UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): December 14, 2007

Celsion Corporation

(Exact Name of Registrant as Specified in Charter)

Registrant’s telephone number, including area code: (410) 290-5390

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions (see General Instruction A.2. below):

o                                    Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o                                    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o                                    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o                                    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.135-4(c))

Celsion Corporation (the “Registrant”) announced on December 14, 2007 the resignation of William Hahne, M.D., from his position as Vice President Clinical and Medical Affairs, effective December 31, 2007 (the “Effective Date”).

On December 14, 2007 the Registrant and Dr. Hahne entered into a Separation Agreement and General Release (the “Separation Agreement”) pursuant to which Dr. Hahne’s employment with the Registrant will voluntarily terminate on the Effective Date. As severance, Dr. Hahne will continue to receive pay for a period of three months commencing January 1, 2008 and ending March 31, 2008 (the “Severance Period”) in accordance with the Registrant’s regular payroll practices and at a rate equal to Dr. Hahne’s base rate of pay as of November 1, 2007. In addition, the Registrant will pay the premiums associated with Dr. Hahne’s continued participation in Celsion’s healthcare plan under COBRA during the Severance Period and $2,015, an amount equal to one month’s rent for Dr. Hahne’s apartment in Maryland. Under the Separation Agreement, any stock options previously granted to Dr. Hahne vested immediately upon the execution of the Separation Agreement and remain fully exercisable in accordance with their respective terms. In return, under the Separation Agreement, Dr. Hahne releases the Registrant, and its directors, officers and shareholders, among other related parties, from any claims that he may have against them.

Copies of the Separation Agreement and the press release announcing Dr. Hahne’s resignation are filed as Exhibits 10.1 and 99.1, respectively, to this Current Report on Form 8-K.

(d)  Exhibits

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SIGNATURES

                Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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Exhibit Index

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Exhibit 10.1

SEPARATION AGREEMENT AND GENERAL RELEASE

This Separation Agreement and General Release (hereinafter “Agreement”) is hereby entered into effective this 14 th day of  December, 2007, between Celsion Corporation (hereinafter “Celsion”) and William Hahne, MD (hereinafter “Dr. Hahne”), who are collectively referred to herein as the “Parties.”

WHEREAS the Parties desire and agree to fully and finally resolve any and all existing or potential issues, claims, causes of action, grievances and disputes that do, or could relate thereto or arise out of their employment relationship or severance thereof, without any admission of liability or finding or admission that any of Dr. Hahne’s or Celsion’s rights, under any statute, claim or otherwise, were in any way violated.  In consideration of the mutual promises contained herein, and other good and valuable consideration as hereinafter recited, the receipt and adequacy of which is hereby acknowledged, the Parties, intending to be legally bound, agree as follows:

1.     The Parties agree that Dr. Hahne’s employment will voluntarily terminate effective December 31, 2007.  The Parties further agree that they will cooperate regarding all announcements of the Mr. Hahne’s decision to depart from Celsion and that neither party will issue any release without consulting with and obtaining the consent of the other Party regarding the statements to be contained therein. The Parties agree that they will not unreasonably withhold consent to such announcements.

2.     Beginning January 1, 2008, Celsion will commence paying Dr. Hahne severance for a period of 3 months (January 1, 2008 to March 31, 2008). Such payments will be made in accordance with Celsion’s regular payroll practices and the amount will be at a rate equal to Dr. Hahne’s base rate of pay as of November 1, 2007.  Celsion further agrees that it will pay the premiums associated with Dr. Hahne’s continued participation in Celsion’s healthcare plan under COBRA for a 6 month period beginning January 1, 2008, unless Mr. Hahne earlier becomes eligible to participate in another healthcare plan.

3.     Celsion agrees to pay Mr. Hahne the amount equal to one (1) month’s rent for Dr. Hahne’s apartment in Columbia, Maryland.

4.     As further consideration for this Agreement, Celsion agrees that Dr. Hahne’s stock options shall vest immediately and remain fully exercisable in accordance with their respective terms.

5.     Dr. Hahne agrees and acknowledges that Celsion owes him no wages, benefits, compensation, property, stock or money of any kind or nature relating to his employment with Celsion, except as expressly provided herein.

6.     Dr. Hahne agrees that upon the separation of his employment with Celsion, he will surrender to Celsion every item and every document that is Celsion’s property (including but not limited to keys, records, vehicles, computers, peripherals, computer files and disks, notes, memoranda, software, data, inventory and equipment) or contains Company information, in whatever form.  All of these materials are the sole and absolute property of Celsion.

7.     Dr. Hahne hereby agrees that he will, and hereby does, forever and irrevocably release and discharge Celsion, its officers, directors, employees, agents, affiliates, parents, subsidiaries, divisions, predecessors, purchasers, assigns, representatives, successors, successors in interest, and customers from any and all grievances, claims, actions or causes of action, obligations, contracts, promises, damages, judgments, expenses, and liabilities, known or unknown, whatsoever which he now has, has had, or may have, whether the same be at law, in equity, or mixed, in any way arising from or relating to any act, occurrence, or transaction before the date of this Agreement, including without limitation his employment with and separation of employment with Celsion.  This is a General Release.  Dr. Hahne expressly acknowledges that this General Release includes, but is not limited to, Mr. Hahne’s intent to release Celsion from any claim relating to his employment at Celsion, including, but not limited to, tort and contract claims, arbitration claims, statutory claims, claims under any state or federal wage and hour law or wage collection law, and claims of age, race, color, sex, religion, handicap, disability, national origin, ancestry, citizenship, marital status, retaliation, or any other claim of employment discrimination under the Age Discrimination in Employment Act (29 U.S.C. §§ 626 et seq., “ADEA”), Title VII of the Civil Rights Acts of 1964 and 1991 as amended (42 U.S.C. §§ 2000e et seq.), the Employee Retirement Income Security Act (29 U.S.C. §§ 1001 et seq.), the Consolidated Omnibus Budget Reconciliation Act of 1985 (29 U.S.C. §§ 1161 et seq.), the Americans With Disabilities Act (42 U.S.C. §§ 12101 et seq.), the Rehabilitation Act of 1973 (29 U.S.C. §§ 701 et seq.), the Family and Medical Leave Act (29 U.S.C. §§ 2601 et seq.), the Fair Labor Standards Act (29 U.S.C. §§ 201 et seq.), the Annotated Codes of Maryland, and any other law relating to employment.

8.     To the fullest extent allowed by law, Dr. Hahne agrees not to sue Celsion or to join in any lawsuit against Celsion or any other person or entity specified in Paragraph 7 concerning any matter which arose prior to the date of this Agreement.  Dr. Hahne further agrees and covenants not to make, file, assist or encourage others in making or filing any lawsuits, complaints, or other proceedings, including but not limited to any suits in the local or state courts, the United States federal District Courts or any other court, against Celsion, or any other person or entity specified in Paragraph 7.

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9.     Celsion hereby forever releases and irrevocably discharges Dr. Hahne from any and all claims, demands, debts, actions, causes of action, obligations, damages and liabilities which it has ever had, now has or could have with respect to him, arising from or relating in any way, directly or indirectly, to his employment with or separation from Celsion,  Celsion expressly acknowledges that this constitutes a General Release in tort, contract and under any federal, state or local law with respect to such matters.

10.   Dr. Hahne agrees that neither this Agreement nor the negotiations in pursuance thereof shall be construed or interpreted to render him a prevailing party for any reason, including but not limited to an award of attorney’s fees or costs under any statute or otherwise.

11.   Dr. Hahne represents that he has not heretofore assigned or transferred, or purported to assign or transfer, to any person or entity, any claim against Celsion or portion thereof or interest therein, and that any such claim is not assignable or transferable.

12.   The Parties further agree that this Agreement shall be binding upon and inure to the benefit of the assigns, personal representatives, heirs, executors, and administrators of Dr. Hahne and the assigns, personal representatives, heirs, executors, administrators, affiliates, successors, predecessors, subsidiaries, divisions, officers, purchasers, agents, representatives, directors and employees of Celsion, that this Agreement contains and comprises the entire agreement and understanding of the Parties, that there are no additional promises or terms among the Parties other than those contained herein, and that this Agreement shall not be modified except in writing signed by each of the Parties hereto.

13.   The Parties further agree that this Agreement and the rights and obligations hereunder shall be governed by, and construed in accordance with, the laws of the State of Maryland regardless of any principles of conflicts of laws or choice of laws of any jurisdiction.  The state courts of Maryland and, if the jurisdictional prerequisites exist at the time, the United States District Court for the District of Maryland, shall have sole and exclusive jurisdiction to hear and determine any dispute or controversy arising under or concerning this Agreement.

14.   If any terms of the above provisions of this Agreement are found null, void or inoperative, for any reason, the remaining provisions will remain in full force and effect.  The language of all parts of this Agreement shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against either of the Parties.

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15.   If Celsion seeks a restraining order, injunction or any other relief, including but not limited to damages, against Dr. Hahne as a result of his breach of any provision of this Agreement, and recovers any such relief, Dr. Hahne shall reimburse Celsion for the attorney’s fees, costs and other expenses it incurred obtaining that relief (even if other relief were denied).

16.   Dr. Hahne represents that he has read this Agreement, that he understands all of its terms, that he had a reasonable amount of time to consider his decision to sign it, that he had the opportunity to discuss the terms of this Agreement with an attorney of his choice, that in executing this Agreement he does not rely and has not relied upon any representation or statements made by any of Celsion’s agents, representatives, or attorneys with regard to the subject matter, basis, or effect of the Agreement, and that he enters into this Agreement voluntarily, of his own free will and with knowledge of its meaning and effect.

17.   Dr. Hahne understands that he has had twenty-one (21) days from the date of his receipt of this Agreement, to consider his decision to sign it with respect to claims arising under the ADEA.  Dr. Hahne expressly agrees that any changes made will not restart the 21 day period for considering whether to sign this Agreement as to such claims.  By signing this Agreement, Mr. Hahne expressly acknowledges that his decision to sign this Agreement was knowing and voluntary, not induced by fraud, misrepresentation, or improper means, and of his own free will.

18.   Dr. Hahne acknowledges that he may revoke this Agreement only as it pertains to claims under the ADEA for up to and including seven (7) days after his execution of this Agreement, and that the aspects of this Agreement regarding his release of claims under the ADEA shall not become effective until the expiration of seven (7) days from the date of his execution of this Agreement.  This provision regarding revocation shall have no effect on the validity and enforceability of any other term, condition or provision of this Agreement, which becomes effective when signed.

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19.   Celsion hereby advises Mr. Hahne to consult with an attorney prior to executing this agreement.

IN WITNESS WHEREOF, the parties have duly executed this Agreement  effective as of the day and year first above written.

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Exhibit 99.1

Celsion Announces Resignation Of William Hahne, M.D., Vice President Clinical And Medical Affairs

Columbia, MD - - December 14, 2007: CELSION CORPORATION (AMEX: CLN) today announced that William Hahne, M.D., has resigned as Vice President of Clinical and Medical Affairs to pursue other opportunities. Dr. Hahne’s resignation will take effect on December 31, 2007

“We thank Bill for his contribution over these past two years and wish him well in his future endeavors”, commented Mr. Michael H. Tardugno Celsion President and CEO.

About Celsion:

Celsion is dedicated to the development and commercialization of oncology drugs including tumor-targeting treatments using focused heat energy in combination with heat activated drug delivery systems. Celsion has research, license or commercialization agreements with leading institutions such as the National Institutes of Health, Duke University Medical Center, University of Hong Kong, North Shore Long Island Jewish Health System. Additional information about Celsion Corporation can be found on the Celsion web site at www.celsion.com.

Celsion wishes to inform readers that forward-looking statements in this release are made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Readers are cautioned that such forward-looking statements involve risks and uncertainties including, without limitation, unforeseen changes in the course of research and development activities and in clinical trials by others; possible acquisitions of other technologies, assets or businesses; possible actions by customers, suppliers, competitors, regulatory authorities; and other risks detailed from time to time in the Company’s periodic reports filed with the Securities and Exchange Commission.

Paul G. Henning

Cameron Associates

212-554-5462

phenning@cameronassoc.com