SAN DIEGO, May 26, 2016 /PRNewswire/ -- Orexigen Therapeutics (NASDAQ: OREX) announced today that the Compensation Committee of the Company's Board of Directors has approved the grant of inducement stock options to purchase a total of 674,000 shares of common stock to 21 new employees. The stock options have an exercise price per share equal to $0.43, the fair market value on the grant date, May 24, 2016. Each 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 the new employee's continued service relationship with the Company on each such date. Each 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 options were granted as an inducement material to the new employees' entering into employment with Orexigen Therapeutics in accordance with NASDAQ Listing Rule 5635(c)(4).