuit was filed on May 1, 2012 in the U.S.  District Court for the Western District of North Carolina against  us and certain of our executive officers.&lt;/div&gt;    &lt;div style="clear:both;FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt;TEXT-INDENT: 22.3pt; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"&gt;  &amp;#160;&lt;/div&gt;    &lt;div style="clear:both;FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt;TEXT-INDENT: 22.5pt; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"&gt;  The complaints generally allege that, during differing class  periods, all of the defendants violated Sections 10(b) of the  Exchange Act and Rule 10b-5 and the individual defendants violated  Section&amp;#160;20(a) of the Exchange Act in making various statements  related to the Company&amp;#8217;s development of Northera for the  treatment of symptomatic neurogenic OH and the likelihood of FDA  approval. The complaints seek unspecified damages, interest,  attorneys&amp;#8217; fees, and other costs. Following consolidation of  the three lawsuits and the appointment of a lead plaintiff, a  consolidated complaint was filed on October 5, 2012, on behalf of  purchasers of the Company&amp;#8217;s common stock from November 3,  2008 through March 28, 2012.&amp;#160; On November 16, 2012, the  Company and the other defendants moved to dismiss the complaint. A  hearing on the motion to dismiss was heard on June 19, 2013 but a  decision has not yet been issued. The Company and its officers  intend to vigorously defend against this lawsuit but are unable to  predict the outcome or reasonably estimate a range of possible loss  at this time.&lt;/div&gt;    &lt;div style="clear:both;FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"&gt;  &amp;#160;&lt;/div&gt;    &lt;div style="clear:both;FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt;TEXT-INDENT: 22.5pt; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"&gt;  On May 2, 2012, a purported shareholder derivative lawsuit was  filed in the Delaware Court of Chancery against the members of the  Company&amp;#8217;s board of directors as of the date of the  lawsuit.&amp;#160; The complaint generally alleges that, from at least  June 2011 through February 2012, the defendants breached their  fiduciary duties and otherwise caused harm to the Company in  connection with various statements related to the development of  Northera for the treatment of Neurogenic OH and the likelihood of  FDA approval.&amp;#160; The complaint seeks unspecified damages,  attorneys&amp;#8217; fees and other costs.&amp;#160; On June 25, 2012, the  Court of Chancery entered an Order staying the action until the  U.S. District Court for the Western District of North Carolina has  ruled upon the motion to dismiss that the Company and its officers  have filed in November 2012 in response to the consolidated  complaint in the class action. The Company and its officers intend  to vigorously defend against this lawsuit but are unable to predict  the outcome or reasonably estimate a range of possible loss at this  time.&lt;/div&gt;    &lt;div style="clear:both;FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt;TEXT-INDENT: 22.5pt; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"&gt;  &amp;#160;&lt;/div&gt;    &lt;div style="clear:both;FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0in; FONT: 10pt Times New Roman, Times, Serif"&gt;  &lt;div style="clear:both;FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"&gt;  &lt;strong&gt;&lt;em&gt;Retention Bonus Plans&lt;/em&gt;&lt;/strong&gt;&lt;/div&gt;    &lt;div style="clear:both;FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"&gt;  &amp;#160;&lt;/div&gt;    &lt;div style="clear:both;FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt;TEXT-INDENT: 22.5pt; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"&gt;  In April 2013, at the direction of its Board of Directors, the  Company implemented an Executive Retention Bonus Plan and an  Employee Retention Bonus Plan. Under their respective plans,  executives and employees employed by the Company as of April 23,  2013, are eligible to receive a bonus payment should the Company  obtain approval from the FDA to market Northera in the U.S. In  addition, executives and employees are eligible to receive a bonus  payment should the Company enter into a transaction that results in  (i)&amp;#160;the sale, lease, exchange or other transfer of  substantially all of the assets of the Company;&amp;#160;(ii) any  person not a shareholder on the date of grant becom ing the  beneficial owner, directly or indirectly, of &lt;font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"&gt;  50&lt;/font&gt;% or more of the combined voting power of the  Company&amp;#8217;s outstanding securities other than through a  traditional financing transaction; or , (iii)&amp;#160;a merger or  consolidation to which the Company is a party occurring that  results in the shareholders of the Company having beneficial  ownership of less than 50% of the combined voting power of the  surviving company&amp;#8217;s outstanding securities immediately  following such a transaction. If such approval is obtained and/or  should such a transaction occur, the Company would be obligated to  make bonus payments&amp;#160;of approximately $&lt;font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"&gt;1.1&lt;/font&gt;  million&amp;#160;in the aggregate to qualifying executives and  employees for&amp;#160;each event, calculated based on headcount as of  June 30, 2013. As these bonus payments are conditioned on events  that have yet to occur, no expense will be recorded by the Company  unless and until the conditions for payment have been met.&lt;/div&gt;  &lt;/div&gt;    &lt;div style="clear:both;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"&gt;  &lt;strong&gt;&lt;em&gt;&amp;#160;&lt;/em&gt;&lt;/strong&gt;&lt;/div&gt;    &lt;div style="clear:both;FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"&gt;  &lt;strong&gt;&lt;em&gt;Other Contractual Obligations&lt;/em&gt;&lt;/strong&gt;&lt;/div&gt;    &lt;div style="clear:both;FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"&gt;  &amp;#160;&lt;/div&gt;    &lt;div style="clear:both;FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt;TEXT-INDENT: 24.5pt; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"&gt;  During 2011 and early 2012, the Company contracted with various  third parties to facilitate, coordinate and perform agreed upon  commercialization support activities in anticipation of approval to  launch of Northera in the United States in 2012. These contracts  typically called for the payment of fees for services at the  initiation of the contract and/or upon the achievement of certain  milestones. In the event that the Company prepaid fees for future  milestones, it would have recorded the prepayment as a prepaid  asset and amortized the asset into sales and marketing expense over  the period of time the contracted services were performed. Most  fees were incurred throughout the contract period and were expensed  based on the percentage of completion at a particular date. During  the second quarter of 2012, the Company successfully curtailed  these activities and cancelled the associated contracts given the  receipt of the CRL from the FDA on March 28, 2012. The Company did  incur a cancellation penalty on one of these contracts and, during  the second quarter of 2012, recorded $&lt;font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"&gt;100,000&lt;/font&gt;  of sales and marketing expense related to that penalty.&lt;/div&gt;    &lt;div style="clear:both;FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt;TEXT-INDENT: 24.5pt; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"&gt;  &amp;#160;&lt;/div&gt;    &lt;div style="clear:both;FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt;TEXT-INDENT: 22.5pt; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"&gt;  Business activities performed under these contracts included, but  were not limited to, market research, marketing and advertising  planning and development, contracted Medical Science Liaison  professionals, sales territory mapping, publication planning, sales  force recruiting, sales operations support and planning, messaging  and website development, public relations and information  technology support and planning.&lt;/div&gt;  &lt;/div&gt;        </NonNumbericText><FootnoteIndexer /><CurrencyCode /><CurrencySymbol /><IsIndependantCurrency>false</IsIndependantCurrency><ShowCurrencySymbol>false</ShowCurrencySymbol><DisplayDateInUSFormat>false</DisplayDateInUSFormat></Cell></Cells><ElementDataType>nonnum:textBlockItemType</ElementDataType><SimpleDataType>na</SimpleDataType><ElementDefenition>The entire disclosure for commitments and contingencies.</ElementDefenition><ElementReferences>Reference 1: http://www.xbrl.org/2003/role/presentationRef

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