SUNNYVALE, Calif., May 4, 2018 /PRNewswire/ -- Accuray Incorporated (NASDAQ: ARAY) today reported, as required by NASDAQ Stock Market Rules, equity inducement awards to Patrick Spine, the company's new Senior Vice President, Human Resources. As a material inducement to Mr. Spine joining the company, and in accordance with NASDAQ Listing Rule 5635(c)(4), the Board of Directors of the company unanimously approved granting Mr. Spine (i) an award of 18,750 restricted stock units covering shares of the company's common stock, (ii) a stock option to purchase 46,875 shares of the company's common stock, and (iii) an award of a target number of 37,500 performance units covering shares of the company's common stock, in each case effective as of April 30, 2018 (collectively, the "Inducement Awards"). The Inducement Awards were made outside of the company's current equity plan, but are subject to terms and conditions generally consistent with those in the company's 2016 Equity Incentive Plan.
Twenty-five percent of the restricted stock units subject to the restricted stock unit award will vest on each anniversary of the restricted stock unit award's grant date, subject to Mr. Spine's continued service through each applicable vesting date.
The stock option award has a ten-year term and a per share exercise price of $5.00, representing the closing price of the company's common stock as quoted on the NASDAQ Global Select Market on the stock option award's date of grant. Twenty-five percent of the shares subject to the option will vest on the first anniversary of the option's grant date and an additional 1/48th of the aggregate number of shares subject to the option will vest each month thereafter, subject to Mr. Spine's continued service through each applicable vesting date.
The performance unit award is divided into two equal portions, each of which vests based on the total shareholder return of the company's common stock for the relevant performance period as compared to the total return of the Russell 2000 Index for the relevant performance period, subject to Mr. Spine's continued service through each applicable vesting date. The first performance period begins on November 1, 2017 and ends on October 31, 2019, and the second performance period begins on November 1, 2017 and ends on October 31, 2020. The actual number of performance units that vest will be calculated on a sliding scale based on the company's stock price performance above and below the Russell 2000 Index for the applicable performance period, all in accordance with a formula determined by the company's Board of Directors. Up to a maximum of 150% of the target number of performance units under the performance unit award may be earned.
Accuray Incorporated (Nasdaq: ARAY) is a radiation oncology company that develops, manufactures and sells precise, innovative treatment solutions that set the standard of care with the aim of helping patients live longer, better lives. The company's leading-edge technologies deliver the full range of radiation therapy and radiosurgery treatments. For more information, please visit www.accuray.com.
Public Relations Director, Accuray
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SOURCE Accuray Incorporated