Item
5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of
Certain Officers.
Employment
Agreement with Dr. Stephen Snowdy
On
December 30, 2022, LadRx Corporation (the “Company”) entered into a new employment agreement with Dr. Stephen
Snowdy, effective as of January 1, 2023 (the “Snowdy Employment Agreement”), pursuant to which the Company
agreed to continue to employ Dr. Snowdy as its Chief Executive Officer through December 31, 2025, unless terminated sooner in accordance
with the terms of the Snowdy Employment Agreement (the “Snowdy Term”). In the event that Dr. Snowdy’s
employment has not been terminated and the Company has not offered to extend or renew Dr. Snowdy’s employment under the Snowdy
Employment Agreement upon expiration of the Snowdy Term, in lieu of any other severance benefits as provided in the Snowdy Employment
Agreement, the Company shall continue to pay Dr. Snowdy his salary commencing on the final date of the Snowdy Term and ending on (a)
June 30, 2026, or (b) the date of Dr. Snowdy’s re-employment with another employer, whichever is earlier; provided that Dr. Snowdy
shall have executed and delivered to the Company a General Release of All Claims.
Pursuant
to the Snowdy Employment Agreement, Dr. Snowdy is entitled to receive an annual salary of $520,000, less applicable payroll deductions
and tax withholdings. Dr. Snowdy also is eligible for an annual target performance-based bonus (the “Snowdy Target Bonus”),
equal to 50% of Dr. Snowdy’s annual salary during the Snowdy Term, with such bonus dependent in
part on the Company’s performance and the Compensation Committee’s discretion in assessing Dr. Snowdy’s individual
performance in relation to his objectives as determined by the Company’s Board of Directors and the overall performance and status
of the Company, payable no later than February 28th of the calendar year following the calendar year in which the Snowdy
Target Bonus relates. The Snowdy Employment Agreement also entitles Dr. Snowdy to receive customary benefits and reimbursement for ordinary
business expenses.
In
the event Dr. Snowdy’s employment is terminated without cause, due to disability or death, or due to good reason by Dr. Snowdy
(each term as defined in the Snowdy Employment Agreement), the Company has agreed to, among other things, (i) pay Dr. Snowdy or his heirs
or personal representatives, as applicable, a lump-sum severance amount equal to twelve months’ base annual salary and an amount
equal to the prorated portion of the Snowdy Target Bonus for the year in which the termination occurred based on the number of days Dr.
Snowdy was employed, or an amount equal to eighteen months’ annual salary and the full Snowdy Target Bonus amount if such termination
occurs within six months prior to or within twelve months following a change in control; and (ii) reimburse Dr. Snowdy and his dependents
all premiums associated with Dr. Snowdy’s continuation of health insurance pursuant to the Consolidated Omnibus Budget Reconciliation
Act of 1986 (“COBRA”), subject to certain conditions. In the event Dr. Snowdy’s employment is terminated
without cause or by Dr. Snowdy due to good reason, all of Dr. Snowdy’s vested stock options and any other vested equity awards
will remain exercisable for their full term notwithstanding the termination of his employment. In the event Dr. Snowdy’s employment
is terminated due to disability or death, all of Dr. Snowdy’s unvested stock options and other equity awards based on the Company’s
securities will immediately vest in full and all of Dr. Snowdy’s stock options and any other equity awards will remain exercisable
for their full term notwithstanding the termination of his employment.
The
foregoing description of the material terms of the Snowdy Employment Agreement does not purport to be a complete description of the terms
and provisions therein and is qualified in its entirety by reference to the full text of the Snowdy Employment Agreement. The full text
of such agreement will be filed as an exhibit to the Company’s Annual Report on Form 10-K for the year ending December 31, 2022.
Employment
Agreement with John Y. Caloz
On
December 30, 2022, the Company entered into a new employment agreement with John Y. Caloz, effective January 1, 2023 (the “Caloz
Employment Agreement”), pursuant to which the Company agreed to continue to employ Mr. Caloz as its Chief Financial Officer
and Senior Vice President through December 31, 2025, unless terminated sooner in accordance with the Caloz Employment Agreement (the
“Caloz Term”). In the event that Mr. Caloz’s employment has not been terminated and the Company has not
offered to extend or renew Mr. Caloz’s employment under the Caloz Employment Agreement upon expiration of the Caloz Term, in lieu
of any other severance benefits as provided in the Caloz Employment Agreement, the Company shall continue to pay Mr. Caloz his salary
commencing on the final date of the Caloz Term and ending on (a) June 30, 2026, or (b) the date of Mr. Caloz’s re-employment with
another employer, whichever is earlier; provided that Mr. Caloz shall have executed and delivered to the Company a General Release of
All Claims.
Pursuant
to the Caloz Employment Agreement, Mr. Caloz is entitled to receive an annual salary of $416,000, less applicable payroll deductions
and tax withholdings. Mr. Caloz also is eligible for an annual target performance-based bonus (the “Caloz Target Bonus”),
equal to 40% of Mr. Caloz’s annual salary during the Caloz Term, with such bonus dependent in
part on the Company’s performance and the Compensation Committee’s discretion in assessing Mr. Caloz’s individual performance
in relation to his objectives as determined by the Company’s Board of Directors and the overall performance and status of the Company,
payable no later than February 28th of the calendar year following the calendar year in which the Caloz Target Bonus relates.
The Caloz Employment Agreement also entitles Mr. Caloz to receive customary benefits and reimbursement for ordinary business expenses.
In
the event Mr. Caloz’s employment is terminated without cause, due to disability or death, or due to good reason by Mr. Caloz (each
term as defined in the Caloz Employment Agreement), the Company has agreed to, among other things, (i) pay Mr. Caloz or his heirs or
personal representatives, as applicable, a lump-sum severance amount equal to twelve months’ base annual salary and an amount equal
to the prorated portion of the Caloz Target Bonus for the year in which the termination occurred based on the number of days Mr. Caloz
was employed, or an amount equal to eighteen months’ annual salary and the full Caloz Target Bonus amount if such termination occurs
within six months prior to or within twelve months following a change in control; and (ii) reimburse Mr. Caloz and his dependents for
all Medicare premiums and premiums associated with Mr. Caloz continuation of health insurance pursuant to COBRA, subject to certain conditions.
In the event Mr. Caloz’s employment is terminated without cause or by Mr. Caloz due to good reason, all of Mr. Caloz’s vested
stock options and any other vested equity awards will remain exercisable for their full term notwithstanding the termination of his employment.
In the event Mr. Caloz’s employment is terminated due to disability or death, all of Mr. Caloz’s unvested stock options and
other equity awards based on the Company’s securities will immediately vest in full and all of Mr. Caloz’s stock options
and any other equity awards will remain exercisable for their full term notwithstanding the termination of his employment.
The
foregoing description of the material terms of the Caloz Employment Agreement does not purport to be a complete description of the terms
and provisions therein and is qualified in its entirety by reference to the full text of the Caloz Employment Agreement. The full text
of such agreement will be filed as an exhibit to the Company’s Annual Report on Form 10-K for the year ending December 31, 2022.