Arena Pharmaceuticals 10-K 2011
Arena Pharmaceuticals, Inc.
Non-employee Director Compensation
New director grants are made on the 15th day of the month following the month of the directors appointment or election to our Board of Directors and the annual grants are made to ongoing directors three trading days after our announcement of our prior years financial results. For directors that did not serve for the full fiscal year preceding an annual grant, the grant is prorated based on the number of months such director served as a director in the prior year, if any.
Except in the case of a directors death or disability, unvested stock options terminate when the director ceases to be a director. Unless earlier terminated, vested stock options terminate three years after the director ceases to be a director (or, if applicable, an employee) for any reason other than the directors death or disability. In the event of a directors death or disability, the directors stock options become fully vested and exercisable and may be exercised within the earlier of three years after the date of the directors death or disability, as applicable, or the end of the 10-year term of the stock options.
In addition, our Board of Directors and the Compensation Committee may authorize additional fees for significant work in informal meetings or for other service to us in the recipients capacity as a director or committee member. Each non-employee director is also entitled to reimbursement for all of such directors reasonable out-of-pocket expenses incurred in connection with performing Board business.