| Delaware                                                 |           | 65-0774638          |
|----------------------------------------------------------|----------------|---------------------|
| (State or other jurisdiction of                          |           | (I.R.S. Employer    |
| incorporation organization)                              |           | Identification No.) |
|                                                     |           |                |
| 3601 Clover Lane                                         |           |                |
| New Castle, Pennsylvania                                 |           | 16105               |
| (Address of principal executive offices)                 |           | (Zip Code)          |
|                                                     |           |                |
| Registrant’s telephone number, including area code | (724) 654-9300 |

| Large accelerated filer  ̈ | Accelerated filer  ̈    |
|--------------------------------|-----------------------------|
| Non-accelerated filer  ̈   | Smaller reporting company x |

|           |   | Shares Outstanding |
|----------------|--------|--------------------|
| Title of Class |   | March 1, 2011      |
| Common Stock   |   | 85,453,302         |

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Table of Contents

| PART III |                                                                                            |   |
|----------|-------------------------------------------------------------------------------------------------|--------|
|     |                                                                                            |   |
| Item 10. | Directors, Executive Officers and Corporate Governance.                                         | 3      |
|     |                                                                                            |   |
| Item 11. | Executive Compensation.                                                                         | 9      |
|     |                                                                                            |   |
| Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. | 15     |
|     |                                                                                            |   |
| Item 13. | Certain Relationships and Related Transactions, and Director Independence.                      | 17     |
|     |                                                                                            |   |
| Item 14. | Principal Accountant Fees and Services.                                                         | 18     |
|     |                                                                                            |   |
| PART IV  |                                                                                            |   |
|     |                                                                                            |   |
| Item 15. | Exhibits.                                                                                       | 19     |

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PART III

Item 10 Directors, Executive Officers and Corporate Governance

| Name                      |   | Age    |   | Position |
|---------------------------|--------|--------|--------|----------|
| Thomas Granville          |   |   | 66     |     | Chief Executive Officer and Director |
| Howard K. Schmidt, Ph. D. |   |   | 52     |     | Director |
| Michael Kishinevsky       |   |   | 45     |     | Director |
| Glenn Patterson           |   |   | 57     |     | Director |
| Robert G. Averill         |   |   | 70     |     | Director |
| D. Walker Wainwright      |   |   | 60     |     | Director |
| David Anthony             |   |   | 50     |     | Director |

| Name             |   | Age    |   | Position |
|------------------|--------|--------|--------|----------|
| Charles R. Trego |   |   | 60     |     | Chief Financial Officer |
| Philip S. Baker  |   |   | 63     |     | Chief Operating Officer |

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| Name                      |   | Age    |   | Position |
|---------------------------|--------|--------|--------|----------|
| Thomas Granville          |   |   | 66     |     | Chief Executive Officer and Director |
| Howard K. Schmidt, Ph. D. |   |   | 52     |     | Director |
| Michael Kishinevsky       |   |   | 45     |     | Director |
| Glenn Patterson           |   |   | 57     |     | Director |
| Robert G. Averill         |   |   | 70     |     | Director |
| D. Walker Wainwright      |   |   | 60     |     | Director |
| David Anthony             |   |   | 50     |     | Director |

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| Name             |   | Age    |   | Position |
|------------------|--------|--------|--------|----------|
| Charles R. Trego |   |   | 60     |     | Chief Financial Officer |
| Philip S. Baker  |   |   | 63     |     | Chief Operating Officer |

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Item 11 Executive Compensation

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|                    |   |   |   |   |    |   |   |   | Stock        |   | Option |   | All Other |    | Total        |    |
|------------------------------|--------|--------|--------|--------|---------|--------|--------|--------|--------------|--------|--------|--------|----------------|---------|--------------|---------|
| Name and Principal |   |   |   | Salary |    |   | Bonus  |   | Awards       |   | Awards |   | Compensation   |    | Compensation |    |
| Position                     |   | Year   |   | ($)(1) |    |   | ($)(2) |   | ($) (3) |   | ($)(3) |   | ($)(4)         |    | ($)          |    |
| Thomas Granville             |   |   |   |   |    |   |   |   |         |   |   |   |           |    |         |    |
| CEO and Director (5)         |   | 2010   |   |   | 350,708 |   |   |   | 270,000      |   |   |   |           | 113,112 |         | 33,653  |   | 767,473 |   |
| Thomas Granville             |   |   |   |   |    |   |   |   |         |   |   |   |           |    |         |    |   |   |   |
| CEO and Director (5)         |   | 2009   |   |   | 324,000 |   |   |   |         |   |   |   |           |    |         | 23,458  |   | 347,458 |   |
| Charles R. Trego             |   |   |   |   |    |   |   |   |         |   |   |   |           |    |         |    |   |   |   |
| CFO                          |   | 2010   |   |   | 161,827 |   |   |   |         |   |   |   |           | 185,364 |         | 38,323  |   | 385,514 |   |
| Philip S. Baker              |   |   |   |   |    |   |   |   |         |   |   |   |           |    |         |    |   |   |   |
| COO                          |   | 2010   |   |   | 143,702 |   |   |   |         |   |   |   |           | 160,884 |         | 76,743  | 2010 | 381,329 |   |
| Edward Buiel (7)             |   |   |   |   |    |   |   |   |         |   |   |   |           |    |         |    |   |   |   |
| Vice President and CTO       |   | 2010   |   |   | 80,308  |   |   |   |         |   |   |   |           |    |         | 454,262 |   | 534,570 |   |
| Edward Buiel (7)             |   |   |   |   |    |   |   |   |         |   |   |   |           |    |         |    |   |   |   |
| Vice President and CTO       |   | 2009   |   |   | 180,000 |   |   |   |         |   |   |   |           |    |         | 18,230  |   | 198,230 |   |
| Donald Hillier               |   |   |   |   |    |   |   |   |         |   |   |   |           |    |         |    |   |   |   |
| CFO (6)                      |   | 2010   |   |   | 20,192  |   |   |   |         |   |   |   |           |    |         | 41,119  |   | 61,311 |   |
| Donald Hillier               |   |   |   |   |    |   |   |   |         |   |   |   |           |    |         |    |   |   |   |
| CFO (6)                      |   | 2009   |   |   | 150,000 |   |   |   |         |   |   |   |           |    |         | 19,643  |   | 169,643 |   |

| 1. | Salaries are presented as the contractual amount paid during 2010. |
|----|--------------------------------------------------------------------|

| 2. | Discretionary bonuses are not made pursuant to any specific bonus plan. Bonuses cited were awarded and paid in 2010. |
|----|----------------------------------------------------------------------------------------------------------------------|

| 3. | Stock and option awards were granted pursuant to the individual employment contracts. Options are valued using the Black-Scholes-Merton option pricing model. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | Other compensation includes Company perquisites relating to pre and post-employment consulting contracts, severance payments, auto allowance, personal use of company cars, accrued vacation payments, moving expenses, gross–ups on stock awards, other earned compensation, as well as healthcare premiums paid under the group health plan. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | During 2009, $ 6,231 of the compensation reported to Mr. Granville was remitted to Gallagher Elevator Co. (Gallagher) pursuant to his 2005 employment contract. Remaining payments were remitted directly to Mr. Granville through our payroll department. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | Mr. Hillier joined the Company on June 19, 2008. Salary and other compensation cited for 2008 reflects the apportionment of these expenses based on his dates of service for that year. Mr. Hillier served as our chief financial officer throughout fiscal year 2009 and was terminated on February 5, 2010. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7. | Dr. Edward Buiel. On June 23, 2008, the Company entered into an Executive Employment Agreement with Dr. Edward Buiel as Vice President and Chief Technology Officer, which terminated on May 31, 2010. Upon expiration of his status as employee, 50,000 shares of restricted stock were forfeited pursuant to the terms of his 2008 employment agreement. On June 7, 2010 the Company agreed to engage Dr. Buiel as an interim independent contractor with compensation at $10,000 per week, plus travel expenses to and from all work sites, meals, administrative expenses, other travel related expenses, and health care benefits through December 31, 2010. Dr. Buiel is currently working as a consultant to the Company on a project basis. There is no formal consulting agreement in place, and Dr. Buiel’s compensation is determined on a project specific basis. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | Thomas Granville. On June 29, 2010, the Company entered into an Executive Employment Agreement with Thomas Granville as Chief Executive Officer. Pursuant to this agreement, Mr. Granville receives an annual salary of $380,000, and an annual car allowance of $9,000 for the period commencing June 29, 2010, and terminating June 30, 2013. Mr. Granville’s base salary is subject to annual review, and such salary is subject to renegotiation on the basis of Mr. Granville’s and the Company’s performance. In addition, Mr. Granville received a signing bonus of $270,000 and was paid on July 9, 2010. The Company also granted Mr. Granville an option to purchase 360,000 shares of our common stock at a price of $1.50 per share at a vesting rate of 10,000 shares per month through the term of the agreement. Mr. Granville is eligible to participate in any executive compensation plans adopted by the shareholders of the Company and the Company's standard employee benefit programs. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Charles R. Trego. On April 1, 2010, the Company entered into an Executive Employment Agreement with Charles R. Trego as Chief Financial Officer. Under the terms of his employment agreement, which has a term of three years (and thus terminates on March 31, 2013), Mr. Trego receives an annual salary of $225,000, which is subject to review after the initial six month term of the agreement and annually thereafter, an annual car allowance of $9,000, bonuses as determined by the compensation committee, and a 5-year option to purchase 265,000 shares of our common stock at a price of $1.50 per share. 27,000 options shall vest upon execution of this contract and, beginning in June 2010, 7,000 options will vest monthly through the remaining 34 months of this agreement. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Philip S. Baker. On April 1, 2010, the Company entered into an Executive Employment Agreement with Philip S. Baker as Chief Operating Officer. Under the terms of his employment agreement, which has a term of three years (and thus terminates on March 31, 2013), Mr. Baker receives an annual salary of $199,800,which is subject to review after the initial six month term of the agreement and annually thereafter, an annual car allowance of $6,000, and a 5-year option to purchase 230,000 shares of our common stock at a price of $1.50 per share, of which 26,000 options shall vest upon execution of this contract and, beginning in June, 2010, 6,000 options will vest monthly through the remaining 34 months of this agreement. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| WarrantSeries            |   | Number ofWarrants |       |   | ExercisePrice |   |   | AnticipatedProceeds | Expiration Date |
|--------------------------|--------|-------------------|------------|--------|---------------|--------|--------|---------------------|-----------------|
| Series V Warrants        |   |              | 680,000    |   |          | $      | 4.00   |                |            | $ | 2,720,000 |   | December 31, 2011 |
| 2007 Bridge Warrants     |   |              | 183,755    |   |          |   | 2.35   |                |            |   | 431,824 |   | December 31, 2012 |
| 2008 Conversion-Warrants |   |              | 580,940    |   |          |   | 2.60   |                |            |   | 1,510,444 |   | June 29, 2013 |
| 2008 Quercus             |   |              | 10,000,000 |   |          |   | 0.75   |                |            |   | 7,500,000 |   | June 29, 2013 |
| 2008 Derivatives         |   |              | 1,085,714  |   |          |   | 0.57   |                |            |   | 618,857 |   | June 29, 2013 |
| 2009 Bridge Warrants     |   |              | 45,661     |   |          |   | 2.00   |                |            |   | 91,322 |   | August 12, 2014 |
| Total                    |   |              | 12,576,070 |   |          |   |   |                |            | $ | 12,872,447 |   |   |

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|                                          |   | Vested Option Grants |      | Unvested Option Grants |   |
|-----------------------------------------------|--------|----------------------|-----------|------------------------|--------|
|                                          |   | Shares               |      |                   | Price  |   |   | Proceeds |   |   | Shares |   |   | Price |   |   | Proceeds |   |
| 2010 Employee & officer plan options      |   |                 | 431,500   |                   |   | $ | 1.50 |   |   | $ | 647,250 |   |   |   | 1,017,548 |   |   | $ | 1.50 |   |   | $ | 1,526,322 |   |
| Directors plan options                        |   |                 | 316,910   |                   |   |   | 1.98 |   |   |   | 628,885 |   |   |   | 164,062 |   |   |   | 1.10 |   |   |   | 180,016 |   |
| Non-plan options to consultants and employees |   |                 | 1,041,000 |                   |   |   | 2.79 |   |   |   | 2,900,000 |   |   |   | 587,500 |   |   |   | 1.89 |   |   |   | 1,108,750 |   |
| Total                                         |   |                 | 1,789,410 |                   |   | $ | 2.33 |   |   | $ | 4,176,135 |   |   |   | 1,769,110 |   |   | $ | 1.59 |   |   | $ | 2,815,088 |   |

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|      |   | Option Awards                                                       |    | Stock Awards |
|----------------|--------|--------------------------------------------------------------------------|---------|-------------------|
|           |   | Non-Plan                                                                 |    |              | Equity Incentive Plan Awards |   |   |   |   |   | Equity Incentive Plan Awards |
|           |   | Number of shares underlying unexercised options |    |              |   |   |   | # Shares |   |   |   |   |
| Name           |   | #Exercisable                                                             |    |              | #Unexer-cisable |   |   | Unearned |   |   | OptionExercisePrice |   | OptionExpirationDate |   | NumberUnearnedSharesor units ofstock |   | MarketValue |   | Unearnedshares, units, orotherrights notvested |   | MarketValue |   | Footnotes |
| (a)            |   | (b)                                                                      |    |              | (c) |   |   | (d) |   |   | (e) |   | (f) |   | (g) |   | (h) |   | (i) |   | (j) |   |   |
| Granville, Tom |   |                                                                     | 120,000 |              |   |   | - |   |   |   | - |   |   | $ | 2.50 |   | varies through 4/30/2012 |   |   |   |   |   |   |   |   |   | Issued pursuant to April 2005 Executive Employment Agreement. Options Expire 5 years after monthly vest date |
|           |   |                                                                     |    |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Granville, Tom |   |                                                                     | 90,000  |              |   |   | - |   |   |   | - |   |   | $ | 2.50 |   | varies through 6/15/2015 |   |   |   |   |   |   |   |   |   | Issued pursuant to June 2008 Executive Employment Agreement. Options Expire 5 years after monthly vest date |
|           |   |                                                                     |    |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Granville, Tom |   |                                                                     | 60,000  |              |   |   | 300,000 |   |   |   | - |   |   | $ | 1.50 |   | varies through 6/29/2018 |   |   |   |   |   |   |   |   |   | Issued pursuant to June 2010 Executive Employment Agreement. Options Expire 5 years after monthly vest date |
|           |   |                                                                     |    |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Buiel, Edward  |   |                                                                     | 80,000  |              |   |   | - |   |   |   | - |   |   | $ | 4.00 |   | varies through 8/31/2013 |   |   |   |   |   |   |   |   |   | Issued pursuant to Sept 2005 Executive Employment Agreement. Options expire 5 years after monthly vest date |
|           |   |                                                                     |    |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Buiel, Edward  |   |                                                                     | 50,000  |              |   |   | - |   |   |   | - |   |   | $ | 3.75 |   | 12/29/2015 |   |   |   |   |   |   |   |   |   | Options issued pursuant to Dec 2006 Executive Employment Agreement. Lump sum vesting date - 12/29/2009 |
|           |   |                                                                     |    |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Buiel, Edward  |   |                                                                     | 50,000  |              |   |   | - |   |   |   | - |   |   |   | 3.75 |   | 5/30/2015 |   |   |   |   |   |   |   |   |   | Options issued pursuant to Dec 2006 Executive Employment Agreement. Lump sum vesting date - 5/31/10 upon expiration of employment contract |
|           |   |                                                                     |    |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Buiel, Edward  |   |                                                                     | 100,000 |              |   |   | - |   |   |   | - |   |   |   | 2.50 |   | 5/30/2015 |   |   |   |   |   |   |   |   |   | Issued pursuant to June 2008 Executive Employment Agreement. Lump sum vesting date - 5/31/10 upon expiration of employment contract |
|           |   |                                                                     |    |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Charles Trego  |   |                                                                     | 76,000  |              |   |   | 189,000 |   |   |   | - |   |   | $ | 1.50 |   | varies through 3/30/2018 |   |   |   |   |   |   |   |   |   | Issued pursuant to April 2010 Executive Employment Agreement. Options Expire 5 years after monthly vest date |
|           |   |                                                                     |    |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Philip Baker   |   |                                                                     | 68,000  |              |   |   | 162,000 |   |   |   | - |   |   | $ | 1.50 |   | varies through 3/30/2018 |   |   |   |   |   |   |   |   |   | Issued pursuant to April 2010 Executive Employment Agreement. Options Expire 5 years after monthly vest date |
|           |   |                                                                     |    |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Hillier, Don   |   |                                                                     | 95,000  |              |   |   | 0 |   |   |   | 0 |   |   |   | 2.50 |   | varies through 01/15/15 |   |   |   |   |   |   |   |   |   | Issued pursuant to June 2008 Executive Employment Agreement. Options Expire 5 years after monthly vest date |

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|                    |   | Fees Earned or |   |   | Stock  |   |   | Option  |   |   |      |   |
|-------------------------|--------|----------------|--------|--------|--------|--------|--------|---------|--------|--------|-----------|--------|
|                    |   | Paid in Cash   |   |   | Awards |   |   | Awards  |   |   |      |   |
| Name                    |   | ($) (1)        |   |   | ($)    |   |   | ($) (3) |   |   | Total ($) |   |
| Thomas Granville (2)    |   |           |   |   |   |   |   |    |   |   |      |   |
| Dr. Igor Filipenko (4)  |   | $              | -      |   |   |   |   |    | $      | -      |      |   | $ | - |   |
| Robert G. Averill       |   |           | 69,297 |   |   |   |   |    |   | 34,860 |      |   |   | 104,157 |   |
| Dr. Howard K. Schmidt   |   |           | 44,250 |   |   |   |   |    |   |   |      |   |   | 36,500 |   |
| Michael Kishinevsky     |   |           | 56,500 |   |   |   |   |    |   |   |      |   |   | 37,000 |   |
| Glenn Patterson         |   |           | 60,646 |   |   |   |   |    |   |   |      |   |   | 39,000 |   |
| Stanley A. Hirschman(5) |   |           | 69,198 |   |   |   |   |    |   |   |      |   |   | 33,750 |   |
| D. Walker Wainwright    |   |           | 72,872 |   |   |   |   |    |   | 14,882 |      |   |   | 87,754 |   |
| David Gelbaum (6)       |   |           |   |   |   |   |   |    |   |   |      |   |   | - |   |
| David Anthony (6)       |   |           |   |   |   |   |   |    |   |   |      |   |   | - |   |
| Joseph Bartlett (6)     |   |           |   |   |   |   |   |    |   |   |      |   |   | - |   |

| 1. | Fees are presented based on the amount paid during 2010. |
|----|----------------------------------------------------------|

| 2. | Mr. Granville was reelected to serve on the Board of Directors at the Annual Meeting held on June 09, 2010. Mr. Granville received no compensation during 2010 for his service as a Director, as he served as our chief executive officer during that time period. For a summary of the compensation received by him as chief executive officer during 2010, see Summary Compensation Table above. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | One director was reelected to serve on the Board of Directors at the Annual Meeting held on June 09, 2010, receiving 77,922 five-year options with an exercise price of $0.77 per share, pursuant to the 2004 Outside Directors Stock Option Plan. The options granted shall vest at the rate of 25,974 per year commencing on the date of the company's Annual Meeting, so long as the director serves as a member of the board on the date of such meeting. Another director received 8,000 five-year options with an exercise price of $3.60 per share pursuant to terms of his 2007 appointment. The options are valued using the Black-Scholes-Merton option pricing model. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | On January 11, 2010, Dr. Igor Filipenko gave notice of his resignation as a director of the Company, effective immediately. |
|----|-----------------------------------------------------------------------------------------------------------------------------|

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| 5. | Stanley A. Hirschman resigned as a director on September 28, 2010. |
|----|--------------------------------------------------------------------|

| 6. | David Gelbaum, David Anthony and Joseph Bartlett were added to the Board as a condition of the Quercus Trust Amendment to Warrants and Securities Purchase Agreement. These members received no compensation for 2009. Mr. Gelbaum resigned as a director on March 3, 2010. Joseph Bartlett resigned as a director on September 28, 2010. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | A basic annual retainer of $25,000 for service as a director; |
|--------|--------|---------------------------------------------------------------|

|   | · | A supplemental retainer of $6,000 for service as chairman of any committee; |
|--------|--------|-----------------------------------------------------------------------------|

|   | · | A supplemental annual retainer of $3,000 for service as a committee member; |
|--------|--------|-----------------------------------------------------------------------------|

|   | · | A meeting fee of $1,500 per day for each board or committee meeting attended in person or $500 for each board or committee meeting attended by telephone; and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Reimbursement for all reasonable travel, meals and lodging costs incurred on our behalf. |
|--------|--------|------------------------------------------------------------------------------------------|

|   | · | Options to reelected directors. |
|--------|--------|---------------------------------|

|   | · | Reimbursement for expenses up to $5,000 annually for education related to chairmanship of a committee. |
|--------|--------|--------------------------------------------------------------------------------------------------------|

Item 12 Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

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|                                                                                                                                              |   | Common Stock |       |   | Warrant & Options (1) |   |       | Combined Ownership |   |   | Percentage |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|------------|--------|---------------------------|--------|------------|--------------------|--------|--------|------------|--------|
| Quercus Trust (2)1835 Newport BlvdA109 – PMB 467 Cosa Mesa, CA 92627                                                                        |   |         | 7,701,104  |   |                      |   | 10,000,000 |               |   |   | 17,701,104 |   |   |   | 18.5 | % |
| AWM Investment Company, Inc. (3)Special Situations Cayman Fund LP527 Madison Avenue, Suite 2600c/o Austin W Marxe & David M Greenhouse        |   |         | 1,694,386  |   |                      |   | -          |               |   |   | 1,694,386  |   |   |   | 2.0 | % |
| AWM Investment Company, Inc. (3)Special Situations Private Equity Fund527 Madison Avenue, Suite 2600c/o Austin W Marxe & David M Greenhouse   |   |         | 1,270,789  |   |                      |   | -          |               |   |   | 1,270,789  |   |   |   | 1.5 | % |
| AWM Investment Company, Inc. (3)Special Situations Technology Fund LP527 Madison Avenue, Suite 2600c/o Austin W Marxe & David M Greenhouse    |   |         | 770,946    |   |                      |   | -          |               |   |   | 770,946    |   |   |   | 0.9 | % |
| AWM Investment Company, Inc. (3)Special Situations Technology Fund II LP527 Madison Avenue, Suite 2600c/o Austin W Marxe & David M Greenhouse |   |         | 4,735,809  |   |                      |   | -          |               |   |   | 4,735,809  |   |   |   | 5.5 | % |
| James E. Winner Jr. & Donna C Winner JT TEN (4)Winner Building, 32 West State Street, Sharon, PA 16146                                        |   |         | 8,245,614  |   |                      |   | -          |               |   |   | 8,245,614  |   |   |   | 9.6 | % |
| Manatuck Hill Partners, LLC (5)1465 Post Road EastWestport, CT 06880                                                                              |   |         | 7,200,000  |   |                      |   | -          |               |   |   | 7,200,000  |   |   |   | 8.4 | % |
| Hare & Co. (6)Bank of New York Mellon,One Wall Street, New York NY 10286Attn Anthony V. Saviano, 3rd floor / Window A                         |   |         | 7,150,000  |   |                      |   | -          |               |   |   | 7,150,000  |   |   |   | 8.4 | % |
| Gelbaum, David (7)                                                                                                                                |   |         | 7,701,104  |   |                      |   | 10,000,000 |               |   |   | 17,701,104 |   |   |   | 18.5 | % |
| Averill, Robert                                                                                                                                   |   |         | 3,774,059  |   |                      |   | 617,183    |               |   |   | 4,391,242  |   |   |   | 5.1 | % |
| Glenn Patterson                                                                                                                                   |   |         | 2,752,001  |   |                      |   | 260,317    |               |   |   | 3,012,318  |   |   |   | 3.5 | % |
| Filipenko, Igor (8)                                                                                                                               |   |         | 1,217,197  |   |                      |   | 45,809     |               |   |   | 1,263,006  |   |   |   | 1.5 | % |
| Granville, Tom                                                                                                                                    |   |         | 696,596    |   |                      |   | 270,000    |               |   |   | 966,596    |   |   |   | 1.1 | % |
| Buiel, Edward                                                                                                                                     |   |         | 305,000    |   |                      |   | 305,000    |               |   |   | 610,000    |   |   |   | * |   |
| Hillier, Donald                                                                                                                                   |   |         | 30,000     |   |                      |   | 95,000     |               |   |   | 125,000    |   |   |   | * |   |
| Trego, Charles                                                                                                                                    |   |         | -          |   |                      |   | 97,000     |               |   |   | 97,000     |   |   |   | * |   |
| Baker, Phillip                                                                                                                                    |   |         | -          |   |                      |   | 86,000     |               |   |   | 86,000     |   |   |   | * |   |
| Wainwright, Walker                                                                                                                                |   |         | 8,000      |   |                      |   | 27,840     |               |   |   | 35,840     |   |   |   | * |   |
| Schmidt, Howard                                                                                                                                   |   |         | -          |   |                      |   | 52,000     |               |   |   | 52,000     |   |   |   | * |   |
| Hirschman, Stan                                                                                                                                   |   |         | -          |   |                      |   | 44,285     |               |   |   | 44,285     |   |   |   | * |   |
| Kishinevsky, Michael                                                                                                                              |   |         | -          |   |                      |   | 44,000     |               |   |   | 44,000     |   |   |   | * |   |
| Bartlett, Joseph                                                                                                                                  |   |         | -          |   |                      |   | -          |               |   |   | -          |   |   |   | * |   |
| Anthony, David                                                                                                                                    |   |         | -          |   |                      |   | -          |               |   |   | -          |   |   |   | * |   |
| Directors and officers as a group (15 persons)                                                                                                    |   |         | 16,483,957 |   |                      |   | 11,944,434 |               |   |   | 28,428,391 |   |   |   | 29.2 | % |

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Table of Contents

| (1) | Represents shares of common stock issuable upon exercise of warrants and options held by the stockholder that are presently exercisable or will become exercisable within 60 days. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The trustees of The Quercus Trust are Mr. David Gelbaum and Ms. Monica Chavez Gelbaum, each with shared voting and dispositive power over the shares held by this trust. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | AWM Investment Company, Inc. (“AWM”) the general partner of and investment adviser to the Special Situations Cayman Fund, L.P. AWM also serves as the investment adviser to Special Situations Private Equity Fund, L.P., Special Situations Technology Fund II, L.P. and Special Situations Technology Fund, L.P. Austin W. Marxe and David M. Greenhouse are the principal owners of AWM. Through their control of AWM, Messrs. Marxe and Greenhouse share voting and investment power over the portfolio securities of each of the funds listed above |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | 8,245,614 shares formerly held by James A. Winner Jr. & Donna C Winner were transferred to street name on 9-9-10. We do not have the benefit of further information. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Manatuck Hill Partners LLC is an investment adviser acting on behalf of its clients' accounts with investments in Manatuck Hill Scout Fund, LP, Manatuck Hill Mariner Master Fund, LP, and Manatuck Hill Navigator Master Fund. Steve Orlov & Mark Broach serve as the legal representative for these accounts. Steve Orlov & Mark Broach share voting and dispositive power over the shares. 7,200,000 shares were transferred to street name on 6-3-10. We do not have the benefit of further information. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Hare & Co. is an investment advisor operating in the U.K., with offices in New York. Blackrock Investment Managers (UK) Ltd has voting and dispositive power over the shares. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | The ownership reflected for David Gelbaum is the actual and beneficial ownership of The Quercus Trust. The trustees of The Quercus Trust are Mr. David Gelbaum and Ms. Monica Chavez Gelbaum, each with shared voting and dispositive power over the shares held by this trust. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8) | Includes 1,026,295 shares beneficially held by Dr. Igor Filipenko and 236,711 shares beneficially held by his wife. |
|-----|---------------------------------------------------------------------------------------------------------------------|

Item 13 Certain Relationships and Related Transactions, and Director Independence

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Table of Contents

Item 14 Principal Accounting Fees and Services

|                                                 |   | 2010   |    |   | 2009   |   |
|------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Audit Fees                                           |   | $      | 104,793 |   |   | $      | 81,507 |   |
|                                                 |   |   |    |   |   |   |   |   |
| Audit-Related Fees - registration statement consents |   | $      | 13,336  |   |   | $      | 4,586 |   |
|                                                 |   |   |    |   |   |   |   |   |
| Tax Fees                                             |   | $      | 5,000   |   |   | $      | 14,000 |   |
|                                                 |   |   |    |   |   |   |   |   |
| All Other Fees                                       |   | $      | 2,500   |   |   | $      | 0 |   |

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Table of Contents

PART IV

Item 15 Exhibits

| 2.1 |         | Reorganization Agreement (without exhibits) between Tamboril Cigar Company, Axion Power Corporation and certain stockholders of Axion Power Corporation dated December 31, 2003.  |         | (1)    |
|-----|--------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|--------|
| 2.2 |         | First Addendum to the Reorganization Agreement between Tamboril Cigar Company, Axion Power Corporation and certain stockholders of Axion Power Corporation dated January 9, 2004. |         | (1)    |
| 3.1 |         | Amended and Restated Certificate of Incorporation of Tamboril Cigar Company dated February 13, 2001.                                                                              |         | (2)    |
| 3.3 |         | Amendment to the Certificate of Incorporation of Tamboril Cigar Company dated June 4, 2004.                                                                                       |         | (3)    |
| 3.4 |         | Amendment to the Certificate of Incorporation of Axion Power International, Inc. dated June 4, 2004.                                                                              |         | (3)    |
| 3.5 |         | Amended By-laws of Axion Power International, Inc. dated June 4, 2004. (3)                                                                                                        |         |   |
| 3.6 |         | Certificate of Amendment to the Certificate of Incorporation of Axion Power International, Inc., dated June 14, 2010.                                                             |         | (25)   |
| 4.1 |         | Specimen Certificate for shares of Company’s $0.00001 par value common stock.                                                                                               |         | (9)    |
| 4.2 |         | Trust Agreement for the Benefit of the Shareholders of Mega-C Power Corporation dated December 31, 2003.                                                                          |         | (1)    |
| 4.3 |         | Succession Agreement Pursuant to the Provisions of the Trust Agreement for the Benefit of the Shareholders of Mega-C Power Corporation dated March 25, 2004.                      |         | (4)    |
| 4.4 |         | Form of Warrant Agreement for 1,796,300 capital warrants.                                                                                                                         |         | (9)    |
| 4.5 |         | Form of Warrant Agreement for 667,000 Series I investor warrants.                                                                                                                 |         | (9)    |
| 4.6 |         | Form of Warrant Agreement for 350,000 Series II investor warrants.                                                                                                                |         | (9)    |
| 4.7 |         | Form of Warrant Agreement for 313,100 Series III investor warrants.                                                                                                               |         | (9)    |
| 4.8 |         | Form of 8% Cumulative Convertible Senior Preferred Stock Certificate                                                                                                              |         | (D)    |
| 4.9 |    | First Amended and Restated Trust Agreement for the Benefit of the Shareholders of Mega-C Power Corporation dated February 28, 2005.                                               |    | (11)   |

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Table of Contents

| 4.10  |         | Second Amendment and Restated Trust Agreement for the Benefit of the Shareholders of Mega-C Power Corporation dated November 21, 2006.                                                                                           |         | (19)                   |
|-------|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|------------------------|
| 4.11  |         | Certificate of Powers, Designations, Preferences and Rights of the 8% Convertible Senior Preferred Stock of Axion Power International, Inc. dated March 17, 2005.                                                                |         | (12)                   |
| 4.12  |         | Certificate of Powers, Designations, Preferences and Rights of the Series-A Convertible Preferred Stock, Par Value $0.0001 Per Share, of Axion Power International, Inc. dated October 23, 2006.                                 |         | (13)                   |
| 4.13  |         | Amended Certificate of Powers, Designations, Preferences and Rights of the Series-A Convertible Preferred Stock, Par Value $0.0001 Per Share, of Axion Power International, Inc. dated October 26, 2006.                         |         | (13)                   |
| 4.14  |         | Certificate of Amendment to the Certificate of Powers, Designations, Preferences and Rights of the Series-A Convertible Preferred Stock, Par Value $.0001 Per Share, of Axion Power International, Inc. dated February 24, 2010. |         |                   |
| 9.1   |         | Agreement respecting the voting of certain shares beneficially owned by the Trust for the Benefit of the Shareholders of Mega-C Power Corporation.                                                                               |         | Included inExhibit 4.2 |
| 10.1  |         | Development and License Agreement between Axion Power Corporation and C and T Co. Incorporated dated November 15, 2003.                                                                                                          |         | (1)                    |
| 10.2  |         | Letter Amendment to Development and License Agreement between Axion Power Corporation and C and T Co. Incorporated dated November 17, 2003.                                                                                      |         | (1)                    |
| 10.3  |         | Tamboril Cigar Co. Incentive Stock Plan dated January 8, 2004.                                                                                                                                                                   |         | (A)                    |
| 10.4  |         | Tamboril Cigar co. Outside Directors Stock Option Plan dated February 2, 2004.                                                                                                                                                   |         | (A)                    |
| 10.5  |         | Stock Purchase & Investment Representation Letter among John L. Petersen, Sally A. Fonner and C and T Co. Incorporated dated January 9, 2004.                                                                                |         | (1)                    |
| 10.6  |         | Letter Amendment to Development and License Agreement between Axion Power Corporation and C and T Co. Incorporated dated January 9, 2004.                                                                                        |         | (1)                    |
| 10.7  |         | First Amendment to Development and License Agreement between Axion Power Corporation and C and T Co. Incorporated dated as of January 9, 2004.                                                                                   |         | (5)                    |
| 10.8  |         | Definitive Incentive Stock Plan of Axion Power International, Inc. dated June 4, 2004.                                                                                                                                           |         | (3)                    |
| 10.9  |         | Definitive Outside Directors’ Stock Option Plan of Axion Power International, Inc. dated June 4, 2004.                                                                                                                     |         | (3)                    |
| 10.10 |         | Executive Employment Agreement of Charles Mazzacato.                                                                                                                                                                             |         | (9)                    |
| 10.11 |         | Executive Employment Agreement of Peter Roston.                                                                                                                                                                                  |         | (9)                    |
| 10.12 |         | Amended Retainer Agreement between the law firm of Fefer, Petersen & Cie dated March 31, 2005.                                                                                                                               |         | (C)                    |
| 10.13 |         | Retainer Agreement between the law firm of Fefer, Petersen & Cie and Tamboril Cigar Company dated January 2, 2004.                                                                                                           |         | (10)                   |
| 10.14 |    | Bankruptcy Settlement Agreement Between Axion Power International, Inc. and Mega-C Power Corporation dated December, 2005.                                                                                                       |    | (E)                    |

| 10.15 |   | Second Amendment to Development and License Agreement between Axion Power International, Inc. and C and T Co. Incorporated dated as of March 18, 2005.                                                                                       |   | (12) |
|-------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------|
| 10.16 |   | Executive Employment Agreement of Thomas Granville dated June 23, 2008.                                                                                                                                                                      |   | (20) |
| 10.17 |   | Loan agreement between Axion Battery Products, Inc. as borrower, Axion Power International, Inc. as accommodation party and Robert Averill as lender respecting a $1,000,000 purchase money and working capital loan dated January 31, 2006. |   | (14) |
| 10.18 |   | Security agreement between Axion Battery Products, Inc. as debtor and Robert Averill as secured party dated January 31, 2006.                                                                                                                |   | (14) |
| 10.19 |   | Security agreement between Axion Power International, Inc. as debtor and Robert Averill as secured party dated January 31, 2006.                                                                                                             |   | (14) |
| 10.20 |   | Promissory Note between Axion Battery Products, Inc. as maker and Robert Averill as payee dated February 14, 2006.                                                                                                                           |   | (14) |
| 10.21 |   | Form of Warrant Agreement between Axion Power International, Inc. and Robert Averill.                                                                                                                                                        |   | (14) |
| 10.22 |   | Commercial Lease Agreement between Axion Battery Products, Inc. as lessee and Steven F. Hoye and Steven C. Warner as lessors dated February 14, 2006.                                                                                        |   | (14) |

----

Table of Contents

| 10.23      |         | Asset Purchase Agreement dated between Axion Battery Products, Inc. as buyer and National City Bank of Pennsylvania as seller February 10, 2006.                                                               |         | (14)   |
|------------|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|--------|
| 10.24      |         | Escrow Agreement between Axion Battery Products, Inc. and National City Bank of Pennsylvania as parties in interest and William E. Kelleher, Jr. and James D. Newell as escrow agents dated February 14, 2006. |         | (14)   |
| 10.25      |         | Executive Employment Agreement of Edward Buiel dated June 23, 2008.                                                                                                                                            |         | (21)   |
| 10.26      |         | Consulting Agreement, by and between Axion Power International, Inc. and Andrew Carr Conway, Jr. dated as of September 27, 2007.                                                                               |         | (16)   |
| 10.27      |         | Amendment No. 1 to Consulting Agreement by and between Axion Power International, Inc. and Andrew Carr Conway, Jr. dated as of October 31, 2007.                                                               |         | (16)   |
| 10.28      |         | Securities Purchase Agreement by and between Axion Power International, Inc. and Quercus Trust dated as of January 14, 2008.                                                                                   |         | (17)   |
| 10.29      |         | Common Stock Purchase Warrant executed by Axion Power International, Inc. dated January 14, 2008.                                                                                                              |         | (17)   |
| 10.30      |         | Executive Employment Agreement of Donald T. Hillier dated June 18, 2008.                                                                                                                                       |         | (19)   |
| 10.31      |         | Amendment to Warrants and Securities Purchase Agreement by and between Axion Power International, Inc. and Quercus Trust dated as of September 22, 2009.                                                       |         | (22)   |
| 10.32      |         | Securities Purchase Agreement by and between Axion Power International, Inc. and the Investors named therein dated as of December 18, 2009.                                                                    |         | (23)   |
| 10.33      |         | Registration Rights Agreement, executed by Axion Power International Inc. and the Investors named therein.                                                                                                     |         | (23)   |
| 10.34      |         | Amendment No. 2 to Securities Purchase by and between Axion Power International, Inc. and Quercus Trust Agreement dated as of January 14, 2008.                                                                |         | (23)   |
| 10.35      |         | Lock-Up Agreement executed by Quercus Trust and David Gelbaum and Monica Chavez Gelbaum.                                                                                                                       |         | (23)   |
| 10.36      |         | Lease Agreement by and between Steven F. Hoye and Steven C. Warner, Lessor, and Axion Power Battery Manufacturing, Inc., Lessee dated March 28, 2010.                                                          |         | (6)    |
|       |         |                                                                                                                                                                                                           |         |   |
| 10.37      |         | Executive Employment Agreement of Charles R. Trego dated April 1, 2010.                                                                                                                                        |         | (24)   |
| 10.38      |         | Executive Employment Agreement of Phillip S. Baker dated April 1, 2010.                                                                                                                                        |         | (24)   |
|       |         |                                                                                                                                                                                                           |         |   |
| 10.39      |         | Executive Employment Agreement of Thomas Granville dated June 29, 2010.                                                                                                                                        |         | (26)   |
| 10.40      |         | Amendment No. 3 to Securities Purchase Agreement by and between Axion Power International, Inc. and the Quercus Trust dated September 30, 2010.                                                                |         | (27)   |
| 10.41      |         | Commercial Lease with Becan Development, LLC dated November 4, 2010.                                                                                                                                           |         | (28)   |
|       |         |                                                                                                                                                                                                           |         |   |
| 31.1  |         | Certification of Chief Executive Officer Pursuant to Rule 13a-14(a)                                                                                                                                            |         |   |
|       |         |                                                                                                                                                                                                           |         |   |
| 31.2  |         | Certification of Chief Financial Officer Pursuant to Rule 13a-14(a)                                                                                                                                  |         |   |
|       |         |                                                                                                                                                                                                           |         |   |
| 32.1       |         | Statement of Principal Executive Officer Pursuant to Section 1350 of Title 18 of the United States Code.                                                                                                       |         |   |
|       |         |                                                                                                                                                                                                           |         |   |
| 32.2       |    | Statement of Principal Financial Officer Pursuant to Section 1350 of Title 18 of the United States Code.                                                                                                       |    |   |

| (1) | Incorporated by reference from our Current Report on Form 8-K dated January 15, 2004. |
|-----|---------------------------------------------------------------------------------------|

| (2) | Incorporated by reference from our Current Report on Form 8-K dated February 5, 2003. |
|-----|---------------------------------------------------------------------------------------|

| (3) | Incorporated by reference from our Current Report on Form 8-K dated June 7, 2004. |
|-----|-----------------------------------------------------------------------------------|

| (4) | Incorporated by reference from our Current Report on Form 8-K dated April 13, 2004. |
|-----|-------------------------------------------------------------------------------------|

| (5) | Incorporated by reference from our Form S-3 registration statement dated May 20, 2004. |
|-----|----------------------------------------------------------------------------------------|

| (6) | Incorporated by reference from our Annual Report on Form 10-KSB dated May 2, 2004. |
|-----|------------------------------------------------------------------------------------|

| (7) | Incorporated by reference from our Current Report on Form 8-K dated April 13, 2003. |
|-----|-------------------------------------------------------------------------------------|

| (8) | Incorporated by reference from our Current Report on Form 8-K dated February 16, 2004. |
|-----|----------------------------------------------------------------------------------------|

| (9) | Incorporated by reference from our Form S-1 registration statement dated September 2, 2004. |
|-----|---------------------------------------------------------------------------------------------|

| (10) | Incorporated by reference from our Form S-1 registration statement dated December 17, 2004. |
|------|---------------------------------------------------------------------------------------------|

----

Table of Contents

| (11) | Incorporated by reference from our Current Report on Form 8-K dated February 28, 2005. |
|------|----------------------------------------------------------------------------------------|

| (12) | Incorporated by reference from our Current Report on Form 8-K dated March 21, 2005. |
|------|-------------------------------------------------------------------------------------|

| (13) | Incorporated by reference from our Current Report on Form 8-K dated November 8, 2006. |
|------|---------------------------------------------------------------------------------------|

| (14) | Incorporated by reference from our Current Report on Form 8-K dated February 16, 2006. |
|------|----------------------------------------------------------------------------------------|

| (15) | Incorporated by reference from our Current Report on Form 8-K dated January 3, 2007. |
|------|--------------------------------------------------------------------------------------|

| (16) | Incorporated by reference from our Current Report on Form 8-K dated November 6, 2007. |
|------|---------------------------------------------------------------------------------------|

| (17) | Incorporated by reference from our Current Report on Form 8-K dated January 17, 2008. |
|------|---------------------------------------------------------------------------------------|

| (18) | Incorporated by reference from our Current Report on Form 8-K dated January 31, 2008. |
|------|---------------------------------------------------------------------------------------|

| (19) | Incorporated by reference from our Registration Statement on Form S-1 dated July 3, 2008. |
|------|-------------------------------------------------------------------------------------------|

| (20) | Incorporated by reference from our Current Report on Form 8-K dated June 27, 2008. |
|------|------------------------------------------------------------------------------------|

| (21) | Incorporated by reference from our Current Report on Form 8-K dated July 2, 2008. |
|------|-----------------------------------------------------------------------------------|

| (22) | Incorporated by reference from our Current Report on Form 8-K dated September 22, 2009. |
|------|-----------------------------------------------------------------------------------------|

| (23) | Incorporated by reference from our Current Report on Form 8-K dated December 18, 2009. |
|------|----------------------------------------------------------------------------------------|

| (24) | Incorporated by reference from our Current Report on Form 8-K dated April 6, 2010. |
|------|------------------------------------------------------------------------------------|

| (25) | Incorporated by reference from our Current Report on Form 8-K dated June 15, 2010. |
|------|------------------------------------------------------------------------------------|

| (26) | Incorporated by reference from our Current Report on Form 8-K dated July 6, 2010. |
|------|-----------------------------------------------------------------------------------|

| (27) | Incorporated by reference from our Current Report on Form 8-K dated October 4, 2010. |
|------|--------------------------------------------------------------------------------------|

| (28) | Incorporated by reference from our Current Report on Form 8-K dated November 10, 2010. |
|------|----------------------------------------------------------------------------------------|

| (A) | Incorporated by reference from our Current Report on Form 8-K/A dated February 2, 2004. |
|-----|-----------------------------------------------------------------------------------------|

| (B) | Incorporated by reference from our Current Report on Form 8-K dated April 4, 2005. |
|-----|------------------------------------------------------------------------------------|

| (C) | Incorporated by reference from our Registration Statement on Form SB-2 dated April 26, 2005. |
|-----|----------------------------------------------------------------------------------------------|

| (D) | Incorporated by reference from our Current Report on Form 8-K dated December 13, 2005. |
|-----|----------------------------------------------------------------------------------------|

|   | AXION POWER INTERNATIONAL, INC. |
|--------|---------------------------------|
|   |                            |
|   | By:                             | /s/ Thomas Granville |
|   |                            | Thomas Granville, Principal Executive Officer and Director |
|   |                            |   |
|   | Dated: April 29, 2011           |

| Signature             |   | Title    |   | Date                |
|-----------------------|--------|----------|--------|---------------------|
|                  |   |     |   |                |
| /s/ Robert G. Averill |   |     |   |                |
| Robert G. Averill     |   | Director |   | April 29, 2011 |
|                  |   |     |   |                |
| /s/ Glenn Patterson   |   |     |   |                |
| Glenn Patterson       |   | Director |   | April 29, 2011 |
|                  |   |     |   |                |
| /s/ David Anthony     |   |     |   |                |
| David Anthony         |   | Director |   | April 29, 2011 |

----