Robin E. Abrams – General Counsel & Chief Administrative Officer
Pursuant to the employment agreement that became effective on April 12, 2016, we agreed to pay to Ms. Abrams an annual base salary of $700,000, subject to an automatic increase of three percent (3%) above the amount of her base salary in effect at the end of the prior calendar year, beginning with January 1, 2017 and ending on the third (3rd) anniversary of the occurrence of a Change of Control. The Compensation Committee may increase Ms. Abrams base salary by additional discretionary amounts but any such additional discretionary amounts shall be disregarded when calculating the amount of any automatic increase in Ms. Abrams base salary. Under the terms of the employment agreement, Ms. Abrams is also eligible to receive an annual cash bonus, the target of which is 100% of her base salary.
On August 1, 2016, the existing agreement was amended and restated (August 2016 Abrams Agreement) in connection with Ms. Abrams assuming the role of Executive Vice President and General Counsel at vTv Therapeutics, Inc. while continuing to serve in her existing roles at SIGA (the Amended and Restated Abrams Agreement). Pursuant to the Amended and Restated Abrams Agreement, we agreed to pay to Ms. Abrams an annual base salary of $490,000, subject to an automatic increase of three percent (3%) above the amount of her base salary in effect at the end of the prior calendar year, beginning with January 1, 2017 and ending on the third (3rd) anniversary of the occurrence of a Change of Control.
On August 1, 2018, the August 2016 Abrams Agreement was amended and restated in its entirety (2018 Abrams Agreement), in which the Company agreed to pay Ms. Abrams an annual base salary of $519,841, subject to an automatic increase of three percent (3%) above the amount of her base salary in effect at the end of the prior calendar year, beginning with January 1, 2019 and ending on the third (3rd) anniversary of the occurrence of Change of Control.
On January 1, 2019, Ms. Abrams base salary was increased to $535,436. The Compensation Committee may increase Ms. Abrams base salary by additional discretionary amounts but any such additional discretionary amounts shall be disregarded when calculating the amount of any automatic increase in Ms. Abrams base salary. Under the terms of the 2018 Abrams Agreement, Ms. Abrams is also eligible to receive an annual cash bonus, the target of which is 100% of her base salary.
In the event of a Change of Control of the Company, Ms. Abrams shall receive an annual cash bonus for the year in which the Change of Control occurs equal to the greater of (i) the target annual bonus for such year or (ii) the annual bonus determined based upon the applicable performance criteria and goals for such year, provided that Ms. Abrams remains employed on the last day of such calendar year. The term of her employment, pursuant to employment, pursuant to the 2018 Abrams Agreement, expires at the end of the two (2) year anniversary from when the agreement becomes effective and will automatically renew for additional one (1) year periods unless notice of non-renewal is given; provided, however, that the agreement shall not automatically renew upon the expiration of any subsequent term that ends following the third (3rd) anniversary of the occurrence of a Change of Control.
Details with respect to our severance obligations to Ms. Abrams are set forth below under the heading Potential Payments upon Termination or Change of Control.
Eric A. Rose – Executive Chairman of the Board
On April 12, 2016, in connection with the effective date of the POR, Dr. Roses employment agreement was amended and restated. Pursuant to the amended and restated agreement, Dr. Roses base salary increased to $787,856 and Dr. Rose became eligible for an annual cash bonus equivalent to 100% of base salary. On October 13, 2016, Dr. Rose employment agreement was further amended and restated in connection with Dr. Roses transition from Chief Executive Officer to Executive Chairman of the Board (October 2016 Amended and Restated Rose Agreement). Pursuant to the October 2016 Amended and Restated Rose Agreement, Dr. Roses base salary was adjusted to $740,000. Additionally, Dr. Rose was issued 300,000 restricted stock units (RSUs) in November 2016, pursuant to the terms of the October 2016 Amended and Restated Agreement.
Pursuant to the October 2016 Amended and Restated Rose Agreement, we agreed to pay to Dr. Rose an annual base salary of $740,000 until October 13, 2017, and $700,000 for the twelve month period thereafter. The Compensation Committee could have increased Dr. Roses base salary by additional discretionary amounts. The October 2016 Amended and Restated Rose Agreement terminated on October 13, 2018. Under the terms of the October 2016 Amended and Restated Rose Agreement, Dr. Rose was eligible to receive an annual cash bonus for the 2016 performance year, subject to the discretion of the Board of Directors.