May 27, 2005
Dr. Ramon Mohanlal
35 Park Drive — Apt. 18
Boston, MA 02215
Dear Ramon:
On behalf of Interleukin Genetics, I
am pleased to offer you the position of Chief Medical Officer. This
offer, which is contingent upon approval by the Board of Directors,
will be put before the Board on June 8. This position reports
to Dr. Philip Reilly, CEO. The annualized compensation for
this regular, full-time position is $270,000, derived and paid
monthly at the rate of $22,500.00 per month. As part of your
compensation, we will recommend to the Board of Directors for
approval at their next meeting that you be granted a stock option
award to purchase 200,000 shares of Interleukin Genetics stock. The
strike price will be set at the closing price of the stock on the
date the options are issued. The options will vest as
follows:
20,000 shares on December 31,
2005
3,333 shares each month from January 31, 2006 through
June 30, 2006
4,167 shares each month from July 31, 2006 through
June 30, 2007
5,000 shares each month from July 31, 2007 through
June 30, 2008
4,167 shares each month from July 31, 2008 through
May 31, 2009
4,161 shares on June 30, 2009
We will maximize the ISO portion of
the award, utilizing the maximum allowable under IRS code ($100,000
per year). All remaining options will be nonqualified stock
options.
As a regular full-time employee, you
will be able to participate in our employee benefit plans.
Interleukin Genetics currently offers group health and dental
plans, short- and long-term disability, life insurance and
accidental death and dismemberment insurance, as well as a
401(k) program and Employee Stock Purchase Pr
