IMO, the company is getting ready for the buyout. It appears to be getting close...thoughts?
Item 5.02 Compensatory Arrangements of Certain Officers
On February 12, 2013, Enzon Pharmaceuticals, Inc. (the “Company”) and Timothy G. Daly entered into a General Severance Agreement (the “Severance Agreement”), which is effective during the remainder of the term of his employment with the Company and, if applicable, for a period of twelve months following any “Change in Control” of the Company (as defined in the Severance Agreement).
The Severance Agreement provides that, in the event the Company terminates Mr. Daly’s employment without “Cause,” or in the event of a termination by Mr. Daly for “Good Reason,” and either such termination occurs within the period that commences ninety (90) days before and ends one year after a “Change in Control,” then Mr. Daly will be entitled to receive: (i) his base salary through the date of termination; (ii) a pro-rated portion of his target bonus which would have been payable to him for the fiscal year in which termination occurs; (iii) a cash payment equal to one times his base salary at the time of termination; (iv) any deferred compensation and other unpaid amounts and benefits earned and vested prior to termination; (v) reimbursement for the total applicable premium cost for continued medical and dental coverage under COBRA for Mr. Daly and his family for a period of up to twelve months following termination; and (vi) executive outplacement assistance, as determined by the Company in its discretion. The agreement also provides that in the event of a “Change in Control,” all options, restricted stock and restricted stock units held by Mr. Daly will become fully vested and, if applicable, exercisable immediately prior to the effective date of the “Change in Control”.
The foregoing description does not purport to be complete and is qualified in its entirety by reference to the complete text of the Severance Agreement, a copy of which is attached as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated herein by reference.
You make a good point on this. At a minimum, they look to be laying the ground work for when a sale takes place. Look to be a fair severance package (for an executive) for both employee and employer. He will get a lump sum payout of around $215,000 (approx annual salary),any pro-rated bonus he was due, and re-imbursed for any Cobra health care costs incurred for he and his family.
When the VP, Controller and Accounting Officer, is being shown the door- a sale is imminent IMO.
Yea, I also agree that this is yet another indication that it's coming... When? Whenever... It will be worth it.
I like those exec contracts: "or in the event of a termination by Mr. Daly for “Good Reason,” Good reason can mean you are stealing from the company or asleep @ the wheel. That's not right but...