Note 13 – Commitments

Future payments due under contractual obligations at December 31, 2011 are as follows:

(in thousands)	2012		2013		2014		2015		2016		There- after		Total
Equipment loan obligations (1)	$	80	$	85	$	85	$	71	$	–		–	$	321
Operating lease obligations		1,166		320		150		–		–		–		1,636
Former Exec. VP Severance Commitment		435		–		–		–		–		–		435
Total	$	1,681	$	405	$	235	$	71	$	–	$	–	$	2,392

(1) See, Note 9 – Debt.

Operating Leases

Our operating leases consist primarily of facility leases for our operations in Pennsylvania and New Jersey.

We maintain our headquarters in Warrington, Pennsylvania. The facility is 39,594 square feet and serves as the main operating facility for clinical development, regulatory, analytical technical services, research and development, and administration. In April 2007, the lease, which originally expired in February 2010 with total aggregate payments of $4.6 million, was extended an additional three years through February 2013 with additional payments of $3.0 million over the extension period.

We lease approximately 21,000 square feet of space for our manufacturing operations in Totowa, New Jersey, at an annual rent of $150,000. This space is specifically designed for the manufacture and filling of sterile pharmaceuticals in compliance with cGMP and is our only manufacturing facility. This lease expires in December 2014, subject to the landlord's right, in certain circumstances and upon two years' prior notice, to terminate the lease early. In addition, depending upon the timing of the notice, if we satisfy certain financial conditions at the time, the landlord would be obligated to make early termination payments to us. The total aggregate payments over the term of the lease are $1.4 million. In connection with our manufacturing operations in Totowa, New Jersey, we have 14 employees subject to a collective bargaining arrangement that expires on December 3, 2012. For a discussion of our manufacturing strategy, see, “Item 1 – Business – Business Operations – Manufacturing and Distribution,” in our Annual Report on Form 10-K.

Rent expense under all of these leases for the years ended December 31, 2011 and 2010 was $1.0 million and $1.0 million, respectively.

Severance Arrangement

On July 12, 2011, we entered into a Separation of Employment Agreement and General Release Agreement (“Separation Agreement”) with our former, Executive Vice President, General Counsel and Corporate Secretary (Former Executive). Pursuant to the Separation Agreement, the Former Executive resigned his positions with us effective July 31, 2011, and was entitled to (i) payment of accrued vacation pay, (ii) the right to continue to hold a restricted stock award for 15,000 shares (RSA) without any continuing Service (as defined in the RSA) requirement, (iii) extended health benefits for up to 18 months, and, (iv) depending on the circumstances, certain outplacement services. In addition, we agreed to pay the Former Executive on February 1, 2012 severance in the amount of $400,000, which amount was reduced by any outstanding amount due under a promissory note that the Former Executive had issued to us in 2001. As of December 31, 2011, the outstanding aggregate principal amount of the Note was $169,958. The Separation Agreement also contains a general release of claims by the parties and a 12-month non-competition covenant by the Former Executive.