Accrued Expenses

Accrued expenses consisted of the following (in thousands):



	September 30, 2018		December 31, 2017
Development costs	$	3,036	$	2,581
Employee compensation (including reduction in workforce)	623		735
Severance to former CEO	660		—
Professional fees	725		463
Other	126		34
	$	5,170	$	3,813

Stephen A. Hurly departed as the President and Chief Executive of the Company, effective as of August 7, 2018. In connection with his departure, Mr. Hurly and the Company entered into a separation agreement and general release, dated September 28, 2018 (the “Separation Agreement”), which sets forth the terms of Mr. Hurly’s separation from the Company. Pursuant to the Separation Agreement, subject to Mr. Hurly agreeing to a release of claims and complying with certain other continuing obligations contained therein, the Company will pay Mr. Hurly the total amount of $637,500, less applicable withholdings and deductions, which consists of the equivalent of twelve months of Mr. Hurly’s base salary ($425,000) immediately prior to his departure and Mr. Hurly’s annual target bonus for 2018 ($212,500). In addition, the Company, to the extent allowed by applicable law and the applicable plan documents, will continue to provide Mr. Hurly and certain of his dependents with group health and dental insurance for a period of up to twelve months after the effective date of the Separation Agreement.

On August 7, 2018, the Company’s board of directors (the “Board”) appointed Thomas R. Cannell, D.V.M., as the Company’s President and Chief Executive Officer. In connection with his appointment, the Company entered into an employment agreement ("Employment Agreement") with Dr. Cannell, which provides for a one-time relocation payment in the amount of $280,000. If, prior to the two-year anniversary of August 7, 2018, Dr. Cannell resigns without “Good Reason” (as such term is defined in the Employment Agreement) or is terminated with “Cause” (as such term is defined in the Employment Agreement), Dr. Cannell is required to repay the Company the total sum of relocation benefits paid to Dr. Cannell pursuant to the Employment Agreement. As of September 30, 2018, the one-time relocation payment has been paid.