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COMMITMENTS
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6 Months Ended | ||
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Jun. 30, 2011
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| COMMITMENTS |
Retention Agreements
The
Company entered into retention agreements with each of its four
vice presidents. The agreements provide for the lump-sum
payment of six months’ base salary and benefits to each such
officer following a termination without cause or a resignation with
good reason occurring on or before November 14,
2011. Certain of the agreements provide that if the
executives were employed with Novelos as of October 1, 2010, they
would receive a payment of two months’ base salary as a
retention bonus on that date. The retention bonus of $68,000 was
paid in October 2010 and will be deducted from the severance
amounts that may become payable upon a subsequent involuntary
termination. The total remaining amount that may become
payable to the Company’s executive officers pursuant to the
retention agreements is approximately $350,000.
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