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Your Vote is Important to Us. Even if You Plan to Attend the Meeting in Person,
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PLEASE SIGN, DATE AND RETURN THE ENCLOSED PROXY PROMPTLY OR
VOTE BY TELEPHONE OR THE INTERNET. |
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Internap Corporation 2017 Proxy Statement Summary
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Proposal 1: Election of Three Director Nominees for Three-Year Terms Expiring in 2020
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The Board recommends a vote “FOR” all of the director nominees
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Proposal 2: Ratification of the Audit Committee’s Appointment of BDO, USA LLP as the
Independent Registered Public Accounting Firm for our Fiscal Year Ending December 31, 2017 |
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The Board recommends a vote “FOR” Proposal 2
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Proposal 3: Advisory Resolution Approving Compensation of our Named Executive Officers
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The Board recommends a vote “FOR” Proposal 3
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Proposal 4: Advisory Resolution Approving the Frequency of Advisory Votes on the
Compensation of our Named Executive Officers |
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The Board recommends a vote “1 Year” on Proposal 4
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Proposal 5: Approval of the Internap Corporation 2017 Stock Incentive Plan
|
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The Board recommends a vote “FOR” Proposal 5
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Proposal 6: Amendment to our Restated Certificate of Incorporation to Increase the
Number of Authorized Shares of Common Stock |
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The Board recommends a vote “FOR” Proposal 6
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Proposal 7: Potential Amendment to our Restated Certificate of Incorporation to Effect a
Reverse Stock Split and Authorize our Board of Directors to Select the Ratio of the Reverse Stock Split as Set forth in the Amendment |
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The Board recommends a vote “FOR” Proposal 7
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Audit Committee
|
| |
Compensation Committee
|
| |
Nominations and
Governance Committee |
|
| Gary M. Pfeiffer (Chair) | | | Charles B. Coe (Chair) | | | Patricia L. Higgins (Chair) | |
| Daniel C. Stanzione | | | Patricia L. Higgins | | | Charles B. Coe | |
| Debora J. Wilson | | | | | | Gary M. Pfeiffer | |
| | | | | | | Daniel C. Stanzione | |
| | | | | | | Debora J. Wilson | |
| | | | | | | Peter J. Rogers, Jr. | |
| | |
Cash
($) |
| |
Restricted Stock
Award |
| |||
Newly appointed or elected director | | | | | — | | | |
Number of
restricted shares equal to $110,000 |
|
Annual director retainer | | | | | 60,000 | | | |
Number of
restricted shares equal to $110,000 |
|
Audit Committee chairperson annual retainer | | | | | 15,000 | | | |
—
|
|
Audit Committee member annual retainer | | | | | 7,500 | | | |
—
|
|
Compensation Committee chairperson annual retainer | | | | | 10,000 | | | |
—
|
|
Compensation Committee member annual retainer | | | | | 5,000 | | | |
—
|
|
Nominations and Governance Committee chairperson annual retainer | | | | | 7,500 | | | |
—
|
|
Strategy Committee annual retainer | | | | | 7,500 | | | |
—
|
|
Chairman annual retainer | | | | | 100,000 | | | |
—
|
|
|
Name
(1)
|
| |
Fees Earned or
Paid in Cash |
| |
Stock
Awards (2)(3) |
| |
Total
|
| |||||||||
| Charles B. Coe | | | | $ | 70,000 | | | | | $ | 52,425 | | | | | $ | 122,425 | | |
| Patricia L. Higgins | | | | | 72,500 | | | | | | 52,425 | | | | | | 124,925 | | |
| Gary M. Pfeiffer | | | | | 76,875 | | | | | | 52,425 | | | | | | 129,300 | | |
| Peter J. Rogers, Jr. | | | | | 15,000 | | | | | | 117,021 | | | | | | 132,021 | | |
| Daniel C. Stanzione | | | | | 107,500 | | | | | | 52,425 | | | | | | 159,925 | | |
| Debora J. Wilson | | | | | 69,375 | | | | | | 52,425 | | | | | | 121,800 | | |
|
Name
|
| |
Stock Awards
(#) (a) |
| |
Options
(#) (b) |
|||||
| Charles B. Coe | | | | | 92,906 | | | | | | 43,560 |
| Patricia L. Higgins | | | | | 109,265 | | | | | | 43,560 |
| Gary M. Pfeiffer | | | | | 88,155 | | | | | | 38,560 |
| Peter J. Rogers, Jr. | | | | | 62,578 | | | | | | 0 |
| Daniel C. Stanzione | | | | | 104,536 | | | | | | 43,560 |
| Debora J. Wilson | | | | | 106,863 | | | | | | 16,290 |
| | |
Common Stock
Beneficially Owned |
| ||||||
Name and Address of Beneficial Owner
|
| |
Number of
Shares |
| |
Percent of
Class (1) |
| |||
GAMCO Investors, Inc. (2) | | | | | 17,629,718 | | | |
21.4%
|
|
Park West Asset Management, LLC (3) | | | | | 11,686,429 | | | |
14.2%
|
|
Avenir Corporation (4) | | | | | 7,966,877 | | | |
9.7%
|
|
O’Connor Global Multi-Strategy Alpha Master Limited (5) | | | | | 4,549,648 | | | |
5.5%
|
|
| | |
Common Stock
Beneficially Owned |
||||||||
Name of Beneficial Owner
|
| |
Number of
Shares (1) |
| |
Percent of
Class |
|||||
Peter D. Aquino | | | | | 1,785,000 | | | | | | 2.2 % |
Charles B. Coe | | | | | 149,138 | | | | | | * |
Robert M. Dennerlein | | | | | 55,894 | | | | | | * |
Patricia L. Higgins | | | | | 160,176 | | | | | | * |
Gary M. Pfeiffer | | | | | 127,499 | | | | | | * |
Peter J. Rogers, Jr. | | | | | 63,026 | | | | | | * |
Michael A. Ruffolo (2) | | | | | 539,255 | | | | | | * |
Daniel C. Stanzione | | | | | 238,608 | | | | | | * |
Debora J. Wilson | | | | | 277,684 | | | | | | * |
Kevin M. Dotts (3) | | | | | 436,844 | | | | | | * |
Peter G. Bell | | | | | 116,396 | | | | | | * |
Satish Hemachandran (3) | | | | | 92,097 | | | | | | * |
Steven A. Orchard (3) | | | | | 444,212 | | | | | | * |
All directors and executive officers as a group (13 persons) | | | | | 3,054,180 | | | | | | 3.71 % |
|
Name
|
| |
Options (#)
|
||
| Peter D. Aquino | | | | | 0 |
| Charles B. Coe | | | | | 43,560 |
| Robert M. Dennerlein | | | | | 0 |
| Patricia L. Higgins | | | | | 43,560 |
| Gary M. Pfeiffer | | | | | 38,560 |
| Peter J. Rogers, Jr. | | | | | 0 |
| Michael A. Ruffolo | | | | | 0 |
| Daniel C. Stanzione | | | | | 43,560 |
| Debora J. Wilson | | | | | 16,290 |
| Kevin M. Dotts | | | | | 278,916 |
| Peter G. Bell | | | | | 74,262 |
| Satish Hemachandran | | | | | 42,007 |
| Steven A. Orchard | | | | | 344,635 |
|
|
Name
|
| |
Age
|
| |
Position
|
|
| Peter D. Aquino | | |
56
|
| | President and Chief Executive Officer | |
| Robert M. Dennerlein | | |
57
|
| | Senior Vice President and Chief Financial Officer | |
| Richard P. Diegnan | | |
47
|
| | Senior Vice President, General Counsel and Corporate Secretary | |
| Corey J. Needles | | |
44
|
| | Senior Vice President and General Manager, INAP Colo | |
| Andrew Day | | |
51
|
| | Senior Vice President and General Manager, INAP Cloud | |
| Mark Weaver | | |
56
|
| | Vice President and Corporate Controller | |
| Richard Ramlall | | |
61
|
| | Vice President, Investor Relations | |
|
Individual
|
| |
Multiple
|
|
| Chief Executive Officer | | | 6.0x base salary | |
| Chief Financial Officer | | | 3.0x base salary | |
| All Other Senior Vice Presidents | | | 2.0x base salary | |
| Non-Employee Directors | | |
5.0x annual retainer
|
|
|
Component
|
| |
Primary Purpose
|
| |
Form of Compensation
|
|
|
Base Salary
|
| | Provides base compensation for day-to-day performance of job responsibilities and determines the target for short-term incentive compensation | | |
Cash
|
|
| | | | | | | | |
|
Short-Term (Annual) Incentive Plan
|
| | Motivates and rewards for the achievement of corporate and, as applicable, business unit financial goals | | |
Cash
|
|
| | | | | | | | |
|
Long-Term Equity Incentive Plan
|
| | Provides incentive for long-term performance, retention and motivation, thereby aligning the financial interests of our named executive officers with the interests of our stockholders | | |
Equity denominated in shares of our
common stock |
|
| Active Network, Inc. | | | Digi International Inc. | | | NIC, Inc. | |
| Bottomline Technologies, Inc. | | | j2 Global Communications, Inc. | | | Virtusa Corporation | |
| Cogent Communications Group, Inc. | | | Limelight Networks, Inc. | | | Web.com Group, Inc. | |
| Coresite Realty Corp. | | | Neustar, Inc. | | | | |
|
Name
|
| |
2016 Base
Salary Increase (%) |
| |
2016
Base Salary ($) |
| |
2017 Base
Salary Increase (%) |
| |
2017
Base Salary ($) |
||||||||
| Peter D. Aquino | | |
—
|
| | | $ | 505,000 | | | | | | — | | | | | $ | 505,000 |
| Robert Dennerlein | | |
—
|
| | | $ | 275,000 | | | | | | — | | | | | $ | 275,000 |
| Michael A. Ruffolo (1) | | |
—
|
| | | $ | 675,000 | | | | | | — | | | | | | — |
| Kevin M. Dotts (2) | | |
—
|
| | | $ | 335,457 | | | | | | — | | | | | | — |
| Peter G. Bell (3) | | |
—
|
| | | $ | 250,000 | | | | | | — | | | | | | — |
| Satish Hemachandran (2) | | |
6.38%
|
| | | $ | 250,000 | | | | | | — | | | | | | — |
| Steven A. Orchard (2) | | |
—
|
| | | $ | 283,557 | | | | | | — | | | | | | — |
|
Criteria
|
| |
At Threshold
($) |
| |
At Target
($) |
| |
At Stretch
($) |
|
| Revenue | | |
$ 337.3 million
|
| |
$ 345.9 million
|
| |
$ 354.6 million
|
|
| Adjusted EBITDA | | |
87.5 million
|
| |
92.1 million
|
| |
96.7 million
|
|
| Bookings net of churn | | |
1.7 million
|
| |
3.6 million
|
| |
5.3 million
|
|
|
Name
|
| |
Number of
Stock Options Granted in 2016 |
| |
Number of Shares
of Restricted Stock Granted in 2016 |
|||||
| Peter D. Aquino | | | | | 0 | | | | | | 1,585,000 |
| Robert M. Dennerlein | | | | | 0 | | | | | | 0 |
| Michael A. Ruffolo | | | | | 83,118 | | | | | | 247,056 |
| Kevin M. Dotts | | | | | 102,857 | | | | | | 34,605 |
| Peter G. Bell | | | | | 66,359 | | | | | | 22,326 |
| Satish Hemachandran | | | | | 66,359 | | | | | | 22,326 |
| Steven A. Orchard | | | | | 66,359 | | | | | | 22,326 |
|
Name
|
| |
Number of
Stock Options Forfeited in 2016 |
| |
Number of Shares
of Restricted Stock Forfeited in 2016 |
|||||
| Michael A. Ruffolo | | | | | 83,118 | | | | | | 247,056 |
| Kevin M. Dotts | | | | | 77,142 | | | | | | 25,953 |
| Satish Hemachandran | | | | | 49,769 | | | | | | 16,744 |
| Steven A. Orchard | | | | | 49,769 | | | | | | 16,745 |
|
Name
|
| |
Value of
Restricted Stock ($) |
| |
Shares of
Restricted Stock (#) |
| |
Cash
($) |
| |||||||||
| Kevin M. Dotts | | | | $ | 109,023 | | | | | | 38,661 | | | | | $ | 109,023 | | |
| Peter G. Bell | | | | $ | 62,500 | | | | | | 22,163 | | | | | $ | 62,500 | | |
| Satish Hemachandran | | | | $ | 62,500 | | | | | | 22,163 | | | | | $ | 62,500 | | |
| Steven A. Orchard | | | | $ | 70,889 | | | | | | 25,138 | | | | | $ | 70,889 | | |
|
Individual
|
| |
Multiple
|
|
| Chief Executive Officer | | |
6.0x base salary
|
|
| Chief Financial Officer | | |
3.0x base salary
|
|
| All Other Senior Vice Presidents | | |
2.0x base salary
|
|
| Non-Employee Directors | | |
5.0x annual retainer
|
|
|
Benefit
|
| |
Termination
For Cause ($) |
| |
Termination
Without Cause ($) |
| |
Termination
by reason of Retirement ($) |
| |
Termination
by reason of Death, Disability ($) |
| |
Termination
following a Change in Control ($) |
|||||||||||
| Severance payment | | |
—
|
| | | | 250,000 | | | | | | — | | | | | | — | | | | | | 250,000 |
| Bonus | | |
—
|
| | | | 62,500 | | | | | | — | | | | | | — | | | | | | 312.500 |
| Payment for Outstanding Equity Awards | | |
—
|
| | | | 94,100 | | | | | | — | | | | | | — | | | | | | 94,100 |
| Total | | |
—
|
| | | | 406,600 | | | | | | — | | | | | | — | | | | | | 406,600 |
|
|
Benefit
|
| |
Termination
For Cause ($) |
| |
Termination
Without Cause ($) |
| |
Termination
by reason of Retirement ($) |
| |
Termination
by reason of Death, Disability ($) |
| |
Termination
following a Change in Control ($) |
||||||||||||
| Severance payment | | |
—
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | |
| Bonus | | |
—
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | |
| Continued benefits | | |
—
|
| | | | — | | | | | | — | | | | | | — | | | | | | | |
| Outplacement | | |
—
|
| | | | — | | | | | | — | | | | | | — | | | | ||||
| Life Insurance Payment | | |
—
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | |
| Payment for Outstanding Equity Awards | | |
—
|
| | | | 2,440,900 | | | | | | — | | | | | | — | | | | | | 2,440,900 | |
| Total | | |
—
|
| | | | 2,440,900 | | | | | | — | | | | | | — | | | | | | 2,440,900 | |
|
|
Name and Principal
Position |
| |
Year
|
| |
Salary
|
| |
Bonus
(1)
|
| |
Stock
Awards ( 2 ) |
| |
Option
Awards ( 3 ) |
| |
Non-Equity
Incentive Plan Compensation ( 4 ) |
| |
All Other
Compensation ( 5 ) |
| |
Total
|
| ||||||||||||||||||||||||
|
Peter D. Aquino
(
6
)
President and Chief Executive Officer |
| | | | 2016 | | | | | $ | 135,961 | | | | | $ | 142,508 | | | | | $ | 1,201,800 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 1,480,269 | | |
| | | ||||||||||||||||||||||||||||||||||||||||||||||||
|
Robert Dennerlein
(
6
)
Chief Executive Officer |
| | | | 2016 | | | | | | 31,730 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 31,730 | | |
| | | ||||||||||||||||||||||||||||||||||||||||||||||||
|
Michael A. Ruffolo
(
6
)
Former Chief Executive Officer and President |
| | | | 2016 | | | | | | 519,230 | | | | | | 0 | | | | | | 166,236 | | | | | | 193,272 | | | | | | 0 | | | | | | 112,837 | | | | | | 991,575 | | |
| | | 2015 | | | | | | 428,365 | | | | | | 500,000 | | | | | | 2,826,000 | | | | | | 995,160 | | | | | | 434,589 | | | | | | 86,603 | | | | | | 5,270,717 | | | |||
| | | ||||||||||||||||||||||||||||||||||||||||||||||||
|
Kevin M. Dotts
(
6
)
Former Chief Financial Officer |
| | | | 2016 | | | | | | 314,813 | | | | | | 174,437 | | | | | | 146,532 | | | | | | 80,465 | | | | | | 0 | | | | | | 43,147 | | | | | | 759,394 | | |
| | | 2015 | | | | | | 332,826 | | | | | | 0 | | | | | | 178,784 | | | | | | 205,261 | | | | | | 0 | | | | | | 780 | | | | | | 717,651 | | | |||
| | | 2014 | | | | | | 323,132 | | | | | | 0 | | | | | | 131,781 | | | | | | 265,921 | | | | | | 122,871 | | | | | | 754 | | | | | | 844,459 | | | |||
| | | ||||||||||||||||||||||||||||||||||||||||||||||||
|
Peter G. Bell
Senior Vice President of Sales, INAP Cloud |
| | | | 2016 | | | | | | 250,000 | | | | | | 68,750 | | | | | | 88,978 | | | | | | 51,913 | | | | | | 0 | | | | | | 78,856 | | | | | | 538,497 | | |
| | | 2015 | | | | | | 250,000 | | | | | | 0 | | | | | | 99,612 | | | | | | 114,368 | | | | | | 72,605 | | | | | | 3,713 | | | | | | 540,298 | | | |||
| | | 2014 | | | | | | 60,577 | | | | | | 131,250 | | | | | | 197,100 | | | | | | 124,785 | | | | | | 0 | | | | | | 238 | | | | | | 513,950 | | | |||
| | | ||||||||||||||||||||||||||||||||||||||||||||||||
|
Satish Hemachandran
(
6
)
Former SVP and General Manager, Cloud and Hosting |
| | | | 2016 | | | | | | 230,576 | | | | | | 100,000 | | | | | | 88,978 | | | | | | 51,913 | | | | | | 0 | | | | | | 41,801 | | | | | | 513,268 | | |
| | | 2015 | | | | | | 234,039 | | | | | | 0 | | | | | | 82,800 | | | | | | 58,922 | | | | | | 0 | | | | | | 3,723 | | | | | | 379,484 | | | |||
| | | ||||||||||||||||||||||||||||||||||||||||||||||||
|
Steven A. Orchard
(
6
)
Former SVP and General Manager, Data Center and Network Services |
| | | | 2016 | | | | | | 266,107 | | | | | | 113,423 | | | | | | 94,928 | | | | | | 51,913 | | | | | | 0 | | | | | | 33,786 | | | | | | 560,157 | | |
| | | 2015 | | | | | | 281,333 | | | | | | 0 | | | | | | 119,473 | | | | | | 137,168 | | | | | | 0 | | | | | | 6,861 | | | | | | 544,835 | | | |||
| | | 2014 | | | | | | 273,139 | | | | | | 0 | | | | | | 88,063 | | | | | | 177,705 | | | | | | 79,893 | | | | | | 8,068 | | | | | | 626,868 | | |
| | | | | | | | |
Estimated future payouts
under non-equity incentive plan awards (1) |
| |
Estimated future payouts
under equity incentive plan awards |
| |
All Other
Stock Awards (#) |
| |
All Other
Option Awards (#) (2) |
| |
Exercise
Price of Option Awards ($/Sh.) (3) |
| |
Grant Date
Fair Value of Stock Awards (4) ($) |
| ||||||||||||||||||||||||||||||||||||||||||
Name
|
| |
Grant
Date |
| |
Threshold
($) |
| |
Target
($) |
| |
Max
($) |
| |
Threshold
(#) |
| |
Target
(#) |
| |
Max
(#) |
| |||||||||||||||||||||||||||||||||||||||||||||
Peter D. Aquino | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
$5.00 RS
(5)
|
| | | | 9/19/2016 | | | | | | | | | | | | | | | | | | | | | | | | 0 | | | | | | 200,000 | | | | | | 200,000 | | | | | | | | | | | | | | | | | | | | | | | | 146,000 | | |
$7.50 RS
(5)
|
| | | | 9/19/2016 | | | | | | | | | | | | | | | | | | | | | | | | 0 | | | | | | 250,000 | | | | | | 250,000 | | | | | | | | | | | | | | | | | | | | | | | | 95,000 | | |
$10.00 RS
(5)
|
| | | | 9/19/2016 | | | | | | | | | | | | | | | | | | | | | | | | 0 | | | | | | 250,000 | | | | | | 250,000 | | | | | | | | | | | | | | | | | | | | | | | | 55,000 | | |
$5.00 Hybrid RS
(6)
|
| | | | 9/19/2016 | | | | | | | | | | | | | | | | | | | | | | | | 0 | | | | | | 350,000 | | | | | | 350,000 | | | | | | | | | | | | | | | | | | | | | | | | 255,500 | | |
$7.50 Hybrid RS
(6)
|
| | | | 9/19/2016 | | | | | | | | | | | | | | | | | | | | | | | | 0 | | | | | | 235,000 | | | | | | 235,000 | | | | | | | | | | | | | | | | | | | | | | | | 89,300 | | |
Time-Vested RS
(7)
|
| | | | 9/19/2016 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 300,000 | | | | | | | | | | | | | | | | | | 561,000 | | |
| | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Robert M. Dennerlein | | | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Michael A. Ruffolo | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted Stock
(8)
|
| | | | 2/22/2016 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 83,118 | | | | | | | | | | | | | | | | | | 116,236 | | |
Stock Options
|
| | | | 2/22/2016 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 247,056 | | | | | | 2.00 | | | | | | 193,272 | | |
2016 STIP
|
| | | | | | | | | | 337,500 | | | | | | 675,000 | | | | | | 1,350,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Kevin Dotts | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted Stock
(8)
|
| | | | 2/22/2016 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 34,605 | | | | | | | | | | | | | | | | | | 69,210 | | |
Stock Options
|
| | | | 2/22/2016 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 102,857 | | | | | | 2.00 | | | | | | 80,465 | | |
Restricted Stock
(9)
|
| | | | 2/22/2016 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 38,661 | | | | | | | | | | | | | | | | | | 77,322 | | |
2016 STIP
|
| | | | | | | | | | 109,024 | | | | | | 218,047 | | | | | | 436,094 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Peter G. Bell | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted Stock
(8)
|
| | | | 2/22/2016 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 22,326 | | | | | | | | | | | | | | | | | | 44,652 | | |
Stock Options
|
| | | | 2/22/2016 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 66,359 | | | | | | 2.00 | | | | | | 51,913 | | |
Restricted Stock
(9)
|
| | | | 2/22/2016 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 22,163 | | | | | | | | | | | | | | | | | | 44,326 | | |
2016 Sales Incentive
(10)
|
| | | | | | | | | | 62,500 | | | | | | 125,000 | | | | | | 250,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Satish Hemachandran | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted Stock
(8)
|
| | | | 2/22/2016 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 22,326 | | | | | | | | | | | | | | | | | | 44,652 | | |
Stock Options
|
| | | | 2/22/2016 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 66,359 | | | | | | 2.00 | | | | | | 51,913 | | |
Restricted Stock
(9)
|
| | | | 2/22/2016 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 22,163 | | | | | | | | | | | | | | | | | | 44,326 | | |
2016 STIP
|
| | | | | | | | | | 62,500 | | | | | | 125,000 | | | | | | 250,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Steven Orchard | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted Stock
(8)
|
| | | | 2/22/2016 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 22,326 | | | | | | | | | | | | | | | | | | 44,652 | | |
Stock Options
|
| | | | 2/22/2016 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 66,359 | | | | | | 2.00 | | | | | | 51,913 | | |
Restricted Stock
(9)
|
| | | | 2/22/2016 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 25,138 | | | | | | | | | | | | | | | | | | 50,276 | | |
2016 STIP
|
| | | | | | | | | | 70,889 | | | | | | 141,779 | | | | | | 283,557 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
Option Awards
|
| |
Stock Awards
|
| ||||||||||||||||||||||||||||||||||||||||||||||||
Name
|
| |
Grant
Date |
| |
Number of
Securities Underlying Unexercised Options Exercisable (#) |
| |
Number of
Securities Underlying Unexercised Options Unexercisable (1) (#) |
| |
Option
Exercise Price ($) |
| |
Option
Expiration Date |
| |
Number of
Shares of Stock That Have Not Vested (2) (#) |
| |
Market Value of
Shares of Stock That Have Not Vested (3) ($) |
| |
Equity incentive
plan awards: number of unearned shares, units or other rights that have not vested (#) |
| |
Market Value of
Shares of Stock That Have Not Vested (3) ($) |
| |||||||||||||||||||||||||||
Peter D. Aquino | | | | | 9/19/2016 | | | | | | — | | | | | | — | | | | | $ | — | | | | | | — | | | | | | 300,000 (4 ) | | | | | $ | 462,000 | | | | | | 1,285,000 (5 ) | | | | | $ | 1,978,900 | | |
| | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Michael A. Ruffolo (6) | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Robert M. Dennerlein
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Kevin M. Dotts
(7)
|
| | | | 2/22/2016 | | | | | | 25,715 | | | | | | | | | | | $ | 2.00 | | | | | | 12/01/2017 | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 2/20/2015 | | | | | | 28,186 | | | | | | | | | | | | 9.04 | | | | | | 12/01/2017 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | 2/21/2014 | | | | | | 56,887 | | | | | | | | | | | | 7.93 | | | | | | 12/01/2017 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | 2/22/2013 | | | | | | 98,128 | | | | | | | | | | | | 8.72 | | | | | | 12/01/2017 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | 8/30/2012 | | | | | | 70,000 | | | | | | | | | | | | 7.11 | | | | | | 12/01/2017 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Peter G. Bell
|
| | | | 2/22/2016 | | | | | | | | | | | | 66,359 | | | | | $ | 2.00 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 2/22/2016 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 22,326 | | | | | $ | 34,382 | | | | | | | | | | | | | | | ||
| | | 2/22/2016 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 15,514 | | | | | | 23,892 | | | | | | | | | | | | | | | ||
| | | 2/20/2015 | | | | | | 16,452 | | | | | | 19,444 | | | | | | 9.04 | | | | | | 2/19/2025 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | 2/20/2015 | | | | | | 27,083 | | | | | | | | | | | | | | | | | | | | | | | | 8,264 | | | | | | 12,727 | | | | | | | | | | | | | | | ||
| | | 10/1/2014 | | | | | | | | | | | | 22,917 | | | | | | 6.57 | | | | | | 9/30/2024 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | 10/1/2014 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 15,000 | | | | | | 23,100 | | | | | | | | | | | | | | | ||
| | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Satish Hemachandran
(7)
|
| | | | 2/22/2016 | | | | | | 16,590 | | | | | | | | | | | $ | 2.00 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 1/12/2015 | | | | | | 9,167 | | | | | | | | | | | | 8.28 | | | | | | 12/01/2017 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | 9/29/2014 | | | | | | 16,250 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | | | | | | | | | | | | | | | | | | | 6.84 | | | | | | 12/01/2017 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Steven A. Orchard
(7)
|
| | | | 2/22/2016 | | | | | | 16,590 | | | | | | | | | | | $ | 2.00 | | | | | | 12/01/2017 | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 2/20/2015 | | | | | | 18,835 | | | | | | | | | | | | 9.04 | | | | | | 12/01/2017 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | 2/21/2014 | | | | | | 38,016 | | | | | | | | | | | | 7.93 | | | | | | 12/01/2017 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | 2/22/2013 | | | | | | 63,259 | | | | | | | | | | | | 8.72 | | | | | | 12/01/2017 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | 2/24/2012 | | | | | | 40,561 | | | | | | | | | | | | 7.77 | | | | | | 12/01/2017 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | 2/25/2011 | | | | | | 69,469 | | | | | | | | | | | | 7.03 | | | | | | 12/01/2017 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | 2/26/2010 | | | | | | 58,905 | | | | | | | | | | | | 5.03 | | | | | | 12/01/2017 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | 7/14/2009 | | | | | | 15,200 | | | | | | | | | | | | 2.94 | | | | | | 12/01/2017 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | 3/25/2009 | | | | | | 24,800 | | | | | | | | | | | | 2.54 | | | | | | 12/01/2017 | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
Option Awards
|
| |
Stock Awards
|
| ||||||||||||||||||
Name
|
| |
Number of
Shares Acquired on Exercise (#) |
| |
Value
Realized on Exercise ($) |
| |
Number of
Shares Acquired on Vesting (#) |
| |
Value
Realized on Vesting ($) ( 1 ) |
| ||||||||||||
Peter D. Aquino | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Robert M. Dennerlein | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Michael A. Ruffolo | | | | | — | | | | | | — | | | | | | 99,000 | | | | | | 238,590 | | |
Kevin M. Dotts | | | | | — | | | | | | — | | | | | | 87,198 | | | | | | 140,999 | | |
Peter G. Bell | | | | | — | | | | | | — | | | | | | 16,904 | | | | | | 32,550 | | |
Satish Hemachandran | | | | | — | | | | | | — | | | | | | 39,620 | | | | | | 61,022 | | |
Steven A. Orchard | | | | | — | | | | | | — | | | | | | 47,777 | | | | | | 73,747 | | |
| | |
2016
|
| |
2015
|
| ||||||
Audit Fees (1) | | | | $ | 1,789,007 | | | | | $ | 1,303,641 | | |
Tax Fees (2) | | | | | 25,000 | | | | | | 55,000 | | |
All Other Fees (3) | | | | | 5,509 | | | | | | 3,169 | | |
Total | | | | $ | 1,819,516 | | | | | $ | 1,361,810 | | |
|
|
Reverse stock split ratio
|
| |
Number of outstanding
shares of common stock |
| |
Number of authorized
shares of common stock available for issuance after proportional reduction (No increase in authorized shares)* |
| |
Number of authorized shares of
common stock available for issuance after proportional reduction (After increase in authorized shares)** |
|
|
1-for-4
|
| |
20,603,837
|
| |
9,396,163
|
| |
29,396,163
|
|
|
1-for-5
|
| |
16,483,070
|
| |
7,516,930
|
| |
23,516,930
|
|
|
1-for-6
|
| |
13,735,891
|
| |
6,264,109
|
| |
19,597,442
|
|
|
1-for-8
|
| |
10,301,919
|
| |
4,698,082
|
| |
14,698,082
|
|
|
1-for-10
|
| |
8,241,535
|
| |
3,758,465
|
| |
11,758,465
|
|
|
1-for-12
|
| |
6,867,946
|
| |
3,132,054
|
| |
9,798,721
|
|
|
1-for-15
|
| |
5,494,357
|
| |
2,505,643
|
| |
7,838,976
|
|
|
1-for-20
|
| |
4,120,767
|
| |
1,879,233
|
| |
5,879,233
|
|
|
Reverse stock split
ratio |
| |
Number of authorized
shares of common stock after proportional reduction (No increase in authorized shares)* |
| |
Number of authorized
shares of common stock after proportional reduction (After increase in authorized shares)** |
| |
Number of authorized
shares of preferred stock after proportional reduction |
|
|
1-for-4
|
| |
30,000,000
|
| |
50,000,000
|
| |
5,000,000
|
|
|
1-for-5
|
| |
24,000,000
|
| |
40,000,000
|
| |
4,000,000
|
|
|
1-for-6
|
| |
20,000,000
|
| |
33,333,333
|
| |
3,333,333
|
|
|
1-for-8
|
| |
15,000,000
|
| |
25,000,000
|
| |
2,500,000
|
|
|
1-for-10
|
| |
12,000,000
|
| |
20,000,000
|
| |
2,000,000
|
|
|
1-for-12
|
| |
10,000,000
|
| |
16,666,667
|
| |
1,666,667
|
|
|
1-for-15
|
| |
8,000,000
|
| |
13,333,333
|
| |
1,333,333
|
|
|
1-for-20
|
| |
6,000,000
|
| |
10,000,000
|
| |
1,000,000
|
|
| | |
Year Ended December 31,
2016 |
||||||||
| | |
Amount
|
| |
Percent
|
|||||
Total Revenue | | | | $ | 298 | | | | | | 100.0 % |
Net Loss (GAAP) | | | | $ | (125 ) | | | | | | -41.9 % |
Add: | | | | | | | | | | | |
Depreciation and amortization | | | | | 77 | | | | | | 25.8 % |
Interest expense | | | | | 31 | | | | | | 10.4 % |
Provision for income taxes | | | | | 1 | | | | | | 0.2 % |
Other expense (income) | | | | | 0 | | | | | | 0.1 % |
(Gain) loss on disposal of property and equipment, net | | | | | (0 ) | | | | | | 0.0 % |
Exit activities, restructuring and impairments, including goodwill impairment | | | | | 87 | | | | | | 29.3 % |
Stock-based compensation | | | | | 5 | | | | | | 1.7 % |
Strategic alternatives and related costs | | | | | 1 | | | | | | 0.5 % |
Organizational realignment costs | | | | | 4 | | | | | | 1.5 % |
Adjusted EBITDA / Adjusted EBITDA margin (non-GAAP) | | | | $ | 82 | | | | | | 27.5 % |
|