Abraxis BioScience (ABII)

16. Employee Benefit Plan

Following the 2007 separation, we adopted and our employees became eligible to participate in a defined contribution plan intended to be tax-qualified. APP cooperated with us to transfer the account balances of our employees to the defined contribution plan adopted by us. We adopted the defined contribution plan in the first quarter of 2008. Prior to the 2007 separation, Old Abraxis sponsored a 401(k) defined-contribution plan, or 401(k) Plan, covering substantially all eligible employees. Employee contributions to the 401(k) Plan are voluntary. Participants’ contributions are limited to their annual tax deferred contribution limit as allowed by the Internal Revenue Service. Our total matching contributions to our 401(k) Plan in 2009 and 2008 and Old Abraxis’ 401(k) Plan in 2007 were $2.2 million, $1.8 million, and $1.4 million for the years ended December 31, 2009, 2008 and 2007, respectively.

9. Employee Benefit Plan

Following the 2007 separation, we adopted and our employees became eligible to participate in a defined contribution plan intended to be tax-qualified. APP cooperated with us to transfer the account balances of our employees to the defined contribution plan adopted by us. We adopted the defined contribution plan in the first quarter of 2008. Prior to the 2007 separation, Old Abraxis sponsored a 401(k) defined-contribution plan, or 401(k) Plan, covering substantially all eligible employees. Employee contributions to the 401(k) Plan are voluntary. Participants’ contributions are limited to their annual tax deferred contribution limit as allowed by the Internal Revenue Service. Our total matching contributions to our 401(k) Plan in 2008 and Old Abraxis’ 401(k) Plan in 2007 and 2006 were $1.8 million, $1.4 million and $0.9 million for the years ended December 31, 2008, 2007 and 2006, respectively.

8. Employee Benefit Plan

Following the separation, we adopted and our employees became eligible to participate in a defined contribution plan intended to be tax-qualified. New APP cooperated with us to transfer the account balances of our employees to the defined contribution plan adopted by us. We adopted the defined contribution plan in the first quarter of 2008. Prior to the separation, Old Abraxis sponsored a 401(k) defined-contribution plan, or 401(k)

82

Table of Contents

Plan, covering substantially all eligible employees. Employee contributions to the 401(k) Plan were voluntary. Under Old Abraxis’ 401(k) plan, Old Abraxis contributed a qualified non-elective contribution in an amount equal to 3% of all eligible employee’s compensation, regardless of participation in the plan with such employer contributions vesting immediately. Participants’ contributions were limited to their annual tax deferred contribution limit as allowed by the Internal Revenue Service. Our total matching contributions to Old Abraxis’ 401(k) Plan were $1.4 million, $0.9 million and $0.8 million for the years ended December 31, 2007, 2006 and 2005, respectively.

8. Employee Benefit Plan

Following
the separation, we adopted and our employees became eligible to participate in a defined contribution plan intended to be tax-qualified. New APP cooperated with us to transfer the account balances of our employees to the defined contribution plan
adopted by us. We adopted the defined contribution plan in the first quarter of 2008. Prior to the separation, Old Abraxis sponsored a 401(k) defined-contribution plan, or 401(k)

82

Table of Contents

Plan, covering substantially all eligible employees. Employee contributions to the 401(k) Plan were voluntary. Under Old Abraxis’ 401(k) plan, Old
Abraxis contributed a qualified non-elective contribution in an amount equal to 3% of all eligible employee’s compensation, regardless of participation in the plan with such employer contributions vesting immediately. Participants’
contributions were limited to their annual tax deferred contribution limit as allowed by the Internal Revenue Service. Our total matching contributions to Old Abraxis’ 401(k) Plan were $1.4 million, $0.9 million and $0.8 million for the years
ended December 31, 2007, 2006 and 2005, respectively.

9. Employee Benefit Plan

Certain New Abraxis employees participate in the Abraxis BioScience, Inc. sponsored 401(k) defined-contribution plan, or Abraxis 401(k) plan, covering substantially all eligible employees . Former ABI employees began participating in the Abraxis 401(k) plan as of January 1, 2007. Prior to their participation in the New Abraxis 401(k) plan, ABI employees participated in the American BioScience, Inc., 401(k) defined- contribution plan, or ABI plan. Employer contributions to the ABI plan were equal to 50% of a covered employee’s eligible contribution up to six percent of a participant’s compensation. Employee contributions to the Abraxis 401(k) plan are voluntary. In January 2005, an enhanced 401(k) defined-contribution plan was adopted and requires an employer qualified non-elective contribution in an amount equal to three percent of all eligible employee’s compensation, regardless of participation in the plan, with such employer contributions vesting immediately. Participants’ contributions are limited to their annual tax deferred contribution limit as allowed by the Internal Revenue Service. New Abraxis’ total matching contributions to the Abraxis 401(k) plan were $0.9 million, $0.8 million and $0.4 million for the years ended December 31, 2006, 2005 and 2004, respectively. Abraxis BioScience, including New Abraxis, may contribute additional amounts to the Abraxis 401(k) Plan at its discretion although, it has never made a discretionary contribution to the Abraxis 401(k) Plan.

F-19

Table of Contents