Abraxis BioScience (ABII)

Off-Balance Sheet Arrangements

We provide irrevocable standby letters of credits to secure our obligations under certain lease agreements and other obligations. These standby letters of credit are generally for a term of one-year or less and may be extended to match the term of our obligation. As of December 31, 2009 and 2008, we had outstanding letters of credits of $3.1 million and $3.8 million, respectively. In 2008, in connection with the reacquisition of the exclusive rights to market Abraxane^® in the U.S. (see Item 8—Financial Statements and Supplementary Data, Note 4—Acquisitions and Other Transactions for further details), we issued $286.0 million in irrevocable standby letters of credit to secure the future payments under the termination agreement. These letters of credits were collateralized by $300.6 million of our cash balance, which was included in “Cash collateral for reacquisition of agreement” in the balance sheet as of December 31, 2008. In March 2009, we made the final payments under the agreement and were released from our obligation to maintain the cash collateral.

Off-Balance Sheet Arrangements

We provided irrevocable standby letters of credits to secure our obligations under certain lease agreements and other obligations. These standby letters of credit are generally for a term of one-year or less, in no case with

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maturities exceeding December 31, 2009. However, the standby letters may be extended to match the term of our obligation. As of December 31, 2008, there were $3.8 million of these letters of credit outstanding. In addition, in connection with the reacquisition of the exclusive rights to market Abraxane^® in the U.S. (see Item 8—Financial Statement and Supplementary Data, Note 3—Acquisitions and Other Transactions for further details), we issued $286.0 million in irrevocable standby letters of credit to secure the future payments under the termination agreement. These letters of credits are collateralized by $300.6 million of our cash balance and expire in April 2009. The termination liability is recorded in our balance sheet under the caption “Reacquisition payable”.

Off-Balance Sheet Arrangements

SIZE="2">We provided irrevocable standby letters of credits to secure our obligations under certain lease agreements and other obligations. These standby letters of credit are generally for a term of one-year or less, in no case with

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maturities exceeding December 31, 2009. However, the standby letters may be extended to match the term of our obligation. As of December 31, 2008,
there were $3.8 million of these letters of credit outstanding. In addition, in connection with the reacquisition of the exclusive rights to market Abraxane^® in the U.S. (see
Item 8—Financial Statement and Supplementary Data, Note 3—Acquisitions and Other Transactions for further details), we issued $286.0 million in irrevocable standby letters of credit to secure the future payments under the
termination agreement. These letters of credits are collateralized by $300.6 million of our cash balance and expire in April 2009. The termination liability is recorded in our balance sheet under the caption “Reacquisition payable”.

Off-Balance Sheet Arrangements

We do not currently have any off-balance sheet arrangements that are material or reasonably likely to be material to our financial position or results of operations.

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Off-Balance Sheet Arrangements

SIZE="2">We do not currently have any off-balance sheet arrangements that are material or reasonably likely to be material to our financial position or results of operations.

SIZE="1"> 

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