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RELATED PARTY TRANSACTIONS
 12 Months Ended
Dec. 31, 2012
RELATED PARTY TRANSACTIONS  
RELATED PARTY TRANSACTIONS

14.            RELATED PARTY TRANSACTIONS

 

The Company has a license agreement with the Chief Executive Officer of the Company. See Note 5.

 

The Chief Executive Officer of the Company exercised a portion of his stock option in 2012.  See Note 12.

 

During the years ended December 31, 2012, 2011, and 2010, the Company paid $91,086; $96,787; and $75,831, respectively, to a family member of its Chief Executive Officer as an employee and consultant.

 

During the year ended December 31, 2010, the Company paid $20,350 to a Director’s company for participating in clinical trials.

 

The Chief Executive Officer exchanged his Preferred Stock shares for Common Stock and cash in the fourth quarter of 2011 pursuant to the 2011 Exchange Offer on the same terms as were offered to all Preferred Stockholders.  He received 86,607 shares of Common Stock and $95,843 in exchange for 5,000 shares of Series IV Preferred Stock and 81,607 shares of Series V Preferred Stock, and he waived a total of $58,110 in unpaid dividends in arrears.  The Company’s Common Stock had a closing stock price of $1.39 at November 4, 2011, the expiration date of the 2011 Exchange Offer.