AIC for Ragweed Allergy. We have developed a novel injectable product candidate to treat ragweed allergy that we call AIC. AIC is an immunotherapeutic intervention for ragweed allergy, the most common seasonal allergy in North America. Unlike existing products that treat chronic ragweed allergy symptoms, our product candidate targets the underlying cause of ragweed-induced seasonal allergic rhinitis. AIC has completed Phase II trials, and is currently completing a two-year Phase II/III clinical trial. At the end of 2004, we reported that the one-year interim analysis of this Phase II/ III trial showed a clear positive trend relative to the trials major endpoint of nasal symptom scores, as well as other secondary endpoints, following the 2004 ragweed season. The interim analysis indicated that AIC was safely administered and systemic adverse reactions were similar between the AIC and control arms. We intend to complete the Phase II/ III clinical trial as planned. We

EX-10.18 2 f06191exv10w18.htm EXHIBIT 10.18 exv10w18
 

Exhibit 10.18
COMPENSATION ARRANGEMENTS WITH NAMED EXECUTIVE OFFICERS
Named executive officers are compensated under arrangements providing for employment at will and are also parties to Management Continuity and Severance Agreements previously filed.
                         
    Base Salary   Bonus Amount   2005 Stock
Name   (effective 1/1/05)   Paid in 2005   Option Award
             
Dino Dina
   $ 338,000     $ 130,000       50,000 shares  
Bob Coffman
   $ 250,000     $ 96,000       75,000 shares  
Dan Levitt
   $ 260,000     $ 41,667(1)       50,000 shares  
Deborah Smeltzer
   $ 260,000       Not applicable(2)       No grant(3)  
Stephen Tuck
   $ 221,000     $ 85,000       50,000 shares  
Gary Van Nest
   $ 221,000     $ 63,750       25,000 shares  
The stock options granted to the named executive officers by the Compensation Committee were granted on January 20, 2005. The stock options have an exercise price per share of $7.49, which was the fair market value at the time of the grant. Each executive officer’s stock options listed above will vest on an equal monthly basis over a four-year period.
 
(1)  Excludes $58,333 paid as a guaranteed bonus in 2004.
 
(2)  Deborah Smeltzer joined the Company on January 4, 2005 as Vice President, Operations and Chief Financial Officer and was not eligible for a bonus related to 2004 activities but received a signing bonus of $50,000.
 
(3)  Deborah Smeltzer did not receive an annual option grant for 2005; rather she received two option grants at her hiring date of January 4, 2005 totaling 225,000 shares with an exercise price of $7.32, which was the fair market value at the time of the grant. The first option for 200,000 shares vests as to one-quarter of all underlying shares at the one-year anniversary of her grant and 1/48th of all underlying shares on a monthly basis thereafter. The second option for 25,000 shares vests upon the achievement of a specified milestone.