EX-10.6



 Exhibit 10.6 

OREXIGEN THERAPEUTICS, INC. 

AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT 

FEBRUARY 2, 2016 

This Amendment No. 1 is intended to modify the EMPLOYMENT AGREEMENT (the
“Agreement”) dated December 1, 2015 by and between OREXIGEN THERAPEUTICS, INC. (“Orexigen” or the “Company”) with its principal place of
business located at 3344 N. Torrey Pines Ct., Suite 200, La Jolla, CA 92037 and THOMAS LYNCH (“Executive”). All capitalized terms used herein and not otherwise defined shall have
the meanings assigned to such terms in the Agreement. 
 The parties hereto, intending to be legally bound, agree to amend
the Agreement as follows (the “Amendment”): 
  

	1.	 Article IV, Section 4.1 of the Agreement shall be amended and restated in its entirety as follows:



 Term Limitation for Severance and Change in Control
Benefits.   The term for the Severance Benefits and Change in Control Benefits provided for in this Article IV herein shall continue through March 31, 2019 (the “Expiration Date”). If this Article IV is not
amended or renewed by the Compensation Committee of the Company’s Board prior to the Expiration Date, this Article IV (including Executive’s right to receive the Severance Benefits and Change in Control Benefits contained herein), shall
terminate automatically on such Expiration Date; provided, however, that if this Article IV terminates pursuant to this Section 4.1, the remainder of this Agreement will remain in full force and effect. 

 

	2.	 Article IV, Section 4.2(b) of the Agreement shall be amended and restated in its entirety as follows:



 (b)        Health Insurance. 

(i)        COBRA Premiums.  Provided that Executive
elects continued coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (together with any state or local laws of similar effect, “COBRA”) within the time period provided for under COBRA, the Company
will pay the premiums necessary to continue Executive’s group health insurance coverage in effect as of the Termination Date (including coverage for Executive’s eligible dependents) (the “COBRA Premiums”) for a maximum
period of twelve (12) months following the Termination Date (the “COBRA Premium Period”); provided, however, that no premium payments will be made by the Company pursuant to this paragraph following the effective date of
Executive’s coverage by a health insurance plan of a subsequent employer or such other date on which Executive (and Executive’s dependents, as applicable) ceases to be eligible for COBRA coverage (including cessation of non-core coverage,
such as dental and vision coverage). Executive agrees that Executive shall notify the Company in writing as soon as practical, but no later than 15 days after Executive receives coverage under a health insurance plan of a subsequent employer. 







 (ii)        Special
Cash Payments in Lieu of COBRA Premiums. Notwithstanding the foregoing, if the Company determines, in its sole discretion, that it cannot pay the COBRA Premiums without potentially incurring financial costs or penalties under applicable
law (including, without limitation, Section 2716 of the Public Health Service Act), regardless of whether Executive or Executive’s eligible dependents elect or are eligible for COBRA coverage, the Company instead shall pay to Executive, as soon
as administratively practicable, but in no case more than five (5) business days following, the later of (A) the effective date of the general release of claims executed by Executive and (B) the date on which the Company so determines that it may no
longer pay the COBRA Premiums without incurring such financial costs or penalties, a fully taxable lump sum cash payment equal to the applicable remaining unpaid COBRA Premiums for the COBRA Premium Period (including the amount of COBRA Premiums for
Executive’s eligible dependents), less required tax withholdings and deductions (such amount, the “Special Cash Payment”). Executive may, but is not obligated to, use such Special Cash Payment toward the cost of COBRA premiums.

  

	3.	 Article IV, Section 4.3(a) of the Agreement shall be amended and restated in its entirety as follows:



 Cash Severance.    The Company shall make a single lump
sum severance payment to Executive in an amount equal to Executive’s Base Annual Salary in effect as of the Termination Date plus an amount equal to Executive’s Annual Bonus target in effect as of the
Termination Date, less required tax withholdings and deductions (the “Change in Control Payment”). The Change in Control Payment will be paid within sixty (60) days after the Termination Date, but in no event later than
March 15 of the year following the year of termination. 
  

	4.	 Article IV, Section 4.3(b) of the Agreement shall be amended and restated in its entirety as follows:



 (b)        Health Insurance. 

(i)        CIC COBRA
Premiums.   Provided that Executive elects continued coverage under the COBRA within the time period provided for under COBRA, the Company will pay the premiums necessary to continue Executive’s group health insurance
coverage in effect as of the Termination Date (including coverage for Executive’s eligible dependents) (the “CIC COBRA Premiums”) for a maximum period of eighteen (18) months following the Termination Date (the
“CIC COBRA Premium Period”); provided, however, that no premium payments will be made by the Company pursuant to this paragraph following the effective date of Executive’s coverage by a health insurance plan of a subsequent
employer or such other date on which Executive (and Executive’s dependents, as applicable) ceases to be eligible for COBRA coverage (including cessation of non-core coverage, such as dental and vision coverage). Executive agrees that Executive
shall notify the Company in writing as soon as practical, but no later than 15 days after Executive receives coverage under a health insurance plan of a subsequent employer. 







 (ii)        Special
Cash Payments in Lieu of CIC COBRA Premiums. Notwithstanding the foregoing, if the Company determines, in its sole discretion, that it cannot pay the CIC COBRA Premiums without potentially incurring financial costs or penalties under applicable
law (including, without limitation, Section 2716 of the Public Health Service Act), regardless of whether Executive or Executive’s eligible dependents elect or are eligible for COBRA coverage, the Company instead shall pay to Executive, as soon
as administratively practicable, but in no case more than five (5) business days following, the later of (A) the effective date of the general release of claims executed by Executive and (B) the date on which the Company so determines that it may no
longer pay the CIC COBRA Premiums without incurring such financial costs or penalties, a fully taxable lump sum cash payment equal to the applicable remaining unpaid CIC COBRA Premiums for the CIC COBRA Premium Period (including the amount of CIC
COBRA Premiums for Executive’s eligible dependents), less required tax withholdings and deductions (such amount, the “Special CIC Cash Payment”). Executive may, but is not obligated to, use such Special CIC Cash Payment toward
the cost of COBRA premiums. 
  

	5.	 Article IV, Section 4.3(c) of the Agreement shall be amended and restated in its entirety as follows:



 Equity Acceleration.  After taking into account any additional acceleration of
vesting Executive may be entitled to receive under any other plan or agreement, the Company shall cause all outstanding time-based equity awards then held by Executive (including, without limitation, stock options, restricted stock awards or similar
awards, but excluding any restricted stock units that vest and/or are earned, in whole or in part, based on the attainment of performance criteria (“Performance RSUs”)) to become fully vested and, if applicable, exercisable
with respect to all the shares subject thereto effective immediately prior to the Termination Date. In all other respects, such time-based equity awards shall continue to be governed by the terms of the applicable award agreements and equity
incentive plan documents and any applicable agreements between the Company and Executive. With respect to Executive’s Performance RSUs, such Performance RSUs shall continue to be governed by the terms of the equity incentive plan documents and
Executive’s Performance RSU Award Agreements pursuant to which they were granted. 
  

	6.	 The Agreement and this Amendment represent the complete and entire understanding between the parties regarding
the subject matter hereof and supersede all prior negotiations, representations or agreements, either written or oral, regarding this subject matter. The Agreement and this Amendment cannot be modified or amended except in a writing signed by an
appropriate officer of the Company and Executive. 


  

	7.	 This Amendment and the rights and obligations of the parties hereunder shall be governed by the laws of the
State of California, without regard to the conflicts of law provisions thereof. 


  

	8.	 This Amendment may be executed in multiple counterparts, each of which shall be deemed an original, but both
of which together shall constitute one and the same instrument. 










	9.	 Except for the matters set forth in this Amendment, all other terms of the Agreement shall remain unchanged
and in full force and effect. 


 [Signature Page to Follow] 







 IN WITNESS
WHEREOF, the parties hereto have duly executed this Amendment as of the date set forth above. 
  

					
	OREXIGEN THERAPEUTICS, INC.	 	
			
	By:	 	/s/ Michael A. Narachi	 	
		 	  
	 	
	Name: Michael A. Narachi	 	
	Title: President and Chief Executive Officer	 	


  
  

	
	Accepted and agreed:
	
	/s/ Thomas Lynch
	  

	Thomas Lynch