Transactions and Arrangements
Domain Partners V, L.P and DP V Associates, L.P., two
of our common and preferred stockholders, both of which are
venture capital funds affiliated with Domain Associates, L.L.C.,
loaned us an aggregate of $1,650,000 and $15,000 during the
years ended December 31, 2003 and 2004, respectively. One
of our founding stockholders and chairman of our board of
directors, Eckard Weber, M.D., is an employee of Domain
Associates, L.L.C., the manager of Domain Partners V, L.P.
and DP V Associates, L.P. The notes issued to each of
Domain Partners V, L.P and DP V Associates, L.P.
pursuant to these loans accrued interest from the date of
issuance at an annual rate of 6.25% and matured in January 2004.
During January 2004, the principal amounts outstanding under
these notes and all accrued interest thereunder, totaling
$55,747, were converted into 1,458,259 shares of our
Series A preferred stock, of which Domain Partners V, L.P
was issued 1,424,900 shares and DP V Associates, L.P.
was issued 33,359 shares. Dr. Weber has no ownership
interest, or voting or investment power with respect to the
shares held by Domain Partners V, L.P. and DP V Associates,
During the years ended December 31, 2004, 2005 and 2006, we
reimbursed Domain Associates L.L.C. for certain expenses
incurred on our behalf. These expenses, which included amounts
for rent, totaled $27,535, $9,715 and $28,454 for the years
ended December 31, 2004, 2005 and 2006, respectively. Rent
expense paid under a
rental agreement to Domain Associates L.L.C. totaled $22,825,
$1,900 and $23,500 for the years ended December 31, 2004,
2005 and 2006, respectively.
In August 2006, we entered into a research agreement with Oregon
Health & Science University, or OHSU, one of our
stockholders, for work conducted by the laboratory of
Dr. Michael Cowley, our chief scientific officer. The
agreement is primarily for the continuation of the original
research underlying the license agreement entered into between
us and OHSU in June 2003. We currently expect to pay OHSU up to
approximately $847,500 over the 30 month term of the
agreement. Approximately $182,000 was payable to OHSU as of
December 31, 2006.
Christine Tollefson, M.B.A., is the daughter of our President
and Chief Executive Officer, Gary D. Tollefson, M.D., Ph.D., and
currently serves as our Marketing Manager at a salary of
$120,000 per year, a position she has held since January 2007.
In February 2007, we granted to Ms. Tollefson an option to
purchase 12,500 shares of our common stock at an exercise
price of $10.72 per share, vesting with respect to 25% of the
shares subject to the option in January 2008 and monthly
thereafter over the following three years.