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| UNITED STATES                                                           |
|-------------------------------------------------------------------------|
| SECURITIES AND EXCHANGE COMMISSION                                      |
| Washington, D.C.                                                        |
|                                                                    |
| FORM 10-K/AAmendment No. 2                                              |
|                                                                    |
| x                                                        | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE |
|                                                                    | ACT OF 1934 |
|                                                                    |
| For the fiscal year ended December 31, 2009                             |
|                                                                    |
| OR                                                                      |
|                                                                    |
| o                                                        | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES |
|                                                                    | EXCHANGE ACT OF 1934 |
|                                                                    |
| For the transition period from ____________ to ____________        |
|                                                                    |
| Commission File number 1-10352                                          |
|                                                                    |
| COLUMBIA LABORATORIES, INC.                                             |
| (Exact name of registrant as specified in its charter)                  |
|                                                                    |
| Delaware                                                                | 59-2758596 |
| (State or other jurisdiction of                                         | (I.R.S. Employer |
| incorporation or organization)                                          | Identification No.) |
|                                                                    |
| 354 Eisenhower Parkway                                                  |   |
| Livingston, New Jersey                                                  | 07039 |
| (Address of principal executive offices)                                | (Zip Code) |
| Registrant’s telephone number, including area code:(973) 994-3999 |   |
|                                                                    |
|                                                               | Securities registered pursuant to Section 12(b) of the Act: None |
|                                                                    |
|                                                                    | Securities registered pursuant to Section 12(g) of the Act: |
|                                                                    |
| Common Stock, $.01 par value                                            | NASDAQ Global Market |
| (Title of each class)                                                   | (Name of exchange on which |
|                                                                    | registered) |

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

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| Part I   |                                                                                                                      | 1      |
|----------|---------------------------------------------------------------------------------------------------------------------------|--------|
| Item 1.  | Business                                                                                                                  | 1      |
| Item 1A. | Risk Factors                                                                                                              | 20     |
| Item 1B. | Unresolved Staff Comments                                                                                                 | 30     |
| Item 2.  | Properties                                                                                                                | 30     |
| Item 3.  | Legal Proceedings                                                                                                         | 30     |
| Item 4.  | (Removed and Reserved)                                                                                                    | 30     |
|     |                                                                                                                      |   |
| Part II  |                                                                                                                      | 31     |
| Item 5.  | Market for the Registrant’s Common Equity and Related Stockholder Matters and Issuer Purchases of Equity Securities | 31     |
| Item 6.  | Selected Financial Data                                                                                                   | 35     |
| Item 7.  | Management's Discussion and Analysis of Financial Condition and Results of Operations                                     | 36     |
| Item 7A. | Quantitative and Qualitative Disclosures About Market Risks                                                               | 51     |
| Item 8.  | Financial Statements and Supplementary Data                                                                               | 51     |
| Item 9.  | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                                      | 51     |
| Item 9A. | Controls and Procedures                                                                                                   | 51     |
| Item 9B. | Other Information                                                                                                         | 54     |
|     |                                                                                                                      |   |
| Part III |                                                                                                                      | 54     |
| Item 10. | Directors, Executive Officers and Corporate Governance                                                                    | 54     |
| Item 11. | Executive Compensation                                                                                                    | 61     |
| Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters                            | 76     |
| Item 13. | Certain Relationships, Related Transactions, and Director Independence                                                    | 79     |
| Item 14. | Principal Accountant Fees and Services                                                                                    | 80     |
|     |                                                                                                                      |   |
| Part IV  |                                                                                                                      | 81     |
| Item 15. | Exhibits and Financial Statement Schedules                                                                                | 81     |

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|                  | Products                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|-----------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| Progesterone Products | ·   CRINONE® 8% (progesterone gel) marketed and sold by the Company in the U.S. ·   CRINONE® 8% sold to Merck Serono for resale outside the U.S. ·   PROCHIEVE® 8% (progesterone gel) sold by the Company in the U.S. ·   PROCHIEVE® 4% sold to Ascend Therapeutics, Inc., for resale in the U.S., pursuant to an agreement that will terminate on July 23, 2010. |
|                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| Other Products        | ·   STRIANT® (testosterone buccal system) marketed and sold by the Company in the U.S. ·   STRIANT® sold to Mipharm, S.p.A. for resale in Italy. ·   Royalty and licensing revenues.                                                                                                                                                                                                            |

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| Year Granted |   | Nature of Patent                                                                                                                                     |
|--------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|
|         |   |                                                                                                                                                 |
| 2009         |   | Low concentration of peroxide for treating or preventing vaginal infections.                                                                         |
|         |   |                                                                                                                                                 |
| 2006         |   | Bioadhesive progressive hydration tablets using desmopressin or prostaglandin E2 as the active ingredient.                                           |
|         |   |                                                                                                                                                 |
| 2004         |   | Compositions and methods for safely preventing or treating premature labor using a beta-adrenergic agonist, such as terbutaline.                     |
|         |   |                                                                                                                                                 |
| 2004         |   | Methods of safely treating endometriosis or infertility, and for improving fertility, using a beta-adrenergic agonist.                               |
|         |   |                                                                                                                                                 |
| 2003         |   | Use of progestin therapy for maintaining amenorrhea.                                                                                                 |
|         |   |                                                                                                                                                 |
| 2003         |   | Bioadhesive progressive hydration tablet.                                                                                                            |
|         |   |                                                                                                                                                 |
| 2002         |   | Use of certain polycarboxylic acid polymers for vaginal pH buffering to prevent miscarriage and premature labor associated with bacterial vaginosis. |

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| Subject of patent                 |   | Year of Expiration           |   | Product or Project                                                                                                                                     |
|-----------------------------------|--------|------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------|
| Progressive hydration tablets     |   | 2019                         |   | STRIANT—testosterone progressive hydration vaginal tablet—peptide delivery system—progesterone progressive hydration vaginal product |
| First Uterine Pass Effect™  |   | 2018                         |   | vaginally administered lidocaine—terbutaline vaginal gel—testosterone vaginal gel                                                          |
|   Progesterone delivery |   |   2013   |   |   CRINONE /PROCHIEVE                                                                                                                         |

----

|                  | Products                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|-----------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Progesterone Products | ·   CRINONE® 8% (progesterone gel) marketed and sold by the Company in the U.S. ·   CRINONE® 8% sold to Merck Serono for resale outside the U.S. ·   PROCHIEVE® 8% (progesterone gel) sold by the Company in the U.S. ·   PROCHIEVE® 4% sold to Ascend Therapeutics, Inc. for resale in the U.S pursuant to an agreement that will terminate on July 23, 2010. |
|                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Other Products        | ·   STRIANT® (testosterone buccal system) marketed and sold by the Company in the U.S. ·   STRIANT® sold to Mipharm, S.p.A. for resale in Italy. ·   Royalty and licensing revenues.                                                                                                                                                                                                              |

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|   | · | Perceived efficacy of our products;                                                         |
|--------|--------|---------------------------------------------------------------------------------------------|
|   |   |                                                                                        |
|   | · | Convenience and ease of administration;                                                     |
|   |   |                                                                                        |
|   | · | Prevalence and severity of adverse side effects in both clinical trials and commercial use; |
|   |   |                                                                                        |
|   | · | Availability of alternative treatments;                                                     |
|   |   |                                                                                        |
|   | · | Cost effectiveness;                                                                         |
|   |   |                                                                                        |
|   | · | The pricing of our products; and                                                            |
|   |   |                                                                                        |
|   | · | Our ability to obtain third party coverage or reimbursement for our products.               |

|   | · | The effectiveness of our production, distribution and marketing capabilities;        |
|--------|--------|--------------------------------------------------------------------------------------|
|   |   |                                                                                 |
|   | · | The successful marketing of our products by our distribution and marketing partners; |
|   |   |                                                                                 |
|   | · | The success of competing products; and                                               |
|   |   |                                                                                 |
|   | · | The availability and extent of reimbursement from third party payors.                |

----

|                    |   | 2009 |   | 2008 |   | 2007 |
|-------------------------|--------|------|--------|------|--------|------|
| CRINONE®           |   | 69%  |   | 59%  |   | 64%  |
| RepHresh®          |   | 10%  |   | 9%   |   | 11%  |
| Replens®           |   | 10%  |   | 8%   |   | 8%   |
| PROCHIEVE®         |   | 5%   |   | 7%   |   | 5%   |
| STRIANT®           |   | 5%   |   | 6%   |   | 7%   |
| Royalty income          |   | 1%   |   | 9%   |   | 2%   |
| Licensing fees          |   | 0%   |   | 2%   |   | 3%   |
|    Total |   | 100% |   | 100% |   | 100% |

| (in millions)                  |   | 2009                                                                        |   | 2008                                                                        |   | 2007                                                                        |   | % Change 2009 |
|--------------------------------|--------|-----------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------|--------|---------------|
|                           |   |                                                                        |   |                                                                        |   |                                                                        |   |          |
| Merck-Serono (formerly Serono) |   |  $         8.6            |   |  $         9.2            |   |  $         8.2            |   | -6.52%        |
| Lil' Drug Store Products, Inc. |   |             6.6 |   |             6.2 |   |             6.0 |   | 6.45%         |
| Cardinal Healthcare            |   |             5.7 |   |             5.6 |   |             6.0 |   | 1.79%         |
| McKesson                       |   |             4.6 |   |             5.0 |   |             3.9 |   | -8.00%        |
| All others (none over 5%)      |   |             6.7 |   |           10.2            |   |             5.5 |   | -34.31%       |
|    Total        |   |  $       32.2                       |   |  $       36.2                       |   |  $       29.6                       |   | -11.05%       |

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| (in millions)            |   | 2009                                                                        |   | 2008                                                                        |   | 2007                                                                        |
|--------------------------|--------|-----------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------|
|                     |   |                                                                        |   |                                                                        |   |                                                                        |
| United States            |   |  $       20.0                       |   |  $       18.0                       |   |  $       15.2                       |
|                     |   |                                                                        |   |                                                                        |   |                                                                        |
| Switzerland              |   |             8.6 |   |             9.2 |   |             8.1 |
| Other European Countries |   |             3.6 |   |             9.0 |   |             6.3 |
| Subtotal International   |   |           12.2            |   |           18.2            |   |           14.4            |
|                     |   |                                                                        |   |                                                                        |   |                                                                        |
|    Total  |   |  $       32.2                       |   |  $       36.2                       |   |  $       29.6                       |

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|   | · | Clinical trials may show our product candidates to be ineffective for the indications studied or to have harmful side effects;                           |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                     |
|   | · | Product candidates may fail to receive regulatory approvals required to bring the products to market;                                                    |
|   |   |                                                                                                                                                     |
|   | · | Manufacturing costs or other factors may make our product candidates uneconomical; and                                                                   |
|   |   |                                                                                                                                                     |
|   | · | The proprietary rights of others and their competing products and technologies may prevent our product candidates from being effectively commercialized. |

|   | · | The rate of patient enrollment which is a function of factors including the size of the patient population, the proximity of patients to clinical sites, the eligibility criteria for the study, and the nature of the study protocol; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                   |
|   | · | Institutional review board, or IRB, approval of the study protocol and the informed consent form;                                                                                                                                      |
|   |   |                                                                                                                                                                                                                                   |
|   | · | Prior regulatory agency review and approval;                                                                                                                                                                                           |
|   |   |                                                                                                                                                                                                                                   |
|   | · | Analysis of data obtained from clinical activities, which are susceptible to varying interpretations and which interpretations could delay, limit or prevent regulatory approval;                                                      |
|   |   |                                                                                                                                                                                                                                   |
|   | · | Changes in the policies of regulatory authorities for drug approval during the period of product development; and                                                                                                                      |
|   |   |                                                                                                                                                                                                                                   |
|   | · | The availability of skilled and experienced staff to conduct and monitor clinical studies and to prepare the appropriate regulatory applications.                                                                                      |

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|   | · | Our ability to raise any additional funds that we need to complete our trials;                                                                        |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                  |
|   | · | The number and outcome of clinical trials conducted by us and/or our collaborators;                                                                   |
|   |   |                                                                                                                                                  |
|   | · | The number of products we may have in clinical development;                                                                                           |
|   |   |                                                                                                                                                  |
|   | · | In licensing or other partnership activities, including the timing and amount of related development funding, license fees or milestone payments; and |
|   |   |                                                                                                                                                  |
|   | · | Future levels of our revenue.                                                                                                                         |

|   | · | A product candidate may not be deemed to be safe or effective;                                                          |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                    |
|   | · | The manufacturing processes or facilities we have selected may not meet the applicable requirements; and                |
|   |   |                                                                                                                    |
|   | · | Changes in their approval policies or adoption of new regulations may require additional clinical trials or other data. |

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| Location       |   | Use    |                      | Square feet |   | Expiration |   | Annual Rent |            |
|----------------|--------|--------|---------------------------|-------------|--------|------------|--------|-------------|-----------------|
| Livingston, NJ |   |   | Corporate office          |        |   | 9,450      |   |        | October, 2013   |   | $ | 217,350 |   |
| Paris, France  |   |   | European logistics office |        |   | 150        |   |        | 3 months notice |   | $ | 19,529 |   |

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|                                |   | High   |   |   | Low    |   |
|-------------------------------------|--------|--------|--------|--------|--------|--------|
| Fiscal Year Ended December 31, 2008 |   |   |   |   |   |   |
|    First Quarter     |   | $      | 2.51   |   |   | $      | 1.89 |   |
|    Second Quarter    |   |   | 4.29   |   |   |   | 2.13 |   |
|    Third Quarter     |   |   | 4.47   |   |   |   | 2.15 |   |
|    Fourth Quarter    |   |   | 2.76   |   |   |   | 0.92 |   |
|                                |   |   |   |   |   |   |   |   |
| Fiscal Year Ended December 31, 2009 |   |   |   |   |   |   |   |   |
|    First Quarter     |   | $      | 1.74   |   |   | $      | 1.09 |   |
|    Second Quarter    |   |   | 1.70   |   |   |   | 1.06 |   |
|    Third Quarter     |   |   | 1.59   |   |   |   | 1.08 |   |
|    Fourth Quarter    |   |   | 1.51   |   |   |   | 0.65 |   |

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|                                                       |   |                                                                                                                                                                                        |   |                                                                                                                                                                                                                                            |   | Number of securities                                                                                                                                                                                                                                    |
|------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                       |   |                                                                                                                                                                                        |   |                                                                                                                                                                                                                                            |   | remaining available for                                                                                                                                                                                                                                 |
|                                                       |   | Number of securities to be                                                                                                                                                                  |   | Weighted average                                                                                                                                                                                                                                |   | future issuance under                                                                                                                                                                                                                                   |
|                                                       |   | issued upon exercise of                                                                                                                                                                     |   | exercise price of                                                                                                                                                                                                                               |   | equity compensation plans                                                                                                                                                                                                                               |
|                                                       |   | outstanding options,                                                                                                                                                                        |   | outstanding options,                                                                                                                                                                                                                            |   | [excluding securities reflected                                                                                                                                                                                                                         |
| Plan Category                                              |   | warrants and rights                                                                                                                                                                         |   | warrants and rights                                                                                                                                                                                                                             |   | in column (a)]                                                                                                                                                                                                                                          |
|                                                       |   | (a)                                                                                                                                                                                         |   | (b)                                                                                                                                                                                                                                             |   | (c)                                                                                                                                                                                                                                                     |
| Equity compensation plans approved by security holders     |   |                            5,960,304                 |   |  $                                      2.20 |   |                                6,071,254                                                     |
| Equity compensation plans not approved by security holders |   |                               450,000 |   |  $                                      7.79 |   |                                          - |
|    Total                                    |   |                            6,410,304                 |   |  $                                      2.59 |   |                                6,071,254                                                     |

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|   Comparison of Five-Year Cumulative Total Return*                                 |
|-----------------------------------------------------------------------------------------|
|   Columbia Laboratories, Inc., Russell 2000 Index, Value Line Drug, And Peer Group |
|                                                                                    |

| * Assumes $100 invested at the close of trading on December 31, 2004 in Columbia Laboratories, Inc. Common Stock, Russell 2000 Index, Value Line Drug, and Peer Group. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                   |
|  Source: Value Line, Inc.                                                                                                                                         |
|                                                                                                                                                                   |   |   |   |   |   |   |
| Factual material is obtained from sources believed to be reliable, but the publisher is not responsible for any errors or omissions contained herein.                  |

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|                                      |                                                   | December 31                                                                       |                                                   |                                                                              |                                                   |                                                               |                                                   |                                                               |                                                   |
|-------------------------------------------|--------------------------------------------------------|-----------------------------------------------------------------------------------|--------------------------------------------------------|-----------------------------------------------------------------------------------|--------------------------------------------------------|--------------------------------------------------------------------|--------------------------------------------------------|--------------------------------------------------------------------|--------------------------------------------------------|
|                                      |                                                   | 2009(Restated)                                                                    | 2008                                                   |                                                                              | 2007                                                   |                                                               | 2006                                                   |                                                               | 2005                                                   |
| Statement of Operations Data:             |                                                   |                                                                              |                                                   |                                                                              |                                                   |                                                               |                                                   |                                                               |                                                   |   |
| (000's except per share data)             |                                                   |                                                                              |                                                   |                                                                              |                                                   |                                                               |                                                   |                                                               |                                                   |   |
|                                      |                                                   |                                                                              |                                                   |                                                                              |                                                   |                                                               |                                                   |                                                               |                                                   |   |
| Net revenues                              |                                                   |  $      32,196                                 |                                                   |  $      36,229                                 |                                                   |  $      29,627                  |                                                   |  $      17,393                  |                                                   |  $      22,041 |
| Gross profit                              |                                                   |         23,002                            |                                                   |         25,294                            |                                                   |         20,613             |                                                   |           9,573  |                                                   |         13,929 |
| Operating expenses                        |                                                   |         36,165                            |                                                   |         32,552                            |                                                   |         28,721             |                                                   |         20,733             |                                                   |         21,160 |
| Interest expense                          |                                                   |           8,851                 |                                                   |           7,882                 |                                                   |           7,946  |                                                   |           2,670  |                                                   |           3,491 |
| Net loss                                  |                                                   |        (21,870)                                |                                                   |        (14,077)                                |                                                   |        (14,292)                 |                                                   |        (12,485)                 |                                                   |        (10,104) |
| Loss per common share                     |                                                   |           (0.39)                |                                                   |           (0.27)                |                                                   |           (0.28) |                                                   |           (0.26) |                                                   |           (0.25) |
| Weighted average number of common shares  |                                                   |                                                                              |                                                   |                                                                              |                                                   |                                                               |                                                   |                                                               |
|   outstanding-basic and diluted |                                                   |         56,359                            |                                                   |         52,439                            |                                                   |         51,124             |                                                   |         48,089             |                                                   |         41,752 |
|                                      |                                                   |                                                                              |                                                   |                                                                              |                                                   |                                                               |                                                   |                                                               |                                                   |   |
|                                      |                                                   |                                                                              |                                                   |                                                                              |                                                   |                                                               |                                                   |                                                               |                                                   |   |
| Balance Sheet Data:                       |                                                   |                                                                              |                                                   |                                                                              |                                                   |                                                               |                                                   |                                                               |                                                   |   |
| (000's)                                   |                                                   |                                                                              |                                                   |                                                                              |                                                   |                                                               |                                                   |                                                               |                                                   |   |
|                                      |                                                   |                                                                              |                                                   |                                                                              |                                                   |                                                               |                                                   |                                                               |                                                   |   |
| Working capital (deficiency)              |                                                   |  $      10,198                                 |                                                   |  $      12,305                                 |                                                   |  $      14,461                  |                                                   |  $      23,410                  |                                                   |  $      (3,471) |
| Total assets                              |                                                   |         43,757                            |                                                   |         45,622                            |                                                   |         56,589             |                                                   |         65,839             |                                                   |         14,732 |
| Notes payable                             |                                                   |         32,966                            |                                                   |         30,075                            |                                                   |         27,536             |                                                   |         25,299             |                                                   |                - |
| Long-term portion of financing agreements |         15,234 |                                                                              |         13,126 |                                                                              |         11,426 |                                                               |         13,277 |                                                               |         10,921 |
| Redeemable preferred series C stock       |                                                   |              600 |                                                   |              775 |                                                   |           1,125  |                                                   |           3,200  |                                                   |           3,250 |
| Shareholders' equity (deficiency)         |                                                   |        (17,824)                                |                                                   |          (5,893)                     |                                                   |           2,015  |                                                   |         12,616             |                                                   |        (20,573) |

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| Issuance Date |   | Number ofWarrants Issued |      |   | Exercise Price |   | Expiration ofWarrants |   | Fair Value ofWarrants atIssuance Date |   |
|--------------------|--------|--------------------------|-----------|--------|---------------------|--------|-----------------------|--------|---------------------------------------|--------|
|               |   |                     |      |   |                |   |                  |   | (In thousands)                        |   |
| October 23, 2009   |   |                     | 5,450,000 |   |                | $      | 1.52                  |   | April 30, 2015                        |   | $ | 4,057 |   |

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| Consolidated Balance Sheet       |   | December 31, 2009        |     |   | December 31, 2009 |   |
|----------------------------------|--------|--------------------------|----------|--------|-------------------|--------|
| (in thousands)                   |   | (As previously reported) |     |   | (As restated)     |   |
|                             |   |                     |     |   |              |   |
| Current Liabilities:             |   |                     |     |   |              |   |
| Common stock warrant liability   |   | $                        | --       |   |              | $      | 4,057 |   |
| Total Current Liabilities        |   |                     | 8,395    |   |              |   | 12,453 |   |
|                             |   |                     |     |   |              |   |   |   |
| Total Liabilities                |   |                     | 56,924   |   |              |   | 60,982 |   |
|                             |   |                     |     |   |              |   |   |   |
| Stockholders’ Equity:      |   |                     |     |   |              |   |   |   |
| Additional paid-in-capital       |   |                     | 242,638  |   |              |   | 238,579 |   |
| Total Stockholders’ equity |   |                     | (13,766) |   |              |   | (17,824) |   |
|                             |   |                     |     |   |              |   |   |   |

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| ·   | Continued very strong presence at the annual meeting of the American Society of Reproductive Medicine in 2009. After three years of our strong presence at ASRM, we are receiving recognition as a major player in the market for infertility treatments. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Emphasis in our marketing materials to four new clinical trials added to our previous 16 clinical trials that have been conducted to compare CRINONE to other forms of progesterone, which provide us with a compelling case for the efficacy of CRINONE. We believe that this data shows that CRINONE is as effective as, and in some cases numerically more effective, than other delivery systems for progesterone. Of particular note is the completion of the well powered, prospective randomized, Harvard-affiliated, Brigham & Women’s study which concluded that CRINONE’s efficacy is statistically equivalent to painful IM therapy, with significant patient preference. This is consistent with the other six clinical trials that included an arm evaluating patient preference. Patients statistically preferred CRINONE over the competing product in all seven clinical trials. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | Meetings of our Infertility Advisory Committee of respected reproductive endocrinologists from around the U.S. who provide us with insight on how to best communicate to physicians and patients all the clinical information that is available for CRINONE. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Numerous Speaker Programs where key opinion leaders and a number of reproductive endocrinologists speak on behalf of CRINONE. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------|

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|  Progesterone Products | · | CRINONE 8% progesterone gel marketed and sold by us in the U.S.                                                                |
|-----------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------|
|                        |   |                                                                                                                           |
|                        | · | CRINONE 8% sold by us to Merck Serono for resale outside the U.S.                                                              |
|                        |   |                                                                                                                           |
|                        | · | PROCHIEVE 8% progesterone gel sold by us in the U.S.                                                                           |
|                        |   |                                                                                                                           |
|                        | · | PROCHIEVE 4% progesterone gel sold to Ascend for sale in the U.Spursuant to an agreement that will terminate on July 23, 2010. |
|                        |   |                                                                                                                           |   |
|  Other Products        | · | STRIANT testosterone buccal system marketed and sold by us in the U.S.                                                         |   |
|                        |   |                                                                                                                           |   |
|                        | · | STRIANT sold to MiPharm for resale in Italy.                                                                                   |   |
|                        |   |                                                                                                                           |   |
|                        | · | Replens® Vaginal Moisturizer sold to Lil’ Drug Store for resale outside the U.S.                                    |   |
|                        |   |                                                                                                                           |   |
|                        | · | RepHresh® Vaginal Gel sold to Lil’ Drug Store for resale on a worldwide basis.                                      |   |
|                        |   |                                                                                                                           |   |
|                        | · | Royalty and licensing revenues.                                                                                                |   |

----

| (In thousands, except |    | Percentage |    | Percentage |    |
|-----------------------|---------|------------|---------|------------|---------|
| percentages)          |    | from prior |    | from prior |    |
|                  | 2009    | year       | 2008    | year       | 2007    |
|                  |    |       |    |       |    |
| Net revenues          | $32,196 | (11%)      | $36,229 | 22%        | $29,628 |

----

| (In thousands, except      |    | Percentage |    | Percentage |    |
|----------------------------|---------|------------|---------|------------|---------|
| percentages)               |    | from prior |    | from prior |    |
|                       | 2009    | year       | 2008    | year       | 2007    |
|                       |    |       |    |       |    |
| Selling and distribution   | $11,982 | (6%)       | $12,685 | 25%        | $10,112 |
| As a percentage of revenue | 37%     | 2pp        | 35%     | 1pp        | 34%     |

| (In thousands, except      |    | Percentage |   | Percentage |   |
|----------------------------|---------|------------|--------|------------|--------|
| percentages)               |    | from prior |   | from prior |   |
|                       | 2009    | year       | 2008   | year       | 2007   |
|                       |    |       |   |       |   |
| General and administrative | $10,559 | 23%        | $8,615 | 10%        | $7,825 |
| As a percentage of revenue | 33%     | 8pp        | 25%    | (1)pp      | 26%    |

----

| (In thousands, except      |   | Percentage |   | Percentage |   |
|----------------------------|--------|------------|--------|------------|--------|
| percentages)               |   | from prior |   | from prior |   |
|                       | 2009   | year       | 2008   | year       | 2007   |
|                       |   |       |   |       |   |
| Research and development   | $8,579 | 38%        | $6,206 | 7%         | $5,779 |
| As a percentage of revenue | 27%    | 10pp       | 17%    | (3)pp      | 20%    |

----

----

|                                      |                                                  | For the Fiscal Years Ended December 31,                               |                                                  |                                                                            |                                                              |                                                                                        |
|-------------------------------------------|-------------------------------------------------------|-----------------------------------------------------------------------|-------------------------------------------------------|---------------------------------------------------------------------------------|-------------------------------------------------------------------|---------------------------------------------------------------------------------------------|
|                                      |                                                  | Total                                                                 |                                                  | 2010                                                                            |                                                              | 2011                                                                                        |   | 2012 |   | 2013 |   | Beyond |
|                                      |                                                  |                                                                  |                                                  |                                                                            |                                                              |                                                                                        |   |   |   |   |   |   |
| $40 million convertible notes             |                                                  |  $    40,000                                 |                                                  |  $          -            |                                                              |  $      40,000                                           |   |  $       - |   |  $       - |   |  $       - |
| Interest on $40 million convertible notes |         7,200 |                                                                  |         3,200 |                                                                            |           4,000 |                                                                                        |           - |   |           - |   |           - |
| PharmaBio Striant®                   |                                                  |                                                                  |                                                  |                                                                            |                                                              |                                                                                        |   |   |   |   |   |   |
|    finance agreement       |                                                  |       16,526                            |                                                  |            145           |                                                              |         16,381                                      |   |           - |   |           - |   |           - |
| Operating lease obligations               |                                                  |            936 |                                                  |            271           |                                                              |              245           |   |         233 |   |         187 |   |           - |
| Executive agreements                      |                                                  |         1,961                 |                                                  |         1,961                           |                                                              |                - |   |           - |   |           - |   |           - |
|    Total                   |                                                  |  $    66,623                                 |                                                  | $             5,577 |                                                              |  $      60,626                                           |   |  $              233 |   |  $             187 |   |  $       - |

----

|                 | 2009                                               |   | 2008                                                                            |   | 2007                                                                                   |
|----------------------|----------------------------------------------------|--------|---------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------|
| Cash flows:          |                                               |   |                                                                            |   |                                                                                   |
|                 |                                               |   |                                                                            |   |                                                                                   |
| Operating activities |  $(9,055,667)                                 |   |  $     (5,136,488)                                |   |  $      (7,914,299)                                 |
|                 |                                               |   |                                                                            |   |                                                                                   |
| Investing activities |        (49,853) |   |           (375,926)           |   |            (102,021)            |
|                 |                                               |   |                                                                            |   |                                                                                   |
| Financing activities |    11,332,531                       |   |             959,191 |   |              (40,803) |

----

----

----

----

----

----

----

----

| Name                           |   | Age            |   | Position with the Company                                    |
|--------------------------------|--------|----------------|--------|--------------------------------------------------------------|
| Frank C. Condella              |   | 55             |   | Interim Chief Executive Officer, Director                    |
| Lawrence A. Gyenes             |   | 59             |   | Senior Vice President, Chief Financial Officer and Treasurer |
| Michael McGrane                |   | 60             |   | Senior Vice President, General Counsel and Secretary         |
| Stephen G. Kasnet              |   | 64             |   | Chairman of the Board                                        |
| Edward A. Blechschmidt         |   | 57             |   | Vice Chairman of the Board                                   |
| Valerie L. Andrews             |   | 50             |   | Director                                                     |
| Anthony R. Campbell            |   | 62             |   | Director                                                     |
| James S. Crofton               |   | 58             |   | Director                                                     |
| Selwyn P. Oskowitz, M.D.  |   | 64   |   | Director                                                |

----

----

|   | • |   | Establishing the Company’s strategic plan;                                                 |
|--------|---------|--------|--------------------------------------------------------------------------------------------------|
|   | • |   | Establishing broad corporate policies and reviewing overall performance;                         |
|   | • |   | Overseeing Company management;                                                                   |
|   | • |   | Management succession;                                                                           |
|   | • |   | Review and approval of the annual operating plan prepared by management;                         |
|   | • |   | Monitoring performance in comparison to the operating plan;                                      |
|   | • |   | Consideration of topics relevant to the Company’s ability to carry out its strategic plan; |
|   | • |   | Review of the Company’s investor relations program; and                                    |
|   | • |   | Review and approval of proposed major commitments of corporate resources.                        |

----

| ·  | Promptly forward any letter that deals with the function of the Board or committees of the Board (or is otherwise appropriate for Board attention) to the director or directors to whom it is addressed; |
|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   Attempt to handle the inquiry directly if it relates to routine or ministerial matters, including requests for information about the Company and stock-related matters; or |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   Not forward the letter if it relates to an improper or irrelevant topic.  |
|--------------------------------------------------------------------------------------------------------|

----

| ·   | Serve as an independent and objective party to monitor the Company’s financial reporting process, including the review of the financial reports and other financial information provided by the Company to governmental or regulatory bodies, the public or other users, and internal control systems (including any material weaknesses, significant deficiencies and significant changes in internal controls reported to the Audit Committee by the outside auditor or management); |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Approve the engagement of the Company’s independent registered public accounting firm; |
|--------------------|----------------------------------------------------------------------------------------------|

| ·   | Review and appraise the audit efforts of the Company’s independent registered public accounting firm; |
|--------------------|-------------------------------------------------------------------------------------------------------------|

| ·   | Provide an open avenue of communication among the Company’s independent registered public accounting firm and financial and senior management of the Company; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Review financial press releases; |
|--------------------|----------------------------------|

| ·   | Review and address conflicts of interests of the Company’s directors and executive officers; and |
|--------------------|--------------------------------------------------------------------------------------------------------|

| ·   | Monitor, review, and recommend actions relating to transactions and dealings with related parties. |
|--------------------|----------------------------------------------------------------------------------------------------|

----

----

----

| ·   | Review and determination of the annual salary of the Company’s CEO and other officers; |
|--------------------|----------------------------------------------------------------------------------------------|

| ·   | Review and approval of the Company’s management incentive compensation policies and programs; and |
|--------------------|---------------------------------------------------------------------------------------------------------|

| ·   | Review and approval of equity compensation programs for the Company’s employees, directors and consultants, including grants of options, restricted stock and other awards thereunder. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | to afford our executives a competitive total rewards opportunity comparable to organizations with which we compete for executive talent; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | to allow us to attract and retain executives who can perform and succeed in our fast-paced and challenging environment; and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------|

| ·   | to deliver pay in a cost efficient manner that aligns employees’ rewards with stockholders’ long-term interests. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------|

| ·   | Financial – We evaluate measures of our financial performance, including revenue growth and other matters such as expense management. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Strategic – We monitor the performance of our executive officers in furthering the strategic success of the Company.  This includes achieving targeted revenues, completing recruitment in a clinical study, ensuring talent is effectively managed, and evaluating and establishing new partnership opportunities. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Operational – We include operational measures in our determination of success, including the quality of our leadership development and teamwork, and effective recruitment and retention of talented employees. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Component                    | Purpose/Description                                                                                                                                                                                                                                              |
|------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Base salary                  | Competitive fixed income for performance of day-to-day responsibilities, paid semi-monthly.                                                                                                                                                                      |
| Annual incentive bonus       | Rewards achievement of annual goals that support short-term (annual) business objectives, paid in cash after the relevant fiscal year.                                                                                                                           |
| Equity compensation          | Fosters a culture of ownership, aligns compensation with stockholder interests, and promotes long-term retention with the Company. Consists primarily of the following equity-based awards.                                                                      |
| · Stock options    | Provides compensation tied to the price of our Common Stock. The awards generally vest in increments of 25% on each of the first four anniversaries of the grant date and have no value if our Common Stock price is below the exercise price.                   |
| · Restricted stock | Provides compensation tied to the price of our Common Stock. Supports an ownership mentality, encouraging our executives to act in a manner consistent with the long-term interests of the Company and its stockholders. Restricted stock grants vest over time. |
| Benefits                     | Standard employee benefits, such as health, dental, vision, disability, and life insurance.                                                                                                                                                                      |
| Retirement Benefits          | Standard employee 401(k) plan. The Company matches 50% of the first 4% of contributions. The Company suspended the matching contribution in February 2009 and reinstated it on January 1, 2010.                                                                  |
| Perquisites                  | None                                                                                                                                                                                                                                                             |

----

| Name                  | Position                                                       | Ending 2009 Salary | 2010Salary | Percentage (%) Increase(Decrease) |
|-----------------------|----------------------------------------------------------------|--------------------|------------|-----------------------------------|
| Frank C. Condella Jr. | Interim CEO                                                    | $375,000           | $375,000   | None                              |
| Robert S. Mills       | President & Chief Operating Officer                        | $390,000           | $350,000   | (10%)                             |
| Lawrence Gyenes       | Senior Vice President, Chief Financial Officer & Treasurer | $325,000           | $325,000   | None                              |
| Michael McGrane       | Senior Vice President, General Counsel & Secretary         | $295,700           | $300,000   | 1.5%                              |

| ·   | The extent to which corporate goals are achieved or exceeded; |
|--------------------|---------------------------------------------------------------|

| ·   | The overall success of the Company throughout the year as determined by factors such as progress in key programs, execution of the strategic plan, and share price; and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Positive or negative events occurring throughout the year unrelated to pre-established corporate goals. |
|--------------------|---------------------------------------------------------------------------------------------------------|

----

| Company Goal                                                                                                                   | Weight | Results                                                                                                           | Achievement |
|--------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------|-------------|
| Achieve 2009 targeted revenue and earnings before interest, taxes, depreciation, amortization, and stock compensation expense. | 30%    | Goal partially met by earnings before interest, taxes, depreciation, amortization, and stock compensation expense | 20%         |
|                                                                                                                           |   |                                                                                                              |        |
| Complete enrollment in the PREGNANT Study byDecember 31, 2009.                                                                 | 30%    | Goal not met                                                                                                      | 0%          |
|                                                                                                                           |   |                                                                                                              |        |
| Ensure Company’s capital structure is sufficient for ongoing activities.                                                 | 20%    | Goal partially  met through financing activities                                                        | 5%          |
|                                                                                                                           |   |                                                                                                              |        |
| Advance business development initiatives.                                                                                      | 10%    | Goal met                                                                                                          | 10%         |
|                                                                                                                           |   |                                                                                                              |        |
| Strengthen Financial Operations and Investor Relations function.                                                               | 10%    | Goal met                                                                                                          | 10%         |
|                                                                                                                           |   |                                                                                                              |        |
| Total                                                                                                                          | 100%   |                                                                                                              | 45%         |

| Name            | Position                                                       | 2009 Target Bonus | Company Performance Factor | Individual Performance Factor | 2009 Bonus |
|-----------------|----------------------------------------------------------------|-------------------|----------------------------|-------------------------------|------------|
| Robert S. Mills | President & Chief Operating Officer                        | $195,000          | 45%                        | 90%                           | $78,000    |
| Lawrence Gyenes | Senior Vice President, Chief Financial Officer & Treasurer | $130,000          | 45%                        | 140%                          | $35,7501   |
| Michael McGrane | Senior Vice President, General Counsel & Secretary         | $118,280          | 45%                        | 100%                          | $53,226    |

----

----

|                                                        | Year   | Salary | Stock Awards1 | Option Awards2 | Non-Equity Incentive Plan Compen-sation | Bonus3 | Change in Pension Value and Nonqualified Deferred Compen-sation Earnings4 | All other compen-sation5 | Total   |
|-------------------------------------------------------------|--------|--------|---------------|----------------|-----------------------------------------|--------|---------------------------------------------------------------------------|--------------------------|---------|
| Frank C. Condella Jr.,6                                     | 2009   | $      | 17,067        | $              | -                                       | $      | 61,425                                                                    | $                        | -       | $ | - | $ | - | $ | 1,092 | $ | 79,584 |
|    Interim Chief Executive Officer                |   |   |          |           |                                    |   |                                                                      |                     |    |   |   |   |   |   |   |   |
| Robert S. Mills,7                                           | 2009   | $      | 390,000       | $              | 31,920                                  | $      | 130,806                                                                   | $                        | 78,000  | $ | - | $ | - | $ | 1,300 | $ | 632,026 |
| President and Chief Operating Officer                       | 2008   | $      | 383,933       | $              | 55,920                                  | $      | 263,837                                                                   | $                        | -       | $ | - | $ | - | $ | 4,600 | $ | 708,290 |
|                                                        | 2007   | $      | 351,332       | $              | 28,000                                  | $      | 281,220                                                                   | $                        | 123,760 | $ | - | $ | - | $ | 4,500 | $ | 788,812 |
| Lawrence A. Gyenes,8                                        | 2009   | $      | 150,208       | $              | -                                       | $      | 102,585                                                                   | $                        | 35,750  | $ | - | $ | - | $ | - | $ | 288,542 |
| Senior Vice President,Chief Financial Officer,and Treasurer |   |   |          |           |                                    |   |                                                                      |                     |    |
| James A. Meer,9                                             | 2009   | $      | 138,022       | $              | 23,275                                  | $      | 100,907                                                                   | $                        | -       | $ | - | $ | - | $ | 372,167 | $ | 634,371 |
| Senior Vice President,Chief Financial Officer,and Treasurer | 2008   | $      | 272,500       | $              | 40,775                                  | $      | 181,090                                                                   | $                        | -       | $ | - | $ | - | $ | 4,600 | $ | 498,965 |
|                                                        | 2007   | $      | 260,000       | $              | 19,600                                  | $      | 196,854                                                                   | $                        | 70,000  | $ | - | $ | - | $ | 3,444 | $ | 549,898 |
| Michael McGrane,                                            | 2009   | $      | 295,700       | $              | 23,275                                  | $      | 100,907                                                                   | $                        | 53,226  | $ | - | $ | - | $ | 986 | $ | 474,094 |
| Senior Vice President,General Counsel, and Secretary        | 2008   | $      | 294,867       | $              | 40,775                                  | $      | 182,305                                                                   | $                        | -       | $ | - | $ | - | $ | 4,600 | $ | 522,547 |
|                                                        | 2007   | $      | 288,883       | $              | 22,400                                  | $      | 224,976                                                                   | $                        | 76,000  | $ | - | $ | - | $ | 3,911 | $ | 616,170 |

| 1 | This column represents the grant date fair values for restricted stock granted in 2007, 2008 and 2009 to the named executive officers. The 2007 and 2008 stock award values were recalculated from amounts shown in prior annual reports to reflect their grant date fair values, as required by SEC rules effective for 2010. Pursuant to SEC rules, the amounts shown exclude the impact of estimated forfeitures related to service-based vesting conditions. The Company estimates that no forfeitures will occur. During the year ended December 31 2009, 37,625 restricted shares were forfeited for executive officers. The grant date fair values have been determined based on the assumptions and methodologies set forth in the Company’s 2009 Annual Report on Form 10-K (Note 9, Share-Based Payments).  These amounts reflect the Company’s accounting expense for these awards, and do not correspond to the actual value that will be recognized by the named executive officers. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | This column represents the grant date fair values of the stock options awarded in 2009, 2008 and 2007, respectively. The 2007 and 2008 option award values were recalculated from the amounts shown in prior annual reports to reflect the grant date fair value, as required by SEC rules effective for 2010. The grant date fair values have been determined based on the assumptions and methodologies set forth in the Company’s 2009 Annual Report (Note 9, Share-Based Payments). The Company estimates a 10% rate for forfeitures; during the year ended December 31 2009, 300,500 options were forfeited for executive officers. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3 | The Company does not pay a bonus separate from the awards under the Company’s Incentive Plan. |
|---|-----------------------------------------------------------------------------------------------------|

| 4 | The Company does not have a pension plan and does not offer nonqualified deferred compensation. |
|---|-------------------------------------------------------------------------------------------------|

| 5 | This column represents the Company’s matching contributions to  Messrs. Mills, McGrane and Meer's  401(k) savings account of 50% of the first 4% of pay. Mr. Condella receives an addition payment of $2,000  per  month in lieu of his receiving group medical, dental and vision benefits which are available to other executive employees. The Company does not provide  any additional perquisites for our executive officers. The Company does not pay other compensation and does not offer other perquisites. Mr. Meer received a severance payment from the Company of $371,250, due to his resignation from the Company effective June 11, 2009. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6 | Mr. Condella joined the Company on December 15, 2009. |
|---|-------------------------------------------------------|

| 7 | Mr. Gyenes joined the Company on July 15, 2009. |
|---|-------------------------------------------------|

| 8 | Mr. Meer left the Company on June 11, 2009 |
|---|--------------------------------------------|

----

|                                                |       | Estimated Possible Payouts Under Non-Equity Incentive Plan Awards1                    | All Other Stock Awards: Number of Shares of Stock or Units (#)     | All Other Option Awards: Number of Securities Underlying Options  (#) | Exercise or Base Price of Option Awards ($/share)2                                                                  | Grant Date Fair Value of Stock and Option Awards3 |
|-----------------------------------------------------|------------|---------------------------------------------------------------------------------------|--------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|---------------------------------------------------|
| Name of Executive                                   | Grant Date | Threshold                                                                             | Target                                                             | Maximum                                                                         |                                                                                                                |                                              |   |   |   |   |
| Mr. Condella,                                       |       |                                          |             |                                                                            |                                                                                                                |                                              |   |   |   |   |
| Interim Chief Executive Officer6                    | 12/11/2009 |        -                                           |        -                        |        -                                     |                    - |                                              | 100,000 | 5 | $0.87 | $61,425 |
| Mr. Mills,                                          |       |               - | $195,000                                                           | $292,500                                                                        |                                                                                                                |                                              |   |   |   |   |
| President & Chief  Operating Officer  | 3/11/2009  |                                                                                  |                                                               |                                                                            | 24,000                                                                                                              | 4                                                 |   |   |   | $31,920 |
|                                                | 3/11/2009  |                                                                                  |                                                               |                                                                            |                                                                                                                |                                              | 105,000 | 5 | $1.33 | $98,104 |
|                                                | 3/11/2009  |                                                                                  |                                                               |                                                                            |                                                                                                                |                                              | 35,000 | 5 | $1.33 | $32,701 |
| Mr. Meer,                                           |       |               - | $96,250                                                            | $144,375                                                                        |                                                                                                                |                                              |   |   |   |   |
| Senior Vice President & Chief Financial Officer | 3/11/2009  |                                                                                  |                                                               |                                                                            | 17,500                                                                                                              | 4                                                 |   |   |   | $23,275 |
|                                                | 3/11/2009  |                                                                                  |                                                               |                                                                            |                                                                                                                |                                              | 108,000 | 5 | $1.33 | $100,907 |
|                                                | 3/11/2009  |                                                                                  |                                                               |                                                                            |                                                                                                                |                                              |   |   |   |   |
| Mr. Gyenes,                                         |       |               - | $130,000                                                           | $195,000                                                                        |                                                                                                                |                                              |   |   |   |   |
| Senior Vice President & Chief Financial Officer | 7/15/2009  |                                                                                  |                                                               |                                                                            |                                                                                                                |                                              | 125,000 | 5 | $1.17 | $102,585 |
| Mr. McGrane,                                        |       |               - | $118,280                                                           | $177,420                                                                        |                                                                                                                |                                              |   |   |   |   |
| Senior Vice President & General Counsel         | 3/11/2009  |                                                                                  |                                                               |                                                                            | 17,500                                                                                                              | 4                                                 |   |   |   | $23,275 |
|                                                | 3/11/2009  |                                                                                  |                                                               |                                                                            |                                                                                                                |                                              | 81,000 | 5 | $1.33 | $75,680 |
|                                                | 3/11/2009  |                                                                                  |                                                               |                                                                            |                                                                                                                |                                              | 27,000 | 5 | $1.33 | $25,227 |

----

|                                                                           | Option Awards1    |                                                                 |                                                                    |                  | Stock Awards2          |                   |                                                    |                                                          |
|--------------------------------------------------------------------------------|-------------------|----------------------------------------------------------------------|-------------------------------------------------------------------------|-----------------------|------------------------|------------------------|---------------------------------------------------------|---------------------------------------------------------------|
| Name of Executive                                                              | Option Grant Date | Number of Securities Underlying Unexercised Options Exercisable | Number of Securities Underlying Unexercised Options Un-Exercisable | Option Exercise Price | Option Expiration Date | Stock Award Grant Date | Number of Shares or Units of Stock That Have Not Vested | Market Value of Shares or Units of Stock That Have Not Vested | Equity Incentive Plan Awards: Number of Unearned Shares or Units That Have Not Vested | Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares or Units That Have Not Vested |
| Mr. Condella   Interim Chief   Executive Officer | 12/11/2009        |                                                                 | 100,000                                                                 | $0.87                 | 12/11/2016             |                   |                                                    |                                                          |   |   |
| Mr. Mills                                                                      | 5/30/2001         | 50,000                                                               | -                                                                       | $5.90                 | 5/30/2011              |                   |                                                    |                                                          |   |   |
| President & Chief Operating Officer                                        | 10/18/2001        | 18,750                                                               | -                                                                       | $4.14                 | 10/18/2011             |                   |                                                    |                                                          |   |   |
|                                                                           | 1/18/2002         | 18,750                                                               | -                                                                       | $3.68                 | 1/18/2012              |                   |                                                    |                                                          |   |   |
|                                                                           | 3/14/2003         | 39,375                                                               | -                                                                       | $2.98                 | 3/14/2013              |                   |                                                    |                                                          |   |   |
|                                                                           | 10/28/2003        | 30,000                                                               | -                                                                       | $10.68                | 10/28/2013             |                   |                                                    |                                                          |   |   |
|                                                                           | 5/12/2004         | 60,000                                                               | -                                                                       | $4.05                 | 5/12/2014              |                   |                                                    |                                                          |   |   |
|                                                                           | 2/25/2005         | 206,350                                                              | -                                                                       | $2.05                 | 2/25/2015              |                   |                                                    |                                                          |   |   |
|                                                                           | 5/17/2005         | 65,000                                                               | -                                                                       | $2.75                 | 5/17/2012              |                   |                                                    |                                                          |   |   |
|                                                                           |              |                                                                 |                                                                    |                  |                   | 5/15/2006              | 2,500                                                   | $27,000                                                       |   |   |
|                                                                           | 5/15/2006         | 37,500                                                               | 12,500                                                                  | $4.34                 | 5/15/2013              |                   |                                                    |                                                          |   |   |
|                                                                           |              |                                                                 |                                                                    |                  | 2/28/2007              | 10,000                 | $10,800                                                 |                                                          |   |
|                                                                           | 2/28/2007         | 225,000                                                              | 75,000                                                                  | $1.42                 | 2/28/2014              |                   |                                                    |                                                          |   |   |
|                                                                           | 3/3/2008          | 32,500                                                               | 97,500                                                                  | $2.40                 | 3/3/2015               |                   |                                                    |                                                          |   |   |
|                                                                           | 3/3/2008          | 11,250                                                               | 33,750                                                                  | $3.00                 | 3/3/2015               |                   |                                                    |                                                          |   |   |
|                                                                           | 3/11/2009         |                                                                 | 140,000                                                                 | $1.33                 | 3/11/2016              |                   |                                                    |                                                          |   |   |
|                                                                           |              |                                                                 |                                                                    |                  |                   | 3/11/2009              | 24,000                                                  | $25,920                                                       |   |   |
| Mr. Gyenes                                                                     | 7/15/2009         |                                                                 | 125,000                                                                 | $1.17                 | 7/15/2016              |                   |                                                    |                                                          |   |   |
| Senior Vice President & Chief Financial Officer                            |              |                                                                 |                                                                    |                  |                   |                   |                                                    |                                                          |
| Mr. McGrane                                                                    | 1/2/2002          | 125,000                                                              |                                                                    | $3.44                 | 1/2/2012               |                   |                                                    |                                                          |   |   |
| Senior Vice President & General Counsel                                    | 1/2/2002          | 50,000                                                               |                                                                    | $5.94                 | 1/2/2012               |                   |                                                    |                                                          |   |   |
|                                                                           | 3/14/2003         | 43,875                                                               |                                                                    | $2.98                 | 3/14/2013              |                   |                                                    |                                                          |   |   |
|                                                                           | 5/12/2004         | 50,000                                                               |                                                                    | $4.05                 | 5/12/2014              |                   |                                                    |                                                          |   |   |
|                                                                           | 2/25/2005         | 12,435                                                               |                                                                    | $2.05                 | 2/25/2015              |                   |                                                    |                                                          |   |   |
|                                                                           | 5/17/2005         | 55,000                                                               |                                                                    | $2.75                 | 5/17/2012              |                   |                                                    |                                                          |   |   |
|                                                                           |              |                                                                 |                                                                    |                  |                   | 5/15/2006              | 1,719                                                   | $1,857                                                        |   |   |
|                                                                           | 5/15/2006         | 20,625                                                               | 6,875                                                                   | $4.34                 | 5/15/2013              |                   |                                                    |                                                          |   |   |
|                                                                           |              |                                                                 |                                                                    |                  |                   | 2/28/2007              | 8,000                                                   | $8,640                                                        |   |   |
|                                                                           | 2/28/2007         | 180,000                                                              | 60,000                                                                  | $1.42                 | 2/28/2014              |                   |                                                    |                                                          |   |   |
|                                                                           | 3/3/2008          | 26,000                                                               | 78,000                                                                  | $2.40                 | 3/3/2015               |                   |                                                    |                                                          |   |   |
|                                                                           | 3/3/2008          | 4,000                                                                | 12,000                                                                  | $3.00                 | 3/3/2015               |                   |                                                    |                                                          |   |   |
|                                                                           |              |                                                                 |                                                                    |                  |                   | 3/3/2008               | 13,125                                                  | $14,175                                                       |   |   |
|                                                                           | 3/11/2009         |                                                                 | 108,000                                                                 | $1.33                 | 3/11/2016              |                   |                                                    |                                                          |   |   |
|                                                                           |              |                                                                 |                                                                    |                  |                   | 3/11/2009              | 17,500                                                  | $18,900                                                       |   |   |

----

| Grant Date | Vesting Schedule                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 05/30/2001 | 25% vested on each of the first, second, third, and fourth anniversaries from date of grant.                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 10/18/2001 | 25% vested on each of the first, second, third, and fourth anniversaries from date of grant.                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 01/02/2002 | 25% vested on each of the first, second, third, and fourth anniversaries from date of grant.                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 01/02/2002 | 25% vested on each of the first, second, third, and fourth anniversaries from date of grant.                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 01/18/2002 | 25% vested on each of the first, second, third, and fourth anniversaries from date of grant.                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 03/14/2003 | 50% vested on each of the first and second anniversaries from date of grant.                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 10/28/2003 | 25% vested on each of the first, second, third, and fourth anniversaries from date of grant.                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 05/12/2004 | 25%vested on each of the first, second, third, and fourth anniversaries from date of grant.                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 02/25/2005 | 100% vested on the date of grant, except in the case of Mr. Mills for whom 43,750 options vested on each of the first, second, third, and fourth anniversaries from date of grant for 175,000 shares.                                                                                                                                                                                                                                                                                                                         |
| 05/17/2005 | 25% vested on each of the first, second, third, and fourth anniversaries from date of grant.                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 05/15/2006 | 25% vests on each of the first, second, third, and fourth anniversaries from date of grant.                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 02/28/2007 | 25% vested at date of grant and 25% vests on each of the first, second, and third anniversaries from date of grant.                                                                                                                                                                                                                                                                                                                                                                                                           |
| 03/03/2008 | 25% vests on each of the first, second, third, and fourth anniversaries from date of grant.                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 03/11/2009 | 25% vests on each of the first, second, third, and fourth anniversaries from date of grant.                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 07/15/2009 | 25% vests on each of the first, second, third, and fourth anniversaries from date of grant.                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 12/11/2009 | 100% vests on the first anniversary of the grant date; provided, however, that if a significant corporate transaction is consummated prior to the first anniversary, 50% of such options shall vest on the date such significant corporate transaction is consummated.  The determination of whether a significant corporate transaction has been consummated shall be made by the Board in a timely fashion and upon a written request by the executive to the Company’s Chairman of the Board of Directors. |

| Grant Date | Vesting Schedule                                                                             |
|------------|----------------------------------------------------------------------------------------------|
| 05/15/2006 | 25% vests on each of the first, second, third, and fourth anniversaries from date of grant.  |
| 02/28/2007 | 25% vests on each of the first , second, third, and fourth anniversaries from date of grant. |
| 03/03/2008 | 25% vests on each of the first, second, third, and fourth anniversaries from date of grant.  |
| 03/11/2009 | 25% vests on each of the first, second, third, and fourth anniversaries from date of grant.  |

----

| Name                  | Option Awards                             | Stock Awards                   |
|-----------------------|-------------------------------------------|--------------------------------|
|                  | Number of Shares Acquired on Exercise (#) | Value Realized On Exercise ($) | Number of Shares Acquired on Vesting (#) | Value Realized on Vesting ($) |
| Frank C. Condella Jr. | -                                         | -                              | 36,000(1)12,000(2) | $46,440$12,960 |
| Robert S. Mills       | -                                         | -                              | 2,500(3)5,000(4)6,000(5) | $3,750$6,850$9,180 |
| Lawrence Gyenes       | -                                         | -                              | - | - |
| James A. Meer         | -                                         | -                              | 3,500(4)4,375(5) | $4,795$6,694 |
| Michael McGrane       | -                                         | -                              | 1,719(3)4,000(4)4,375(5) | $2,579$5,480$6,694 |

| (1) | 36,000 shares of Common Stock vested on September 30, 2009, with a closing market price of $1.29. |
|-----|---------------------------------------------------------------------------------------------------|

| (2) | 12,000 shares of Common Stock vested on December 31, 2009, with a closing market price of $1.08. |
|-----|--------------------------------------------------------------------------------------------------|

| (3) | 2,500 and 1,719 shares of Common Stock vested for Mr. Mills and Mr. McGrane, respectively, on May 15, 2009, with a closing market price of $1.50 per share. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | 5,000, 3,500, and 4,000 shares of Common Stock vested for Mr. Mills, Mr. Meer and Mr. McGrane, respectively, on February 28, 2009 with a closing market price of $1.37 per share. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | 6,000, 4,375, and 4,375 shares of Common Stock vested for Mr. Mills, Mr. Meer and Mr. McGrane, respectively, on March 3, 2009, with a closing market price of $1.53 per share. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Severance Payment | Base salary plus the greater of such person’s cash bonus paid in the preceding year or his target bonus.                                                                                                 |
|-------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Benefits          | (i) For a period of twelve months following the termination date, continuation of medical, dental and vision coverage in effect on the termination date and (ii) payment for accrued and unused vacation days. |
| Salary            | Base salary through the date of termination.                                                                                                                                                                   |
| Expenses          | Reimbursement for any previously unreimbursed business expenses.                                                                                                                                               |

| Severance Payment | Base salary plus the greater of such person’s cash bonus paid in the preceding year or his target bonus.                                                                      |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Benefits          | (i) A lump sum payment equal to the value of the fringe benefits provided to him for the year prior to the change in control and (ii) payment for accrued and unused vacation days. |
| Options           | Full vesting of outstanding options.                                                                                                                                                |
| Restricted Stock  | Full vesting of all outstanding restricted stock grants.                                                                                                                            |
| Salary            | Base salary through the date of termination.                                                                                                                                        |
| Expenses          | Reimbursement for any previously unreimbursed business expenses.                                                                                                                    |

| 1 | The executive employment agreements define “cause” as (i) the failure or refusal to perform, in any material respect, duties faithfully and diligently;  (ii) gross negligence, recklessness or malfeasance; (iii)  any criminal act; (iv) any act of fraud or other material misconduct resulting or intending to result directly or indirectly in gain or personal enrichment at the expense of Company; (v)  any conduct relating to the business of Company that could reasonably be expected to have a materially detrimental effect on the business or financial condition of the Company; (vi) misconduct which materially discredits or damages Company, or violates Company’s policies or procedures, after Company has notified the executive of the actions Company deems to constitute non-compliance; and (vii) a material breach of obligations relating to confidential information, non-solicitation and non-competition.. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | The executive employment agreements define “good reason” as (i) a material diminution of responsibilities, or working conditions, or duties; (ii) a material diminution in base salary; (iii) a material negative change in the terms or status of an employment agreement; or (iv) an office relocation of more than 100 miles. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3 | The change-in-control provisions in the employment agreements for Messrs Mills and McGrane require the Company to pay them an excise tax gross up payment if an excise tax is imposed following a change-in-control. Mr. Gyenes’ employment agreement does not contain a similar provision. The Company currently estimates that no excise tax would be due. The executive employment agreements define “change in control” as a consolidation or merger of Company in which Company is not the continuing or surviving entity or pursuant to which shares of Company’s common stock would be converted to cash, securities or other property, other than a merger of Company in which the holders of Company’s common stock immediately prior to the merger have the same proportionate ownership of common stock of the surviving entity immediately after the merger, or (ii) a sale, lease, exchange or transfer of all, or substantially all, of the assets of the company; (b) a stockholder approval of a plan or proposal for the liquidation or dissolution of the Company; (c) a person shall become a beneficial owner of 40% or more of Company’s outstanding common stock; or (d) during any period of two consecutive years, individuals who at the beginning of such period constitute the entire Board shall cease for any reason to constitute a majority thereof unless the election, or the nomination for election by Company’s stockholders, of each new director was approved by a vote of at least 50% of the directors eligible to vote who were directors at the beginning of the period. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                          | Cash SeverancePayment1 | Vacation Pay2 | Continuation of Medical/Welfare Benefits(present value) | Acceleration and Continuation of Equity Awards (unamortized expense as of December 31, 2009)5,6 | Excise Tax Gross-up | Total Termination Benefits |
|-------------------------------------------------------------------------------------------------------------------------------|------------------------|---------------|---------------------------------------------------------|-------------------------------------------------------------------------------------------------|---------------------|----------------------------|
| Mr. Mills                                                                                                                     |
| · Voluntary resignation by employee without good reason                                                             | N/A                    | $30,000       | N/A                                                     | $0                                                                                              | N/A                 | $30,000                    |
| · Termination by the Company without cause or resignation by employee with good reason                              | $585,000               | $30,000       | $1,176(3)                                               | $0                                                                                              | N/A                 | $616,176                   |
| · Termination by the Company without cause or resignation by employee for good reason after change in control (CIC) | $585,000               | $30,000       | $5,330(4)                                               | $58,860                                                                                         | 7                   | $679,190                   |
| Mr. Gyenes                                                                                                                    |
| · Voluntary resignation by employee without good reason                                                             | N/A                    | $25,000       | N/A                                                     | $0                                                                                              | N/A                 | $25,000                    |
| · Termination by the Company without cause or resignation by employee with good reason                              | $455,000               | $25,000       | $15,674(3)                                              | $0                                                                                              | N/A                 | $495,674                   |
| · Termination by the Company without cause or resignation by employee for good reason after CIC                     | $455,000               | $25,000       | $18,476(4)                                              | $0                                                                                              | 7                   | $498,476                   |
| Mr. McGrane                                                                                                                   |
| · Voluntary resignation by employee without good reason                                                             | N/A                    | $22,746       | N/A                                                     | $0                                                                                              | N/A                 | $22,746                    |
| · Termination by the Company without cause or resignation by employee with good reason                              | $413,980               | $22,746       | N/A                                                     | $0                                                                                              | N/A                 | $436,726                   |
| · Termination by the Company without cause or resignation by employee for good reason after CIC                     | $413,980               | $22,746       | $3,305(4)                                               | $43,572                                                                                         | 7                   | $483,603                   |

| 1 | Payment of the amount of base salary and the greater of preceding year or target bonus based on such person’s 2009 base salary and target bonus. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | Assumes no vacation taken in year of termination, and a termination date of December 31, 2009.  Unused and accrued vacation benefits are paid in a lump sum. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3 | Represents Company paid costs in 2009 for medical, dental and vision insurance.  This benefit is for twelve months. |
|---|-------------------------------------------------------------------------------------------------------------------------------|

| 4 | Represents Company paid costs in 2009 for life, medical, dental, vision, and short- and long-term disability insurance, and 401(k) match. This benefit is paid in a lump sum. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5 | All stock options vest upon a change-in-control pursuant to the terms of the 1996 Plan and the 2008 Plan.  Represents the intrinsic value of both vested and unvested stock options on December 31, 2009, based on the difference between the closing market price of the Company’s Common Stock on December 31, 2009 ($1.08) and the applicable exercise price of all stock options. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6 | All restricted stock shares vest upon a change-in-control pursuant to the terms of the 1996 Plan and the 2008 Plan. Assumes the value of all vesting shares of restricted stock at $1.08 a share, the closing market price of the Company’s Common Stock on December 31, 2009. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7 | Mr. Mills’ and Mr. McGrane’s change-in-control employment agreements provide for the Company to pay them an excise tax gross up payment if an excise tax is imposed following a change-in-control. Mr. Gyenes’ employment agreement does not contain a similar provision. The Company currently estimates that no excise tax would be due. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Name of Director        | Fees Earned andPaid in Cash1 | StockAwards2 | OptionAwards3                               | Total ($) |
|-------------------------|------------------------------|--------------|---------------------------------------------|-----------|
| Stephen Kasnet          | $67,500                      | $25,000      | –       | $92,500   |
| Edward Blechschmidt     | $52,000                      | $25,000      | –       | $77,000   |
| Denis O’Donnell4  | $16,417                      | –      | –       | $16,417   |
| Valerie Andrews         | $45,000                      | $25,000      | –       | $70,000   |
| James Crofton           | $52,500                      | $25,000      | –       | $77,500   |
| Selwyn Oskowitz         | $38,583                      | $25,000      | –       | $63,583   |
| Anthony Campbell        | $44,917                      | $25,000      | $16,984                                     | $86,901   |
| Frank C. Condella, Jr.5 | $32,833                      | $107,599     | –       | $140,432  |

| 1 | This column reports the amount of cash compensation earned in 2009 for Board and Committee service. The Company currently provides to the non-employee directors reimbursement for expenses and the following compensation. The Board has reduced retainers paid in calendar year 2010 by 20%. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Annual Retainer, Chairman                                                                                                                                                                                                                                                                                                             |   | $      | 45,000 |              |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|-------------------|
|                                                                                                                                                                                                                                                                                                                                  |   |   |   |              |
| Annual Retainer, Vice Chairman                                                                                                                                                                                                                                                                                                        |   | $      | 30,000 |              |
|                                                                                                                                                                                                                                                                                                                                  |   |   |   |              |
| Annual Director Retainer (except Chairman and Vice Chairman)                                                                                                                                                                                                                                                                          |   | $      | 20,000 |              |
|                                                                                                                                                                                                                                                                                                                                  |   |   |   |              |
| Annual Committee Retainer (except Audit Committee)                                                                                                                                                                                                                                                                                    |   | $      | 1,000  |              |
|                                                                                                                                                                                                                                                                                                                                  |   |   |   |              |
| Annual Committee Retainer (Audit Committee)                                                                                                                                                                                                                                                                                           |   | $      | 2,000  |              |
|                                                                                                                                                                                                                                                                                                                                  |   |   |   |              |
| Additional Annual Retainer: Committee Chair (except Audit and Compensation Committees)                                                                                                                                                                                                                                                |   | $      | 1,000  |              |
|                                                                                                                                                                                                                                                                                                                                  |   |   |   |              |
| Additional Annual Retainer: Audit Committee Chair                                                                                                                                                                                                                                                                                     |   | $      | 15,000 |              |
|                                                                                                                                                                                                                                                                                                                                  |   |   |   |              |
| Additional Annual Retainer: Compensation Committee Chair                                                                                                                                                                                                                                                                              |   | $      | 6,000  |              |
|                                                                                                                                                                                                                                                                                                                                  |   |   |   |              |
| Meeting Attendance Fees (per day)                                                                                                                                                                                                                                                                                                     |   | $      | 1,500  |  (in person) |
|                                                                                                                                                                                                                                                                                                                                  |   | $      | 500    | (by telephone)    |
|                                                                                                                                                                                                                                                                                                                                  |   |   |   |              |
| Value of restricted stock granted upon election at annual meeting consists of a grant of the number of shares of restricted stock under the Company’s Long-term Performance Plans determined by dividing $25,000 by the fair market value of the Company’s Common Stock on the NASDAQ Global Market on the date of grant. |   | $      | 25,000 |              |

| 2 | This column represents the aggregate grant date fair value of awards of restricted stock granted during the 2009 fiscal year, computed in accordance with ASC 718. The aggregate grant date fair value for the restricted stock awards to each director upon his or her reelection to the Board at the 2009 Annual Meeting of Stockholders was $25,000. (See note 6 below for additional awards to Mr. Condella).  Each director had an aggregate of 8,620 shares of unvested restricted Common Stock outstanding at 2009 fiscal year end. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3 | This column represents the aggregate grant date fair value of option awards made to during the 2009 fiscal year, computed in accordance with ASC 718. Mr. Campbell was granted 25,000 stock options in 2009. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4 | Dr. Denis O’Donnell did not seek reelection to the Board at the 2009 Annual Meeting of Stockholders. |
|---|------------------------------------------------------------------------------------------------------------|

| 5 | The Board elected Frank C. Condella, Jr., as a director of the Company on March 10, 2009. Compensation in this table does not reflect compensation paid to him beginning December 15, 2009, as Interim Chief Executive Officer, which is reflected in the Summary  Compensation Table. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6 | In addition to Mr. Condella’s restricted stock award described in Note 2 above, he received the following restricted stock awards in 2009 (i) 16,556 shares on March 10, 2009, valued at $25,000, upon his initial election to the Board, and (ii) 12,000 shares on July 20, 2009, valued at $13,320; 12,000 shares on August 3, 2009, valued at $14,040; 12,000 shares on September 1, 2009, valued at $14,760; and 12,000 shares on October 1, 2009, valued at $15,480; each pursuant to his consulting agreement dated July 18, 2009, relating to partnering activities for the Company’s progesterone products. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Name                | Number of Shares Underlying Options |
|---------------------|-------------------------------------|
| Valerie Andrews     | 12,000                              |
| Edward Blechschmidt | 15,000                              |
| James Crofton       | 12,000                              |
| Stephen Kasnet      | 12,000                              |
| Selwyn Oskowitz     | 83,000                              |
| Anthony Campbell    | 25,000                              |

----

|   | each of Columbia’s directors and director nominees; |
|--------|-----------------------------------------------------------|

|   | each of Columbia’s named executive officers; and |
|--------|--------------------------------------------------------|

|   | all of Columbia’s current directors and named executive officers as a group. |
|--------|------------------------------------------------------------------------------------|

| Common Stock                                                                                             |                                  |                   |
|----------------------------------------------------------------------------------------------------------|---------------------------------------|------------------------|
| Name and Address ofBeneficial Owner                                                                      | Number of SharesBeneficiallyOwned (1) | Percentageof Total (2) |
| David M. Knott/Dorset ManagementCorporation (3)485 Underhill Boulevard, Suite 205Syosset, New York 11791 | 6,107,803                             | 8.9%                   |
| John P. Curran (4)230 Park AvenueNew York, New York 10017                                                | 6,600,272                             | 9.99%                  |
| Goldman Capital Management, Inc. (5)320 Park AvenueNew York, New York 10022                              | 4,585,350                             | 7.0%                   |
| Perry Corp. and Richard C. Perry (6)767 Fifth Avenue, 19th FloorNew York, NY 10153                       | 4,457,142                             | 6.8%                   |
| Directors and Named Executive Officers:                                                                  |                                  |                   |
| Valerie L. Andrews (7)(8)                                                                                | 48,981                                | *                      |
| Edward A. Blechschmidt (7)(8)                                                                            | 84,731                                | *                      |
| Anthony R. Campbell (8)(9)                                                                               | 6,381,642                             | 9.3%                   |
| Frank C. Condella, Jr.                                                                                   | 162,764                               | *                      |
| James S. Crofton (7)(8)                                                                                  | 48,981                                | *                      |
| Lawrence A. Gyenes                                                                                       | 50,000                                | *                      |
| Stephen G. Kasnet (7)(8)                                                                                 | 136,981                               | *                      |
| Michael McGrane (7)(8)                                                                                   | 754,259                               | 1.1%                   |
| Robert S. Mills (7)(8)                                                                                   | 1,079,474                             | 1.6%                   |
| Selwyn P. Oskowitz, M.D. (7)(8)                                                                          | 123,681                               | *                      |
| All Directors and Executive Officers as a Group (10 persons) (7) (8) (9)                                 | 8,871,494                             | 13.2%                  |

|   | _________________________ |
|--------|---------------------------|

| * | Signifies less than 1% |
|---|------------------------|

----

| (1) | Includes shares that may be acquired through the conversion of shares of convertible preferred stock or convertible debt or the exercise of warrants, stock options, or other rights, in each case, that are convertible or exercisable on or before June 26, 2010. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Based on 65,605,886 shares outstanding at April 27, 2010.  In calculating the percentage of ownership, all shares of Common Stock of which the identified person or group has the right to acquire beneficial ownership on or before June 26, 2010 are deemed to be outstanding for the purpose of computing the percentage of the shares of Common Stock owned by that person or group.  These shares are not, however, deemed to be outstanding for the purpose of computing the percentage of the shares of Common Stock owned by any other person or group. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Based on Schedule 13D/A, filed on March 18, 2010 with the SEC by Dorset Management Corporation and David M. Knott in which (a) Dorset Management Corporation reported beneficial ownership of 6,012,473 shares of Common Stock, which includes 2,152,381 shares of Common Stock issuable upon the conversion of the Notes and the conversion of shares of Series E Preferred Stock, and 657,002 shares of Common Stock that are issuable upon the exercise of warrants or options to purchase shares of Common Stock, and (b) David M. Knott reported beneficial ownership of the shares reported as beneficially owned by Dorset Management Corporation plus 95,330 additional shares of Common Stock. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Based on Schedule 13G/A filed on April 27, 2010 with the SEC by John P. Curran, which reported beneficial ownership of 6,600,272 shares of Common Stock.  The Schedule 13G reported that Mr. Curran does not have sole voting and dispositive power over any shares of Columbia’s Common Stock and has shared voting and dispositive power over 6,600,272 of Columbia’s Common Stock.  Mr. Curran disclaimed beneficial ownership in the securities reported in the Schedule 13G/A except to the extent of his pecuniary interest therein. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Based on a telephone conversation on March 17, 2010, between Frank C. Condella, Jr., Interim Chief Executive Officer of the Company, and Neil Goldman, President of Goldman Capital Management, Inc., in which Mr. Goldman reported beneficial ownership of 4,585,350 shares of Common Stock. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Based on a Schedule 13D filed on March 12, 2010 with the SEC by Perry Corp. and Richard C. Perry, which reported beneficial ownership of 4,457,142 shares of Common Stock issuable upon conversion of Notes or exercise of warrants to purchase Common Stock. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | Includes shares which may be acquired upon the exercise of options exercisable within 60 days after April 27, 2010, as follows:  Ms. Andrews, 12,000 shares; Mr. Blechschmidt, 15,000 shares; Mr. Campbell, 25,000 shares; Mr. Crofton, 12,000 shares; Mr. Kasnet, 12,000 shares; Mr. McGrane, 663,810 shares; Mr. Mills, 977,674 shares; and, Dr. Oskowitz, 83,000 shares. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8) | Includes restricted shares that were unvested on April 27, 2010, as follows:  Ms. Andrews, 19,230 shares; Mr. Blechschmidt, 19,230 shares; Mr. Campbell, 19,230 shares; Mr. Condella, 19,230  shares; Mr. Crofton, 19,230 shares; Mr. Kasnet, 19,230 shares; Mr. McGrane, 25,875 shares; Mr. Mills, 35,000 shares; and, Dr. Oskowitz, 19,230 shares. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (9) | Includes direct ownership of 122,265 shares of Common Stock and indirect ownership of 126,574 shares of Common Stock (including 100,000 shares that have been pledged as security).  Also includes beneficial ownership of the shares described in footnote 3 above reported as beneficially owned by Dorset Management Corporation and David M. Knott. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Series E Preferred Stock                                                                           |                                |                   |
|----------------------------------------------------------------------------------------------------|-------------------------------------|------------------------|
| Name and Address of Beneficial Owner                                                               | Number of Shares Beneficially Owned | Percentageof Total (1) |
| Perry Corp. and Richard C. Perry (2)767 Fifth Avenue, 19th FloorNew York, NY 10153                 | 35,000                              | 59.3%                  |
| Knott Partners Offshore Master Fund, L.P.485 Underhill Boulevard, Suite 205Syosset, New York 11791 | 9,580                               | 16.2%                  |
| Knott Partners, L.P.485 Underhill Boulevard, Suite 205Syosset, New York 11791                      | 7,980                               | 13.5%                  |
| Shoshone Partners, L.P.485 Underhill Boulevard, Suite 205Syosset, New York 11791                   | 5,180                               | 8.8%                   |

| (1) | Based on 59,000 shares of Series E Preferred Stock outstanding at April 27, 2010. |
|-----|----------------------------------------------------------------------------------------|

| (2) | Based on a Schedule 13D filed on March 12, 2010 with the SEC by Perry Corp. and Richard C. Perry, which reported beneficial ownership of 1,750,000 shares of Common Stock issuable upon conversion of Preferred Stock. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                   | 2009   |    | 2008   |   |
|------------------------|--------|---------|--------|--------|
| Audit Fees (1)         | $      | 420,700 |   |   | $ | 348,000 |   |
| Audit-Related Fees (2) |   | 16,000  |   |   |   | 2,500 |   |
| Tax Fees (3)           |   | 53,500  |   |   |   | - |   |
| All Other Fees         |   | -       |   |   |   | - |   |
| Total                  | $      | 490,200 |   |   |   | 350,500 |   |
|                   |   |    |   |   |   |   |   |

|   | (1) | Audit fees consisted of fees for audit work performed in the audit of financial statements, including the audit of our internal controls over financial reporting required by Section 404 of the Sarbanes-Oxley Act, as well as fees for quarterly reviews and registration statements. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Audit-related fees consisted principally of fees for consulting on financial accounting and reporting standards for certain transactions and related matters. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Tax fees consisted principally of fees for work performed with respect to tax compliance and tax planning. |
|--------|-----|------------------------------------------------------------------------------------------------------------|

----

| Exhibit No |  Description                                                                                                                                                |   |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| 3.1             | Restated Certificate of Incorporation of the Company, as amended (14)                                                                                            |   |
|            |                                                                                                                                                             |   |
| 3.2             | Amended and Restated By-laws of Company (3)                                                                                                                      |   |
|            |                                                                                                                                                             |   |
| 4.1             | Certificate of Designations, Preferences and Rights of Series C Convertible Preferred Stock of the Company, dated as of January 7, 1999 (3)                      |   |
|            |                                                                                                                                                             |   |
| 4.2             | Securities Purchase Agreement, dated as of January 7, 1999, between the Company and each of the purchasers named on the signature pages thereto (3)              |   |
|            |                                                                                                                                                             |   |
| 4.3             | Securities Purchase Agreement, dated as of January 19, 1999, among the Company, David M. Knott and Knott Partners, L.P. (3)                                      |   |
|            |                                                                                                                                                             |   |
| 4.4             | Form of Warrant to Purchase Common Stock (3)                                                                                                                     |   |
|            |                                                                                                                                                             |   |
| 4.5             | Warrant to Purchase Common Stock granted to James J. Apostolakis on September 23, 1999 (5)                                                                       |   |
|            |                                                                                                                                                             |   |
| 4.6             | Certificate of Designations of Series E Convertible Preferred Stock, filed May 10, 2005 with the Delaware Secretary of State (13)                                |   |
|            |                                                                                                                                                             |   |
| 4.7             | Preferred Stock Purchase Agreement, dated as of May 10, 2005, among Columbia Laboratories, Inc., Perry Partners L.P. and Perry Partners International, Inc. (13) |   |
|            |                                                                                                                                                             |   |
| 4.8             | Securities Purchase Agreement, dated March 10, 2006, by and between Columbia Laboratories, Inc. and the Purchasers listed on Exhibit A thereto (15)              |   |
|            |                                                                                                                                                             |   |
| 4.9*            | Form of Restricted Stock Agreement (17)                                                                                                                          |   |
|            |                                                                                                                                                             |   |
| 4.10*           | Form of Option Agreement (24)                                                                                                                                    |   |
|            |                                                                                                                                                             |   |
| 4.11            | Securities Purchase Agreement, dated December 21, 2006, by and between Columbia Laboratories, Inc. and the Purchasers listed on Exhibit A thereto (19) |   |
|            |                                                                                                                                                             |   |
| 10.1            | 1996 Long-term Performance Plan, as amended, of the Company (2)                                                                                                  |   |
|            |                                                                                                                                                             |   |
| 10.2            | Asset Purchase, License and Option Agreement between Bio-Mimetics, Inc. and Columbia Laboratories, Inc., dated November 22, 1989 (1)                             |   |
|            |                                                                                                                                                             |   |
| 10.4            | Settlement Agreement and Release dated as of March 16, 2000 between Columbia Laboratories (Bermuda) Ltd. and Lake Consumer Products, Inc. (5)                    |   |
|            |                                                                                                                                                             |   |
| 10.5            | License Agreement dated April 18, 2000, between the Company and Lil’ Drug Store Products, Inc. (6)                                                         |   |
|            |                                                                                                                                                             |   |
| 10.6            | Rights Agreement dated as of March 13, 2002, by and between Columbia Laboratories, Inc. and First Union National Bank, as Rights Agent (7)                       |   |
|            |                                                                                                                                                             |   |
| 10.7†     | Semi-Exclusive Supply Agreement dated May 7, 2002 between the Company and Mipharm S.p.A. (8)                                                                     |   |

----

| Exhibit No |  Description |
|-----------------|-------------------|

|         |                                                                                                                                                                                               |   |
|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| 10.8†  | Amended and Restated License and Supply Agreement dated June 4, 2002 between the Company and Ares Trading S.A.(8)                                                                             |   |
|         |                                                                                                                                                                                               |   |
| 10.9†  | Investment and Royalty Agreement dated March 5, 2003 between the Company and PharmaBio Development Inc. (9)                                                                                        |   |
|         |                                                                                                                                                                                               |   |
| 10.10† | License and Supply Agreement Dated May 27, 2003 between the Company and Mipharm S.p.A. (10)                                                                                                        |   |
|         |                                                                                                                                                                                               |   |
| 10.11*       | Form of Indemnification Agreement for Officers and Directors (11)                                                                                                                                  |   |
|         |                                                                                                                                                                                               |   |
| 10.12† | Asset Purchase Agreement Dated June 29, 2004, between the Company and Lil’ Drug Store Products, Inc. (12)                                                                                    |   |
|         |                                                                                                                                                                                               |   |
| 10.13† | Supply Agreement dated June 29, 2004, between the Company and Lil’ Drug Store Products, Inc.(12)                                                                                             |   |
|         |                                                                                                                                                                                               |   |
| 10.14        | Letter Agreement Supplement to STRIANT Investment and Royalty Agreement dated April 14, 2006 (16)                                                                                                  |   |
|         |                                                                                                                                                                                               |   |
| 10.15*       | Separation Agreement by and between Columbia Laboratories, Inc. and David L. Weinberg effective as of December 12, 2006 (18)                                                                       |   |
|         |                                                                                                                                                                                               |   |
| 10.16† | Agreement, dated December 21, 2006, by and among Ares Trading S.A., Serono, Inc., the Company and its wholly-owned subsidiary, Columbia Laboratories (Bermuda), Ltd (19)                      |   |
|         |                                                                                                                                                                                               |   |
| 10.17        | Amendment No. 1 to the Amended and Restated License and Supply Agreement, entered into December 21, 2006, by and between Ares Trading S.A and Columbia Laboratories (Bermuda), Ltd. (19) |   |
|         |                                                                                                                                                                                               |   |
| 10.18        | Description of the Registrant’s Compensation and Reimbursement Practices for Non-employee Directors. (20)                                                                                    |   |
|         |                                                                                                                                                                                               |   |
| 10.19        | Lease Agreement between Allwood Associates I and Columbia Laboratories, Inc., dated July 6, 2007 (20)                                                                                              |   |
|         |                                                                                                                                                                                               |   |
| 10.20† | License and Supply Agreement between Columbia Laboratories, Inc. and Ascend Therapeutics, Inc., dated September 27, 2007 (21)                                                                      |   |
|         |                                                                                                                                                                                               |   |
| 10.21        | Supply Agreement between Columbia Laboratories (Bermuda) Limited and Fleet Laboratories Limited, dated July 12, 1996 (22)                                                                          |   |
|         |                                                                                                                                                                                               |   |
| 10.22        | Packaging Agreement between Columbia Laboratories (Ireland) Ltd. and Maropack AG, dated October 28, 1993 (22)                                                                                      |   |
|         |                                                                                                                                                                                               |   |
| 10.23*       | Columbia Laboratories, Inc., 2008 Long-Term Incentive Plan (23)                                                                                                                                    |   |
|         |                                                                                                                                                                                               |   |
| 10.24*       | Columbia Laboratories, Inc., Amended and Restated Incentive Plan (24)                                                                                                                              |   |
|         |                                                                                                                                                                                               |   |
| 10.25*       | Form of Executive Change of Control Severance Agreement (24)                                                                                                                                       |   |
|         |                                                                                                                                                                                               |   |
| 10.26        | Stock Purchase Agreement, by and between the Company and Numoda Corporation, dated January 6, 2009 (25)                                                                                            |   |
|         |                                                                                                                                                                                               |   |
| 10.27*       | Amended and Restated Employment Agreement by and between Columbia Laboratories, Inc. and Robert S. Mills dated March 11, 2009 (24)                                                                 |   |
|         |                                                                                                                                                                                               |   |
| 10.28*       | Amended and Restated Employment Agreement by and between Columbia Laboratories, Inc. and Michael McGrane dated March 11, 2009 (29)                                                                 |   |
|         |                                                                                                                                                                                               |   |
| 10.29*       | Amended and Restated Employment Agreement by and between Columbia Laboratories, Inc. and James A Meer  dated March 11, 2009 (26)                                                         |   |
|         |                                                                                                                                                                                               |   |
|         |                                                                                                                                                                                               |   |
| 10.30*       | Separation and Release Agreement by and between Columbia Laboratories, Inc. and James A. Meer effective as of May 18, 2009 (26)                                                                    |   |
|         |                                                                                                                                                                                               |   |
| 10.31*       | Employment Agreement by and between Columbia Laboratories, Inc. and Lawrence Gyenes dated July 15, 2009 (27).                                                                                 |   |

----

| Exhibit No |  Description |
|-----------------|-------------------|

|    |                                                                                                                                                     |   |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| 10.32   | Second Amendment to Investment and Royalty Agreement, by and between the Company and PharmaBio Development, Inc., July 22, 2009 (28)                     |   |
|    |                                                                                                                                                     |   |
| 10.33   | Placement Agent Agreement, by and among the Company, Oppenheimer & Co., Inc. and The Benchmark Company, LLC, dated October 22, 2009 (30)             |   |
|    |                                                                                                                                                     |   |
| 10.34   | Form of Subscription Agreement (30)                                                                                                                      |   |
|    |                                                                                                                                                     |   |
| 10.35   | Form of Warrant to Purchase Common Stock (30)                                                                                                            |   |
|    |                                                                                                                                                     |   |
| 10.36*  | Columbia Laboratories Stock Ownership Guidelines for Officers and Directors (31)                                                                         |   |
|    |                                                                                                                                                     |   |
| 10.37   | Manufacturing and Supply Agreement between Fleet Laboratories and Columbia Laboratories (Bermuda), Ltd., dated December 8, 2009 (32)                     |   |
|    |                                                                                                                                                     |   |
| 10.38*  | Employment Agreement by and between Columbia Laboratories, Inc. and Frank C. Condella, Jr., dated December 11, 2009 (33)                            |   |
|    |                                                                                                                                                     |   |
| 10.39*  | Addendum to Amended and Restated Employment Agreement by and between Columbia Laboratories, Inc. and Robert S. Mills dated December 11, 2009 (33)        |   |
|    |                                                                                                                                                     |   |
| 10.40*  | Addendum to Executive Change in Control Severance Agreement by and between Columbia Laboratories, Inc. and Robert S. Mills dated December 11, 2009 (33). |   |
|    |                                                                                                                                                     |   |
| 14      | Code of Ethics of the Company (11)                                                                                                                       |   |
|    |                                                                                                                                                     |   |
| 21      | Subsidiaries of the Company (34)                                                                                                                         |   |
|    |                                                                                                                                                     |   |
| 23.1    | Consent of BDO USA, LLP (formerly BDO Seidman, LLP) (35)                                                                                                 |   |
|    |                                                                                                                                                     |   |
| 23.2    | Consent of McGladrey & Pullen, LLP (35)                                                                                                         |   |
|    |                                                                                                                                                     |   |
| 31(i).1 | Certification of Chief Executive Officer of the Company (35)                                                                                             |   |
|    |                                                                                                                                                     |   |
| 31(i).2 | Certification of Chief Financial Officer of the Company (35)                                                                                             |   |
|    |                                                                                                                                                     |   |
| 32.1    | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (35)   |   |
|    |                                                                                                                                                     |   |
| 32.2    | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (35)  |   |
|    |                                                                                                                                                     |
| † | Confidential treatment has been requested with respect to certain portions of this exhibit. Omitted portions have been filed separately with the SEC.    |
|    |                                                                                                                                                     |
| *       | Management contract or compensatory plans or arrangements                                                                                                |

----

| 1/     | Incorporated by reference to the Registrant's Registration Statement on Form S-1 (File No. 33-31962) declared effective on May 14, 1990 |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                    |
| 2/     | Incorporated by reference to the Registrant's Proxy Statement dated May 10, 2000                                                        |
|   |                                                                                                                                    |
| 3/     | Incorporated by reference to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 1998                     |
|   |                                                                                                                                    |
| 4/     | Incorporated by reference to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 1999                  |
|   |                                                                                                                                    |
| 5/     | Incorporated by reference to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 1999                     |
|   |                                                                                                                                    |
| 6/     | Incorporated by reference to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2000                  |
|   |                                                                                                                                    |
| 7/     | Incorporated by reference to the Registrant’s Current Report on Form 8-K, dated March 12, 2002                                    |
|   |                                                                                                                                    |
| 8/     | Incorporated by reference to the Registrant’s Quarterly Report on Form 10-Q dated August 14, 2002                                 |
|   |                                                                                                                                    |
| 9/     | Incorporated by reference to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2002                     |
|   |                                                                                                                                    |
| 10/    | Incorporated by reference to the Registrant’s Quarterly Report on Form 10-Q dated August 14, 2003                                 |
|   |                                                                                                                                    |
| 11/    | Incorporated by reference to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2003                     |
|   |                                                                                                                                    |
| 12/    | Incorporated by reference to the Registrant’s Quarterly Report on Form 10-Q dated August 4, 2004                                  |
|   |                                                                                                                                    |
| 13/    | Incorporated by reference to the Registrant’s Current Report on Form 8-K, dated May 12, 2005                                      |
|   |                                                                                                                                    |
| 14/    | Incorporated by reference to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2005                     |
|   |                                                                                                                                    |
| 15/    | Incorporated by reference to the Registrant’s Current Report on Form 8-K, dated March 16, 2006                                    |
|   |                                                                                                                                    |
| 16/    | Incorporated by reference to the Registrant’s Current Report on Form 8-K, dated April 17, 2006                                    |
|   |                                                                                                                                    |
| 17/    | Incorporated by reference to the Registrant’s Current Report on Form 8-K, dated May 17, 2006                                      |
|   |                                                                                                                                    |
| 18/    | Incorporated by reference to the Registrant’s Current Report on Form 8-K, dated December 15, 2006                                 |
|   |                                                                                                                                    |
| 19/    | Incorporated by reference to the Registrant’s Current Report on Form 8-K, dated December 26, 2006                                 |
|   |                                                                                                                                    |
| 20/    | Incorporated by reference to the Registrant’s Quarterly Report on Form 10-Q, dated August 8, 2007                                 |
|   |                                                                                                                                    |
| 21/    | Incorporated by reference to the Registrant’s Quarterly Report on Form 10-Q, dated November 8, 2007                               |
|   |                                                                                                                                    |
| 22/    | Incorporated by reference to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2007                     |
|   |                                                                                                                                    |
| 23/    | Incorporated by reference to the Registrant’s Proxy Statement dated April 8, 2008                                                 |
|   |                                                                                                                                    |
| 24/    | Incorporated by reference to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2008                     |
|   |                                                                                                                                    |
| 25/    | Incorporated by reference to the Registrant’s Current Report on Form 8-K, dated January 8, 2009                                   |
|   |                                                                                                                                    |
| 26/    | Incorporated by reference to the Registrant’s Current Report on Form 8-K, dated May 12, 2009                                      |
|   |                                                                                                                                    |
| 27/    | Incorporated by reference to the Registrant’s Current Report on Form 8-K, dated July 15, 2009                                     |
|   |                                                                                                                                    |
| 28/    | Incorporated by reference to the Registrant’s Current Report on Form 8-K, dated July 24, 2009                                     |
|   |                                                                                                                                    |
| 29/    | Incorporated by reference to the Registrant’s Quarterly Report on Form 10-Q dated August 6, 2009                                  |
|   |                                                                                                                                    |
| 30/    | Incorporated by reference to the Registrant’s Current Report on Form 8-K, dated October 23, 2009                                  |
|   |                                                                                                                                    |
| 31/    | Incorporated by reference to the Registrant’s Current Report on Form 8-K, dated November 17, 2009                                 |

----

|   |                                                                                                                |
|--------|---------------------------------------------------------------------------------------------------------------------|
| 32/    | Incorporated by reference to the Registrant’s Current Report on Form 8-K, dated December 8, 2009              |
|   |                                                                                                                |
| 33/    | Incorporated by reference to the Registrant’s Current Report Form 8-K, dated December 14, 2009                |
|   |                                                                                                                |
| 34/    | Incorporated by reference to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2009 |
|   |                                                                                                                |
| 35/    | Filed herewith                                                                                                      |

----

|                    |                        |                                                                                                                                                                                                                                                                                                                  |
|-------------------------|-----------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                    | COLUMBIA LABORATORIES, INC. |
|                    |                        |                                                                                                                                                                                                                                                                                                                  |
| Date: December 28, 2010 | By:                         | /s/ Lawrence A. Gyenes                                                |
|                    |                        | Lawrence A. Gyenes, Senior Vice President                                                                                                                                                                                                                                                                             |

|  /s/ | Frank C. Condella, Jr. |   |                                                                                                     | December 28, 2010 |
|-----------|------------------------|--------|----------------------------------------------------------------------------------------------------------|-------------------|
|      | Frank C. Condella, Jr. |   | Chief Executive Officer(Principal Executive Officer)                                                     |              |
|      |                   |   |                                                                                                     |              |
| /s/       | Lawrence A. Gyenes     |   |                                                                                                     | December 28, 2010 |
|      | Lawrence A. Gyenes     |   | Senior Vice President, Chief Financial Officer and Treasurer(Principal Financial and Accounting Officer) |              |
|      |                   |   |                                                                                                     |
| /s/       | Valerie L. Andrews     |   |                                                                                                     | December 28, 2010 |
|      | Valerie L. Andrews     |   | Director                                                                                                 |              |
|      |                   |   |                                                                                                     |              |
| /s/       | Edward A. Blechschmidt |   |                                                                                                     | December 28, 2010 |
|      | Edward A. Blechschmidt |   | Director                                                                                                 |              |
|      |                   |   |                                                                                                     |              |
| /s/       | Cristina Csimma        |   |                                                                                                     | December 28, 2010 |
|      | Cristina Csimma        |   | Director                                                                                                 |              |
|      |                   |   |                                                                                                     |              |
| /s/       | Stephen G. Kasnet      |   |                                                                                                     | December 28, 2010 |
|      | Stephen G. Kasnet      |   | Chairman of the Board of Directors                                                                       |              |
|      |                   |   |                                                                                                     |              |
| /s/       | G. Frederick Wilkinson |   |                                                                                                     | December 28, 2010 |
|      | G. Frederick Wilkinson |   | Director                                                                                                 |              |

----

|                                                                                                                    | Page             |
|-------------------------------------------------------------------------------------------------------------------------|------------------|
|                                                                                                                    |             |
| Reports of Independent Registered Public Accounting Firms                                                               | F-2– F-3   |
|                                                                                                                    |             |
| Consolidated Balance Sheets as of December 31, 2009 and 2008                                                            | F-4 – F-5  |
|                                                                                                                    |             |
| Consolidated Statements of Operations for the Three Years Ended December 31, 2009, 2008 and 2007                        | F-6              |
|                                                                                                                    |             |
| Consolidated Statements of Comprehensive Operations for the Three Years Ended December 31, 2009, 2008 and 2007          | F-7              |
|                                                                                                                    |             |
| Consolidated Statements of Shareholders' Equity (Deficiency) for the Three Years Ended December 31, 2009, 2008 and 2007 | F-8              |
|                                                                                                                    |             |
| Consolidated Statements of Cash Flows for the Three Years Ended December 31, 2009, 2008 and 2007                        | F-9 – F-10 |
|                                                                                                                    |             |
| Notes to Consolidated Financial Statements                                                                              | F-11             |

----

----

----

|                    |                                               |                                                          | 2009                                                          |                                                          | 2008                                                          |
|-------------------------|----------------------------------------------------|---------------------------------------------------------------|---------------------------------------------------------------|---------------------------------------------------------------|---------------------------------------------------------------|
|                    |                                               |                                                          |                                                          |                                                          |                                                          |
| CURRENT ASSETS          |                                               |                                                          |                                                          |
|                    | Cash and cash equivalents of which $12,225,732 and |  $  14,757,615                                 |                                                          |  $  12,497,382                                 |
|                    |                                               | $12,099,318 is interest bearing                               |                                                          |                                                          |                                                          |
|                    | Accounts receivable, net of allowances for         |       4,262,851                 |                                                          |       3,562,277                 |
|                    |                                               | doubtful accounts of $100,000 and $100,000                    |                                                          |                                                          |                                                          |
|                    | Inventories                                        |       2,532,722                 |                                                          |       2,377,139                 |
|                    | Prepaid expenses and other current assets          |       1,097,525                 |                                                          |       1,102,525                 |
|                    |                                               | Total current assets                                          |      22,650,713                      |                                                          |      19,539,323                      |
|                    |                                               |                                                          |                                                          |                                                          |                                                          |
|                    |                                               |                                                          |                                                          |                                                          |                                                          |
| PROPERTY AND EQUIPMENT  |                                               |                                                          |                                                          |
|                    | Machinery and equipment                            |       2,547,460                 |                                                          |       2,479,602                 |
|                    | Computer software                                  |          545,616 |                                                          |          534,302 |
|                    | Office equipment and furniture and fixtures        |          669,599 |                                                          |          698,920 |
|                    |                                               |                                                          |       3,762,675                 |                                                          |       3,712,824                 |
|                    |                                               | Less-accumulated depreciation and amortization                |      (3,071,196)                     |                                                          |      (2,890,967)                     |
|                    |                                               |                                                          |          691,479 |                                                          |          821,857 |
| INTANGIBLE ASSETS - NET |      18,770,332           |                                                          |      23,815,060                      |
| OTHER ASSETS            |       1,644,695      |                                                          |       1,446,249                 |
|                    |                                               |                                                          |                                                          |                                                          |                                                          |
| TOTAL ASSETS            |  $  43,757,219                      |                                                          |  $  45,622,489                                 |

----

|                                            |                                                                      |                                                           |                                                                      | 2009                                                                                                                            |                                                                      | 2008                                                                                                                      |
|-------------------------------------------------|---------------------------------------------------------------------------|----------------------------------------------------------------|---------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|
|                                            |                                                                      |                                                           |                                                                      | (As Restated)                                                                                                              |                                                                      |                                                                                                                      |
| CURRENT LIABILITIES:                            |                                                                      |                                                           |                                                                      |
|                                            |                                                                      |                                                           |                                                                      |                                                                                                                            |                                                                      |                                                                                                                      |
|                                            | Current portion of financing agreements                                   |  $        144,897 |                                                                      |  $        168,034                                                                  |
|                                            | Accounts payable                                                          |         3,662,091      |                                                                      |         2,085,463                                                                       |
|                                            | Accrued expenses                                                          |         4,588,088      |                                                                      |         4,980,643                                                                       |
|                                            | Common stock warrant liability                                            |         4,057,817      |                                                                      |                      - |
|                                            |                                                                      | Total current liabilities                                      |        12,452,893                      |                                                                                                                            |         7,234,140                 |
| NOTES PAYABLE                                   |        32,965,863                      |                                                           |        30,074,966                      |
| DEFERRED REVENUE                                |            328,367 |                                                           |            305,433 |
| LONG-TERM PORTION OF FINANCING AGREEMENTS       |        15,234,406                      |                                                           |        13,126,210                      |
| TOTAL LIABILITIES                               |        60,981,529                      |                                                           |        50,740,749                      |
|                                            |                                                                      |                                                           |                                                                      |                                                                                                                            |                                                                      |                                                                                                                      |
| COMMITMENTS AND CONTINGENCIES                   |                                                                      |                                                           |                                                                      |
|                                            |                                                                      |                                                           |                                                                      |                                                                                                                            |                                                                      |                                                                                                                      |
|                                            |                                                                      | Contingently redeemable series C preferred stock               |            600,000 |                                                                                                                            |            775,000 |
|                                            |                                                                      |                                                           | 600 and 775 shares issued and outstanding in 2009 and                     |                                                                                                                            |                                                                      |                                                                                                                      |
|                                            |                                                                      |                                                           | 2008, respectively (liquidation preference of $600,000 and                |                                                                                                                            |                                                                      |                                                                                                                      |
|                                            |                                                                      |                                                           | $775,000)                                                                 |                                                                                                                            |                                                                      |                                                                                                                      |
|                                            |                                                                      |                                                           |                                                                      |                                                                                                                            |                                                                      |                                                                                                                      |
| SHAREHOLDERS' DEFICIENCY:                       |                                                                      |                                                           |                                                                      |
|                                            | Preferred stock, $.01 par value; 1,000,000 shares authorized              |                                                           |                                                                      |                                                                                                                            |
|                                            |                                                                      | Series B convertible preferred stock, 130 shares issued        |                                                                      |                                                                                                                            |                                                                      |
|                                            |                                                                      |                                                           | and outstanding                                                           |                                                                                                                            |                                                                      |                                                                                                                      |
|                                            |                                                                      |                                                           | (liquidation preference of $13,000)                                       |                     1       |                                                                      |                     1 |
|                                            |                                                                      | Series E convertible preferred stock 59,000 shares             |                                                                      |                                                                                                                            |                                                                      |
|                                            |                                                                      |                                                           | issued and outstanding                                                    |                                                                                                                            |                                                                      |                                                                                                                      |
|                                            |                                                                      |                                                           | (liquidation preference of $5,900,000)                                    |                  590                       |                                                                      |                  590                 |
| Common Stock $.01 par value; 100,000,000 shares |                                                                      |                                                           |                                                                      |
|                                            |                                                                      |                                                           | authorized; 65,761,986 and 54,007,579 shares issued                       |            657,619                                                       |                                                                      |            540,076                                                 |
| Capital in excess of par value                  |      238,579,829                                 |                                                           |      228,686,942                                 |
| Less cost of 131,935 and 63,644 treasury shares |          (280,813)           |                                                           |          (189,229)           |
| Accumulated deficit                             |    (256,979,263)                                           |                                                           |    (235,109,705)                                           |
| Accumulated other comprehensive income          |            197,727 |                                                           |            178,065 |
| Shareholders' deficiency                        |      (17,824,310)                                |                                                           |        (5,893,260)                     |
| TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIENCY  |  $    43,757,219                                 |                                                           |  $    45,622,489                                 |

----

|                         |                                                                      |                                                                     | 2009                                                                                  |                                                                      | 2008                                                                      |                                                                      | 2007                                                          |   |
|------------------------------|---------------------------------------------------------------------------|--------------------------------------------------------------------------|---------------------------------------------------------------------------------------|---------------------------------------------------------------------------|---------------------------------------------------------------------------|---------------------------------------------------------------------------|---------------------------------------------------------------|--------|
|                         |                                                                      |                                                                     |                                                                                  |                                                                      |                                                                      |                                                                      |                                                          |   |
| NET REVENUES                 |  $  32,196,381                                             |                                                                     |  $    36,229,114                                             |                                                                      |  $  29,627,638                                             |                                                                      |
|                         |                                                                      |                                                                     |                                                                                  |                                                                      |                                                                      |                                                                      |                                                          |   |
| COST OF REVENUES             |        9,194,538                       |                                                                     |        10,934,615                                  |                                                                      |       9,014,540                             |                                                                      |
|                         | Gross profit                                                              |      23,001,843                                 |                                                                                  |        25,294,499                      |                                                                      |     20,613,098                                        |                                                          |
|                         |                                                                      |                                                                     |                                                                                  |                                                                      |                                                                      |                                                                      |                                                          |   |
| OPERATING EXPENSES:          |                                                                      |                                                                     |                                                                                  |                                                                      |                                                                      |                                                                      |
|                         | Selling and distribution                                                  |      11,982,229                                 |                                                                                  |        12,685,618                      |                                                                      |     10,111,796                                        |                                                          |
|                         | General and administrative                                                |      10,559,298                                 |                                                                                  |         8,615,381                 |                                                                      |       7,824,741                             |                                                          |
|                         | Research and development                                                  |        8,579,035                      |                                                                                  |         6,206,157                 |                                                                      |       5,778,641                             |                                                          |
|                         | Amortization of licensing right                                           |        5,044,728                      |                                                                                  |         5,044,728                 |                                                                      |       5,005,768                             |                                                          |
|                         |                                                                      | Total operating expenses                                                 |      36,165,290                                              |                                                                      |        32,551,884                      |                                                                      |     28,720,946                            |   |
|                         |                                                                      |                                                                     |                                                                                  |                                                                      |                                                                      |                                                                      |                                                          |   |
|                         |                                                                      | Loss from operations                                                     |    (13,163,447)                                                        |                                                                      |        (7,257,385)                     |                                                                      |      (8,107,848)                     |   |
|                         |                                                                      |                                                                     |                                                                                  |                                                                      |                                                                      |                                                                      |                                                          |   |
| OTHER INCOME (EXPENSE):      |                                                                      |                                                                     |                                                                                  |                                                                      |                                                                      |                                                                      |
|                         | Interest income                                                           |            33,830 |                                                                                  |            299,805 |                                                                      |          979,953             |                                                          |
|                         | Interest expense                                                          |      (8,851,253)                                |                                                                                  |        (7,882,183)                     |                                                                      |      (7,946,048)                                 |                                                          |
|                         | Other, net                                                                |         (243,720)                |                                                                                  |          (100,516)           |                                                                      |            (5,440) |                                                          |
|                         |                                                                      |                                                                     |      (9,061,143)                                             |                                                                      |        (7,682,894)                     |                                                                      |      (6,971,535)                     |   |
|                         |                                                                      |                                                                     |                                                                                  |                                                                      |                                                                      |                                                                      |                                                          |   |
|                         |                                                                      | Net loss before taxes                                                    |    (22,224,590)                                                        |                                                                      |      (14,940,279)                                |                                                                      |    (15,079,383)                                |   |
|                         |                                                                      | State income tax benefits                                                |          355,032                         |                                                                      |            863,770 |                                                                      |          787,593 |   |
|                         |                                                                      | Net loss                                                                 |  $ (21,869,558)                                                                  |                                                                      |  $  (14,076,509)                                           |                                                                      |  $(14,291,790)                                           |   |
|                         |                                                                      |                                                                     |                                                                                  |                                                                      |                                                                      |                                                                      |                                                          |   |
|                         |                                                                      |                                                                     |                                                                                  |                                                                      |                                                                      |                                                                      |                                                          |   |
| LOSS PER COMMON              |                                                                      |                                                                     |                                                                                  |                                                                      |                                                                      |                                                                      |
| SHARE - BASIC AND DILUTED    |  $          (0.39) |                                                                     |  $            (0.27) |                                                                      |  $         (0.28)       |                                                                      |
|                         |                                                                      |                                                                     |                                                                                  |                                                                      |                                                                      |                                                                      |                                                          |   |
| WEIGHTED - AVERAGE NUMBER OF |                                                                      |                                                                     |                                                                                  |                                                                      |                                                                      |                                                                      |
| COMMON SHARES OUTSTANDING    |                                                                      |                                                                     |                                                                                  |                                                                      |                                                                      |                                                                      |
|                         | BASIC AND DILUTED                                                         |      56,358,843                                 |                                                                                  |        52,439,327                      |                                                                      |     51,124,266                                        |                                                          |

----

|                                           |                                                                     |                 |                                                                       |                            |                                                                          |                |   |
|------------------------------------------------|--------------------------------------------------------------------------|----------------------|----------------------------------------------------------------------------|---------------------------------|-------------------------------------------------------------------------------|---------------------|--------|
|                                           |                                                                     |                 | 2009                                                                       |                            | 2008                                                                          |                | 2007   |
| NET LOSS                                       |                                                                     |  $ (21,869,558) |                                                                       |  $  (14,076,509) |                                                                          |  $(14,291,790) |
|                                           |                                                                     |                 |                                                                       |                            |                                                                          |                |   |
| Other comprehensive income (loss):             |                                                                     |                 |                                                                       |                            |                                                                          |
|    Foreign currency translation |            19,662 |                 |            (29,539) |                            |             8,560 |
|                                           |                                                                     |                 |                                                                       |                            |                                                                          |                |   |
| Comprehensive loss                             |                                                                     |  $ (21,849,896) |                                                                       |  $  (14,106,048) |                                                                          |  $(14,283,230) |

----

|                                                                 |                                                            | Series B ConvertiblePreferred Stock                             | Series E ConvertiblePreferred Stock                | Common Stock                                       |                                 | Capital inExcess ofPar Value                               | TreasuryStock                            | AccumulatedDeficit                                      | Accumulated OtherComprehensiveIncome (Loss) | Total                                                                   |
|----------------------------------------------------------------------|-----------------------------------------------------------------|-----------------------------------------------------------------|----------------------------------------------------|----------------------------------------------------|--------------------------------------|------------------------------------------------------------|------------------------------------------|---------------------------------------------------------|---------------------------------------------|-------------------------------------------------------------------------|
|                                                                 |                                                            | Number ofShares                                                 | Amount                                             | Number ofShares                                    | Amount                               | Number ofShares                                            | Amount                                   |                                                    |                                        |                                                                    |   |   |   |   |   |   |   |
|                                                                 |                                                            |                                                            |                                               |                                               |                                 |                                                       |                                     |                                                    |                                        |                                                                    |   |   |   | (As Restated) |   |   |   |   |   |   |   |
| Balance, December 31, 2006                                           |                                                            |           130 |                                               |  $       1 |                                 |      69,000                       |                                     |  $     690                |                                        |    49,694,213                                            |   |  $    496,942 |   |  $   218,687,977 |   |  $   (26,880) |   |  $   (206,741,406) |   |  $              199,044 |   |  $       12,616,368 |
| Options exercised                                                    |                                                            |                                                            |                                               |                                               |                                 |                                                       |                                     |                                                    |                                        |           43,050      |   |               431 |   |                62,810 |   |   |   |   |   |   |   |                  63,241 |
| Share based compensation expense                                     |                                                            |                                                            |                                               |                                               |                                 |                                                       |                                     |         155,690 |                                        |            1,557 |   |           1,646,365 |   |   |   |   |   |   |   |             1,647,922 |
| Conversion of Series C Preferred Stock                               |                                                            |                                                            |                                               |                                               |                                 |                                                       |                                     |      1,564,548                 |                                        |          15,645            |   |           2,059,355 |   |   |   |   |   |   |   |             2,075,000 |
| Conversion of Series E Preferred Stock                               |                                                            |                                                            |                                               |      (5,453)              |                                 |          (55) |                                     |         272,650 |                                        |            2,727 |   |                 (2,672) |   |   |   |   |   |   |   |                           - |
| Purchase of treasury stock                                           |                                                            |                                                            |                                               |                                               |                                 |                                                       |                                     |                                                    |                                        |                                                                    |   |   |   |   |   |       (27,150) |   |   |   |   |   |                (27,150) |
| Dividends on preferred stock                                         |                                                            |                                                            |                                               |                                               |                                 |                                                       |                                     |                                                    |                                        |                                                                    |   |   |               (76,894) |   |   |   |   |   |   |   |                (76,894) |
| Translation adjustment                                               |                                                            |                                                            |                                               |                                               |                                 |                                                       |                                     |                                                    |                                        |                                                                    |   |   |   |   |   |   |   |   |   |                      8,560 |   |                    8,560 |
| Net loss                                                             |                                                            |                                                            |                                               |                                               |                                 |                                                       |                                     |                                                    |                                        |                                                                    |   |   |   |   |   |   |   |         (14,291,790) |   |   |   |         (14,291,790) |
| Balance, December 31, 2007                                           |                                                            |           130 |                                               |  $       1 |                                 |      63,547                       |                                     |  $     635                |                                        |    51,730,151                                            |   |  $    517,302 |   |  $   222,376,941 |   |  $   (54,030) |   |  $   (221,033,196) |   |  $              207,604 |   |  $         2,015,257 |
| Issuance of common stock                                             |                                                            |                                                            |                                               |                                               |                                 |                                                       |                                     |                                                    |                                        |      1,333,000                                 |   |          13,330 |   |           4,082,298 |   |   |   |   |   |   |   |             4,095,628 |
| Options exercised                                                    |                                                            |                                                            |                                               |                                               |                                 |                                                       |                                     |                                                    |                                        |         318,149                 |   |            3,182 |   |              591,673 |   |   |   |   |   |   |   |                594,855 |
| Conversion of Series C Preferred Stock                               |                                                            |                                                            |                                               |                                               |                                 |                                                       |                                     |         235,426 |                                        |            2,354 |   |              347,646 |   |   |   |   |   |   |   |                350,000 |
| Conversion of Series E Preferred Stock                               |                                                            |                                                            |                                               |      (4,547)              |                                 |          (45) |                                     |         227,350 |                                        |            2,273 |   |                 (2,228) |   |   |   |   |   |   |   |                           - |
| Share based compensation expense                                     |                                                            |                                                            |                                               |                                               |                                 |                                                       |                                     |         163,503 |                                        |            1,635 |   |           1,345,756 |   |   |   |   |   |   |   |             1,347,391 |
| Purchase of treasury stock                                           |                                                            |                                                            |                                               |                                               |                                 |                                                       |                                     |                                                    |                                        |                                                                    |   |   |   |   |   |     (135,199) |   |   |   |   |   |              (135,199) |
| Dividends on preferred stock                                         |                                                            |                                                            |                                               |                                               |                                 |                                                       |                                     |                                                    |                                        |                                                                    |   |   |               (55,144) |   |   |   |   |   |   |   |                (55,144) |
| Translation adjustment                                               |                                                            |                                                            |                                               |                                               |                                 |                                                       |                                     |                                                    |                                        |                                                                    |   |   |   |   |   |   |   |   |   |                  (29,539) |   |                (29,539) |
| Net loss                                                             |                                                            |                                                            |                                               |                                               |                                 |                                                       |                                     |                                                    |                                        |                                                                    |   |   |   |   |   |   |   |         (14,076,509) |   |   |   |         (14,076,509) |
| Balance, December 31, 2008                                           |                                                            |           130 |                                               |  $       1 |                                 |      59,000                       |                                     |  $     590                |                                        |    54,007,579                                            |   |  $    540,076 |   |  $   228,686,942 |   |  $ (189,229) |   |  $   (235,109,705) |   |  $              178,065 |   |  $       (5,893,260) |
| Issuance of common stock                                             |                                                            |                                                            |                                               |                                               |                                 |                                                       |                                     |                                                    |                                        |    11,351,807                                            |   |        113,517 |   |           7,284,969 |   |   |   |   |   |   |   |             7,398,486 |
| Issuance of warrants                                                 |                                                            |                                                            |                                               |                                               |                                 |                                                       |                                     |                                                    |                                        |                                                                    |   |   |   |              719,904 |   |   |   |   |   |   |   |                719,904 |
| Conversion of Series C Preferred Stock                               |                                                            |                                                            |                                               |                                               |                                 |                                                       |                                     |         117,449 |                                        |            1,174 |   |              173,826 |   |   |   |   |   |   |   |                175,000 |
| Share based compensation expense                                     |                                                            |                                                            |                                               |                                               |                                 |                                                       |                                     |         285,151 |                                        |            2,852 |   |           1,746,376 |   |   |   |   |   |   |   |             1,749,228 |
| Purchase of treasury stock                                           |                                                            |                                                            |                                               |                                               |                                 |                                                       |                                     |                                                    |                                        |                                                                    |   |   |   |   |   |       (91,584) |   |   |   |   |   |                (91,584) |
| Dividends on preferred stock                                         |                                                            |                                                            |                                               |                                               |                                 |                                                       |                                     |                                                    |                                        |                                                                    |   |   |               (32,188) |   |   |   |   |   |   |   |                (32,188) |
| Translation adjustment                                               |                                                            |                                                            |                                               |                                               |                                 |                                                       |                                     |                                                    |                                        |                                                                    |   |   |   |   |   |   |   |   |   |                    19,662 |   |                  19,662 |
| Net loss                                                             |                                                            |                                                            |                                               |                                               |                                 |                                                       |                                     |                                                    |                                        |                                                                    |   |   |   |   |   |   |   |         (21,869,558) |   |   |   |         (21,869,558) |
| Balance, December 31, 2009,     as restated |           130 |                                                            |  $       1 |                                               |      59,000 |                                                       |  $     590 |                                                    |    65,761,986                |                                                                    |  $    657,619 |   |  $   238,579,829 |   |  $ (280,813) |   |  $   (256,979,263) |   |  $              197,727 |   |  $     (17,824,310) |

----

|                                     |                                |                                                                 |                                                                                                          | 2009                                                      |                                                                                                | 2008                                                      |                                                                                                                | 2007                                      |
|------------------------------------------|-------------------------------------|----------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------|-----------------------------------------------------------------------------------------------------|-----------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|-------------------------------------------|
|                                     |                                |                                                                 |                                                                                                          |                                                      |                                                                                                |                                                      |                                                                                                                |                                      |
| CASH FLOWS FROM OPERATING ACTIVITIES:    |                                |
| Net loss                                 |  $ (21,869,558)                |                                                                 |  $ (14,076,509)                                                                                          |                                                      |  $ (14,291,790)                                                                                |
| Adjustments to reconcile net loss to net |                                |                                                                 |                                                                                                          |                                                      |
|                                     | cash used in operating activities - |                                                                 |                                                                                                          |                                                      |                                                                                                |
|                                     |                                | Depreciation and amortization                                        |        5,737,242                                                           |                                                      |        5,510,802                                                 |                                                      |        5,462,888                                                                 |
|                                     |                                | Amortization of beneficial conversion features                       |        1,658,981                                                           |                                                      |        1,466,591                                                 |                                                      |        1,265,496                                                                 |
|                                     |                                | Amortization of warrants                                             |        1,231,916                                                           |                                                      |        1,092,197                                                 |                                                      |          971,548                                                       |
|                                     |                                | Provision for doubtful accounts                                      |                   - |                                                      |              4,267                 |                                                      |            15,000                                            |
|                                     |                                | Provision for sales returns                                          |        1,226,357                                                           |                                                      |        1,399,991                                                 |                                                      |          992,502                                                       |
|                                     |                                | Write-down of inventories                                            |             81,718                                |                                                      |           746,905                                 |                                                      |            80,961                                            |
|                                     |                                | Share based compensation                                             |        1,749,228                                                           |                                                      |        1,347,391                                                 |                                                      |        1,647,922                                                                 |
|                                     |                                | Non-cash interest expense on financing agreements                    |        2,085,059                                                           |                                                      |        1,702,842                                                 |                                                      |        1,381,407                                                                 |
|                                     |                                | Recognition of deferred income (Ardana)                              |                   - |                                                      |       (2,891,188)                                                     |                                                      |                    - |
|                                     |                                | Loss on disposal of fixed assets                                     |                   - |                                                      |              3,048                 |                                                      |                    - |
|                                     |                                |                                                                 |                                                                                                          |                                                      |                                                                                                |                                                      |                                                                                                                |                                      |
| Changes in assets and liabilities -      |                                |                                                                 |                                                                                                          |                                                      |
|                                     | (Increase) decrease in:             |                                                                 |                                                                                                          |                                                      |                                                                                                |                                                      |
|                                     |                                | Accounts receivable                                                  |         (700,574)                                                     |                                                      |           244,449                                 |                                                      |      (1,520,937)                                                                           |
|                                     |                                | Inventories                                                          |         (237,301)                                                     |                                                      |           (76,915)                                |                                                      |      (1,023,052)                                                                           |
|                                     |                                | Prepaid expenses and other current assets                            |              5,000                           |                                                      |           184,775                                 |                                                      |         (293,534)                                                           |
|                                     |                                | Other assets                                                         |              9,175                           |                                                      |                 943 |                                                      |         (418,405)                                                           |
|                                     |                                |                                                                 |                                                                                                          |                                                      |                                                                                                |                                                      |                                                                                                                |                                      |
|                                     | Increase (decrease) in:             |                                                                 |                                                                                                          |                                                      |                                                                                                |                                                      |
|                                     |                                | Accounts payable                                                     |        1,576,628                                                           |                                                      |         (130,480)                                           |                                                      |      (1,370,828)                                                                           |
|                                     |                                | Accrued expenses                                                     |       (1,632,472)                                                               |                                                      |       (1,281,338)                                                     |                                                      |         (211,709)                                                           |
|                                     |                                | Deferred revenue                                                     |             22,934                                |                                                      |         (384,259)                                           |                                                      |         (601,768)                                                           |
|                                     |                                |                                                                 | Net cash used in operating activities                                                                         |       (9,055,667)           |                                                                                                |       (5,136,488)           |                                                                                                                |      (7,914,299) |
|                                     |                                |                                                                 |                                                                                                          |                                                      |                                                                                                |                                                      |                                                                                                                |                                      |
| CASH FLOWS FROM INVESTING ACTIVITIES:    |                                |                                                                 |
|                                     |                                |                                                                 |                                                                                                          |                                                      |                                                                                                |                                                      |                                                                                                                |                                      |
|                                     | Purchase of property and equipment  |           (49,853) |                                                                                                          |         (375,926) |                                                                                                |         (102,021) |
|                                     |                                | Net cash used in investing activities                                |           (49,853)                                          |                                                      |         (375,926)                                           |                                                      |         (102,021)                                                           |

----

|                                  |                                                      |                                                                                                          | 2009                                                                                                      |                                                                                                            | 2008                                               |                                                                                                          | 2007                                               |
|---------------------------------------|-----------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------|----------------------------------------------------|---------------------------------------------------------------------------------------------------------------|----------------------------------------------------|
|                                  |                                                      |                                                                                                          |                                                                                                      |                                                                                                            |                                               |                                                                                                          |                                               |
| CASH FLOWS FROM FINANCING ACTIVITIES: |                                                      |                                                                                                          |
|                                  | Net proceeds from issuance of common stock and warrants   |     11,456,303                                                                            |                                                                                                      |       4,095,628                                                                   |                                               |                   - |
|                                  | Proceeds from exercise of options                         |                   - |                                                                                                      |          594,855                                                   |                                               |           63,241                                            |
|                                  | Payment for purchase of treasury stock                    |         (91,584)                                                      |                                                                                                      |        (135,199)                                                             |                                               |          (27,150)                                                |
|                                  | Payment pursuant to financing agreements                  |                   - |                                                                                                      |      (3,540,949)                                                                       |                                               |                   - |
|                                  | Dividends paid                                            |         (32,188)                                                      |                                                                                                      |          (55,144)                                                  |                                               |          (76,894)                                                |
|                                  | Net cash or provided by or (used in) financing activities |     11,332,531                                                                            |                                                                                                      |          959,191                                                   |                                               |          (40,803)                                                |
|                                  |                                                      |                                                                                                          |                                                                                                      |                                                                                                            |                                               |                                                                                                          |                                               |
| EFFECT OF EXCHANGE RATE CHANGES ON    |                                                      |                                                                                                          |
|                                  | CASH                                                      |           33,222                                            |                                                                                                      |        (171,206)                                                             |                                               |             8,557                                 |
|                                  |                                                      |                                                                                                          |                                                                                                      |                                                                                                            |                                               |                                                                                                          |                                               |
| NET INCREASE/(DECREASE) IN CASH AND   |                                                      |                                                                                                          |
|                                  | CASH EQUIVALENTS                                          |       2,260,233                                                                 |                                                                                                      |      (4,724,429)                                                                       |                                               |     (8,048,566)                                                                           |
|                                  |                                                      |                                                                                                          |                                                                                                      |                                                                                                            |                                               |                                                                                                          |                                               |
| CASH AND CASH EQUIVALENTS,            |                                                      |                                                                                                          |                                                                                                      |                                                                                                            |
|                                  | Beginning of year                                         |     12,497,382                                                                            |                                                                                                      |      17,221,811                                                                        |                                               |     25,270,377                                                                            |
|                                  |                                                      |                                                                                                          |                                                                                                      |                                                                                                            |                                               |                                                                                                          |                                               |
| CASH AND CASH EQUIVALENTS,            |                                                      |                                                                                                          |                                                                                                      |                                                                                                            |
|                                  | End of year                                               |  $ 14,757,615                                                                                            |                                                                                                      |  $  12,497,382                                                                                   |                                               |  $ 17,221,811                                                                                            |
|                                  |                                                      |                                                                                                          |                                                                                                      |                                                                                                            |                                               |                                                                                                          |                                               |
| SUPPLEMENTAL DISCLOSURE OF CASH       |                                                      |                                                                                                          |                                                                                                      |
|                                  | FLOW INFORMATION                                          |                                                                                                          |                                                                                                      |                                                                                                            |                                               |                                                                                                          |
|                                  | Interest paid                                             |  $   3,200,000                                                                            |                                                                                                      |  $    3,200,000                                                                        |                                               |  $   2,488,889                                                                            |
|                                  | Taxes paid                                                |  $        52,000                                                      |                                                                                                      |  $         27,403                                                  |                                               |  $        34,759                                                      |
|                                  | Accrual of financing costs                                | $                 -           |                                                                                                      |  $                  - |                                               |  $        25,000                                                      |
|                                  | Increase of US Crinone License Right cost                 |  $                 -     |                                                                                                      |  $                  - |                                               |  $   1,000,000                                                                            |
|                                  | Conversion of Series C preference shares to               |                                                                                                          |                                                                                                      |                                                                                                            |                                               |
|                                  |                                                      | common stock                                                                                                  |  $     175,000                                                              |                                                                                                            |  $      350,000 |                                                                                                          |  $   2,075,000                 |
|                                  | Conversion of Series E preference shares to               |                                                                                                          |                                                                                                      |                                                                                                            |                                               |
|                                  |                                                      | common stock                                                                                                  |  $                 - |                                                                                                            |  $      454,700 |                                                                                                          |  $      545,300 |
| Non-cash transactions                 |                                                      |                                                                                                          |                                                                                                      |                                                                                                            |                                               |
|                                  | Issuance of Warrants for Option to Extend                 |                                                                                                          |                                                                                                      |                                                                                                            |                                               |
|                                  |      Pharmabio Debt              |  $     719,904                                                                  |                                                                                                      | $                  -            |                                               |  $                 -     |
|                                  | Issuance of Warrants on Issuance of                       |                                                                                                          |                                                                                                      |                                                                                                            |                                               |
|                                  |      Common Stock                |  $   4,057,817                                                                            |                                                                                                      |  $                 -       |                                               |  $                 -     |

----

| (1)              | RESTATEMENT OF FINANCIAL STATEMENTS |
|-----------------------------------------------------------------------------------|-------------------------------------|

| Issuance Date |   | Number ofWarrants Issued |      |   | Exercise Price |   | Expiration ofWarrants |   | Fair Value ofWarrants atIssuance Date |   |
|--------------------|--------|--------------------------|-----------|--------|---------------------|--------|-----------------------|--------|---------------------------------------|--------|
|               |   |                     |      |   |                |   |                  |   | (In thousands)                        |   |
| October 23, 2009   |   |                     | 5,450,000 |   |                | $      | 1.52                  |   | April 30, 2015                        |   | $ | 4,057 |   |

| Consolidated Balance Sheet       |   | December 31, 2009        |     |   | December 31, 2009 |   |
|----------------------------------|--------|--------------------------|----------|--------|-------------------|--------|
| (in thousands)                   |   | (As previously reported) |     |   | (As restated)     |   |
|                             |   |                     |     |   |              |   |
| Current Liabilities:             |   |                     |     |   |              |   |
| Common stock warrant liability   |   | $                        | --       |   |              | $      | 4,057 |   |
| Total Current Liabilities        |   |                     | 8,395    |   |              |   | 12,453 |   |
|                             |   |                     |     |   |              |   |   |   |
| Total Liabilities                |   |                     | 56,924   |   |              |   | 60,982 |   |
|                             |   |                     |     |   |              |   |   |   |
| Stockholders’ Equity:      |   |                     |     |   |              |   |   |   |
| Additional paid-in-capital       |   |                     | 242,638  |   |              |   | 238,579 |   |
| Total Stockholders’ equity |   |                     | (13,766) |   |              |   | (17,824) |   |
|                             |   |                     |     |   |              |   |   |   |

----

| (2)              | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES : |
|-----------------------------------------------------------------------------------|----------------------------------------------|

----

|                    | December 31,                 |   |                         |
|-------------------------|------------------------------|--------|------------------------------|
|                    | 2009                         |   | 2008                         |
| Finished goods          |  $  1,343,742 |   |  $  1,745,222 |
| Raw materials           | 1,188,980                    |   | 631,917                      |
|    Total |  $  2,532,722 |   |  $  2,377,139 |

|                    |   | Years  |   |
|-------------------------|--------|--------|--------|
|                    |   |   |   |
| Software                |   |   | 3      |   |
| Machinery and equipment |   |   | 5-10   |   |
| Furniture and fixtures  |   |   | 5      |   |

----

|                           | 2009                           |   | 2008                           |
|--------------------------------|--------------------------------|--------|--------------------------------|
|  Balance at January 1     |  $  34,000,000  |   |  $  34,000,000  |
|  Accumulated amortization |    (15,229,668) |   |    (10,184,940) |
|  Balance at December 31   |  $  18,770,332  |   |  $  23,815,060  |

| Year  | Amortization                            |
|-------|-----------------------------------------|
| 2010  |  $  5,044,728            |
| 2011  |      5,044,728 |
| 2012  |      5,044,728 |
| 2013  |      3,636,148 |
| Total |  $ 18,770,332                      |

|                                  | 2009                                                                          |   | 2008                                                   |
|---------------------------------------|-------------------------------------------------------------------------------|--------|--------------------------------------------------------|
| Sales returns & price adjustments |  $   1,910,292                                            |   |  $ 2,789,316                                      |
| Salaries                              |         939,861                       |   |       332,657            |
| Interest                              |         800,000                       |   |       800,000            |
| Professional fees                     |         317,801                       |   |       483,193            |
| Inventory management fees             |         265,012                       |   |       359,376            |
| Marketing expenses                    |             5,419 |   |         34,652 |
| Royalties/Other                       |         349,703                       |   |       181,449            |
|    Total               |  $   4,588,088                                            |   |  $ 4,980,643                                      |

----

|                                          |                                                                                                          |   |                                                                                              |   |                                                           |
|-----------------------------------------------|---------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------|
|                                          | 2009                                                                                                          |   | 2008                                                                                              |   | 2007                                                           |
|                                          |                                                                                                          |   |                                                                                              |   |                                                           |
| Balance at beginning of year                  |  $     1,864,316                                                                |   |  $   1,923,765                                                                |   |  $   1,240,234                             |
|   Addition related to Crinone® |                   - |   |                 - |   |       1,000,000                  |
| Adjusted balance at beginning of year         |        1,864,316                                                           |   |       1,923,765                                                     |   |       2,240,234                  |
|                                          |                                                                                                          |   |                                                                                              |   |                                                           |
| Provision:                                    |                                                                                                          |   |                                                                                              |   |                                                           |
| Related to current period sales               | 671,259                                                                                                       |   | 674,020                                                                                           |   | 527,819                                                        |
| Related to prior period sales                 |           555,098                                           |   | 725,971                                                                                           |   | 500,000                                                        |
|                                          |        1,226,357                                                           |   | 1,399,991                                                                                         |   | 1,027,819                                                      |
|                                          |                                                                                                          |   |                                                                                              |   |                                                           |
| Returns:                                      |                                                                                                          |   |                                                                                              |   |                                                           |
| Related to current period sales               |           (28,092)                                          |   |        (130,551)                                               |   |          (61,125) |
| Related to 2006 Crinone® purchase        |           (31,793)                                          |   |        (300,152)                                               |   |        (328,896)            |
| Related to prior period sales                 |       (1,147,165)                                                               |   |     (1,028,737)                                                               |   |        (954,267)            |
|                                          |       (1,207,050)                                                               |   |     (1,459,440)                                                               |   |     (1,344,288)                            |
|                                          |                                                                                                          |   |                                                                                              |   |                                                           |
| Balance at end of period                      |  $     1,883,623                                                                |   |  $   1,864,316                                                                |   |  $   1,923,765                             |

----

----

----

| (3)              | INCOME TAXES |
|-----------------------------------------------------------------------------------|--------------|

|                                      | 2009    |   | 2008    |   | 2007    |
|-------------------------------------------|---------|--------|---------|--------|---------|
| Federal income tax rate                   | (34.0%) |   | (34.0%) |   | (35.0%) |
| Statutory rate over expected future       |    |   |    |   |    |
| federal benefit                           | 0.0%    |   | 0.0%    |   | 1.0%    |
| Foreign income tax benefit/loss           | (7.7%)  |   | (18.2%) |   | (12.6%) |
| State tax net of federal benefit          | (5.2%)  |   | (11.0%) |   | (9.9%)  |
|                                      |    |   |    |   |    |
| Permanent Items:                          |    |   |    |   |    |
|    Incentive Stock Options | 1.7%    |   | 1.0%    |   | 0.0%    |
|    R&D Credit          | 0.0%    |   | 0.0%    |   | 0.0%    |
|    Other                   | 0.1%    |   | 1.0%    |   | 1.6%    |
| Effect of permanent differences           | 1.8%    |   | 2.0%    |   | 1.6%    |
|                                      |    |   |    |   |    |
| Effective income tax rate                 | (45.1%) |   | (61.2%) |   | (54.9%) |
| Increase in valuation allowance           | 43.5%   |   | 55.4%   |   | 49.7%   |
| Effective income tax rate                 | (1.6%)  |   | (5.8%)  |   | (5.2%)  |

----

| Deferred Tax Assets (Liabilities)                                    |                                                                                          |   |                                                                                                                                  |
|----------------------------------------------------------------------|-----------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------|
|                                                                 | 2009                                                                                          |   | 2008                                                                                                                                  |
|   Share Based awards compensation                          |  $      671,444                                            |   |  $         533,937                                                                  |
|   Allowance for doubtful accounts                          |           28,125                            |   |              28,125                                                  |
|   Allowance for returns                                    |          706,359                                 |   |             591,241                                                       |
|   Inventory reserve                                        |           30,083                            |   |                   163                       |
|   Book accumulated depreciation net of tax                 |          (21,484)                                |   |             (19,096)                                                      |
|   Accum amortization - CRINONE license                     |       3,138,209                                                 |   |          2,096,436                                                                       |
|   Vacation & bonus accrual                             |           24,652                            |   |              15,000                                                  |
|   Inventory capitalization                                 |           40,253                            |   |              25,604                                                  |
|   Patents                                                  |          487,688                                 |   |             112,500                                                       |
|   Long term debt (book amortization beneficial conversion) |      (1,530,254)                                                     |   |         (2,152,372)                                                                           |
|   Federal net operating loss                               |     55,055,721                                                            |   |        50,962,090                                                                                  |
|   State net operating loss                                 |       2,948,608                                                 |   |          2,573,071                                                                       |
| Unused R&D credit                                                |       1,383,187                                                 |   |          1,323,385                                                                       |
|   Contributions                                            |                488 |   |                       - |
|                                                                 |                                                                                          |   |                                                                                                                                  |
| Net Deferred Tax Assets                                              |     62,963,079                                                            |   |        56,090,084                                                                                  |
|                                                                 |                                                                                          |   |                                                                                                                                  |
| Less Valuation Allowance:                                            |                                                                                          |   |                                                                                                                                  |
|         Federal              |    (62,963,079)                                                                |   |       (56,090,084)                                                                                      |
|                                                                 |                                                                                          |   |                                                                                                                                  |
| Deferred Taxes Assets                                                |  $              -  |   |  $                 -                        |

| (4)              | STRATEGIC ALLIANCE AGREEMENTS: |
|-----------------------------------------------------------------------------------|--------------------------------|

----

| (5)              | NOTES PAYABLE: |
|-----------------------------------------------------------------------------------|----------------|

----

| (6)              | FINANCING AGREEMENTS: |
|-----------------------------------------------------------------------------------|-----------------------|

|                    | December 31                                                                                                         |   |                                                                                                                |
|-------------------------|---------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------|
|                    | 2009                                                                                                                |   | 2008                                                                                                                |
|                    |                                                                                                                |   |                                                                                                                |
| STRIANT Agreement       |  $         15,379,303                                             |   |  $         13,294,244                                             |
| Less: current portion   |                   144,897 |   |                   168,034 |
|    Total |  $         15,234,406                                             |   |  $         13,126,210                                             |

----

| (7)              | CONTINGENTLY REDEEMABLE SERIES C CONVERTIBLE PREFERRED STOCK |
|-----------------------------------------------------------------------------------|--------------------------------------------------------------|

| (8)              | SHAREHOLDERS’ EQUITY |
|-----------------------------------------------------------------------------------|----------------------------|

----

| Weighted Average Exercise Price                                                                                              | Warrants |
|------------------------------------------------------------------------------------------------------------------------------|----------|
|                                                                                                                         |     |   |
|  $                  1.15      |     |          900,000 |
|                     1.52 |     |        5,450,000 |
|                     5.39 |     |        1,857,041 |
|                     5.50 |     |        2,285,714 |
|                     5.85 |     |          100,000 |
|                     8.35 |     |          350,000 |
|                                                                                                                         |     |   |
|  $                  3.24      |     |      10,942,755 |

----

| (9)              | STOCK-BASED COMPENSATION |
|-----------------------------------------------------------------------------------|--------------------------|

|                                                | 2009                                              |   | 2008                                                   |   | 2007                                                          |
|-----------------------------------------------------|---------------------------------------------------|--------|--------------------------------------------------------|--------|---------------------------------------------------------------|
| Employee stock-based compensation in:               |                                              |   |                                                   |   |                                                          |
| Cost of revenue                                     |  $      73,630 |   |  $      68,046      |   |  $      148,589            |
|                                                |                                              |   |                                                   |   |                                                          |
| Selling and distribution                            |        450,226 |   |        175,375      |   |          160,573 |
| General and administrative                          |     1,085,785                 |   |        973,148      |   |        1,014,702           |
| Research and development                            |        139,587 |   |         98,002 |   |          166,195 |
|   Total employee stock-based compensation |                                              |   |                                                   |   |                                                          |
|     in operating expenses       |     1,675,598                 |   |     1,246,525                      |   |        1,341,470           |
|                                                |                                              |   |                                                   |   |                                                          |
|   Total employee stock-based compensation |  $  1,749,228                      |   |  $ 1,314,571                                      |   |  $    1,490,059                      |

|                    | 2009      |   | 2008       |   | 2007       |
|-------------------------|-----------|--------|------------|--------|------------|
| Risk free interest rate | 1.71%     |   | 2.25%      |   | 4.53%      |
| Expected term           | 4.2 years |   | 4.75 years |   | 4.52 years |
| Dividend yield          | 0.0       |   | 0.0        |   | 0.0        |
| Expected volatility     | 93.04%    |   | 85.49%     |   | 85.68%     |

----

|                             | 2009                                                                                                    |                                                                                  |   | 2008                                                |                                                                               |   | 2007                                               |                                                                         |
|----------------------------------|---------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|--------|-----------------------------------------------------|------------------------------------------------------------------------------------|--------|----------------------------------------------------|------------------------------------------------------------------------------|
|                             |                                                                                                    | Weighted-                                                                             |   |                                                | Weighted-                                                                          |   |                                               | Weighted-                                                                    |
|                             |                                                                                                    | Average                                                                               |   |                                                | Average                                                                            |   |                                               | Average                                                                      |
|                             |                                                                                                    | Exercise                                                                              |   |                                                | Exercise                                                                           |   |                                               | Exercise                                                                     |
|                             |                                                                                                    | Price                                                                                 |   |                                                | Price                                                                              |   | Shares                                             | Price                                                                        |
| Outstanding at beginning of year | 4,863,488                                                                                               | $3.47                                                                                 |   | 4,936,335                                           | $4.64                                                                              |   | 4,686,552                                          | $8.57                                                                        |
| Granted                          | 1,842,525                                                                                               | 1.40                                                                                  |   | 1,275,700                                           | 2.58                                                                               |   | 1,710,850                                          | 1.50                                                                         |
| Exercised                        |                  - |               - |   |        (318,149) |              1.87 |   |        (43,050) |             1.47 |
| Forfeited                        | (745,709)                                                                                               | 4.05                                                                                  |   | (1,030,398)                                         | 9.10                                                                               |   | (1,418,017)                                        | 12.84                                                                        |
| Outstanding at end of year       | 5,960,304                                                                                               | 2.70                                                                                  |   | 4,863,488                                           | 3.47                                                                               |   | 4,936,335                                          | 4.64                                                                         |
|                             |                                                                                                    |                                                                                  |   |                                                |                                                                               |   |                                               |                                                                         |
| Options exercisable at year end  | 3,168,023                                                                                               |                                                                                  |   | 2,688,841                                           |                                                                               |   | 3,196,121                                          |                                                                         |

----

|                            |   | 2009                                               |   |                                                                                                       |   | 2008                                              |   |                                                                                                       |   | 2007                                              |   |                                                                                                       |
|---------------------------------|--------|----------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------|
|                            |   |                                               |   | Weighted-                                                                                                  |   |                                              |   | Weighted-                                                                                                  |   |                                              |   | Weighted-                                                                                                  |
|                            |   |                                               |   | Average Grant                                                                                              |   |                                              |   | Average Grant                                                                                              |   |                                              |   | Average Grant                                                                                              |
|                            |   | Shares                                             |   | Date Fair Value                                                                                            |   | Shares                                            |   | Date Fair Value                                                                                            |   | Shares                                            |   | Date Fair Value                                                                                            |
| Unvested at beginning of period |   |       238,115        |   |  $              2.23            |   |      197,096             |   |  $              2.36            |   |      146,875             |   |  $              4.49            |
| Granted                         |   |       326,776        |   |                  1.31 |   |      172,553             |   |                  2.36 |   |      159,390             |   |                  1.79 |
| Vested                          |   |      (186,227)            |   |                  3.70 |   |     (122,484)                 |   |                  2.94 |   |     (105,469)                 |   |                  1.69 |
| Forfeited                       |   |        (41,625) |   |                  1.66 |   |        (9,050) |   |                  1.94 |   |        (3,700) |   |                  1.40 |
| Unvested at December 31,        |   |       337,039        |   |  $              1.55            |   |      238,115             |   |  $              2.23            |   |      197,096             |   |  $              2.36            |

| (10)              | COMMITMENTS AND CONTINGENCIES: |
|------------------------------------------------------------------------------------|--------------------------------|

| 2010   |   |  $     271,226                                                      |
|--------|--------|---------------------------------------------------------------------------------------------------|
| 2011   |   |         244,532                                           |
| 2012   |   |         233,066                                           |
| 2013   |   |         187,031                                           |
| Beyond |   |                 - |
| Total  |   |  $     935,855                                                      |

----

----

| (11)              | GEOGRAPHIC INFORMATION AND CUSTOMER CONCENTRATION: |
|------------------------------------------------------------------------------------|----------------------------------------------------|

|                                |                    |                                                            |   | (Loss) profit from                                                                                                        | Identifiable |
|-------------------------------------|-------------------------|-----------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------|--------------|
|                                |                    | Revenues                                                        |   | Operations                                                                                                                |         | Assets |
| As of and for  the year   |                    |                                                            |   |                                                                                                                      |         |
| ended  December 31, 2009- |                    |                                                            |   |                                                                                                                      |         |
|                                |                    |                                                            |   |                                                                                                                      |         |   |
|                                | United States           |  $     19,997,178                 |   |  $   (18,771,745)                                                                                     |         |  $     37,263,748 |
|                                |                    |                                                            |   |                                                                                                                      |         |   |
|                                | Switzerland             |          8,610,429 |   |          5,608,298                                                           |         |          6,493,471 |
|                                | Other                   |          3,588,774 |   |                                                                                                                      |         |                     - |
|                                | Subtotal International  |         12,199,203      |   |          5,608,298                                                           |         |          6,493,471 |
|                                |                    |                                                            |   |                                                                                                                      |         |   |
|                                |    Total |  $     32,196,381                 |   |  $   (13,163,447)                                                                                     |         |  $     43,757,219 |
|                                |                    |                                                            |   |                                                                                                                      |         |   |
| As of and for  the year   |                    |                                                            |   |                                                                                                                      |         |
| ended  December 31, 2008- |                    |                                                            |   |                                                                                                                      |         |
|                                |                    |                                                            |   |                                                                                                                      |         |   |
|                                | United States           |  $     17,950,995                 |   |  $   (14,978,075)                                                                                     |         |  $     38,806,638 |
|                                |                    |                                                            |   |                                                                                                                      |         |   |
|                                | Switzerland             |          9,168,230 |   |          7,720,690                                                           |         |          6,815,851 |
|                                | Other                   |          9,109,889 |   |                     - |         |                     - |
|                                | Subtotal International  |         18,278,119      |   |          7,720,690                                                           |         |          6,815,851 |
|                                |                    |                                                            |   |                                                                                                                      |         |   |
|                                |    Total |  $     36,229,114                 |   |  $     (7,257,385)                                                                          |         |  $     45,622,489 |
|                                |                    |                                                            |   |                                                                                                                      |         |   |
| As of and for  the year   |                    |                                                            |   |                                                                                                                      |         |
| ended  December 31, 2007- |                    |                                                            |   |                                                                                                                      |         |
|                                |                    |                                                            |   |                                                                                                                      |         |   |
|                                | United States           |  $     15,257,884                 |   |  $   (14,339,632)                                                                                     |         |  $     49,253,642 |
|                                |                    |                                                            |   |                                                                                                                      |         |   |
|                                | Switzerland             |          8,101,831 |   |          6,231,784                                                           |         |          7,335,635 |
|                                | Other                   |          6,267,923 |   |                     - |         |                     - |
|                                | Subtotal International  |         14,369,754      |   |          6,231,784                                                           |         |          7,335,635 |
|                                |                    |                                                            |   |                                                                                                                      |         |   |
|                                |    Total |  $     29,627,638                 |   |  $     (8,107,848)                                                                          |         |  $     56,589,277 |

----

|                           |                                                            | 2009                                                            |                                                | 2008                                                |                                                | 2007                                                |
|--------------------------------|-----------------------------------------------------------------|-----------------------------------------------------------------|-----------------------------------------------------|-----------------------------------------------------|-----------------------------------------------------|-----------------------------------------------------|
|                           |                                                            |                                                            |                                                |                                                |                                                |                                                |
| MerckSerono                    |                                                            |  $       8,627,333      |                                                |  $    9,168,230            |                                                |  $     8,151,292      |
| Lil' Drug Store Products, Inc. |          6,592,945 |                                                            |        6,218,949 |                                                |        5,958,925 |
| Cardinal Healthcare            |                                                            |          5,662,507 |                                                |        5,612,748 |                                                |        6,098,510 |
| McKesson                       |                                                            |          4,574,128 |                                                |        4,990,960 |                                                |        3,888,354 |
| All others (none over 5%)      |                                                            |          6,739,468 |                                                |      10,238,227            |                                                |        5,530,557 |
|    Total        |                                                            |  $     32,196,381                 |                                                |  $  36,229,114                       |                                                |  $   29,627,638                 |

|                    |   | 2009                                                                        |   | 2008                                                                        |   | 2007                                                                        |
|-------------------------|--------|-----------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------|
|                    |   |                                                                        |   |                                                                        |   |                                                                        |
| CRINONE®           |   |  $       22,166,867                 |   |  $       21,439,847                 |   |  $       18,904,512                 |
| RepHresh®          |   |            3,021,944 |   |            3,316,193 |   |            3,326,927 |
| PROCHIEVE®         |   |            1,642,161 |   |            2,697,255 |   |            1,527,727 |
| Other                   |   |            5,365,409 |   |            8,775,819 |   |            5,868,472 |
|    Total |   |  $       32,196,381                 |   |  $       36,229,114                 |   |  $       29,627,638                 |

----

| (12)              | QUARTERLY FINANCIAL INFORMATION (UNAUDITED): |
|------------------------------------------------------------------------------------|----------------------------------------------|

| 2009                                |                                                    | FirstQuarter                                           | SecondQuarter                                                                   | ThirdQuarter                                                              | FourthQuarter                                           | FullYear                                               |
|-------------------------------------|---------------------------------------------------------|--------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------|---------------------------------------------------------|--------------------------------------------------------|
|                                |                                                    |                                                   |                                                                            |                                                                      |                                                    |                                                   |   |   |   |   |
| Net sales                           |                                                    |  $ 7,224,370                                      |                                                                            |  $     8,286,623                            |                                                    |  $ 7,807,944                                      |   |  $     8,443,644 |   |  $    31,762,581 |
| Fee income and other                |                                                    |                                                   |                                                                            |                                                                      |                                                    |                                                   |   |   |   |
|    income            |                                                    |         96,817 |                                                                            |            137,081 |                                                    |         95,013 |   |            104,889 |   |            433,800 |
| Gross profit                        |                                                    |    5,541,169                            |                                                                            |         6,084,353                 |                                                    |    5,341,397                            |   |         6,034,924 |   |        23,001,843 |
| Loss from operations                |   (3,247,187)                                 |                                                   |        (3,060,393)                           |                                                                      |   (3,422,766)                                 |                                                   |        (3,433,101) |   |       (13,163,447) |
| Net loss                            |                                                    |   (5,333,567)                                |                                                                            |        (5,240,661)                     |                                                    |   (5,853,262)                                |   |        (5,442,068) |   |       (21,869,558) |
| Basic and diluted loss              |                                                    |                                                   |                                                                            |                                                                      |                                                    |                                                   |   |   |   |
|    per common share* |  $       (0.10) |                                                   |  $           (0.10) |                                                                      |  $       (0.11) |                                                   |  $           (0.09) |   |  $            (0.39) |
|                                |                                                    |                                                   |                                                                            |                                                                      |                                                    |                                                   |   |   |   |   |
|                                |                                                    |                                                   |                                                                            |                                                                      |                                                    |                                                   |   |   |   |   |
| 2008                                |                                                    |                                                   |                                                                            |                                                                      |                                                    |                                                   |   |   |   |   |
| Net sales                           |                                                    |  $ 8,606,298                                      |                                                                            |  $     8,827,369                            |                                                    |  $ 8,141,662                                      |   |  $     6,893,915 |   |  $    32,469,244 |
| Fee income and other                |                                                    |                                                   |                                                                            |                                                                      |                                                    |                                                   |   |   |   |
|    income            |                                                    |       306,637            |                                                                            |            320,252 |                                                    |    2,975,696                            |   |            157,285 |   |          3,759,870 |
| Gross profit                        |                                                    |    5,952,838                            |                                                                            |         6,197,812                 |                                                    |    8,257,768                            |   |         4,886,081 |   |        25,294,499 |
| Loss from operations                |   (2,378,635)                                 |                                                   |        (2,399,902)                           |                                                                      |       (86,884)            |                                                   |        (2,391,964) |   |        (7,257,385) |
| Net loss                            |                                                    |   (4,248,795)                                |                                                                            |        (4,326,172)                     |                                                    |   (2,050,136)                                |   |        (3,451,406) |   |       (14,076,509) |
| Basic and diluted loss              |                                                    |                                                   |                                                                            |                                                                      |                                                    |                                                   |   |   |   |
|    per common share* |  $       (0.08) |                                                   |  $           (0.08) |                                                                      |  $       (0.04) |                                                   |  $           (0.06) |   |  $            (0.27) |

----

| (13)              | SUBSEQUENT EVENT |
|------------------------------------------------------------------------------------|------------------|

----

----

----

----

----

|                                  |                                                          |   |                                                                                   |   | Charged to                                                                                               |   |                                                          |   |              |
|---------------------------------------|---------------------------------------------------------------|--------|----------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------|--------|-------------------|
|                                  |                                                          |   | Balance at                                                                             |   | (credited to)                                                                                            |   |                                                          |   | Balance           |
|                                  |                                                          |   | beginning                                                                              |   | costs and                                                                                                |   |                                                          |   | at  end |
|                                  | Description                                                   |   | of year                                                                                |   | expenses                                                                                                 |   | Deductions (A)                                                |   | of year           |
|                                  |                                                          |   |                                                                                   |   |                                                                                                     |   |                                                          |   |              |
|                                  | YEAR ENDED DECEMBER  31,  2009:           |   |                                                                                   |   |                                                                                                     |   |                                                          |
|  Allowance for doubtful accounts |  $      100,000            |   |  $             - |   |  $                - |   |  $      100,000            |
|                                  |                                                          |   |                                                                                   |   |                                                                                                     |   |                                                          |   |              |
|                                  | YEAR ENDED DECEMBER  31,  2008:           |   |                                                                                   |   |                                                                                                     |   |                                                          |
|  Allowance for doubtful accounts |  $        95,733 |   |  $         4,267                     |   |  $                - |   |  $      100,000            |
|                                  |                                                          |   |                                                                                   |   |                                                                                                     |   |                                                          |   |              |
|                                  | YEAR ENDED DECEMBER  31,  2007:           |   |                                                                                   |   |                                                                                                     |   |                                                          |
|  Allowance for doubtful accounts |  $      100,000            |   |  $       15,000                                |   |  $          19,267                                |   |  $        95,733 |

----

| Exhibit No |  Description                                                                                                                                                                                  |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1             | Restated Certificate of Incorporation of the Company, as amended (14)                                                                                                                              |
| 3.2             | Amended and Restated By-laws of Company (3)                                                                                                                                                        |
| 4.1             | Certificate of Designations, Preferences and Rights of Series C Convertible Preferred Stock of the Company, dated as of January 7, 1999 (3)                                                        |
| 4.2             | Securities Purchase Agreement, dated as of January 7, 1999, between the Company and each of the purchasers named on the signature pages thereto (3)                                                |
| 4.3             | Securities Purchase Agreement, dated as of January 19, 1999, among the Company, David M. Knott and Knott Partners, L.P. (3)                                                                        |
| 4.4             | Form of Warrant to Purchase Common Stock (3)                                                                                                                                                       |
| 4.5             | Warrant to Purchase Common Stock granted to James J. Apostolakis on September 23, 1999 (5)                                                                                                         |
| 4.6             | Certificate of Designations of Series E Convertible Preferred Stock, filed May 10, 2005 with the Delaware Secretary of State (13)                                                                  |
| 4.7             | Preferred Stock Purchase Agreement, dated as of May 10, 2005, among Columbia Laboratories, Inc., Perry Partners L.P. and Perry Partners International, Inc. (13)                                   |
| 4.8             | Securities Purchase Agreement, dated March 10, 2006, by and between Columbia Laboratories, Inc. and the Purchasers listed on Exhibit A thereto (15)                                                |
| 4.9*            | Form of Restricted Stock Agreement (17)                                                                                                                                                            |
| 4.10*           | Form of Option Agreement (24)                                                                                                                                                                      |
| 4.11            | Securities Purchase Agreement, dated December 21, 2006, by and between Columbia Laboratories, Inc. and the Purchasers listed on Exhibit A thereto (19)                                   |
| 10.1            | 1996 Long-term Performance Plan, as amended, of the Company (2)                                                                                                                                    |
| 10.2            | Asset Purchase, License and Option Agreement between Bio-Mimetics, Inc. and Columbia Laboratories, Inc., dated November 22, 1989 (1)                                                               |
| 10.4            | Settlement Agreement and Release dated as of March 16, 2000 between Columbia Laboratories (Bermuda) Ltd. and Lake Consumer Products, Inc. (5)                                                      |
| 10.5            | License Agreement dated April 18, 2000, between the Company and Lil’ Drug Store Products, Inc. (6)                                                                                           |
| 10.6            | Rights Agreement dated as of March 13, 2002, by and between Columbia Laboratories, Inc. and First Union National Bank, as Rights Agent (7)                                                         |
| 10.7†     | Semi-Exclusive Supply Agreement dated May 7, 2002 between the Company and Mipharm S.p.A. (8)                                                                                                       |
| 10.8†     | Amended and Restated License and Supply Agreement dated June 4, 2002 between the Company and Ares Trading S.A.(8)                                                                             |
| 10.9†     | Investment and Royalty Agreement dated March 5, 2003 between the Company and PharmaBio Development Inc. (9)                                                                                        |
| 10.10†    | License and Supply Agreement Dated May 27, 2003 between the Company and Mipharm S.p.A. (10)                                                                                                        |
| 10.11*          | Form of Indemnification Agreement for Officers and Directors (11)                                                                                                                                  |
| 10.12†    | Asset Purchase Agreement Dated June 29, 2004, between the Company and Lil’ Drug Store Products, Inc. (12)                                                                                    |
| 10.13†    | Supply Agreement dated June 29, 2004, between the Company and Lil’ Drug Store Products, Inc.(12)                                                                                             |
| 10.14           | Letter Agreement Supplement to STRIANT Investment and Royalty Agreement dated April 14, 2006 (16)                                                                                                  |
| 10.15*          | Separation Agreement by and between Columbia Laboratories, Inc. and David L. Weinberg effective as of December 12, 2006 (18)                                                                       |
| 10.16†    | Agreement, dated December 21, 2006, by and among Ares Trading S.A., Serono, Inc., the Company and its wholly-owned subsidiary, Columbia Laboratories (Bermuda), Ltd (19)                      |
| 10.17           | Amendment No. 1 to the Amended and Restated License and Supply Agreement, entered into December 21, 2006, by and between Ares Trading S.A and Columbia Laboratories (Bermuda), Ltd. (19) |
| 10.18           | Description of the Registrant’s Compensation and Reimbursement Practices for Non-employee Directors. (20)                                                                                    |
| 10.19           | Lease Agreement between Allwood Associates I and Columbia Laboratories, Inc., dated July 6, 2007 (20)                                                                                              |
| 10.20†    | License and Supply Agreement between Columbia Laboratories, Inc. and Ascend Therapeutics, Inc., dated September 27, 2007 (21)                                                                      |
| 10.21           | Supply Agreement between Columbia Laboratories (Bermuda) Limited and Fleet Laboratories Limited, dated July 12, 1996 (22)                                                                          |
| 10.22           | Packaging Agreement between Columbia Laboratories (Ireland) Ltd. and Maropack AG, dated October 28, 1993 (22)                                                                                      |
| 10.23*          | Columbia Laboratories, Inc., 2008 Long-Term Incentive Plan (23)                                                                                                                                    |
| 10.24*          | Columbia Laboratories, Inc., Amended and Restated Incentive Plan (24)                                                                                                                              |
| 10.25*          | Form of Executive Change of Control Severance Agreement (24)                                                                                                                                       |
| 10.26           | Stock Purchase Agreement, by and between the Company and Numoda Corporation, dated January 6, 2009 (25)                                                                                            |
| 10.27*          | Amended and Restated Employment Agreement by and between Columbia Laboratories, Inc. and Robert S. Mills dated March 11, 2009 (24)                                                                 |
| 10.28*          | Amended and Restated Employment Agreement by and between Columbia Laboratories, Inc. and Michael McGrane dated March 11, 2009 (29)                                                                 |
| 10.29*          | Amended and Restated Employment Agreement by and between Columbia Laboratories, Inc. and James A. Meer dated March 11, 2009 (26)                                                                   |
| 10.30*          | Separation and Release Agreement by and between Columbia Laboratories, Inc. and James A. Meer effective as of May 18, 2009 (26)                                                                    |
| 10.31*          | Employment Agreement by and between Columbia Laboratories, Inc. and Lawrence Gyenes dated July 15, 2009 (27).                                                                                 |
| 10.32           | Second Amendment to Investment and Royalty Agreement, by and between the Company and PharmaBio Development, Inc., July 22, 2009 (28)                                                               |
| 10.33           | Placement Agent Agreement, by and among the Company, Oppenheimer & Co., Inc. and The Benchmark Company, LLC, dated October 22, 2009 (30)                                                       |
| 10.34           | Form of Subscription Agreement (30)                                                                                                                                                                |
| 10.35           | Form of Warrant to Purchase Common Stock (30)                                                                                                                                                      |
| 10.36*          | Columbia Laboratories Stock Ownership Guidelines for Officers and Directors (31)                                                                                                                   |
| 10.37           | Manufacturing and Supply Agreement between Fleet Laboratories and Columbia Laboratories (Bermuda), Ltd., dated December 8, 2009 (32)                                                               |
| 10.38*          | Employment Agreement by and between Columbia Laboratories, Inc. and Frank C. Condella, Jr., dated December 11, 2009 (33)                                                                      |
| 10.39*          | Addendum to Amended and Restated Employment Agreement by and between Columbia Laboratories, Inc. and Robert S. Mills dated December 11, 2009 (33)                                                  |
| 10.40*          | Addendum to Executive Change in Control Severance Agreement by and between Columbia Laboratories, Inc. and Robert S. Mills dated December 11, 2009 (33).                                           |
| 14              | Code of Ethics of the Company (11)                                                                                                                                                                 |
| 21              | Subsidiaries of the Company (34)                                                                                                                                                                   |
| 23.1            | Consent of BDO USA, LLP (formerly BDO Seidman, LLP) (35)                                                                                                                                           |
| 23.2            | Consent of McGladrey & Pullen, LLP (35)                                                                                                                                                   |
| 31(i).1         | Certification of Chief Executive Officer of the Company (35)                                                                                                                                       |
| 31(i).2         | Certification of Chief Financial Officer of the Company (35)                                                                                                                                       |
| 32.1            | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (35)                                             |
| 32.2            | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (35)                                            |
| †         | Confidential treatment has been requested with respect to certain portions of this exhibit. Omitted portions have been filed separately with the SEC.                                              |
| *               | Management contract or compensatory plans or arrangements                                                                                                                                          |

| 1/  | Incorporated by reference to the Registrant's Registration Statement on Form S-1 (File No. 33-31962) declared effective on May 14, 1990 |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------|
| 2/  | Incorporated by reference to the Registrant's Proxy Statement dated May 10, 2000                                                        |
| 3/  | Incorporated by reference to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 1998                     |
| 4/  | Incorporated by reference to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 1999                  |
| 5/  | Incorporated by reference to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 1999                     |
| 6/  | Incorporated by reference to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2000                  |
| 7/  | Incorporated by reference to the Registrant’s Current Report on Form 8-K, dated March 12, 2002                                    |
| 8/  | Incorporated by reference to the Registrant’s Quarterly Report on Form 10-Q dated August 14, 2002                                 |
| 9/  | Incorporated by reference to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2002                     |
| 10/ | Incorporated by reference to the Registrant’s Quarterly Report on Form 10-Q dated August 14, 2003                                 |
| 11/ | Incorporated by reference to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2003                     |
| 12/ | Incorporated by reference to the Registrant’s Quarterly Report on Form 10-Q dated August 4, 2004                                  |
| 13/ | Incorporated by reference to the Registrant’s Current Report on Form 8-K, dated May 12, 2005                                      |
| 14/ | Incorporated by reference to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2005                     |
| 15/ | Incorporated by reference to the Registrant’s Current Report on Form 8-K, dated March 16, 2006                                    |
| 16/ | Incorporated by reference to the Registrant’s Current Report on Form 8-K, dated April 17, 2006                                    |
| 17/ | Incorporated by reference to the Registrant’s Current Report on Form 8-K, dated May 17, 2006                                      |
| 18/ | Incorporated by reference to the Registrant’s Current Report on Form 8-K, dated December 15, 2006                                 |
| 19/ | Incorporated by reference to the Registrant’s Current Report on Form 8-K, dated December 26, 2006                                 |
| 20/ | Incorporated by reference to the Registrant’s Quarterly Report on Form 10-Q, dated August 8, 2007                                 |
| 21/ | Incorporated by reference to the Registrant’s Quarterly Report on Form 10-Q, dated November 8, 2007                               |
| 22/ | Incorporated by reference to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2007                     |
| 23/ | Incorporated by reference to the Registrant’s Proxy Statement dated April 8, 2008                                                 |
| 24/ | Incorporated by reference to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2008                     |
| 25/ | Incorporated by reference to the Registrant’s Current Report on Form 8-K, dated January 8, 2009                                   |
| 26/ | Incorporated by reference to the Registrant’s Current Report on Form 8-K, dated May 12, 2009                                      |
| 27/ | Incorporated by reference to the Registrant’s Current Report on Form 8-K, dated July 15, 2009                                     |
| 28/ | Incorporated by reference to the Registrant’s Current Report on Form 8-K, dated July 24, 2009                                     |
| 29/ | Incorporated by reference to the Registrant’s Quarterly Report on Form 10-Q dated August 6, 2009                                  |
| 30/ | Incorporated by reference to the Registrant’s Current Report on Form 8-K, dated October 23, 2009                                  |
| 31/ | Incorporated by reference to the Registrant’s Current Report on Form 8-K, dated November 17, 2009                                 |
| 32/ | Incorporated by reference to the Registrant’s Current Report on Form 8-K, dated December 8, 2009                                  |
| 33/ | Incorporated by reference to the Registrant’s Current Report on Form 8-K, dated December 14, 2009                                 |
| 34/ | Incorporated by reference to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2009                |
| 35/ | Filed herewith                                                                                                                          |