ADMA BIOLOGICS, INC. (NASDAQ:ADMA) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain OfficersItem 5.02
On February 9, 2018, upon recommendation of the Compensation Committee of the Board of Directors (the “Compensation Committee”) of ADMA Biologics, Inc. (the “Company”), the Board of Directors (the “Board”) approved the following cash bonuses and annual incentive awards attributable to 2017 performance for the Company’s named executive officers as set forth below:
| Name | Position |
Cash Bonus ($)(1) |
Number of Shares Underlying Stock Options (#)(2)(3)(4) |
| Adam S. Grossman |
President, Chief Executive Officer and Director |
$136,000 |
350,000 |
| Dr. James Mond |
Executive Vice President, Chief Scientific Officer and Chief Medical Officer |
$72,100 |
150,000 |
| Brian Lenz |
Vice President and Chief Financial Officer |
$72,100 | 150,000 |
| (1) | As previously disclosed by the Company, on June 6, 2017, 50% of each such named executive officers’ annual 2017 bonus, consisting of $136,000, $72,100 and $72,100, was prepaid to Mr. Grossman, Dr. Mond and Mr. Lenz, respectively. The remaining 50% of each such named executive officers’ annual 2017 bonus was awarded as reflected above. |
| (2) | Grant date was February 9, 2018. |
| (3) | The exercise price of $3.71 reflects the per share fair market value of the Company's voting common stock, $0.0001 par value per share (“Common Stock”), as determined by the closing price of the Company's Common Stock on the Nasdaq Capital Market on February 9, 2018, the grant date. |
| (4) | These options vest over four years with 25% of the shares of Common Stock underlying the options vesting on the one year anniversary of the date of grant and the remaining 75% of such shares vesting monthly in equal installments over the next three years, becoming fully vested on February 9, 2022. |
The annual cash bonuses and stock options were awarded in the discretion of the Compensation Committee and were based on each named executive officer’s annual cash bonus and equity targets, as established by the Compensation Committee, and the Compensation Committee’s evaluation of the performance of each named executive officer. As a part of this performance evaluation, the Compensation Committee considered the achievement of the Company’s 2017 corporate goals and milestones.
Furthermore, upon recommendation of the Compensation Committee, the Board approved payments in 2018 of the following relocation and temporary living expenses of the Company’s named executive officers: (i) a one-time reimbursement of real estate relocation transaction fees and other normal and customary related expenses of $212,000, plus appropriate tax gross-up, for Mr. Grossman; (ii) a continuation payment of $5,000 per month in temporary housing expenses, plus appropriate tax gross-up, through December 2018, for Mr. Lenz; and (iii) a payment of $8,000 per month in temporary living expenses, plus appropriate tax gross-up, through December 2018, for Dr. Mond.
The Compensation Committee and the Board agreed to revisit the named executive officers’ annual salaries following the Company’s 2018 Annual Meeting of Stockholders.
About ADMA BIOLOGICS, INC. (NASDAQ:ADMA)
ADMA Biologics, Inc. is a late-stage biopharmaceutical company that develops, manufactures and intends to market specialty plasma-based biologics for the treatment and prevention of infectious diseases. The Company is engaged in the development and commercialization of human plasma and plasma-derived therapeutics. Its segments include Plasma Collection Centers, which includes its operations in Georgia; Research and Development, which includes its plasma development operations in New Jersey, and Corporate. Its targeted patient populations are immune-compromised individuals suffering from an underlying immune deficiency disorder or may be immune-suppressed for medical reasons. Its product candidates are intended to be used by physician specialists focused on caring for immune-compromised patients at risk of contracting infectious diseases. Its intravenous immunoglobulin product candidate, RI-002, is intended for the treatment of primary immune deficiency disease.