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CONTINGENCY AND COMMITMENTS
9 Months Ended
Sep. 30, 2011
CONTINGENCY AND COMMITMENTS
NOTE 11: CONTINGENCY AND COMMITMENTS
 
Tax Filings
 
The Company has not filed income tax returns for several years in certain operating jurisdictions, and may be subject to possible compliance penalties and interest. Management is currently not able to make a reliably measurable provision for possible liability for penalties and interest, if any, at this time, and the Company may be liable for such amounts upon assessment. Penalties and interest, if assessed in the future, will be recorded in the period such amounts are determinable.
 
Combined Research and Operating Obligations

On August 15, 2011, the Company entered into a research agreement with Mayo Clinic and Dr. Keith Knutson as the principal investigator. On June 13, 2011, an investigative new drug application (“IND”) for a Phase I clinical trial on a set of Her2/neu breast cancer antigens was filed by Dr. Keith Knutson. This filing is for a prospective safety study that will examine the safety and immunological responses of a set of Her2/neu antigens in breast cancer patients that have completed adjuvant chemotherapy and/or radiation therapy. TapImmune has the exclusive option to license this technology after Phase I studies have been completed. The Company has agreed to sponsor the clinical trial and has committed to spending up to $250,000 upon execution of the research agreement, $250,000 forty five days after the execution of the research agreement and subsequent quarterly installments of $85,250 for a total commitment of $841,000.
 
Management Services Agreement
 
During the nine months ended September 30, 2011, the Company approved an employment agreement with the Chairman and Chief Executive Officer of the Company with an initial term of 2 years, which may be automatically extended for successive one-year terms. This employment agreement provides for annual compensation of $180,000 and the grant of an option to acquire 2,000,000 shares of the Company’s common stock, 50% of which vested on March 16, 2011, while the remainder will vest monthly over a period of two years (41,667 per month). The option price is $0.19 and shall be exercisable for at least five years.
 
The Company has estimated its minimum annual obligations under the above agreements through December 31, 2012 as follows:
2011
   $ 619,350  
2012
     521,000  
    $ 1,140,350