On February 13, 2013, the bonuses for the executive officers of NovaBay Pharmaceuticals, Inc. for 2012 were established, upon the completion of the performance reviews for each of the executive officers for 2012. The Compensation Committee applied the criteria previously established and in conformance with the Executive Officer Cash Bonus Structure as described in Exhibit 10.4 to NovaBay's Annual Report on Form 10-K, filed with the Securities and Exchange Commission on March 27, 2012, and determined that a company performance achievement of 71.3% should be applied to the pre-established target bonuses for the executive officers.

The pre-established target bonuses for NovaBay's executive officers appearing in NovaBay's summary compensation table in the company's latest proxy statement (the "NovaBay's named executive officers") are 40% of base salary for Ramin ("Ron") Najafi, Ph.D., NovaBay's Chairman and Chief Executive Officer, and 30% of base salary for each of Thomas J. Paulson, NovaBay's Chief Financial Officer and Treasurer, and Behzad Khosrovi, Ph.D., NovaBay's Chief Alliance Officer and SVP, Product Development.

The 2012 bonuses for the named executive officers (as defined in Item 402(a)(3) of Regulation S-K promulgated by the Securities and Exchange Commission) of NovaBay for the fiscal year ended December 31, 2012, are as follows:

Name                        Title                             2012 Bonus
                            Chairman and Chief Executive
Ramin ("Ron") Najafi, Ph.D. Officer                           $    104,427
                            Chief Financial Officer and
Thomas J. Paulson           Treasurer                         $     59,439
                            Chief Alliance Officer and SVP,
Behzad Khosrovi, Ph.D.      Product Development               $     56,586