Royalties, License and Employment Agreements

12 Months Ended

Dec. 31, 2018

Royalties License And Employment Agreements

Royalties, License and Employment Agreements

(11) Royalties, License and Employment Agreements

The Company had contractual agreements with Named Executive Officers (“Officers”) in 2018, and 2017. The aggregate annual base compensation for these Officers under their respective contractual agreements for 2018, and 2017 was $ 1,247,000, and $1,164,000 respectively. In addition, certain of these Officers were entitled to receive performance bonuses of up to 25% or 20% of their respective annual base salary, at the sole discretion of the Compensation Committee of the Board of Directors. In 2018 and 2017, no Officers’ bonuses were granted.

In 2018, equity was granted as a form of compensation to these Officers:

● The Company granted to Thomas K. Equels, Chief Executive Officer, consistent with his employment agreement 300,000 ten year options to purchase common stock with an exercise price of $0.30 per share which vest in one year and 1,192,003 ten year options with exercise prices of $0.22 to $0.38 which vest in one to three years for 40% and 50% salary deferrals; and

● The Company granted 430,668 ten year options to purchase common stock with exercise prices of $0.22 to $0.38 per share which vest in one to three years to Adam Pascale, Chief Financial Officer for 40% and 50% salary deferrals; and

● The Company granted 597,935 ten year options to purchase common stock with exercise prices of $0.22 to $0.38 per share which vest in one to three years to Peter Rodino, General Counsel and Company Secretary for 40% and 50% salary deferrals.

In 2017, equity was granted as a form of compensation to these Officers:

● The Company granted to Thomas K. Equels, Chief Executive Officer, consistent with his employment agreement 300,000 ten year options to purchase common stock with an exercise price of $0.56 per share which vest in one year and 113,135 ten year options with exercise prices of $0.36 to $0.49 which vest in three years for a 20% reduction in salary; and

● The Company granted 37,712 ten year options to purchase common stock with exercise prices of $0.36 to $0.49 per share which vest in three years to Adam Pascale, Chief Financial Officer for a 20% reduction in salary; and

● During 2017, we granted 52,796 ten year options to purchase common stock with exercise prices of $0.36 to $0.49 per share which vest in three years to Peter Rodino, General Counsel and Company Secretary for a 20% reduction in salary.

The Company recorded stock compensation expense of approximately $145,000 and $86,000 during the years ended December 31, 2018 and 2017 respectively with regard to these issuances.