2013 Compensation

On February 20, 2013, the Compensation Committee of our Board of Directors, or
the Committee, approved a merit increase to the base salaries of our named
executive officers. Retroactively effective February 16, 2013, the base salaries
for our named executive officers will be as follows:



Named Executive Officer                                             2013 Base Salary
Daniel N. Swisher, Jr.                                              $         475,000
President and Chief Executive Officer
Eric H. Bjerkholt
Executive Vice President, Corporate Development and Finance,                  380,000
Chief Financial Officer and Corporate Secretary
Adam R. Craig, Ph.D.
Executive Vice President, Development and Chief Medical                       410,000
Officer

2012 Bonus Awards

On February 20, 2013, the Committee approved the payment of cash bonuses to certain of our employees, including our named executive officers, pursuant to our 2012 Bonus Program, as previously described in our Current Report on Form 8-K filed with the Securities and Exchange Commission on March 28, 2012.

Under the 2012 Bonus Program, each participant was eligible to receive a cash bonus in an amount up to a specified target percentage of such participant's annual base salary for 2012 based on the level of achievement of certain corporate and individual objectives. The bonus payment amounts approved by the Committee were based on its determination of the degree to which such corporate and individual objectives were achieved.

A portion of the bonuses awarded to our named executive officers will consist of fully vested shares of our common stock granted under our 2011 Equity Incentive Plan, or the 2011 Plan. The bonus payment amounts for each of our named executive officers and the portion thereof to be paid in cash and shares of our common stock are as follows:

                                              Total Bonus                                 Stock Award
Named Executive Officer                         Amount           Cash Bonus Amount          Amount
Daniel N. Swisher, Jr.                       $     217,000      $           108,500      $     108,500
President and Chief Executive Officer
Eric H. Bjerkholt
Executive Vice President, Corporate                148,000                  111,000             37,000
Development and Finance, Chief Financial
Officer and Corporate Secretary
Adam R. Craig, Ph.D
Executive Vice President, Development and          160,000                  120,000             40,000
Chief Medical Officer

The cash bonus payments will be made and the stock awards will be granted effective as of February 28, 2013. The number of shares of our common stock awarded to each of our named executive officers under the 2011 Plan will be determined based on the closing price of our common stock as quoted on the NASDAQ Capital Market on February 28, 2013, rounded down to the nearest whole share.