Note 21—Subsequent Events

On January 31, 2012, the Company's Chief Executive Officer ("CEO") resigned his position. On February 1, 2012, the Company's Board of Directors appointed David Y. Norton, a member of the Savient Board and former Company Group Chairman, Global Pharmaceuticals for Johnson & Johnson, to the role of Interim CEO. Mr. Norton joined the Savient Board in September 2011. The Company's Board of Directors is currently in the process of conducting a search for a permanent CEO.

On January 23, 2012, the Company entered into a lease agreement for new premises located in Bridgewater New Jersey. The premises, consisting of approximately 48,469 rentable square feet of office facilities, will be used as the Company's principal offices and corporate headquarters. The Company intends to relocate all of its operations presently conducted in East Brunswick, New Jersey to the new facility by the third quarter of 2012. The term of the new lease is 123 months, and the Company has rights to extend the term for two additional five-year lease terms at fair market value subject to specified terms and conditions. The aggregate minimum lease commitment over the 123 month term of the new lease is approximately $15.2 million. The Company has provided the landlord a letter of credit of $1.5 million, to secure its obligations under the lease.

The lease agreement includes fixed escalations of minimum annual lease payments and accordingly, the Company will recognize rent expense on a straight-line basis over the lease term and record the difference between rent expense and current cash rent payments as deferred rent, which will be reflected in the Company's consolidated balance sheets as a deferred lease liability included as a component of other liabilities.

Additionally, in connection with the lease, the property owner provided a lease inducement to the Company in the form of a $2.0 million tenant improvement allowance. The Company will account for reimbursements under this tenant improvement allowance provision by recording a leasehold improvement asset with a corresponding lease incentive liability.

The leasehold improvement asset and the lease incentive liability will be amortized on a straight line basis over the term of the lease to depreciation expense and as an offset to rent expense, respectively. The consolidated balance sheets will reflect the deferred lease incentive liability as a component of other current liabilities or other liabilities, for the short and long-term portions, respectively.

The minimum annual payments under the new lease are as follows:


	(In thousands)
Year Ending December 31:
2012	$	799
2013		1,383
2014		1,408
2015		1,432
2016		1,456
Thereafter		8,708

Total minimum payments	$	15,186