Outstanding

Contractual Obligations and Commitments
In the normal course of business, Paladin secures development, sales, marketing and distribution rights to innovative drug products
and has entered into various agreements, which include contractual obligations extending beyond the current year. The Company is
committed to making minimum purchases of inventory, and minimum expenditures for regulatory, selling and marketing services in
the amount of $21,219, including €4,062, to retain exclusive distribution agreements for certain products. These commitments end
in 2015 and annual commitments are as follows:
Contractual Obligations
(In thousands of Canadian dollars)
Total
Less than
1 year
Purchase and service based commitments 21,219 11,425 7,690 2,104 —
In addition, under certain agreements, Paladin may have to pay additional consideration should the Company achieve certain sales
volumes or if certain milestones are met, such as regulatory approval in Canada. The Company may have to pay up to $17,871
including US$11,561, €1,000 and GBP£500 over a maximum period of 15 years if it achieves certain product, regulatory or sales
milestones on specific products in the future. The Company has the following commitments related to product license, trademark
and distribution agreements:
Commitments
(In thousands of Canadian dollars)
Total
Less than
1 year
Milestone based commitments 11,302 3,389 3,922 526 3,465
Revenues based commitments 6,569 526 1,577 525 3,941
As further described below under the “Subsequent Events” section, the Company has entered into strategic investments and
has committed to consideration in the estimated total amount of $4,460 over the following years: $2,250 in 2012 and $2,210
in 2013.
Subsequent Events
On March 3, 2010, the Company invested 4 million Euros in SpePharm Holding B.V. (“SpePharm”) in the form of a secured interestbearing
convertible debenture. SpePharm, a Dutch company with its registered office in Amsterdam, is a specialty pharmaceutical
company focused on acquiring, registering and marketing high medical value specialty medicines throughout Europe. As part of
the investment, the Company also received certain strategic collaborative rights including the exclusive license to a pharmaceutical
product in certain territories. Under the current financing terms, the conversion of the Company’s convertible debenture into equity
would provide Paladin with an approximate 10% ownership interest in SpePharm.
On March 16, 2010, the Company entered into a strategic investment to acquire an initial 34.99% ownership interest in Pharmaplan
(Pty) Ltd. (“Pharmaplan”), a privately-owned specialty pharmaceutical company based in Johannesburg, South Africa. The Company
paid an amount of approximately $18,800 in cash including a non-interest bearing loan in the amount of approximately $2,900.
In addition, the Company has committed to additional future consideration by annually increasing its ownership position by 5% over
the next 3 years to 49.99%, with such additional consideration based upon Pharmaplan’s future financial results.
1–3
years
1–3
years
4–5
years
4–5
years
After 5
years
After 5
years
Management’s Discussion & Analysis —33