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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">As
      filed
      with the Securities and Exchange Commission on January 14, 2008 Registration
      No.
      333-_________</font></div>
    <div><br></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">SECURITIES
      AND EXCHANGE COMMISSION</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">WASHINGTON,
      D.C. 20549</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>FORM
      S-8</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">REGISTRATION
      STATEMENT UNDER</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">THE
      SECURITIES ACT OF 1933</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong><u>A.P.
      Pharma, Inc.</u></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(Exact
      Name of Registrant as Specified in Its Charter)</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 32.7pt;"></font><u>Delaware</u>&#160;&#160;&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;</font><u>94-2875566</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(State
      or
      Other Jurisdiction of&#160;
&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
(I.R.S. Employer</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;&#160;Incorporation
      or Organization)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Identification
      No.)</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><u>123
      Saginaw Drive, Redwood City, California 94063</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(Address
      of Principal Executive Offices)</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><u>2007
      Equity Incentive Plan</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><u>1997
      Employee Stock Purchase Plan</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(Full
      Title of the Plan)</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Gregory
      Turnbull</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">President
      and Chief Executive Officer</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">A.P.
      Pharma, Inc.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">123
      Saginaw Drive</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><u>Redwood
      City, California&#160;&#160;94063</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(Name
      and
      Address of Agent for Service)</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><u>(650)
      366-2626</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(Telephone
      Number, Including Area Code, of Agent for Service)</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Copy
      to:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Marina
      Remennik, Esq.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Heller
      Ehrman LLP</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">275
      Middlefield Road</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Menlo
      Park, California 94025-3506</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(650)
      324-7000</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 100.75pt;"></font>CALCULATION
      OF REGISTRATION
      FEE</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="left" valign="top" width="24%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;"><font id="TAB1" style="MARGIN-LEFT: 18.15pt;"></font>Title
                of
                Securities</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;"><font id="TAB1" style="MARGIN-LEFT: 22.25pt;"></font>to
                be
                Registered</font></div>
            </td>
            <td align="left" valign="top" width="11%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Amount
                to be</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Registered
                (1)</font></div>
            </td>
            <td align="left" valign="top" width="15%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Proposed
                Maximum</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;"><font id="TAB1" style="MARGIN-LEFT: 1.1pt;"></font>Offering
                Price </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">per
                Share (2)</font></div>
            </td>
            <td align="left" valign="top" width="15%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Proposed
                Maximum</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Aggregate
                Offering </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Price</font></div>
            </td>
            <td align="left" valign="top" width="13%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;"><font id="TAB1" style="MARGIN-LEFT: 4.95pt;"></font>Amount
                of</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;"><font id="TAB1" style="MARGIN-LEFT: 1.65pt;"></font>Registration
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Fee</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="24%" style="BORDER-BOTTOM: black 4px double">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Common
                Stock, par value $0.01</font></div>
            </td>
            <td valign="top" width="11%" style="BORDER-BOTTOM: black 4px double">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">3,100,000</font></div>
            </td>
            <td valign="top" width="15%" style="BORDER-BOTTOM: black 4px double">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">$1.49</font></div>
            </td>
            <td valign="top" width="15%" style="BORDER-BOTTOM: black 4px double">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">$4,619,000</font></div>
            </td>
            <td valign="top" width="13%" style="BORDER-BOTTOM: black 4px double">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">$181.53</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top">
            <td style="WIDTH: 27pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(1)</font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Represents
                3,000,000 shares issuable upon exercise of equity awards to be granted
                under Registrant's 2007 Equity Incentive Plan and 100,000 additional
                shares issuable upon exercise of purchase rights granted under the
                Registrant's 1997 Employee Stock Purchase Plan, including such additional
                number of shares as may be required by reason of <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif;">any
                stock
                dividend, stock split, recapitalization or any other similar transaction
                effected without the receipt of consideration which results in an
                increase
                in the number of the Registrant&#8217;s outstanding shares of common stock, or
                any </font>anti-dilution provisions of such
                plans.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top">
            <td style="WIDTH: 27pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font style="DISPLAY: inline; FONT-FAMILY: TmsRmn 12pt, Times New Roman, serif;">(2)</font></font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Estimated
                solely for the purpose of calculating the amount of the registration
                fee
                pursuant to Rule 457(h) promulgated under the Securities Act 1933,
                as
                amended (the &#8220;Securities Act&#8221;).&#160;&#160;Pursuant to Rule 457(c) under
                the Securities Act , the price per share and aggregate offering price
                are
                based upon the average of the high and low prices of the Registrant&#8217;s
                common stock<font style="DISPLAY: inline; FONT-SIZE: 10pt;"> as reported on
                the </font><font style="DISPLAY: inline; FONT-FAMILY: TmsRmn 12pt, Times New Roman, serif;">Nasdaq
                Global Market on January 11,
                2008.</font></font></div>
            </td>
          </tr>

      </table>
    </div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman;"><strong><font id="TAB1" style="MARGIN-LEFT: 204.3pt;"></font>PART
      II</strong></font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman;"><strong>INFORMATION
      REQUIRED IN THE REGISTRATION STATEMENT</strong></font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 54pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">The
      shares being registered herein are 3,000,000 shares of common stock authorized
      to be issued under Registrant's 2007 Equity Incentive Plan and 100,000
      additional shares of common stock authorized to be issued under Registrant's
      1997 Employee Stock Purchase Plan.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>Item
      3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Incorporation of Documents by
      Reference</strong></font></div>
    <div><br><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">The
      following documents filed or to be filed with the Securities and Exchange
      Commission (the &#8220;Commission&#8221;) by the Registrant are incorporated by reference in
      this Registration Statement:</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 46.2pt;"></font>(a)<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;The
      Registrant&#8217;s
      Annual Report on Form&#160;10-K for the fiscal year ended December 31,
      2006;</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 46.2pt;"></font>(b)<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;The
      Registrant&#8217;s
      Quarterly Reports on Form 10-Q for the fiscal quarters ended March 31, 2007,
      June 30, 2007 and September 30, 2007;</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 46.2pt;"></font>(c)<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;The
      Registrant&#8217;s
      Current Reports on Form 8-K filed with the Commission on May 15, 2007, May
      30,
      2007, June 25, 2007, October 2, 2007 and December 17, 2007;</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 46.2pt;"></font>(d)<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;The
      description of
      the Registrant&#8217;s Common Stock contained in the registration statement on Form
      8-A filed with the Commission on August 7, 1987 pursuant to Section 12 of the
      Exchange Act of 1934, as amended (the &#8220;Exchange Act&#8221;); and</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 46.2pt;"></font>(e)<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;All
      documents
      subsequently filed by the Registrant pursuant to Sections 13(a), 13(c), 14
      and
      15(d) of the Exchange Act, prior to the filing of a post-effective amendment
      which indicates that all securities offered hereby have been sold or which
      deregisters all securities then remaining unsold.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>Item
      5.&#160;&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;</font></font>Interests
      of Named Experts and
      Counsel</strong></font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 32.7pt;"></font>Heller
      Ehrman LLP, counsel to the
      Company, has rendered an opinion with respect to the legality of the Common
      Stock issuable under the 2007 Equity Incentive Plan and the 1997 Employee Stock
      Purchase Plan.&#160;&#160;Julian N. Stern, the sole shareholder of a
      professional corporation that is a partner of Heller Ehrman LLP, is the
      Secretary of the Company.&#160;&#160;Mr. Stern owns 42,583 shares of the
      Company&#8217;s Common Stock.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>Item
      6.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Indemnification of Directors
      and Officers</strong></font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 27.6pt;"></font>The
      Registrant has the power to
      indemnify its officers and directors against liability for certain acts pursuant
      to Section 145 of the General Corporation Law of the State of
      Delaware.&#160;&#160;Section B of Article VI of the Registrant&#8217;s Certificate of
      Incorporation provides:</font></div>
    <div><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top">
            <td style="WIDTH: 63pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#8220;(1)</font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><u>Right
                to Indemnification</u>.&#160;&#160;Each person who was or is made a party
                or is threatened to be made a party to or is involved in any action,
                suit
                or proceeding, whether civil, criminal, administrative or investigative
                (hereinafter a &#8220;proceeding&#8221;), by reason of the fact that he or she, or a
                person of whom he or she is the legal representative, is or was a
                director
                or officer, of the Corporation or is or was serving at the request
                of the
                Corporation, as a director, officer, employee or agent of another
                corporation or of a partnership, joint venture, trust or other enterprise,
                including service with respect to employee benefit plans, whether
                the
                basis of such proceeding is alleged action in an official capacity
                as a
                director, officer, employee or agent or in any other capacity while
                serving as a director, officer, employee or agent, shall be indemnified
                and held harmless by the Corporation to the fullest extent authorized
                by
                the General Corporation Law of the State of Delaware, as the same
                exists
                or may hereafter be amended (but, in the case of any such amendment,
                only
                to the extent that such amendment permits the Corporation to provide
                broader indemnification rights than said law permitted the Corporation
                to
                provide prior to such amendment), against all expense, liability
                and loss
                (including attorneys&#8217; fees, judgments, fines, ERISA excise taxes or
                penalties and amounts paid or to be paid in settlement) reasonably
                incurred or suffered by such person in connection therewith and such
                indemnification shall continue as to a person who has ceased to be
                a
                director, officer, employee or agent and shall inure to the benefit
                of his
                or her heirs, executors and administrators; provided, however, that,
                the
                Corporation shall indemnify any such person seeking indemnification
                in
                connection with a proceeding (or part thereof) initiated by such
                person
                only if such proceeding (or part thereof) was authorized by the board
                of
                directors of the Corporation.&#160;&#160;The right to indemnification
                conferred in this Section B shall be a contract right and shall include
                the right to be paid by the Corporation the expenses incurred in
                defending
                any such proceeding in advance of its final disposition; provided,
                however, that, if the General Corporation Law of the State of Delaware
                requires, the payment of such expenses incurred by a director or
                officer
                in his or her capacity as a director or officer (and not in any other
                capacity in which service was or is rendered by such person while
                a
                director or officer, including, without limitation, service to an
                employee
                benefit plan) in advance of the final disposition of a proceeding,
                shall
                be made only upon delivery to the Corporation of an undertaking,
                by or on
                behalf of such director or officer, to repay all amounts so advanced
                if it
                shall ultimately be determined that such director or officer is not
                entitled to be indemnified under this Section or otherwise.&#160;&#160;The
                Corporation may, by action of its Board of Directors, provide
                indemnification to employees and agents of the Corporation with the
                same
                scope and effect as the foregoing indemnification of directors and
                officers.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top">
            <td style="WIDTH: 27pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(2)</font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><u>Non-Exclusivity
                of Rights</u>.&#160;&#160;The right to indemnification and the payment of
                expenses incurred in defending a proceeding in advance of its final
                disposition conferred in this Section&#160;B shall not be exclusive of any
                other rights which any person may have or hereafter acquire under
                any
                statute, provisions of this Certificate of Incorporation, Bylaw,
                agreement, vote of stockholders or disinterested directors or
                otherwise.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top">
            <td style="WIDTH: 27pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(3)</font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><u>Insurance</u>.&#160;&#160;The
                Corporation may maintain insurance, at its expense, to protect itself
                and
                any director, officer, employee or agent of the Corporation or another
                corporation, partnership, joint venture, trust or other enterprise
                against
                any such expense, liability or loss, whether or not the Corporation
                would
                have the power to indemnify such person against such expense, liability
                or
                loss under Delaware General Corporation
                Law.&#8221;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 55.2pt;"></font>Registrant
      maintains directors&#8217; and
      officers&#8217; liability insurance in the amount of $10,000,000 which covers civil
      liabilities.&#160;&#160;Such insurance helps the Registrant to attract qualified
      officers and directors, by providing a means for the Company to pay the costs
      and expenses involved in the event civil litigation is brought against of one
      of
      the Registrant&#8217;s officers or directors.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>Item
      8.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Exhibits</strong></font></div>
    <div><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top">
            <td style="WIDTH: 45pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">4.1</font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">2007
                Equity Incentive Plan</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top">
            <td style="WIDTH: 45pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">4.2</font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">1997
                Employee Stock Purchase Plan (included in the Registrant's S-8, File
                Number 333-35151, incorporated herein by
                reference)</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top">
            <td style="WIDTH: 45pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">4.3</font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Form
                of 2007 Equity Incentive Plan Stock Option
                Agreement</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top">
            <td style="WIDTH: 45pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">4.4</font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Form
                of 2007 Equity Incentive Plan Restricted Stock Unit
                Agreement</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">5.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      Opinion of Heller Ehrman LLP</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font style="DISPLAY: inline; FONT-FAMILY: TmsRmn 12pt, Times New Roman, serif;">23.1</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-FAMILY: TmsRmn 12pt, Times New Roman, serif;">Consent
      of </font>Odenberg Ullakko Muranishi &amp; Co. LLP</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">23.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Consent
      of Ernst &amp; Young LLP</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">23.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Consent
      of Heller Ehrman LLP</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 46.2pt;"></font>(filed
      as part of Exhibit
      5.1)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">24.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Power
      of Attorney (see page II-2)</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>Item
      9.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Undertakings</strong></font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 32.7pt;"></font>A.&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;The
      undersigned
      Registrant hereby undertakes:</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 46.2pt;"></font>(1)&#160;&#160;&#160;&#160;&#160;&#160;&#160;To
      file, during any period in which offers or sales are being made, a
      post-effective amendment to this Registration Statement;</font></div>
    <div><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top">
            <td style="WIDTH: 5px">
              <div>&#160;</div>
            </td>
            <td style="WIDTH: 44px">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(i)</font></div>
            </td>
            <td width="1192">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">To
                include any prospectus required by Section 10(a)(3) of the Securities
                Act
                of 1933, as amended (the &#8220;Securities
                Act&#8221;);</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top">
            <td style="WIDTH: 63pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;</font>(ii)</font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">To
                reflect in the prospectus any facts or events arising after the effective
                date of the Registration Statement (or the most recent post-effective
                amendment thereof) which, individually or in the aggregate, represent
                a
                fundamental change in the information set forth in the Registration
                Statement;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top">
            <td style="WIDTH: 63pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;(iii)</font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">To
                include any material information with respect to the plan of distribution
                not previously disclosed in the Registration Statement or any material
                change to such information in the Registration
                Statement;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><em>provided,
      however,</em> that paragraphs A(1)(i) and A(1)(ii) do not apply if the
      information required to be included in a post-effective amendment by those
      paragraphs is contained in periodic reports filed with or furnished to the
      Commission by the Registrant pursuant to Section 13 or 15(d) of the Exchange
      Act
      that are incorporated by reference in the Registration Statement.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 46.2pt;"></font>(2)&#160;&#160;&#160;&#160;&#160;&#160;&#160;That,
      for the purpose of determining any liability under the Securities Act, each
      such
      post-effective amendment shall be deemed to be a new registration statement
      relating to the securities offered therein, and the offering of such securities
      at that time shall be deemed to be the initial <em>bona fide</em> offering
      thereof.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 46.2pt;"></font>(3)&#160;&#160;&#160;&#160;&#160;&#160;&#160;To
      remove from registration by means of a post-effective amendment any of the
      securities being registered which remain unsold at the termination of the
      offering.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 32.7pt;"></font>B.&#160;&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;The
      undersigned
      Registrant hereby undertakes that, for purposes of determining any liability
      under the Securities Act, each filing of the Registrant&#8217;s annual report pursuant
      to Section 13(a) or 15(d) of the Exchange Act that is incorporated by reference
      in the Registration Statement shall be deemed to be a new registration statement
      relating to the securities offered therein, and the offering of such securities
      at that time shall be deemed to be the initial <em>bona fide</em> offering
      thereof.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 32.7pt;"></font>C.&#160;&#160;<font id="TAB2" style="LETTER-SPACING: 9pt;">&#160;&#160;&#160;</font>&#160;Insofar
      as
      indemnification for liabilities arising under the Securities Act may be
      permitted to directors, officers and controlling persons of the Registrant
      pursuant to the foregoing provisions, or otherwise, the Registrant has been
      advised that in the opinion of the Commission such indemnification is against
      public policy as expressed in the Securities Act and is, therefore,
      unenforceable.&#160;&#160;In the event that a claim for indemnification against
      such liabilities (other than the payment by the Registrant of expenses incurred
      or paid by a director, officer or controlling person of the Registrant in the
      successful defense of any action, suit or proceeding) is asserted by such
      director, officer or controlling person in connection with the securities being
      registered, the Registrant will, unless in the opinion of its counsel the matter
      has been settled by controlling precedent, submit to a court of appropriate
      jurisdiction the question whether such indemnification by it is against public
      policy as expressed in the Securities Act and will be governed by the final
      adjudication of such issue.</font></div>
    <div><br></div>
    <div><br></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div style="WIDTH: 100%" align="left">&#160;&#160;&#160;&#160;&#160;&#160;

          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt;">II-</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
            &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font>&#160;&#160;&#160;&#160;&#160;&#160;</div>&#160;&#160;&#160;&#160;&#160;&#160;

          <div>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<br>&#160;&#160;&#160;&#160;&#160;&#160;</div>&#160;&#160;&#160;&#160;</div>
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><u>SIGNATURES</u></font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 32.7pt;"></font>Pursuant
      to the requirements of the
      Securities Act of 1933, the Registrant certifies that it has reasonable grounds
      to believe that it meets all of the requirements for filing on Form S-8 and
      has
      duly caused this Registration Statement to be signed on its behalf by the
      undersigned, thereunto duly authorized, in the City of Redwood City, State
      of
      California, on this 14th day of January, 2008.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong><font id="TAB1" style="MARGIN-LEFT: 261.6pt;"></font>A.P.
      PHARMA,
      INC.</strong></font></div>
    <div><br></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 261.6pt;"></font>By:&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font id="TAB1" style="MARGIN-LEFT: 0pt;"></font></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 261.6pt;"></font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Gregory
      Turnbull</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 261.6pt;"></font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;President
      and Chief Executive Officer</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 157.6pt;"></font><u>POWER
      OF
      ATTORNEY</u></font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 32.7pt;"></font>KNOW
      ALL MEN BY THESE PRESENTS, that
      each person whose signature appears below does hereby constitute and appoint
      Gregory Turnbull and Paul Goddard, or either of them, with full power of
      substitution, such person&#8217;s true and lawful attorneys-in-fact and agents for
      such person in such person&#8217;s name, place and stead, in any and all capacities,
      to sign any or all amendments (including post-effective amendments) to this
      Registration Statement on Form S-8 and to file the same, with all exhibits
      thereto, and other documents in connection therewith, with the Commission,
      granting unto said attorneys-in-fact and agents full power and authority to
      do
      and perform each and every act and thing requisite and necessary to be done
      in
      and about the premises in order to effectuate the same as fully, to all intents
      and purposes, as he or such person might or could do in person, hereby ratifying
      and confirming all that said attorneys-in-fact and agents may lawfully do or
      cause to be done by virtue hereof.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 32.7pt;"></font>Pursuant
      to the requirements of the
      Securities Act of 1933, this Registration Statement on Form S-8 has been signed
      by the following persons in the capacities and on the dates
      indicated.</font></div>
    <div><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="left" valign="top" width="36%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 192.6pt;"></font>&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Gregory
                H. Turnbull</font></div>
            </td>
            <td align="left" valign="top" width="25%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">President
                and Chief Executive Officer, Director (Principal Executive
                Officer)</font></div>
            </td>
            <td align="right" valign="top" width="22%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">January
                14, 2008</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="36%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 192.6pt;"></font>&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Michael
                O&#8217;Connell</font></div>
            </td>
            <td align="left" valign="top" width="25%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Chief
                Operating Officer and Chief Financial Officer (Principal Accounting
                Officer)</font></div>
            </td>
            <td align="right" valign="top" width="22%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">January
                14, 2008</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="36%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 192.6pt;"></font>&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Paul
                Goddard</font></div>
            </td>
            <td align="left" valign="top" width="25%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Chairman
                of the Board of Directors</font></div>
              <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
              <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
            </td>
            <td align="right" valign="top" width="22%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">January
                14, 2008</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="36%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 192.6pt;"></font>&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Peter
                Riepenhausen</font></div>
            </td>
            <td align="left" valign="top" width="25%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Director</font></div>
              <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
              <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
            </td>
            <td align="right" valign="top" width="22%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">January
                14, 2008</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="36%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 192.6pt;"></font>&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Toby
                Rosenblatt</font></div>
            </td>
            <td align="left" valign="top" width="25%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Director</font></div>
              <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
              <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
            </td>
            <td align="right" valign="top" width="22%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">January
                14, 2008</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="36%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 192.6pt;"></font>&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Arthur
                Taylor</font></div>
            </td>
            <td align="left" valign="top" width="25%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Director</font></div>
              <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
              <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
            </td>
            <td align="right" valign="top" width="22%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">January
                14, 2008</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="36%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 192.6pt;"></font>&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Robert
                Zerbe</font></div>
            </td>
            <td align="left" valign="top" width="25%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Director</font></div>
            </td>
            <td align="right" valign="top" width="22%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">January
                14, 2008</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="36%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="25%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="22%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>

      </table>
    </div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div style="WIDTH: 100%" align="left">&#160;&#160;&#160;&#160;&#160;&#160;

          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt;">II-</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
            &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font>&#160;&#160;&#160;&#160;&#160;&#160;</div>&#160;&#160;&#160;&#160;&#160;&#160;

          <div>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<br>&#160;&#160;&#160;&#160;&#160;&#160;</div>&#160;&#160;&#160;&#160;</div>
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        </div>
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      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 166.45pt;"></font><u>INDEX
      TO
      EXHIBITS</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><u>Item
      No</u>.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<u>Description
      of Item</u></font></div>
    <div><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top">
            <td style="WIDTH: 45pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">4.1</font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">2007
                Equity Incentive Plan</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top">
            <td style="WIDTH: 45pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">4.2</font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">1997
                Employee Stock Purchase Plan (included in the Registrant's S-8, File
                Number 333-35151, incorporated herein by
                reference)</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top">
            <td style="WIDTH: 45pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">4.3</font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Form
                of 2007 Equity Incentive Plan Stock Option
                Agreement</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top">
            <td style="WIDTH: 45pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">4.4</font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Form
                of 2007 Equity Incentive Plan Restricted Stock Unit
                Agreement</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">5.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Opinion
      of Heller Ehrman&#160;&#160;LLP</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font style="DISPLAY: inline; FONT-FAMILY: TmsRmn 12pt, Times New Roman, serif;">23.1</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-FAMILY: TmsRmn 12pt, Times New Roman, serif;">Consent
      of </font>Odenberg Ullakko Muranishi &amp; Co. LLP</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">23.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Consent
      of Ernst &amp; Young LLP</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">23.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Consent
      of Heller Ehrman&#160;&#160;LLP</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><font id="TAB1" style="MARGIN-LEFT: 46.2pt;"></font>(filed
      as part of Exhibit
      5.1)</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">24.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Power
      of Attorney (see page II-2)</font></div>
    <div><br></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div><br>
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{"company-data": {"conformed-name": "AP PHARMA INC /DE/", "cik": "0000818033", "assigned-sic": "2834", "irs-number": "942875566", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "S-8", "act": "33", "file-number": "333-148660", "film-number": "08529337"}, "business-address": {"street1": "123 SAGINAW DRIVE", "city": "REDWOOD CITY", "state": "CA", "zip": "94063", "phone": "6503662626"}, "mail-address": {"street1": "123 SAGINAW DRIVE", "street2": "123 SAGINAW DRIVE", "city": "REDWOOD CITY", "state": "CA", "zip": "94063"}, "former-company": {"former-conformed-name": "ADVANCED POLYMER SYSTEMS INC /DE/", "date-changed": "19920703"}}
appas80108.htm
As
      filed
      with the Securities and Exchange Commission on January 14, 2008 Registration
      No.
      333-_________
SECURITIES
      AND EXCHANGE COMMISSION
WASHINGTON,
      D.C. 20549
FORM
      S-8
REGISTRATION
      STATEMENT UNDER
THE
      SECURITIES ACT OF 1933
A.P.
      Pharma, Inc.
(Exact
      Name of Registrant as Specified in Its Charter)
Delaware
94-2875566
(State
      or
      Other Jurisdiction of 
                                                       
(I.R.S. Employer
Incorporation
      or Organization)        
                                              Identification
      No.)
123
      Saginaw Drive, Redwood City, California 94063
(Address
      of Principal Executive Offices)
2007
      Equity Incentive Plan
1997
      Employee Stock Purchase Plan
(Full
      Title of the Plan)
Gregory
      Turnbull
President
      and Chief Executive Officer
A.P.
      Pharma, Inc.
123
      Saginaw Drive
Redwood
      City, California  94063
(Name
      and
      Address of Agent for Service)
(650)
      366-2626
(Telephone
      Number, Including Area Code, of Agent for Service)
Copy
      to:
Marina
      Remennik, Esq.
Heller
      Ehrman LLP
275
      Middlefield Road
Menlo
      Park, California 94025-3506
(650)
      324-7000
CALCULATION
      OF REGISTRATION
      FEE
Title
                of
                Securities
to
                be
                Registered
Amount
                to be
Registered
                (1)
Proposed
                Maximum
Offering
                Price
per
                Share (2)
Proposed
                Maximum
Aggregate
                Offering
Price
Amount
                of
Registration
Fee
Common
                Stock, par value $0.01
3,100,000
$1.49
$4,619,000
$181.53
(1)
Represents
                3,000,000 shares issuable upon exercise of equity awards to be granted
                under Registrant's 2007 Equity Incentive Plan and 100,000 additional
                shares issuable upon exercise of purchase rights granted under the
                Registrant's 1997 Employee Stock Purchase Plan, including such additional
                number of shares as may be required by reason of
any
                stock
                dividend, stock split, recapitalization or any other similar transaction
                effected without the receipt of consideration which results in an
                increase
                in the number of the Registrant's outstanding shares of common stock, or
                any
anti-dilution provisions of such
                plans.
(2)
Estimated
                solely for the purpose of calculating the amount of the registration
                fee
                pursuant to Rule 457(h) promulgated under the Securities Act 1933,
                as
                amended (the "Securities Act").  Pursuant to Rule 457(c) under
                the Securities Act , the price per share and aggregate offering price
                are
                based upon the average of the high and low prices of the Registrant's
                common stock
as reported on
                the
Nasdaq
                Global Market on January 11,
                2008.
PART
      II
INFORMATION
      REQUIRED IN THE REGISTRATION STATEMENT
The
      shares being registered herein are 3,000,000 shares of common stock authorized
      to be issued under Registrant's 2007 Equity Incentive Plan and 100,000
      additional shares of common stock authorized to be issued under Registrant's
      1997 Employee Stock Purchase Plan.
Item
      3.        Incorporation of Documents by
      Reference
The
      following documents filed or to be filed with the Securities and Exchange
      Commission (the "Commission") by the Registrant are incorporated by reference in
      this Registration Statement:
(a)
The
      Registrant's
      Annual Report on Form 10-K for the fiscal year ended December 31,
      2006;
(b)
The
      Registrant's
      Quarterly Reports on Form 10-Q for the fiscal quarters ended March 31, 2007,
      June 30, 2007 and September 30, 2007;
(c)
The
      Registrant's
      Current Reports on Form 8-K filed with the Commission on May 15, 2007, May
      30,
      2007, June 25, 2007, October 2, 2007 and December 17, 2007;
(d)
The
      description of
      the Registrant's Common Stock contained in the registration statement on Form
      8-A filed with the Commission on August 7, 1987 pursuant to Section 12 of the
      Exchange Act of 1934, as amended (the "Exchange Act"); and
(e)
All
      documents
      subsequently filed by the Registrant pursuant to Sections 13(a), 13(c), 14
      and
      15(d) of the Exchange Act, prior to the filing of a post-effective amendment
      which indicates that all securities offered hereby have been sold or which
      deregisters all securities then remaining unsold.
Item
      5.
Interests
      of Named Experts and
      Counsel
Heller
      Ehrman LLP, counsel to the
      Company, has rendered an opinion with respect to the legality of the Common
      Stock issuable under the 2007 Equity Incentive Plan and the 1997 Employee Stock
      Purchase Plan.  Julian N. Stern, the sole shareholder of a
      professional corporation that is a partner of Heller Ehrman LLP, is the
      Secretary of the Company.  Mr. Stern owns 42,583 shares of the
      Company's Common Stock.
Item
      6.        Indemnification of Directors
      and Officers
The
      Registrant has the power to
      indemnify its officers and directors against liability for certain acts pursuant
      to Section 145 of the General Corporation Law of the State of
      Delaware.  Section B of Article VI of the Registrant's Certificate of
      Incorporation provides:
"(1)
Right
                to Indemnification
.  Each person who was or is made a party
                or is threatened to be made a party to or is involved in any action,
                suit
                or proceeding, whether civil, criminal, administrative or investigative
                (hereinafter a "proceeding"), by reason of the fact that he or she, or a
                person of whom he or she is the legal representative, is or was a
                director
                or officer, of the Corporation or is or was serving at the request
                of the
                Corporation, as a director, officer, employee or agent of another
                corporation or of a partnership, joint venture, trust or other enterprise,
                including service with respect to employee benefit plans, whether
                the
                basis of such proceeding is alleged action in an official capacity
                as a
                director, officer, employee or agent or in any other capacity while
                serving as a director, officer, employee or agent, shall be indemnified
                and held harmless by the Corporation to the fullest extent authorized
                by
                the General Corporation Law of the State of Delaware, as the same
                exists
                or may hereafter be amended (but, in the case of any such amendment,
                only
                to the extent that such amendment permits the Corporation to provide
                broader indemnification rights than said law permitted the Corporation
                to
                provide prior to such amendment), against all expense, liability
                and loss
                (including attorneys' fees, judgments, fines, ERISA excise taxes or
                penalties and amounts paid or to be paid in settlement) reasonably
                incurred or suffered by such person in connection therewith and such
                indemnification shall continue as to a person who has ceased to be
                a
                director, officer, employee or agent and shall inure to the benefit
                of his
                or her heirs, executors and administrators; provided, however, that,
                the
                Corporation shall indemnify any such person seeking indemnification
                in
                connection with a proceeding (or part thereof) initiated by such
                person
                only if such proceeding (or part thereof) was authorized by the board
                of
                directors of the Corporation.  The right to indemnification
                conferred in this Section B shall be a contract right and shall include
                the right to be paid by the Corporation the expenses incurred in
                defending
                any such proceeding in advance of its final disposition; provided,
                however, that, if the General Corporation Law of the State of Delaware
                requires, the payment of such expenses incurred by a director or
                officer
                in his or her capacity as a director or officer (and not in any other
                capacity in which service was or is rendered by such person while
                a
                director or officer, including, without limitation, service to an
                employee
                benefit plan) in advance of the final disposition of a proceeding,
                shall
                be made only upon delivery to the Corporation of an undertaking,
                by or on
                behalf of such director or officer, to repay all amounts so advanced
                if it
                shall ultimately be determined that such director or officer is not
                entitled to be indemnified under this Section or otherwise.  The
                Corporation may, by action of its Board of Directors, provide
                indemnification to employees and agents of the Corporation with the
                same
                scope and effect as the foregoing indemnification of directors and
                officers.
(2)
Non-Exclusivity
                of Rights
.  The right to indemnification and the payment of
                expenses incurred in defending a proceeding in advance of its final
                disposition conferred in this Section B shall not be exclusive of any
                other rights which any person may have or hereafter acquire under
                any
                statute, provisions of this Certificate of Incorporation, Bylaw,
                agreement, vote of stockholders or disinterested directors or
                otherwise.
(3)
Insurance
.  The
                Corporation may maintain insurance, at its expense, to protect itself
                and
                any director, officer, employee or agent of the Corporation or another
                corporation, partnership, joint venture, trust or other enterprise
                against
                any such expense, liability or loss, whether or not the Corporation
                would
                have the power to indemnify such person against such expense, liability
                or
                loss under Delaware General Corporation
                Law."
Registrant
      maintains directors' and
      officers' liability insurance in the amount of $10,000,000 which covers civil
      liabilities.  Such insurance helps the Registrant to attract qualified
      officers and directors, by providing a means for the Company to pay the costs
      and expenses involved in the event civil litigation is brought against of one
      of
      the Registrant's officers or directors.
Item
      8.        Exhibits
4.1
2007
                Equity Incentive Plan
4.2
1997
                Employee Stock Purchase Plan (included in the Registrant's S-8, File
                Number 333-35151, incorporated herein by
                reference)
4.3
Form
                of 2007 Equity Incentive Plan Stock Option
                Agreement
4.4
Form
                of 2007 Equity Incentive Plan Restricted Stock Unit
                Agreement
5.1              
      Opinion of Heller Ehrman LLP
23.1
Consent
      of
Odenberg Ullakko Muranishi & Co. LLP
23.2             Consent
      of Ernst & Young LLP
23.3             Consent
      of Heller Ehrman LLP
(filed
      as part of Exhibit
      5.1)
24.1             Power
      of Attorney (see page II-2)
Item
      9.        Undertakings
A.
The
      undersigned
      Registrant hereby undertakes:
(1)       To
      file, during any period in which offers or sales are being made, a
      post-effective amendment to this Registration Statement;
(i)
To
                include any prospectus required by Section 10(a)(3) of the Securities
                Act
                of 1933, as amended (the "Securities
                Act");
(ii)
To
                reflect in the prospectus any facts or events arising after the effective
                date of the Registration Statement (or the most recent post-effective
                amendment thereof) which, individually or in the aggregate, represent
                a
                fundamental change in the information set forth in the Registration
                Statement;
(iii)
To
                include any material information with respect to the plan of distribution
                not previously disclosed in the Registration Statement or any material
                change to such information in the Registration
                Statement;
provided,
      however,
that paragraphs A(1)(i) and A(1)(ii) do not apply if the
      information required to be included in a post-effective amendment by those
      paragraphs is contained in periodic reports filed with or furnished to the
      Commission by the Registrant pursuant to Section 13 or 15(d) of the Exchange
      Act
      that are incorporated by reference in the Registration Statement.
(2)       That,
      for the purpose of determining any liability under the Securities Act, each
      such
      post-effective amendment shall be deemed to be a new registration statement
      relating to the securities offered therein, and the offering of such securities
      at that time shall be deemed to be the initial
bona fide
offering
      thereof.
(3)       To
      remove from registration by means of a post-effective amendment any of the
      securities being registered which remain unsold at the termination of the
      offering.
B.
The
      undersigned
      Registrant hereby undertakes that, for purposes of determining any liability
      under the Securities Act, each filing of the Registrant's annual report pursuant
      to Section 13(a) or 15(d) of the Exchange Act that is incorporated by reference
      in the Registration Statement shall be deemed to be a new registration statement
      relating to the securities offered therein, and the offering of such securities
      at that time shall be deemed to be the initial
bona fide
offering
      thereof.
C.
Insofar
      as
      indemnification for liabilities arising under the Securities Act may be
      permitted to directors, officers and controlling persons of the Registrant
      pursuant to the foregoing provisions, or otherwise, the Registrant has been
      advised that in the opinion of the Commission such indemnification is against
      public policy as expressed in the Securities Act and is, therefore,
      unenforceable.  In the event that a claim for indemnification against
      such liabilities (other than the payment by the Registrant of expenses incurred
      or paid by a director, officer or controlling person of the Registrant in the
      successful defense of any action, suit or proceeding) is asserted by such
      director, officer or controlling person in connection with the securities being
      registered, the Registrant will, unless in the opinion of its counsel the matter
      has been settled by controlling precedent, submit to a court of appropriate
      jurisdiction the question whether such indemnification by it is against public
      policy as expressed in the Securities Act and will be governed by the final
      adjudication of such issue.
II-
SIGNATURES
Pursuant
      to the requirements of the
      Securities Act of 1933, the Registrant certifies that it has reasonable grounds
      to believe that it meets all of the requirements for filing on Form S-8 and
      has
      duly caused this Registration Statement to be signed on its behalf by the
      undersigned, thereunto duly authorized, in the City of Redwood City, State
      of
      California, on this 14th day of January, 2008.
A.P.
      PHARMA,
      INC.
By:
Gregory
      Turnbull
President
      and Chief Executive Officer
POWER
      OF
      ATTORNEY
KNOW
      ALL MEN BY THESE PRESENTS, that
      each person whose signature appears below does hereby constitute and appoint
      Gregory Turnbull and Paul Goddard, or either of them, with full power of
      substitution, such person's true and lawful attorneys-in-fact and agents for
      such person in such person's name, place and stead, in any and all capacities,
      to sign any or all amendments (including post-effective amendments) to this
      Registration Statement on Form S-8 and to file the same, with all exhibits
      thereto, and other documents in connection therewith, with the Commission,
      granting unto said attorneys-in-fact and agents full power and authority to
      do
      and perform each and every act and thing requisite and necessary to be done
      in
      and about the premises in order to effectuate the same as fully, to all intents
      and purposes, as he or such person might or could do in person, hereby ratifying
      and confirming all that said attorneys-in-fact and agents may lawfully do or
      cause to be done by virtue hereof.
Pursuant
      to the requirements of the
      Securities Act of 1933, this Registration Statement on Form S-8 has been signed
      by the following persons in the capacities and on the dates
      indicated.
Gregory
                H. Turnbull
President
                and Chief Executive Officer, Director (Principal Executive
                Officer)
January
                14, 2008
Michael
                O'Connell
Chief
                Operating Officer and Chief Financial Officer (Principal Accounting
                Officer)
January
                14, 2008
Paul
                Goddard
Chairman
                of the Board of Directors
January
                14, 2008
Peter
                Riepenhausen
Director
January
                14, 2008
Toby
                Rosenblatt
Director
January
                14, 2008
Arthur
                Taylor
Director
January
                14, 2008
Robert
                Zerbe
Director
January
                14, 2008
II-
INDEX
      TO
      EXHIBITS
Item
      No
.
Description
      of Item
4.1
2007
                Equity Incentive Plan
4.2
1997
                Employee Stock Purchase Plan (included in the Registrant's S-8, File
                Number 333-35151, incorporated herein by
                reference)
4.3
Form
                of 2007 Equity Incentive Plan Stock Option
                Agreement
4.4
Form
                of 2007 Equity Incentive Plan Restricted Stock Unit
                Agreement
5.1              Opinion
      of Heller Ehrman  LLP
23.1
Consent
      of
Odenberg Ullakko Muranishi & Co. LLP
23.2             Consent
      of Ernst & Young LLP
23.3             Consent
      of Heller Ehrman  LLP
(filed
      as part of Exhibit
      5.1)
24.1             Power
      of Attorney (see page II-2)
II-