Document:

Annual Incentive Plan Summary

 Exhibit 10.1 
 DELCATH SYSTEMS, Inc. 
 Annual Incentive Plan Summary 

Plan Summary for Participants 
 Effective: 
 January 1, 2011 

 AIP Plan Summary 
  

 Highlights 
 Delcath Systems, Inc. (“Delcath” or “Company”) has created this Annual Incentive Plan (“AIP” or “Plan”) to reward you for your contributions to the success of the
Company through individual and corporate performance. The AIP is an incentive form of cash compensation designed to better align your interests with those of the Company and its stockholders. The Company believes that development, commercialization,
growth and future profitability will help contribute to increased shareholder value and the Plan provides you with an opportunity to receive a cash bonus on an annual basis depending upon the achievement of pre-determined corporate and individual
performance criteria. As a participant in the AIP, you play an important role in helping to achieve Delcath’s goals and its future success. 
 The AIP is designed to meet the following objectives: 
  

	•	 	 Focus Delcath’s employees on critical objectives – corporate, business area and individual results 

 

	•	 	 Strengthen the link between pay and overall performance 

 

	•	 	 Offer competitive, market-based annual incentive award opportunities 

 

	•	 	 Encourage and reward behavior that reflects Delcath’s competencies (e.g., teamwork and collaboration, accountability for results)

  

	•	 	 Provide significant rewards for exceptional performance and no rewards for substantial underachievement 

This AIP summary provides detailed information about the Plan, including: 

 

	•	 	 How the AIP works 

  

	•	 	 How performance goals are established 

  

	•	 	 How performance is measured 

  

	•	 	 How awards are calculated 

  
 Page 2

 AIP Plan Summary 
  

 Overview 
 As a participant in the AIP, you are eligible to receive an annual cash incentive award based on Delcath’s performance and your overall performance during each fiscal year. Your annual incentive
target award opportunity is expressed as a percentage of your actual base salary. 
 As an overview, the AIP includes the following features:

  

	•	 	 Each AIP year begins on the first day of January (“fiscal year”). 

 

	•	 	 The Plan consists of two performance components, corporate and individual, and are weighted differently depending upon your position in the Company.

  

	•	 	 At the beginning of each fiscal year, corporate financial performance objectives are established by the Company’s Board of Directors
(“Board”) or the Compensation Committee of the Board (“Committee”). You and your manager will also establish a performance plan detailing your individual performance goals which include management by objectives (MBOs) for the
year. 

  

	•	 	 Details regarding your specific individual performance goals, including your award opportunity for the upcoming year and the corporate financial
performance objectives will be provided in a document called the individual AIP worksheet (“Individual AIP Worksheet”). A sample Individual AIP Worksheet is attached hereto as Appendix A. 

 

	•	 	 At the end of the fiscal year, the Company’s performance is compared to the corporate goals and the percent of incentive target achieved is
determined for the corporate component of your annual incentive award opportunity. 

  

	•	 	 Additionally, at the end of the fiscal year, your overall performance, including individual goals, are assessed and the percent of incentive target
achieved is determined for the individual component of your annual incentive award opportunity. 

  

	•	 	 In general, AIP awards, if earned, are paid on or before March 15 of each fiscal year. 

Incentive Award Opportunity 
 At the
beginning of each fiscal year, the target incentive award opportunity for that year is established and eligible participants are notified of their participation for the new fiscal year. Annual incentive award opportunities are stated as an annual
incentive target based on a percentage of your base salary. Target incentive 

  
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 AIP Plan Summary 
  

 
award information will be communicated in the Individual AIP Worksheet. The incentive range indicates the minimum and maximum AIP award percentages that you can receive, depending upon the actual
attained performance results at the end of the year. 
 The incentive plan minimum indicates the percentage of your base salary that you are
eligible to receive as an AIP award for the minimum level of acceptable performance. The minimum is the point below which no AIP award is earned for the performance component. The incentive plan maximum, achieved when performance exceeds the agreed
upon goals, indicates the percentage of your base salary that you are eligible to receive as an AIP award for maximum performance. 
 At the
beginning of each fiscal year, the Company will provide you with that year’s performance and payout scale which outlines the minimum and maximum expected performance levels and corresponding payout award opportunities. 

Under the AIP, the incentive ranges and assignment of Delcath’s positions are based on competitive market practices and the determination of
management and the Committee. 
 The actual value of your incentive award will depend on actual performance levels achieved during the fiscal
year, referred to as the “Total AIP Payout Opportunity Earned”, as shown in the Individual AIP Worksheet. This percentage is calculated for both the corporate and individual performance components. 

Components of Performance: 
 Corporate
Objectives & Individual Performance 
 Your annual incentive opportunity is comprised of two components: 

 

	•	 	 Corporate Performance 

  

	•	 	 Individual Overall Performance 

 At the beginning of each fiscal year, corporate performance objectives are established by the Board or the Committee relative to key financial and non-financial performance measures. These measures and
corresponding objectives are used as the basis for measuring the Company’s degree of success at fiscal year-end. 

  
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 AIP Plan Summary 
  

 For the individual component, your performance plan serves as the mechanism to capture key individual
MBOs, and an assessment of overall performance. The individual goals are generally tailored to relate to matters within each person’s specific department, function or area of responsibility. Individual goals and objectives for the year will be
documented on an Individual AIP Worksheet. 
 The following chart summarizes the performance components under the AIP: 

 

			
	Performance	 	
	Component	 	Performance Measures
		
	Corporate	 	Financial and non-financial corporate objectives for the Company
		
	Individual	 	Individual objectives (MBOs) tailored for very specific goals that reflect overall Company or specific business area objectives

At the end of each fiscal year, actual performance results are measured against the established performance corporate and individual performance
objectives and expectations. The allocation of AIP awards is determined by: (1) the extent to which the corporate performance objectives are achieved and individual performance levels are attained, and (2) the weights assigned to the
corporate and individual components. 
 The component weights vary by level of position in the Company and are based on degree of control,
organizational level, scope of responsibility and business area. 
 Specifically: 

 

					
	 Weightings By Incentive Component

	 Position
	  	Corporate Performance	 	Individual 
Overall
Performance
	 CEO & Executive Vice Presidents
	  	75%	 	25%
	 Senior Vice Presidents & Vice Presidents
	  	70%	 	30%
	 Senior Directors & Directors
	  	60%	 	40%
	 Managers & Individual Contributors
	  	50%	 	50%

  
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 AIP Plan Summary 
  

 Corporate Component – More Details 
 A portion of your AIP award is based on Delcath’s performance. At the beginning of each fiscal year objectives are established and may include both financial and non-financial targets. The Company
will establish a range of acceptable financial performance results for the year (the “payout curve”). Each payout curve will include the target for the year and the minimum and maximum incentive levels for that particular component.

 The percentage of weighting for specific corporate objectives varies by position. 
 Following the end of each fiscal year, the actual corporate financial and non-financial results for each objective are compared to the payout curve to determine the amount of payment, if any, related to
the achievement of the corporate component of the AIP. 
 Individual Performance Component – More Details 

A portion of your AIP is also based on your individual and overall performance for each fiscal year. Your manager will document your individual
performance objectives at the beginning of each fiscal year in the Individual AIP Worksheet. Your manager will then also document your performance at the end of each fiscal year based on their assessment of your specific performance compared to your
individual objectives (MBOs) and your overall performance for that fiscal year. In considering your overall performance for the year, your manager will evaluate whether you have met any or all of your MBOs, demonstrated corporate competencies in the
achievement of results, provided strong contributions during the year, and accomplished your day-to-day responsibilities. 
 Each year managers
are provided with specific individual performance criteria as guidance in determining the individual component under the AIP. These recommendations are then reviewed by Delcath’s President and CEO and, for the Company’s Officers, by the
Committee. 
 Award Restrictions 

Corporate Performance: The maximum total payout of the incentive plan shall be equal to a percentage of the Company’s operating profit
(operating profit/(loss) defined as before the cost of the bonus program is deducted) as determined by the Committee. In the event the payout to all participants would exceed the annual percentage limitation of the Company’s operating
profit/(loss), all bonus payments will be reduced appropriately so as not to exceed the annual percentage limitation. 

  
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 AIP Plan Summary 
  

 Individual Performance: No annual incentive awards are paid if an individual is placed on a
performance enhancement plan, regardless of corporate performance outcomes. 
 In addition to the limitations set forth above, the Company may
establish new limitations or restrictions, including modifying minimums for award payouts or limiting maximum payouts and may modify existing restrictions. 
 Individual AIP Worksheet 
 The Individual AIP Worksheet will be provided to each eligible
plan participant and will provide the specific details of your participation in the current year’s plan including the following: 
  

	•	 	 Your actual target bonus award opportunity, including the minimum and maximum, expressed as a percent of base salary. 

 

	•	 	 Applicable corporate financial performance goals, as approved by the Board, and your individual performance objectives developed in conjunction with
your manager for the year. 

  

	•	 	 Weightings for the corporate and individual performance objectives and those within each of these categories. 

 

	•	 	 Performance and payout scale for each corporate and individual objective. 

 Administration of the Plan 
 The AIP shall be administered by the Committee, which shall
have full power and discretionary authority to interpret the AIP, to construe any doubtful or disputed terms, to amend or modify the Plan as it deems appropriate, to determine the amount of benefits payable to an employee, to prescribe, amend and
rescind any rules, forms and procedures as it deems necessary or appropriate for the proper administration of the AIP, to make any other determinations, including factual determinations, and to take any other such actions as it deems necessary or
advisable in carrying out its duties under the AIP. 

  
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 AIP Plan Summary 
  

 Miscellaneous 
 This AIP Summary describes the provisions of the Delcath Systems, Inc. Annual Incentive Plan. Delcath reserves the right to amend, suspend or terminate the AIP at any time, for any reason or no reason.
Enrollment in this AIP is not a guarantee of employment and employment with Delcath is not a guarantee of continued participation in this AIP. 

Enrollment in the AIP is not a guarantee that a bonus award will be paid. Actual awards, if any, will be determined based on the performance of Delcath
and individual employees and will be determined at the discretion of the Committee. 
 Frequently Asked Questions: 

Who may participate in the plan? All Delcath employees are eligible to participate in the AIP. 

When are new hires eligible to participate in the AIP? Most new hires are immediately eligible to participate, with awards prorated to reflect the
period of employment during the fiscal year. However, new employees who start in the last quarter of the Company’s fiscal year (on or after October 1) will wait until the new fiscal year to participate. The Committee may, in its sole
discretion, determine who shall be eligible to participate in the AIP and may establish such criteria as it deems fit for each fiscal year. 

When do I receive the corporate and individual performance criteria for a fiscal year? During the first quarter of each fiscal year, you will be
provided with an Individual AIP Worksheet that outlines the corporate objectives for such fiscal year. Additionally, you and your manager will prepare and complete your individual objectives on a Performance Plan which will also be included on your
Individual AIP Worksheet once finalized. 
 How do I know about my percentage targets, minimum and maximum payout, corresponding payout
curves and any limitations? During the first quarter of each fiscal year, you shall be provided with an Individual AIP Worksheet that outlines the percentage targets (minimum, target and maximum) and the payout curve for each performance
component and any limitations. 
 Do I receive my bonus if I leave Delcath? The payment of an incentive depends on the circumstances
under which an employee leaves Delcath. Specifically: 
 Voluntary Separation: Employees who voluntarily leave Delcath before any
incentives are paid out will forfeit the entire annual incentive award, regardless of any amounts earned. You must be an active employee on the date awards are paid to receive an award. 

  
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 AIP Plan Summary 
  

 Involuntary Separation without Cause: Employees with length of service greater than six months in
the fiscal year who are terminated by the Company without cause will generally be entitled to a pro-rata portion of the award (depending upon date of termination) to which he or she would have been entitled, had the employee remained employed
throughout the full fiscal year. Such pro-rated award, if any, may be paid at such time as other employees receive their AIP awards and will be based on the actual performance achieved during that period. 

Length of Service: Employees who leave the Company with less than or equal to six months of service in the fiscal year forfeit their bonus payout.

 Involuntary Separation for Cause: Employees whose employment is terminated by the Company due to cause will forfeit the entire annual
incentive award regardless of when they were terminated. 
 When are AIP awards paid? If an award is earned during a fiscal year, the
Company will generally pay such award no later than March 15 of the following fiscal year but in no event shall the award be paid before the Committee knows the financial performance of the Company for the applicable fiscal year. No interest
will be paid to the employee if the award is paid after March 15. 
 Is my base salary used to calculate my award? For award
calculation purposes, your actual base salary for the fiscal year is used, rather than your actual base salary on any given date. This approach takes into account different base salary levels that may apply during any given fiscal year and unpaid
leaves of absence, during which a participant is not eligible for an incentive. 
 Who do I call if I have questions about the AIP? If
you have questions after reading this AIP Plan Summary, you may contact your manager or the Human Resources Department. 

  
 Page 9Long-Term Incentive Plan Summary

 Exhibit 10.2 
 DELCATH SYSTEMS, Inc. 
 Long-Term Incentive Plan Summary 

Plan Summary for Participants 
 Effective: January 1, 2011 

 Long-Term Incentive Plan Summary 

 

 Highlights 
 Delcath Systems, Inc. (“Delcath” or “Company”) created this Long-Term Incentive Plan (“LTIP”) to reward you for your contributions to the long-term success of the Company.
The Company’s objective is to develop a share-based plan that will support Delcath’s philosophy and culture, as well as provide an incentive to increase shareholder value and to build-up holdings in Delcath’s shares. The LTIP is
compensation in the form of stock-based incentives and is designed to better align your interests with those of the Company and its stockholders. The Company believes that development, commercialization, growth and future profitability will help
contribute to increased shareholder value and the LTIP provides you with an opportunity to receive Company stock on an annual basis. As a participant in the LTIP, you play an important role in helping to achieve Delcath’s goals and its future
success. 
 The LTIP is designed to meet the following objectives: 

 

	•	 	 Focus Delcath’s leaders on the long-term performance of the Company 

 

	•	 	 Strengthen the link between pay and overall performance 

 

	•	 	 Offer competitive, market-based long-term incentive award opportunities 

 

	•	 	 Align employee interests with that of shareholders 

 This LTIP summary provides you with detailed information, including: 
  

	•	 	 Who is eligible to participate 

  

	•	 	 Delivery of awards, including the type of instrument used, mix of instruments, details with regard to each type of instrument

  

	•	 	 Award documentation 

  

	•	 	 Award determination, including a sample calculation 

  

	•	 	 Taxes, including an overview of when each type of instrument is taxed. 

  
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 Long-Term Incentive Plan Summary 

 

 Overview 
 As a participant in the LTIP, you are eligible to receive an annual stock-based incentive award. 

As an overview, the LTIP includes the following features: 
  

	•	 	 Participants are eligible to receive stock awards in the form of Stock Options and Restricted Stock (collectively “Awards”).

  

	•	 	 These Awards will be provided annually during the first quarter of each fiscal year. 

 

	•	 	 Awards will be determined based on your position and its ability to positively influence the Company’s long-term success, your overall level of
compensation in relation to the market for your position, and your individual contributions and performance. 

  

	•	 	 The actual number of shares granted to each participant will be based on the Company’s ability to grant these shares, including, but not limited
to, shares remaining available for future grant and the Company’s overall financial condition. 

 Eligibility

 All exempt Delcath employees are eligible to participate in the LTIP. Actual Award determinations will be made and approved by the
Compensation Committee of the Board (“Committee”). However, this is not a guarantee that everyone will receive an Award annually. 

Delivery of Awards 
 Each participant
will be granted Awards in the form of stock options and restricted stock. The number of shares to be granted pursuant to an Award will be determined by the Committee (See below, Award Determination) 

 

	•	 	 Stock Options: 

  

	 	•	 	 What are Stock Options? A stock option gives the recipient a contractual right to purchase shares of Delcath stock over a specified term at a fixed
price. Traditional stock options are granted with an exercise price equal to the fair market value on the actual day of grant. 

  

	 	•	 	 Vesting: Options will have a three-year graded vesting (i.e., one-third of the options will become exercisable on each of the three anniversary dates
from the date of grant.) 

  
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 Long-Term Incentive Plan Summary 

 

	 	•	 	 For example – if an award is granted on February 1, 2011, one-third of the award will vest on each of the following dates –
February 1, 2012, February 1, 2013 and February 1, 2014. 

  

	 	•	 	 Term: Under the LTIP, stock options have a maximum term of 10 years (i.e., the options will cease to be exercisable after the tenth anniversary of the
award date.) 

  

	 	•	 	 Exercise: Stock options may be exercised at any time, once vested, and have true value when the exercise price is more than the grant price of the
award. More information on how to exercise stock options are described in greater detail in Delcath’s Amended 2009 Stock Incentive Plan and applicable Awards Agreements. 

 

	•	 	 Restricted Stock: 

  

	 	•	 	 What is restricted stock? Stock provides ownership of the company; when certain restrictions are added to the stock it is called a “restricted
stock” or “restricted share”. One of the most common restrictions required is time, meaning a certain length of time must pass before the stock is owned without restrictions and can be sold. This is called the vesting period.

  

	 	•	 	 Vesting: Under the LTIP, restricted stock will have a three-year graded vesting (i.e., one-third of the restricted stock will become free of
restrictions on each of the three anniversary dates from the date of grant), similar to stock options. Once vested, a share of Delcath stock will be owned outright and an actual stock certificate will be provided. Until vest, actual stock
certificates will carry restrictive legends and will be held by the Company. 

  

	 	•	 	 Dividend Payments: The Company may provide for the payment of dividends or other cash distributions with respect to unvested restricted shares, if and
when the Company declares the payment of a dividend. 

  

	 	•	 	 Voting Rights: The Company will provide voting rights on unvested restricted stock. 

Award Determination 
 Awards will be
determined based on your position and its ability to positively influence the Company’s long-term success, your overall level of compensation in relation to the market for your position, and your individual contributions and performance.
However, the actual number of shares granted to each participant will be based on the Company’s ability to grant these shares, including, but not limited to, shares remaining available for future grant and the Company’s overall financial
condition. 

  
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 Long-Term Incentive Plan Summary 

 

 Once the Committee has determined the value of an Award, each Award will be comprised of a mix of 75%
stock options and 25% restricted stock. 
 The value and number of shares (Stock Option and Restricted Stock) to be granted will be determined
and approved by the Committee. Set forth below is a hypothetical example for illustrative purposes only. 
  

	•	 	 Calculation Example – 75% Stock Options and 25% Restricted Stock 

 

	 	•	 	 Value to be Delivered: $50,000 

  

	 	•	 	 Stock Price as of Date of Grant: $10.00 

  

	 	•	 	 Black-Scholes Value (%): 50% 

  

	 	•	 	 Black-Scholes Value ($) of Options: $10.00 × 50% = $5.00 

 

	 	•	 	 Stock Options: 

  

	 	•	 	 Value: $50,000 × 75% = $37,500 

  

	 	•	 	 Number: $37,500 divided by $5.00 = 7,500 options at grant 

 

	 	•	 	 Restricted Shares: 

  

	 	•	 	 Value: $50,000 × 25% = $12,500 

  

	 	•	 	 Number: $12,500 divided by $10.00 = 1,250 restricted shares at grant 

 Award Documentation 
 All Awards granted are governed by the specific terms and conditions
as specified in Delcath’s Amended 2009 Stock Incentive Plan and by Stock Option and Restricted Stock Award Agreements (“Award Agreements”). Award Agreements will also serve as the document that will communicate actual awards each year
and will include other terms and conditions specific to that year’s award. In order to receive an award, participants must agree to and sign an Award Agreement each year. 
 If there are conflicting provisions found between this LTIP Summary, Delcath’s Amended 2009 Stock Incentive Plan and Award Agreements, Delcath’s Amended 2009 Stock Incentive Plan document shall
control. 

  
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 Long-Term Incentive Plan Summary 

 

 Taxes 
 The tax consequences of Awards granted under the LTIP can be complex and are subject to change. All LTIP Awards have taxable implications to the participant. A brief overview regarding the tax
implications of Awards under the LTIP are provided in this section but should not be considered tax advice. The following general overview does not purport to describe all possible tax consequences including the impact of federal, state and local
income tax rules, as well as federal and state estate, gift and inheritance tax rules. In addition, the facts and circumstances of each participant may vary the tax implications. Participants who receive Awards under the LTIP should always consult
their own tax advisors regarding the tax consequences of any Awards. 
  

	•	 	 Generally, the grant of a non-qualified stock option under the LTIP does not impose income taxes to the recipient at grant. Non-qualified stock options
are taxable upon exercise and not at the time the stock option vests. Typically, additional taxes are also due if a participant sells the shares after exercise of the stock option. 

 

	•	 	 Generally, restricted shares are not taxable at the time of grant until the vesting restriction lapses. At the time the vesting restriction lapses, a
tax liability would generally be incurred. The recipient of the stock will then be required to settle the tax obligations in order to receive the actual shares of stock. 

 Details regarding ways to pay taxes associated with LTIP Awards can be found in Delcath’s Amended 2009 Stock Incentive Plan and applicable Award Agreements. Participants that have questions/concerns
regarding the potential taxes associated with any LTIP Awards should seek professional tax advice. 
 Administration of the Plan

 The LTIP shall be administered by the Committee, which shall have full power and discretionary authority to interpret the LTIP, to
construe any doubtful or disputed terms, to amend or modify the LTIP as it deems appropriate, to determine the amount of benefits payable to an employee under the LTIP, to prescribe, amend and rescind any rules, forms and procedures as it deems
necessary or appropriate for the proper administration of the LTIP, to make any other determinations, including factual determinations, and to take any other such actions as it deems necessary or advisable in carrying out its duties under the LTIP.

 Miscellaneous 
 This
Long-Term Incentive Plan Summary describes the provisions of Delcath’s Long Term Incentive Plan. All Awards will be granted under and subject to the Company’s Amended 2009 Stock Incentive Plan and its applicable Award

  
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 Long-Term Incentive Plan Summary 

 

 
Agreements. Delcath reserves the right to amend, suspend or terminate the LTIP at any time, for any reason or no reason. Participation in this LTIP is not a guarantee of employment and employment
with Delcath is not a guarantee of continued participation in this LTIP. 
 Participation in the LTIP is not a guarantee that a stock award will
be granted or have any value. Actual Awards, if any, will be determined based on Delcath’s ability to grant shares, the Company’s overall financial condition, and at the discretion of the Committee. 

Frequently Asked Questions 
 Who may
participate in the plan? All exempt Delcath employees are eligible to participate in the LTIP. 
 Does Delcath have to give me an Award?
No. The Committee may grant Awards at its discretion. Nothing in the LTIP gives you or any service provider the right to participate in the LTIP or receive Awards. 
 When are new hires eligible to participate in the LTIP? You must be employed by the Company on the date Awards are granted under the LTIP. New employees who start work at Delcath after the date of
grant of Awards under the LTIP for a fiscal year will generally not be eligible to participate in the LTIP for the year in which they started work at the Company, but will be eligible to participate in the LTIP in the following year. The Committee
may, in its sole discretion, determine who shall be eligible to participate in the LTIP and may establish such criteria as it deems fit for each fiscal year. 
 When and how frequently are Awards Granted? Awards are generally granted once per year during the first quarter of each fiscal year. 
 When is the amount of the Award determined? Each year the Committee will meet to establish the Awards, if any, to be granted for the upcoming fiscal. 

When do I receive notice of the Award for a fiscal year? During the first quarter of each fiscal year, you will be provided with a notice and an
Award Agreement detailing the Awards, if any, granted to you under the LTIP. 
 Will Awards be granted every year? Yes. Generally,
the Committee has determined that granting Awards on an annual basis is consistent with its desire to balance short- and long-term incentive compensation and align the interest of employees with shareholders. However, there may be instances where
the Committee determines that annual Awards under the LTIP are not appropriate and the Committee reserves the right to modify, amend or cancel the LTIP at any time. 

  
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 Long-Term Incentive Plan Summary 

 

 What happens to my Award if I leave the Company? The survival or termination of each outstanding
Award depends on the circumstances under which an employee leaves Delcath. The specific terms and conditions related to the survival or termination of an Award will be set forth in each Award Agreement and the Amended 2009 Stock Incentive Plan.

 Who do I call if I have questions about the AIP? If you have questions after reading this LTIP Summary, you may contact your manager
or the Human Resources Department. 

  
 Page 8

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