Orexigen® Therapeutics, Inc. (Nasdaq: OREX), a biopharmaceutical company focused on the treatment of obesity, today announced that on November 18, 2009 the Compensation Committee of the Company's Board of Directors granted an inducement stock option to purchase 200,000 shares of common stock to Preston Klassen, M.D., its newly appointed Head of the Global Contrave Program.
The stock option is intended to be an incentive stock option to the extent permitted by law and has an exercise price per share equal to $7.52, the fair market value on the grant date. The stock option vests over the course of four years, with 25% vesting on the one-year anniversary of the grant date and 1/48 of the shares vesting monthly thereafter so that all of the shares subject to the stock option shall be vested on the fourth anniversary of the grant date, subject to Dr. Klassen's continued service relationship with the Company on each such date. This stock option has a ten year term and is subject to the terms and conditions of the Company's 2007 Equity Incentive Award Plan and the stock option agreement pursuant to which the option is granted.
The stock option was granted as an inducement material to Dr. Klassen's entering into employment with Orexigen Therapeutics in accordance with NASDAQ listing Rule 5635(c)(4).
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