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(a)
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Amount beneficially owned:
QVT Fund LP (the Fund), beneficially owns 8,305,346 shares of Common Stock. The Fund also holds 3,333,340 four-year term warrants
(Warrants), which, subject to certain conditions, entitle the Fund to purchase shares of Common Stock. Quintessence Fund L.P. (Quintessence) beneficially owns 888,407 shares of Common Stock and 358,066 Warrants. The Warrants
contain an issuance limitation prohibiting the holder of such Warrants from exercising the Warrants to the extent that such exercise would result in beneficial ownership by such holder and certain related parties of more than 9.99% of the Common
Stock then issued and outstanding.
QVT Financial LP (QVT
Financial) is the investment manager for the Fund and Quintessence. Due to the issuance limitation described above, the Fund may be deemed to beneficially own 8,305,346 shares of Common Stock and Quintessence may be deemed to beneficially own
888,407 shares of Common Stock. Accordingly, taking into account the issuance limitation, QVT Financial may be deemed to be the beneficial owner of an aggregate amount of 9,193,753 shares of Common Stock, consisting of the shares of Common Stock
owned by the Fund and Quintessence. The remaining shares of Common Stock underlying the Warrants held by the Fund and Quintessence may not be issued unless the Fund and Quintessence provide notice to the Issuer 61 days prior to the exercise of the
Warrants that this limitation will not apply.
The aggregate number of
shares of Common Stock of which the Fund would be deemed to be the beneficial owner if the Fund had the right to presently exercise all of its Warrants in full is 11,638,686. The aggregate number of shares of Common Stock of which Quintessence would
be deemed to be the beneficial owner if Quintessence had the right to presently exercise all of its Warrants in full is 1,246,473. The aggregate number of shares of Common Stock of which QVT Financial would be deemed to be the beneficial owner if
the Fund and Quintessence had the right to presently exercise all of the Warrants is 12,885,159.
QVT Financial GP LLC, as General Partner of QVT Financial, may be deemed to beneficially own the same number of shares of Common Stock reported by QVT Financial. QVT Associates GP LLC, as General Partner
of the Fund and Quintessence, may be deemed to beneficially own the aggregate number of shares of Common Stock owned by the Fund and Quintessence, and accordingly, QVT Associates GP LLC may be deemed to be the beneficial owner of an aggregate amount
of 9,193,753 shares of Common Stock.
Each of QVT Financial and QVT
Financial GP LLC disclaim beneficial ownership of the shares of Common Stock beneficially owned by the Fund and Quintessence. QVT Associates GP LLC disclaims beneficial ownership of all shares of Common Stock owned by the Fund and Quintessence,
except to the extent of its pecuniary interest therein.
The reported share
amounts reflect amounts beneficially owned by the reporting persons as of December 31, 2009 and as of the date hereof.
The percentage disclosed in Item 11 of the Cover Pages for each reporting person is calculated based upon 61,562,606 shares of Common Stock outstanding, which is the total number of shares issued and
outstanding as reported in the Issuers Annual Report on Form 10-K for the year ended December 31, 2009 and filed with the Securities and Exchange Commission on March 26, 2010.
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