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Clearwater, Florida 33760
NOTICE OF 20172021 ANNUAL MEETING OF STOCKHOLDERS
Dear Stockholder:Stockholders:
On behalf of yourthe Board of Directors (the “Board”) of BovieApyx Medical Corporation (the “Company”), you are cordially invited to attend the 20172021 Annual Meeting of Stockholders (the “Annual Meeting”) to be held on September 14, 2017on August 6, 2021 at 10:9:00 a.m. Eastern Standard Time at the Company's officeoffices of Ruskin Moscou, Faltischek, P.C. located at 5115 Ulmerton Road, Clearwater, Florida 33760,1425 RXR Plaza, East Tower, 15th Floor, Uniondale, New York 11556, Telephone No. (727) 384-2323.(516) 663-6600.
Information Concerning Solicitation and Voting
The Board of Directors is soliciting proxies for the 2017 Annual Meeting of Stockholders to be held on September 14, 2017.August 6, 2021. This Proxy Statement contains information for you to consider when deciding how to vote on the matters brought before the meeting.Annual Meeting.
Voting materials, which include the Proxy Statement, Proxy Card and the 20162020 Annual Report on Form 10-K, are being mailed to stockholders on or about August 8, 2017.July 1, 2021. The executive office of our Company is located at 4 Manhattanville5115 Ulmerton Road, Suite 106, Purchase, New York 10577,Clearwater, Florida 33760, telephone number (914) 468-4069.(727) 384-2323.
At the meeting,Annual Meeting, the Company's stockholders will be asked to:
1.Elect seven (7) directors to the Board to serve until the 2022 Annual Meeting of Stockholders (the “Director Proposal”);
2.Ratify RSM US, LLP as the independent registered public accounting firm for the Company for the fiscal year ending December 31, 2021 (the “Auditor Proposal”);
3.Approve the Company’s 2021 Share Incentive Plan (the “Incentive Plan Proposal”); and
4.Transact such other business that may properly come before the meeting.
Stockholders are referred to the Proxy Statement accompanying this notice for more detailed information with respect to the matters to be considered at the Annual Meeting. After careful consideration, the Board unanimously recommends that you vote “FOR” the Board’s nominees for directors (Proposal 1); “FOR” the Auditor Proposal (Proposal 2); "FOR" the Incentive Plan Proposal (Proposal 3); and, in the proxy holder’s best judgment, as to any other matters that may properly come before the Annual Meeting.
All stockholders are invited to attend the meeting.Annual Meeting. The close of businessbusiness on August 8, 2017June 24, 2021 is the record date for determining stockholders entitled to notice of, and to vote at, the Annual Meeting. Consequently, only stockholders whose names appear on our books as owning our Common Stockcommon stock at the close of business on August 8, 2017June 24, 2021 will be entitled to notice of, and to vote at, the Annual Meeting and any adjournment or postponement thereof.
In light of the COVID-19 pandemic, stockholders who attend the Annual Meeting in person may be required to adhere to enhanced safety protocols, which may include providing proof of COVID-19 vaccination, mask-wearing, and appropriate social-distancing.
YOUR VOTE AND PARTICIPATION IN THE COMPANY’S AFFAIRS ARE IMPORTANT.
If your shares are registered in your name, even if you plan to attend the Annual Meeting or any adjournment or postponement of the Annual Meeting in person, we request that you vote by telephone, over the Internet, or complete, sign and mail your proxy card to ensure that your shares will be represented at the Annual Meeting.
If your shares are held in the name of a broker, bank or other nominee, and you receive notice of the Annual Meeting through your broker, bank or other nominee, please vote or complete and return the materials in accordance with the instructions
provided to you by such broker, bank or other nominee or contact your broker, bank or other nominee directly in order to obtain a proxy issued to you by your nominee holder to attend the Annual Meeting and vote in person. Failure to do so may result in your shares not being eligible to be voted by proxy at the Annual Meeting.
The accompanying Proxy Statement contains important information concerning the Annual Meeting, including information as to how to cast your vote. We encourage you to read the accompanying Proxy Statement and other annexes to the Proxy Statement carefully and in their entirety.
Your vote is important to us. Please complete, sign, date and promptly return the proxy card in the enclosed envelope, so that your shares will be represented whether or not you attend the annual meeting.Annual Meeting. Returning a proxy card will not deprive you of your right to attend the meetingAnnual Meeting and vote your shares in person.
| IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS FOR THE | ||
| THIS NOTICE OF ANNUAL MEETING, PROXY STATEMENT, PROXY CARD AND ANNUAL REPORT ON FORM 10-K FOR THE PERIOD ENDING DECEMBER 31, | ||
| By order of the Board of Directors | ||||||||||||
| Dated: | /s/ Andrew Makrides | |||||||||||
| Andrew Makrides | ||||||||||||
| Chairman of the Board of Directors | ||||||||||||
Neither the Securities and Exchange Commission nor any state securities regulatory agency has passed upon the adequacy or accuracy of the accompanying Proxy Statement. Any representation to the contrary is a criminal offense.
The accompanying Proxy Statement is dated June 25, 2021, and is first being mailed to stockholders on or about July 1, 2021.
APYX MEDICAL CORPORATION
5115 Ulmerton Road
Clearwater, Florida 33760
PROXY STATEMENT
INFORMATION CONCERNING SOLICITATION AND VOTING
The Board of Directors (the “Board”) of Apyx Medical Corporation (the “Company”) is soliciting proxies for the 20172021 Annual Meeting of Stockholders (the “Annual Meeting”) to be held at 10:9:00 a.m. Eastern Standard Time on September 14, 2017August 6, 2021 at the Company's officeoffices of Ruskin Moscou, Faltischek, P.C., located at 5115 Ulmerton Road, Clearwater, Florida 33760. This Proxy Statement contains important information for you to consider when deciding how to vote on the matters brought before the meeting.1425 RXR Plaza, East Tower, 15th Floor, Uniondale, New York 11556, Telephone No. (516) 663-6600.
Voting materials, which include the Proxy Statement, Proxy Card and our 20162020 Annual Report on Form 10-K (the “Annual Report”), are being mailed to stockholders on or about August 8, 2017.July 1, 2021. Our executive office is located at 4 Manhattanville5115 Ulmerton Road, Suite 106, Purchase, New York 10577.Clearwater, Florida 33760.
QUESTIONS AND ANSWERS ABOUT THE ANNUAL MEETING
The following questions and answers are intended to briefly address commonly asked questions as they pertain to the Annual Meeting. These questions and answers may not address all questions that may be important to you as a stockholder. Please refer to the more detailed information contained elsewhere in this Proxy Statement and the annexes to this Proxy Statement, each of which you should read carefully.
WHAT IS A PROXY?
A proxy is another person that you legally designate to vote your stock. If you designate someone as your proxy in a written document, that document is also called a “proxy” or a “proxy card.” If you are a street name holder, you must obtain a proxy from your broker, bank or other nominee in order to vote your shares in person at the Annual Meeting.
WHAT IS A PROXY STATEMENT?
A proxy statement is a document that regulations of the Securities and Exchange Commission (the “SEC”) require that we give to you when we ask you to sign a proxy card to vote your stock at the Annual Meeting.
WHO IS SOLICITING YOUR VOTE?VOTE?
The Board of Directors of Bovie Medical Corporation (the "Company") is soliciting your vote atfor the 20172021 Annual Meeting of Bovie's common stockholders being held at 10:9:00 a.m. Eastern Standard Time on September 14, 2017,August 6, 2021, at the Company's officeoffices of Ruskin Moscou, Faltischek, P.C., located at 5115 Ulmerton Road, Clearwater, Florida 33760, Telephone No. (727) 384-2323.
1425 RXR Plaza, East Tower, 15th Floor, Uniondale, New York 11556.
WHAT WILL YOU BE VOTING ONON?
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(1) Election of six (6)seven (7) directors to the Board of Directors;(the “Director Proposal”); (2) Ratification of Frazier & Deeter, LLC,RSM US, LLP, as Bovie'sthe Company’s auditors for the fiscal year ending December 31, 2017;2021 (the “Auditor Proposal”); (3) Approval of a non-binding advisory resolution supporting the compensation of our named executive officers; (4) Approval of the Company’s 20172021 Share Incentive Plan; (5) Approval of an amendment to the Company’s Certificate of Incorporation to increase the authorized number of shares of the Company’s common stock, having a par value of $.001 per share (“Common Stock”Plan (the “Incentive Plan Proposal”), from Forty Million (40,000,000) shares to Seventy-Five Million (75,000,000) shares of Common Stock;; and (6)(4) any other matters which may properly come before the meeting.
WHAT IS THE RECORD DATE AND WHAT DOES IT MEAN?
The record date to determine the stockholders entitled to notice of and to vote at the Annual Meeting is the close of business on June 24, 2021 (the “Record Date”). The Record Date was established by the Board as required by Delaware law. On the Record Date, 34,322,749 shares of common stock were issued and outstanding.
HOW MANY VOTES DO STOCKHOLDERS HAVEHAVE?
Holders of common stock at the close of business on the Record Date may vote at the Annual Meeting. You will have one vote for every share of the Company's Common Stockcommon stock you owned of record on August 8, 2017 (the "Record Date"), inclusive of the holders of the Company's Series B Convertible Preferred Stock on an as-converted basis. Each share of Series B Convertible Preferred Stock is convertible into two (2) shares of Common Stock.
There is no cumulative voting.
HOW MANY VOTES MUST BE PRESENT TO HOLD THE MEETING?MEETING?
A majority of the outstanding shares of Common Stockcommon stock entitled to vote (inclusive of shares of the Company's Series B Convertible Preferred Stock on an as-converted basis) represented in person or by proxy constitute a quorum. Abstentions and broker non-votes will count for purposes of determining whether a quorum exists, but not for voting purposes.
HOW MAY I VOTE MY SHARES?SHARES?
You can vote either in person at the Annual Meeting or by proxy without attending the Annual Meeting. We urge you to vote by proxy even if you plan to attend the Annual Meeting so that we will know as soon as possible that enough votes will be present for us to hold the meeting.
(a) How may I vote my shares in person at the meeting?meeting?
If your shares are registered directly in your name with our transfer agent, Manhattan Transfer Registrar Co., on the Record Date, you are considered, with respect to those shares, the stockholder of record, and the proxy materials and proxy card are being sent directly to you by the Company. As the stockholder of record, you have the right to vote in person at the meeting.Annual Meeting. If your shares are held in a brokerage account or by another nominee, you are considered the beneficial owner of shares held in street name, and the proxy materials are being forwarded to you together with a voting instruction card. As the beneficial owner, you are also invited to attend the Annual Meeting. Since you are a beneficial owner and not the stockholder of record, you may not vote these shares in person at the meetingAnnual Meeting unless you obtain a "legal proxy"“legal proxy” from the broker, trustee or nominee that holds your shares in its name, giving you the right to vote the shares at the meeting.Annual Meeting.
(b) How can I vote my shares without attending the meeting?meeting?
Whether you hold shares directly as a registered stockholder of record or beneficially in street name, you may vote without attending the meeting.Annual Meeting. You may vote by granting a proxy or, for shares held in street name, by submitting voting instructions to your broker or nominee. In most cases, you will be able to do this by telephone, by using the Internet or by mail. Please refer to the summary instructions included with proxy materials and on your proxy card. For shares held in street name, the voting instruction card will be included in the materials forwarded by the broker or nominee. If you have telephone or Internet access, you may submit your proxy by following the instructions with your proxy materials and on your proxy card. You may submit your proxy by mail by signing your proxy card or, for shares held in street name, by following the voting instructions with your proxy materials and on your proxy card. You may submit your proxy by mail by signing your proxy card or, for shares held in street name, by following the voting instruction card included in the materials forwarded by your stockbroker or nominee and mailing it in the enclosed, postage paid envelope. If you provide specific voting instructions, your shares will be voted as you have instructed.
WHAT ARE "BROKER NON-VOTES"THE BOARD’S RECOMMENDATIONS ON HOW I SHOULD VOTE MY SHARES?
The Board unanimously recommends that you vote your shares as follows:
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•Proposal 1 - FOR each of the Board’s nominees for directors;
•Proposal 2 - FOR the Auditor Proposal; and
•Proposal 3 - FOR the Incentive Plan Proposal.
WHAT IF I DO NOT SPECIFY HOW I WANT MY SHARES VOTED?
If you are a record holder who returns a completed proxy card that does not specify how you want to vote your shares on one or more proposals, the designated proxies will vote your shares for each proposal as to which you provide no voting instructions, and such shares will be voted in the following manner:
•Proposal 1 - FOR each of the Board’s nominees for directors;
•Proposal 2 - FOR the Auditor Proposal; and
•Proposal 3 - FOR the Incentive Plan Proposal.
If you are a “street name” holder and do not provide voting instructions on one or more proposals, your bank, broker or other nominee may be able to vote those shares. See “What are broker non-votes?” below.
WHAT ARE “BROKER NON-VOTES”?
Broker non-votes occur when a beneficial owner of shares held in "street name"“street name” does not give instructions to the broker or nominee holding the shares as to how to vote on matters deemed "non-routine."“non-routine.” Generally, if shares are held in street name, the beneficial owner of the shares is entitled to give voting instructions to the broker or nominee holding the shares. If the beneficial owner does not provide voting instructions, the broker or nominee can still vote the shares with respect to matters that are considered to be "routine,"“routine,” but not with respect to "non-routine"“non-routine” matters. Under the rules and interpretations of the New YorkNASDAQ Stock Exchange ("NYSE"Market LLC (“NASDAQ”), "non-routine"“non-routine” matters are matters that may substantially affect the rights or privileges of stockholders, such as mergers, stockholder proposals, election of directors (even if not consented) and executive compensation.
The Director Proposal is considered a “non-routine” matter. Therefore, if you do not provide voting instructions to your broker regarding the Director Proposal, your broker will not be permitted to exercise voting authority to vote your shares on such proposals and will result in a broker non-vote.
•For Proposal One,1, each of the six (6)seven (7) nominees for director receiving a majority of the votes cast by stockholders present in person or represented by proxy and entitled to vote at the meetingAnnual Meeting will be elected (A majority of votes cast means that the number of votes cast "for"“for” a director must exceed the number of votes cast "against"“against” that director.)director). A proxy marked "withhold"“withhold” or “abstain” with respect to the election of a director will not be voted as to the director indicated and will have the effect of a vote against the proposal, but will be counted for purposes of determining whether there is a quorum. Broker non-votes will not affect the outcome of the vote on this matter.
•For Proposal Two,2, the affirmative vote of the majority of the votes cast by stockholders at the Annual Meeting by the holders of shares entitled to vote thereon is required to approve the ratification of the appointment of RSM US, LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2021.
•For Proposal 3, an affirmative vote of the majority of the votes cast by stockholders present in person or represented by proxy at the meetingAnnual Meeting is required to approve the ratification of the appointment of Frazier & Deeter, LLC as our independent registered public accounting firm for its fiscal year ending December 31, 2017.
WHAT IS THE QUORUM REQUIREMENTREQUIREMENT?
A quorum of stockholders is necessary to hold a valid meeting. A quorum will be present if stockholders holding at least a majority of the outstanding shares of common stock entitled to vote are present at the meetingAnnual Meeting in person or represented by proxy. On the record date,Record Date, there were 31,002,83234,322,749 shares of common stock issued and 30,859,753 outstanding and entitled to vote and 3,588,139 shares authorized and 975,639 shares of the Company's Series B Convertible Preferred Stock issued and outstanding of which 3,000,677 shares are entitled to vote. Thus, the holders of 16,930,216 shares17,161,375 shares of votingcommon stock must be present in person or represented by proxy at the meetingAnnual Meeting to have a quorum.
Your shares will be counted towards the quorum only if you submit a valid proxy (or one is submitted on your behalf by your broker, bank or other nominee) or if you vote in person at the meeting.Annual Meeting. Abstentions and broker non-votes will be
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counted towards the quorum requirement. If there is no quorum, the holders of a majority of shares of votingcommon stock present at the meetingAnnual Meeting in person or represented by proxy may adjourn the meetingAnnual Meeting to another date.
CAN YOU CHANGE YOUR VOTE?VOTE?
(a) Can a stockholder change his vote?vote?
Yes. Any registered stockholder who voted by proxy or in person may change his or her vote at any time before recording the votes on the date of the Annual Meeting.
(b) How can I change my vote after I return my proxy card?
Provided you are the stockholder of record or have legal proxy from your nominee, you may revoke your proxy and change your vote at any time before the final vote at the meeting.Annual Meeting. You may do this by signing and submitting a new proxy card bearing a later date, or by attending the meetingAnnual Meeting and voting in person. Attending the meetingAnnual Meeting will not revoke your proxy unless you specifically request it.
WHAT IF YOU VOTE "ABSTAIN"“ABSTAIN”?
A vote to "abstain"“abstain” on any matterProposal 1 indicates that your shares will not be voted for such matter and will have the effect of a vote against the proposal.
A vote to “abstain” on Proposals 2 and 3 indicates that your shares will not be voted for such matters and will have no effect on the outcome of the vote.
Abstentions are considered as being present for quorum purposes.
CAN YOUR SHARES BE VOTED IF YOU DO NOT RETURN YOUR PROXY AND DO NOT ATTEND THE ANNUAL MEETING?MEETING?
A broker non-vote occurs when a nominee holding shares for a beneficial owner does not vote on a particular proposal because the nominee does not have discretionary voting power for that particular item, and has not received instructions from the beneficial owner. Broker non-votes count for quorum purposes but not for voting purposes.
If you do not attend and vote your shares which are registered in your name or if you do not otherwise fill out the proxy card and vote by proxy, your shares will not be voted.
HOW CAN I ATTEND THE ANNUAL MEETING?
Only stockholders as of the Record Date (or their proxy holders) may attend the Annual Meeting. All stockholders seeking admission to the Annual Meeting must present photo identification. If you hold your shares in street name, to gain admission to the Annual Meeting you also must provide proof of ownership of your shares as of the record date. Proof of ownership may be a letter or account statement from your broker, bank or other holder of record.
In light of the COVID-19 pandemic and enhanced safety concerns, stockholders who wish to attend the Annual Meeting in person will need to register in advance by notifying the Company’s Secretary no later than 10:00 a.m. on July 30, 2021, at the following address, telephone number or email address: 5115 Ulmerton Road, Clearwater, Florida 33760, telephone number (727) 384-2323, email address investor.relations@apyxmedical.com, of their intention to attend the Annual Meeting. Registration will be on a first-come, first-served basis. Only stockholders as of the Record Date who have registered in advance and have a valid confirmation of registration will be admitted to the Annual Meeting. Please note that due to space constraints, we will not be able to provide access to the Annual Meeting to any stockholders who have not registered in advance.
In light of the COVID-19 pandemic, stockholders who attend the Annual Meeting in person may be required to adhere to enhanced safety protocols, which may include providing proof of COVID-19 vaccination, mask-wearing, and appropriate social-distancing.
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Upon arrival at 1425 RXR Plaza, Uniondale, NY 11556 on the day of the Annual Meeting, attendees will be required to report to security, provide proper identification and sign in. Attendees should inform security that they are going to the offices of Ruskin Moscou Faltischek, P.C., and security will direct the attendees where to go. All attendees will be screened prior to admission to the Annual Meeting.
WHAT HAPPENS IF THE MEETING IS POSTPONED OR ADJOURNED?ADJOURNED?
Your proxy will still be valid and may be voted at the postponed or adjourned meeting. You will still be able to change or revoke your proxy until it is actually voted.
WHAT IS HOUSEHOLDING OF ANNUAL MEETING MATERIALS?
Some banks, brokers and other nominee record holders may be participating in the practice of "householding"“householding” proxy statement and annual reports. This means that only one copy of our proxy statementProxy Statement and annual reportAnnual Report to Stockholders may have been sent to multiple Stockholdersstockholders in your household. We will promptly deliver a separate copy of either document to you if you contact the Secretary at the following address or telephone number: 4 Manhattanville5115 Ulmerton Road, Suite 106, Purchase, New York 10577,Clearwater, Florida 33760, telephone number (914) 468-4069.(727) 384-2323. If you want to receive separate copies of the proxy statementthis Proxy Statement or the annual report to StockholdersAnnual Report in the future, or if you are receiving multiple copies and would like to receive only one copy per household, you should contact your bank, broker or other nominee record holder, or you may contact the Company at the above address or telephone number.
DO STOCKHOLDERS HAVE DISSENTER'SDISSENTERS’ RIGHTS?
Stockholders aredo not entitled to dissenter'shave dissenters’ rights of appraisal with respect to any of the proposals being voted on.
WHAT SHOULD I DO IF I RECEIVE MORE THAN ONE SET OF VOTING MATERIALS?
You may receive more than one set of voting materials, including multiple copies of the Notice of Annual Meeting or this Proxy Statement and multiple proxy cards or voting instruction cards. For example, if you hold your shares in more than one brokerage account, you will receive a separate voting instruction card for each brokerage account in which you hold shares. Similarly, if you are a stockholder of record and hold shares in a brokerage account, you will receive a notice for shares held in your name and a notice or voting instruction card for shares held in street name. Please follow the directions provided in the notice and each additional notice or voting instruction card you receive to ensure that all your shares are voted.
WHAT ARE THE SOLICITATION EXPENSES AND WHO PAYS THE COST OF THIS PROXY SOLICITATION?
Our Board is asking for your proxy and we will pay all of the costs of asking for stockholder proxies. We will reimburse brokerage houses and other custodians, nominees and fiduciaries for their reasonable out-of-pocket expenses for forwarding solicitation material to the beneficial owners of common stock and collecting voting instructions. We may use our officers and employees to ask for proxies, as described below. In addition, we have retained Laurel Hill Advisory Group, LLC to assist in the solicitation of proxies for a fee of approximately $6,500 plus reimbursement of expenses.
WHERE CAN I FIND VOTING RESULTS?
We expect to publish the voting results in a Current Report on Form 8-K, which we expect to file with the SEC within four business days following the Annual Meeting.
WHO CAN HELP ANSWER MY QUESTIONS?
The information provided above in this “Question and Answer” format is for your convenience only and is merely a summary of the information contained in this Proxy Statement. We urge you to carefully read this entire Proxy Statement, including the documents we refer to herein. If you have any questions, need additional material, or require assistance in voting your shares, please feel free to contact Laurel Hill Advisory Group, LLC, the firm assisting us in the solicitation of proxies. Stockholders may call Laurel Hill toll-free at 888-742-1305.
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PROPOSAL ONE
ELECTION OF DIRECTORS AND MANAGEMENT INFORMATION
The Governance and Nominating Committee of the Board has nominated six (6)seven (7) persons consisting of John Andres, Michael Geraghty, Robert L. Gershon, Andrew Makrides, J. Robert Saron andCharles D. Goodwin, Lawrence J. Waldman, Michael Geraghty, John Andres, Craig Swandal and Minnie Baylor-Henry, each a current Director, for re-election to the Board of Directors.Board.
Each director serves from the date of his or her election until the next annual meeting of stockholders and until hisa successor is duly elected and qualified. The accompanying proxy card will be voted in favor of the persons named above to serve as directors, unless the Stockholderstockholder indicates to the contrary on the proxy card. See "Information“Information Regarding Executive Officers, Directors and Directors"Director Nominees” for biographical information as to each nominee.
THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT YOU VOTE "FOR"“FOR” THIS PROPOSAL 1 TO ELECT AS DIRECTORS THE SIXSEVEN NOMINEES PROPOSED BY THE GOVERNANCE AND NOMINATING COMMITTEE OF THE BOARD OF DIRECTORS.BOARD.
Information Regarding our Board of Directors
Our Certificate of Incorporation and Bylaws provide for our Company to be managed by or under the direction of the Board of Directors.Board. Under our Certificate of Incorporation and Bylaws, the number of directors is fixed from time to time by the Board of Directors.Board. The maximum number of directors permitted pursuant to our Certificate of Incorporation and Bylaws is currentlynine. Currently, the number of Board seats constituting the entire Board is fixed at nine,seven, and the number of directors constitutingcurrently serving is seven, leaving no vacancies on the entire Board is currently six.Board. The Board currently has threesix members who have been determined to be "independent"“independent” as defined by the applicable rules of the NYSE MKTThe NASDAQ Stock Market LLC and the Securities and Exchange Commission. These "independent"“independent” directors are Andrew Makrides, Michael Geraghty, John Andres, and Lawrence J. Waldman.Waldman, Craig Swandal, and Minnie Baylor-Henry. Our Common Stockcommon stock is listed on the NYSE MKTThe NASDAQ Stock Market LLC under the symbol "BVX"“APYX”.
The primary responsibilities of our Board of Directors are to provide oversight, strategic guidance, counseling and direction to our management. Our Board of Directors meets on a regular basis and additionally as required. Written or electronic materials are distributed in advance of meetings as a general rule and our Board of Directors schedules meetings with, and presentations from, members of our senior management on a regular basis and as required.
Directors are elected at the Annual Meeting of Stockholders and hold office until our next Annual Meetingannual meeting of stockholders and until their successors are elected and qualified. Officers are appointed by the Board of Directors and serve at the pleasure of the Board of Directors.Board.
The Board of Directors held ten (10)held seven (7) meetings and acted by unanimous written consent three (3)two (2) times during the 20162020 fiscal year. Throughout the year and from time-to-time the Board will hold informal meetings on an as needed basis. All of the directors attended 100% of the meetings of the Board of Directors and of the committees on which they served, except J. Robert Saron was absent from one (1) meeting of the Board of Directors.served. While we encourage all members of the Board of Directors to attend Annual Meetings of Stockholders, there is no formal policy as to their attendance.
Legal Proceedings Involving Directors
There were no legal proceedings involving the nominees to the Board of Directors in the past ten years.
Board Leadership Structure
The independent directors appointed Lawrence J. Waldman as the Lead Independent Director. The Lead Independent Director is appointed by the Board and is responsible for coordinating the activities of the independent directors and coordinating with the Chief Executive Officer of the Company to set agendas for Board meetings and chair executive sessions of the independent directors. The Lead Independent Director is also responsible for meeting, from time to time, with the Company'sCompany’s Compensation Committee to discuss the Chief Executive Officer'sOfficer’s performance.
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The Company'sCompany’s Corporate Governance Policies also contain several features which the Company believes will ensure that the Board maintains effective and independent oversight of management, including the following:
•Executive sessions without management and non-independent directors present are a standing Board agenda item.
•Executive sessions of the independent directors are held at any time requested by an independent director and, in any event, are held in connection with at least 100% ofall regularly scheduled Board meetings.
•The Board regularly meets in executive session with Mr. Gershonthe CEO without other members of management present.
•All Board committee members are independent directors. The committee chairs have authority to hold executive sessions without management and non-independent directors present.
The Board has no formal policy with respect to separation of the positions of ChairmanChair and CEO or with respect to whether the ChairmanChair should be a member of management or an independent director, and believes that these are matters that should be discussed and determined by the Board from time to time. On December 13, 2013, Andrew Makrides resigned from his position asThe Chief Executive Officer of the Company, and Robert L. Gershon was appointed as Chief Executive Officer of the Company. Mr. GershonCharles D. Goodwin, is tasked with the responsibility of implementing our corporate strategy, and westrategy. We believe heMr. Goodwin is best suited for leading discussions, at the Board level, regarding performance relative to our corporate strategy and this discussion accounts for a significant portion of the time devoted at our Board meetings.
Risk Management Oversight
The Board believes that risk management is an important component of the Company'sCompany’s corporate strategy. While we assess specific risks at our committee levels, the Board, as a whole, oversees our risk management process, and discusses and reviews with management major policies with respect to risk assessment and risk management. The Board is regularly informed through its interactions with management and committee reports about risks we face in the course of our business. Our Audit Committee also takes an active role in risk assessment and risk management.
INFORMATION REGARDING EXECUTIVE OFFICERS, DIRECTORS AND DIRECTOR NOMINEES
The following table sets forth the names, ages and positions within the Company of each of our directors, director nominees, executive officers and key employees.
| Name | Age | Position | ||||||||||||
| 55 | ||||||||||||||
| Chief Executive Officer and Director | ||||||||||||||
| 51 | Chief Financial Officer, Treasurer and Secretary | N/A | ||||||||||||
| 45 | Executive Vice President | N/A | ||||||||||||
| Moshe Citronowicz | 68 | Senior Vice President | N/A | |||||||||||
| Andrew Makrides | 79 | Chair of the Board | December 1982 | |||||||||||
| Lawrence J. Waldman | 74 | Director | March 2011 | |||||||||||
| Michael Geraghty | 74 | Director | March 2011 | |||||||||||
| John Andres | 63 | Vice-Chair of the Board | ||||||||||||
| Craig Swandal | 60 | Director | March 2018 | |||||||||||
| Minnie Baylor-Henry | 73 | Director | August 2019 | |||||||||||
Andrew Makrides, Esq. age 75, Chairman79, Chair of the Board of Directors since December 1982, received a Bachelor of Arts degree in Psychology from Hofstra University and a Juris Doctor Degree from Brooklyn Law School. He is a member of the Bar of the State of New York and practiced law from 1968 until joining BovieApyx Medical Corporation as a co-founder and Executive Vice President and director, in 1982. Mr. Makrides became President of the Company in 1985 and the CEO in December 1998 and has served as such until March 18, 2011 at which point he relinquished his position as President, but remained CEO until December 2013. Mr. Makrides employment contract expired December 31, 2016, at which time his employment with the company ceased and he became the non-executive Chairman of the Board of Directors.2016. Mr. Makrides has over 30 years of executive experience in the medical industry. The Company believes Mr. Makrides is qualified to serve as Chair because of his over 30 years of experience in the medical device industry as well as with his previous tenure with the Company.
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specializing in dental implants. Prior to this position, Mr. Goodwin spent more than 11 years with Olympus/Gyrus ACMI in a variety of commercial and marketing business at Covidien. With over $1B in P&L responsibility he consistently led an organizationleadership roles of over 600 people to double-digit revenue growth outpacing market category growth and capturing significant market share points during challenging healthcare economic conditions. He also was VP of sales and marketing at Henry Schein ($1.4B shared P&L for medical division/$115M full P&L for dialysis division) and earlier in his career spent over 13 yearsincreasing responsibility. Mr. Goodwin began as a healthcare consultantregional sales director for Booz Allen Hamilton, KPMGGyrus in 2002 and two boutique consultancieswas later promoted to Vice President of Sales, overseeing the Company’s strong commercial ramp and assisting Gyrus’ executive leadership team in the successful acquisition of American Cytoscope Makers, or “ACMI”, for $500 million in 2005. As President of Gyrus ACMI’s surgical division, Mr. Goodwin developed the company’s global distribution network and achieved average annual sales growth of 35% for three consecutive years, resulting in a promotion to President of Worldwide Sales in 2007. As President of Worldwide Sales for Gyrus ACMI, Mr. Goodwin was responsible for a global business with approximately 700 employees and was a key contributor to the successful sale of Gyrus ACMI to Olympus for $2.2 billion in 2008. Mr. Goodwin served as Group Vice President of Olympus Corporation’s global surgical energy group, where his practice focused on strategic planning,he was responsible for commercial strategy, R&D and operations for a business development and mergers and acquisitions.with more than 500 employees worldwide. Mr. Gershon received an MBA from J.L. Kellogg Graduate School of Management at Northwestern University and a BSBA degree from American University.
Todd Hornsby, age 45, Executive Vice President since January 2019, has responsibility for global Commercial operations. He is an accomplished Senior Executive with more than 19 years of success in the medical device and biotech industries. Throughout his career, Todd has held various leadership positions and has extensive experience in sales, sales management, and with building strong teams and launching new technologies. Since joining Apyx™ Medical in August 2014, Todd has focused primarily on the commercialization of Apyx’s Renuvion / J-Plasma advanced energy system. Prior to joining Apyx, Todd held roles of increasing seniority and responsibility at CryoLife, Inc. During his tenure, Todd directed the US Sales team, with a diversified product portfolio of biological heart valves and vascular grafts, surgical adhesives and hemostatic agents, dialysis access and CHF chronic heart failure products. Todd also directed successful integrations of three acquisitions into the US sales channel. Early in his medical device career, Todd held positions with Ethicon - Endo Mechanical Intelligent Device franchise, where he managed a team of 50 sales professionals. Mr. McCarthy is a graduate of Loyola University in Baltimore, Maryland, were he obtainedSurgery and Medex Medical. Todd holds a BA degree in Marketing in 1988Psychology from Hope College. He is also the recipient of many awards for sales achievement and an MBA in Marketing in 1990.growth.
Moshe Citronowicz, age 64,68, Senior Vice President since 2012, came to the United States in 1978 and has worked in a variety of manufacturing and high technology industries. In October 1993, Mr. Citronowicz joined the Company as Vice President of Operations and served as our Chief Operating Officer until November 2011. Currently, he is serving as the Senior Vice President. Mr. Citronowicz’s employment contract extends to December 31, 2017.2021.
Lawrence J. Waldman, CPA, CPA, age 70, has served as a director since 2011 and is currently the74, Director, Audit Committee Chair, of our audit committee and Lead Independent Director of the Board.since March 2011. Mr. Waldman has over thirty-five years of experience in public accounting. Mr. Waldman currently serves as a senior advisor to First Long Island Investors, LLC, an investment and wealth management firm since May 2016. Prior to that Mr. Waldman served as an advisor to the accounting firm of EisnerAmper LLP, where he was previously the Partner-in-Charge of Commercial Audit Practice Development for Long Island since September 2011. Prior to joining EisnerAmper LLP, Mr. Waldman was the Partner-in-Charge of Commercial Audit Practice Development for Holtz Rubenstein Reminick, LLP from July 2006 to August 2011. Mr. Waldman was the Managing Partner of the Long Island office of KPMG LLP from 1994 through 2006, the accounting firm where he began his career in 1972. Mr. Waldman was elected to the Board of Directors of Comtech Telecommunications Corp. in August of 2015 and since December 2015, serves as Chair of its audit committee. In October 2016, Mr. Waldman was appointed and subsequently in December 2016 elected to the Board of Directors of CVD Equipment Corporation, and serves as a memberthe Chair of the audit committee and Chairas Lead Independent Director. In January 2021, Mr. Waldman was appointed to serve as non-Executive Chairman of the compensation committee.Board of CVD Equipment Corporation. Mr. Waldman servesserved through October 2018 as a member of the Board of Directors of Northstar/RXR Metro Income Fund, a non-traded Real Estate Investment Trust and has served as a member of its audit committee since 2014. Mr. Waldman is also the Chair of the Supervisory Committee of Bethpage Federal Credit Union. Mr. Waldman also served as a member of the State University of New York’s Board of Trustees and as chair of its audit committee, until March 2017. Mr. Waldman is also the Chair of the Supervisory Committee of Bethpage Federal Credit Union.committee. He previously served as the Chairman of the Board of Trustees of the Long Island Power Authority and as Chair and a member of the finance and audit committee of its Board of Trustees. Mr. Waldman meets the definition of a financial expert as defined by the SEC and NYSE MKT.The NASDAQ Stock Market LLC. The Company believes Mr. Waldman is qualified to serve as Director, Audit Committee Chair and Lead Independent Director
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because of his over 35 years experience in public accounting and his positions on various boards.
Michael Geraghty, age 70,74, has served as a director since March 20112010 and was previously employed as the President of Global Sales at Optos, Inc., a developer and manufacturer of retinal imaging devices for screening, detection and diagnosis of eye related conditions. From 2005 through 2008, he was the President of International Sales at Gyrus Acmi where he first started in 2000 as Senior Vice President of Sales for Gyrus Medical. Prior to this, Mr. Geraghty was the Vice President of Sales and Marketing for Everest Medical, Inc. and before that was the Director of Marketing for Advanced Products at Arthrocare Corporation. Mr. Geraghty specializes in building independent direct sales teams in the medical device industry and has extensive domestic and international sales and marketing experience. He received his bachelor’s degree from St. Mary’s University and graduate degree in Executive Sales Management from the University of Minnesota. The Company believes Mr. Geraghty is qualified to serve as Director and Compensation Committee Chair because of his extensive domestic and international sales, marketing, and management experience.
Craig Swandal, age 60, Director since March 2018. Mr. Swandal has over 30 years of experience at public and privately-held medical technology and electronics manufacturing companies. He began his career in 1981 at Unisys Corporation, a manufacturer of main frame computer systems, where he held a variety of manufacturing positions of increasing responsibility. In 1995 he joined Silent Knight, a manufacturer of industrial fire and security systems, as a Manufacturing Manager and was promoted to Vice President of Operations.
In 2001, Mr. Swandal joined Gyrus, a manufacturer of surgical devices, where he was responsible for the company’s manufacturing operations as Director of Operations and later Vice President of Operations. Following Gyrus’s acquisition of ACMI in 2005, Mr. Swandal was promoted to Senior Vice President and was responsible for the global operations of the combined company. He developed and executed Gyrus ACMI’s strategy to consolidate its manufacturing, distribution, customer service and service and repair operations and was a member of the leadership team that successfully sold the company to Olympus Corporation for $2.2 billion in 2008.
Following the acquisition of Gyrus ACMI, Mr. Swandal served on the executive leadership teams of several companies, including ATS Medical, ACELL and Tendyne, where he was focused on operational development and currently holds a position. He is currently the Principal of Lead 2 Change Consulting, where he assists companies in identifying and implementing new manufacturing initiatives. Mr. Swandal serves as a member of the Board of Managers for Tiumed LLC a nontraded Medical Device start up. Mr. Swandal holds a Bachelor’s degree in Organizational Management and Communications from Concordia University, as well as a mini Master of Business Administration in Medical Technology from the University of St Thomas. The Company believes Mr. Swandal is qualified to serve as Director because of his extensive experience in manufacturing operations.
John Andres, age 59, serves as63, Vice ChairmanChair of the Board of Directors and Nominating Chair since July 2014, has over thirty years of experience in the medical device industry. Since April of 2017, Mr. Andres has been outside General Counsel and Compliance Officer for a privately held company, electroCore, LLC. Since fall of 2016, Mr. Andres has been a member of the board of managers, chair of the compensation committee, and a member of the ethics and compliance committee of a private start-up company called Longeviti Neuro Solutions, LLC. Longeviti Neuro Solutions, LLC is a Maryland LLC founded in 2016 to develop and commercialize implants and related systems for cranial reconstructive surgery. Since April, 2004, Mr. Andres has been a private consultant, doing business through John C. Andres, LLC, specializing in patent/business strategy development and execution. He also is a partner of Hawk Healthcare, LLC, which provides strategic transaction management to private individuals and companies. Since 2011, Mr. Andres has served as the Legal Compliance Officer of Electrocore, Inc., a medical device company.
In 2017, Mr. Andres joined the Longeviti Neuro Solutions, LLC Board of Directors which is developing cranial implant products for cranial reconstruction. In 2004, Mr. Andres helped found K2M, Inc. (KTWO) and from 2004 until 2010 served as a member of the Board of Directors of K2M, Inc. Prior to 2004, Mr. Andres held various legal and strategic business development positions at the Surgical Division of Tyco Healthcare Group, LLP, now Medtronic (NYSE: MDT) and its predecessor, United States Surgical Corporation. Before joining U.S. Surgical, Mr. Andres worked at the New York law firm of Morgan & Finnegan. He received his Associate of Applied Science degree from Rochester Institute of Technology, his Bachelor of Arts degree from Lehigh University and his Juris Doctor from Pace University School of Law. The Company believes Mr. Andres is qualified to serve as a director because of his extensive experience in patent and business strategy development and execution in the medical device industry.
Minnie Baylor-Henry, age 73, Director and Regulator Compliance Committee Chair since August 2019. Ms. Baylor-Henry has over 25 years of regulatory affairs experience. She is the President of B-Henry & Associates, LLC, a consulting firm that she founded to provide regulatory strategic support to life sciences companies. Prior to starting her consulting company, she held various executive level positions over a 15-year period at Johnson & Johnson (J&J). Before retiring from J&J in 2015, she was the Worldwide Vice President of Regulatory Affairs-Medical Devices. During her time at J&J, she also had served as the Vice President-Medical & Regulatory Affairs in the Over-the Counter Group, as well as Senior Director, Regulatory Affairs- Pharmaceuticals. Ms. Baylor-Henry also worked for Deloitte & Touche (2008-2010) as the National Director Regulatory Affairs- Life Sciences. Prior to joining the private sector, she worked for the US Food & Drug Administration (1991-1999) in
many roles, including serving as the Director of the Division of Drug, Marketing, Advertising & Communications and the FDA’s National Health Fraud Coordinator.
In 2018, Ms. Baylor-Henry joined the Board of Directors of scPharmaceuticals, a publicly-held company focused on developing technologies that enable subcutaneous administration of therapies and in 2019 the Board of Directors of PolarityTE, a publicly- held regenerative medicine company. Ms. Baylor-Henry received her pharmacy degree from Howard University’s College of Pharmacy and a law degree from Catholic University’s Columbus School of Law. The Company believes Ms. Baylor-Henry is qualified to serve as Director and Regulatory and Compliance Committee Chair because of her extensive experience in global and regulatory management and compliance.
COMMITTEES OF OUR BOARD OF DIRECTORS
We have a standing Audit Committee, Compensation Committee, and Governance and Nominating Committee and Regulatory Compliance Committee.
Audit Committee
The Audit Committee assists the Board in its general oversight of our financial reporting, internal controls, and audit functions, and is directly responsible for the appointment, compensation and oversight of the work of our independent registered public accounting firm. The Audit Committee reviews and discusses with management and our independent accountants the annual audited and quarterly financial statements (including the disclosures under "Management's“Management’s Discussion and Analysis of Financial Condition and Results of Operations")Operations” and matters required to be discussed by the applicable requirements of the PCAOB), reviews the integrity of the financial reporting processes, both internal and external, reviews the qualifications, performance and independence of our independent accountants, and prepares the Audit Committee Report included in its Annual Report on Form 10-K in accordance with rules and regulations of the Securities and Exchange Commission. The Audit Committee has the power to investigate any matter brought to its attention within the scope of its duties. It also has the authority to retain counsel and advisors to fulfill its responsibilities and duties. The Audit Committee also acts as a qualified legal compliance committee.
The meetings of the Committee are designed to facilitate and encourage communication among the Committee, the Company and the Company'sCompany’s independent auditor. The Committee discussed with the Company'sCompany’s Independent Auditor the overall scope and plans for their respective audits. The Committee meets with the independent auditor, with and without management present, to discuss the results of their examinations; their evaluations of the Company'sCompany’s internal controls; and the overall quality of the Company'sCompany’s financial reporting.
A copy of the Audit Committee Charter will be provided to any person without charge upon written request to the Company'sCompany’s address to the attention of the Secretary. A copy of the Audit Committee Charter is available in the Investor Relations section of our website at www.boviemed.com. Select the "Investor Relations" button.www.apyxmedical.com.
Governance and Nominating Committee
The Governance and Nominating Committee is responsible for matters relating to the corporate governance of our company and the nomination of members of the board and committees thereof. During 2016,2020, our Governance and Nominating Committee consisted of three independent members of the Board of Directors, John Andres who serves as Chairman,Chair, Lawrence J. Waldman and Michael Geraghty. The Governance and Nominating Committee meets as often as it determines necessary, but not less than once a year. During 2016, the Governance and Nominating Committee held two (2) meetings.
When considering whether directors and nominees have the experience, qualifications, attributes or skills, taken as a whole, to enable the Board of Directors to satisfy its oversight responsibilities effectively in light of the Company'sCompany’s business and structure, the
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Governance and Nominating Committee focused primarily on each person'sperson’s background and experience as reflected in the information discussed in each of the directors'directors’ individual biographies set forth above. We believe that our directors provide an appropriate mix of experience and skills relevant to the size and nature of our business. As more specifically described in such person'sperson’s individual biographies set forth above, our directors possess relevant and industry-specific experience and knowledge in the medical, engineering and business fields, as the case may be, which we believe enhances the Board'sBoard’s ability to oversee, evaluate and direct our overall corporate strategy. The Governance and Nominating Committee annually reviews and makes recommendations to the Board regarding the composition and size of the Board so that the Board consists of members with the proper expertise, skills, attributes, and personal and professional backgrounds needed by the Board, consistent with applicable regulatory requirements.
The Governance and Nominating Committee believes that all directors, including nominees, should possess the highest personal and professional ethics, integrity, and values, and be committed to representing the long-term interests of our stockholders. The Governance and Nominating Committee will consider criteria including the nominee'snominee’s current or recent experience as a senior executive officer, whether the nominee is independent, as that term is defined in existing independence requirements of the NYSE MKTThe NASDAQ Stock Market LLC and the Securities and Exchange Commission, the business, scientific or engineering experience currently desired on the Board, geography, the nominee'snominee’s industry experience, and the nominee'snominee’s general ability to enhance the overall composition of the Board.
The Governance and Nominating Committee does not have a formal policy on diversity; however, in recommending directors, the Board and the Committee consider the specific background and experience of the Board members and other personal attributes in an effort to provide a diverse mix of capabilities, contributions and viewpoints which the Board believes enables it to function effectively as the Board of Directors of a company with our size and nature of business.
If a Stockholder wishes to nominate a candidate to be considered for election as a director at the 20172022 Annual Meeting of Stockholders, he or she must submit nominations in accordance with the procedures set forth in "Stockholder“Stockholder Proposals For Next Annual Meeting."” If a Stockholder wishes simply to propose a candidate for consideration as a nominee by the Governance and Nominating Committee, he or she should submit any pertinent information regarding the candidate to the members of the
Governance and Nominating Committee of BovieApyx Medical Corporation, c/o Secretary, 4 Manhattanville5115 Ulmerton Road, Suite 106, Purchase, New York 10577.Clearwater, Florida 33760.
A copy of the Governance and Nominating Committee Charter will be provided to any person without charge upon written request to the Company'sCompany’s address to the attention of the Secretary. A copy of the Governance and Nominating Committee Charter is available www.boviemed.com. Selectin the "Investor Relations" button.Investor Relations section of our website at www.apyxmedical.com.
Compensation Committee
The Compensation Committee is responsible for overseeing our compensation and employee benefit plans (including those involving the issuance of our equity securities) and practices, including formulating, evaluating and approving the compensation of our executive officers and reviewing and recommending to the full Board of Directors the compensation of our Chief Executive Officer. During 2016,2020, our Compensation Committee consisted of four (4)three independent members of the Board of Directors, John Andres, Lawrence J. Waldman, CPA, Charles T. Orsatti,Michael Geraghty who served as our Chairman (who resigned as of December 31, 2016),Chair, John Andres and Scott Davidson (who resigned as of December 19, 2016). On December 18, 2017, Michael Geraghty was appointed to serve as a member and Chairman of the Compensation Committee effective upon Mr. Orsatti’s resignation.Lawrence J. Waldman. The Compensation Committee meets as often as it determines necessary, but not less than once a year. During 2016, the Compensation Committee held four (4) meetings.
A copy of the Compensation Committee Charter will be provided to any person without charge upon written request to the Company'sCompany’s address to the attention of the Secretary. A copy of the Compensation Committee Charter is available www.boviemed.com. Selectin the "Investor Relations" button.Investor Relations section of our website at www.apyxmedical.com.
Regulatory Compliance Committee
The Regulatory Compliance Committee, formed in the third quarter of 2019, is responsible for matters relating to the Company’s overall non-financial regulatory and compliance strategies and systems. Specifically, the Committee provides oversight of management’s efforts to comply with the requirements for a medical device company operating in a highly regulated environment with respect to healthcare compliance, product quality and safety, and other areas as directed by the Board. During 2020, our Regulatory Compliance Committee consisted of three independent members of the Board of Directors, Minnie Baylor-Henry who serves as Chair, John Andres and Craig Swandal. The Regulatory Compliance Committee meets as often as it determines necessary, but not less than once a year.
In carrying out its responsibilities, the Committee reviews and discusses with management the implementation and enforcement of policies, procedures, risk management and compliance programs related to the Company’s adherence with applicable laws
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and regulations in the areas of healthcare compliance, product quality and safety and regulatory affairs.
A copy of the Regulatory Compliance Committee Charter will be provided to any person without charge upon written request to the Company’s address to the attention of the Secretary. A copy of the Regulatory Compliance Committee Charter is available in the Investor Relations section of our website at www.apyxmedical.com.
The table below indicates the current membership of each committee and how many times the Board and each committee met and/or acted by written consent in 2016:2020:
| Board | Audit | Governance and Nominating | Compensation | Regulatory Compliance | ||||||||||||||||||||||||||||
| Andrew Makrides | Chair | |||||||||||||||||||||||||||||||
| Charles D. Goodwin | Member | |||||||||||||||||||||||||||||||
| John Andres | Vice Chair | Member | Chair | Member | Member | |||||||||||||||||||||||||||
| Michael Geraghty | Member | Member | Member | Chair | ||||||||||||||||||||||||||||
| Lawrence J. Waldman | Member | Chair (1) | Member | Member | ||||||||||||||||||||||||||||
| Craig Swandal | Member | Member | Member | |||||||||||||||||||||||||||||
| Minnie Baylor-Henry | Member | Chair | ||||||||||||||||||||||||||||||
| Number of Meetings | 9 | 4 | 1 | 1 | 11 | |||||||||||||||||||||||||||
| Board | Audit | Governance and Nominating | Compensation | |||||
| Andrew Makrides | Chairman | |||||||
| Robert L. Gershon | Member | |||||||
| J. Robert Saron | Member | |||||||
| John Andres | Member | Member | Chairman | Member | ||||
| Michael Geraghty | Member | Member | Member | Chairman | ||||
| Lawrence J. Waldman | Member | Chairman (1) | Member | Member | ||||
Charles T. Orsatti (2) | Former Member | Former Member | Former Chairman | |||||
Scott Davidson (3) | Former Member | Former Member | ||||||
| Number of Meetings | 10 | 4 | 2 | 4 | ||||
(1)Mr. Waldman has also been designated the Audit Committee’s financial expert as well as the Board’s Lead Independent Director.
Stockholder Communications
The Board of Directors provides a process by which Stockholders may communicate with the Board, including our independent directors. Stockholders who wish to communicate with the Board may do so by sending written communications addressed to any director or the entire Board of Directors of BovieApyx Medical Corporation, c/o Secretary, 4 Manhattanville5115 Ulmerton Road, Suite 106, Purchase, New York 10577.Clearwater, Florida 33760. All mail received at the above address that is addressed to the Board of Directors or any individual director will be relayed by the Company to the Board of Directors or such individual director. On a periodic basis, all such
communications will be compiled by the Secretary and submitted to the Board of Directors or the individual director to whom the communications are addressed.
Code of Ethics
A copy of the code of ethics, will be provided to any person without charge upon written request towhich expressly includes the Company's address to the attentionfiduciary responsibilities of the Secretary. A copyCEO and CFO, along with a summary of the code of ethicschanges made in 2021, is available on our website at www.boviemed.com. Select the "Investor Relations" button.https://apyxmedical.com/code-of-ethics-and-conduct/.
COMPENSATION DISCUSSION AND ANALYSIS
General Compensation Philosophy
The primary objective of our compensation program for employees, including our compensation program for executive officers, is to attract, retain and motivate qualified individuals and reward them in a manner that is fair to all stockholders. We strive to provide incentives for every employee that rewards them for their contribution to the Company.
The primary objective of our compensation program for employees, including our compensation program for executive officers, is to attract, retain and motivate qualified individuals and reward them in a manner that is fair to all stockholders. We strive to provide incentives for every employee that rewards them for their contribution to the Company.
Our compensation program is designed to be competitive with other employment opportunities and to align the interests of all employees, including executive officers, with the long-term interests of our stockholders. Historically, for our executive
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officers, we link a much higher percentage of total compensation to incentive compensation such as stock based compensation than we do for other employees.
With these objectives in mind, our Board has built executive and non-executive compensation programs that consist of three principal elements - base salary, performance bonuses and grants of stock options and/or shares of restricted stock.
To understand the competitiveness of compensation arrangements provided to our named executive officers, in 2014 the Compensation Committee engaged Pearl Meyer & Partners to perform a competitive assessment of base salaries, bonuses for on-target performance and grants of equity incentives. In 2016,2018 and again in 2019, Pearl Meyer & Partners updated the competitive frame of reference for the study to consist of the following group of pre-selected companies that were of comparable size and operated in our industry category.
| Restoration Robotics, Inc. | ||||||||
| Cutera, Inc. | Misonix, Inc. | Sensus Healthcare, Inc. | ||||||
| Ekso Bionics Holdings, Inc. | ||||||||
| Utah Medical Products Inc. | ||||||||
| Nuvectra Corporation | Viveve Medical, Inc. | |||||||
| IRadimed Corporation | OrthoPediatrics Corp. | |||||||
In addition to the peer group, Pearl Meyer referenced industry-specific, size-adjusted market survey data where appropriate.
The results of the survey confirmed that, consistent with our desired philosophy, our compensation arrangements were competitive with the marketplace, with some variation by individual.
Compensation Program
Base Salary
We pay base salaries to our Named Executive Officers (as defined below) in order to provide a consistent, minimum level of pay that sustained individual performance warrants. We also believe that a competitive annual base salary is important to attract and retain an appropriate caliber of talent for each position over time.
The annual base salaries of our Named Executive Officers are determined by our Compensation Committee and approved by the Board of Directors. All salary decisions are based on each Named Executive Officer’s level of responsibility, experience and recent and past performance, as determined by the Compensation Committee. The Compensation Committee benchmarks base salaries using a major independent consulting firm and using their recommendations and other information the Committee evaluates and establishes the base compensation for our named executives.
| Name | Title | Base Salary 2016 | ||||
| Robert L. Gershon | Chief Executive Officer and Director | $ | 366 | |||
| Andrew Makrides | Executive Chairman of the Board (1) | $ | 216 | |||
| Jay D. Ewers | Chief Financial Officer, Treasurer and Secretary | $ | 235 | |||
| J. Robert Saron | President, Chief Sales and Marketing Officer and Director | $ | 319 | |||
| Moshe Citronowicz | Senior Vice President | $ | 214 | |||
| Jack McCarthy | Chief Commercialization Officer | $ | 287 | |||
| Base Salary 2020 | ||||||||
| Charles D. Goodwin | Chief Executive Officer and Director | $ | 450,000 | |||||
| Tara Semb | Chief Financial Officer, Treasurer and Secretary | 328,000 | ||||||
| Todd Hornsby | Executive Vice President | 347,000 | ||||||
| Moshe Citronowicz | Senior Vice President | 299,000 | ||||||
Performance Bonus
The second component of executive compensation is performance bonuses which are earned when defined metrics are achieved.
For 2016,2020, the Company established a combination of financial, operational and personal objectives as the broad criteria that would determine annual performance bonus amounts for the year. As a result of COVID-19, the Compensation Committee, in consultation with Pearl Meyer, revised the financial portion of these objectives to non-financial objectives that correlate with
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| (In millions) | Threshold | Target | Achievement | Overall Weight | Achievement | Calculation | ||||||||||||
| J Plasma | 2.3 | 3.1 | 3.5 | 35 | % | 150 | % | 53 | % | |||||||||
| Total Revenue Excluding J-Plasma | 28.0 | 32.0 | 33.0 | 20 | % | 125 | % | 25 | % | |||||||||
| Operating Loss | (4.1 | ) | (3.7 | ) | (3.7 | ) | 20 | % | 100 | % | 20 | % | ||||||
| Total Cash Balance | 5.0 | 6.6 | 14.5 | 10 | % | 200 | % | 20 | % | |||||||||
| MBO | 1.0 | 1.0 | 1.0 | 15 | % | 100 | % | 15 | % | |||||||||
| Total | 100 | % | 133 | % | ||||||||||||||
After careful review and consideration of the revised measures that comprise the 20162020 bonus, the Compensation Committee approved the following performance bonuses:bonuses for the named executive officers:
| Name | Bonus | |||||||
| Charles D. Goodwin | $ | 168,750 | ||||||
| Moshe Citronowicz | 44,850 | |||||||
| Todd Hornsby | 86,750 | |||||||
| Tara Semb | 73,800 | |||||||
| Total | $ | 374,150 | ||||||
| Name | Bonus | |||
| Robert L. Gershon | $ | 243,224 | ||
| Andrew Makrides | $ | 100,322 | ||
| Jay D. Ewers | $ | 109,392 | ||
| J. Robert Saron | $ | 148,456 | ||
| Moshe Citronowicz | $ | 99,612 | ||
| Jack McCarthy | $ | 133,773 | ||
| Total | $ | 834,779 | ||
Stock Options
The third component of executive compensation is equity grants which have mainly come in the form of stock options. We believe that equity ownership in our Company is important to provide our Named Executive Officers and key employees with long-term incentives to better align interests of executives with the interests of stockholders and build value for our stockholders. In addition, the equity compensation is designed to attract and retain the executive management team. Stock options have value only if the stock price increases over time and, therefore, provide executives with an incentive to build Bovie’sApyx’s value. This characteristic ensures that the Named Executive Officers and key employees have a meaningful portion of their compensation tied to future stock price increases and rewards management for long-term strategic planning through the resulting enhancement of the stock price.
Stock option awards to Named Executive Officers and key employees are entirely discretionary. The CEO recommends to the Compensation Committee awards for Named Executive Officersindividuals other than himself. The Compensation Committee considers this recommendation along with the prior contribution of these individuals and their expected future contributions to our growth. The Committee formulates and presents its recommended allocation of stock option awards to the Board of Directors for approval. The Compensation Committee then would make an independent determination on CEO stock option awards, again formulating and presenting its recommendation for the allocation of stock option awards to the Board of Directors for approval. The Board of Directors approves, rejects, or, if necessary, modifies the Committee’s recommendations.
Perquisites and Other Benefits
Our Named Executive Officers are eligible for the same health and welfare programs and benefits as the rest of our employees in their respective locations. In addition, our CEO, Chairman of the Board, President and Chief Sales and Marketing Officer, Chief Financial Officer, Chief Commercialization Officer and Senior Vice President each receive an automobile allowance.
Our Named Executive Officers are entitled to participate in and receive employer contributions to Bovie’sApyx's 401(k) Savings Plan. For more information on employer contributions to the 401(k) Savings Plan see the Summary Compensation Table and its footnotes.
Tax and Accounting Considerations
Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”), places a limit of $1.0 million on the amount of compensation that we may deduct as a business expense in any year with respect to each of our most highly paid executives unless, among other things, such compensation is performance-based and has been approved by stockholders. The non-performance-based compensation paid to our executive officers for the 20162020 fiscal year did not exceed the $1.0 million limit per executive officer. Accounting considerations also play an important role in the design of our executive compensation program. Accounting rules, such as FASB ASC Topic 718-10-10, Share-Based Payment, require us to expense the cost of our stock option grants which reduces the amount of our reported profits. Because of option expensing and the impact of dilution on our stockholders, we pay close attention to the number and value of the shares underlying stock options we grant.
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Summary Compensation Table
The following table sets forth the compensation paid to each of our chief executive officer, chief financial officer, and other highly compensated officers, our "Named Executive Officers" with respect to for the Company's fiscalthree years ended December 31, 2014, December 31, 2015,2020 and December 31, 2016. The2019 for services to our Company has no executive officers other than the "Namedin all capacities:
| Name and Principal Position | Year | Salary | Bonus ($) | Stock Awards ($) | Option Awards ($) (1) | Non-Equity Incentive Plan Compensation Earnings ($) | Change in Pension Value and Nonqualified Deferred Compensation Earnings ($) | All Other Compensation ($) (2) | Total ($) | |||||||||||||||||||||||||||||||||||||||||||||||
| Charles D. Goodwin | 2020 | $ | 450,000 | $ | 168,750 | $ | — | 1,195,074 | $ | — | $ | — | $ | 19,056 | $ | 1,832,880 | ||||||||||||||||||||||||||||||||||||||||
| CEO and Director | 2019 | $ | 450,000 | $ | 344,250 | $ | — | 1,135,160 | $ | — | $ | — | $ | 15,848 | $ | 1,945,258 | ||||||||||||||||||||||||||||||||||||||||
| Moshe Citronowicz | 2020 | $ | 299,000 | $ | 44,850 | $ | — | 354,096 | $ | — | $ | — | $ | 22,402 | $ | 720,348 | ||||||||||||||||||||||||||||||||||||||||
| Senior Vice President | 2019 | $ | 270,000 | $ | 82,620 | $ | — | 346,320 | $ | — | $ | — | $ | 22,415 | $ | 721,355 | ||||||||||||||||||||||||||||||||||||||||
| Todd Hornsby | 2020 | $ | 347,000 | $ | 86,750 | $ | — | 491,800 | $ | — | $ | — | $ | 28,722 | $ | 954,272 | ||||||||||||||||||||||||||||||||||||||||
| Executive Vice President(*) | 2019 | $ | 330,000 | $ | 168,300 | $ | — | 365,560 | $ | — | $ | — | $ | 28,400 | $ | 892,260 | ||||||||||||||||||||||||||||||||||||||||
| Tara Semb(**) | 2020 | $ | 328,000 | $ | 73,800 | $ | — | 472,128 | $ | — | $ | — | $ | 9,257 | $ | 883,185 | ||||||||||||||||||||||||||||||||||||||||
| CFO, Treasurer and Secretary | 2019 | $ | 271,000 | $ | 110,265 | $ | — | 312,000 | $ | — | $ | — | $ | 5,922 | $ | 699,187 | ||||||||||||||||||||||||||||||||||||||||
*Assumed role as Executive Officers."
| Summary Compensation Table | ||||||||||||||||||||||||||||||||||
| Name and Principal Position | Year | Salary | Bonus ($) | Stock Awards ($) | Option Awards ($) (1) | Non-Equity Incentive Plan Compensation Earnings ($) | Change in Pension Value and Nonqualified Deferred Compensation Earnings ($) | All Other Compensation ($) (3) | Total ($) | |||||||||||||||||||||||||
| Robert L. Gershon | 2016 | $ | 365,750 | $ | 243,224 | $ | — | $ | 65,625 | $ | — | $ | — | $ | 30,201 | $ | 704,800 | |||||||||||||||||
| CEO and Director | 2015 | $ | 350,000 | $ | 180,000 | $ | — | $ | — | $ | — | $ | — | $ | 30,201 | $ | 560,201 | |||||||||||||||||
| 2014 | $ | 350,000 | $ | 175,500 | $ | — | $ | — | $ | — | $ | — | $ | 19,720 | $ | 545,220 | ||||||||||||||||||
| J. Robert Saron | 2016 | $ | 318,917 | $ | 148,456 | $ | — | $ | 32,375 | $ | — | $ | — | $ | 24,383 | $ | 524,131 | |||||||||||||||||
| President, Chief Sales & | 2015 | $ | 305,184 | $ | 79,543 | $ | — | $ | — | $ | — | $ | — | $ | 24,383 | $ | 409,110 | |||||||||||||||||
| Marketing Officer & Director | 2014 | $ | 317,949 | $ | 79,917 | $ | — | $ | — | $ | — | $ | — | $ | 16,317 | $ | 414,183 | |||||||||||||||||
| Jack McCarthy | 2016 | $ | 287,375 | $ | 133,773 | $ | — | $ | 32,375 | $ | — | $ | — | $ | 29,922 | $ | 483,445 | |||||||||||||||||
| Chief Commercialization | 2015 | $ | 275,000 | $ | 74,500 | $ | — | $ | — | $ | — | $ | — | $ | 29,922 | $ | 379,422 | |||||||||||||||||
| Officer | 2014 | $ | 201,469 | $ | 100,500 | $ | — | $ | 336,540 | $ | — | $ | — | $ | 12,420 | $ | 650,929 | |||||||||||||||||
Andrew Makrides (4) | 2016 | $ | 215,515 | $ | 100,322 | $ | — | $ | — | $ | — | $ | — | $ | 18,621 | $ | 334,458 | |||||||||||||||||
| Executive Chairman | 2015 | $ | 238,620 | $ | 56,318 | $ | — | $ | — | $ | — | $ | — | $ | 18,621 | $ | 313,559 | |||||||||||||||||
| of the Board | 2014 | $ | 238,620 | $ | 56,582 | $ | — | $ | — | $ | — | $ | — | $ | 18,574 | $ | 313,776 | |||||||||||||||||
| Jay D. Ewers* | 2016 | $ | 235,000 | $ | 109,392 | $ | — | $ | — | $ | — | $ | — | $ | 10,608 | $ | 355,000 | |||||||||||||||||
| Chief Financial Officer, | 2015 | $ | 171,456 | $ | 65,255 | $ | — | $ | 70,655 | (2) | $ | — | $ | — | $ | 32,185 | $ | 339,549 | ||||||||||||||||
| Treasurer and Secretary | 2014 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
| Moshe Citronowicz | 2016 | $ | 213,990 | $ | 99,612 | $ | — | $ | 32,375 | $ | — | $ | — | $ | 22,066 | $ | 368,043 | |||||||||||||||||
| Senior Vice President | 2015 | $ | 204,775 | $ | 53,537 | $ | — | $ | — | $ | — | $ | — | $ | 22,066 | $ | 280,378 | |||||||||||||||||
| 2014 | $ | 229,978 | $ | 53,788 | $ | — | $ | — | $ | — | $ | — | $ | 16,437 | $ | 300,203 | ||||||||||||||||||
(1)These columns represent the grant date fair value of the awards as calculated in accordance with FASB ASC 718 (Stock Compensation).
| R.L. Gershon | J.R. Saron | J.J. McCarthy | A. Makrides | J.D. Ewers | M. Citronowicz | |||||||||||||||||||
| Car Allowance | $ | 6,000 | $ | 6,000 | $ | 6,000 | $ | 6,000 | $ | 6,000 | $ | 6,000 | ||||||||||||
| Life insurance premiums | 512 | 512 | 512 | 512 | 512 | 512 | ||||||||||||||||||
| Health insurance premiums | 17,064 | 10,828 | 17,064 | 9,125 | — | 10,828 | ||||||||||||||||||
| Employer 401(k) contribution | 6,625 | 7,043 | 6,346 | 2,984 | 4,096 | 4,726 | ||||||||||||||||||
| Total | $ | 30,201 | $ | 24,383 | $ | 29,922 | $ | 18,621 | $ | 10,608 | $ | 22,066 | ||||||||||||
(2)The amounts for 2020 include compensation under the following plans and programs:
| C.D. Goodwin | M. Citronowicz | T. Hornsby | T. Semb | |||||||||||||||||||||||||||||||||||
| Long-term disability premiums | 186 | 186 | 186 | 186 | ||||||||||||||||||||||||||||||||||
| Health insurance premiums | 10,320 | 13,931 | 19,925 | — | ||||||||||||||||||||||||||||||||||
| Employer 401(k) contribution | 8,550 | 8,285 | 8,611 | 9,071 | ||||||||||||||||||||||||||||||||||
| Total | $ | 19,056 | $ | 22,402 | $ | 28,722 | $ | 9,257 | ||||||||||||||||||||||||||||||
Amounts in the table above are pro-rated where applicable.
Employment Agreements and Potential Payments Upon Termination or Change in Control
At August 7, 2017,December 31, 2020, we were obligated under fivefour employment agreements:agreements.
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| Name | Contract Expiration Date | |||||||
N/A(1) | ||||||||
N/A(1) | ||||||||
| Todd Hornsby | N/A(1) | |||||||
| Moshe Citronowicz | December | |||||||
(1)Employment contracts provide for the Executives to remain employed by the Company until such time as their employment is terminated pursuant to the terms of their Employment Agreement.
Charles D. Goodwin Employment Agreement
On September 17, 2020, the Company entered into an Amended and Restated Employment Agreement, effective as followsof September 17, 2020, with Charles D. Goodwin II, the Company’s President and Chief Executive Officer (the “Goodwin Agreement”). The Goodwin Agreement amends and restates Mr. Goodwin’s original employment agreement, dated as of December 31, 2016:15, 2017, in its entirety. The term of Mr. Goodwin’s employment under the Goodwin Agreement commenced as of the effective date thereof and shall continue until terminated in accordance with the terms of the Goodwin Agreement. Under the Goodwin Agreement, Mr. Goodwin will receive an initial annual base salary of $450,000, which shall be reviewed from time to time and may be increased, but not decreased, by the Compensation Committee of the Board of Directors (the “Committee”) in its sole and exclusive discretion. Mr. Goodwin shall be entitled to participate in (i) any bonus or incentive plan available to the Company’s executives generally, on such terms as the Committee may determine in its discretion, and (ii) the equity-based incentive plans of the Company, pursuant to which he may receive awards thereunder, as determined by the Company’s Board of Directors in its sole discretion from time to time and subject to the terms and conditions of such plans and any applicable award agreement.
In the event Mr. Goodwin’s employment is terminated as a result of death or disability, Mr. Goodwin or his estate shall be entitled to receive (i) any unpaid base salary earned and accrued prior to the date of termination, (ii) reimbursement for expenses incurred prior to the date of termination, (iii) a pro rata bonus for the year of termination, and, (iv) if Mr. Goodwin is eligible for and elects continuation benefits under COBRA, the Company will pay the employer portion of the COBRA coverage premium for the shorter of (x) the 12-month period following the date of termination, or (y) the time at which Mr. Goodwin becomes eligible for medical and dental benefits through another employer. In addition, Mr. Goodwin’s outstanding option grants shall continue to be treated in accordance with the terms of the applicable plan and award agreement, provided that the portion of Mr. Goodwin’s options (i) that were exercisable as of the effective date of the Goodwin Agreement and (ii) that would have become exercisable on the next anniversary of the effective date following the date of termination shall become and remain exercisable for a period of 12 months following the date of termination.
In the event Mr. Goodwin’s employment is terminated by the Company for cause or by Mr. Goodwin without good reason, Mr. Goodwin shall be entitled to receive any unpaid base salary earned and accrued prior to the date of termination, and reimbursement for expenses incurred prior to the date of termination. In addition, in the event Mr. Goodwin’s employment is terminated by Mr. Goodwin without good reason, Mr. Goodwin’s stock option grants shall continue to be treated in accordance with the terms of the applicable plan and award agreement, provided that the portion of Mr. Goodwin’s options which were exercisable as of the date of termination shall remain exercisable for a period of 3 months following the date of termination.
In the event Mr. Goodwin’s employment is terminated by Mr. Goodwin for good reason, by the Company without cause, or in connection with a change of control (as defined in the Goodwin Agreement), Mr. Goodwin shall be entitled to receive (i) any unpaid base salary and other benefits earned and accrued prior to the date of termination, (ii) reimbursement for expenses incurred prior to the date of termination, (iii) a pro rata bonus for the year of termination, (iv) continued payment of his base salary for the twelve (12) month period following the date of termination, and (v) if Mr. Goodwin is eligible for and elects continuation benefits under COBRA, the Company will pay the employer portion of the COBRA coverage premium for the shorter of (x) the 12-month period following the date of termination, or (y) the time at which Mr. Goodwin becomes eligible for medical and dental benefits through another employer. In addition, Mr. Goodwin’s outstanding option grants shall continue to be treated in accordance with the terms of the applicable plan and award agreement, provided that the portion of Mr. Goodwin’s options that (i) were exercisable as of the date of termination and (ii) would have become exercisable on the next anniversary of the effective date following the date of termination, shall become and remain exercisable for a period of 12 months following the date of termination.
The Goodwin Agreement contains customary non-competition, non-solicitation, and confidentiality provisions in favor of the Company.
Tara Semb Employment Agreement
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| (In thousands) | |||
| 2017 | $ | 1,453 | |
| 2018 | — | ||
| Total | $ | 1,453 | |
In the event Ms. Semb’s employment is terminated as a result of death or disability, Ms. Semb or her estate shall be entitled to receive (i) any unpaid base salary earned and accrued prior to the date of termination, (ii) reimbursement for expenses incurred prior to the date of termination, (iii) a pro rata bonus for the year of termination, and, (iv) if Ms. Semb is eligible for and elects continuation benefits under COBRA, the Company will pay the employer portion of the COBRA coverage premium for the shorter of (x) the 12-month period following the date of termination, or (y) the time at which Ms. Semb becomes eligible for medical and dental benefits through another employer. In addition, Ms. Semb’s outstanding option grants shall continue to be treated in accordance with the terms of the applicable plan and award agreement, provided that the portion of Ms. Semb’s options (i) that were exercisable as of the effective date of the Semb Agreement and (ii) that would have become exercisable on the next anniversary of the effective date following the date of termination shall become and remain exercisable for a period of 12 months following the date of termination.
In the event Ms. Semb’s employment is terminated for by the Company for cause or by Ms. Semb without good reason, Ms. Semb shall be entitled to receive any unpaid base salary earned and accrued prior to the date of termination, and reimbursement for expenses incurred prior to the date of termination. In addition, in the event Ms. Semb’s employment is terminated by Ms. Semb without good reason, Ms. Semb’s stock option grants shall continue to be treated in accordance with the terms of the applicable plan and award agreement, provided that the portion of Ms. Semb’s options which were exercisable as of the date of termination shall remain exercisable for a period of 3 months following the date of termination.
In the event Ms. Semb’s employment is terminated by Ms. Semb for good reason, by the Company without cause, or in connection with a change of control (as defined in the Semb Agreement), Ms. Semb shall be entitled to receive (i) any unpaid base salary and other benefits earned and accrued prior to the date of termination, (ii) reimbursement for expenses incurred prior to the date of termination, (iii) a pro rata bonus for the year of termination, (iv) continued payment of her base salary for the twelve (12) month period following the date of termination, and (v) if Ms. Semb is eligible for and elects continuation benefits under COBRA, the Company will pay the employer portion of the COBRA coverage premium for the shorter of (x) the 12-month period following the date of termination, or (y) the time at which Ms. Semb becomes eligible for medical and dental benefits through another employer. In addition, Ms. Semb’s outstanding option grants shall continue to be treated in accordance with the terms of the applicable plan and award agreement, provided that the portion of Ms. Semb’s options that (i) were exercisable as of the date of termination and (ii) would have become exercisable on the next anniversary of the effective date following the date of termination, shall become and remain exercisable for a period of 12 months following the date of termination.
The Semb Agreement contains customary non-competition, non-solicitation, and confidentiality provisions in favor of the Company.
Todd Hornsby Employment contracts,Agreement
On September 17, 2020, the Company entered into an Amended and Restated Employment Agreement, effective as of September 17, 2020, with Todd Hornsby, the Company’s Executive Vice President (the “Hornsby Agreement”). The Hornsby Agreement amends and restates Mr. Hornsby’s original employment agreement, dated as of January 1, 2018, in its entirety. The term of Mr. Hornsby’s employment under the Hornsby Agreement commenced as of the effective date thereof and shall continue until terminated in accordance with the terms of the Hornsby Agreement. Under the Hornsby Agreement, Mr. Hornsby will receive an initial annual base salary of $347,000, which shall be reviewed from time to time and may be increased, but not decreased, by the Committee in its sole and exclusive discretion. Mr. Hornsby shall be entitled to participate in (i) any bonus or incentive plan available to the Company’s executives generally, on such terms as the Committee may determine in its discretion, and (ii) the equity-based incentive plans of the Company, pursuant to which he may receive awards thereunder, as determined by the Company’s Board of Directors in its sole discretion from time to time and subject to the terms and conditions of such plans and any applicable award agreement.
In the event Mr. Hornsby’s employment is terminated as a result of death or disability, Mr. Hornsby or his estate shall be entitled to receive (i) any unpaid base salary earned and accrued prior to the date of termination, (ii) reimbursement for expenses incurred prior to the date of termination, (iii) a pro rata bonus for the year of termination, and, (iv) if Mr. Hornsby is
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eligible for and elects continuation benefits under COBRA, the Company will pay the employer portion of the COBRA coverage premium for the shorter of (x) the 12-month period following the date of termination, or (y) the time at which Mr. Hornsby becomes eligible for medical and dental benefits through another employer. In addition, Mr. Hornsby’s outstanding option grants shall continue to be treated in accordance with the terms of the applicable plan and award agreement, provided that the portion of Mr. Hornsby’s options (i) that were exercisable as of the effective date of the Hornsby Agreement and (ii) that would have become exercisable on the next anniversary of the effective date following the date of termination shall become and remain exercisable for a period of 12 months following the date of termination.
In the event Mr. Hornsby’s employment is terminated by the Company for cause or by Mr. Hornsby without good reason, Mr. Hornsby shall be entitled to receive any unpaid base salary earned and accrued prior to the date of termination, and reimbursement for expenses incurred prior to the date of termination. In addition, in the event Mr. Hornsby’s employment is terminated by Mr. Hornsby without good reason, Mr. Hornsby’s stock option grants shall continue to be treated in accordance with the terms of the applicable plan and award agreement, provided that the portion of Mr. Hornsby’s options which were exercisable as of the date of termination shall remain exercisable for a period of 3 months following the date of termination.
In the event Mr. Hornsby’s employment is terminated by Mr. Hornsby for good reason, by the Company without cause, or in connection with a change of control (as defined in the Hornsby Agreement), Mr. Hornsby shall be entitled to receive (i) any unpaid base salary and other thanbenefits earned and accrued prior to the date of termination, (ii) reimbursement for Messrs. Gershon, McCarthyexpenses incurred prior to the date of termination, (iii) a pro rata bonus for the year of termination, (iv) continued payment of his base salary for the twelve (12) month period following the date of termination, and Ewers, contain(v) if Mr. Hornsby is eligible for and elects continuation benefits under COBRA, the Company will pay the employer portion of the COBRA coverage premium for the shorter of (x) the 12-month period following the date of termination, or (y) the time at which Mr. Hornsby becomes eligible for medical and dental benefits through another employer. In addition, Mr. Hornsby’s outstanding option grants shall continue to be treated in accordance with the terms of the applicable plan and award agreement, provided that the portion of Mr. Hornsby’s options that (i) were exercisable as of the date of termination and (ii) would have become exercisable on the next anniversary of the effective date following the date of termination, shall become and remain exercisable for a period of 12 months following the date of termination.
The Hornsby Agreement contains customary non-competition, non-solicitation, and confidentiality provisions in favor of the Company.
Moshe Citronowicz Employment Agreement
Mr. Citronowicz employment agreement contains an automatic extension for a period of one year after the initial term unless we provide the executivesMr. Citronowicz with sixty (60)appropriate 60 days written notice pursuant to the contracts. Thehis contract. Mr. Citronowicz’s employment agreements provide,agreement provides, among other things, that the executiveMr. Citronowicz may be terminated as follows:
a.Upon the death of the Mr. Citronowicz, in which case Mr. Citronowicz’s estate shall be paid the basic annual compensation due to Mr. Citronowicz pro-rated through the date of death.
b.By the resignation of Mr. Citronowicz at any time upon at least thirty (30) days prior written notice to Apyx in which case Apyx shall be obligated to pay Mr. Citronowicz the basic annual compensation due him pro-rated to the effective date of termination.
c.By Apyx, “for cause” if during the term of the employment agreement Mr. Citronowicz violates the non-competition provisions of his employment agreement, or is found guilty in a court of law of any crime of moral turpitude in which case the contract would be terminated and provisions for future compensation forfeited.
d.By Apyx, without cause, with the majority approval of the Board of Directors, for Mr. Citronowicz at any time upon at least thirty (30) days prior written notice to Mr. Citronowicz. In this case Apyx shall be obligated to pay Mr. Citronowicz compensation in effect at such time, including all bonuses, accrued or prorated and expenses up to the date of termination. Thereafter, Apyx shall pay Mr. Citronowicz three times the salary in effect at the time of termination payable in one lump sum.
e.If Apyx fails to meet its obligations to Mr. Citronowicz on a timely basis, or if there is a change in the control of Apyx, the executive may elect to terminate Mr. Citronowicz’s employment agreement. Upon any such termination or breach of any of its obligations under the employment agreement, Apyx shall pay Mr. Citronowicz a lump sum severance equal to three times the annual salary and bonus in effect the month preceding such termination or breach as well as any other sums which may be due under the terms of the employment agreement up to the date of termination.
There are no other employment contracts that have non-cancelable terms in excess of one year.
Outstanding Equity Awards
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The following table presents information with respect to each unexercised stock option held by our Named Executive Officers as of December 31, 2016:2020:
| Name | # of Securities Underlying Unexercised Options (# Exercisable) | # of Securities Underlying Unexercised Options (# Unexercisable) | Weighted Average Option Exercise Price ($/Sh) | Option Expiration Range After Grant Date | ||||||||||
| Andrew Makrides | 24,000 | 6,000 | $ | 2.54 | 7/12/2022 | |||||||||
| J. Robert Saron | 18,000 | 49,000 | $ | 2.13 | 7/12/2022 | - | 3/16/2026 | |||||||
| Moshe Citronowicz | 18,000 | 49,000 | $ | 2.13 | 7/12/2022 | - | 3/16/2026 | |||||||
| Robert L. Gershon | 375,000 | 450,000 | $ | 2.06 | 12/13/2023 | - | 3/16/2026 | |||||||
| Jack McCarthy | 106,500 | 143,500 | $ | 3.59 | 3/31/2024 | - | 3/16/2026 | |||||||
| Jay D. Ewers | 25,000 | 75,000 | $ | 2.66 | 6/30/2024 | - | 10/14/2025 | |||||||
| Name (a) | Fees Earned Or Paid In Cash ($) (b) | Stock Awards ($) (c) | Option Awards *** ($) (d)(1) | Non-Equity Incentive Plan Compensation ($) (e) | Change in Pension Value and Nonqualified Deferred Compensation Earnings ($) (I) | All Other Compensation ($) (g) | Total ($) (h) | |||||||||||||||||||||
| Lawrence J. Waldman | $ | 70,000 | $ | — | $ | 10,906 | $ | — | $ | — | $ | — | $ | 80,906 | ||||||||||||||
| Michael Geraghty | $ | 27,500 | $ | — | $ | 10,906 | $ | — | $ | — | $ | — | $ | 38,406 | ||||||||||||||
| John Andres | $ | 52,750 | $ | — | $ | 10,906 | $ | — | $ | — | $ | — | $ | 63,656 | ||||||||||||||
| Charles T. Orsatti | $ | 51,250 | $ | — | $ | 10,906 | $ | — | $ | — | $ | — | $ | 62,156 | ||||||||||||||
| Scott Davidson | $ | 18,250 | $ | — | $ | 10,906 | $ | — | $ | — | $ | — | $ | 29,156 | ||||||||||||||
| Name | # of Securities Underlying Unexercised Options (# Exercisable) | # of Securities Underlying Unexercised Options (# Unexercisable) | Weighted Average Option Exercise Price ($/Sh) | Option Expiration Range After Grant Date | ||||||||||||||||||||||||||||||||||
| Charles D. Goodwin | 1,078,667 | 400,333 | $ | 4.63 | 12/15/2027 | - | 1/15/2030 | |||||||||||||||||||||||||||||||
| Moshe Citronowicz | 143,500 | 137,500 | $ | 5.44 | 7/12/2022 | - | 1/15/2030 | |||||||||||||||||||||||||||||||
| Todd Hornsby | 179,417 | 176,583 | $ | 5.50 | 8/27/2024 | - | 1/15/2030 | |||||||||||||||||||||||||||||||
| Tara Semb | 21,667 | 139,333 | $ | 8.07 | 1/9/2029 | - | 1/15/2030 | |||||||||||||||||||||||||||||||
*** These columns represent the grant date fair value of the awards as calculated in accordance with FASB ASC 718 (Stock Compensation).
In 2003, the Board of Directors adopted, and our stockholders approved Bovie’sApyx's 2003 Executive and Employee Stock Option Plan covering a total of 1,200,000 shares of common stock issuable upon exercise of options to be granted under the Plan.
On October 30, 2007, our stockholders approved, and the Board of Directors adopted an amendment to the 2003 Executive and Employee Stock Option Plan to increase the maximum aggregate number of shares of common stock reserved for issuance under the 2003 Plan from 1.2 million shares (already reserved against outstanding options) to 1.7 million shares, or an increase of 500,000 shares of common stock for future issuance pursuant to the terms of the plan. Except for the increase in the number of shares covered by the plan, the plan remains otherwise unchanged from its present status. In 2011, the Board of Directors granted 25,000 options to purchase a like number of shares of common stock.
In July of 2012, theour stockholders approved the 2012 Executive and Employee Stock OptionShare Incentive Plan covering a total of 750,000 shares of common stock issuable upon exercise of options to be granted under the plan. At December 31, 20162020 approximately 37,000 remain60,000 are available to be issued in this plan.
In July of 2015, theour stockholders approved the 2015 Executive and Employee Stock Option Plan covering a total of 2,000,000 shares of common stock issuable upon exercise of options to be granted under the plan. At December 31, 20162020 approximately 693,078 remain230,000 are available to be issued in this plan.
In August 2017, our stockholders approved the 2017 Executive and Employee Stock Option Plan covering a total of 3,000,000 shares of common stock issuable upon exercise of options to be granted under the plan. At December 31, 2020 approximately 70,000 are available to be issued in this plan.
In August 2019, our stockholders approved the 2019 Share Incentive Plan covering a total of 2,000,000 shares of common stock issuable upon exercise of options to be granted under the plan. At December 31, 2020, all 2,000,000 are available to be issued in this plan.
There have been no changes in the pricing of any options previously or currently awarded.
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Compensation of Non-Employee Directors
The following is a table showing the director compensation for the year ended December 31, 2020:
| Name (a) | Fees Earned Or Paid in Cash ($) (b) | Stock Awards ($) (c) | Option Awards *** ($) (d) (1) | Non-Equity Incentive Plan Compensation ($) (e) | Change in Pension Value and Nonqualified Deferred Compensation Earnings ($) | All Other Compensation ($) (g) | Total ($) (h) | ||||||||||||||||
| Andrew Makrides | $ | 65,000 | $ | — | $ | 51,901 | $ | — | $ | — | $ | — | $ | 116,901 | |||||||||
| Lawrence J. Waldman | 90,500 | — | 51,901 | — | — | — | 142,401 | ||||||||||||||||
| Michael Geraghty | 55,000 | — | 51,901 | — | — | — | 106,901 | ||||||||||||||||
| John Andres | 85,000 | — | 51,901 | — | — | — | 136,901 | ||||||||||||||||
| Craig Swandal | 47,500 | — | 51,901 | — | — | — | 99,401 | ||||||||||||||||
| Minnie Baylor-Henry | 50,000 | — | 51,901 | — | — | — | 101,901 | ||||||||||||||||
*** These columns represent the grant date fair value of the awards as calculated in accordance with FASB ASC 718 (Stock Compensation).
In 2020, our Board of Directors consisted of Charles D. Goodwin, Andrew Makrides, John Andres, Lawrence J. Waldman, Michael Geraghty, Craig Swandal, and Minnie Baylor-Henry.
On August 1, 2019, the Board approved the following compensation arrangement for the Corporation’s non-employee directors:
Base Annual Director Fee
•the base annual cash compensation to be paid to each of the non-employee members of the Board shall be $35,000 per year.
Non-Executive Chair and Vice Chair
•in addition to the foregoing, the additional cash compensation to be paid to the Non-executive Chair of the Board shall be $30,000.
•in addition to the foregoing, the additional cash compensation to be paid to the Vice Chair of the Board shall be $27,500.
Lead Independent Director
•in addition to the foregoing, the additional cash compensation to be paid to the Lead Independent Director of the Board shall be $15,000.
Audit Committee
•in addition to the foregoing, the annual cash compensation to be paid to the Chair of the Audit Committee of the Board shall be $36,000 per year.
•in addition to the foregoing, the annual cash compensation to be paid to each of the members of the Audit Committee of the Board (other than Chair of the Audit Committee) shall be $7,500.
Compensation Committee
•in addition to the foregoing, the annual cash compensation to be paid to the Chair of the Compensation Committee of the Board shall be $10,000.
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•in addition to the foregoing, the annual cash compensation to be paid to each of the members of the Compensation Committee of the Board (other than the Chair of the Compensation Committee) shall be $5,000.
Nomination and Governance Committee
•in addition to the foregoing, the annual cash compensation to be paid to the Chair of the Nominating and Governance Committee of the Board shall be $5,000.
•in addition to the foregoing, the annual cash compensation to be paid to each of the members of the Nominating and Governance Committee of the Board (other than the Chair of the Nominating and Governance Committee) shall be $2,500.
Regulatory Compliance Committee
•in addition to the foregoing, the annual cash compensation to be paid to the Chair of the Regulatory Compliance Committee of the Board shall be $10,000.
•in addition to the foregoing, the annual cash compensation to be paid to each of the members of the Regulatory Compliance Committee of the Board (other than the Chair of the Nominating and Governance Committee) shall be $5,000.
Annual Stock Option Grant
•each non-employee member of the Board shall be granted, on the date of the Corporation’s annual meeting of stockholders, an option to purchase 17,000 shares of the Corporation’s common stock at an exercise price equal to the closing price of the Corporation’s common stock on its principal exchange, which vests ratably over a one (1) year period, and upon such other terms as the Board may resolve.
There have been no changes in the pricing of any options previously or currently awarded.
On March 25, 2021, the Board approved an increase in the base annual cash compensation to be paid to the Chair of the Audit Committee of the Board from $36,000 per annum to $46,000 per annum. On March 25, 2021, the Board also approved an increase in the base annual cash compensation to be paid to each of the non-employee members of the Board from $35,000 per annum to $40,000 per annum. The increase in the base annual cash compensation to be paid to the Chair of the Audit Committee of the Board and to each of the non-employee members of the Board is effective retroactive to January 1, 2021.
Compensation Committee Interlocks and Insider Participation
The Compensation Committee of the Board of Directors is responsible for determining the compensation of executive officers of the Company, as well as compensation awarded pursuant to the Company’s equity incentive plans.
In 2016,2020, our Compensation Committee consisted of three independent members of the Board, of Directors, Charles Orsatti who served as Chairman,Michael Geraghty (Chair), John Andres and Lawrence J. Waldman.
No member of the Compensation Committee is or has been an officer or employee of the Company or any of its subsidiaries. In addition, no member of the Compensation Committee had any relationships with the Company or any other entity that require disclosure under the proxy rules and regulations promulgated by the SEC.
COMPENSATION COMMITTEE REPORT
Our Compensation Committee has reviewed and discussed the Compensation Discussion and Analysis contained in our Annual Report on Form 10-K with management. Based on our Compensation Committee’s review of and the discussions with management with respect to the Compensation Discussion and Analysis, our Compensation Committee recommended to the Board of Directors that the Compensation Discussion and Analysis be included in this Proxy Statement and in our Annual Report on Form 10-K for the fiscal year ended December 31, 2016 for filing with the SEC. During the majority of 2016,2020, our Compensation Committee consisted of three independent members of the Board, of Directors, Charles T. Orsatti,Michael Geraghty, who served as Chairman,Chair, John Andres and Lawrence J. Waldman.
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The Compensation Committee
John Andres, Compensation Committee Member
Lawrence J. Waldman, Compensation Committee Member
The foregoing Compensation Committee Report shall not be deemed incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, and shall not otherwise be deemed filed under these acts, except to the extent we specifically incorporate by reference into such filings.
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
Security Ownership of Certain Beneficial Owners
The following table sets forth certain information as of July 27, 2017June 24, 2021, with respect to the beneficial ownership of the Company’s common stock by its executive officers, directors, all persons known by the Company to be the beneficial owners of more than 5% of its outstanding shares and by all officers and directors as a group.
| Number of Shares | |||||||||||||||||||||||||||||
| Name and Address | Title | Owned (i) | Nature of Ownership | Percentage of Ownership (i) | |||||||||||||||||||||||||
| RTW Investments | Common | 3,391,279 | Beneficial | 9.9 | % | ||||||||||||||||||||||||
| 250 West 55th St. 16th Floor | |||||||||||||||||||||||||||||
| New York, NY 10019 | |||||||||||||||||||||||||||||
| William Weeks Vanderfelt | Common | 3,158,414 | Beneficial | 9.2 | % | ||||||||||||||||||||||||
| Coralis 44, Azzuri Village 44 | |||||||||||||||||||||||||||||
| Roches Noires, 31201 Mauritius | |||||||||||||||||||||||||||||
| Archon Capital Management, LLC | Common | 2,502,077 | Beneficial | 7.3 | % | ||||||||||||||||||||||||
| 1100 19th Avenue E | |||||||||||||||||||||||||||||
| Seattle, WA 98122 | |||||||||||||||||||||||||||||
| BlackRock, Inc. | Common | 2,328,764 | Beneficial | 6.8 | % | ||||||||||||||||||||||||
| 4400 Computer Drive | |||||||||||||||||||||||||||||
| Westborough, MA 01581 | |||||||||||||||||||||||||||||
| Andrew Makrides | Common | 695,972 | (ii) | Beneficial | 2.0 | % | |||||||||||||||||||||||
| 5115 Ulmerton Rd. | |||||||||||||||||||||||||||||
| Clearwater, FL 33760 | |||||||||||||||||||||||||||||
| Charles D. Goodwin II | Common | 1,266,583 | (iii) | Beneficial | 3.6 | % | |||||||||||||||||||||||
| 5115 Ulmerton Rd. | |||||||||||||||||||||||||||||
| Clearwater, FL 33760 | |||||||||||||||||||||||||||||
| Moshe Citronowicz | Common | 635,504 | (iv) | Beneficial | 1.8 | % | |||||||||||||||||||||||
| 5115 Ulmerton Rd. | |||||||||||||||||||||||||||||
| Clearwater, FL 33760 | |||||||||||||||||||||||||||||
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| Number of Shares | |||||||||||
| Name and Address | Title | Owned (i) | Nature of Ownership | Percentage of Ownership (i) | |||||||
| Great Point Partners, LLC | Common | 3,084,269 | (ii) | Beneficial | 9.985 | % | |||||
| 165 Mason Street 3rd Floor | |||||||||||
| Greenwich, CT 06830 | |||||||||||
| William Weeks Vanderfelt | Common | 2,273,249 | Beneficial | 7.4 | % | ||||||
| Coralis 44, Azzuri Village 44 | |||||||||||
| Roches Noires, 31201 Mauritius | |||||||||||
| Andrew Makrides | Common | 641,972 | (iii) | Beneficial | 2.1 | % | |||||
| 5115 Ulmerton Rd. | |||||||||||
| Clearwater, FL 33760 | |||||||||||
| Robert L. Gershon | Common | 423,750 | (iv) | Beneficial | 1.3 | % | |||||
| 5115 Ulmerton Rd. | |||||||||||
| Clearwater, FL 33760 | |||||||||||
| Lawrence Waldman | Common | 181,077 | (v) | Beneficial | 0.5 | % | |||||||||||||||||||||||
| 5115 Ulmerton Rd. | |||||||||||||||||||||||||||||
| Clearwater, FL 33760 | |||||||||||||||||||||||||||||
| Todd Hornsby | Common | 239,000 | (vi) | Beneficial | 0.7 | % | |||||||||||||||||||||||
| 5115 Ulmerton Rd. | |||||||||||||||||||||||||||||
| Clearwater, FL 33760 | |||||||||||||||||||||||||||||
| Michael E. Geraghty | Common | 132,000 | (vii) | Beneficial | 0.4 | % | |||||||||||||||||||||||
| 5115 Ulmerton Rd. | |||||||||||||||||||||||||||||
| Clearwater, FL 33760 | |||||||||||||||||||||||||||||
| Craig Swandal | Common | 70,000 | (viii) | Beneficial | 0.2 | % | |||||||||||||||||||||||
| 5115 Ulmerton Rd. | |||||||||||||||||||||||||||||
| Clearwater, FL 33760 | |||||||||||||||||||||||||||||
| John Andres | Common | 104,500 | (ix) | Beneficial | 0.3 | % | |||||||||||||||||||||||
| 5115 Ulmerton Rd. | |||||||||||||||||||||||||||||
| Clearwater, FL 33760 | |||||||||||||||||||||||||||||
| Tara Semb | Common | 75,333 | (x) | Beneficial | 0.2 | % | |||||||||||||||||||||||
| 5115 Ulmerton Rd. | |||||||||||||||||||||||||||||
| Clearwater, FL 33760 | |||||||||||||||||||||||||||||
| Minnie Baylor-Henry | Common | 34,000 | (xi) | Beneficial | 0.1 | % | |||||||||||||||||||||||
| 5115 Ulmerton Rd. | |||||||||||||||||||||||||||||
| Clearwater, FL 33760 | |||||||||||||||||||||||||||||
| Officers and Directors as a group (10 people) | 3,433,969 | 10.0 | % | ||||||||||||||||||||||||||
(i) Based on 34,322,749 outstanding shares of Common Stock as of June 24, 2021, of which officers and directors owned a total of 1,128,203 shares at June 24, 2021. We have calculated the percentage ownership in the table above on the basis of the number of outstanding securities plus, for each person or group, any securities that person or group has current or future right to acquire pursuant to options, warrants, conversion privileges or other rights based on the 13G and 13D SEC filings at June 24, 2021 (and exercisable within 60 days thereafter).
(ii) Includes 607,972 shares and 88,000 vested options (and exercisable within 60 days thereafter).
(iii) Includes 28,250 shares and 1,238,333 vested options (and exercisable within 60 days thereafter).
(iv) Includes 426,504 shares and 209,000 vested options (and exercisable within 60 days thereafter).
(v) Includes 5,577 shares and 175,500 vested options (and exercisable within 60 days thereafter).
(vi) Includes 0 shares and 239,000 vested options (and exercisable within 60 days thereafter).
(vii) Includes 7,500 shares and 124,500 vested options (and exercisable within 60 days thereafter).
(viii) Includes 53,000 shares and 17,000 vested options (and exercisable within 60 days thereafter).
(ix) Includes 0 shares and 104,500 vested options (and exercisable within 60 days thereafter).
(x) Includes 0 shares and 75,333 vested options (and exercisable within 60 days thereafter).
(xi) Includes 0 shares and 34,000 vested options (and exercisable within 60 days thereafter).
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| J. Robert Saron | Common | 445,190 | (v) | Beneficial | 1.4 | % | |||||
| 5115 Ulmerton Rd. | |||||||||||
| Clearwater, FL 33760 | |||||||||||
| Moshe Citronowicz | Common | 465,754 | (vi) | Beneficial | 1.4 | % | |||||
| 5115 Ulmerton Rd. | |||||||||||
| Clearwater, FL 33760 | |||||||||||
| John Andres | Common | 34,500 | (vii) | Beneficial | 0.1 | % | |||||
| 5115 Ulmerton Rd. | |||||||||||
| Clearwater, FL 33760 | |||||||||||
| Jay D. Ewers | Common | 42,500 | (viii) | Beneficial | 0.1 | % | |||||
| 5115 Ulmerton Rd. | |||||||||||
| Clearwater, FL 33760 | |||||||||||
| Jack McCarthy | Common | 284,750 | (ix) | Beneficial | 0.7 | % | |||||
| 5115 Ulmerton Rd. | |||||||||||
| Clearwater, FL 33760 | |||||||||||
| Michael Geraghty | Common | 50,000 | (x) | Beneficial | 0.1 | % | |||||
| 5115 Ulmerton Rd. | |||||||||||
| Clearwater, FL 33760 | |||||||||||
| Lawrence J. Waldman | Common | 101,000 | (xi) | Beneficial | 0.3 | % | |||||
| 5115 Ulmerton Rd. | |||||||||||
| Clearwater, FL 33760 | |||||||||||
| Officers and Directors as a group (9 persons) | 2,489,416 | (xii) | 7.3 | % | |||||||
Delinquent Section 16(a) Beneficial Ownership Reporting ComplianceReports
Section 16(a) of the Securities Exchange Act of 1934 requires our officers and directors and persons who own more than ten percent of a registered class of our equity securities, to file reports of ownership and changes in ownership with the Securities and Exchange Commission. Officers, directors and greater than ten-percent stockholders (the “Reporting Persons”) are required by SEC regulation to furnish us with copies of all Section 16(a) forms they file.
To the Company’s knowledge, based solely on its review of the copies of such reports received or written representations from certain Reporting Persons that no other reports were required, the Company believes that during its fiscal year ended December 31, 20162020 all filing requirements applicable to the Reporting Persons were timely met.met, with the exception of Craig A. Swandal who did not timely file his Form 4s for 2 separate transactions and Lawrence J. Waldman who did not timely file his Form 4 for 1 transaction.
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
Our policy is that employees, non-employees and third parties must obtain authorization from the appropriate department executive manager, for any business relationship or proposed business transaction in which they or an immediate family member has a direct or indirect interest, or from which they or an immediate family member may derive a personal benefit (a “related party transaction”). The maximum dollar amount of related party transactions that may be approved as described above in this paragraph in any calendar year is $120,000. Any related party transactions that would bring the total value of such transactions to greater than $120,000 must be referred to the Audit Committee to determine the procedure for approval and then have the recommendations presented to the Board of Directors for approval.
Several relatives of Nikolay Shilev, BovieApyx Bulgaria’s Managing Director, are considered related parties. Teodora Shileva, Mr. Shilev’s spouse, is an employee of the companyCompany working in the Accountingaccounting department. Antoaneta Dimitrova Shileva-Toromanova, Mr. Shilev’s sister, is the Managerthe manager of Production and Human Resources.human resources. Svetoslav Shilev, Mr. Shilev’s son, is an Engineera quality manager in the Quality Assurancequality assurance department.
Independent Board Members
The Board currently has threesix independent members, Andrew Makrides, John Andres, Michael Geraghty, and Lawrence J. Waldman, Craig Swandal and Minnie Baylor-Henry who the Board determined meet the existing independence requirements of the NYSE MKTThe NASDAQ Stock Market LLC and the Securities and Exchange Commission.
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PROPOSAL TWO
RATIFICATION OF AUDITORS
THE BOARD RECOMMENDS THAT YOU VOTE "FOR" RATIFICATION OF FRAZIER & DEETER, LLCRSM US, LLP AS THE COMPANY'S INDEPENDENT AUDITORS FOR FISCAL YEAR ENDING DECEMBER 31, 2017.2021.
The following table sets forth the aggregate fees billed to us and expected to be billed to us by RSM, our current accountants, Frazier & Deeter, LLC:principal accountant for 2020 and 2019:
| (In thousands) | 2020 | 2019 | |||||||||
Audit fees (1) | $ | 420 | $ | 238 | |||||||
Audit related fees (2) | — | — | |||||||||
Tax fees (3) | — | — | |||||||||
All other fees (4) | — | — | |||||||||
| Total fees billed | $ | 420 | $ | 238 | |||||||
| Year Ended December 31, | |||||||
| (In thousands) | 2016 | 2015 | |||||
Audit fees (1) | $ | 173 | $ | 141 | |||
| Non-Audit fees: | |||||||
Audit related fees (2) | 3 | 17 | |||||
Tax fees (3) | — | — | |||||
All other fees (4) | — | — | |||||
| Total fees billed | $ | 176 | $ | 158 | |||
(2)Audit related fees consist of billed and unbilled fees for assurance and related services that are reasonably related to the performance of the audit or reviews of Apyx's consolidated financial statements and are not reported under “Audit Fees”.
(3)Tax fees consist of billed and unbilled fees for professional services rendered for tax compliance and tax advice (domestic and international). These services include assistance regarding federal, state and international tax compliance, acquisitions and international tax planning.
(4)All other fees consist of fees for products and services other than the services reported above.
AUDIT COMMITTEE REPORT
Our Audit Committee is composed of "independent" directors, as determined in accordance with Rule 10A-3 of the Securities Exchange Act of 1934. The Audit Committee operates pursuant to a written charter adopted by the Board of Directors.Board.
As described more fully in its charter, the purpose of the Audit Committee is to assist the Board of Directors with its oversight responsibilities regarding the integrity of our financial statements, our compliance with legal and regulatory requirements, assessing the independent registered public accounting firm'sfirm’s qualifications, independence and performance for us. Management is responsible for preparation, presentation and integrity of our financial statements as well as our financial reporting process, accounting policies, internal audit function, internal accounting controls and disclosure controls and procedures. The independent registered public accounting firm is responsible for performing an independent audit of our consolidated financial statements in accordance with generally accepted auditing standards and to issue a report thereon. The Audit Committee'sCommittee’s responsibility is to monitor and oversee these processes. The following is the Audit Committee'sCommittee’s report submitted to the Board of Directors for 2016.2020.
As part of its oversight of the Company'sCompany’s financial statements, the Audit Committee reviews and discusses with both management and the Company'sCompany’s independent registered public accountants all annual and quarterly financial statements prior to their issuance. During fiscal 2016,2020, management advised the Audit Committee that each set of financial statements reviewed had
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been prepared in accordance with generally accepted accounting principles, and management reviewed significant accounting and disclosure issues with the Audit Committee.
The Audit Committee recognizes the importance of maintaining the independence of the Company'sCompany’s Independent Auditor, both in fact and appearance. Each year, the Committee evaluates the qualifications, performance and independence of the Company'sCompany’s Independent Auditor and determines whether to re-engage the current Independent Auditor. Based on this evaluation, the Audit Committee has retained Frazier and Deeter, LLCRSM to serve as the Company'sCompany’s Independent Auditor for 2017.2021. Although the Audit Committee has the sole authority to appoint the Independent Auditors, the Audit Committee will continue to recommend that the Board ask the stockholders, at the Annual Meeting, to ratify the appointment of the Independent Auditors.
The Committee reviewed with the independent auditor, which is responsible for expressing an opinion on the conformity of those audited financial statements and related schedules with US generally accepted accounting principles, its judgments as to the quality, not just the acceptability, of the Company'sCompany’s accounting principles and such other matters as are required to be discussed with the Committee by the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), including PCAOB Auditing Standard No. 16, Communications with Audit Committees, the rules of the Securities and Exchange Commission, and other applicable regulations. In addition, the Committee has discussed with the Independent Auditor the firm'sfirm’s independence from Company management and the Company, including the matters in the letter from the firm required by PCAOB Rule 3526, Communication with Audit Committees Concerning Independence, and considered the compatibility of non-audit services with the independent auditor'sauditor’s independence.
Based on the review and discussions referred to above, the Audit Committee recommended to the Board of Directors that the audited financial statements be included in our Annual Report on Form 10-K for the year ended December 31, 2016 for filing with the Securities and Exchange Commission.
The Audit Committee
Lawrence J. Waldman, Audit Committee Chair
John Andres, Audit Committee Member
Michael Geraghty,Geraghty, Audit Committee Member
Craig Swandal, Audit Committee Member
The foregoing Audit Committee Report shall not be deemed incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, and shall not otherwise be deemed filed under these acts, except to the extent we specifically incorporate by reference into such filings.
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PROPOSAL THREE
APPROVAL OF THE 20172021 SHARE INCENTIVE PLAN
At the Annual Meeting, stockholders will be asked to approve the Company’s 20172021 Share Incentive Plan (the “2017“2021 Plan”), which was adopted by the Board of Directors subject to approval by the Company’s stockholders. The Company’s Board of Directors considers the 20172021 Plan to be important to: (i) aid in maintaining and developing key employees capable of assuring the future success of the Company and to offer such personal incentives to put forth maximum efforts for the success of the Company's business; (ii) to enhance the Company's ability to attract and retain the services of experienced and knowledgeable outside directors; and (iii) to afford such key employees and outside directors an opportunity to acquire a proprietary interest in the Company, thereby aligning their interests with the interests of the Company’s stockholders.
THE BOARD RECOMMENDS THAT YOU VOTE "FOR" THE APPROVAL OF THE 20172021 SHARE INCENTIVE PLAN.
Summary of the New Plan
The following summary of the main features of the 20172021 Plan is qualified in its entirety by reference to the complete text of the 20172021 Plan, which is set forth as Exhibit A to this Proxy Statement. For purposes of the discussion contained in this Proposal No. 4,3, all capitalized terms shall have the meaning proscribed to such terms in the 20172021 Plan, except as otherwise provided.
The 20172021 Plan authorizes the grant and issuance of two different types of Awards: Options (“Stock Options”), which can qualify as “incentive stock options” under the Code, or as “non-qualified stock options;” and Restricted Stock, which is stock that is contingent on an employee satisfying conditions, including without limitation continued employment, passage of time or satisfaction of performance criteria.
The 20172021 Plan has a number of special terms and limitations, including:
•The exercise price for Stock Options granted under the 20172021 Plan must at least equal the Shares’ fair market value at the time the Stock Option is granted;
•The 20172021 Plan expressly states that Stock Options granted under it cannot be “repriced,” as defined in the 20172021 Plan, without stockholder approval;
Eligibility
Any Key Employee, including any Key Employee who is an officer or director of the Company or any Affiliate, any Outside Director or a third party consultant to the Company or any Affiliate shall be eligible to be designated a Participant; provided however, that an Incentive Stock Option shall not be granted to: (1) an Outside Director; or (2) an employee of an Affiliate unless such Affiliate is also a “subsidiary corporation” of the Company within the meaning of Section 424(f) of the Code.
Administration
The 20172021 Plan may be administered by a committee of the Board of Directors comprised of non-employee directors (the "Committee"), although the Board of Directors may exercise any authority of the Committee under the 20172021 Plan in lieu of the Committee’s exercise thereof.
Subject to the terms of the Plan and applicable law, the Committee shall have full power and authority to: (i) designate Participants; (ii) determine the type or types of Awards to be granted to each Participant under the Plan; (iii) determine the number of Shares to be covered by (or with respect to which payments are to be calculated in connection with) Awards; (iv) determine the terms and conditions of any Award or Award Agreement; (v) amend the terms and conditions of any Award or Award Agreement and accelerate the exercisability of Options or the lapse of restrictions relating to Restricted Stock; (vi) determine whether to, to what extent and under what circumstances Awards may be exercised in cash, Shares, other securities, other Awards or other property, or canceled, forfeited or suspended; (vii) determine whether, to what extent and under what circumstances cash or
Shares payable with respect to an Award under the Plan shall be deferred either automatically or at the election of the holder thereof or the Committee; (viii) interpret and administer the Plan and any instrument or agreement
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relating to, or Award made under, the Plan; (ix) establish, amend, suspend or waive such rules and regulations and appoint such agents as it shall deem appropriate for the proper administration of the Plan; and (x) make any other determination and take any other action that the Committee deems necessary or desirable for the administration of the Plan.
Shares Available for Awards
The aggregate number of Shares that can be issued under the 20172021 Plan may not exceed 3,000,0001,375,000 (including pursuant to Incentive Stock Options). If any Shares covered by an Award or to which an Award relates are not purchased or are forfeited or if an Award otherwise terminates without the delivery of any shares or cash payments to be received thereunder, then the number of Shares counted against the aggregate number of Shares available under the Plan with respect to such Award, to the extent of any such forfeiture or termination, shall again be available for granting Awards under the Plan. In addition, any shares that are used by a Participant as full or partial payment to the Company of the purchase price of Shares acquired upon exercise of an Option or satisfy applicable tax withholding requirements (including social insurance requirements) upon the exercise or vesting of an Award shall again be available for granting Awards.
In the event that the Committee shall determine that any dividend or other distribution (whether in the form of cash, Shares, other securities or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase or exchange of Shares or other securities of the Company, issuance of warrants or other rights to purchase Shares or other securities of the Company or other similar corporate transaction or event affects the Shares such that an adjustment is determined by the Committee to be appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan, then the Committee shall, in such manner as it may deem equitable, adjust any or all of (i) the number and type of Shares (or securities or other property) which thereafter may be made the subject of Awards, (ii) the number and type of Shares (or securities or other property) subject to outstanding Awards and (iii) the exercise price with respect to any Award; provided, however, that the number of Shares covered by any Award or to which such Award relates shall always be a whole number.
Awards
The 20172021 Plan authorizes the grant and issuance of the following types of Awards: Stock Options and Restricted Stock.
Stock Options
Subject to the express provisions of the 20172021 Plan and as discussed in this paragraph, the Committee has discretion to determine the vesting schedule of Stock Options, the events causing a Stock Option to expire, the number of shares subject to any Stock Option, the restrictions on transferability of a Stock Option, and such further terms and conditions, in each case not inconsistent with the 20172021 Plan, as may be determined from time to time by the Committee. The 20172021 Plan expressly provides that the Company cannot “reprice” Stock Options without stockholder approval. The exercise price for Stock Options may not be less than 100% of the fair market value of the Common Stock (as determined pursuant to the 20172021 Plan) at the time the Stock Option is granted. The term of each Option shall be fixed by the Committee, but such term shall not exceed 10 years from the date on which such Option is granted. The Committee shall determine the time or times at which an Option may be exercised in whole or in part and the method or methods by which, and the form or forms (including, without limitation, cash, andShares, other securities, cashless exercise, other Awards or sharesother property, or any combination thereof, having a Fair Market Value on the exercise date equal to the relevant exercise price) in which payment of the exercise price with respect thereto may be made or deemed to have been made.
Restricted Stock
The Committee may make Awards of restricted stock to participants, which will be subject to restrictions on transferability and other restrictions as the Committee may impose, including, without limitations on the right to vote restricted stock or the right to receive dividends, if any, on the restricted stock. These Awards may be subject to forfeiture and reacquired by the Company upon any conditions or criteria established by the Committee, including without limitation termination of employment or upon resignation or removal as an Outside Director during the applicable restriction period.
Amendments and Termination
The Board of Directors of the Company may amend, alter, suspend, discontinue or terminate the Plan; provided, however, that, notwithstanding any other provision of the Plan or any Award Agreement, without the approval of the stockholders of the Company, no such amendment, alteration, suspension, discontinuation or termination shall be made that:
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•change the maximum number of shares of Common Stock for which Awards may be granted under this Plan;
•extend the term of this Plan; or
•change the class of persons eligible to participate in the Plan.
The Committee may amend, alter or discontinue an Award made under the Plan which would impair the rights of any Award holder, without such holder’s consent, under any Award theretofore granted; provided that no such consent shall be required if the Committee determines in its sole discretion and prior to the date of any change in control, recapitalization, stock dividend, stock split, reorganization, merger, consolidation or similar type transaction that such amendment or alteration either is required or advisable in order for the Company, the Plan or any Award granted to satisfy any law or regulation or to meet the requirements of any accounting standard.
No Award granted under the 20172021 Plan shall be granted pursuant to the 20172021 Plan more than 10 years after the date of the Company’s stockholders' adoption of the 20172021 Plan.
Income Tax Withholding; Tax Bonuses
Withholding. In order to comply with all applicable federal, state or foreign income tax or social insurance contribution laws or regulations, the Company may take such action as it deems appropriate to ensure that all applicable federal, state or foreign payroll, withholding, income, social insurance contributions or other taxes, which are the sole and absolute responsibility of a Participant, are withheld or collected from such Participant. In order to assist a Participant in paying all federal, state and foreign taxes to be withheld or collected upon exercise or receipt of (or the lapse of restrictions relating to) an Award, the Committee, in its discretion and subject to such additional terms and conditions as it may adopt, may permit the Participant to satisfy such tax obligation by (i) electing to have the Company withhold a portion of the Shares otherwise to be delivered upon exercise or receipt of (or the lapse of restrictions relating to) such Award with a Fair Market Value equal to the amount of such taxes or (ii) delivering to the Company Shares other than Shares issuable upon exercise or receipt of (or the lapse of restrictions relating to) such Award with a Fair Market Value equal to the amount of such taxes. The election, if any, must be made on or before the date that the amount of tax to be withheld is determined.
Tax Bonuses.The Committee, in its discretion, shall have the authority, at the time of grant of any Award under this Plan or at any time thereafter to approve bonuses to designated Participants to be paid upon their exercise or receipt of (or the lapse of restrictions relating to) Awards in order to provide funds to pay all or a portion of federal, state and foreign taxes due as a result of such exercise or receipt (or the lapse of such restrictions). The Committee shall have full authority in its discretion to determine the amount of any such tax bonus.
Tax Effect to Company
The Company generally will be entitled to a tax deduction in connection with an Award under the 20172021 Plan in an amount equal to the compensation income (ordinary income) realized by a Participant and at the time the Participant recognizes such income (for example, the exercise of a NQSO). Special rules limit the deductibility of compensation paid to certain Covered Employees of the Company (as defined by Section 162(m) of the Code, the annual compensation paid to any of these Covered Employees will be deductible only to the extent that it does not exceed $1,000,000 or if the compensation is paid solely on account of attaining one or more pre-established, objective performance goals. The 20172021 Plan has been constructed such that some Awards in the Committee’s discretion may qualify as “performance-based compensation” under Section 162(m) of the Code and thus would be deductible even if the total compensation paid to the Covered Employee is in excess of $1,000,000. However, whether an Award will qualify under Section 162(m) as "performance-based compensation" will depend on the terms, conditions and type of the Award issued to the Covered Employee. For example, grants of Stock Options or Restricted Stock often vest only according to the optionee’s or grantee’s length of employment rather than pre-established performance goals. Therefore, the compensation derived from the Awards made to Covered Employees may not be deductible by the Company to the extent the Covered Employee’s total compensation exceeds $1,000,000.
Vote Required
Assuming a quorum is present at the Annual Meeting, the affirmative vote of a majority of votes cast by the holders of Common Stock represented and entitled to vote at the Annual Meeting is required to approve the 20172021 Plan.
The Board believes that the approval of the 20172021 Plan is in the Company’s and the stockholders' best interests. The Company’s non-employee directors have an interest in the proposal to adopt the 20172021 Plan since each is an eligible Participant in Awards under the 20172021 Plan.
STOCKHOLDER PROPOSALS FOR NEXT ANNUAL MEETING
Stockholder proposals intended to be considered for inclusion in the proxy statement for presentation at the Company's 2018Company’s 2022 Annual Meeting of Stockholders must be received in writing at the Company'sCompany’s offices at 4 Manhattanville5115 Ulmerton Road, Suite 106, Purchase, New York 10577,Clearwater, Florida 33760, Attn: Corporate Secretary, no later than April 10, 2018,March 3, 2022, for inclusion in the Company'sCompany’s proxy statement and proxy card relating to such meeting. Such proposals must comply with applicable SEC rules and regulations.
In order for any proposal that is not submitted for inclusion in next year'syear’s proxy statement (as described in the preceding paragraph) to be presented directly at next year'syear’s annual meeting, we must receive written notice of the proposal in a timely manner.manner, but in any event no later than April 2, 2022. If such notice is received, proxies may be voted at the discretion of management if we advise stockholders in next year'syear’s proxy statement about the nature of the matter and how management intends to vote on such matter.
HOUSEHOLDING OF PROXY MATERIALS
The Securities and Exchange Commission permits companies and intermediaries such as brokers to satisfy the delivery requirements for proxy materials with respect to two or more stockholders sharing the same address by delivering a single set of proxy materials addressed to those stockholders. This process, which is commonly referred to as "householding"“householding”, potentially provides extra conveniences for stockholders and cost savings for companies.
Although we do not intend to household for our stockholders of record, some brokers household our proxy materials, delivering a single set of proxy materials to multiple stockholders sharing an address unless contrary instructions have been received from the affected stockholders. Once you have received notice from your broker that they will be householding materials to your address, householding will continue until you are notified otherwise or until you revoke your consent. If, at any time, you no longer wish to participate in householding and would prefer to receive a separate set of proxy materials, or if you are receiving multiple sets of proxy materials and wish to receive only one, please notify your broker. Stockholders who currently receive multiple sets of the proxy materials at their address and would like to request "householding"“householding” of their communications should contact their broker.
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OTHER MATTERS
The Board of Directors is not aware of any other matter other than those set forth in this proxy statementProxy Statement that will be presented for action at the Annual Meeting. If other matters properly come before the Annual Meeting, the persons appointed as proxies intend to vote the shares they represent in accordance with their best judgment in the interest of the Company.
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DOCUMENTS INCLUDED WITH THIS PROXY STATEMENT
WE ARE PROVIDING HEREWITH, A COPY OF THE COMPANY'SCOMPANY’S ANNUAL REPORT ON FORM 10-K, WITHOUT EXHIBITS, FOR THE YEAR ENDED DECEMBER 31, 2016,2020, INCLUDING THE FINANCIAL STATEMENTS AND SCHEDULES FILED THEREWITH. IF ANY PERSON RECEIVES THIS PROXY MATERIALS WITHOUT THE FOREGOING DOCUMENTS, THE COMPANY UNDERTAKES TO PROVIDE, WITHOUT CHARGE, UPON A WRITTEN OR ORAL REQUEST OF SUCH PERSON AND BY FIRST CLASS MAIL OR OTHER EQUALLY PROMPT MEANS WITHIN ONE BUSINESS DAY OF RECEIPT OF SUCH REQUEST, A COPY OF THE COMPANY'SCOMPANY’S ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2016,2020, INCLUDING THE FINANCIAL STATEMENTS AND SCHEDULES FILED THEREWITH. WRITTEN REQUESTS FOR SUCH REPORTS SHOULD BE ADDRESSED TO THE OFFICE OF THE SECRETARY, BOVIEAPYX MEDICAL CORPORATION, 4 MANHATTANVILLE5115 ULMERTON ROAD, SUITE 106, PURCHASE, NEW YORK 10577.CLEARWATER, FLORIDA 33760. THE COMPANY'SCOMPANY’S TELEPHONE NUMBER AT SUCH OFFICE IS (914) 468-4069.(727) 384-2323.
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WHETHER OR NOT YOU INTEND TO BE PRESENT AT THE ANNUAL MEETING, PLEASE COMPLETE, SIGN, DATE AND RETURN THE ENCLOSED PROXY AT YOUR EARLIEST CONVENIENCE.
WHERE YOU CAN FIND MORE INFORMATION
We are subject to the information and reporting requirements of the Securities Exchange Act of 1934 and in accordance with that act, we file periodic reports, documents and other information with the Securities and Exchange Commission relating to our business, financial statements and other matters. These reports and other information may be inspected and are available for copying at the offices of the Securities and Exchange Commission, 100 F. Street NE, Washington, DC 20549 or may be accessed at www.sec.gov.
| By order of the Board of Directors | |||||||||||
| Dated: | By: | /s/ Andrew Makrides | |||||||||
| Andrew Makrides | |||||||||||
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BOVIE MEDICAL CORPORATION
PROXY
You may vote by:
PROXY FOR THE ANNUAL MEETING OF STOCKHOLDERS TO BE HELD ON SEPTEMBER 14, 2017.AUGUST 6, 2021. THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS
The undersigned hereby acknowledges receipt of Notice of Annual Meeting of Stockholders and Proxy Statement of BovieApyx Medical Corporation in connection with the 20172021 Annual Meeting to be held on September 14, 2017,August 6, 2021, and appoints Andrew Makrides and Robert L. Gershon,Charles D. Goodwin, or either of them, proxy with power of substitution, for and in the name of the undersigned, and hereby authorizes each or either of them to represent and to vote, all the shares of common stock of BovieApyx Medical Corporation, a Delaware corporation ("Company"(“Company”), that the undersigned would be entitled to vote at our Annual Meeting of Stockholders ("(“Annual Meeting"Meeting”) on September 14, 2017August 6, 2021 and at any adjournments thereof, upon the matters set forth in the Notice of Annual Meeting, hereby revoking any proxy heretofore given. The proxy holderholders appointed hereby isare further authorized to vote in histheir discretion upon such other business as may properly come before the Annual Meeting. This proxy will be voted as specified. If no direction is made, this proxy will be voted in favor of all proposals.
ý Please mark your votes
as in this example using
dark ink only.
| 1. | The election of the following nominees to the | |||||||||||||||||||||||||
| Andrew Makrides | FOR | AGAINST | WITHHOLD | |||||||||||||||||||||||
| o | o | o | ||||||||||||||||||||||||
| 02) | Charles D. Goodwin | FOR | AGAINST | WITHHOLD | ||||||||||||||||||||||
| o | o | o | ||||||||||||||||||||||||
| 03) | Michael Geraghty | FOR | AGAINST | WITHHOLD | ||||||||||||||||||||||
| o | o | o | ||||||||||||||||||||||||
| 04) | Lawrence J. Waldman | FOR | AGAINST | WITHHOLD | ||||||||||||||||||||||
| o | o | o | ||||||||||||||||||||||||
| 05) | John Andres | FOR | AGAINST | WITHHOLD | ||||||||||||||||||||||
| o | o | o | ||||||||||||||||||||||||
| 06) | Craig Swandal | FOR | AGAINST | WITHHOLD | ||||||||||||||||||||||
| o | o | o | ||||||||||||||||||||||||
| 07) | Minnie Baylor-Henry | FOR | AGAINST | WITHHOLD | ||||||||||||||||||||||
| o | o | o | ||||||||||||||||||||||||
| 2. | The ratification of | ||||||||||
| FOR | AGAINST | ABSTAIN | |||||||||
| o | o | o | |||||||||
| 3. | The approval of | ||||||||||
| FOR | AGAINST | ABSTAIN | |||||||||
| o | o | o | |||||||||
In their discretion, the proxy holders are authorized to vote upon such other business as may properly come before the meeting or any adjournment thereof, all as set out in the Notice and Proxy Statement relating to the Annual Meeting, receipt of which are hereby acknowledged.
Please sign exactly as your name appears and return this proxy card immediately in the enclosed stamped self-addressed envelope.
| Signature(s) | Signature | ||||||||||||||||
| Dated: | |||||||||||||||||
NOTE: Please mark, date and sign exactly as name(s) appear on this proxy and return the proxy card promptly using the enclosed envelope. If the signer is a corporation, please sign full corporate name by duly authorized officer, giving full title as such. Executors, administrators, attorneys, trustees, or guardians should state full title or capacity. Joint owners should each sign. If signer is a partnership, please sign in partnership name by authorized person.
Exhibit A
APYX MEDICAL CORPORATION
Section 1. Purpose.
The purposes of the BovieApyx Medical Corporation Share Incentive Plan (the “Plan”) are to: (i) aid in maintaining and developing key employees capable of assuring the future success of BovieApyx Medical Corporation (the “Company”), and to offer such personnel incentives to put forth maximum efforts for the success of the Company’s business; (ii) to enhance the Company’s ability to attract and retain the services of experienced and knowledgeable outside directors; and (iii) to afford such key employees and outside directors an opportunity to acquire a proprietary interest in the Company, thereby aligning their interests with the interests of the Company’s stockholders.
Section 2. Definitions.
As used in the Plan, the following terms shall have the meanings set forth below:
m.“Person” shall mean any individual, corporation, partnership, association or trust.
n.“Restricted Stock” shall mean any Share granted under Section 6(b) of the Plan.
Section 3. Administration.
Section 4. Shares Available for Awards.
corporate transaction or event affects the Shares such that an adjustment is determined by the Committee to be appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan, then the Committee shall, in such manner as it may deem equitable, adjust any or all of (i) the number and type of Shares (or securities or other property) which thereafter may be made the subject of Awards, (ii) the number and type of Shares (or securities or other property) subject to outstanding Awards and (iii) the exercise price with respect to any Award; provided, however, that the number of Shares covered by any Award or to which such Award relates shall always be a whole number.
Section 5. Eligibility.
Any Key Employee, including any Key Employee who is an officer or director of the Company or any Affiliate, any Outside Director or a third party consultant to the Company or any Affiliate shall be eligible to be designated a Participant; provided, however, that an Incentive Stock Option shall not be granted to: (1) an Outside Director; or (2) an employee of an Affiliate unless such Affiliate is also a “subsidiary corporation” of the Company within the meaning of Section 424(f) of the Code.
Section 6. Awards.
i.Exercise PricePrice.. The purchase price per Share purchasable under an Option shall be determined by the Committee; provided, however, that such purchase price shall not be less than the Fair Market Value of the Shares on the date such option is granted.
i.No Cash Consideration for AwardsAwards.. Except as otherwise determined by the Committee, Awards shall be granted for no cash consideration or for such minimal cash consideration as may be required by applicable law.
Each Award or right under any Award shall be exercisable during the Participant’s lifetime only by the Participant, by a transferee pursuant to a transfer permitted by clause (B) of this Section 6(c)(iv), or, if permissible under applicable law, by the Participant’s or such transferee’s guardian or legal representative. No Award or right under any such Award may be pledged, alienated, attached or otherwise encumbered, and any purported pledge, alienation, attachment or encumbrance thereof shall be void and unenforceable against the Company or any Affiliate.
Section 7. Amendment and Termination; Adjustments.
Except to the extent prohibited by applicable law and unless otherwise expressly provided in an Award Agreement or in the Plan:
the approval of the stockholders of the Company, no such amendment, alteration, suspension, discontinuation or termination shall be made that:
Section 8. Income Tax Withholding; Tax Bonuses.
Section 9. General Provisions.
d.No Limit on Other Compensation ArrangementsArrangements.. Nothing contained in the Plan shall prevent the Company or any Affiliate from adopting or continuing in effect other or additional compensation arrangements, and such arrangements may be either generally applicable or applicable only in specific cases.
Section 10. Effective Date of the Plan.
The Plan shall be effective as of the date of its approval by the stockholders of the Company.
Section 11. Term of the Plan.
Awards shall be granted under the Plan during a period commencing the date the Plan was approved by the stockholders of the Company, through a date which is ten (10) years from the date of such shareholder approval. However, unless otherwise expressly provided in the Plan or in an applicable Award Agreement, any Award theretofore granted may extend beyond the ending date of the period stated above, and the authority of the Committee provided for hereunder with respect to the Plan and any Awards, and the authority of the Board of Directors of the Company to amend the Plan, shall extend beyond the end of such period.