CAMBRIDGE, Mass.--(BUSINESS WIRE)--Eleven Biotherapeutics, Inc. (Nasdaq: EBIO), today reported that in connection with the appointment of each of Stephen Hurly as President and Chief Executive Officer, Arthur P. DeCillis, M.D., as Chief Medical Officer, Glen MacDonald, Ph.D., as Chief Scientific Officer and Gregory P. Adams, Ph.D., as Chief Development Officer, the Company entered into employment agreements with each of Mr. Hurly, Dr. DeCillis, Dr. MacDonald and Dr. Adams which provided for the grant of an inducement equity award outside the Company's 2014 Stock Incentive Plan in accordance with NASDAQ Listing Rule 5635(c)(4).
The Company granted each of Mr. Hurley, Dr. DeCillis, Dr. MacDonald and Dr. Adams a stock option to purchase 350,000, 100,000, 100,000 and 100,000 shares of the Company's common stock, respectively, each with an effective grant date of September 20, 2016 and an exercise price of $3.37 per share (the closing price per share of the Company’s common stock on September 20, 2016) as an inducement to each recipient in connection with his employment. The inducement equity awards were approved and recommended by Eleven’s Compensation Committee, approved by the Board of Directors and were made as an inducement material to each recipient’s acceptance of employment with the Company in accordance with NASDAQ Listing Rule 5635(c)(4).
Each of the inducement grants for Mr. Hurley, Dr. DeCillis, Dr. MacDonald and Dr. Adams expires on the day preceding the tenth anniversary of the grant date and vests over four years, with 25% of the original number of shares subject to the option vesting on the one year anniversary of the date of grant of the option and an additional 6.25% of the shares subject to the option vesting at the end of each successive three-month period following the one-year anniversary of the date of grant of the option, subject to the recipient’s continued service with the Company through the applicable vesting dates. The shares underlying each option will vest in the event of the termination of the recipient’s employment without cause, or by the recipient for good reason, during the twelve months, or eighteen months in the case of Mr. Hurly, following a change in control.
About Eleven Biotherapeutics
Eleven Biotherapeutics, Inc. is a late clinical-stage company advancing a broad pipeline of novel anti-cancer agents based on the Company's targeted protein therapeutics (TPTs) platform. The Company's TPTs genetically combine antibody-based fragments with protein immunotoxin payloads to create a single protein molecule through the Company's proprietary one-step manufacturing process. The Company believes its TPTs can potentially offer significant advantages in treating cancer versus existing antibody drug conjugate technologies. The Company's approach to drug design creates TPTs that it believes facilitate effective tumor targeting with cancer cell-killing properties unique to protein payloads versus small molecules. The ability of TPTs cancer cell-killing properties to promote an anti-tumor immune response suggest that TPTs will potentially combine well with immune oncology drugs. TPTs fusion protein construction provides enhanced linker stability and an efficient and cost effective manufacturing process. For more information please refer to the Company's website www.elevenbio.com.
