Accuray Incorporated Reports Inducement Awards Under NASDAQ Listing Rules

Rhea-AI Summary

Accuray Incorporated (NASDAQ: ARAY) announced inducement awards for new Senior Vice President, Quality & Regulatory Affairs, Jim Dennison. Effective November 30, Dennison will receive 56,053 restricted stock units and a stock option for 105,485 shares at an exercise price of $4.46. The awards are not part of the current equity plan but follow guidelines similar to those in the 2016 Equity Incentive Plan. Restricted stock units will vest annually, while the stock option will vest 25% after one year and monthly thereafter, contingent on Dennison's ongoing service.

Positive

• Inducement awards intended to attract a skilled executive.
• Stock options provided at a competitive exercise price of $4.46.

Negative

• None.

SUNNYVALE, Calif., Dec. 3, 2020 /PRNewswire/ -- Accuray Incorporated (NASDAQ: ARAY) today reported, as required by NASDAQ Stock Market Rules, equity inducement awards to Jim Dennison, the company's new Senior Vice President, Quality & Regulatory Affairs.  As a material inducement to Mr. Dennison joining the company, and in accordance with NASDAQ Listing Rule 5635(c)(4), the Board approved granting Mr. Dennison (i) an award of 56,053 restricted stock units covering shares of the company's common stock, and (ii) a stock option to purchase 105,485 shares of the company's common stock, in each case effective as of November 30 (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. Dennison's continued service through each applicable vesting date.

The stock option award has a ten-year term and a per share exercise price of $4.46, 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. Dennison's continued service through each applicable vesting date.

About Accuray
Accuray is committed to expanding the powerful potential of radiation therapy to improve as many lives as possible. We invent unique, market-changing solutions to deliver radiation treatments for even the most complex cases—while making commonly treatable cases even easier—to meet the full spectrum of patient needs. We are dedicated to continuous innovation in radiation therapy for oncology, neuro-radiosurgery, and beyond, as we partner with clinicians and administrators, empowering them to help patients get back to their lives, faster. Accuray is headquartered in Sunnyvale, California, with facilities worldwide. To learn more, visit www.accuray.com or follow us on Facebook, LinkedIn, Twitter, and YouTube.

Media Contact
Beth Kaplan
Public Relations Director, Accuray
+1 (408) 789-4426
bkaplan@accuray.com  

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SOURCE Accuray Incorporated

FAQ

What were the inducement awards granted to Jim Dennison by Accuray?

Jim Dennison received 56,053 restricted stock units and a stock option for 105,485 shares at an exercise price of $4.46.

When do the stock options for Jim Dennison vest?

The stock options will vest 25% on the first anniversary of the grant date and 1/48th monthly thereafter.

What is the purpose of the inducement awards provided by Accuray?

The inducement awards serve as a material incentive for Jim Dennison to join the company.

What is the significance of the NASDAQ Listing Rule regarding Accuray's inducement awards?

The inducement awards comply with NASDAQ Listing Rule 5635(c)(4), allowing companies to grant awards outside their equity plan.