Note 13 – Commitments

Future payments due under contractual obligations at December 31, 2012 are as follows:

(in thousands)	2013		2014		2015		2016		2017		There-after		Total
Operating lease obligations	$	1,074	$	1,087	$	949	$	934	$	935	$	158	$	5,137
Equipment loan obligations (1)		69		79		69		–		–		–		217
Total	$	1,143	$	1,166	$	1,018	$	934	$	935	$	158	$	5,354

(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 January 2013, the lease was extended an additional five years through February 2018. See, Note 17 – Subsequent Events. The total aggregate base rental payments under the Lease prior to the extension were approximately $7.2 million and the total aggregate base rental payments under the extended portion of the Lease are approximately $4.9 million.

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. 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, 2013. 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 was $1.0 million for each the years ended December 31, 2012, 2011 and 2010, respectively.

Severance Arrangements

On December 31, 2012, we entered into a Separation of Employment Agreement and Plenary Release Agreement (CEO Separation Agreement) with Mr. W. Thomas Amick, our former Chief Executive Officer and Chairman of the Board of Directors. Pursuant to the CEO Agreement, Mr. Amick resigned his positions with us effective December 31, 2012, and was entitled to (i) on December 31, 2012, a cash payment equal to the sum of (a) all unpaid compensation accrued through December 31, 2012, less any applicable withholding any unreimbursed employee business expenses (subject to submission of appropriate documentation), and a severance payment in the amount of $1,250,000, less any applicable withholding; (ii) the accelerated vesting of all outstanding stock options which shall remain exercisable to the end of their respective stated terms; and (iii) through July 31, 2013, reimbursement of $2,000 per month, plus a tax-gross up adjustment, for temporary living expenses related to an apartment leased by Mr. Amick. We also agreed to pay Mr. Amick's attorneys' fees incurred in connection with negotiating the CEO Agreement.

On July 12, 2011, we entered into a Separation of Employment Agreement and General Release Agreement (EVP Separation Agreement) with a former executive who served as Executive Vice President, General Counsel and Corporate Secretary. Pursuant to the EVP 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, in 2012, severance in the amount of $400,000, which amount was reduced by any outstanding amount due under a promissory note that the former execute had issued to us in 2001. The EVP Separation Agreement also contains a general release of claims by the parties and a 12-month non-competition covenant by the former executive.