We reimburse members of the Board of Directors
for travel related expenditures related to their services to us.
We made total payments of approximately $125,000
in 2001, $85,000 in 2002 and $20,000 in 2003 to Sanderling
Management Company, LLC, one of our principal stockholders and
an affiliate of Mr. Middleton, chairman of our board of
directors, for reimbursement of consulting, administrative and
financial services performed on our behalf and for reimbursement
of out-of-pocket expenses. We terminated the arrangement for
consulting, administrative and financial services in 2003. We
reimbursed Mr. Middleton for travel expenditures related to
his service as Chairman during 2003.
We made total payments of $5,000 in 2002 and
$25,000 in 2003 to Mr. Kelley, one of our directors, as
compensation for consulting services.
We have entered into various agreements regarding
research collaboration and other matters with Washington
University, in St. Louis, Missouri and other parties affiliated
with it. Dr. Dacey is the Chairman of Neurosurgery of the
Washington University School of Medicine. Dr. Dacey
receives no compensation from Washington University under these
In December 2000 we loaned $54,250 to Bevil Hogg
in connection with the exercise of options to purchase 250,000
shares of common stock. The note bore interest at the rate of 7%
per annum. As of March 31, 2004 the outstanding principal
and interest on the note was $68,195. Mr. Hogg repaid this note
in May 2004.
In November 2001 we loaned $134,700 to Doug Bruce
in connection with the exercise of options to purchase 300,000
shares of common stock. The note is full recourse and bears
interest at the rate of 7% per annum. As of March 31, 2004
the outstanding principal and interest on the note was $158,833.
Principal and interest are due on November 20, 2006.