On March 11, 2011, the Company issued 20,000 stock options to Mr. Brian Bohunicky, our Chief Financial Officer under the Company's Amended and Restated 2002 Stock Option and Incentive Plan, as amended (the "Plan"). These options vest equally over a three year period from the date of grant and are exercisable at $3.60 per share, the close market price of the Company's common stock on the date of grant.

On May 25, 2011, the Company issued 125,800 stock options to Dr. John Bonfiglio, our Chief Executive Officer under the Plan. These options are exercisable at $4.76 per share, the closing market price of the Company's common stock on the date of the grant. Of the options granted 78,625 vest immediately and are exercisable over ten years. The remaining 47,175 options vest at an even amount over the next three years on the anniversary date of grant.

On May 13, 2011 the Board of Directors and Compensation Committee awarded 50,000 stock options to each of the independent members of the Board of Directors: Mr. Charles Pope, Dr. Alan Dunton and Dr. Fred Telling. Of the options granted 75,000 vested immediately and the remaining 75,000 vest on the anniversary date of grant and are exercisable at $5.00 per share, the closing market price of the Company's common stock on the date of the grant.

From January 1, 2011 to the date of this filing 125,925 stock options previously granted have vested and 104,038 have been forfeited. Stock option compensation expense of $700,263 and $816,270 was recorded for the three and six months ended June 30, 2011 compared to $266,863 and $461,071 for the three and six months ended June 30, 2010, respectively, and is a non-cash expense. This amount is included in research and development and selling, general and administrative expenses in the accompanying statements of operations.