Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
As previously disclosed, on February 26, 2018, VIVUS, Inc., or the Company, and Allan L. Shaw entered into a Consulting Agreement, or the Consulting Agreement, effective February 1, 2018. The Consulting Agreement
included that Mr. Shaw will be eligible to receive an additional fully vested stock option to purchase 100,000 shares of the Companys common stock at the discretion of the Board of Directors of the Company, or the Board. On June 15, 2018, the Compensation Committee of the Board authorized and approved the grant to Mr. Shaw of a fully vested stock option to purchase 100,000 shares of the Companys common stock at a price per share equal to the closing price of the Companys common stock on the date of grant ($0.84 per share). The option has a 7-year term from the date of grant and an exercise period equal to 6 months from the date Mr. Shaw ceases to be a Service Provider (as defined in the Companys 2010 Equity Incentive Plan).
Further, as previously disclosed, on January 2, 2018, the Board approved the compensation arrangements for Thomas B. King, the Companys former interim Chief Executive Officer. The compensation arrangements included that Mr. King
will be eligible to receive an additional stock option to purchase 200,000 shares of the Companys common stock at the discretion of the Board. On June 15, 2018, the Compensation Committee of the Board authorized and approved the grant to Mr. King of a fully vested stock option to purchase 200,000 shares of the Companys common stock at a price per share equal to the closing price of the Companys common stock on the date of grant ($0.84 per share). The option has a 7-year term from the date of grant and an exercise period equal to twelve months from the date Mr. King ceases to be a Service Provider (as defined in the Companys 2010 Equity Incentive Plan).
Also, on June 15, 2018,
the Compensation Committee of the Board authorized and approved a special bonus payment in the amount of $50,000 to be paid to each of John L. Slebir, the Companys Senior Vice President, Business Development and General Counsel and Secretary, and Mark K. Oki, the Companys Chief Financial Officer and Chief Accounting Officer, for their performance in the first half of 2018 in connection with the acquisition of the shares of Willow Biopharma Inc. and onboarding of the members of new management, the acquisition of the product PANCREAZE® from Janssen Pharmaceuticals, Inc., and the financing with Athyrium Capital Management, L.P., each as previously disclosed.
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