(1)

The 2018 base salary reflects no increase as compared to the base salary in 2017. Effective February 1, 2018, Dr. Theeuwes will adjust his schedule from three days per week to one day per week. Dr. Theeuwes’ notional salary becomes $125,000 effective February 1, 2018 and then $90,000 effective July 1, 2018.

(2)

The bonus awarded for performance in 2017 as determined by the Compensation Committee on January26, 2018 was established to be paid 50% in stock options. The total shares subject to each bonus option was determined by using a standard Black-Scholes option-pricing model. The exercise price per share of such option grant is $1.24, the closing price of the Company’s common stock on the NASDAQ Global Market on the date of grant. The shares subject to the bonus options are fully vested upon grant. In the event of the optionee’s termination of service with the Company for a reason other than Cause, the post termination exercise period for the options shall be one (1)year, subject to the ten (10)year term of the option.

(3)

The 2018 annual options were granted by the Compensation Committee on January26, 2018. The exercise price per share of such option grant is $1.24, the closing price of the Company’s common stock on the NASDAQ Global Market on the date of grant. The vesting associated with the options is as follows: one-sixteenth (1/16)of the total shares subject to the option shall vest quarterly over four (4)years following the date of grant, subject to continued service. In the event of the optionee’s termination of service with the Company for a reason other than Cause, the post termination exercise period for the options shall be one (1)year, subject to the ten (10)year term of the option.

(4)

The actual bonus to be awarded will be at the Committee’s complete discretion based on the Company’s performance against specified corporate objectives and other factors to be taken into account at the discretion of the Committee.