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COMMITMENTS
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9 Months Ended | |
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Sep. 30, 2013
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| Commitments and Contingencies Disclosure [Abstract] | ||
| Commitments and Contingencies Disclosure [Text Block] | 9. COMMITMENTS Employment Agreement
On July 29, 2013, the Company announced that Harry Palmin, the Company’s President and CEO and a Director, would step down from his positions with the Company, in order to pursue other opportunities, upon the naming of his successor.
In connection with this management transition, on July 26, 2013, the employment agreement between the Company and Harry Palmin, President and CEO, was amended to provide for a lump-sum payment of $150,000, equal to six months base salary, to provide for the continuation of benefits for six months following a termination without cause prior to March 31, 2014, to provide for the acceleration of vesting of all of Mr. Palmin’s unvested options in the event of a termination without cause or a resignation for good reason, to extend the exercise period of Mr. Palmin’s options to a period of 18 months following termination, and to provide for the payment of $150,000 to Mr. Palmin upon the completion of certain milestones prior to September 30, 2013.
On October 4, 2013, the employment of Mr. Palmin was terminated without cause and Mr. Palmin resigned as a Class III Director of the Company (see Note 10).
Entry into Retention Agreements
Also in connection with the management transition, on July 26, 2013, the Company entered into retention agreements with two executive officers. The retention agreements provide for the payment of a retention bonus equal to thirty percent of the executive’s salary if the executives remain employed with the Company as of December 31, 2013. Furthermore, the agreements provide for a lump-sum payment of six months base salary and continuation of benefits for six months following a termination without cause or resignation with good reason on or before June 30, 2014. Upon such a termination, all unvested options held by the executives shall be credited with an additional six months vesting and all vested options held by the executives shall be exercisable for eighteen months following termination. A total of $392,000 may become payable to the executives pursuant to the retention agreements.
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