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Court Approves Vermillion Incentive Plan

By a GenomeWeb staff reporter

NEW YORK (GenomeWeb News) – Vermillion said today that the US Bankruptcy Court for the District of Delaware has approved a cash and stock-based management incentive plan for the firm's three directors.

The molecular diagnostics test developer, which emerged from bankruptcy protection in January of this year, will pay directors Gail Page, James Burns, and John Hamilton an aggregate of $5 million in cash and 302,541 shares of restricted stock, subject to a time-based vesting schedule.

Vermillion is preparing to launch its OVA1 test, which uses five biomarkers and proprietary software to develop a score that can be used to determine the likelihood of malignancy in women who face surgery to remove ovarian masses.

The firm filed for Chapter 11 protection on March 31, 2009, but it remained in business with a lean crew of three directors and four consultants while it sought US Food and Drug Administration approval for the OVA1 test.

That approval came in September, following the court's approval of Vermillion's restructuring plan and the closure of a private placement of common stock raising $43 million. That sale involved roughly 2.3 million shares valued at $18.49 per share.

The company's shares were priced at $19.80 in early trading this morning on the OTC Bulletin Board.

William Wallen, chairman of the Special Director Compensation Committee of the Board, said in a statement that the plan "recognizes the directors efforts in successfully restructuring the company, while incentivizes them to continue their efforts on behalf of the company and its shareholders."

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