|                           |                                                                                      |
|---------------------------|--------------------------------------------------------------------------------------|
| S     | Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |

|                           |                                                                                          |
|---------------------------|------------------------------------------------------------------------------------------|
| o     | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |

|                                                                      |
|----------------------------------------------------------------------|
|                                                                      |  |  |
| Massachusetts                                                        |   | 04-2457335 |
| (State or other jurisdiction of incorporation or organization)  |   | (I.R.S. Employer Identification Number)  |

|                                         |
|-----------------------------------------|
|                                         |  |  |
| Title of Each Class                     |   | Name of Each Exchange on Which Registered |
| Common Stock, $0.01 par value per share |   | The Nasdaq Global Market |

|                                 |
|---------------------------------|
|                                 |  |  |  |
| Large accelerated filer  o | Accelerated filer  o | Non-accelerated filer  o | Smaller reporting company   x |
|                            |   | (Do not check if a smaller reporting company)  |   |

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|                  |
|------------------|
|                  |  |  |
| Explanatory Note |   | 1 |
|             |   |   |
| PART I           |   |   |
|             |   |   |
| Item 1.          | Business | 1 |
| Item 1A.         | Risk Factors | 7 |
| Item 1B.         | Unresolved Staff Comments | 15 |
| Item 2.          | Properties | 15 |
| Item 3.          | Legal Proceedings | 16 |
| Item 4.          | Reserved | 16 |
|             |   |   |
| PART II          |   |   |
|             |   |   |
| Item 5.          | Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | 17 |
| Item 6.          | Selected Financial Data | 17 |
| Item 7.          | Management's Discussion and Analysis of Financial Condition and Results of Operations | 17 |
| Item 7A.         | Quatitative and Qualitative Disclosures About Market Risk | 30 |
| Item 8.          | Financial Statements and Supplementary Data | 31 |
| Item 9.          | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure | 59 |
| Item 9A(T).      | Controls and Procedures | 59 |
| Item 9B.         | Other Information | 61 |
|             |   |   |
| PART III         |   |   |
|             |   |   |
| Item 10.         | Directors, Executive Officers and Corporate Governance | 61 |
| Item 11.         | Executive Compensation | 61 |
| Item 12.         | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | 61 |
| Item 13.         | Certain Relationships and Related Transactions and Director Independence | 61 |
| Item 14.         | Principal Accounting Fees and Services | 62 |
|             |   |   |
| PART IV          |   |   |
|             |   |   |
| Item 15.         | Exhibits, Financial Statement Schedules | 63 |
|             |   |   |
|             | Signatures | 66 |

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|         |                                              |
|---------|----------------------------------------------|
| • | Sorting solar cells into performance groups; |

|         |                                                                                        |
|---------|----------------------------------------------------------------------------------------|
| • | Assembling and soldering strings of cells interconnected with metal ribbons or "tabs"; |

|         |                                                                                         |
|---------|-----------------------------------------------------------------------------------------|
| • | Completing the module circuit by soldering bus ribbons to connect the strings together; |

|         |                                                                                                                                              |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------|
| • | Cutting polymer, fiberglass and back cover to length and assembling them with the glass and module circuit in preparation for encapsulation; |

|         |                                                                      |
|---------|----------------------------------------------------------------------|
| • | Laminating the module assembly and curing the encapsulating polymer; |

|         |                                                                                                             |
|---------|-------------------------------------------------------------------------------------------------------------|
| • | Final assembly, including edge trimming, installing an edge gasket and frame, and attaching a junction box; |

|         |                                                                                                                                 |
|---------|---------------------------------------------------------------------------------------------------------------------------------|
| • | Performing a high voltage isolation test to guarantee safe voltage isolation between the cell circuit and the module frame; and |

|         |                                                                                                            |
|---------|------------------------------------------------------------------------------------------------------------|
| • | Electrically testing the module performance by measuring a current-voltage curve under simulated sunlight. |

----

----

----

|                     |
|---------------------|
|                     |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in thousands)      | 2010 |   | % |   | 2009 |   | % |
|  United States | $ | 48,793 |  |   | 61 | % |   | $ | 28,798 |  |   | 41 | % |
| Europe/N. Africa    | 14,763 |  |   | 19 | % |   | 15,191 |  |   | 22 | % |
| Asia                | 16,233 |  |   | 20 | % |   | 25,561 |  |   | 37 | % |
| Rest of the world   | 53 |  |   | — | % |   | 321 |  |   | — | % |
|                | $ | 79,842 |  |   | 100 | % |   | $ | 69,871 |  |   | 100 | % |

----

|         |                                                                                                                                                                                        |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Availability of raw materials processed by the capital equipment we provide to our buyers, particularly the polysilicon used in the manufacture of the silicon wafers and solar cells; |

|         |                                                                                                                                                                                                                                                            |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Delays, postponements or cancellations of orders and shipments of our products, particularly in our solar equipment and solar systems businesses where individual order sizes may be large and thus may represent a significant portion of annual revenue; |

|         |                                                                                                                        |
|---------|------------------------------------------------------------------------------------------------------------------------|
| • | Changes in our receipt of license fees, milestone payments and royalty payments relating to our intellectual property; |

|         |                                                                                                                                                                                           |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Loss of major customers, particularly as a result of customers changing their own product designs in such ways as reduce or eliminate the need for the manufacturing services we provide; |

|         |                                                                                                     |
|---------|-----------------------------------------------------------------------------------------------------|
| • | Reductions in the selling prices of our products and services as a result of competitive pressures; |

|         |                                                                                                                                                                                                                                                                |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Certain customers purchasing our solar equipment and optoelectronic services need to raise capital or borrow money as they are not currently profitable.  If capital and credit markets are again disrupted this may impact our ability to grow revenues; |

|         |                                                                                                                                                         |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Increased competition from current and future competitors, including competition resulting from services and products utilizing competing technologies; |

|         |                                                                                                 |
|---------|-------------------------------------------------------------------------------------------------|
| • | Termination of existing grants with government agencies or delays in funding of grants awarded; |

|         |                                                                                                                           |
|---------|---------------------------------------------------------------------------------------------------------------------------|
| • | Problems experienced by our solar representatives through which we market, sell, and service certain foreign markets; and |

|         |                                                                                                                          |
|---------|--------------------------------------------------------------------------------------------------------------------------|
| • | We have had customers cancel contracts and forfeit their deposits.  This may occur in the future and these deposits |

----

|         |                                                                                                                                                    |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Consolidation of equipment manufacturers in the marketplace thereby reducing competitive advantages while experiencing market pricing concessions; |

|         |                                                                                                 |
|---------|-------------------------------------------------------------------------------------------------|
| • | Global nature of the competitive landscape and challenges associated with geographic diversity; |

|         |                                                                                                                                                                  |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Performance and reliability of photovoltaic systems and thin film technology compared to conventional and other non-solar renewable energy sources and products; |

|         |                                                                                                                                                           |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Availability and substance of government subsidies, incentives and renewable portfolio standards to support the development of the solar energy industry; |

|         |                                                                                                                               |
|---------|-------------------------------------------------------------------------------------------------------------------------------|
| • | Position in the marketplace relative to competition and ability to scale upward as business opportunities are identified; and |

|         |                                                                                                                                                                                                                                                                                |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Unforeseen fluctuations in financially viable markets that affect the ability of customers to secure required financing for capital expenditures at competive rates as well as vendor credit constraints and interruptions in materials flow throughout the U.S. supply chain. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The growth of our optoelectronics business depends upon growth in demand for compound semiconductor wafers from manufacturers of microwave and optoelectronic circuits and sensors that, in turn, are used in diverse biomedical, telecommunications and aerospace products. Should these end-use markets not experience anticipated levels of growth and, in the case of telecommunications uses, experience a recovery from currently depressed business levels, our optoelectronics business could be adversely affected. |

|         |                                                                                                                                                                                                                                                                        |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | A significant amount of revenue in 2010 was from a Federal government contract to develop solar concentrator cell technology, which ended in 2010.  If we cannot commercialize this technology, we will need to find replacement customers for our services. |

----

|         |                                                                                                     |
|---------|-----------------------------------------------------------------------------------------------------|
| • | Negotiation and execution of  acceptable engineering, procurement and construction agreements; |

|         |                                                                                                                                       |
|---------|---------------------------------------------------------------------------------------------------------------------------------------|
| • | Obtaining required governmental permits and approvals, including, but not limited to, the right to interconnect to the electric grid; |

|         |                                                                                               |
|---------|-----------------------------------------------------------------------------------------------|
| • | Timely payment of customer  deposits to ensure a positive cash flow by deliverable; |

|         |                                                                                              |
|---------|----------------------------------------------------------------------------------------------|
| • | Facilitating  the obtaining of the required  construction financing; and |

|         |                                                                                             |
|---------|---------------------------------------------------------------------------------------------|
| • | On schedule implementation and satisfactory sign-off related to completion of construction. |

----

----

|         |                                                                                                                |
|---------|----------------------------------------------------------------------------------------------------------------|
| • | The steps we take to prevent misappropriation or infringement of our intellectual property will be successful; |

|         |                                                                                     |
|---------|-------------------------------------------------------------------------------------|
| • | Any existing or future patents will not be challenged, invalidated or circumvented; |

|         |                                                                          |
|---------|--------------------------------------------------------------------------|
| • | Any pending patent applications or future applications will be approved; |

|         |                                                                                                              |
|---------|--------------------------------------------------------------------------------------------------------------|
| • | Others will not independently develop similar products or processes to ours or design around our patents; or |

|         |                                                                          |
|---------|--------------------------------------------------------------------------|
| • | Any of the measures described above would provide meaningful protection. |

----

|         |                                                                                |
|---------|--------------------------------------------------------------------------------|
| • | Reliance on strategic alliance partners such as representatives and licensees; |

|         |                                                                        |
|---------|------------------------------------------------------------------------|
| • | Compliance with changing foreign regulatory requirements and tax laws; |

|         |                                                                        |
|---------|------------------------------------------------------------------------|
| • | Reduced protection for intellectual property rights in some countries; |

|         |                                                                         |
|---------|-------------------------------------------------------------------------|
| • | Longer payment cycles to collect accounts receivable in some countries; |

|         |                                                                                                  |
|---------|--------------------------------------------------------------------------------------------------|
| • | Increased costs or reduced revenues as a result of movements in foreign currency exchange rates; |

|         |                        |
|---------|------------------------|
| • | Political instability; |

----

|         |                                              |
|---------|----------------------------------------------|
| • | Economic downturns in international markets; |

|         |                                                                                                                                      |
|---------|--------------------------------------------------------------------------------------------------------------------------------------|
| • | Strengthening of the United States dollar may negatively impact our foreign customers ability to purchase our products and services. |

|         |                                                                                                                                                                                                                       |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Trade barriers such as export requirements, tariffs, taxes and other restrictions and expenses, which could increase the prices of our products and make our product offering less competitive in some countries; and |

|         |                                                                   |
|---------|-------------------------------------------------------------------|
| • | Changing restrictions imposed by United States export laws.  |

|         |                                                                                                                                                                      |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | stockholders’ equity of at least $10 million and market value of the common stock held by non-affiliates of at least $5 million (Marketplace Rule 5450(b)(1)); |

----

|         |                                                                                                                                                                                 |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | market value of listed securities of at least $50 million and market value of the common stock held by non-affiliates of at least $15 million (Marketplace Rule 5450(b)(2)); or |

|         |                                                                                                                                                                                                                                                                                     |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | total assets and total revenue of at least $50 million each for the most recently completed fiscal year or two of the three most recently completed fiscal years and market value of the common stock held by non-affiliates of at least $15 million (Marketplace Rule 5450(b)(3)). |

|         |                                                            |
|---------|------------------------------------------------------------|
| • | Overall economic conditions and general market volatility; |

|         |                                                                                        |
|---------|----------------------------------------------------------------------------------------|
| • | Changes in investment analysts’ estimates of our revenues and operating results; |

|         |                                                                              |
|---------|------------------------------------------------------------------------------|
| • | Our failure to meet investment analysts’ performance expectations; and |

|         |                                                                                                                    |
|---------|--------------------------------------------------------------------------------------------------------------------|
| • | Changes in market valuations of other companies in the alternative energy, semiconductor or biomedical industries. |

----

|         |                                                                               |
|---------|-------------------------------------------------------------------------------|
| • | Dispose of or encumber assets, other than in the ordinary course of business, |

|         |                                |
|---------|--------------------------------|
| • | Incur additional indebtedness, |

|         |                                                                            |
|---------|----------------------------------------------------------------------------|
| • | Merge or consolidate with other entities, or acquire other businesses, and |

|         |                   |
|---------|-------------------|
| • | Make investments. |

----

----

|                |
|----------------|
|                |  |  |  |  |  |  |  |
|           | High Bid |   | Low Bid |
| 2010           |   |   |   |
| First Quarter  | $ | 5.92 |  |   | $ | 3.35 |  |
| Second Quarter | 4.59 |  |   | 3.00 |  |
| Third Quarter  | 4.45 |  |   | 3.00 |  |
| Fourth Quarter | 6.76 |  |   | 3.01 |  |
| 2009           |   |  |   |   |  |
| First Quarter  | $ | 7.60 |  |   | $ | 3.25 |  |
| Second Quarter | 8.99 |  |   | 4.00 |  |
| Third Quarter  | 6.57 |  |   | 3.50 |  |
| Fourth Quarter | 6.17 |  |   | 3.50 |  |

----

----

|                                                           |
|-----------------------------------------------------------|
|                                                           |  |  |  |  |  |
|                                                      | Year Ended December 31, |
|                                                      | 2010 |   | 2009 |
|  Net sales and revenues                              | 100 |  % |   | 100 |  % |
| Cost of sales and revenues                                | (82 | ) |   | (91 | ) |
| Gross margin                                              | 18 |  |   | 9 |  |
| Selling, general and administrative expenses              | (23 | ) |   | (25 | ) |
| Internal research and development expenses                | (2 | ) |   | (1 | ) |
| Gain on termination of contracts                          | 2 |  |   | 4 |  |
| Loss from continuing operations                           | (5 | ) |   | (13 | ) |
| Other expense, net                                        | — |  |   | (2 | ) |
| Loss from continuing operations before income tax benefit | (5 | ) |   | (15 | ) |
| Income tax benefit - continuing operations                | 2 |  |   | 3 |  |
| Net loss from continuing operations                       | (3 | ) |   | (12 | ) |
| Net income from discontinued operations, net of tax       | 2 |  |   | 4 |  |
| Net loss                                                  | (1 | )% |   | (8 | )% |

----

|                                                      |
|------------------------------------------------------|
|                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                 | Year Ended December 31, |   | Increase |
| (in thousands)                                       | 2010 |   | 2009 |   | $ |   | % |
|  Sales of goods                                 | $ | 66,736 |  |   | $ | 57,761 |  |   | $ | 8,975 |  |   | 16 | % |
| Contract research, service and license revenues | 13,106 |  |   | 12,110 |  |   | 996 |  |   | 8 | % |
| Net sales and revenues                               | $ | 79,842 |  |   | $ | 69,871 |  |   | $ | 9,971 |  |   | 14 | % |

|                                                                   |
|-------------------------------------------------------------------|
|                                                                   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                              | Years Ended December 31, |   | Increase |
| (in thousands)                                                    | 2010 |   | % |   | 2009 |   | % |   | $ |   | %  |
|  Cost of goods sold                                          | $ | 55,161 |  |   | 83 | % |   | $ | 54,246 |  |   | 94 | % |   | $ | 915 |  |   | 2 | % |
| Cost of contract research,   services and licenses | 10,002 |  |   | 77 | % |   | 9,164 |  |   | 76 | % |   | 838 |  |   | 9 | % |
| Net cost of sales and revenues                                    | $ | 65,163 |  |   | 82 | % |   | $ | 63,410 |  |   | 91 | % |   | $ | 1,753 |  |   | 3 | % |

----

|                                     |
|-------------------------------------|
|                                     |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                | Years Ended December 31, |   | Increase |
| (in thousands)                      | 2010 |   | % |   | 2009 |   | % |   | $  |   | %  |
| Selling, general and administrative | $ | 18,116 |  |   | 23 | % |   | $ | 17,836 |  |   | 26 | % |   | $ | 280 |  |   | 2 | % |
| Internal research and development   | 1,286 |  |   | 1 | % |   | 1,088 |  |   | 1 | % |   | 198 |  |   | 18 | % |
| Operating expenses                  | $ | 19,402 |  |   | 24 | % |   | $ | 18,924 |  |   | 27 | % |   | $ | 478 |  |   | 3 | % |

----

----

|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                      | December 31, |   | December 31, |   | Increase (Decrease) |
| (in thousands)            | 2010 |   | 2009 |   | $ |   | % |
| Cash and cash equivalents | $ | 6,259 |  |   | $ | 8,999 |  |   | $ | (2,740 | ) |   | (30 | )% |
| Working capital           | $ | 5,166 |  |   | $ | 3,718 |  |   | $ | 1,448 |  |   | 39 |  % |

----

----

----

|                                                 |
|-------------------------------------------------|
|                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                            |   | Payments Due by Period |
| Contractual Obligations                         |   | Total |   | Less than1 Year |   | 2 - 3Years |   | 4 - 5Years |   | More Than 5 Years |
| (in thousands)                                  |   |   |   |   |   |   |   |   |   |   |
| Second Restated Revolving Credit Facility (SVB) |   | $ | 842 |  |   | $ | 842 |  |   | — |  |   | — |  |   | — |  |
| Restated Ex-Im Facility (SVB)                   |   | $ | 315 |  |   | $ | 315 |  |   |   |   |   |   |   |
| Purchase obligations                            |   | $ | 5,567 |  |   | $ | 5,314 |  |   | $ | 239 |  |   | $ | 14 |  |   | — |  |
| Unrelated party capital leases                  |   | $ | 119 |  |   | $ | 54 |  |   | $ | 56 |  |   | $ | 9 |  |   | — |  |
| Operating leases:                               |   |   |  |   |   |   |   |  |   |   |  |   |   |  |
| Unrelated party operating leases                |   | $ | 322 |  |   | $ | 127 |  |   | $ | 195 |  |   | — |  |   | — |  |
| Related party operating leases                  |   | $ | 23,000 |  |   | $ | 3,419 |  |   | $ | 7,322 |  |   | $ | 7,349 |  |   | $ | 4,910 |  |

----

----

----

----

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|                                                                                             |
|---------------------------------------------------------------------------------------------|
|                                                                                             |  |  |
| Report of Independent Registered Public Accounting Firm (MCGLADREY & PULLEN, LLP)  | 32 |
|                                                                                        |   |   |
| Report of Independent Registered Public Accounting Firm (CATURANO AND COMPANY, P.C.)   | 33 |
|                                                                                        |   |   |
| Consolidated Financial Statements:                                                     |   |
|                                                                                        |   |   |
|                                                                                        | Consolidated Balance Sheets as of December 31, 2010 and 2009  | 34 |
|                                                                                        |   |   |
|                                                                                        | Consolidated Statements of Operations for the Years Ended December 31, 2010 and 2009  | 35 |
|                                                                                        |   |   |
|                                                                                        | Consolidated Statements of Stockholders' Equity and Comprehensive Income (Loss) for theYears Ended December 31, 2010 and 2009    | 36 |
|                                                                                        |   |   |
|                                                                                        | Consolidated Statements of Cash Flows for the Years Ended December 31, 2010 and 2009  | 37 |
|                                                                                        |   |   |
|                                                                                        | Notes to Consolidated Financial Statements     | 38 |

----

----

----

|                                                                                                                                                                                                                                |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                |  |  |  |  |  |  |  |
|                                                                                                                                                                                                                           | December 31, 2010 |   | December 31, 2009 |
| Assets                                                                                                                                                                                                                         |   |   |   |
| Current assets                                                                                                                                                                                                                 |   |   |   |
| Cash and cash equivalents                                                                                                                                                                                                      | $ | 6,259 |  |   | $ | 8,999 |  |
| Restricted cash – current portion                                                                                                                                                                                        | 21 |  |   | 1,501 |  |
|                                                                                                                                                                                                                           | 6,280 |  |   | 10,500 |  |
| Accounts receivable – trade, net                                                                                                                                                                                         | 7,324 |  |   | 5,890 |  |
| Inventories, net                                                                                                                                                                                                               | 10,932 |  |   | 20,489 |  |
| Deferred cost of goods sold                                                                                                                                                                                                    | 1,018 |  |   | 6,588 |  |
| Deposits on equipment for inventory                                                                                                                                                                                            | 88 |  |   | 583 |  |
| Prepaid expenses and other current assets                                                                                                                                                                                      | 809 |  |   | 777 |  |
| Current assets of discontinued operations and assets held for sale                                                                                                                                                             | — |  |   | 154 |  |
| Total current assets                                                                                                                                                                                                           | 26,451 |  |   | 44,981 |  |
|                                                                                                                                                                                                                           |   |   |   |
| Property and equipment, net                                                                                                                                                                                                    | 4,588 |  |   | 5,364 |  |
|                                                                                                                                                                                                                           |   |   |   |
| Intangible and other assets, net                                                                                                                                                                                               | 820 |  |   | 742 |  |
| Available-for-sale investments, at quoted market value (cost of $1,980 and $1,714 at     December 31, 2010 and 2009, respectively)                                                                    | 2,426 |  |   | 1,948 |  |
| Deposit – related party                                                                                                                                                                                                  | 300 |  |   | 300 |  |
| Non-current assets of discontinued operations and assets held for sale                                                                                                                                                         | — |  |   | 58 |  |
| Total assets                                                                                                                                                                                                                   | $ | 34,585 |  |   | $ | 53,393 |  |
|                                                                                                                                                                                                                           |   |   |   |
| Liabilities and Stockholders’ Equity                                                                                                                                                                                     |   |  |   |   |  |
| Current liabilities                                                                                                                                                                                                            |   |  |   |   |  |
| Current portion of capital lease obligation                                                                                                                                                                                    | $ | 44 |  |   | $ | 39 |  |
| Current portion of equipment and revolving line of credit                                                                                                                                                                      | 1,157 |  |   | 1,925 |  |
| Accounts payable                                                                                                                                                                                                               | 6,487 |  |   | 8,676 |  |
| Accrued liabilities                                                                                                                                                                                                            | 4,221 |  |   | 7,233 |  |
| Current portion of advances on contracts in progress                                                                                                                                                                           | 9,010 |  |   | 21,708 |  |
| Liabilities of discontinued operations                                                                                                                                                                                         | 366 |  |   | 1,682 |  |
| Total current liabilities                                                                                                                                                                                                      | 21,285 |  |   | 41,263 |  |
|                                                                                                                                                                                                                           |   |   |   |
| Long-term portion of capital lease obligation                                                                                                                                                                                  | 58 |  |   | 102 |  |
| Long-term portion of advances on contracts in progress                                                                                                                                                                         | — |  |   | 4 |  |
| Deferred compensation                                                                                                                                                                                                          | 2,426 |  |   | 1,948 |  |
| Other long-term liabilities                                                                                                                                                                                                    | 911 |  |   | 572 |  |
| Total long-term liabilities                                                                                                                                                                                                    | 3,395 |  |   | 2,626 |  |
| Total liabilities                                                                                                                                                                                                              | 24,680 |  |   | 43,889 |  |
|  Stockholders’ equity                                                                                                                                                                                               |   |  |   |   |  |
| Common stock, $0.01 par value; 20,000,000 shares authorized; 8,360,133 and 8,334,688 shares       issued and outstanding on December 31, 2010 and December 31, 2009, respectively | 84 |  |   | 83 |  |
| Additional paid-in capital                                                                                                                                                                                                     | 21,979 |  |   | 21,383 |  |
| Accumulated deficit                                                                                                                                                                                                            | (12,604 | ) |   | (12,196 | ) |
| Accumulated other comprehensive income                                                                                                                                                                                         | 446 |  |   | 234 |  |
| Total stockholders’ equity                                                                                                                                                                                               | 9,905 |  |   | 9,504 |  |
| Total liabilities and stockholders’ equity                                                                                                                                                                               | $ | 34,585 |  |   | $ | 53,393 |  |

----

|                                                                                                                             |
|-----------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                             |  |  |  |  |  |  |  |
|                                                                                                                        | Years Ended December 31, |
|                                                                                                                        | 2010 |   | 2009 |
| Net sales and revenues                                                                                                      |   |   |   |
| Sales of goods                                                                                                              | $ | 66,736 |  |   | $ | 57,761 |  |
| Contract research, service and license revenues                                                                             | 13,106 |  |   | 12,110 |  |
| Total net sales and revenues                                                                                                | 79,842 |  |   | 69,871 |  |
|                                                                                                                        |   |   |   |
| Cost of sales and revenues                                                                                                  |   |  |   |   |  |
| Cost of goods sold                                                                                                          | 55,161 |  |   | 54,246 |  |
| Cost of contract research, services and licenses                                                                            | 10,002 |  |   | 9,164 |  |
| Total cost of sales and revenues                                                                                            | 65,163 |  |   | 63,410 |  |
|                                                                                                                        |   |   |   |
| Gross margin                                                                                                                | 14,679 |  |   | 6,461 |  |
|                                                                                                                        |   |   |   |
| Operating expenses                                                                                                          |   |  |   |   |  |
| Selling, general and administrative expenses                                                                                | 18,116 |  |   | 17,836 |  |
| Internal research and development expenses                                                                                  | 1,286 |  |   | 1,088 |  |
| Total operating expenses                                                                                                    | 19,402 |  |   | 18,924 |  |
| Gain on termination of contracts                                                                                            | 1,888 |  |   | 3,123 |  |
|                                                                                                                        |   |   |   |
| Operating loss from continuing operations                                                                                   | (2,835 | ) |   | (9,340 | ) |
|                                                                                                                        |   |   |   |
| Interest expense, net                                                                                                       | (188 | ) |   | (284 | ) |
| Loss on equity investment in joint venture                                                                                  | — |  |   | (1,023 | ) |
| Foreign exchange loss                                                                                                       | (20 | ) |   | (258 | ) |
| Total other expense, net                                                                                                    | (208 | ) |   | (1,565 | ) |
|                                                                                                                        |   |   |   |
| Loss from continuing operations before income tax benefit                                                                   | (3,043 | ) |   | (10,905 | ) |
|                                                                                                                        |   |   |   |
| Income tax benefit - continuing operations                                                                                  | 1,146 |  |   | 2,241 |  |
| Net loss from continuing operations                                                                                         | (1,897 | ) |   | (8,664 | ) |
|                                                                                                                        |   |   |   |
| Loss from discontinued operations before sale of business unit                                                              | (123 | ) |   | (2,105 | ) |
| Gain on sale of business unit                                                                                               | 2,604 |  |   | 7,741 |  |
| Income tax provision - discontinued operations                                                                         | (992 | ) |   | (2,254 | ) |
| Net income from discontinued operations, net of tax                                                                         | 1,489 |  |   | 3,382 |  |
| Net loss                                                                                                                    | $ | (408 | ) |   | $ | (5,282 | ) |
|                                                                                                                        |   |   |   |
| Basic and diluted income (loss) per share:                                                                                  |   |  |   |   |  |
| From continuing operations, net of tax                                                                                      | $ | (0.23 | ) |   | $ | (1.04 | ) |
| From discontinued operations, net of tax                                                                                    | 0.18 |  |   | 0.41 |  |
|     Basic and diluted loss per share                                                                    | $ | (0.05 | ) |   | $ | (0.63 | ) |
|                                                                                                                        |   |   |   |
|                                                                                                                        |   |   |   |
| Weighted average number of common and common equivalent    shares outstanding – basic and diluted | 8,341,356 |  |   | 8,334,304 |  |

----

|                                                                 |
|-----------------------------------------------------------------|
|                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                            |  Common Stock |   | AdditionalPaid-in |   |  Accumulated |   | AccumulatedOtherComprehensive |   |   |
|                                                            | Shares |   | Amount |   | Capital |   | Deficit |   | Income (loss) |   | Total |
|  Balance, December 31, 2008                                | 8,330,688 |  |   | $ | 83 |  |   | $ | 20,774 |  |   | $ | (6,914 | ) |   | $ | (425 | ) |   | $ | 13,518 |  |
| Exercise of stock options                                       | 4,000 |  |   | — |  |   | 24 |  |   | — |  |   | — |  |   | 24 |  |
| Stock-based compensation                                        | — |  |   | — |  |   | 585 |  |   | — |  |   | — |  |   | 585 |  |
| Net unrealized gain on available for sale marketable securities | — |  |   | — |  |   | — |  |   | — |  |   | 659 |  |   | 659 |  |
| Net loss                                                        | — |  |   | — |  |   | — |  |   | (5,282 | ) |   | — |  |   | (5,282 | ) |
|  Balance, December 31, 2009                                | 8,334,688 |  |   | $ | 83 |  |   | $ | 21,383 |  |   | $ | (12,196 | ) |   | $ | 234 |  |   | $ | 9,504 |  |
| Exercise of stock options                                       | 25,445 |  |   | 1 |  |   | 96 |  |   | — |  |   | — |  |   | 97 |  |
| Stock-based compensation                                        | — |  |   | — |  |   | 500 |  |   | — |  |   | — |  |   | 500 |  |
| Net unrealized gain on available for sale marketable securities | — |  |   | — |  |   | — |  |   | — |  |   | 212 |  |   | 212 |  |
| Net loss                                                        | — |  |   | — |  |   | — |  |   | (408 | ) |   | — |  |   | (408 | ) |
|  Balance, December 31, 2010                                | 8,360,133 |  |   | $ | 84 |  |   | $ | 21,979 |  |   | $ | (12,604 | ) |   | $ | 446 |  |   | $ | 9,905 |  |

|                                                                 |
|-----------------------------------------------------------------|
|                                                                 |  |  |  |  |  |  |  |
|                                                            | Years Ended December 31, |
| (in thousands)                                                  | 2010 |   | 2009 |
| Comprehensive loss is calculated as follows:                    |   |   |   |
| Net loss                                                        | $ | (408 | ) |   | $ | (5,282 | ) |
| Net unrealized gain on available for sale marketable securities | 212 |  |   | 659 |  |
| Comprehensive loss                                              | $ | (196 | ) |   | $ | (4,623 | ) |

----

|                                                                                  |
|----------------------------------------------------------------------------------|
|                                                                                  |  |  |  |  |  |  |  |
|                                                                             | For Years Ended December 31, |
|                                                                             | 2010 |   | 2009 |
| Cash flows from operating activities:                                            |   |   |   |
| Net income                                                                       | $ | (408 | ) |   | $ | (5,282 | ) |
| Less: Net income from discontinued operations, net of tax                        | 1,489 |  |   | 3,382 |  |
| Net loss from continuing operations                                              | (1,897 | ) |   | (8,664 | ) |
| Adjustments to reconcile net loss to net cash used in operating activities: |   |  |   |   |  |
| Depreciation and amortization                                                    | 1,689 |  |   | 1,519 |  |
| Loss on equity investment in joint venture                                       | — |  |   | 1,023 |  |
| Deferred tax benefit                                                             | (992 | ) |   | (2,254 | ) |
| Deferred compensation                                                            | 212 |  |   | 659 |  |
| Stock-based compensation                                                         | 500 |  |   | 585 |  |
| Provision (benefit) for accounts receivable reserves                             | (90 | ) |   | 120 |  |
| Provision for inventory reserve                                                  | 265 |  |   | 348 |  |
| Changes in assets and liabilities:                                               |   |   |   |  |
| Restricted cash                                                                  | 1,480 |  |   | 2,666 |  |
| Accounts receivable                                                              | (1,344 | ) |   | 2,088 |  |
| Inventories                                                                      | 9,292 |  |   | (3,982 | ) |
| Deferred cost of goods sold                                                      | 5,570 |  |   | 10,500 |  |
| Deposits, prepaid expenses and other current assets                              | 463 |  |   | 2,483 |  |
| Accounts payable, accrued liabilities and other liabilities                      | (4,862 | ) |   | 3,196 |  |
| Advances on contracts in progress                                                | (12,702 | ) |   | (13,946 | ) |
| Net cash used in operating activities of continuing operations                   | (2,416 | ) |   | (3,659 | ) |
| Net cash used in operating activities of discontinued operations                 | (1,278 | ) |   | (160 | ) |
| Net cash used in operating activities                                            | (3,694 | ) |   | (3,819 | ) |
| Cash flows from investing activities:                                            |   |  |   |   |  |
| Proceeds from dissolution of joint venture                                       | — |  |   | 450 |  |
| Purchase of property and equipment                                               | (817 | ) |   | (622 | ) |
| Increase in intangible and other assets                                          | (165 | ) |   | (294 | ) |
| Net cash used in investing activities of continuing operations                   | (982 | ) |   | (466 | ) |
| Net cash provided by investing activities of discontinued operations             | 2,646 |  |   | 8,627 |  |
| Net cash provided by investing activities                                        | 1,664 |  |   | 8,161 |  |
| Cash flows from financing activities:                                            |   |  |   |   |  |
| Principal payments on capital lease obligations                                  | (39 | ) |   | (13 | ) |
| Principal payments on equipment line of credit                                   | (583 | ) |   | (1,167 | ) |
| Net borrowings (payments) on revolving line of credit                            | (185 | ) |   | (158 | ) |
| Proceeds from exercise of stock options                                          | 97 |  |   | 24 |  |
| Net cash used in financing activities                                            | (710 | ) |   | (1,314 | ) |
|                                                                             |   |   |   |
| Net (decrease) increase in cash and cash equivalents                             | (2,740 | ) |   | 3,028 |  |
| Cash and cash equivalents, beginning of year                                     | 8,999 |  |   | 5,971 |  |
| Cash and cash equivalents, end of year                                           | $ | 6,259 |  |   | $ | 8,999 |  |
| Supplemental disclosures of cash flow information:                               |   |  |   |   |  |
| Interest paid                                                                    | $ | 204 |  |   | $ | 300 |  |
| Interest received                                                                | $ | 16 |  |   | $ | 16 |  |
| Income taxes paid (refunded)                                                     | $ | (241 | ) |   | $ | 135 |  |
| Supplemental disclosures of non-cash flow information:                           |   |   |   |  |
| Property and equipment purchased under capital lease                             | $ | — |  |   | $ | 154 |  |

----

----

|                                                               |
|---------------------------------------------------------------|
|                                                               |  |  |  |  |  |  |  |
|                                                          | Years Ended December 31, |
| (in thousands)                                                | 2010 |   | 2009 |
| Loss from continuing operations                               | $ | (2,835 | ) |   | $ | (9,340 | ) |
| Gain on termination of contracts                              | (1,888 | ) |   | (3,123 | ) |
| Adjusted loss from continuing operations                      | (4,723 | ) |   | (12,463 | ) |
|                                                          |   |   |   |
| Depreciation and amortization                                 | 1,689 |  |   | 1,519 |  |
| Loss on equity investment in joint venture                    | — |  |   | 1,023 |  |
| Deferred compensation                                         | 212 |  |   | 659 |  |
| Deferred rent                                                 | 251 |  |   | 279 |  |
| Stock-based compensation                                      | 500 |  |   | 585 |  |
| Provision for inventory and accounts receivable reserves, net | 175 |  |   | 468 |  |
| Cash loss from continuing operations                          | $ | (1,896 | ) |   | $ | (7,930 | ) |

|     |                             |
|-----|-----------------------------|
| (a) | Principles of Consolidation |

|     |                     |
|-----|---------------------|
| (b) | Revenue Recognition |

----

|     |                           |
|-----|---------------------------|
| (c) | Cash and Cash Equivalents |

|     |                                |
|-----|--------------------------------|
| (d) | Available-for-sale Investments |

|     |                         |
|-----|-------------------------|
| (e) | Fair Value Measurements |

----

|                                          |
|------------------------------------------|
|                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in thousands)                           | Balance of December 31, 2010 |   | Level 1 |   | Level 2 |   | Level 3 |
|                                     |   |   |   |   |   |   |   |
| Cash and short term investments          | $ | 271 |  |   | $ | 271 |  |   | $ | — |  |   | $ | — |  |
| Common Stock                             |   |   |   |   |   |   |   |
|  Basic Materials                    | 79 |  |   | 79 |  |   | — |  |   | — |  |
|   Consumer Goods               | 10 |  |   | 10 |  |   | — |  |   | — |  |
|  Financial                          | 60 |  |   | 60 |  |   | — |  |   | — |  |
|  Healthcare                         | 44 |  |   | 44 |  |   | — |  |   | — |  |
|   Industrial Goods             | 31 |  |   | 31 |  |   | — |  |   | — |  |
|   Services                     | 78 |  |   | 78 |  |   | — |  |   | — |  |
|   Technology                   | 47 |  |   | 47 |  |   | — |  |   | — |  |
| Total Common Stock                       | 349 |  |   | 349 |  |   | — |  |   | — |  |
| Mutual Fund                              |   |   |   |   |   |   |   |
|  Diversified Emerging Markets       | 220 |  |   | — |  |   | 220 |  |   | — |  |
|   Foreign Large Blend          | 128 |  |   | — |  |   | 128 |  |   | — |  |
|   Foreign Large Growth         | 170 |  |   | — |  |   | 170 |  |   | — |  |
|   Foreign Small/Mid Value      | 133 |  |   | — |  |   | 133 |  |   | — |  |
| Value Fund                               | 79 |  |   | — |  |   | 79 |  |   | — |  |
|   Large Growth                 | 459 |  |   | — |  |   | 459 |  |   | — |  |
|   Small Blend  Total           | 211 |  |   | 211 |  |   | — |  |   | — |  |
| Total Mutual Funds                       | 1,400 |  |   | 211 |  |   | 1,189 |  |   | — |  |
| Fixed Income                             |   |   |   |   |   |   |   |
| Domestic                                 | 386 |  |   | — |  |   | 386 |  |   | — |  |
| International                            | 20 |  |   | — |  |   | 20 |  |   | — |  |
| Total Fixed Income                       | 406 |  |   | — |  |   | 406 |  |   | — |  |
| Total available for-sale-investments (1) | $ | 2,426 |  |   | $ | 831 |  |   | $ | 1,595 |  |   | $ | — |  |
| Percent of total                         | 100 | % |   | 34 | % |   | 66 | % |   | — | % |

|           |                                                                                                                                                                                                        |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1)  | Changes in the fair value of available-for-sale investments are recorded in accumulated other comprehensive income, a component of stockholders' equity, in the Company's Consolidated Balance Sheets. |

----

|     |             |
|-----|-------------|
| (f) | Inventories |

|     |                        |
|-----|------------------------|
| (g) | Property and Equipment |

|                                               |
|-----------------------------------------------|
|                                               |  |
| Equipment under capital lease                 | Lesser of 5 years or remaining life of lease |
| Machinery and equipment                       | 5 and 7 years |
| Furniture and fixtures and computer equipment | 3 - 5 years |
| Leasehold improvements                        | Lesser of 10 years or remaining life of lease |

|     |                             |
|-----|-----------------------------|
| (h) | Intangible and Other Assets |

|                 |
|-----------------|
|                 |  |  |
| (in thousands)  | Amortization Expense |
| 2011            | 131 |  |
| 2012            | 120 |  |
| 2013            | 114 |  |
| 2014            | 86 |  |
| 2015            | 74 |  |
| 2016 and future | 45 |  |
|            | 570 |  |

|     |                   |
|-----|-------------------|
| (i) | Long-lived Assets |

----

|     |              |
|-----|--------------|
| (j) | Income Taxes |

|     |          |
|-----|----------|
| (k) | Warranty |

|                              |
|------------------------------|
|                              |  |  |  |
| (in thousands)          |   |  |
| Balance at December 31, 2008 | $ | 495 |  |
| Provision charged to income  | 848 |  |
| Usage                        | (593 | ) |
| Balance at December 31, 2009 | 750 |  |
| Provision charged to income  | 904 |  |
| Usage                        | (760 | ) |
| Balance at December 31, 2010 | $ | 894 |  |

|     |                                                                       |
|-----|-----------------------------------------------------------------------|
| (l) | Internal Research and Development Costs      |

|     |                |
|-----|----------------|
| (m) | Loss Per Share |

----

|     |                             |
|-----|-----------------------------|
| (n) | Comprehensive Income (Loss) |

|     |                          |
|-----|--------------------------|
| (o) | Stock-Based Compensation |

|     |                  |
|-----|------------------|
| (p) | Use of Estimates |

|     |                       |
|-----|-----------------------|
| (q) | Financial Instruments |

|     |                             |
|-----|-----------------------------|
| (r) | Shipping and Handling Costs |

|     |                  |
|-----|------------------|
| (s) | Foreign Currency |

|     |                                    |
|-----|------------------------------------|
| (t) | Equity Investment in Joint Venture |

----

|     |                     |
|-----|---------------------|
| (u) | Segment Information |

|     |                   |
|-----|-------------------|
| (v) | Subsequent Events |

|     |                          |
|-----|--------------------------|
| (w) | New Accounting Standards |

|                                                  |
|--------------------------------------------------|
|                                                  |  |  |  |  |  |  |  |
| (in thousands)                                   | 2010 |   | 2009 |
| Amounts billed                                   | $ | 7,196 |  |   | $ | 5,625 |  |
| Accrued revenue                                  | 258 |  |   | 746 |  |
|                                             | 7,454 |  |   | 6,371 |  |
| Less:  Allowance for doubtful accounts | (130 | ) |   | (481 | ) |
| Net accounts receivable - trade                  | $ | 7,324 |  |   | $ | 5,890 |  |
| Advances on contracts in progress                | $ | 9,010 |  |   | $ | 21,712 |  |

----

|                             |
|-----------------------------|
|                             |  |  |  |  |  |  |  |
| (in thousands)              | 2010 |   | 2009 |
|  Raw materials         | $ | 2,919 |  |   | $ | 2,390 |  |
| Work in process             | 4,262 |  |   | 8,170 |  |
| Finished goods              | 3,751 |  |   | 9,929 |  |
| Net inventory               | $ | 10,932 |  |   | $ | 20,489 |  |
| Deferred cost of goods sold | $ | 1,018 |  |   | $ | 6,588 |  |

|                                           |
|-------------------------------------------|
|                                           |  |  |  |  |  |  |  |
| (in thousands)                            | 2010 |   | 2009 |
| Machinery and equipment                   | $ | 18,884 |  |   | 18,244 |  |
| Furniture fixtures and computer equipment | 4,895 |  |   | 4,765 |  |
| Leasehold improvements                    | 3,644 |  |   | 3,484 |  |
| Construction in progress                  | 229 |  |   | 240 |  |
|                                      | 27,652 |  |   | 26,733 |  |
| Accumulated depreciation and amortization | (23,064 | ) |   | (21,369 | ) |
|                                      | $ | 4,588 |  |   | $ | 5,364 |  |

----

|                                   |
|-----------------------------------|
|                                   |  |  |  |  |  |  |  |
| (in thousands)                    | 2010 |   | 2009 |
| Accrued payroll and payroll taxes | $ | 977 |  |   | $ | 963 |  |
| Accrued professional fees         | 262 |  |   | 222 |  |
| Accrued accounts payable          | 1,353 |  |   | 3,144 |  |
| Accrued other                     | 1,629 |  |   | 2,904 |  |
|                              | $ | 4,221 |  |   | $ | 7,233 |  |

----

|                                                         |
|---------------------------------------------------------|
|                                                         |  |  |  |  |  |  |
|                                                    | Number of Shares |   | WeightedAverageExercise Price |
| Options Outstanding at December 31, 2009                | 781,677 |  |   | $ | 7.10 |  |
| Granted                                                 | 144,000 |  |   | $ | 4.30 |  |
| Exercised                                               | (25,445 | ) |   | $ | 3.77 |  |
| Forfeited                                               | (139,500 | ) |   | $ | 7.78 |  |
| Options Outstanding at December 31, 2010                | 760,732 |  |   | $ | 6.56 |  |
|                                                    |   |   |   |
| Expected to Vest at December 31, 2010              | 234,195 |  |   | $ | 4.63 |  |
|                                                    |   |   |   |
| Options Exercisable at December 31, 2010                | 514,557 |  |   | $ | 6.87 |  |
|                                                    |   |   |   |
| Options Available for Future Grant at December 31, 2010 | 493,800 |  |   |   |  |

----

|                                  |
|----------------------------------|
|                                  |  |  |  |  |
| For the years ended December 31, |   | ExpectedCompensation Expense |
|                             |   | (in thousands) |
| 2011                             |   | $ | 299 |  |
| 2012                             |   | 217 |  |
| 2013                             |   | 111 |  |
| 2014                             |   | 38 |  |
|                             |   | $ | 665 |  |

|                                                |
|------------------------------------------------|
|                                                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                           |   | Options Outstanding |   | Options Exercisable |
|   Range ofExercise Price             |   |  Numberof SharesOutstanding |   | Weighted Average Remaining Contractual Life (Years) |   | Weighted- AverageExercise Price |   |  Aggregate Intrinsic Value |   |  Numberof Shares Exercisable |   | Weighted Average Remaining Contractual Life (Years) |   | Weighted AverageExercise Price |   | Aggregate Intrinsic Value |
| $ 3.49 to $ 3.90                          |   | 101,411 |  |   | 3.35 |  |   | $ | 3.79 |  |   | $ | 143,948 |  |   | 93,911 |  |   | 2.96 |  |   | $ | 3.81 |  |   | $ | 131,123 |  |
| $ 3.91 to $ 4.90                          |   | 222,374 |  |   | 7.49 |  |   | $ | 4.35 |  |   | 191,672 |  |   | 121,874 |  |   | 5.79 |  |   | $ | 4.45 |  |   | 92,807 |  |
| $ 4.91 to $ 8.40                          |   | 265,622 |  |   | 7.41 |  |   | $ | 6.71 |  |   | 405 |  |   | 162,247 |  |   | 6.77 |  |   | $ | 7.05 |  |   | 300 |  |
| $ 8.41 to $ 9.60                          |   | 90,200 |  |   | 6.48 |  |   | $ | 9.41 |  |   | — |  |   | 72,650 |  |   | 6.48 |  |   | $ | 9.40 |  |   | — |  |
|      $ 9.61 to $15.73 |   | 81,125 |  |   | 7.17 |  |   | $ | 12.42 |  |   | — |  |   | 63,875 |  |   | 7.09 |  |   | $ | 12.63 |  |   | — |  |
|                                           |   | 760,732 |  |   | 6.76 |  |   | $ | 6.56 |  |   | $ | 336,025 |  |   | 514,557 |  |   | 5.84 |  |   | $ | 6.87 |  |   | $ | 224,230 |  |

|            |
|------------|
|            |  |  |  |  |  |  |  |  |  |  |
|  Year |   | ExpectedDividend Yield |   | Risk-FreeInterest Rate |   | ExpectedOption Life |   | ExpectedVolatility Factor |
| 2009       |   | — |   | 1.67 | % |   | 4.13 years |   | 79.6 | % |
| 2010       |   | — |   | 1.46 | % |   | 4.29 years |   | 81.1 | % |

----

|                                                                          |
|--------------------------------------------------------------------------|
|                                                                          |  |  |  |  |  |  |  |
| (in thousands)                                                           | 2010 |   | 2009 |
| Income tax benefit – continuing operations at statutory rate       | $ | (1,015 | ) |   | $ | (3,708 | ) |
| Increase (decrease) in valuation allowance related to income tax expense | (335 | ) |   | 1,183 |  |
| State income taxes                                                       | 37 |  |   | 49 |  |
| Permanent differences                                                    | 167 |  |   | 235 |  |
| Income tax benefit – continuing operations                         | (1,146 | ) |   | (2,241 | ) |
| Income tax provision – discontinued operations at statutory rate   | 843 |  |   | 1,916 |  |
| State income taxes – discontinued operations                       | 149 |  |   | 338 |  |
| Income tax provision – discontinued operations                     | 992 |  |   | 2,254 |  |
| Total                                                                    | $ | (154 | ) |   | $ | 13 |  |

|                                              |
|----------------------------------------------|
|                                              |  |  |  |  |  |  |  |
| (in thousands)                               | 2010 |   | 2009 |
| Deferred tax assets:                         |   |   |   |
| Accounts receivable                          | $ | 48 |  |   | $ | 192 |  |
| Accruals                                     | 2,396 |  |   | 3,749 |  |
| Inventories                                  | 210 |  |   | 303 |  |
| Net operating loss carryforwards             | 4,025 |  |   | 2,507 |  |
| General business credit carryforwards        | 222 |  |   | 113 |  |
| Alternative minimum tax credit carryforwards | 268 |  |   | 431 |  |
| Foreign tax credit                           | 38 |  |   | 38 |  |
| Total gross deferred tax assets              | 7,207 |  |   | 7,333 |  |
|                                         |   |   |   |
| Prepaid expenses                             | 214 |  |   | 218 |  |
| Depreciation                                 | 712 |  |   | 745 |  |
| Total gross deferred tax liabilities         | 926 |  |   | 963 |  |
|                                         |   |   |   |
| Valuation allowance                          | 6,281 |  |   | 6,370 |  |
|                                         |   |   |   |
| Net deferred tax assets                      | $ | — |  |   | $ | — |  |

----

|                                                                   |
|-------------------------------------------------------------------|
|                                                                   |  |  |  |  |  |  |  |  |  |  |  |
| (in thousands)                                                    | Unrelated Party Operating Leases |   | Related Party Operating Leases |   | Unrelated Party Capital Leases |
| 2011                                                              | $ | 127 |  |   | $ | 3,419 |  |   | $ | 54 |  |
| 2012                                                              | 115 |  |   | 3,591 |  |   | 41 |  |
| 2013                                                              | 80 |  |   | 3,731 |  |   | 15 |  |
| 2014                                                              |   |   | 3,871 |  |   | 9 |  |
| 2015                                                              |   |   | 3,478 |  |   |   |
| 5 years and thereafter                                            | — |  |   | 4,910 |  |   | — |  |
| Total minimum lease payments                                      | $ | 322 |  |   | $ | 23,000 |  |   | 119 |  |
| Less: amounts represented by interest                             |   |   |   |   | (17 | ) |
| Present value of monthly lease payments                           |   |   |   |   | 102 |  |
| Less: current portion of unrelated party capital lease obligation |   |   |   |   | (44 | ) |
| Long-term portion of unrelated party capital lease obligation     |   |   |   |   | $ | 58 |  |

----

----

|                                                                                                                   |
|-------------------------------------------------------------------------------------------------------------------|
|                                                                                                                   |  |  |  |  |  |
|                                                                                                              | 2010 |   | 2009 |
| Weighted average number of common and common    equivalent shares outstanding – basic                  | 8,341,356 |  |   | 8,334,304 |  |
| Add:  Net additional common shares upon assumed    exercise of common stock options | — |  |   | — |  |
| Weighted average number of common and common    equivalent shares outstanding – diluted | 8,341,356 |  |   | 8,334,304 |  |

----

|                               |
|-------------------------------|
|                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in thousands)                | SpireSolar |   | SpireBiomedical |   | Optoelectronics |   | Corporate |   | TotalCompany |
| December 31, 2010        |   |   |   |   |   |   |   |   |   |
| Net sales and revenues        | $ | 66,858 |  |   | $ | 8,341 |  |   | $ | 4,643 |  |   | $ | — |  |   | $ | 79,842 |  |
| Income (loss) from operations | (2,029 | ) |   | 1,325 |  |   | (2,131 | ) |   | — |  |   | (2,835 | ) |
| Identifiable assets           | 18,515 |  |   | 2,351 |  |   | 3,498 |  |   | 10,221 |  |   | 34,585 |  |
| Capital expenditures          | 29 |  |   | 206 |  |   | 385 |  |   | 197 |  |   | 817 |  |
| Depreciation and amortization | 357 |  |   | 210 |  |   | 735 |  |   | 387 |  |   | 1,689 |  |
| Stock-based compensation      | 133 |  |   | 63 |  |   | 38 |  |   | 266 |  |   | 500 |  |
|                          |   |   |   |   |   |   |   |   |   |
|                          | SpireSolar |   | SpireBiomedical |   | Optoelectronics |   | Corporate |   | TotalCompany |
| December 31, 2009        |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Net sales and revenues        | $ | 57,822 |  |   | $ | 9,148 |  |   | $ | 2,901 |  |   | $ | — |  |   | $ | 69,871 |  |
| Income (loss) from operations | (9,097 | ) |   | 1,119 |  |   | (1,362 | ) |   | — |  |   | (9,340 | ) |
| Identifiable assets           | 32,854 |  |   | 2,688 |  |   | 3,654 |  |   | 14,197 |  |   | 53,393 |  |
| Capital expenditures          | 104 |  |   | 6 |  |   | 317 |  |   | 195 |  |   | 622 |  |
| Depreciation and amortization | 345 |  |   | 178 |  |   | 667 |  |   | 329 |  |   | 1,519 |  |
| Stock-based compensation      | 219 |  |   | 71 |  |   | 39 |  |   | 256 |  |   | 585 |  |

|                     |
|---------------------|
|                     |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in thousands)      | 2010 |   | % |   | 2009 |   | % |
|  United States | $ | 48,793 |  |   | 61 | % |   | $ | 28,798 |  |   | 41 | % |
| Europe/N. Africa    | 14,763 |  |   | 19 | % |   | 15,191 |  |   | 22 | % |
| Asia                | 16,233 |  |   | 20 | % |   | 25,561 |  |   | 37 | % |
| Rest of the world   | 53 |  |   | — |  |   | 321 |  |   | — |  |
|                | $ | 79,842 |  |   | 100 | % |   | $ | 69,871 |  |   | 100 | % |

----

----

----

----

|                                                                                                                                          |
|------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                          |  |  |  |  |  |  |  |
| (in thousands)                                                                                                                           | December 31, 2010 |   | December 31, 2009 |
| Assets of Discontinued Operations and Assets Held for Sale                                                                               |   |   |   |
| Current assets of discontinued operations and assets held for sale                                                                       |   |   |   |
| Accounts receivable – trade, net                                                                                                   | $ | — |  |   | $ | 104 |  |
| Inventories, net                                                                                                                         | — |  |   | 50 |  |
| Total current assets of discontinued operations and assets held for sale                                                                 | — |  |   | 154 |  |
|                                                                                                                                     |   |   |   |
| Property and equipment, net                                                                                                              | — |  |   | 9 |  |
|                                                                                                                                     |   |   |   |
| Intangible and other assets, net                                                                                                         | — |  |   | 49 |  |
|           Total non-current assets of discontinued operations and assets held for sale | — |  |   | 58 |  |
|           Total assets of discontinued operations and assets held for sale             | $ | — |  |   | $ | 212 |  |
|  Liabilities of Discontinued Operations                                                                                             |   |  |   |   |  |
| Current liabilities of discontinued operations                                                                                      |   |  |   |   |  |
| Accounts payable                                                                                                                         | $ | 257 |  |   | $ | 593 |  |
| Accrued liabilities                                                                                                                      | 109 |  |   | 1,089 |  |
| Total current liabilities of discontinued operations                                                                                     | 366 |  |   | 1,682 |  |
| Total liabilities of discontinued operations                                                                                             | $ | 366 |  |   | $ | 1,682 |  |

|                                                                |
|----------------------------------------------------------------|
|                                                                |  |  |  |  |  |  |  |
|                                                           | Year Ended December 31, |
| (in thousands)                                                 | 2010 |   | 2009 |
| Net sales and revenues                                         | $ | 1,656 |  |   | $ | 2,387 |  |
| Gross margin                                                   | $ | (136 | ) |   | $ | 363 |  |
| Loss from discontinued operations before sale of business unit | $ | (123 | ) |   | $ | (2,105 | ) |
| Gain on sale of business unit                                  | 2,604 |  |   | 7,741 |  |
| Income tax provision                                           | (992 | ) |   | (2,254 | ) |
| Net income from discontinued operations, net of tax       | $ | 1,489 |  |   | $ | 3,382 |  |

----

----

|         |                                                                                                                                                                 |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; |

|         |                                                                                                                                                                                                                                                                                                                                        |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made in accordance with authorizations of management and directors of the company; and |

|         |                                                                                                                                                                                                              |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company's assets that could have a material effect on the financial statements. |

|         |                                                                                                                                                                                                                                                                                    |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | We hired a Corporate Controller during April 2009, who was promoted to Chief Accounting Officer in December 2009 and then to Chief Financial Officer and Treasurer in April 2010, who added accounting knowledge, experience and an understanding of the application of U.S. GAAP. |

|         |                                                                                                                                                                                                                                                                                                                                        |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | In March 2010, we hired a Corporate Controller to fill the position previously held by the Chief Financial Officer.  Also in 2010, we hired an Accounting Supervisor to assume the duties of the Assistant Controller who retired in 2010, and we hired a Staff Accountant to assist with revenue recognition and financial reporting. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | New policies and procedures have been created and implemented, coupled with the review and modification of existing policies and procedures, as part of our documentation of internal control over financial reporting.  We have implemented a new financial reporting application to aid in SEC reporting which has increased staff efficiencies and accuracy of information.  We have also implemented an inventory cycle counting program, improved our monthly financial closing procedures and account reconciliation process which allows us to adhere to the monthly and quarterly close timelines.  Management believes these new controls, policies and procedures, training of key personnel and testing of these key controls was effective in strengthening our internal control over financial reporting. |

|         |                                                                                                                                                                                                                                                                                                                      |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The Company has implemented procedures to ensure documentation of monthly reviews of financial statements, cash flows and variance analysis.  Additionally, pricing variances and inventory valuation processes have been implemented to ensure the financial statements are presented in accordance with U.S. GAAP. |

|         |                                                                                                                                                                                                                                        |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | We purchased a network upgrade and additional servers during June 2009 and May 2010 to ensure the IT department has the adequate tools necessary to mitigate an industry-standard set of risk statements following guidelines outlined |

----

----

----

|      |
|------|
|      |  |  |
| 2.1  |  | Asset Purchase Agreement, dated as of July 31, 2007, by and between the Company and Gloria Solar Co., Ltd., incorporated by reference to Exhibit 2.1 to the Company’s Form 8-K filed with the Securities and Exchange Commission (the “SEC”) on September 10, 2007 *+ |
| 2.2  |  | Contribution Agreement, dated as of July 31, 2007, by and among the Company, Gloria Solar Co., Ltd. and Gloria Solar (Delaware) Company, Ltd., incorporated by reference to Exhibit 2.2 to the Company’s Form 8-K filed with the SEC on September 10, 2007 *+ |
| 2.3  |  | Gloria Spire Solar LLC Liquidation Agreement, dated May 29, 2009, by and among Gloria Solar (Delaware) Company, Ltd., Gloria Solar Co., Ltd., Gloria Spire Solar, LLC and Spire Corporation, incorporated by reference to Exhibit 2.3 to the Company’s 2009 Form 10-Q for the quarter ended June 30, 2009. + |
| 2.4  |  | First Amendment to the Gloria Spire Solar, LLC Liquidation Agreement, dated June 2, 2009, by and among Gloria Solar (Delaware) Company, Ltd., Gloria Solar Co., Ltd., Gloria Spire Solar, LLC and Spire Corporation, incorporated by reference to Exhibit 2.4 to the Company’s 2009 Form 10-Q for the quarter ended June 30, 2009. + |
| 2.5  |  | Asset Purchase Agreement, dated September 4, 2009, by and among Bard Access Systems, Inc. and Spire Biomedical, Inc. and Spire Corporation, incorporated by reference to Exhibit 2.5 to the Company’s 2009 Form 10-Q for the quarter ended September 30, 2009+ |
| 2.6  |  | Extension dated September 25, 2009 of Asset Purchase Agreement, dated September 4, 2009, by and among Bard Access Systems, Inc. and Spire Biomedical, Inc. and Spire Corporation, incorporated by reference to Exhibit 2.6 to the Company’s 2009 Form 10-Q for the quarter ended September 30, 2009 |
| 2.7  |  | Extension dated October 30, 2009 of Asset Purchase Agreement, dated September 4, 2009, by and among Bard Access Systems, Inc. and Spire Biomedical, Inc. and Spire Corporation, incorporated by reference to Exhibit 2.7 to the Company’s 2009 Form 10-Q for the quarter ended September 30, 2009 |
| 2.8  |  | Extension dated November 30, 2009 of Asset Purchase Agreement, dated September 4, 2009, by and among Bard Access Systems, Inc. and Spire Biomedical, Inc. and Spire Corporation, incorporated by reference to Exhibit 2.8 to the Company’s Form 8-K filed with the SEC on December 18, 2009 |
| 2.9  |  | Amendment dated December 14, 2009 of Asset Purchase Agreement, dated September 4, 2009, by and among Bard Access Systems, Inc. and Spire Biomedical, Inc. and Spire Corporation, incorporated by reference to Exhibit 2.9 to the Company’s Form 8-K filed with the SEC on December 18, 2009+ |
| 3.1  |  | Articles of Organization as amended, incorporated by reference to Exhibit 3(a) to the Company’s Form 10-QSB for the quarter ended June 30, 1997 |
| 3.2  |  | By-Laws, as amended, incorporated by reference to Exhibit 3(b) to the Company's Form 10-K for the year ended December 31, 1989 |
| 10.1 |  | Employment Agreement with Roger G. Little dated as of January 1, 2002, incorporated by reference to Exhibit 10(e) to the Company's Form 10-KSB for the year ended December 31, 2001  (“2001 10-KSB”) |
| 10.2 |  | Amendment No. One dated November 18, 2004 to Employment Agreement for Roger G. Little, incorporated by reference to Exhibit 10(m) to the Company’s 2004 Form 10-KSB |
| 10.3 |  | Spire Corporation 1996 Equity Incentive Plan, incorporated by reference to Appendix A to the Company’s Proxy Statement dated April 15, 2004 |
| 10.4 |  | Spire Corporation 2007 Stock Equity Plan, incorporated by reference to Exhibit 4.1 to the Company’s Form S-8 filed with the Securities and Exchange Commission on June 5, 2007 |
| 10.5 |  | Spire Corporation 401(k) Profit Sharing Plan, incorporated by reference to Exhibit 10(h) to the Company’s Form 10-KSB for the year ended December 31, 2003 (“2003 10-KSB”) |
| 10.6 |  | Trust Agreement dated April 1, 2004 between the Company and Riggs Bank N.A. as Trustee of the Company’s 401(k) Profit Sharing Plan, incorporated by reference to Exhibit 10(1) to the Company’s Form 10-KSB for the year ended December 31, 2004 (“2004 10-KSB”) |
| 10.7 |  | Amendment Number Four to the Spire Corporation 401(k) Profit Sharing Plan dated November 21, 2005, incorporated by reference to Exhibit 10(p) to the Company’s 2005 Form 10-KSB |
| 10.8 |  | Amendment Number Five to the Spire Corporation 401(k) Profit Sharing Plan dated December 22, 2006, incorporated by reference to Exhibit 10(u) to the Company’s 2006 Form 10-KSB |
| 10.9 |  | Manufacturing Agreement, dated August 29, 2006, by and between Bandwidth Semiconductor, LLC, a wholly owned subsidiary of Spire and Principia Lightworks, Inc., incorporated by reference to Exhibit 10(s) to the Company’s 2006 Form 10-QSB for the quarter ended September 30, 2006 * |

----

|       |
|-------|
|       |  |  |
| 10.10 |  | Operating Agreement of Gloria Spire Solar, LLC, dated July 31, 2007, by and among the Company, Gloria Solar (Delaware) Company, Ltd. and Gloria Spire Solar, LLC, incorporated by reference to Exhibit 10(x) to the Company’s Form 8-K filed with the SEC on September 10, 2007 * |
| 10.11 |  | Lease Agreement, dated September 1, 2008, between Roger G. Little, Trustee of SPI-Trust, and Spire Corporation, incorporated by reference to Exhibit 10(ae) to the Company’s Form 8-K filed with the SEC on August 29, 2008. |
| 10.12 |  | Lease Agreement, dated November 30, 2007, between Roger G. Little, Trustee of SPI-Trust, and Spire Corporation (lease of premises, approximately 144,230 sq. ft.), incorporated by reference to Exhibit 10(y) to the Company’s Form 8-K filed with the SEC on December 6, 2007 |
| 10.13 |  | First Amendment to Lease Agreement, dated September 17, 2010, between Roger G. Little, Trustee of SPI-Trust, and Spire Corporation (lease of premises, approximately 144,230 sq. ft.), incorporated by reference to Exhibit 10(ay) to the Company’s Form 8-K filed with the SEC on September 22, 2010. |
| 10.14 |  | Amended and Restated Deferred Compensation Plan with Roger G. Little dated as of January 1, 2005, incorporated by reference to Exhibit 10(z) to the Company’s 2008 Form 10-Q for the quarter ended March 31, 2008. |
| 10.15 |  | Loan and Security Agreement, dated May 25, 2007, among Spire Corporation, Bandwidth Semiconductor, LLC and Silicon Valley Bank, incorporated by reference to Exhibit 10(w) to the Company’s 2007 Form 10-Q for the quarter ended June 30, 2007 |
| 10.16 |  | First Loan Modification Agreement, dated March 31, 2008, to the Loan and Security Agreement, dated May 25, 2007, among Spire Corporation, Bandwidth Semiconductor, LLC and Silicon Valley Bank, incorporated by reference to Exhibit 10(aa) to the Company’s 2008 Form 10-Q for the quarter ended March 31, 2008. |
| 10.17 |  | Loan and Security Agreement, dated March 31, 2008, among Spire Corporation, Spire Solar, Inc., Spire Biomedical, Inc., Spire Semiconductor, LLC and Silicon Valley Bank, incorporated by reference to Exhibit 10(ab) to the Company’s 2008 Form 10-Q for the quarter ended March 31, 2008. |
| 10.18 |  | Second Loan Modification Agreement, dated May 13, 2008, to the Loan and Security Agreement, dated May 25, 2007, among Spire Corporation, Bandwidth Semiconductor, LLC and Silicon Valley Bank, incorporated by reference to Exhibit 10(ac) to the Company’s 2008 Form 10-Q for the quarter ended June 30, 2008. |
| 10.19 |  | Waiver and First Loan Modification Agreement, dated May 13, 2008, to Loan and Security Agreement, dated March 31, 2008, among Spire Corporation, Spire Solar, Inc., Spire Biomedical, Inc., Spire Semiconductor, LLC and Silicon Valley Bank, incorporated by reference to Exhibit 10(ad) to the Company’s 2008 Form 10-Q for the quarter ended June 30, 2008. |
| 10.20 |  | Amended and Restated Loan and Security Agreement, dated June 22, 2009, among Spire Corporation, Spire Solar, Inc., Spire Biomedical, Inc., Spire Semiconductor, LLC and Silicon Valley Bank, incorporated by reference to Exhibit 10(af) to the Company’s 2009 Form 10-Q for the quarter ended June 30, 2009. |
| 10.21 |  | Export-Import Bank Loan and Security Agreement, dated June 22, 2009, among Spire Corporation, Spire Solar, Inc., Spire Biomedical, Inc., Spire Semiconductor, LLC and Silicon Valley Bank, incorporated by reference to Exhibit 10(ag) to the Company’s 2009 Form 10-Q for the quarter ended June 30, 2009. |
| 10.22 |  | Waiver Agreement, dated August 13, 2009, related to the Amended and Restated Loan and Security Agreement, dated June 22, 2009, among Spire Corporation, Spire Solar, Inc., Spire Biomedical, Inc., Spire Semiconductor, LLC and Silicon Valley Bank, incorporated by reference to Exhibit 10(ah) to the Company’s 2009 Form 10-Q for the quarter ended September 30, 2009. |
| 10.23 |  | Second Amended and Restated Loan and Security Agreement, dated November 16, 2009, among Spire Corporation, Spire Solar, Inc., Spire Biomedical, Inc., Spire Semiconductor, LLC and Silicon Valley Bank, incorporated by reference to Exhibit 10(au) to the Company’s 2010 Form 10-Q for the quarter ended March 31, 2010. |
| 10.24 |  | Amended and Restated Export-Import Bank Loan and Security Agreement, dated November 16, 2009, among Spire Corporation, Spire Solar, Inc., Spire Biomedical, Inc., Spire Semiconductor, LLC and Silicon Valley Bank, incorporated by reference to Exhibit 10(av) to the Company’s 2010 Form 10-Q for the quarter ended March 31, 2010. |
| 10.25 |  | First Loan Modification Agreement (Domestic), dated June 15, 2010, among Spire Corporation, Spire Solar, Inc., Spire Biomedical, Inc., Spire Semiconductor, LLC and Silicon Valley Bank, incorporated by reference to Exhibit 10(aw) to the Company’s 2010 Form 10-Q for the quarter ended June 30, 2010. |
| 10.26 |  | First Loan Modification Agreement (Exim), dated June 15, 2010, among Spire Corporation, Spire Solar, Inc., Spire Biomedical, Inc., Spire Semiconductor, LLC and Silicon Valley Bank, incorporated by reference to Exhibit 10(ax) to the Company’s 2010 Form 10-Q for the quarter ended June 30, 2010. |
| 10.27 |  | Solicitation/Contract/Order for Commercial Items, dated November 28, 2008, by and between Spire Corporation and Federal Prison Industries, UNICOR, incorporated by reference to Exhibit 10(ap) to the Company’s 2008 Form 10-K/A for the year ended December 31, 2008. * |
| 10.28 |  | Amendment of Solicitation/Modification of Contract MOD01 to Solicitation/Contract/Order for Commercial Items, dated April 20, 2009, by and between Spire Corporation and Federal Prison Industries, UNICOR, incorporated by reference to Exhibit 10(aq) to the Company’s 2008 Form 10-K/A for the year ended December 31, 2008. * |
| 10.29 |  | Amendment of Solicitation/Modification of Contract MOD02 to Solicitation/Contract/Order for Commercial Items, dated June 8, 2009, by and between Spire Corporation and Federal Prison Industries, UNICOR, incorporated by reference to Exhibit 10(ar) to the Company’s 2008 Form 10-K/A for the year ended December 31, 2008. * |

----

|       |
|-------|
|       |  |  |
| 10.30 |  | Amendment of Solicitation/Modification of Contract MOD03 to Solicitation/Contract/Order for Commercial Items, dated September 8, 2009, by and between Spire Corporation and Federal Prison Industries, UNICOR, incorporated by reference to Exhibit 10(as) to the Company’s 2008 Form 10-K/A for the year ended December 31, 2008. * |
| 10.31 |  | Amendment of Solicitation/Modification of Contract MOD04 to Solicitation/Contract/Order for Commercial Items, dated January 8, 2010, by and between Spire Corporation and Federal Prison Industries, UNICOR, incorporated by reference to Exhibit 10(at) to the Company’s 2010 Form 10-Q for the quarter ended March 31, 2010.* |
| 10.32 |  | Amendment of Solicitation/Modification of Contract MOD05 to Solicitation/Contract/Order for Commercial Items, with an effective date of June 15, 2010, by and between Spire Corporation and Federal Prison Industries, UNICOR, incorporated by reference to Exhibit 10(az) to the Company’s 2010 Form 10-Q for the quarter ended September 30, 2010.* |
| 10.33 |  | Amendment of Solicitation/Modification of Contract MOD06 to Solicitation/Contract/Order for Commercial Items, with an effective date of October 01, 2010, by and between Spire Corporation and Federal Prison Industries, UNICOR, incorporated by reference to Exhibit 10(aaa) to the Company’s 2010 Form 10-Q for the quarter ended September 30, 2010.* |
| 10.34 |  | Purchase and Sale Agreement for 60MW Solar Cell Production Line, dated August 26, 2009, by and between Spire Corproation and Uni-CHEM Co., Ltd., incorporated by reference to Exhibit 10(ai) to the Company's 2009 Form 10-Q for the quarter ended September 30, 2009 |
| 10.35 |  | Purchase and Sale Agreement for 50MW Solar Module Production Line, dated August 26, 2009, by and between Spire Corporation and Uni-CHEM Co., Ltd., incorporated by reference to Exhibit 10(aj) to the Company’s 2009 Form 10-Q for the quarter ended September 30, 2009. * |
| 10.36 |  | Project Management Agreement for Utilities & Infrastructure Supply for Spire Cell and Module Line, dated August 26, 2009, by and between Spire Corporation and Uni-CHEM Co., Ltd., incorporated by reference to Exhibit 10(ak) to the Company’s 2009 Form 10-Q for the quarter ended September 30, 2009. * |
| 10.37 |  | Memorandum of Agreement, dated August 26, 2009, between Spire Corporation and Uni-CHEM Co., Ltd., incorporated by reference to Exhibit 10(al) to the Company’s 2009 Form 10-Q for the quarter ended September 30, 2009. |
| 10.38 |  | Amendment No. 1 to Purchase and Sale Agreement for 60MW Solar Cell Production Line, dated September 17, 2009, between Spire Corporation and Uni-CHEM Co., Ltd., incorporated by reference to Exhibit 10(am) to the Company’s 2009 Form 10-Q for the quarter ended September 30, 2009. |
| 10.39 |  | Amendment No. 1 to Purchase and Sale Agreement for 50MW Solar Module Production Line, dated September 17, 2009, between Spire Corporation and Uni-CHEM Co., Ltd., incorporated by reference to Exhibit 10(an) to the Company’s 2009 Form 10-Q for the quarter ended September 30, 2009. |
| 10.40 |  | Amendment No. 1 to Memorandum of Agreement, dated September 17, 2009, between Spire Corporation and Uni-CHEM Co., Ltd., incorporated by reference to Exhibit 10(ao) to the Company’s 2009 Form 10-Q for the quarter ended September 30, 2009. |
| 14    |  | Code of Business Conduct and Ethics incorporated by reference to Exhibit 14 to the 2003 10-KSB |
| 21    |  | Subsidiaries of the Registrant, incorporated by reference to Exhibit 21 to the 2003 10-KSB |
| 23.1  |  | Consent of Independent Registered Public Accounting Firm (McGladrey & Pullen, LLP) (filed herewith) |
| 23.2  |  | Consent of Independent Registered Public Accounting Firm (Caturano and Company, Inc.) (filed herewith) |
| 31.1  |  | Certification of the Chairman of the Board, Chief Executive Officer and President pursuant to §302 of the Sarbanes-Oxley Act of 2002 (filed herewith) |
| 31.2  |  | Certification of the Chief Financial Officer pursuant to §302 of the Sarbanes-Oxley Act of 2002 (filed herewith) |
| 32.1  |  | Certification of the Chairman of the Board, Chief Executive Officer and President pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002 (filed herewith) |
| 32.2  |  | Certification of the Chief Financial Officer pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002 (filed herewith) |

|   |
|---|
|   |  |
| * | Portions of this Exhibit have been omitted pursuant to a grant of confidential treatment. |
| + | We agree to furnish supplementally to the SEC a copy of any omitted schedule or exhibit to this agreement upon request by the SEC. |

----

|        |
|--------|
|        |  |  |  |  |
|   |   | SPIRE CORPORATION |   |
|   |   |   |   |   |
| Date:  | January 3, 2012 | By: | /s/ Roger G. Little |   |
|   |   |   | Roger G. Little |   |
|   |   |   | Chairman of the Board,Chief Executive Officer and President |   |

|                             |
|-----------------------------|
|                             |  |  |  |  |
| Signature                   |   | Title |   | Date |
|                        |   |   |   |   |
| /s/ Roger G. Little         |   | Chairman of the Board,Chief Executive Officer and President |   | January 3, 2012 |
| Roger G. Little             |   | (Principal Executive Officer) |   |   |
|                        |   |   |   |   |
|                        |   |   |   |   |
| /s/ Robert S. Lieberman     |   | Chief Financial Officer and Treasurer |   | January 3, 2012 |
| Robert S. Lieberman         |   | (Principal Financial Officer and Principal Accounting Officer) |   |   |
|                        |   |   |   |   |
| /s/ Udo Henseler            |   | Director |   | January 3, 2012 |
| Udo Henseler                |   |   |   |   |
|                        |   |   |   |   |
| /s/ David R. Lipinski       |   | Director |   | January 3, 2012 |
| David R. Lipinski           |   |   |   |   |
|                        |   |   |   |   |
| /s/ Mark C. Little          |   | Chief Executive Officer, Spire Biomedical and Director |   | January 3, 2012 |
| Mark C. Little              |   |   |   |   |
|                        |   |   |   |   |
| /s/ Michael J. Magliochetti |   | Director |   | January 3, 2012 |
| Michael J. Magliochetti     |   |   |   |   |
|                        |   |   |   |   |
| /s/ Guy L. Mayer            |   | Director |   | January 3, 2012 |
| Guy L. Mayer                |   |   |   |   |
|                        |   |   |   |   |
| /s/ Roger W. Redmond        |   | Director |   | January 3, 2012 |
| Roger W. Redmond            |   |   |   |   |

----

|         |
|---------|
|         |  |
| Exhibit | Description |
| 23.1    | Consent of Independent Registered Public Accounting Firm (McGladrey & Pullen, LLP) (filed herewith) |
|    |   |
| 23.2    | Consent of Independent Registered Public Accounting Firm (Caturano and Company, Inc.) (filed herewith) |
|    |   |
| 31.1    | Certification of the Chairman of the Board, Chief Executive Officer and President pursuant to §302 of the Sarbanes-Oxley Act of 2002 (filed herewith) |
|    |   |
| 31.2    | Certification of the Chief Financial Officer pursuant to §302 of the Sarbanes-Oxley Act of 2002 (filed herewith) |
|    |   |
| 32.1    | Certification of the Chairman of the Board, Chief Executive Officer and President pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002 (filed herewith) |
|    |   |
| 32.2    | Certification of the Chief Financial Officer pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002 (filed herewith) |