(e) On July 16, 2012, Delcath Systems, Inc. ("Delcath" or "Company") and Krishna Kandarpa, MD, Ph.D. entered into a new employment agreement (the "Employment Agreement"). Dr. Kandarpa's previous employment agreement with Delcath terminated on October 10, 2011. Pursuant to the Employment Agreement, Dr. Kandarpa will continue to serve as Delcath's Executive Vice President, Research and Development and Chief Medical Officer for a term ending July 16, 2013. Under the Employment Agreement, Dr. Kandarpa will be (i) paid a base salary of $398,224 per annum, subject to annual review, (ii) eligible to receive an annual cash incentive bonus pursuant to Delcath's Annual Incentive Plan, and
(iii) eligible to receive a grant or grants of equity awards pursuant to Delcath's Long Term Incentive Plan. The Employment Agreement provides for severance benefits for a period of 12 months in the event of termination without "Cause" (and other than due to Dr. Kandarpa's death or "Disability") or if Dr. Kandarpa leaves for "Good Reason", subject to Dr. Kandarpa signing a general release in favor of the Company. Dr. Kandarpa has agreed: to preserve the confidentiality of Delcath's confidential information and not to disparage Delcath or its affiliates; not to compete with Delcath during the "Severance Period" of 12 months after termination; and to non-solicitation and non-disruption restrictions for a period of 24 months after termination.

The foregoing description of the Employment Agreement is qualified in its entirety by reference to the Employment Agreement, which is filed as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated by reference herein.

(d) Exhibits

Exhibit Number                                 Description

10.1               Employment Agreement between Delcath Systems, Inc. and Krishna
                   Kandarpa, MD, Ph.D., dated July 16, 2012