On November 18, 2008, the Company filed a current report on Form 8-K (the "2008 Report") disclosing the terms of an agreement between the Company and Fletcher (the "2008 Agreement"), pursuant to which Fletcher agreed to purchase up to approximately $20 million of the Company's common stock (the "2008 Stock") and was issued warrants to purchase up to an additional $20 million of common stock (the "2008 Warrants"). The 2008 Agreement required the Company to file and maintain a registration statement until the later of..."the date all of the shares of common stock issued or issuable pursuant to the Agreement or the Warrants shall have been sold by Fletcher and its affiliates" and provides penalties in the event of the Company's failure to comply with such obligations. The 2008 Agreement and the 2008 Warrant are filed with the 2008 Report as Exhibits 4.1 and 4.2.

On March 16, 2011 (the "Closing Date"), the Company, and The Fletcher Fund, L.P. ("FFLP"), FAM and Fletcher (collectively, the "Fletcher Parties") entered into a Settlement Agreement (the "Settlement Agreement") pursuant to which the Fletcher Parties caused to be delivered to the Company the 2008 Warrant, the Preferred Warrant and the Preferred Stock and the Fletcher Parties released any and all claims against the Company arising prior to the date hereof, including any arising under the 2010 Purchase Agreement, the 2008 Agreement and the Designation, in consideration for the Company's agreement to issue to Fletcher, as and when requested by Fletcher 51,713,948 shares of the Company's common stock (the "Settlement Stock"), of which 10,808,730 shares were issued to Fletcher on the Closing Date, and the issuance to FFLP of a warrant to purchase up to 26,864,388 shares of the Company's common stock (the "Settlement Warrant") at an exercise price of $0.18612 per share, exercisable only for cash. The Settlement Stock and common stock issuable under the Settlement Warrant issued to Fletcher were registered pursuant to the Company's Registration Statement on Form S-3 (Registration No. 333-159649), and are subject to the limitation that the number of shares of common stock beneficially owned (calculated in accordance with Rule 13d-3 promulgated under the Exchange Act) by FFLP and Fletcher, collectively, would not exceed 9.9% (as the same may be adjusted or increased pursuant to the terms of the Settlement Warrant), determined after giving effect to any such issuance.

Exhibit No.        Description