7. Restructuring

We reduced headcount in the third and fourth quarters of 2011, resulting in a restructuring accrual of $1.3 million for severance and related benefits which were paid through August 2012. We incurred other exit and contract termination costs, including expenses related to a lease amendment and consolidation of employees within reduced facility space.

We completed an additional headcount reduction in the third quarter of 2012, resulting in a restructuring accrual of $1.9 million which is being paid through August 2013, of which we intend to pay up to $1.2 million in shares of common stock issued pursuant to the Company's 2005 Stock Incentive Plan. During the fourth quarter of 2012, we issued $0.1 million of common stock and at the closing market price of the Company's common stock on December 31, 2012, up to 174 shares may be issued in satisfaction of the remaining obligation.

Activity in the restructuring accrual, which is included in accounts payable and accrued expenses in our Consolidated Balance Sheets, and in research and development and general and administrative expenses in the Consolidated Statements of Operations, is specified below.

	Severance and Related Benefits			Other Exit Costs			Contract Termination Costs			Total Restructuring Accrual
Balance at December 31, 2011	$	571		$	6		$	154		$	731
Additions, net		1,905			184			3			2,092
Payments		(1,663	)		(190	)		(157	)		(2,010	)
Balance at December 31, 2012	$	813		$	-		$	-		$	813