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Commitments and Contingencies
12 Months Ended
Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
Commitments and Contingencies

Lease agreements

We lease office space and fleet vehicles under non-cancelable terms. In addition to rent, the leases may require us to pay additional amounts for taxes, insurance, maintenance and other operating expenses.

Synergy's fleet vehicles are leased through December 2020. The total lease cost is approximately $65,000 per month.

Synergy's corporate offices in New York are leased through March 2022. The total monthly rent on this space is approximately $80,000 on straight line basis, prospectively.

In addition, we lease office space for commercial and technical operations in Chesterbrook, Pennsylvania under a lease through December 31, 2022, at a monthly rate of approximately $31,000.

Rent expense was $1,637,000, $1,365,000 and $909,000 for the years ended December 31, 2017, 2016, and 2015, respectively.

Change in Control and Severance Agreements

The Company has agreements with employees which provide for payouts in the event that the Company consummates a change in control. At December 31, 2017, the amount of compensation for which the Company would be liable as a result of this event is approximately $10,300,000, as set forth in the agreements. These employees are also entitled to full vesting of their outstanding equity awards. As of December 31, 2017 and 2016, no amounts have been accrued.

Purchase obligations

Synergy had non-cancelable purchase obligations at December 31, 2017 of approximately $21,300,000, primarily for inventory purchases and the remaining term of the contract sales force.

In the normal course of business, we issue purchase orders to vendors for services and/or inventory. The purchase orders require performance by the vendors, including the delivery of the services and/or goods prior to a specified cancellation date and compliance with product specifications, quality standards and other requirements. In the event of the supplier’s failure to meet the agreed upon terms and conditions, we may cancel the order.

Litigation

On November 20, 2017, Cantor Fitzgerald & Co. filed a Complaint against Synergy in the Supreme Court of the State of New York, County of New York for, among other claims, breach of contract for failing to pay Cantor financial advisory and investment banking fees in the amount of $5.25 million it alleges were owed upon the closing of our debt financing in September 2017.  On January 5, 2018, Synergy filed an answer to the Complaint denying all the allegations against us, including the allegations that we entered into any agreement with Cantor Fitzgerald & Co.  The parties are beginning the discovery process. 
 
On February 8, 2018, a federal securities action, captioned David Lee v. Synergy Pharmaceuticals Inc. et al., was filed in the U.S. District Court for the Eastern District of New York.  The complaint names Synergy and certain of its current or former officers and seeks to recover on behalf of a putative class of purchasers of Synergy’s common stock between September 5, 2017 and November 14, 2017.  On February 14, 2018, another substantially identical lawsuit-captioned Eileen Countryman v. Synergy Pharmaceuticals Inc. et al.-was filed in the same court against the same defendants on behalf of an identical putative class.  Both complaints allege that the defendants made false and misleading statements, including in connection with our senior secured loan from CRG Servicing, LLC.  Both assert claims under the federal securities laws and seek to recover unspecified damages, as well as interest, costs, and expenses.

In the Company’s opinion, a loss in connection with the matters described above is neither probable nor estimable.