UNITED STATES
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Washington, D.C. 20549
SCHEDULE 14A INFORMATION
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NewLink Genetics CorporationLUMOS PHARMA, INC.
(Name of Registrant as Specified In Its Charter)
(Name of Person(s) Filing Proxy Statement if Other Than the Registrant)
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LUMOS PHARMA, INC.
NEWLINK GENETICS CORPORATION4200 Marathon Boulevard #200
2503 South Loop DriveAustin, Texas 78756
Ames, IA 50010

NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
TO BE HELD ON MAY 12, 201719, 2021
Dear Stockholder:

You are cordially invited to attend the 20172021 Annual Meeting of Stockholders (the “Annual Meeting”) of NEWLINK GENETICS CORPORATIONLUMOS PHARMA, INC., a Delaware corporation (the “Company”). The Annual Meeting will be held via live webcast at www.virtualshareholdermeeting.com/LUMO2021, on Friday,Wednesday, May 12, 201719, 2021 at 9:11:00 a.m. local time at the offices of NewLink Genetics Corporation, 2503 South Loop Drive, Suite 5100, Ames, IA 50010, Central Time, for the following purposes:
1.
To elect the nominees for director, Charles J. Link, Jr., M.D., Paolo Pucci and Thomas A. Raffin, nominated by our Board of Directors, to serve until the 2020 Annual Meeting of Stockholders.
2.
To approve, on an advisory basis, the compensation of our named executive officers, as disclosed in this proxy statement.
3.
To ratify the selection by the Audit Committee of the Board of Directors of KPMG LLP as the independent registered public accounting firm of the Company for its fiscal year ending December 31, 2017.
4.To conduct any other business properly brought before the meeting.

1.    To elect the Board’s nominees for director, Chad A. Johnson and Lota S. Zoth, to serve until the 2024 Annual Meeting of Stockholders.

2.     To approve, on a non-binding, advisory basis, the compensation of our named executive officers, as disclosed in the proxy statement accompanying this notice.

3.    To ratify the selection by the Audit Committee of the Board of Directors of KPMG LLP as the independent registered public accounting firm of the Company for its fiscal year ending December 31, 2021.

4.    To conduct any other business properly brought before the meeting.

These items of business are more fully described in the Proxy Statement.proxy statement accompanying this notice.

You will be able to participate in the Annual Meeting, vote your shares electronically and submit your questions during the live webcast by entering your 16-digit control number found on the voting form provided. Voting at www.proxyvote.com will ensure your representation at the Annual Meeting regardless of whether you participate in our live webcast.

The record date for the Annual Meeting is March 15, 2017.22, 2021. Only stockholders of record at the close of business on that date may vote at the meeting or any adjournment thereof. All stockholders of the Company are invited to attend the Annual Meeting via live webcast. Under Delaware law, attendance at the annual meeting via live webcast is deemed “present in person.” Whether or not you expect to attend the Annual Meeting in person via live webcast, please vote your shares as promptly as possible to ensure your representation at the Annual Meeting.

Pursuant to the internet proxy rules promulgated by the Securities and Exchange Commission, NewLink Genetics Corporationthe Company has elected to provide access to its proxy materials for certain stockholders over the internet. Stockholders of record at the close of business on March 15, 201722, 2021 will receive a Notice of Internet Availability of Proxy Materials and may vote at the Annual Meeting and any adjournment or postponement thereof. NewLink Genetics CorporationThe Company expects to mail the Notice of Internet Availability of Proxy Materials on or about March 31, 2017.April 9, 2021.

By Order of the Board of Directors
/s/ John B. Henneman, IIICarl W. Langren     

John B. Henneman, IIICarl W. Langren
Chief Financial Officer and Secretary

Ames, IowaAustin, Texas
March 31, 2017April 6, 2021






Important Notice Regarding the Availability of Proxy Materials for the Shareholder Meeting to be Held on May 19, 2021:
You are cordially invited to attend the meeting in person. Whether or not you expect to attend the meeting, please complete, date, sign and return the proxy mailed to you, or vote over the telephone or the internet as instructed in these materials, as promptly as possible so that your shares may be voted in accordance with your wishes and in order to ensure your representation atthat the meeting.presence of a quorum may be assured. Even if you have voted by proxy, you may still vote in person if you attend the meeting.meeting via live webcast. Please note, however, that if your shares are held of record by a broker, bank or other nominee and you wish to vote at the meeting, you must obtain a proxy issued in your name from that record holder. Your vote is important.

You may vote by proxy by completing and mailing the proxy card mailed to you. If you submit a proxy card, we will vote your shares as you direct. If you submit a proxy card without giving specific voting instructions for a particular proposal or nominee, those shares will be voted as recommended by our Board of Directors with respect to such proposal or nominee.

You may also vote by proxy via the Internet by going to the website www.proxyvote.com, and following the instructions provided there, or by telephone, by calling the following number: 1-800-690-6903 using a touch-tone phone and follow the recorded instructions. You will be asked to provide the control number found on the proxy card. Your proxy card, Internet or telephone vote must be received by 11:59 p.m., Eastern Time, on May 18, 2021, to be counted.

If your shares are held by a broker, bank, or other agent, you are considered the beneficial owner of those shares, and your shares are held in “street name.” If you hold your shares in “street name” you will receive instructions from your broker, bank or other agent describing how to vote your shares. If you hold shares in “street name” and do not receive instructions on how to vote your shares, you should contact your broker, bank or other agent promptly and request this information.

Even if you have voted by proxy via one of the procedures listed above, you may still vote in person if you attend the Annual Meeting via live webcast. Please note, however, that if your shares are held of record by a broker, bank or other agent and you wish to vote at the Annual Meeting, you must obtain a proxy issued in your name from that record holder.






LUMOS PHARMA, INC.
NEWLINK GENETICS CORPORATION

TABLE OF CONTENTS

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Officers





LUMOS PHARMA, INC.
NEWLINK GENETICS CORPORATION4200 Marathon Boulevard #200
2503 South Loop DriveAustin, Texas 78756
Ames, Iowa 50010

PROXY STATEMENT
FOR THE 20172021 ANNUAL MEETING OF STOCKHOLDERS
TO BE HELD ON MAY 19, 2021
Lumos Pharma, Inc., sometimes referred to as the Company, Lumos, we, us or our, is furnishing this proxy statement, or Proxy Statement, to holders of our common stock. Proxies are being solicited on behalf of the Board of Directors of Lumos, which we refer to as our Board, to be used at Lumos’ 2021 Annual Meeting of Stockholders, or Annual Meeting, to be held via live webcast at www.virtualshareholdermeeting.com/LUMO2021 on May 12, 201719, 2021 at 11:00 a.m., Central Time. You will be able to participate in the Annual Meeting, vote your shares electronically and submit your questions during the live webcast by entering your 16-digit control number found on the voting form provided. Proxies also may be voted at any adjournments or postponements of the Annual Meeting.
Our principal executive offices are located at 4200 Marathon Boulevard #200, Austin, Texas 78756.

QUESTIONS AND ANSWERS ABOUT THESE PROXY MATERIALS AND VOTING
Why did I receive a notice regarding the availability of proxy materials on the internet?
Pursuant to rules adopted by the Securities and Exchange Commission, or the SEC, we have elected to provide access to our proxy materials over the internet. Accordingly, we have sent you a Notice of Internet Availability of Proxy Materials, which we refer to as the Notice, because our Board of Directors, which we refer to as our Board, of NewLink Genetics Corporation,Lumos Pharma, Inc., or the Company, is soliciting your proxy to vote at the 20172021 Annual Meeting of Stockholders, which we refer to as the Annual Meeting, including at any adjournments or postponements of the meeting. All stockholders will have the ability to access the proxy materials on the website referred to in the Notice or to request to receive a printed set of the proxy materials. Instructions on how to access the proxy materials over the internet or to request a printed copy of the proxy materials are contained in the Notice.
We intend to mail the Notice to all stockholders of record entitled to vote at the Annual Meeting on or about March 31, 2017.April 9, 2021.

Will I receive any other proxy materials by mail?
We may send you a proxy card, along with a second Notice, on or after April 7, 2017.23, 2021.
How do I attend the Annual Meeting?
The Annual Meeting will be held via live webcast at www.virtualshareholdermeeting.com/LUMO2021 on Friday,Wednesday, May 12, 201719, 2021 at 9:11:00 a.m. local time at, Central Time. You will be able to participate in the principal executive offices of NewLink Genetics Corporation, 2503 South Loop Drive, Suite 5100, Ames, IA 50010. Directions toAnnual Meeting, vote your shares electronically and submit your questions during the meeting are postedlive webcast by entering your 16-digit control number found on the internet at http://www.newlinkgenetics.com/contact/.Notice. Information on how to vote in person at the Annual Meeting is discussed below.
Who can vote at the Annual Meeting?
Only stockholders of record atas of the close of business on March 15, 2017Record Date will be entitled to vote at the Annual Meeting. On the foregoing record date,Record Date, there were 29,219,1858,332,193 shares of common stock outstanding and entitled to vote.
Stockholder of Record: Shares Registered in Your Name
If on March 15, 201722, 2021 your shares were registered directly in your name with our transfer agent, Computershare Shareowner Services LLC, then you are a stockholder of record. As a stockholder of record, you may vote in person at the Annual Meeting or vote by proxy. Whether or not you plan to attend the meeting, we urge you to vote by proxy over the telephone or on the internet as instructed below, or to fill out and return a proxy card that you may request or that we may elect to deliver at a later time, to ensure your vote is counted.
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Beneficial Owner: Shares Registered in the Name of a Broker or Bank
If on March 15, 201722, 2021 your shares were held, not in your name, but rather in an account at a brokerage firm, bank, dealer or other similar organization, then you are the beneficial owner of shares held in “street name,”name” and the Notice is being forwarded to you by that organization. The organization holding your account is considered to be the stockholder of record for purposes of voting at the Annual Meeting. As a beneficial owner, you have the right to direct your broker or other agent regarding how to vote the shares in your account.account in accordance with the instructions you have received from your brokerage firm, bank, dealer or other similar organization. You are also invited to attend the meeting.meeting via live webcast. However, since you are not the stockholder of record, you may not vote your shares in person at the Annual Meeting unless you request and obtain a valid proxy from your broker or other agent.


What am I voting on?
There are three matters scheduled for a vote:
1.Election ofthreedirectors; the Board of Directors’ nominees for director, Chad A. Johnson and Lota S. Zoth, to serve until the 2024 Annual Meeting of Stockholders;
2.Advisory approval of the compensation of our named executive officers, as disclosed in this proxy statement in accordance with SEC rules; and
3.Ratification of the selection, by the Audit Committee of our Board, of KPMG LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2017.2021.

What if another matter is properly brought before the meeting?
We know of no other matters that will be presented for consideration at the Annual Meeting. If any other matters are properly brought before the meeting, it is the intention of the persons named in the accompanying proxy to vote on those matters in accordance with their best judgment.
How do I vote?
You    With respect to Proposal No. 1 (Election of Directors), you may either vote “For” all the nominees to our Board or you may “Withhold” your vote for any nominee you specify. For each of the other matters to be voted on, you may vote “For” or “Against” or abstain from voting.
The procedures for voting are fairly simple:are:
Stockholder of Record: Shares Registered in Your Name
If you are a stockholder of record, you may vote in person at the Annual Meeting, vote by proxy over the telephone, vote by proxy through the internet, or vote by proxy using a proxy card that you may request or that we may elect to deliver at a later time. Whether or not you plan to attend the meeting, we urge you to vote by proxy to ensure that your vote is counted. You may still attend the meeting and vote in person even if you have already voted by proxy.
To vote in person, come toat the Annual Meeting, visit the following website: www.virtualshareholdermeeting.com/LUMO2021. You will be able to participate in the Annual Meeting, vote your shares electronically and we will give you a ballot when you arrive.submit your questions during the live webcast by entering your 16-digit control number found on the voting form provided.
To vote using thea proxy card, simply complete, sign and date the proxy card that may be delivered to youand return it promptly in the envelope provided. If you return your signed proxy card to us before the meeting, we will vote your shares as you direct.
To vote over the telephone, dial toll-free 1-800-652-VOTE (8683)1-800-690-6903 using a touch-tone phone and follow the recorded instructions. You will be asked to provide the company number and control number from the Notice. Your telephone vote must be received by 11:59 p.m., EST,Eastern Time, on May 11, 201718, 2021 to be counted.
To vote through the internet, go to http://www.envisionreports.com/NLNKwww.proxyvote.com to complete an electronic proxy card. You will be asked to provide the company number and control number from the Notice. Your internet vote must be received by 11:59 p.m., EST,Eastern Time, on May 11, 201718, 2021 to be counted.

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Beneficial Owner: Shares Registered in the Name of Broker or Bank
If you are a beneficial owner of shares registered in the name of your broker, bank, or other agent, you should have received a Notice containing voting instructions from that organization rather than from us. Simply follow the voting instructions in the Notice to ensure that your vote is counted. To vote in person at the Annual Meeting via live webcast, you must obtain a valid proxy from your broker, bank or other agent. Follow the instructions from your broker or bank included with these proxy materials, or contact your broker or bank to request a proxy form.


Internet proxy voting may be provided to allow you to vote your shares online, with procedures designed to ensure the authenticity and correctness of your proxy vote instructions. However, please be aware that you must bear any costs associated with your internet access, such as usage charges from internet access providers and telephone companies.






How many votes do I have?
On each matter to be voted upon, you have one vote for each share of common stock you own as of March 15, 2017.22, 2021. Common stock is the only class of voting securities currently outstanding and entitled to vote.
What happens if I do not vote?
Stockholder of Record: Shares Registered in Your Name
If you are a stockholder of record and do not vote (1) by completing and returning your proxy card, (2) by telephone, (3) through the internet or (4) in person at the Annual Meeting via live webcast, your shares will not be voted.
Beneficial Owner: Shares Registered in the Name of Broker or Bank
If you are a beneficial owner and do not instruct your broker, bank, or other agent how to vote your shares, the question of whether your broker or nominee will still be able to vote your shares depends on whether the New York Stock Exchange (NYSE) deems the particular proposal to be a “routine” matter. Brokers and nominees can use their discretion to vote “uninstructed” shares with respect to matters that are considered to be “routine,” but not with respect to “non-routine” matters. Under the rules and interpretations of the New York Stock Exchange, “non-routine” matters are matters that may substantially affect the rights or privileges of shareholders, such as mergers, shareholder proposals, elections of directors (even if not contested), executive compensation (including any advisory shareholder votes on executive compensation and on the frequency of shareholder votes on executive compensation), and certain corporate governance proposals, even if management-supported. These rules apply to brokers holding our shares even though our common stock is traded on the NASDAQ Global Market. Accordingly, your broker or nominee may not vote your shares on ProposalsProposal Nos. 1 (Election of Directors), or 2 without your instructions,(Advisory Vote on Compensation of Our Named Executive Officers), but may vote your shares on Proposal No. 3 (Ratification of Selection of KPMG LLP as Our Independent Registered Public Accounting Firm) even in the absence of your instruction.
What if I return a proxy card or otherwise vote but do not make specific choices?
If you return a signed and dated proxy card or otherwise vote without marking voting selections, your shares will be voted, as applicable, “For” the election of the nominees for director, “For” the advisory approval of executive compensation, and “For” ratification of the selection, by the Audit Committee of our Board, of KPMG LLP as our independent registered public accounting firm for our fiscal year ending December 31, 2017.2021. If any other matter is properly presented at the meeting, your proxyholder (one of the individuals named on your proxy card) will vote your shares using his or her best judgment.
Who is paying for this proxy solicitation?
We will pay for the entire cost of soliciting proxies. In addition to these proxy materials, our directors and employees may also solicit proxies in person, by telephone or by other means of communication. Directors and employees will not be paid any additional compensation for soliciting proxies. We may also reimburse brokerage firms, banks and other agents for the cost of forwarding proxy materials to beneficial owners.
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What does it mean if I receive more than one Notice?
If you receive more than oneNotice, your shares may be registered in more than one name or in different accounts. For example, you may own some shares directly as a stockholder of record and other shares through a broker, or you may own shares through more than one broker. Please follow the voting instructions on eachNotice to ensure that all of your shares are voted.
Can I change my vote after submitting my proxy?
Stockholder of Record: Shares Registered in Your Name
Yes. You can revoke your proxy at any time before the final vote at the Annual Meeting. If you are the record holder of your shares, you may revoke your proxy in any one of the following ways:
You may submit another properly completed proxy card with a later date;
You may grant a subsequent proxy by telephone or through the internet;
You may send a timely written notice that you are revoking your proxy to NewLink Genetics Corporation’sthe Company’s Secretary at 2503 South Loop Drive, Suite 5100, Ames, IA 50010;4200 Marathon Boulevard #200, Austin, TX 78756; or
You may attend the Annual Meeting and vote in person via live webcast (simply attending the meeting will not, by itself, revoke your proxy).

Your most current proxy card or telephone or internet proxy is the one that is counted.


Beneficial Owner: Shares Registered in the Name of Broker or Bank
If your shares are held by your broker or bank as a nominee or agent, you should follow the instructions provided by your broker or bank.
When are stockholder proposals due for next year’s annual meeting?
To be considered for inclusion in next year’s proxy materials, your proposal must be submitted in writing and received by November 29, 2017December 6, 2021 to Corporate Secretary, NewLink Genetics CorporationLumos Pharma, Inc., 2503 South Loop Drive, Ames, Iowa 500104200 Marathon Boulevard #200, Austin, TX 78756.If you wish to submit a director nomination or a proposal at next year’s annual meeting that is not to be included in next year’s proxy materials, you must do so by no later than the close of business on February 12, 2018,18, 2022, nor earlier than the close of business on January 12, 2018,19, 2022, and you must comply with the requirements of Section 5(b) in the our Bylaws, including submitting written notice to our Corporate Secretary as set forth above.
How However, if the date of next year’s annual meeting is more than 30 days before or more than 30 days after May 19, 2022, then we must receive your notice no earlier than the close of business on the one hundred twentieth (120th) day prior to such meeting and no later than the close of business on the later of the ninetieth (90th) day prior to such meeting or the tenth (10th) day following the day on which public announcement of the date of such meeting is first made. You are votes counted?
Votes will be counted by the inspectoralso advised to review our bylaws, which contain additional requirements regarding advance notice of election appointed for the meeting, who will separately count, for the proposal to elect directors, votes “For,” “Withhold”stockholder proposals and broker non-votes and, with respect to other proposals, votes “For” and “Against,” abstentions and, if applicable, broker non-votes. Abstentions will be counted toward the vote total for Proposal Nos. 2 and 3, and will have the same effect as “Against” votes, but broker non-votes will have no effect on whether these proposals are approved. Broker non-votes will not be counted toward the vote total and will have no effect for Proposal No.1.director nominations.
What happens if I do not provide instructions on how to vote or if other matters are “broker non-votes”?presented for determination at the Annual Meeting?
As discussed above, when    If you are a stockholder of record and return your proxy card without instructions, the persons named as proxy holders on the proxy card will vote in accordance with the recommendations of the Board of Directors.
    If you are a beneficial owner ofas noted above you generally cannot vote your shares held in “street name” does not give instructions to thedirectly and must instead instruct your broker, trustee, bank or nominee holding the shares as to how to vote your shares using the voting instructions form provided by that intermediary. If you do not provide voting instructions, whether your shares can be voted by your broker, bank or nominee depends on matters deemed by the NYSE to be “non-routine,”type of item being considered.
Non-Discretionary Items. If you do not provide voting instructions for any of the non-discretionary items at the Annual Meeting, your broker, bank or nominee cannot vote the shares. These unvotedyour shares, resulting in a “broker non-vote.” All items of business other than Proposal No. 3 (Ratification of Selection of KPMG LLP as Our Independent Registered Public Accounting Firm) are non-discretionary items. Shares constituting broker non-votes will be counted as “broker non-votes.”present for the purpose of determining a quorum at the Annual Meeting, but generally are not counted or deemed to be present in person or by proxy for the purpose of voting on any of the non-discretionary items.
How many votes are needed to approve each proposal?
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Discretionary Items. Even if you do not provide voting instructions, your broker, bank or nominee may vote in its discretion on Proposal No. 3 (Ratification of Selection of KPMG LLP as Our Independent Registered Public Accounting Firm) because it is a discretionary item.

What items are being voted upon, how does the Board recommend that you vote, and what are the standards for determining whether an item has been approved?
Proposal NumberProposal DescriptionBoard RecommendationVote Required for ApprovalEffect of AbstentionsEffect of Broker Non-Vote
1Election of DirectorsFOR each director nomineeNominees receiving the most “For” votesNoneNo effectNone
2Advisory voteVote on compensationCompensation of our named executive officersOur Named Executive OfficersFOR“For” votes from a majority of the votes cast in person by proxy or at the Annual Meeting, although such vote will not be binding on us.AgainstNone
3Ratification of the selectionSelection of KPMG LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2016Our Independent Registered Public Accounting FirmFOR“For” votes from a majority of the votes cast in person by proxy or at the Annual Meeting.AgainstNoneNot applicable

What is the quorum requirement?
A quorum of stockholders is necessary to hold a valid meeting. A quorum will be present if stockholders holding a majority of the outstanding shares entitled to vote are present at the meeting in person via live webcast or represented by proxy. On the record date,Record Date, there were 29,219,1858,332,193 shares outstanding and entitled to vote.Thus, the holders of 14,609,5934,166,097 shares must be present in personat the meeting or represented by proxy at the meeting to have a quorum.
Your shares will be counted toward 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 via live webcast at the meeting. Abstentions and broker non-votes will be counted towards the quorum requirement. If there is no quorum, the holders of a majority of shares present at the meeting in person or represented by proxy may adjourn the meeting to another date.



How can I find out the results of the voting at the annual meeting?
Preliminary voting results will be announced at the Annual Meeting. In addition, final voting results will be published in a current report on Form 8-K that we expect to file within four business days after the Annual Meeting. If final voting results are not available to us in time to file a Form 8-K within four business days after the Annual Meeting, we intend to file a Form 8-K to publish preliminary results and, within four business days after the final results are known to us, file an additional Form 8-K to publish the final results.

Note Regarding Our Recent Merger


On March 18, 2020, the Company, formerly known as NewLink Genetics Corporation, merged Cyclone Merger Sub, Inc., its wholly-owned subsidiary, with what was then known as Lumos Pharma, Inc. and has since been renamed “Lumos Pharma Sub, Inc.” (“Private Lumos”), and changed our name from “NewLink Genetics Corporation” to “Lumos Pharma, Inc.” (the “Merger”). Unless otherwise indicated, references to the “Company,” “Lumos,” “we,” “us” or “our” refer to Lumos Pharma, Inc., formerly known as NewLink Genetics Corporation. References to “NewLink” refer to NewLink Genetics Corporation prior to the Merger.
Also on March 18, 2020, and prior to the effective time of the Merger (the “Effective Time”), the Company effected a 1-for-9 reverse stock split of its common stock (the “Reverse Stock Split”). Unless otherwise noted herein, all references to share amounts give effect to the Reverse Stock Split. Following the completion of the Merger, the business being conducted by the Company became primarily the business conducted by Private Lumos, which is a biopharmaceutical company focused on the identification, acquisition, in-license, development, and commercialization of novel products for the treatment of rare diseases. Our current pipeline is focused on the development of an orally administered small molecule, the growth hormone secretagogue ibutamoren, for rare endocrine disorders.
5


Immediately following the Reverse Stock Split and the completion of the Merger, there were 8,292,803 shares of the Company’s common stock outstanding. Under the terms of the Merger, Private Lumos stockholders received an aggregate of 4,146,398 shares of our common stock, at an exchange rate of (i) 0.1308319305 shares of common stock in exchange for each share of Private Lumos common stock outstanding immediately prior to the Merger, (ii) 0.0873621142 shares of our common stock in exchange for each share of Private Lumos Series A Preferred Stock outstanding immediately prior to the Merger, and (iii) 0.1996348626 shares of our common stock in exchange for each share of Private Lumos Series B Preferred Stock outstanding immediately prior to the Merger. Immediately following the Merger, the former Private Lumos stockholders beneficially owned approximately 50% of the shares of the Company and the former NewLink stockholders beneficially owned approximately 50% of the shares of the Company. For accounting purposes, Private Lumos is considered to have acquired NewLink in the Merger. Accordingly, for accounting purposes the reported historical operating results of the combined company prior to the Merger will be those of Private Lumos and not of NewLink after retroactively giving effect to the common stock exchange ratio, reverse stock split and change in par value for all periods presented; and for periods prior to the transaction, shareholders’ authorized capital of the combined company is presented based on the historical authorized capital of NewLink. Compensation information included herein for periods prior to the Merger is based on information from the accounting records of NewLink, except where noted with respect to information that reflects compensation paid by Private Lumos prior to the Merger.
As part of the Merger, we also assumed 26,248 stock options issued and outstanding under the Lumos 2012 Equity Incentive Plan (as amended, the “Lumos 2012 EIP”), with a weighted-average exercise price of $1.39 per share and 163,864 stock options issued and outstanding under the Lumos 2016 Stock Plan (the “Lumos 2016 Plan,” and together with the Lumos 2012 EIP, the “Lumos Plans”), with a weighted-average exercise price of $3.66 per share. From and after the Effective Time, such options may be exercised for shares of our common stock.


6


PROPOSAL 1
ELECTION OF DIRECTORS
NewLink Genetics Corporation’s    Our Board is divided into three classes. Each class consists, as nearly as possible, of one-third of the total number of directors, and each class has a three-year term. Vacancies on our Board may be filled only by persons elected by a majority of the remaining directors. A director elected by our Board to fill a vacancy in a class, including vacancies created by an increase in the number of directors, shall serve for the remainder of the full term of that class and until the director’s successor is duly elected and qualified.
Our Board presently has eightseven members. There are threetwo directors in the class whose term of office expires in 2017,2021, each of whom has been nominated for re-election. Charles J. Link, Jr., M.D.Chad A. Johnson currently serves on our boardBoard and was previously elected by the stockholders in 2014. Thomas A. Raffin2018. Lota S. Zoth currently serves on our boardBoard and was previously elected by the stockholders in 2014. Paolo Pucci currently serves on our board and was elected to fill a vacancy on our Board on November 12, 2015.2018. If elected at the Annual Meeting, each nominee would serve until the 20202024 Annual Meeting of Stockholders and until his or her successor has been duly elected and qualified, or, if sooner, until the director’s death, resignation or removal. It is our policy to encourage directors and nominees for director to attend the Annual Meeting. Seven of the eight directors continuing their service as members of our Board after the 2016 Annual Meeting of Stockholders attended the meeting.

Directors are elected by a plurality of the votes of the holders of shares present in person at the Annual Meeting or represented by proxy and entitled to vote on the election of directors. The three nominees receivingIf a choice is specified on the highest number of affirmative votesproxy card by a stockholder, their shares will be elected.voted as specified. If a choice is not specified on the proxy card, and authority to do so is not withheld, the shares will be voted “FOR” the election of nominees named below. Shares represented by executed proxies will be voted, if authority to do so is not withheld, for the election of the nominees named below. If any nominee becomes unavailable for election as a result of an unexpected occurrence, shares that would have been voted for that nominee will instead be voted for the election of a substitute nominee proposed by us. Each person nominated for election has agreed to serve if elected. Our management has no reason to believe that any nominee will be unable to serve.

Class IIIII Director Nominees
Below is a brief biography of each nominee and each director whose term will continue after the Annual Meeting, including the ages of each nominee and director as of April 6, 2016.1, 2021. Each individual listed below is nominated for election for a three-year term expiring at the 20202024 Annual Meeting.
Name of NomineeAge
Position Held with
Company
Committees
Director
Since
     
Charles J. Link, Jr., M.D.57Chairman of the Board and Chief Executive and Scientific OfficerNone2011
Paolo Pucci55DirectorNominating and Corporate Governance Committee and Audit Committee2015
Thomas A. Raffin70DirectorNominating and Corporate Governance Committee and Compensation Committee2011

Name of NomineeAge
Position Held with
Company
Committees
Director
Since
Chad A. Johnson42DirectorNominating and Corporate Governance Committee, Audit Committee2018
Lota S. Zoth61DirectorAudit Committee, Compensation Committee2012
    
Charles J. Link, Jr., M.D.
Chad A. Johnson, J.D.,age 57, founded NewLink Genetics Corporation in 1999 and has served as Chairman of our Board and our Chief Scientific Officer since inception in 1999. He served as President from 2001 to 2009 and has served as Chief Executive Officer since 2003. From 1995 to 2013, Dr. Link was a practicing oncologist at the Medical Oncology and Hematology Associates of Iowa. From 1995 to 2003, Dr. Link served as the Director of the John Stoddard Cancer Research Institute, which he co-founded. Dr. Link served as a Medical Oncology Clinical Fellow at the National Cancer Institute and National Institutes of Health from 1988 to 1991. Dr. Link attended the U.S. Air Force Academy from 1977 to 1980. Dr. Link holds a B.A. from Stanford University, an M.D. from Stanford University School of Medicine and is certified in Internal Medicine by the American Board of Internal Medicine and has previously been certified in Medical Oncology.

Our Board believes that Dr. Link’s experience with our Company, as a founder and director since inception and as Chief Executive Officer since 2003, brings continuity to our Board. In addition, our Board believes that Dr. Link’s extensive medical and scientific background and experience provides important experience, expertise and leadership as our Company continues to grow.

Paolo Pucci, age 55,42, has served as a member of ourthe Board since 2015.March 2018. Mr. Pucci has served asJohnson is currently General Counsel at Stine Seed Company. From May 2015 to April 2017, Mr. Johnson was the Chief Executive OfficerAssistant Corporate Secretary and Senior Corporate Counsel for Renewable Energy Group, Inc., a supplier of advanced biofuels in North America. In addition to his role as a director of ArQule Inc. (NASDAQ: ARQL) since 2008. Priorcorporate officer, Mr. Johnson was a senior in-house attorney for the company. From 2007 to that,April 2015, he was with Bayer A.G., where he served as Senior Vice President (SVP)spent eight years in charge of the Bayer-Schering Pharmaceuticals Global Oncology/Specialized Therapeutics


Business Unit. Previously at Bayer, Mr. Pucci was concomitantly SVP of the Global Specialty Business Unit and President of North America Pharmaceutical Operations and a member of the Bayer Pharmaceuticals Global Management Committee. Mr. Pucci joined Bayer in 2001 as head of its Italian Pharmaceutical and Biologicals operations. Prior to Bayer, Mr. Pucci held positionsroles of increasing responsibility with Eli Lilly and Company, culminating with his appointment as Managing Director, Eli Lilly Sweden AB. In September 2016, Mr. Pucci was appointed to the Boardat DuPont Pioneer, a subsidiary of Directors of West Pharmaceutical Services, Inc. (NYSE: WST)where he serves as an independent director, member of the audit committee and member of the compensation committee. In November 2011, Mr. Pucci was appointed to the Board of Directors of Dyax Corporation, where he served as an independent director, member of the audit committee and chairman of the governance and nomination committee until its acquisition by Shire plc in January 2016. In April 2013, he was appointed to the Board of Directors of Algeta ASA, a Norwegian public company focused on oncology and based in Oslo, Norway. At Algeta he served as an independent director and member of the audit committee until the acquisition of Algeta by Bayer A.G. in March 2014. Mr. Pucci holds an MBA from the University of Chicago Booth, is an Italian chartered accountantDuPont and a graduateglobal leading seed and agriculture biotechnology company. Mr. Johnson is admitted to practice law in economicsthe State of Iowa and before the Universita Degli Studi Di Napoli Federico IIUnited States Patent and Trademark Office. Mr. Johnson graduated from Iowa State University with a Master of Science in Naples, Italy.Crop Production and Physiology and received his J.D. from Drake University Law School.

Our Board believes that Mr. Pucci’s extensive drug development track record and business practice in large multinational as well as emergingJohnson’s career at major biotechnology companies, provides the experience necessary for him to serveservice as a member of our Audit Committee and the Chair of our Nominating and Corporate Governance Committee.
Thomas A. Raffin, M.D., age 70, has served as a member of our Board since 1999 and is currently our Board’s Lead Independent Director. Dr. Raffin has spent 30 years on the faculty at Stanford University School of Medicine, where he is the Colleen and Robert Haas Professor Emeritus of Medicine and Biomedical Ethics. Over the past two decades, Dr. Raffin has worked extensively in the healthcare and medical device business sectors and was an advisor to Cell Therapeutics Inc. from 1993 to 1997, Broncus Technologies from 1997 to 2004, iMedica from 1998 to 2002, and Inhale Technologies from 1998 to 2001. He co-founded Rigel Pharmaceuticals, a publicly tradedpublic company in 1996. In 2001, he co-founded Telegraph Hill Partners, a San Francisco life sciences private equity firm as a General Partner. Dr. Raffin has been a director of the following Telegraph Hill Partners private portfolio companies: AngioScore, Confirma, Freedom Innovations, LDR Holding Corporation, Magstim and PneumRx; and he has worked closely with Estech and Vidacare. Dr. Raffin received a B.A. from Stanford University and an M.D. from Stanford University School of Medicine and did his medical residency at the Peter Bent Brigham Hospital (now Brigham and Women's Hospital) in Boston, MA.

Our Board believes that Dr. Raffin’s extensive medical and business backgroundofficer and experience provides important experience in business operations and medical technology and providesoverseeing various legal matters provide him with the background necessary for him to serve as a member of our Board, our Compensation Committee and our Nominating and Corporate Governance Committee.

OUR BOARD OF DIRECTORS RECOMMENDS A VOTE IN FAVOR OF EACH DIRECTOR NOMINEE.
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Class III Directors Continuing in Office Until the 2018 Annual Meeting of Stockholders
Ernest J. Talarico, IIILota S. Zoth, CPA, AIF, age 46,61, has served as a member of our Board since 1999. Mr. Talarico has worked for Mesirow Financial Holdings, Inc., a diversified financial services firm headquartered in Chicago, Illinois since 1998, where he has been a Senior Managing Director since December 2015. Prior to becoming Senior Managing Director, Mr. Talarico served as Managing Director from 2008 to 2015, Senior Vice President from 2005 to 2008, Vice President from 2003 to 2005 and Investment Executive from 1998 to 2003. Mr. Talarico specializes in financial planning and asset allocation, as well as other wealth accumulation and preservation strategies for individuals and businesses. Mr. Talarico has been named one of Chicago Magazine’s Five Star Wealth Managers for seven years in a row as selected through an independent survey to identify Chicagoland wealth managers who scored the highest in overall client satisfaction. Mr. Talarico sits on several boards and committees, including the Select Advisory Board and Committee and the Retirement Plan Advisory Investment Committee at Mesirow Financial and Benevolent Enabler, Inc., and the Advisory Board of Catholic Charities for the Archidiocese of Chicago. Mr. Talarico is also the Founder and Chairman of the Talarico Ataxia Open. Mr. Talarico holds a bachelor's degree from the University of Iowa as well as licenses in equities and options.
Our Board believes that Mr. Talarico’s experience with our Company, as a director since inception and as a member of both our Compensation Committee and our Audit Committee of our Board, brings continuity to our Board. In addition, our Nominating and Corporate Governance Committee believes that Mr. Talarico’s extensive experience in the investment management business provides important experience in corporate finance and investor relations and provides the background necessary for him to serve as a member of our Compensation Committee and our Audit Committee.
Lota S. Zoth, CPA, age 57, has served as a member of our Board and Chair of ourthe Audit Committee since November 2012. Since 2008, Ms. Zoth has servedcurrently serves on the Board of Directors of several biopharmaceutical organizations, including OrexigenSpark Therapeutics, Inc. (NASDAQ: OREX)(Nasdaq: ONCE), Aeras, Circassia Pharmaceuticals, PLC (LSE:CIR.L)89Bio, Inc., Spark Therapeutics, Inc (NASDAQ: ONCE) and Zymeworks, Inc. and Inovio Pharmaceuticals, Inc. She also previously served on the Board of Directors for nonprofit Aeras from 2011 to 2018, Circassia Pharmaceuticals, PLC from 2015 to 2019, Hyperion Therapeutics, Inc. from 2008 to May 2015, and Ikaria, Inc. from 2008 to 2014.2014 and Orexigen Therapeutics, Inc. from 2012 to 2019. Prior to her board service, Ms. Zoth served as Chief Financial Officer of MedImmune, Inc. from 2004 through 2007, and as its Corporate Controller from 2002 to 2004. Prior to that, Ms. Zoth was a financial executive at several companies, including Sodexho Marriott Services, Inc., PSINet Inc., Marriott International, Inc. and PepsiCo, Inc. Ms. Zoth began her career as an auditor at Ernst & Young, LLP. Ms. Zoth received a BBA in accounting, summa cum laude, from Texas Tech University.

Our Board believes that Ms. Zoth’s experience with our Company, as a director since 2012 and as the current chair of our Audit Committee of our Board and a member of our Compensation Committee of our Board, brings continuity to our Board. In addition, our Nominating and Corporate Governance Committee believes that Ms. Zoth’s extensive financial background and experience provides important experience in corporate finance, corporate management, and investor relations and provides the background necessary for her to serve as a member of our Audit Committee and our Compensation Committee.


OUR BOARD OF DIRECTORS RECOMMENDS A VOTE IN FAVOR OF EACH DIRECTOR NOMINEE.


Class I Directors Continuing in Office Until the 20192022 Annual Meeting of Stockholders
Paul R. Edick,An van Es-Johansson, M.D. age 61, has served as a member of our Board since February 2021. Dr. van Es-Johansson currently serves as a senior advisor for AlzeCure Pharma, a Swedish pharmaceutical company with a primary focus on Alzheimer's disease. Dr. van Es-Johansson was previously the Chief Medical Officer and Head of Development for AlzeCare Pharma from 2018 to 2021. From 2005 to 2018, Dr. van Es-Johansson served in a range of executive roles of increasing responsibility at Sobi, an international rare disease company headquartered in Stockholm, Sweden. Dr. van Es-Johansson also served as a member of the Scientific Advisory board for Uppsala Bio from 2004 to 2016 and currently serves on the Board of Directors at Medivir AB, Savara Inc., PLUS Therapeutics and Agendia BV. Dr. van Es-Johansson received an M.D. from Erasmus University, Rotterdam, The Netherlands.

Our Board believes that Dr. van Es-Johansson's vast experience in the pharmaceutical industry with a focus on growth hormone disorders and other rare diseases provides immense value to our Board.     

Kevin Lalande, age 48, has served as a member of the Private Lumos Board since 2014. Mr. Lalande is also a Co-Founder and Managing Director of Santé Ventures, a healthcare and life science venture capital firm founded in 2006 which currently manages $380 million across three funds with 30 portfolio company investments. Mr. Lalande is also the Founder and Chief Investment Officer of Santé Capital, a systematic machine learning hedge fund that began trading capital in 2015 after three years of research and development. Mr. Lalande conceived the investment strategy, designed the original MindRank algorithms, and assembled a seasoned team to help drive this related line of business. Before Santé Ventures and Santé Capital, Mr. Lalande spent seven years as an investment professional with Austin Ventures, a prominent venture capital firm with $4.0 billion under management. Prior to Austin Ventures, he was a management consultant with McKinsey & Company. Before McKinsey, he founded, built and sold three internet-based companies in the 1990s. Mr. Lalande received a B.S. in electrical and computer engineering with honors in 1996 from Brigham Young University and an MBA with highest distinction from the Harvard Business School in 2001, where he was both a Baker Scholar and a Siebel Scholar.

    Our Board believes that Mr. Lalande’s extensive experience as an investor and board member in pharmaceutical and life sciences companies and his knowledge gained from service on such boards qualify him to be a member of our Board.
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Joseph S. McCracken, age 67, has served as a member of our Board since March 2020. Dr. McCracken currently advises biopharmaceutical companies on the design and implementation of corporate strategy and business development initiatives. Dr. McCracken also serves on the board of Kindred Biosciences, Inc. (NASDAQ: KIN), Savara Inc. (NASDAQ: SVRA) and Modalis Therapeutics, Inc. (TSE: 4883.T), as well as the boards of privately held Regimmune Inc., and Neuropore Therapies, Inc. From July 2011. Mr. Edick became2011 to September 2013, Dr. McCracken was Vice President and Global Head of Business Development & Licensing for Roche Pharma, a research-focused healthcare company, where he was responsible for Roche Pharma’s global in-licensing and out-licensing activities. From October 2009 until July 2011, he was General Manager, Roche Pharma Japan & Asia Regional Head, Roche Partnering. Prior to joining Roche Pharma, Dr. McCracken held the position of Vice President, Business Development at Genentech for more than 9 years, and previously held similar positions at Aventis Pharma and Rhone-Poulenc Rorer. Dr. McCracken holds a B.S. in microbiology, a Master of Science in pharmacology and a Doctorate of Veterinary Medicine from The Ohio State University.

    Our Board believes that Dr. McCracken’s extensive experience in the biotechnology and pharmaceutical industries qualifies him to serve on our Board.

Class II Directors Continuing in Office Until the 2023 Annual Meeting of Stockholders

Richard J. Hawkins, age 72, has served as President and Chief Executive Officer and as a member of Xeristhe board of directors of Private Lumos (the “Private Lumos Board”) since January 2011. In addition, Mr. Hawkins currently serves on the board of directors of several life sciences companies, including Cytori Therapeutics, Inc. (Nasdaq: CYTX) and Savara Inc. (Nasdaq: SVRA), and previously served on the board of directors of SciClone Pharmaceuticals, Inc. until its acquisition in January 2017 and is a founding partner of 3G Advisors.October 2017. From July 2010 until November 2014, Mr. Edick was the Chief Executive Officer of Durata Therapeutics, a start-up biopharmaceutical company that was acquired by Actavis in November 2014. From 20082000 to 2010, Mr. Edick was Chief Executive Officer of Ganic Pharmaceuticals, a Warburg Pincus specialtyHawkins, founded and advised numerous pharmaceutical investment vehicle. From 2006 to 2008, Mr. Edick was Chief Executive Officer of MedPointe Healthcare Inc., a specialty pharmaceutical company until its acquisition by Meda. From 2002 to 2006, Mr. Edick was President of MedPointe Healthcare Inc. From 1994 to 2002, Mr. Edick worked in a series of positions at G. D. Searle and its acquirer, Pharmacia Corporation,companies including Sensus, where he led G. D. Searle's U.S. managed care organization from 1994served as co-founder and Chairman until it was sold to 1995, its U.S. marketing organization from 1995Pfizer. From 1981 to 1996 and its Global Pain & Inflammation Business from 1996 to 1997. In 1998,2000, Mr. EdickHawkins was named G. D. Searle's VP-Canada & Latin America. In 1999, Mr. Edick became President of Asia Pacific, Canada & Latin America. In 2000, upon Pharmacia's acquisition of G. D. Searle, Mr. Edick was named Group Vicefounder, President and President, Asia Pacific/Latin America at Pharmacia.CEO of Pharmaco. The company later merged with PPD of Wilmington, NC to form PPD Pharmaco, one of the largest clinical contract research organizations in the world. Mr. Edick is currently a director for PDL BioPharma (NASDAQ: PDLI), Iterum Therapeutics, Sucampo Pharmaceuticals (NASDAQ: SCMP) and Neos Therapeutics (NASDAQ: NEOS). Mr. Edick was previously a Director of Circassia Pharmaceuticals Ltd. (LSE: CIR.L)Hawkins received his B.S. degree in biology from 2013 to 2016, Life Cycle Pharma (now Veloxis) from 2009 to 2011, Amerita, Inc. from 2006 to 2012 and Informed Medical Communications from 2006 to 2011. Mr. Edick holds a B.A. in Psychology from Hamilton College in Clinton, NY.Ohio University.

Our Board believes that Mr. Edick’sHawkins’s experience within the pharmaceutical and life sciences industries as well as his broad management experience qualify him to serve on our Company, as a director since 2011 andBoard.
Thomas A. Raffin, M.D., age 74, has served as a member of both our Audit Committeethe Board since 1999 and our Nominatinghas been the Board’s Lead Independent Director since October 2010. Dr. Raffin has spent 30 years on the faculty at Stanford University School of Medicine, where he is the Colleen and Corporate Governance CommitteeRobert Haas Professor Emeritus of ourMedicine and Biomedical Ethics. Over the past two decades, Dr. Raffin has worked extensively in the healthcare and medical device business sectors and was an advisor to Cell Therapeutics Inc. from 1993 to 1997, Broncus Technologies from 1997 to 2004, iMedica from 1998 to 2002, and Inhale Technologies from 1998 to 2001. He co-founded Rigel Pharmaceuticals, a publicly traded company (Nasdaq: RIGL), in 1996. In 2001, he co-founded Telegraph Hill Partners, a San Francisco life sciences private equity firm as a General Partner. Dr. Raffin has been a director of the following Telegraph Hill Partners private portfolio companies: AngioScore, Inc., Confirma, Inc., Freedom Innovations, LDR Holding Corporation, PneumRx, Inc., Akoya BioSciences, Inc. and InvisALERT Solutions. Dr. Raffin received a B.A. from Stanford University and an M.D. from Stanford University School of Medicine and did his medical residency at the Peter Bent Brigham Hospital (now Brigham and Women’s Hospital) in Boston, MA.

    Our Board brings continuity to our Board. In addition, our Nominating and Corporate Governance Committee believes that Mr. Edick’sDr. Raffin’s extensive medical and business background and experience in the pharmaceutical industry provides important experience in corporate mattersbusiness operations and medical technology and provides the background necessary for him to serve as a member of our Audit Committee and our Nominating and Corporate Governance Committee.

Joseph B. Saluri, age 50, has served has served as a member of our Board since May 2010.  Mr. Saluri has served on the Board of Directors of KemPharm Inc. (NASDAQ: KMPH) since 2014.  Mr. Saluri serves on the KemPharm Board as Chairman of the Nominating and Governance Committee and a member of the Audit Committee.  Mr. Saluri served as the Vice-President and General Counsel for Stine Seed Company and its affiliates from July 1999 to March 2017.  Previous to his employment with Stine, Mr. Saluri was an attorney and solicitor at law with Nicholas Critelli Associates, PC, in Des Moines and London.  Mr. Saluri received a B.S./B.A. from Drake University and a J.D. from Drake University Law School. 

Our Board believes that Mr. Saluri’s experience with our Company, as a director since 2010 and as a member of both our Compensation Committee and our Nominating and Corporate Governance Committee, of our Board, brings continuity to our Board. In addition, our Nominating and Corporate Governance Committee believes that Mr. Saluri’s extensive legal background and experience provides important experience in corporate management, finance and investor relations and providesas the background necessary for him to serve as a memberChair of our Compensation Committee and our Nominating and Corporate Governance Committee.

Nicholas N. Vahanian, M.D., age 49, a co-founder of our Company, has served as President and Chief Medical Officer of our Company since 2009 and previously served as Chief Operations Officer. Dr. Vahanian began his research career at the National Cancer Institute and subsequently worked at the National Center for Human Genome Research Institute, National Institute of Health. He attended St Bartholomew’s and Royal London Hospital Medical College and earned his Medical Degree and subsequently completed a Molecular Oncology Fellowship at the John Stoddard Cancer Research Institute. Dr. Vahanian holds a B.S. in Biology from Virginia Commonwealth University and an MBA from the University of Notre Dame.

9
Our Board believes that Dr. Vahanian’s experience with our Company as a founder and executive officer since inception and his extensive medical and scientific background provides important experience, expertise and leadership to our Board as our Company continues to grow.




INFORMATION REGARDING OUR BOARD OF DIRECTORS AND CORPORATE GOVERNANCE

Independence of our Board of Directors

In determining independence, our Board considers the definition of “independent” set forth in the listing standards of the NASDAQ Stock Market, or NASDAQ, as well as other factors that contribute to effective oversight and decision-making by our Board. Our independence standards are set forth in our Corporate Governance Guidelines on our website at www.newlinkgenetics.comwww.lumos-pharma.com in the “Investors & Media - Corporate Governance - Corporate Governance Guidelines”Governance” section. As required under the NASDAQ listing standards, a majority of the members of a listed company’s board of directors must qualify as “independent,” as affirmatively determined by our Board. Our Board consults with our counsel to ensure that our Board’s determinations are consistent with relevant securities and other laws and regulations regarding the definition of “independent,” including those set forth in pertinent listing standards of NASDAQ, as in effect from time to time.

Consistent with these considerations, after review of all relevant identified transactions or relationships between each director, or any of his or her family members and our Company, its senior management and its independent auditors, our Board has affirmatively determined that the following six directors who served on our Board in 2016 and continue to serve (including nominees for election at the Annual Meeting, Mr. Pucci and Dr. Raffin) are independent directors within the meaning of the applicable NASDAQ listing standards: Dr. van Es-Johansson, Mr. Edick,Johnson, Mr. Saluri, Mr. Talarico, Ms. Zoth,Lalande, Dr. McCracken, Dr. Raffin and Mr. Pucci.Ms. Zoth. In making this determination,its independence assessments, our Board found that none of these directors or nominees for director had a material or other disqualifying relationship with our Company.

Drs. Charles J. Link, Jr., and Nicholas N. Vahanian are    Mr. Hawkins is not an independent directorsdirector by virtue of theirhis employment with our Company.

There are no family relationships betweenamong any of our directors, director nominees and executive officers.

Board Leadership

Our Board is currently chaired by the President and Chief Executive Officer of our Company, Dr. Charles J. Link, Jr.Mr. Hawkins. Our Board has appointed Dr. Raffin as Lead Independent Director.

Our Company believes that combining the positions of Chief Executive Officer and Chairman of our Board, which we refer to as the Chairman, helps to ensure that our Board and management act with a common purpose. We believe combining the positions of Chief Executive Officer and Chairman is appropriate for a biopharmaceutical company focused on drug development in that it enhances our Board’s focus on our progress on scientific research, clinical trials and commercialization as inputs to developing and implementing strategy. Our Company believes that combining the positions of Chief Executive Officer and Chairman provides a single, clear chain of command to execute our strategic initiatives and business plans related to drug development and commercialization. In addition, our Company believes that a combined Chief Executive Officer/Officer and Chairman is well-positioned to act as a bridge between management and our Board, facilitating the regular flow of information. Our Company also believes that it is advantageous to have a Chairman with an extensive history with and knowledge of our Company (as is the case with our Chief Executive Officer) as compared to a relatively less informed independent Chairman at this stage in our development.

Our Board appointed Dr. Raffin as the Lead Independent Director to help reinforce the independence of our Board as a whole. The position of Lead Independent Director has been structured to serve as an effective balance to a combined Chief Executive Officer/Chairman: theOfficer and Chairman. The Lead Independent Director is empowered, among other duties and responsibilities, to develop, together with the Chief Executive Officer, the agenda for meetings of our Board, to develop, together with committee chairs, the agendas for meetings of committees, to preside over Board meetings in the absence of the officers and to oversee our Board’s annual evaluation of the Chief Executive Officer’s performance.


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Role of Our Board of Directors on Risk Oversight

One of our Board’s key functions is informed oversight of our risk management process. Our Board does not have a standing risk management committee, but rather administers this oversight function directly through our Board as a whole, as well as through various Board standing committees that address risks inherent in their respective areas of oversight. In particular, while our Board is responsible for monitoring and assessing strategic risk exposure, our Audit Committee has the responsibility to consider and discuss the major financial risk exposures and the steps management has taken to monitor and control these exposures, including guidelines and policies to govern the process by which risk assessment and management is undertaken. Our Audit Committee also monitors compliance with legal and regulatory requirements with respect to SEC regulations, and NASDAQ listing standards, pharmaceutical industry regulations and corporate risk management, in addition to oversight of the performance of our accounting and financial reporting processes. Our Nominating and Corporate Governance Committee monitors the effectiveness of the corporate governance guidelines, including whether they are successful in preventing illegal or improper liability-creating conduct. Our Compensation Committee assesses and monitors whether any compensation policies and programs have the potential to encourage excessive risk-taking. The entire Board and its committees address risk management issues from time-to-time and meet at least annually with the employees responsible for risk management in the committees’ respective areas of oversight. Both our Board as a whole and the various standing committees receive periodic reports from the employees responsible for risk management, as well as incidental reports as matters may arise. It is the responsibility of the committee chairs to report findings regarding material risk exposures to our Board as quickly as possible.

Meeting Attendance

Our Board met sevennine times during the last fiscal year.year ended December 31, 2020. Our Audit Committee met five times during the 20162020 fiscal year, our Compensation Committee met eightsix times during the 20162020 fiscal year, and our Nominating and Corporate Governance Committee met four times. Eachthree times during the 2020 fiscal year. None of our incumbent directordirectors attended 100%fewer than 75% of the aggregate number of meetings of ourthe Board and committee meetings of the committees on which he or she served, that were held during the portion of the last fiscal year for which he or she was a member.

    It is our policy to encourage directors and nominees for director or committee member withto attend the exception that Mr. Talarico was absent fromAnnual Meeting. Four of our directors attended the Boardvirtual 2020 Annual Meeting of Directors meetings that took place on May 6 and July 15, 2016.Stockholders.

Committees of our Board of Directors
Our Board has three standing committees:an Audit Committee, a Compensation Committee and a Nominating and Corporate Governance Committee.    The following table sets forth the current membership of each of our committees as of March 27, 2017:
Audit Committee, Compensation Committee and Nominating and Corporate Governance Committee:
NameAuditCompensationNominating and Corporate Governance
Dr. Charles J. Link, Jr.An van Es-Johansson, M.D.X
Dr. Chad A. JohnsonXChair
Kevin LalandeX
Joseph McCrackenX
Thomas A. Raffin, M.D.ChairX
Mr. Joseph B. SaluriXX
Mr. Ernest J. Talarico, IIIXX
Mr. Paul R. EdickXX
Ms. Lota S. ZothChairX
Dr. Nicholas N. Vahanian
Mr. Paolo PucciXChair
Each of the committees has authority to engage legal counsel or other experts or consultants, as it deems appropriate to carry out its responsibilities. Our Board has determined that, except as specifically described below, each current member of each committee meets the applicable NASDAQ rules and regulations regarding “independence” and that each member is free of any relationship that would impair his or her individual exercise of independent judgment with regard to the Company.
Below is a description of each committee of our Board.

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Audit Committee
Our Audit Committee was established by our Board in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934, as amended, or the Exchange Act, to oversee our corporate accounting and financial reporting processes and audits


of its financial statements. For this purpose, our Audit Committee performs several functions. Our Audit Committee evaluates the performance of and assesses the qualifications of the independent auditors; determines and approves the engagement of the independent auditors; determines whether to retain or terminate the existing independent auditors or to appoint and engage new independent auditors; reviews and approves the retention of the independent auditors to perform any proposed permissible non-audit services; monitors the rotation of partners of the independent auditors on our audit engagement team as required by law; confers with management and the independent auditors regarding the effectiveness of internal controls over financial reporting; establishes procedures, as required under applicable law, for the receipt, retention and treatment of complaints received by the Company regarding accounting, internal accounting controls or auditing matters and the confidential and anonymous submission by employees of concerns regarding questionable accounting or auditing matters;matters, oversees corporate risk management of the company as a whole; and meets to review our annual audited financial statements and quarterly financial statements with management and the independent auditor, including a review of our disclosures in our Annual Report on Form 10-K under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

Our Audit Committee is currently comprised of fourthree directors: Ms. Zoth, Mr. Edick, Mr. Talarico,Johnson and Mr. Pucci.Dr. McCracken. Our Board has adopted a written Audit Committee charter that is available to stockholders on our website at www.newlinkgenetics.comwww.lumos-pharma.com in the “Investors & Media - Corporate Governance” section.

Our Board reviews the NASDAQ listing standards definition of independence for Audit Committee members on an annual basis and has determined that each current member of our Audit Committee meets the independence requirement (as independence is currently defined in Rule 5605(c)(2)(A)(i) and (ii) of the NASDAQ listing standards).

Our Board has also determined that Ms. Zoth qualifies as an “audit committee financial expert,” as defined in applicable SEC rules. Our Board made a qualitative assessment of Ms. Zoth’s level of knowledge and experience based on a number of factors, including her formal education and her years of experience.

Compensation Committee
The Compensation Committee of our Board is currently comprised of fourthree directors: Dr. Raffin, Mr. Saluri, Mr. TalaricoLalande, and Ms. Zoth. All current members of our Compensation Committee are independent (as independence is currently defined in Rule 5605(d)(2) of the NASDAQ listing standards). Additionally, all current members of our Compensation Committee are "outside directors"“outside directors” for 162(m) purposes and non-employee directors under Rule 16b-3 of the Exchange Act. Our Board has adopted a written Compensation Committee charter that is available to stockholders on our website at www.newlinkgenetics.comwww.lumos-pharma.com in the “Investors & Media - Corporate Governance” section.

The purpose of our Compensation Committee is to discharge the responsibilities of our Board to oversee our compensation policies, plans and programs and to review and determine the compensation to be paid to our directors, executive officers and other senior management. The scope of authority and specific responsibilities of our Compensation Committee include:

determining the compensation and other terms of employment of our executive officers and reviewing and approving corporate performance goals and objectives relevant to such compensation;
evaluating and recommending to our Board the compensation plans and programs advisable for the Company, and evaluating and recommending the modification or termination of existing plans and programs;
reviewing and approving the terms of any employment agreements, severance arrangements, change in control protections and any other compensatory arrangements for our executive officers;
selecting, retaining and terminating compensation consultants to assist in its evaluation of executive and director compensation, including the sole authority to approve the consultant’s reasonable fees and other retention terms; and
reviewing and recommending to our Board the type and amount of compensation to be paid or awarded to members of our Board.

EachFor fiscal year 2020, our Compensation Committee reviews with managementretained Setren & Associates, Inc. ("Setren & Associates"), as its independent compensation consultant to advise on various aspects of executive compensation and our overall equity practices. Setren & Associates was retained by and reported directly to our Compensation Discussion and Analysis and considers whetherCommittee. Setren & Associates did not provide any other consulting services to recommend that it be included in proxy statements and other filings.our Company.

12


Annually, our Compensation Committee Interlockshas considered the following six factors, as set forth by the SEC and Insider Participation

ForNASDAQ, when engaging Setren & Associates and evaluating its independence: (i) the fiscal year ended December 31, 2016, membersprovision of other services to our Company by Setren & Associates; (ii) the amount of fees from our Company paid to Setren & Associates as a percentage of Setren & Associates' total revenue; (iii) Setren & Associates' policies and procedures that are designed to prevent conflicts of interest; (iv) any business or personal relationship of Setren & Associates with an executive officer of our Company; (v) any business or personal relationship of the individual compensation advisor with any member of our Compensation Committee consistedCommittee; and (vi) any stock of Dr. Raffin, Mr. Talarico, Mr. Saluri and Ms. Zoth. None of the members ofour Company owned by Setren & Associates. Based on its review, our Compensation Committee are currently, or have ever been at any time since our formation, one of our officers or employees. None of our officers currently serve, nor have they served during the last completed fiscal year, as a member of the board or compensation committee of any entity that has one or more officers serving as a member of our Board or Compensation Committee.



Compensation Committee Report(1)
This Compensation Committee Report shall not be deemed to be incorporated by reference into any filing made by the Company under the Securities Act of 1933 or the Exchange Act, notwithstanding any general statement contained in any such filing incorporating this proxy statement by reference, except to the extent the Company incorporates such Report by specific reference.
The Committee has reviewed and discussed the Compensation Discussion and Analysis with the management of the Company. Based on this review and these discussions, we have recommended to the Board of Directorsdetermined that the Compensation Discussion and Analysis be included in the Company’s Annual Report on Form 10-K and the Company’s proxy statement.
The preceding reportwork of Setren & Associates has been furnished by the following membersnot raised any conflict of the Compensation Committee:
Dr. Thomas A. Raffin
Joseph B. Saluri
Ernest J. Talarico, III
Ms. Lota Zoth

interest that would adversely affect Setren & Associates' independence.
(1) The material in this report is not “soliciting material,” is not deemed “filed” with the Commission and is not to be incorporated by reference in any filing of the Company under the Securities Act or the Exchange Act, whether made before or after the date hereof and irrespective of any general incorporation language in any such filing.

Nominating and Corporate Governance Committee
    
Our Nominating and Corporate Governance Committee of our Board is responsible for overseeing our corporate governance functions on behalf of our Board, making recommendations to our Board regarding corporate governance issues, identifying, reviewing and evaluating candidates to serve as directors of the Company consistent with criteria approved by our Board, reviewing and evaluating incumbent directors, recommending to our Board for selection candidates for election to our Board and making other recommendations to our Board regarding affairs relating to the directors of the Company, including director compensation.
    
Our Nominating and Corporate Governance Committee is currently comprised of fourthree directors: Mr. Pucci,Johnson, Dr. Raffin, Mr. Salurivan Es-Johansson and Mr. Edick.Dr. Raffin. Prior to his resignation in February of 2021, Dr. Cunningham was a member of our Nominating and Corporate Governance Committee. All current members of our Nominating and Corporate Governance Committee are independent (as independence is currently defined in Rule 5605(a)(2) of the NASDAQ listing standards). Our Board has adopted a written Nominating and Corporate Governance Committee charter that is available to stockholders on our website at www.newlinkgenetics.comwww.lumos-pharma.com in the “Investors & Media - Corporate Governance” section.

Our Nominating and Corporate Governance Committee believes that candidates for director should have certain minimum qualifications, including the ability to read and understand basic financial statements, being over 21 years of age and having the highest personal integrity and ethics. Our Nominating and Corporate Governance Committee also considers whether the candidate possesses the following factors among others: relevant expertise upon which to base advice and guidance to management, sufficient time to devote to the affairs of the Company, demonstrated excellence in his or her field, the ability to exercise sound business judgment and the commitment to rigorously represent the long-term interests of our stockholders. Candidates for director nominees are reviewed in the context of the current composition of our Board, the operating requirements of the Company and the long-term interests of stockholders. In conducting this assessment, our Nominating and Corporate Governance Committee typically considers diversity, age, skills and such other factors as it deems appropriate given the current needs of our Board and the Company to maintain a balance of knowledge, experience and capability. Our Nominating and Corporate Governance Committee does not have a policy regarding how it considers diversity in selecting candidates.

In the case of incumbent directors whose terms of office are set to expire, our Nominating and Corporate Governance Committee reviews these directors’ overall service to the Company during their terms, including the number of meetings attended, level of participation, quality of performance and any relationships and transactions that might impair the directors’ independence. Our Nominating and Corporate Governance Committee also takes into account the results of our Board’s self-evaluation, conducted annually on a group and individual basis. In the case of new director candidates, our Nominating and Corporate Governance Committee also determines whether the nominee is independent for NASDAQ purposes, which determination is based upon applicable NASDAQ listing standards, applicable SEC rules and regulations and the advice of counsel, if necessary. Our Nominating and Corporate Governance Committee then uses its network of contacts to compile a list of potential candidates, but may also engage, if it deems appropriate, a professional search firm. Our Nominating and Corporate Governance Committee conducts any appropriate and necessary inquiries into the backgrounds and qualifications of possible candidates after considering


the function and needs of our Board. Our Nominating and Corporate Governance Committee meets to discuss and consider the candidates’ qualifications and then selects a nominee for recommendation to our Board by majority vote. During 2015, our Nominating and Corporate Governance Committee retained and paid a search firm to assist in the identification and evaluation of candidates for director.
    
In identifying potential candidates for Board membership, our Nominating and Corporate Governance Committee relies on suggestions and recommendations from our Board, stockholders, management and others. Our Nominating and Corporate Governance Committee will consider director candidates recommended by stockholders. Our Nominating and Corporate Governance Committee does not intend to alter the manner in which it evaluates candidates, including the minimum criteria set forth above based on whether or not the candidate was recommended by a stockholder.

13


Code of Business Conduct and Ethics

The Company has adopted the NewLink Genetics Corporationits Code of Business Conduct and Ethics that applies to all officers, directors and employees. The Code of Business Conduct and Ethics is available on our website at www.newlinkgenetics.comwww.lumos-pharma.com in the “Investors & Media - Corporate Governance” section. The Company amended the code of ethics in October 2015 and anyAny future amendments or waivers to our code of ethics will be promptly disclosed on its website and as required by applicable laws, rules and regulations of the SEC and NASDAQ.

Corporate Governance Guidelines
Our Board adopted Corporate Governance Guidelines to assure that our Board will have the necessary authority and practices in place to review and evaluate our business operations as needed and to make decisions that are independent of our management. The guidelines are also intended to align the interests of directors and management with those of our stockholders. The Corporate Governance Guidelines set forth the practices our Board intends to follow with respect to board composition and selection, board meetings and involvement of senior management, Chief Executive Officer performance evaluation and succession planning and board committees and compensation. The Corporate Governance Guidelines, as well as the charters for each committee of our Board, may be viewed at www.newlinkgenetics.comwww.lumos-pharma.com in the “Investors & Media - Corporate Governance” section.


14


PROPOSAL 2
ADVISORY VOTE ON COMPENSATION OF OUR NAMED EXECUTIVE COMPENSATIONOFFICERS
At the 20122018 Annual Meeting of Stockholders, theour stockholders indicated their preference that the Company solicit a non-binding advisory vote on the compensation of the named executive officers, commonly referred to as a “say-on-pay vote,” every year. Our Board has adopted a policy that is consistent with that preference.
This vote is being provided pursuant to section 14A of the Securities Exchange Act. It is not intended to address any specific item of compensation, but rather the overall compensation of our named executive officers and the philosophy, policies and practices described in this proxy statement. The compensation of our named executive officers subject to the vote is disclosed in the Compensation Discussion and Analysis, the compensation tables and the related narrative disclosure contained in this proxy statement. As discussed in those disclosures, the Company believes that its compensation policies and decisions are consistent with our strategic compensation and retention needs. Further, our compensation policies and decisions are designed to align itsour executive officers’ compensation with our business objectives and the interests of its stockholders, to incentivize and reward itsour executive officers for our success and to promote teamwork within our executive management team. Compensation of our named executive officers is designed to enable the Company to attract and retain talented and experienced executives to lead the Company successfully in a competitive environment.
Accordingly, our Board is asking the stockholders to indicate their support for the compensation of our named executive officers as described in this proxy statement by casting a non-binding advisory vote “FOR” the following resolution:
“RESOLVED, that the compensation paid to our named executive officers, as disclosed pursuant to Item 402 of Regulation S-K, including the Compensation Discussion and Analysis, compensation tables and narrative discussion, is hereby APPROVED.”
Because the vote is advisory, it is not binding on our Board or our Company. Nevertheless, the views expressed by the stockholders, whether through this vote or otherwise, are important to management and our Board and, accordingly, our Board and our Compensation Committee intend to consider the results of this vote in making determinations in the future regarding executive compensation arrangements.
Advisory approval of this proposal requires the vote of the holders of a majority of the shares present in person at the Annual Meeting or represented by proxy and entitled to vote on the matter at the Annual Meeting. Abstentions will be counted toward the tabulation of votes on proposals presented to the stockholders and will have the same effect as negative votes. Broker non-votes are counted toward a quorum, but are not counted for any purpose in determining whether this matter has been approved.
Unless our Board decides to modify its policy regarding the frequency of soliciting advisory votes on the compensation of our named executive officers, the next scheduled say-on-pay vote will be at the 20182024 Annual Meeting of Stockholders.

OUR BOARD OF DIRECTORS RECOMMENDS A VOTE IN FAVOR OF PROPOSAL 2.



15


PROPOSAL 3
RATIFICATION OF SELECTION OF KPMG LLP AS INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Our Audit Committee has selected KPMG LLP as our independent registered public accounting firm for the fiscal year ending December 31, 20172021 and has further directed that management submit the selection of independent registered public accounting firm for ratification by the stockholders at the Annual Meeting. KPMG LLP has audited our financial statements since inception in 1999. Prior to the Merger, KPMG LLP audited Private Lumos' financial statements since 2015. Representatives of KPMG LLP are expected to be presentavailable at the Annual Meeting. They will have an opportunity to make a statement if they so desire and will be available to respond to appropriate questions.

Neither our Bylaws nor other governing documents or law require stockholder ratification of the selection of KPMG LLP as our independent registered public accounting firm. However, our Audit Committee is submitting the selection of KPMG LLP to the stockholders for ratification as a matter of good corporate practice. If the stockholders fail to ratify the selection, our Audit Committee will reconsider whether or not to retain that firm. Even if the selection is ratified, our Audit Committee in its discretion may direct the appointment of different independent auditors at any time during the year if they determine that such a change would be in the best interests of our Company and our stockholders.

The affirmative vote of the holders of a majority of the shares present in personat the Annual Meeting or represented by proxy and entitled to vote on the matter at the Annual Meeting will be required to ratify the selection of KPMG LLP. Abstentions will be counted toward the tabulation of votes on proposals presented to the stockholders and will have the same effect as negative votes. Broker non-votes are counted towards a quorum, but are not counted for any purpose in determining whether this matter has been approved.
Principal Accountant Services and Fees
The following table representspresents the aggregate fees billed to the Company for the fiscal years ended December 31, 20162020 and December 31, 2015,2019, by KPMG LLP, our principal accountant. All tax fees described below were pre-approved by our Audit Committee.
Year Ended
20162015Year Ended
 20202019
Audit Fees (1)
$507,750$577,300
Audit Fees (1)
$638,500$475,090
Audit-related Fees

Audit-related Fees0
Tax Fees (2)
$140,607$202,048
Tax Fees (2)
$261,517$194,529
All Other Fees

All Other Fees0
Total Fees$648,357$779,348Total Fees$900,017$669,619

(1)Represents fees for the audit of our annual financial statements, and of our internal control over financial reporting, review of our quarterly financial statements included in our Forms 10-Q, accounting consultations and the issuance of consents and comfort letters.

(2)Consists of fees for tax services provided to the Company, including tax planning and compliance services and the review of certain tax returns.returns.

16


Prior to the completion of the Merger, KPMG LLP served as the independent registered accounting firm, of Private Lumos for the year ended December 31, 2019 and for the 2020 period up to the completion of the Merger on March 18, 2020. The following table presents the aggregate fees billed by KPMG LLP to Private Lumos during those periods:
Year Ended
20202019
Audit Fees (1)
$120,000$140,282
Audit-related Fees00
Tax Fees00
All Other Fees00
Total Fees$120,000$140,282

(1)Represents fees for the audit of our annual financial statements, review of our quarterly financial statements included in our Forms 10-Q, accounting consultations and the issuance of consents and comfort letters.

Pre-Approval Policies and Procedures

Our Audit Committee has adopted a policy and procedures for the pre-approval of audit services, audit-related services and tax services rendered by our independent registered public accounting firm. The policy generally pre-approves specified services in the defined categories of audit services, audit-related services, and tax services up to specified amounts. Pre-approval may also be given as part of our Audit Committee’s approval of the scope of the engagement of the independent registered public accounting firm or on an individual explicit case-by-case basis before the independent registered public accounting firm is engaged to provide each service. The pre-approval of services has been delegated to the Chairperson of our Audit Committee, but the decision must be reported to the full Audit Committee at its next scheduled meeting.



In connection with the audit of the 20162020 financial statements, our Audit Committee entered into an engagement agreement with KPMG LLP which sets forth the terms by which KPMG LLP was to perform audit services for the Company.
    
Report of Our Audit Committee (1)

Our Audit Committee has reviewed and discussed the audited financial statements for the fiscal year ended December 31, 20162020 with management of the Company. Our Audit Committee has discussed with the independent registered public accounting firm the matters required to be discussed by Auditing Standard No. 16,1301, Communications with Audit Committee, as adopted by the Public Company Accounting Oversight Board, or PCAOB. Our Audit Committee has also received the written disclosures and the letter from the independent registered public accounting firm required by applicable requirements of the PCAOB regarding the independent accountants’ communications with our Audit Committee concerning independence, and has discussed with the independent registered public accounting firm the accounting firm’s independence.

Based on the foregoing, our Audit Committee has recommended to our Board of Directors that the audited financial statements be included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2016.2020, filed March 9, 2021.

AUDIT COMMITTEE

Ms. Lota Zoth (Chair)
Mr. Ernest J. Talarico, III                            Chad A. Johnson
Mr. Paul R. Edick
Mr. Paolo Pucci

Joe McCracken

(1)The material in this Audit Committee report is not “soliciting material,” is not deemed “filed” with the Commission and is not to be incorporated by reference in any filing of the Company under the Securities Act or the Exchange Act, whether made before or after the date hereof and irrespective of any general incorporation language in any such filing.

    
OUR BOARD OF DIRECTORS RECOMMENDS A VOTE IN FAVOR OF PROPOSAL 3.



17


SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The following table sets forth certain information regarding the ownership of our common stock as of March 15, 2017,2, 2021, except as set forth below, by: (i) each current director and nominee for director; (ii) each of the named executive officers specified in the Summary Compensation Table; (iii) all executive officers and directors of the Company as a group; and (iv) all those known by the Company to be beneficial owners of more than 5% of its common stock.
Names of Beneficial Owner Shares Percentage
     
5% Stockholders Total  
Stine Seed Farm, Inc. (1)
 7,077,245

 
 24.2%
First Eagle Investment Management, LLC (2)
 2,848,000
  9.7%
   OrbiMed Advisors (3)
 1,991,700
  6.8%
   BlackRock Inc. (4)
 1,825,915
  6.2%
Directors and Named Executive Officers    
Charles J. Link, Jr., M.D. (5)
 2,103,801

 
 6.8%
Nicholas N. Vahanian, M.D. (6)
 1,236,631

 
 4.1%
John B. Henneman, III (7)
 257,771
  * 
Thomas A. Raffin, M.D. (8)
 211,721

 
 *

 
Carl Langren (9)
 186,702
  * 
Brian Wiley (10)
 165,064
  * 
Ernest J. Talarico, III (11)
 159,683

 
 *

 
Joseph B. Saluri (12)
 85,527
  * 
Paul R. Edick (13)
 65,721

 
 *

 
Lota S. Zoth (14)
 64,531

 
 *

 
Paolo Pucci (15)
 14,021
  * 
       
Total for Security Ownership Table 18,294,033
  55.0%
     
All Executive Officers & Directors as a Group (11 persons)(16)
 4,551,173
  13.7%

*Represents beneficial The percentage of shares beneficially owned is computed on the basis of 8,325,631 shares of our common stock outstanding as of March 2, 2021. Shares of our common stock that a person has the right to acquire within 60 days of March 2, 2021 are deemed outstanding for purposes of computing the percentage ownership of less than 1%.the person holding such rights, but are not deemed outstanding for purposes of computing the percentage ownership of any other person.



Name and Address of Beneficial Owner(1)
Shares (#)Percent (%)
5% and Greater Stockholders
Stine Seed Farm, Inc.(2)
873,08110.5%
Deerfield Private Design Fund III, L.P.(3)
784,5689.4%
Richard J. Hawkins(4)
773,4009.2%
Entities affiliated with New Enterprise Associates, Inc.(5)
526,6636.3%
Clarus Lifesciences III, L.P.(6)
468,1455.6%
Named Executive Officers and Directors
Richard J. Hawkins(4)
773,4009.2%
Chad A. Johnson(7)
6,038*
Kevin Lalande(8)
409,6274.9%
Joseph McCracken(9)
1,894*
Thomas A. Raffin, M.D.(10)
17,067*
Lota S. Zoth(11)
8,442*
Eugene P. Kennedy, M.D.(12)
117,7521.4%
Carl W. Langren(13)
38,549*
Lori D. Lawley(14)
14,301*
John McKew, Ph.D.(15)
116,1381.4%
Bradley J. Powers(16)
19,052*
An van Es-Johansson, M.D.*
All current executive officers and directors as a group (12 persons)(17)
1,524,15417.5%
*Indicates beneficial ownership of less than 1% of the outstanding shares of the Company’s common stock.
(1)Unless otherwise indicated, the address of such individual is Lumos Pharma, Inc., 4200 Marathon Boulevard, Suite 200, Austin, Texas 78756.
(2)Address: 22555 Laredo Trail, Adel, Iowa 50003, Based solely upon a Schedule 13D filed with the SEC on October 6, 2017. Harry H. Stine, the CEO of Stine Seed Farm, Inc., may be deemed to beneficially own such shares.
(3)Consists of shares held by Deerfield Private Design Fund III, L.P. Deerfield Mgmt III, L.P. is the general partner of, and Deerfield Management Company, L.P. is the investment advisor to, Deerfield Private Design Fund III, L.P. Mr. James E. Flynn is the sole member of the general partner of each of Deerfield Mgmt III, L.P. and Deerfield Management Company, L.P. The address for each of these entities and Mr. Flynn is 780 Third Avenue, 37th Floor, New York, NY 10017.
(4)Includes 53,825 shares Mr. Hawkins has the right to acquire through the exercise of stock options within 60 days of March 2, 2021.
(5)Consists of (i) 2,633 shares held by NEA Ventures 2013, L.P. (“Ven 2013”) and (ii) 524,030 shares held by New Enterprise Associates 14, L.P. (“NEA 14”) (collectively, the “NEA Shares”). The shares held by Ven 2013 are held indirectly by Karen P. Welsh, the general partner of Ven 2013. The shares held by NEA 14 are held indirectly by NEA Partners 14, L.P. (“NEA Partners 14”), the general partner of NEA 14, NEA 14 GP LTD (“NEA 14 LTD”), the general partner of NEA Partners 14, and the individual directors (the “Directors”) of NEA 14 LTD. The Directors of NEA 14 LTD are Peter J. Barris, Forest Baskett, Anthony A. Florence, Patrick J. Kerins, David M. Mott, Scott D. Sandell, and Peter W. Sonsini. All indirect holders of the above referenced shares disclaim beneficial ownership of all applicable shares except to the extent of their pecuniary interest therein. The address for each of these entities is c/o New Enterprise Associates, Inc., 1954 Greenspring Drive, Suite 600, Timonium, Maryland 21093.
18


(1(6))Address: 22555 Laredo Trail, Adel, Iowa 50003, Attn: Jerald L. Reichling. Based solely upon a Schedule 13D filed withConsists of shares held by Clarus Lifesciences III, L.P. (“Clarus”). Clarus Ventures III GP, L.P. is the SEC on February 14, 2013.sole general partner of Clarus. Blackstone Clarus III L.L.C. is the sole general partner of Clarus Ventures III GP, L.P. The sole member of Blackstone Clarus III L.L.C. is Blackstone Holdings II L.P. The sole general partner of Blackstone Holdings II L.P. is Blackstone Holdings I/II GP Inc. The controlling shareholder of Blackstone Holdings I/II GP Inc. is The Blackstone Group L.P. The sole general partner of The Blackstone Group L.P. is Blackstone Group Management L.L.C. Blackstone Group Management L.L.C. is wholly-owned by The Blackstone Group L.P. ‘s senior managing directors and controlled by its founder, Stephen A. Schwarzman. Each of Clarus Ventures III GP, L.P., Blackstone Clarus III L.L.C., Blackstone Holdings II L.P., Blackstone Holdings I/II GP Inc., The Blackstone Group L.P., Blackstone Group Management L.L.C. and Stephen A. Schwarzman may be deemed to beneficially own the common stock beneficially owned by Clarus and each disclaim beneficial ownership of all shares held by Clarus. The address for the entities is 101 Main Street, Suite 1210, Cambridge, MA 02142.
(2(7))Address: 1345 AvenueConsists of the Americas, New York, New York 10105. Based solely upon a Schedule 13G filed with the SEC on February 6, 2017 reflecting the beneficial ownership by First Eagle Investment Management, LLC as of December 31, 2016.
(3)Address: 601 Lexington Avenue, 54th Floor, New York, New York 10022. Based solely upon a Schedule 13G filed with the SEC on February 13, 2017 reflecting the beneficial ownership by OrbiMed Advisors LLC as of December 31, 2016.
(4)Address: 55 East 52nd Street, New York, New York 10055. Based solely upon a Schedule 13G filed with the SEC on January 25, 2017 reflecting the beneficial ownership by BlackRock Inc. as of December 31, 2016.
(5)Includes 1,867,5706,038 shares Dr. LinkMr. Johnson has the right to acquire through the exercise of stock options within 60 days of March 15, 2017 and 25,1392, 2021.
(8)Consists of the shares held by Sante Health Ventures II, L.P. Mr. Lalande may be deemed to beneficially own such shares. Mr. Lalande, Joe Cunningham, M.D. and Douglas D. French, are managing directors (the “SHV Directors”) of SHV Management Services, LLC (“SHV Management”). SHV Management is the general partner of SHV Management Services, LP, which is the general partner of Santé Health Ventures II, L.P. Each of the SHV Directors, SHV Management, and SHV Management Services, LP disclaims beneficial ownership of these securities except to the extent of its or his spouse.pecuniary interest therein. The address for this entity is 201 W 5th Street, Suite 1500, Austin, TX 78701.
(6(9))Includes 1,215,040Consists of 1,894 shares Dr. VahanianMcCracken has the right to acquire through the exercise of stock options within 60 days of March 15, 2017.2, 2021.
(7(10))Includes 231,984 shares Mr. Henneman has the right to acquire through the exercise of stock options within 60 days of March 15, 2017.
(8)Includes 147,1009,887 shares Dr. Raffin has the right to acquire through the exercise of stock options within 60 days of March 15, 2017.2, 2021.
(9(11))Includes 133,0717,331 shares Ms. Zoth has the right to acquire through the exercise of stock options within 60 days of March 2, 2021.
(12)Includes 116,268 shares Dr. Kennedy has the right to acquire through the exercise of stock options within 60 days of March 2, 2021.
(13)Consists of 30,790 shares Mr. Langren has the right to acquire through the exercise of stock options within 60 days of March 15, 20172, 2021, 2,238 shares of common stock held by Mr. Langren and 49,6915,521 shares of common stock held in trust by his spouse.the Susan A. Langren 2014 DGT Trust, of which Mr. Langren’s spouse is the grantor.
(10(14))Includes 154,98613,959 shares Mr. WileyMs. Lawley has the right to acquire through the exercise of stock options within 60 days of March 15, 2017.2, 2021.
(11(15))Includes 121,618Consists of 115,954 shares Mr. TalaricoDr. McKew has the right to acquire through the exercise of stock options within 60 days of March 15, 2017. Includes 977 shares of common stock held by Ernie Talarico Roth IRA, 1,737 shares of common stock held by Kelli Talarico Roth IRA, 1,564 shares of common stock held by son's trust and 1,564 shares of common stock held by daughter's trust.2, 2021.
(12(16))Includes 69,479Consists of 18,970 shares Mr. SaluriPowers has the right to acquire through the exercise of stock options within 60 days of March 15, 2017.2, 2021, 55 shares of common stock held by Mr. Powers and 27 shares of common stock held by Mr. Power’s spouse.
(13(17))Includes 57,815376,810 shares Mr. Edick hasissuable pursuant to stock options that the executive officers and directors of the Company have the right to acquire through the exercise of stock options within 60 days of March 15, 2017.
(14)Includes 56,625 shares Ms. Zoth has the right to acquire through the exercise of stock options within 60 days of March 15, 2017.
(15)Includes 11,188 shares Mr. Pucci has the right to acquire through the exercise of stock options within 60 days of March 15, 2017.
(16)Includes 4,066,476 shares issuable upon exercise of stock options exercisable within 60 days of March 15, 2017. See notes (5) through (15) above.2, 2021.

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Section 16(a) Beneficial Ownership Reporting Compliance


Section 16(a)Securities Authorized For Issuance Under Equity Compensation Plans

We maintain our 2019 Equity Incentive Plan, 2010 Non-Employee Directors’ Stock Award Plan and 2010 Employee Stock Purchase Plan, each of which was approved by the Company’s security holders, pursuant to which we may grant equity awards to eligible persons. We also maintain the Lumos Plans that were assumed at the closing of the Exchange Act requiresMerger approved by the Company's security holders.

The following table gives information about equity awards under the applicable foregoing plans as of December 31, 2020:
Plan CategoryNumber of Securities to be Issued upon Exercise of Outstanding Options, Warrants and RightsWeighted-Average Exercise Price of Outstanding Options, Warrants and RightsNumber of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column(a))
Equity compensation plans approved by security holders1,032,699 $9.47522,749 (1)(2)
Equity compensation plans not approved by security holders— $— — 
Total1,032,699 522,749 

(1) The 2009 Equity Incentive Plan incorporated an evergreen formula pursuant to which, on each January 1st, the aggregate number of shares reserved for issuance under the plan will increase by a number equal to 4% of the outstanding shares on December 31st of the preceding calendar year, or such lesser amount (or no shares) as determined by our directors, executive officersBoard. On May 9, 2019, the Company’s stockholders approved a proposal to amend and persons who own more than 10%extend the 2009 Plan (the "2019 Plan") which, among other modifications, included decreasing the automatic annual “evergreen provision” from 4% to 3%, in accordance with which, on January 1 of each year, from 2020 to (and including) 2029, a registered classnumber of our equity securities, to file with the SEC initial reports of ownership and reports of changes in ownershipshares of common stock and other equity securitiesin an amount equal to 3% of the Company. Directors, executive officers and greater than 10% stockholders are required by SEC regulation to furnish the Company with copiestotal number of all Section 16(a) forms they file.
To our knowledge, based solelyshares of common stock outstanding on a reviewDecember 31 of the copiespreceding calendar year, or such lesser amount of such reports furnishedshares (or no shares) approved by the Company’s Board of Directors, was added or will be added to the Company and written representations that no other reports were required, duringshares reserved under the fiscal year ended2019 Plan.

(2) Of these shares, as of December 31, 2016,2020, 519,888 shares remained available under the Company believes that all reports required by Section 16(a) of2019 Equity Incentive Plan, 2,166 shares remained available under the Exchange Act to be filed by our officers, directors2010 Non-Employee Directors’ Stock Award Plan and greater than 10% beneficial owners were complied with.695 shares remained available under the 2010 Employee Stock Purchase Plan.


20



DIRECTOR COMPENSATION
The following table shows certain information with respect to the compensation of all of our non-employee directors for the fiscal year ended December 31, 2016.2020.
Name
Cash Compensation (1)
Option Awards ($) (2)(3)(4)
Stock Awards (5)
Total ($)
Chad A. Johnson$57,702$31,215$5,516$94,433
Thomas A. Raffin, M.D.$85,000$31,215$5,516$121,731
Ernest Talarico*$16,750$0$0$16,750
Matthew Sherman*$17,375$0$0$17,375
Lota S. Zoth$58,879$31,215$5,516$95,610
Emmett Cunningham, M.D. **$35,173$31,215$5,516$71,904
Kevin Lalande$36,235$31,215$5,516$72,966
Joe McCracken$36,874$31,215$5,516$73,605
         
Name 
Cash Compensation (1)(2)
  
Option Awards ($) (3)(4)(5)
  Total ($)
Paul R. Edick $71,000  $150,117  $221,117
Paolo Pucci $69,625  $150,117  $219,742
Thomas A. Raffin, M.D. $99,167  $150,117  $249,284
Joseph Saluri $69,000  $150,117  $219,117
Ernest J. Talarico, III $75,000  $150,117  $225,117
Lota Zoth $81,500  $150,117  $231,617
* Resigned as a member of our board of directors in March 2020 in connection with the closing of the Merger

**Resigned as a member of our board of directors in February 2021

(1)Cash compensation paid quarterly based on the annual amount of $40,000 for all non-employee directors with additional annual cash compensation of $22,000 for Lead Independent Director, $15,000, $12,000 and $8,000 for the Chairs of the Audit, Compensation and Nominating and Corporate Governance Committees, respectively; and $7,500, $5,500 and $4,000 for members of the Audit, Compensation and Nominating and Corporate Governance Committees, respectively.
(2)The assumptions we used in valuing options are described under the caption “Share-Based Compensation” in note 2 to our financial statements included in our Annual Report on Form 10-K filed on March 9, 2021. This column reflects compensation expense that would be recorded under FASB ASC topic 718 as stock-based compensation in our financial statements for the indicated year in connection with options we granted in the indicated year, disregarding the effects of any estimate of forfeitures related to service-based vesting.
(3)The aggregate number of shares subject to stock option awards outstanding for each non-employee director as of December 31, 2020 are as follows:
Option Awards
Chad A. Johnson12,688
Thomas A. Raffin, M.D.18,900
Emmett Cunningham, M.D.5,684
Kevin Lalande5,684
Joe McCracken, M.D.5,684
Lota Zoth13,785
(4)Grant date fair value of 5,684 options granted in 2020 at an exercise price of $7.78, which was the per share closing price of our common stock on the NASDAQ Global Market on the date of grant.
(5)Grant date fair value of 709 RSUs granted in 2020 at a per share price of $7.78, which was the per share closing price of our common stock on the NASDAQ Global Market on the date of grant.
(1)Cash compensation paid quarterly based on the annual amount of $50,000 for all Non-Employee Directors with additional annual cash compensation of $30,000 for Lead Independent Director, $20,000, $17,500 and $10,000 for the Chairs of the Audit, Compensation and Nominating and Corporate Governance Committees, respectively; and $13,500, $11,500 and $7,500 for members of the Audit, Compensation and Nominating and Corporate Governance Committees, respectively.
(2)Effective following the Annual Meeting in May 2016 and based upon advice from Radford, the board increased the compensation paid for Lead Independent Director from $15,000 to $30,000 annually. This resulted in a proportional increase in the compensation for Dr. Raffin during the second quarter.
(3)The assumptions we used in valuing options are described under the caption “Share-Based Compensation” in note 2 to our financial statements included in our Annual Report on Form 10-K filed March 6, 2017. This column reflects compensation expense that would be recorded under FASB ASC topic 718 as stock-based compensation in our financial statements for the indicated year in connection with options we granted in the indicated year, disregarding the effects of any estimate of forfeitures related to service-based vesting.
(4)The number of stock awards and aggregate number of shares subject to stock option awards outstanding for each non-employee director as of December 31, 2016 are as follows:
  Stock AwardsOption Awards
      Paul R. Edick80,371
      Paolo Pucci3,33741,378
      Thomas A. Raffin, M.D.169,656
      Joseph B. Saluri92,035
      Ernest J. Talarico, III144,174
      Lota Zoth79,181
(5)Grant date fair value of 22,556 options granted in 2016 at an exercise price of $10.78, which was the per share closing price of our common stock on the NASDAQ Global Market on the date of grant.

Non-Employee Director Compensation

The following compensation components are paid to our non-employee directors:

Annual cash retainer fees;
An equity grant upon initial election or appointment to our Board; and
An annual equity grant.



Our non-employee director compensation program as in effect for the fiscal year ended December 31, 20162020 is as described below. For a description of our compensation program in effect for prior years, please refer to the proxy statement for our 20162020 Annual Meeting of stockholders.  Under our program, each non-employee director was entitled to receive annual cash retainer fees in the amounts set forth below and were paid in cash quarterly on the first day of each quarter during their annual term commencing upon their election or re-election at each Annual Meeting of Stockholders.  Such amounts were pro-rated for appointments made to our Board between our annual meetings.

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Annual retainer fee payable to all non-employee directors$50,000
 
Additional annual retainer fee payable to the Lead Independent Director of our Board$30,000
 
Additional annual retainer fee payable to our Audit Committee Chair$20,000
 
Additional annual retainer fee payable to other Audit Committee members$13,500
 
Additional annual retainer fee payable to our Compensation Committee Chair$17,500
 
Additional annual retainer fee payable to other Compensation Committee members$11,500
 
Additional annual retainer fee payable to our Nominating and Corporate Governance Committee Chair$10,000
 
Additional annual retainer fee payable to other Nominating and Corporate Governance Committee members$7,500
 

Director Compensation2020
Annual retainer fee payable to all non-employee directors$40,000 
Additional annual retainer fee payable to the Lead Independent Director of our Board$22,000 
Additional annual retainer fee payable to our Audit Committee Chair$15,000 
Additional annual retainer fee payable to other Audit Committee members$7,500 
Additional annual retainer fee payable to our Compensation Committee Chair$12,000 
Additional annual retainer fee payable to other Compensation Committee members$5,500 
Additional annual retainer fee payable to our Nominating and Corporate Governance Committee Chair$8,000 
Additional annual retainer fee payable to other Nominating and Corporate Governance Committee members$4,000 
Based
During 2020, upon Radford’s advice in December 2015, our Compensation Committee recommended, our Board approved, an increase in the annual cash retainer payable to our Lead Independent Director by $15,000 to a total annual cash retainer of $30,000 effective following our Annual Meeting. Radford’s recommendation was based upon a review of compensation paid to lead directors of other companies Radford deemed comparable to us. This increase took effect following our 2016 Annual Meeting and resulted in a proportional increase in the compensation Dr. Raffin received for service as the Lead Independent Director during the second quarter of 2016.

Upon election to our Board, each new non-employee director receiveswould have been eligible to receive an initial grant of stock options withand restricted stock units ("RSUs") for a valuenumber of $250,000 based on the fair market valueshares equal to 0.081 percent of the awards onnumber of shares outstanding at the grant date pursuant to our 2010 Non-Employee Directors' Stock Award Plan, as amended.time of appointment. Additionally, during the term of his or her service on our board,Board, each non-employee director receives an annual grant comprised of stock options withfor a valuenumber of $150,000 based on the market valueshares equal to 0.041 percent of the awards onnumber of shares outstanding at the date of grant. During 2020, in connection with the Merger, we made an initial grant in place of the annual grant to each director due to the circumstance surrounding the Merger and the appointment of multiple new board members.

We also reimburse our directors, including our employee directors, for their reasonable expenses incurred in attending meetings of our Board and the committees of our Board. Other than reimbursement of any such reasonable expenses, our employee directors do not receive compensation for their service on our Board.

Director Stock Ownership Guidelines
Our stock ownership guidelines for non-employee directors anticipate that each director will, by December 31, 2018, hold shares of our common stock representing at least $150,000 worth of common stock or 10,000 shares, whichever is less. All of our directors currently meet stock ownership guidelines or are making acceptable progress toward their required level.




COMPENSATION DISCUSSION AND ANALYSIS
The following Compensation Discussion and Analysis ("CD&A") describes our executive compensation program and philosophy, our compensation-setting process, the elements of our executive compensation program, and the compensation decisions made in 2016. This CD&A should be read together with the compensation tables and related disclosures that immediately follow, which provide further historical compensation information for our named executive officers ("NEOs") as identified below.

This discussion contains forward-looking statements that are based on our current plans, considerations, expectations and determinations regarding future compensation programs. Actual compensation programs that we adopt may differ materially from currently planned programs as summarized in this discussion.

I.    Executive Officers

Our NEOs in 2016 were:

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NameAgeTitle
Charles J. Link, Jr., M.D.57Chairman of the Board and Chief Executive and Scientific Officer
Nicholas N. Vahanian, M.D.49President and Chief Medical Officer
John B. Henneman, III55Chief Financial Officer and Secretary
Brian Wiley49Chief Commercial Officer
Carl Langren61Vice President of Finance



EXECUTIVE OFFICERS


Our executive officers are appointed by and serve at the direction of our BoardBoard. The following table lists the names and positions of Directors. There are no family relationships between our directors, director nominees, andcurrent executive officers.    officers:
Charles
NameAgePosition(s)
Richard J. Hawkins(1)
72President, Chief Executive Officer and Chairman
Carl W. Langren65Chief Financial Officer
Eugene P. Kennedy, M.D.(2)
52Chief Medical Officer
John McKew, Ph.D.(1)
56Chief Operating Officer and Chief Scientific Officer
Bradley J. Powers42General Counsel
Lori D. Lawley37Sr. VP, Finance and Controller
(1) Appointed as an executive officer in March 2020 in connection with the Merger. Service as an executive officer prior to such appointment noted in such officer’s biography includes service with Private Lumos. For a brief biography of Mr. Hawkins, please see “Board of Directors” above.
(2) Resigned from the Company in March 2021.

Richard J. Link, Jr., M.D.Hawkins, , See Dr. Link’ssee Mr. Hawkin's biography in “Proposal"Proposal Number 1-Election of Directors."
Nicholas N. Vahanian, M.D., See Dr. Vahanian’s biography in “Proposal Number 1-Election of Directors.”
John B. Henneman, IIICarl W. Langrenhas served as our Chief Financial Officer Secretary, Executive Vice President and Chief Administrative Officer since 2014. Prior to joining the Company, Mr. Henneman served for sixteen years at Integra Life Sciences, a publicly traded life sciences company.  He joined Integra in 1998 as General Counsel and Chief Administrative Officer, was appointed Acting Chief Financial Officer in 2007 and assumed that role permanently in 2008. In April 2014,July 2018. Previously, he was named as Corporate Vice President and Chief Administrative Officer, concurrently with the appointment of a new Chief Financial Officer. During his 16 years at Integra, in addition to his responsibilities as Chief Financial Officer, he was responsible at various times for Integra's law department, corporate development, regulatory affairs, quality systems, clinical affairs, human resources, information systems and management of Integra’s surgical instruments business. Mr. Henneman currently serves on the Board of Directors of R1 RCM, Inc., a NASDAQ listed company that is a provider of revenue cycle management services to hospitals, SeaSpine Holdings Corporation, a NASDAQ listed company that is a spinal implant and orthobiologics company and Alafair Biosciences, a privately-held biomaterials company. Mr. Henneman received his A.B. in Politics from Princeton University and a J.D. from the University of Michigan Law School.
Brian Wileyhas served as our Chief Commercial Officer since 2015 and previously served as its Vice President of Business Development from 2013 to 2015. Mr. Wiley is responsible for the business development, commercialization and corporate communications strategies for all of our portfolio products. Prior to joining the Company, Mr. Wiley was the Principal and Founder of Boston BioConsulting, LLC, Senior Director of Oncology Marketing at Celgene Corporation & Gloucester Pharmaceuticals, and Associate Director of Oncology Marketing at Millennium Pharmaceuticals. Mr. Wiley also held multiple commercialization positions of increasing responsibility at Aventis/Sanofi Oncology from 1992-2004. Mr. Wiley received his B.A. from The Pennsylvania State University.

Carl Langrenhas served as our Vice President of Finance since November 2011 and previously served as thehas also been Chief Financial Officer of our subsidiary BioProtection Systems from 2005 to 2011.Corporation since February 2005. Prior to joining the Company, Mr. Langren previously served as a principal in Capital Management


Solutions from 2003 to 2006, the Chief Financial Officer for each of Housby Mixer Group from 1998 to 2002 and Equity Dynamics, Inc. from 1988 to 1989. He also served as a Principal in Capital Management Solutions, President of Iowa Machinery and Supply, from 1990 to 1998. Mr. Langren also served as Chief Financial Officer of Equity Dynamics, Inc., Treasurer of DFM Corporation, and tax managerTax Manager with McGladrey Pullen and Company (now RSM US LLP).Company. Mr. Langren received his B.A. degree from the University of Iowa in Iowa City, Iowa.

II.    Executive Summary

Our Strategy Overview

Our strategy is to discover, develop and commercialize immunotherapeutic products for the treatment of cancerEugene P. Kennedy, M.D., FACS, served as our Chief Medical Officer from November 2017 until his resignation on March 5, 2021, where the needs of patients are unmet by current therapies. The critical components of our business strategy include:

Supporting thehe lead clinical development of GDC-0919 through the strategic collaboration with Genentech, Inc., a member of the Roche Group.
Obtaining additional clinical data for indoximod in melanoma, brain, pancreatic, lung and prostate cancers.
Developing improved formulations of indoximod that will enhance clinical and commercial potential.
Seeking further regulatory approvals and exclusivity for the indoximod program.
Strengthening our pipeline of oncologyacross all immuno-oncology product candidates through our active drug discovery and business development programs.
Completing the trails for and evaluating the data from two HyperAcute Cellular Immunotherapy product candidates.
Supporting Merck, Sharp and Dohme Corp., or Merck, in the further development of our Ebola vaccine product candidate, and developing the Zika program to the point at which it is appropriate for a strategic collaboration.

Our Performance Overview

Highlights from our 2016 fiscal year included:

The IDO pathway, which helps cancer escape the patient’s immune system, became increasingly validated as an immuno-oncology target, with clinical data coming from our Company and others.
We presented early Phase 2 clinical data of indoximod plus gemcitabine/nab-paclitaxel for the treatment of patients with metastatic pancreatic cancer at the 2016 American Society of Clinical Oncology, or ASCO, Annual Meeting, suggesting evidence of safety and clinical activity.
We also presented promising interim Phase 2 clinical data from a cohort of patients with advanced melanoma treated with indoximod plus pembrolizumab at the 2016 ASCO Annual Meeting.
Our Ebola vaccine candidate (rVSV∆G-ZEBOV GP), in collaboration with Merck, received breakthrough therapy designation from the FDA and PRIME status from the European Medicines Agency. In December 2016, the final results of the Guinea trial were published on-line in The Lancet and confirmed efficacy of the vaccine.

Notwithstanding our clinical progress, several factors led to a decline in our stock price during 2016, including particularly the failure of our Phase 3 clinical trials for algenpantucel-L, the results of which were reported during the year. We were disappointed in these results; however, our scientific and clinical teams are focused on promising future opportunities in this area and others.
As described in our CD&A, we have adjusted our executive compensation to reflect our current strategy, operational priorities and smaller market capitalization and to motivate management to build stockholder value in 2017.


How Our Compensation Program Works
Our philosophy continues to be based on attracting and retaining top talent while providing competitive compensation that creates a direct, meaningful link between business results and compensation opportunities. We rely on three primary elements:

ElementFormPerformance PeriodObjective
Base SalaryCash (fixed)AnnualRecognition of an individual's role and responsibilities; provides fixed competitive pay for retention purposes
Short-Term Incentive BonusesCash (variable)AnnualVariable pay designed to reward achievement of annual corporate and individual goals
Long-Term Equity IncentivesStock Options and Restricted Stock Units (variable)Multi-yearMeaningful incentives for management to create long-term stockholder value; supports the Company's retention strategy; provides alignment of management and stockholder interests

We view each of the elements of our compensation program as related but distinct, and we have not established any formal policies or guidelines for allocating compensation between the elements. Our decisions about each individual element generally do not affect the decisions we make about other elements. For example, we do not believe that significant compensation derived from one element of compensation, such as equity appreciation, should adversely affect compensation from other elements, such as salary or bonus.
Target Pay Mix
Consistent with our desire to align pay and performance, we take the above mentioned elements and weight their distribution heavily to variable, at-risk pay:
def14a-2017_chartx43528.jpgdef14a-2017_chartx44581.jpg
The variable pay portion of the above graphs can be further broken down to show that 85.2% of the CEO 2016 Target Pay Mix is attributable to long-term incentives with just 4.8% attributable to short-term incentives. Other NEOs 2016 Target Pay Mix follows a similar pattern with 79.1% attributable to long-term incentives and 5.0% attributable to short-term incentives.
Realizable Pay
We believe strong pay for performance programs align the short-term and long-term interests of management and stockholders. One way to demonstrate this alignment is to take a snapshot of compensation and note the variance versus the amounts reported as the grant date fair value in the Summary Compensation Table (an accounting value, as required by the SEC). As can be seen in the graphs below, the difference between the reported values (the "SCT" stacked bar) and the realizable pay (the other bar) for 2014 through 2016 is significant, particularly in light of our poor stock price performance in 2016.



def14a-2017_chartx45390.jpgdef14a-2017_chartx46988.jpg
“SCT” pay is the pay levels as disclosed in the Summary Compensation Table annually. This includes actual base salary, actual annual bonuses received, and long-term incentive components (restricted stock units and annual stock option grants) based on the grant date fair value.
“Realizable” pay is defined as the compensation earned or deliverable for each year calculated as of the end of the 2016 fiscal year, including: actual salary received, actual annual bonuses received, and the intrinsic value of long-term incentive plan components, as valued on December 30, 2016 (the last trading day of fiscal year 2016) using the year-end share price of $10.28. Options are valued based on spread value as of December 30, 2016.

Chief Executive Officer 2016 Realizable Compensation
The table below highlights the significant variances in the SCT compensation reported versus the realizable compensation at December 31, 2016 for our Chief Executive Officer.
Chief Executive Officer2016 SCT Compensation Realizable Compensation at 12/31/16
Salary$659,900 $659,900
Bonus$461,930#$230,965
Spot Bonus$55,000 $55,000
Restricted Stock$1,619,772 $479,449
Performance Based Restricted Stock Units$974,281 $72,096
Stock Options$3,071,426 $0
Total$6,842,309 $1,497,410
# Amount represents 100% of the target bonus amount for our Chief Executive Officer for 2016.
Consideration of Say-on-Pay Results
Our Compensation Committee and our Board values the opinions of our stockholders and considers the outcome of each non-binding advisory stockholder vote on compensation (commonly referred to as a "say-on-pay" vote) when they advise on and make compensation decisions for our executive officers.
At our 2016 annual stockholder meeting, our "say-on-pay" vote was approved, on an advisory basis, with over 80% support. We appreciate this support for our philosophy of linking compensation to our operating and organizational objectives and the creation of long-term stockholder value. As a result, our Compensation Committee has retained our general approach to executive compensation, and continued to apply the same general principles and philosophy as in the prior fiscal year in determining executive compensation. Our Compensation Committee will continue to consider stockholder concerns and feedback in the future.


III.    Objectives and Philosophy

Our executive officer compensation program is intended to achieve the following objectives:
Attract and incentivize talented individuals to lead and manage our business;
Reward our executive officers fairly over time and to retain those individuals who continue to meet our high expectations;
Align our executive officers’ compensation with our business objectives and the interests of our stockholders; and
Make us competitive in the biopharmaceutical industry, where there is significant competition for talented employees.

Our compensation philosophy also considers substantial corporate accomplishments and developments, including continued clinical advancement, ongoing technological and pipeline development, clinical trial enrollment and significant collaboration and licensing transactions.

IV.    Determination of Compensation

We seek to foster a performance-oriented culture, where individual performance is aligned with organizational objectives. In order to achieve this objective, we evaluate and reward our executive officers based on their contributions to the achievement of annual goals and objectives set early in the year. Performance is reviewed each year through the processes discussed further below, with a focus on our research, clinical, regulatory, financial and operational performance, and in view of economic and financial conditions affecting the performance period.

Role of our Compensation Committee
Our Compensation Committee is responsible for reviewing and making recommendations to our full Board regarding the compensation to be paid to our executive officers and directors. All compensation decisions regarding our executive officers and directors are ultimately made by our Board.
From time to time, various members of management and other employees as well as outside advisors or consultants may be invited byinvestigator initiated trials. From January 2014 to November 2017, Dr. Kennedy served as our Compensation CommitteeVice President for Clinical and Medical Affairs. Prior to make presentations, to provide financial or other background information or advice or to otherwise participatejoining the Company, he was on faculty and clinical staff at Thomas Jefferson University in Compensation Committee meetings. The charterPhiladelphia, Pennsylvania where he served as Associate Professor of our Compensation Committee grants our Compensation Committee full access to all books, records, facilitiesSurgery and personnelheld leadership positions as Chief of the Company,Section of Pancreaticobiliary Surgery and co-director of the Jefferson Pancreas, Biliary, and Related Cancers Center from January 2006 to December 2013. Previously, Dr. Kennedy held faculty positions at Johns Hopkins Hospital and the Louisiana State University School of Medicine. Dr. Kennedy obtained his undergraduate education at the University of Virginia and received his medical degree from the Medical College of Virginia. He completed a residency and fellowship in Surgery and Surgical Oncology as well as the authority to obtain,a research fellowship in tumor immunology at the expenseJohns Hopkins Hospital.

John McKew, Ph.D., has served as the Chief Scientific Officer of the Company, advice and assistance from independent third party consultants, where appropriate. In particular, our Compensation Committee has the sole authority to select, retain and terminate compensation consultants to assist in its evaluation of executive and director compensation, including the sole authority to approve the consultant’s reasonable fees and other retention terms. Under the charter, our Compensation Committee may select, or receive advice from, a compensation consultant, legal counsel or other adviser to our Compensation Committee, other than in-house legal counsel, only after taking into consideration six factors, prescribed by the SEC and NASDAQ, that bear upon the adviser’s independence.
Role of Consultants
For fiscal yearPrivate Lumos since 2016 our Compensation Committee retained Radford, an Aon Hewitt Company, or Radford, as its independent compensation consultant to advise on various aspects of executive compensation and our overall equity practices. Radford was retained by and reported directly to our Compensation Committee. Radford did not provide any other consulting services to our Company.
Annually, our Compensation Committee has considered the following six factors, as set forth by the SEC and NASDAQ, when engaging Radford and evaluating its independence: (i) the provision of other services to our Company by Radford; (ii) the amount of fees from our Company paid to Radford as a percentage of the firm’s total revenue; (iii) Radford’s policies and procedures that are designed to prevent conflicts of interest; (iv) any business or personal relationship of Radford or the individual compensation advisors employed by the firm with an executive officer of our Company; (v) any business or personal relationship of the individual compensation advisors with any member of our Compensation Committee; and (vi) any stock of our Company owned by the individual compensation advisors employed by the firm. Based on its review, our Compensation Committee has determined that the work of Radford has not raised any conflict of interest that would adversely affect Radford’s independence.
Basis for Historical and Future Compensation Policies and Decisions
In arriving at the amount and types of initial compensation for each of our executive officers, our Compensation Committee and our Board consider the following factors:


The individual’s particular background and circumstances, including prior relevant work experience and compensation paid prior to joining us;
The individual’s role with us and the compensation paid to persons holding similar roles in similarly situated companies represented in the compensation data that we review;
The demand for people with the individual’s specific expertise and experience;
Performance goals and other expectations for the individual’s position;
Comparison to our other executive officers having similar levels of expertise and experience; and
Recommendations from our compensation consultant.

Each year, our Compensation Committee and our Board reviews the compensation of our executive offers and determines whether any adjustments should be made to each element. In determining whether to adjust the compensation of any of our executive officers, our Compensation Committee and our Board generally take into account the following factors:

Compensation generally paid by similarly situated companies to their executive officers with similar roles and responsibilities;
Formal market data regarding base salary, cash incentives and equity compensation from surveys of biopharmaceutical and biotechnology companies conducted by our compensation consultant;
The roles and responsibilities of our executive officers, including any increases or decreases in responsibilities; and
The contributions to achieving our corporate objectives and the individual performance of each executive officer.
Role of Our Chief Executive Officer
In connection with each annual review cycle our Chief Executive Officer meets with our executive officers to discuss our accomplishments during the year and the individual’s performance and contributions over the prior year. Based on these discussions, our Chief Executive Officer then develops a set of compensation recommendations for submission to our Compensation Committee. Our Compensation Committee uses these recommendations, its own judgment and experience, and the resources described above to determine the appropriate mix of compensation for each of our executive officers, and then makes formal recommendations regarding executive compensation decisions to our full Board. In making these recommendations, our Compensation Committee does not delegate any of its functions to others. Our Chief Executive Officer does not participate in the determination of his own compensation.
Peer Analysis
As part of its engagement, Radford was requested by our Compensation Committee to develop a comparative group of current peer companies and to perform analyses of competitive performance and compensation levels for that group.
2016 Peer Group
For our 2016 Peer Group, Radford helped to identify peers similar to us with respect to sector and developmental stage as well as market capitalization and organizational complexity (as measured by number of full-time employees).
Sector and Developmental Stage - focused on biopharmaceuticals companies in Late stage / pre-commercial Phase III, or recent commercial companies with minimal revenue (less than $100M)
Market Capitalization - Valuation generally 0.5 times to 3.0 times our market capitalization
Organization Complexity - 50 to 200 employees



Our 2016 Peer Group, identified in late 2015 and used to make 2016 compensation decisions at the beginning of 2016, consisted of the following companies:

ACADIA PharmaceuticalsKeryx BioPharmaceuticals
Acceleron PharmaMacroGenics
ARIAD PharmaceuticalsMannKind
Array BioPharmaMerrimack Pharmaceuticals
Bluebird BioNeurocrine Biosciences
Celldex TherapeuticsNovavax
CempraOncoMed Pharmaceuticals
ChimerixPortola Pharmaceuticals
Clovis OncologyProthena
Dynavax TechnologiesRelypsa
EpizymeSangamo BioSciences
Halozyme TherapeuticsSarepta Therapeutics
ImmunoGenTESARO
Infinity PharmaceuticalsZIOPHARM Oncology


  12/31/15 Market Cap ($mm)Number of Employees
Peers75th percentile2,109.9
274
 Median1,182.3
194
 25th percentile676.0
120
NewLink Genetics Corporation 1,047.5
130
 Rank37%34%

Total cash compensation (base salary plus target bonus) is targeted to be 9% and 12% above the 75th percentile for Drs. Link and Vahanian, respectively, and between the 50th and 75th percentiles for Mr. Henneman, Mr. Wiley and Mr. Langren, as compared to similarly positioned executives in our peer group. The target percentile levels for executives reflect the scope of their respective responsibilities and their history of contributions to our Company. Dr. Link serves both as our Chief Executive Officer and as our Chief Scientific Officer and Chief Operating Officer since March 2020. From 2014 until 2016, Dr. Vahanian servesMcKew was V.P. of research for aTyr Pharma where he led research aimed at understanding and harnessing the therapeutic potential of tRNA synthetases. From 2010 until 2014, Dr. McKew worked for the NIH, during which time he served as a branch chief at the National Human Genome Research Institute Home (the “NHGRI”) from 2010 until 2013, and as the acting Scientific Director of the Division of Preclinical Innovation at the National Center for Advancing Translational Sciences (“NCATS”) from 2013 until 2014. His responsibilities included developing both the Therapeutics for Rare and Neglected Disease (“TRND”) and the Bridging Interventional Development Gaps (“BrIDGs”) programs. The department he led also included NCATS’s high throughput screening center and its Tox21 in vitro toxicology initiative. Before joining the NIH, Dr. McKew held a director level position at Wyeth Research in Cambridge, Massachusetts. Dr. McKew is also currently an Adjunct Associate Professor at the Boston University School of Medicine. Dr. McKew received a B.S. degree in chemistry and biochemistry from State University of New York at Stony Brook, a Ph.D. in organic chemistry from the University of California, Davis, and held post-doctoral research positions at the University of Geneva and Firmenich, SA.

Bradley J. Powers has served as our General Counsel since August 2015. Prior to joining the Company, Mr. Powers served as the General Counsel of Kinze Manufacturing, an agricultural equipment manufacturer in North America, since March 2013. Mr. Powers received a B.S. degree in biology and a M.S. degree in bioinformatics and computational biology from Iowa State University and a J.D. from Drake University Law School.
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Lori D. Lawley has served as our Senior Vice President - Finance and Controller and the principal accounting officer since March 2020. Previously, Ms. Lawley served the Company in various roles of increasing responsibilities from 2015 to 2020. Prior to joining the Company, Ms. Lawley worked at Ernst and Young LLP for over 8 years where she was a Senior Manager. Ms. Lawley is a licensed certified public accountant. Ms. Lawley received her Bachelor of Business Administration and Master’s in Professional Accounting from the University of Texas.

24



EXECUTIVE COMPENSATION

Summary Compensation Table
The following table sets forth information regarding compensation earned during the years ended December 31, 2020 and December 31, 2019, by the executive officers identified below, who are referred to in this proxy statement as our “named executive officers.”
Name and Principal PositionYearSalary($)Stock Awards ($)(1)Option Awards ($)(2)Non-Equity Incentive Plan Compensation ($)(3)All Other Compensation ($)(4)Total ($)
Richard J. Hawkins*2020516,380196,750759,063686,33663,5002,222,029
Chief Executive Officer2019425,000136,720178,500740,220
John C. McKew*2020436,300102,310365,475276,04435,6411,215,770
Chief Scientific and Chief Operating Officer2019412,000144,200556,200
Eugene P. Kennedy, M.D.**2020459,63870,830253,021300,77062,0401,146,299
Chief Medical Officer2019437,750234,835192,61057,299922,494
Carl W. Langren2020389,02570,830253,021269,92659,0401,041,842
Chief Financial Officer2019370,500234,835163,02054,467822,822
Bradley J. Powers2020380,00035,415140,567245,23651,842853,060
General Counsel and Former Principal Executive Officer2019345,000100,613151,80045,365642,778
*The amounts disclosed for Mr. Hawkins and Dr. McKew for 2019 compensation and for amounts paid in 2020 prior to March 17, were paid by Private Lumos prior to the Merger and prior to their service in the combined Company
**Dr. Kennedy resigned as our Chief Medical Officer.
In determining 2016 equity awards for our officers, our Compensation Committee targeted a percentage of our outstanding shares basedOfficer on a particular percentile within our peer group. For Drs. Link and Vahanian, our Compensation Committee targeted an equity award at the 90th percentile of the peer group. Our Compensation Committee next considered the resulting equity award value of Drs. Link and Vahanian and adjusted target equity awards downward to the extent necessary to maintain equity award value at the targeted percentile level. For the other executives, the Committee targeted equity awards between the 50th and 90th percentile of the peer group taking into account both equity award value and the percentage ownership represented by the award. The target percentile for each officer reflected the Committee’s assessment of the scope of the executive officer’s current and anticipated responsibilities and his history of contributions to our Company.


2017 Peer Group
Given our share price movement in 2016, we reevaluated the appropriateness of our peer group in mid-2016 to ensure that our approach to reviewing compensation levels for the 2017 fiscal year was appropriately aligned with the state and size of our business. After that review, we dropped several companies from the peer group while adding others:
March 5, 2021
Dropped(1)This column reflects compensation expense that would be recorded under FASB ASC topic 718 as stock-based compensation in our financial statements for 2017Added for 2017the indicated year in connection with RSUs we granted in the indicated year. The assumptions we used in valuing RSUs are described under the caption "Share-Based Compensation" in note 2 to our financial statements included in our Annual Report on Form 10-K filed March 9, 2021.
ACADIA Pharmaceuticals(2)Aduro BioTechThis column reflects compensation expense that would be recorded under FASB ASC topic 718 as stock-based compensation in our financial statements for the indicated year in connection with options we granted in the indicated year, disregarding the effects of any estimate of forfeitures related to service-based vesting. The assumptions we used in valuing options are described under the caption “Share-Based Compensation” in note 2 to our financial statements included in our Annual Report on Form 10-K filed on March 9, 2021.
Acceleron Pharma(3)AgenusThe amounts shown in this column represent the cash bonuses earned by the named executive officers with respect to the fiscal year under our performance-based cash bonus program. Amounts earned with respect to the fiscal year are generally paid in the first quarter following the close of the fiscal year.
ARIAD Pharmaceuticals(4)Bellicum Pharmaceuticals
Bluebird BioChemoCentryx
Halozyme TherapeuticsCoherus Biosciences
Neurocrine BiosciencesInovio Pharmaceuticals
NovavaxKaryopharm Therapeutics
Portola PharmaceuticalsMirati Therapeutics
ProthenaRegulus Therapeutics
RelypsaRigel Pharmaceuticals
Sarepta TherapeuticsTG Therapeutics
TESAROXencorUnless otherwise indicated, amounts in this column represent our contributions under our 401(k) plan.

V.    Elements of our ExecutiveNarrative Disclosure to Summary Compensation ProgramTable

Our executive compensation program consists of three primary components: base salary, short-term incentives, and long-term equity incentives.
Base Salary

Base salary is the primary fixed element of our executive compensation program. We use base salary to compensate our executive officers for services rendered during the fiscal year, and to ensure that we remain competitive in attracting and retaining executive talent.

Upon joining us, each of our executive officers, with the exception of Dr. Link, received an offer letter that provided for an initial base salary. These initial base salaries are the product of negotiation with the executive, but we generally seek to establish salaries that we believe are commensurate with the salaries paid to industry peers with comparable qualifications, experience, responsibilities and performance at similar companies. Our Compensation Committee has also relied on its members’ collective experience in the marketplace for determining what they believe to be the market rate of salaries for executives of comparable companies.

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Historically, we have not applied, nor do we intend to apply, specific formulas to determine base salary increases. Instead, we annually review corporate and individual performance. Our Compensation Committee examines numerous factors, including the executive’s expertise, seniority, position, functional role, level of responsibility and individual performance during the previous year. Further, our Compensation Committee reviews peer and market data as provided by Radford.Setren & Associates.
In January 2016, our base salaries were determined as follows:
Short-Term Cash Incentives
NEO2015 Base Salary2016 Base Salary% Change
Charles J. Link, Jr., M.D.$640,700$659,9003.0%
Nicholas N. Vahanian, M.D.$531,800$574,3008.0%
John B. Henneman, III$365,200$423,60016.0%
Brian Wiley$319,600$370,70016.0%
Carl Langren$250,000$277,50011.0%

Increases in 2016 were based on peer group data, input from Dr. Link regarding the performance of each individual, and the growth of our Company and the attendant increase in executive responsibilities.


2017 Base Salaries
After reviewing similar data and feedback as discussed above, our Compensation Committee has determined to keep our base salaries unchanged for 2017.
Performance-Based Cash Bonuses
Our performance-based cash bonus program isincentives are designed to promote our interests and the interests of our stockholders by providingprovide executive officers with the opportunity to earn annual cash bonusesawards based upon the achievement of pre-specified corporate and individual performance objectives which align with and to assist us in attracting and retaining executive talent.support our business strategy.

Shortly before the end of each fiscal year, our Board determines the annual target bonus percentages for our executive officers for the upcoming fiscal year based on the recommendations of our Compensation Committee. Generally, each executive officer is eligible for a discretionary annual cash incentive payment up to a specified percentage of the executive officer’s salary. Our Board sets these annual target bonus percentages at levels that, upon achievement of the target percentage, are likely to result in cash bonus payments that our Board believes to be approximately the level paid to high-performing executives of comparable companies in the biopharmaceutical industry. The performance goals for each fiscal year are generally determined by the Board in the first quarter of such fiscal year, which may include corporate and/or individual performance objectives.

For 2016,2020, based upon recommendations of our Compensation Committee andwith the Radford Report,assistance of Setren & Associates, our Board establishedmaintained target bonus amounts for Mr. Hawkins, Mr. McKew, Dr. Link, Dr. Vahanian,Kennedy, Mr. Henneman, Mr. WileyLangren and Mr. LangrenPowers equal to 70%55%, 50%45%, 40%, 35%40% and 30%35% of their respective base salaries. Our Board reserved the ability to grant bonuses in excess of the executives’ target bonus percentages for extraordinary performance.


2020 Performance Objectives

The performance goals for each fiscal year are determined by the Board in the first quarter of each fiscal year, and typically include corporate and individual performance objectives which are tailored to each executive’s role and responsibilities.

For 2016, our NEOs2020, the Company had the following performancecorporate goals:
NEOMetricPerformance Goals (weightings)Weight
Charles J. Link, Jr., M.D.1)IMPRESS (0405)/Algenpantucel-L Phase 3 HyperAcute Pancreas Final Analysis: Complete data compilation, verification, clean up, data lock up
Business Development:
Develop and execute statistical analysisBD plan (25%)for evaluation of in-license opportunities through presentation of 2 or more opportunities for BOD review
30%
2)
Clinical:
Develop strategy for Phase 2b study, accounting for COVID-19 pandemic
Execute toward first patient in for a US site with supporting CMC, pre-clinical and patient engagement functions
Scientific communication plan
Manufacture/Commercial Scale Drug Supply Ready for Commercial Scale Manufacture for Algenpantucel-L: Ames B5 facility and CMO (WuXi): [Goal requires completion if IMPRESS positive] (25%)30%
3)
Capital Markets and Investor Relations:
PRV Monetized for an amount in excess of $40M
Elevate company profile through analyst coverage
Participation in investor conferences and NDRs as circumstances dictate
Commercialization: Prepare and assemble Algenpantucel-L launch plan with cross functional team and secure management approval. (25%)20%
4)Genentech NLG-0919 License: Fulfill NewLink obligations within the contract and advance product development and pipeline (25%)
Nicholas N. Vahanian, M.D.1)IMPRESS (0405)/Algenpantucel-L Phase 3 HyperAcute Pancreas Final Analysis: Complete data compilation, verification, clean up, data lock up and execute statistical analysis plan (25%)
2)Manufacture/Commercial Scale Drug Supply Ready for Commercial Scale Manufacture for Algenpantucel-L: Ames B5 facility and CMO (WuXi): [Goal requires completion if IMPRESS positive] (25%)
3)Regulatory BLA Algenpantucel-L: Prepare to submit Modules if positive trial (20%)
4)PILLAR, Locally Advanced Pancreas Cancer 2101, MBC: Prepare and execute statistical analysis plan (20%)
5)Clinical Development: NLG2102 (GBM, with Indoximod) & NLG2104 (Metastatic Pancreas with Indoximod) reach total enrollment goals (10%)
John B. Henneman, III1)Algenpantucel-L preparation: Ensure the readiness of quality systems to support the submission and approval of BLA (20%)
2)Support the commercialization of Algenpantucel-L by developing sale and marketing compliance policies and training and Sunshine Act compliant systems for tracking payments to healthcare providers (20%)
3)Cash: Ensure >6 quarters of cash on hand at December 31, 2016 (20%)
4)Maintain and develop personal relationships with key financial institutions, analysts and portfolio managers to promote and sustain the interest of institutional investors in the Company. Emphasize credibility, achievable expectations and transparency. Increase sell-side analyst coverage (20%)
5)Support organizational development; lead or support recruitment of senior leaders in HR, business development, investor relations and the commercial organization; support organizational assessment and development consistent with operating plan; develop a plan for significant expense reduction in advance of IMPRESS readout (20%)
Brian Wiley1)Commercial - Prior to IMPRESS data: Establish key additional commercial functions (commercial operations & business analytics), Establish Integrated Launch Team, Fully characterize the market and patient journey, Increase overall awareness for NewLink and Algenpantucel-L (20%)
2)Commercial - Establish launch ready status for 3PL and affiliated services, Finalize and initiate HR plan for post data (20%)
3)Significantly increase KOL understanding and support for Algenpantucel-L and HACI, complete reimbursement strategy and secure external resources/support (20%)
4)Demonstrate leadership of integrated Algenpantucel-L launch team (15%)
5)Business Development - Secure EX US partner of Plan internal EX US planning to launch Algenpantucel-L (pre-data deal provides extra bonus) (15%)
6)Business Development - Initiate Clinical Collaboration(s) with our assets and those of other companies and/or institutions (10%)
Carl Langren1)Complete timely required
Finance:
All SEC filings No material out of period adjustments (35%)
2)on time and accurate
Cash use goal excluding transactions <=$22.5M
Bring company into compliance with COSO 2013 (15%)
3)Implement at least two QAD sub-systems to support Ankeny/RiPS/Ames/Commercialization (30%)
4)Implement automation (Concur) to support travel and reimbursement (20%)20%


At the end of eachthe fiscal year, Dr. Link determines cash bonus recommendations for each of our executive officers, based on our corporate accomplishments and the individual’s performance and contributions to those accomplishments during the fiscal year. These recommendations are subjective determinations that may vary, from time to time, depending on our overall strategic objectives and the job responsibilities of each executive officer, but relate generally to factors such as development and progression of our existing product candidates, achievement of clinical and regulatory milestones, operational goals such as the expansion of


our manufacturing capabilities, and financial factors such as raising and maintaining capital. However, these recommendations may be more or less than the established target percentages for the executive officers, depending on individual and corporate performance, as well as our financial position. Our Compensation Committee assesses the bonuses recommended by our Chief Executive Officer and makes its bonus recommendations to our full Board. Based on its considerationaccomplishments of each executive versus each of the recommendations of ouraforementioned goals and recommends earned bonus amounts to the Board for approval. The Compensation Committee retains the non-employee directorsability to apply negative discretion to adjust bonus amounts lower based on our Board then makeother corporate performance factors.
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2020 Earned Bonuses

For 2020, the Compensation Committee took a final decision regarding cashtwo-tiered approach at determining the amount of earned bonus payments, if any, for each executive based on the year. Whether or notcurrent company conditions as well as actual performance. First, the Compensation Committee looked at the performance of each executive against each of the stated performance goals. Secondly, in light of current events and the refocus of the company as a whole, the Compensation Committee determined it to be in the best interests of the company and its stockholders to use the bonus is paid for any year is solely within the discretion of our Board.
In 2016,earning as a retention device in efforts to retain key personnel. For 2020, the Compensation Committee determined that executives had achieved 50%met each of their bonusthe company objectives for 2020, and bonuses were paid accordingly. Separately, in recognition of the NEOs efforts in the successful completion of the restructuring following the failure of the Phase 3 algenpantucel-L trials, our executives received a spot bonus.

Final bonus payouts for 20162020 performance were as follows:

Executive2020 Target Bonus2020 Earned Bonus
%(1)
$
%(2)
%(3)
$
Richard J. Hawkins55$308,000109.2 60%$336,336
John C. McKew45$207,000109.2 49%$226,044
Eugene P. Kennedy, M.D.40$183,855109.2 44%$200,770
Carl W. Langren40$155,610109.2 44%$169,926
Bradley J. Powers35$133,000109.2 38%$151,800
(1) Target bonus percentage represents a percentage of base salary.
NEOTarget BonusBonus AwardedBonus AmountSpot BonusTotal 2016 Bonus
Charles J. Link, Jr., M.D.$461,93050%$230,965$55,000$285,965
Nicholas N. Vahanian, M.D.$287,15050%$143,575$43,000$186,575
John B. Henneman, III$169,44050%$84,720$26,250$110,970
Brian Wiley$129,74550%$64,873$19,525$84,398
Carl Langren$83,25050%$41,625$12,625$54,250
(2) Bonus awarded at 109.2% in consideration of exceeding corporate objectives through the monetization of the priority review voucher and elevation of company profile through additional analyst coverage.

(3) Represents bonus percentage actually awarded.
2017 Performance Bonus Targets
Our Compensation Committee has determined to leave target bonus amounts for all executives unchanged from 2016 levels. As such, target bonus amounts for Dr. Link, Dr. Vahanian, Mr. Henneman, Mr. Wiley and Mr. Langren equal to 70%, 50%, 40%, 35% and 30% of their respective base salaries.
Long-Term Equity Compensation

Equity incentives represent the largest at-risk element of our executive compensation program. Our equity incentives are designed to align the interests of our executive officers with those of our stockholders by creating an incentive for our executive officers to maximize stockholder value and to remain employed with us despite a competitive labor market.
Typically,
In 2020, target long-term incentive awards were delivered in the form of time-based stock awards grants are madeoptions and RSUs. The Compensation Committee looked to our existing executive officers during the first quarter of each fiscal year, and these annual stock awards consist of restricted stock units, or RSUs, and stock options. The number of stock awards is based on a targeted percentage of our outstanding shares based on a particular percentage of our peer group and are granted in relative proportion of 35% and 65%, calculated based on the fair valuesuccessful closing of the awards on the date of grant. Stock optionsMerger and RSUs typically vest monthly over 48 months. Beginning in 2016, in an effort to more closely align compensation to company performance, the Company issued performance restricted stock units, or pRSUs, that vest only under previously determined specific conditions. The pRSUs granted in 2016 shall vest on the following schedule:
i.50% of the shares underlying such pRSU shall vest if the Company's Phase 3 IMPRESS trial meets a statistically significant positive endpoint;
ii.25% of the shares underlying such pRSU shall vest if the Company's NDA for Algenpantucel-L is accepted for filing by the FDA; and
iii.25% of the shares underlying such pRSU shall vest if GDC-0919 advances into Phase 2 development and the Company receives a milestone payment related to such advancement pursuant to the terms of the License and Collaboration Agreement dated October 16, 2014 by and among the Company, NewLink Global, Genentech, Inc. and F. Hoffman-LaRoche Ltd., as the same may be amended from time to time.



In 2016, our executives were granted stock options and restricted stock unitsRSUs are a means to help retain executives and drive the company into the post-Merger future. The Compensation Committee believes this vehicle mix further reinforces our pay for performance philosophy, as follows:value is only provided to executives if shareholder value is created and the executive remains with the company.

NEOOptions (#)RSUs (#)pRSUs (#)(1)
Charles J. Link, Jr., M.D.133,43546,63928,053
Nicholas N. Vahanian, M.D.84,27529,45619,637
John B. Henneman, III196,35116,2019,819
Brian Wiley48,2596,3827,013
Carl Langren28,9893,1421,122
(1)As a result of the performance conditions described in detail above, in connection with the negative result from our IMPRESS trial, 75% of each of these pRSUs were forfeited in 2016.

20172020 Equity Grants

On January 3, 2017,April 1, 2020, our Compensation Committee granted executives stock options, but did not awardthe following equity awards to our executives any RSUs or pRSUs. For Dr. Link, Dr. Vahanian, and Mr. Henneman, 50% of option grants will vest monthly over 48 monthly installments, as in past years. The other 50% of options grants will vest contingent on the achievement of performance conditions as follows:
i.12.50% upon completion of current planned Phase 1 equivalency study of new indoximod salt formulation with “completion” measured by the last patient enrolled in such study
ii.12.50% upon completion of the current planned Phase 1 study of pro-indoximod new chemical entity with "completion" measured by the last patient enrolled in such study
iii.12.50% upon increase of closing share price of the Company’s common stock on the Nasdaq Stock Market by at least 33% above exercise price of the stock options granted on January 3, 2017, when measured over 30 consecutive calendar days (must occur by January 3, 2021 or such shares will be forfeited), and
iv.12.50% upon increase of closing share price of the Company’s common stock on the Nasdaq Stock Market by at least 50% above the exercise price of the stock options granted on January 3, 2017, when measured over 30 consecutive calendar days (must occur by January 3, 2021 or such shares will be forfeited).

ExecutiveTime-vesting
Stock Options (#)
RSUs (#)
Richard J. Hawkins135,00025,000
John C. McKew65,00013,000
Eugene P. Kennedy, M.D.45,0009,000
Carl W. Langren45,0009,000
Bradley J. Powers25,0004,500
V.    Additional Compensation Policies and Practices
Anti-Hedging and Anti-Pledging Policies

We have adopted a Policy on Stock Trading by Employees, Officers and Directors. That policy expressly prohibitprohibits our employees and directors from: (i) engaging in hedging transactions or (ii) pledging our stock as collateral.
Officer Stock Ownership Guidelines
In 2017, we adopted stock ownership guidelines for our executives. The guideline for our Chief Executive Officer is ownership of our equity securities with a value of at least 3.0 times his annual base salary, for our President is at least 2.0 times his annual base salary and for the other executive officers is at least 1.0 times their respective base salaries. The applicable guidelines must be met within three years.
27


Federal Tax Considerations Under Sections 162(m) and 409A

Section 162(m) limits ourof the Internal Revenue Code generally disallows public companies a tax deduction for federal income tax purposes to not more thanof remuneration in excess of $1 million of compensation paid to specifiedthe chief executive officer and certain other highly compensated executive officers in a calendarany taxable year. Compensation aboveFor tax years beginning before January 1, 2018, remuneration in excess of $1 million may be deductedwas deductible if it is performance-based compensationqualified as “performance-based compensation” within the meaning of Section 162(m). With of the exceptionInternal Revenue Code. The exemption from Section 162(m)’s deduction limit for performance-based compensation was repealed, effective for taxable years beginning after December 31, 2017, such that the compensation paid to our covered executive officers in excess of fiscal year 2014,$1 million will not be deductible unless it qualifies for transition relief applicable to certain arrangements in place as of November 2, 2017, that have not been subsequently materially modified. While our Compensation Committee is mindful of the benefit of being able to fully deduct the compensation paid to our named executive officers, our Compensation Committee believes that we have had a history of operating lossesshould retain the flexibility to provide compensation to our named executive officers that is not fully tax deductible when it believes that such payments are appropriate to attract and expectretain executive talent or meet other business objectives. Our Compensation Committee intends to continue to incur operating losses for the foreseeable future. These net operating loss carryforwards would have the effect of offsetting certain future taxable gains, and as such, we generally do not consider the tax implications ofcompensate our executive compensation programs to be meaningful to our operating or financial results. To maintain flexibility in compensating ournamed executive officers in a manner designedconsistent with the best interests of our Company and our stockholders even if any portion of such compensation is non-deductible.

In addition to promote our compensation objectives, ourconsidering the tax consequences, the Compensation Committee has not yet established a policy for determining which forms of incentive compensation awarded to our executive officers will be designed to qualify as performance-based compensation.
In December 2016, our Compensation Committee reviewedconsiders the Company’s current practices with respect to Section 162(m) and the potential benefits, costs, and risks of conforming the incentive compensation arrangementsaccounting consequences of its executive officers to Section 162(m)decisions, including the impact of expenses being recognized in connection with equity-based awards, in determining the size and determined that no change in practice was necessary. However, our Compensation Committee continuesform of different equity-based awards.


to evaluate the effects of the compensation limits of Section 162(m) on any compensation it proposes to grant, and our Compensation Committee intends to provide future compensation in a manner consistent with our best interests and those of our stockholders.
Section 409A of the Code addresses the tax treatment of nonqualified deferred compensation benefits and provides for significant taxes and penalties in the case of payment of nonqualified deferred compensation. We currently structure and intend to continue to structure our executive compensation programs to avoid triggering these taxes and penalties under Section 409A.
Accounting Considerations

We account for equity compensation paid to our employees in accordance with Accounting Standards Codification, or ASC, topic 718, which requires us to measure and recognize compensation expense in our financial statements for all share-based payments based upon an estimate of their fair value over the service period of the award. We record cash compensation as an expense at the time the obligation is incurred.

401(k) Plan

Our employees, including our executive officers, are eligible to participate in our 401(k) plan. Our 401(k) plan is intended to qualify as a tax qualified plan under Section 401 of the Code. Pursuant to the terms of our 401(k) plan, we provide a non-elective employer contribution of up to 3%5% of each participant’s eligible compensation, or the Safe Harbor Contribution, with a possibility of additional discretionary contributions. In January 2016, our Board approved discretionary employer contributions in amounts that, when added to the Safe Harbor Contributions, amounted to 4.5% of total potential 2016 cash compensation for each member of the senior management team and 5% of total 2016 cash compensation for all other eligible employees.

Other Benefits and Perquisites

We pay at least a portion of the premiums for medical insurance, dental insurance, life insurance and accidental death and dismemberment insurance benefits to all full-time employees, including our executive officers. These benefits are available to all employees, subject to applicable laws.
From time to time, we have provided relocation expenses in connection with the relocation of executive officers to the geographic area of our corporate headquarters in Ames, Iowa and Austin, Texas. In connection with the establishment of a corporate headquarters in Austin, Texas, we agreed to reimburse the cost of apartment leases in Austin, Texas, for Dr. Link and Dr. Vahanian in 2016 given the significant time commitment involved with oversight of clinical and commercial operations in Texas. We intend to continue to provide relocation expenses in the future, as necessary, to obtain the services of qualified individuals.
Employment Agreements and Potential Benefits Related to Change in Control or Termination
On January 4, 2016, we entered into a new form of employment agreement with each of the named executive officers. These agreements with Dr. Link, Dr. Vahanian, Mr. Wiley and Mr. Langren amend and restate the existing employment agreements with such named executive officers described above. The agreement with Mr. Henneman is the first employment agreement between us and Mr. Henneman.
The material terms of these agreements include: (i) an annual base salary that is subject to annual review and periodic adjustment but that cannot be decreased without the executive’s express written consent or in connection with an across-the-board decrease in salaries that proportionally affects all executives; (ii) eligibility for an annual performance bonus targeted at a percentage of the executive’s base salary and based on the Company and the executive’s performance as determined by our Board and our Compensation Committee; and (iii) participation in benefit plans and programs generally available to our employees and executives.
Upon the executive’s termination without cause, resignation for good reason or death or disability, the executive is entitled to receive certain benefits, subject to the executive’s execution of a separation and release agreement and continuing compliance with obligations to us. Such benefits include (i) continuing base salary payments for a certain number of months (the number of months varying by executive); (ii) receipt of a prorated bonus based on the number of days worked during the year of separation; (iii) twelve months of accelerated vesting of the executive’s outstanding equity awards; and (iv) post-employment reimbursement of COBRA health insurance payments for a certain number of months (the number of months varying by executive).
Given the nature of the industry in which we participate and the range of strategic initiatives that we may explore, we believe these severance and change of control benefits are an essential element of our executive compensation package and assist us in recruiting and retaining talented individuals. In addition, since we believe it may be difficult for our executive officers to find comparable employment following a termination without cause or resignation with good reason in connection with or following a change in control, these severance and change in control benefits are intended to ease the consequences to an executive officer of an unexpected termination of employment. By establishing these severance and change in control benefits, we believe we can mitigate the distraction and loss of executive officers that may occur in connection with rumored or actual fundamental corporate changes and thereby protect shareholder interests while a transaction is under consideration or pending.


See the section below titled “Employment Agreements” for a summary of the new terms.
Compensation Policies and Practices as They Relate to Risk Management
We believe that risks arising from our compensation policies and practices for our employees are not reasonably likely to have a material adverse effect on us. In addition, our Compensation Committee believes that the mix and design of the elements of executive compensation do not encourage management to assume excessive risks.
Our Compensation Committee annually reviews the elements of executive compensation to determine whether any portion of executive compensation encouraged excessive risk taking and has concluded that:
significant weighting towards long-term incentive compensation discourages short-term risk taking, including use of multi-year vesting for equity awards, which comprise the majority of compensation awards;
goals are set to focus mainly on key events related to the overall success of our product development rather than individual elements;
our anti-hedging, anti-pledging policies and stock ownership guidelines are important safeguard against excessive risk taking;
incentive awards are benchmarked to calculate reasonable overall compensation; and
as a biopharmaceutical business, we do not face the same level of risks associated with compensation for employees at financial services companies (traders and instruments with a high degree of risk).
Furthermore, as described above in “Compensation Discussion and Analysis,” compensation decisions include subjective considerations, which help to constrain the influence of formulae or objective factors on excessive risk taking.


Summary Compensation Table
The following table sets forth information regarding compensation earned during the years ended December 31, 2016, 2015 and 2014, by our named executive officers.

Name and Principal PositionYear
Salary
($)
Bonus (1)Stock Awards (2)(3)($)
Option
Awards(4)($)
Non-Equity
 Incentive Plan Compensation
 ($)(5)
All Other
Compensation
($)(6)
 
Total
($)
Charles J. Link, Jr., M.D.2016659,900
55,000
2,594,053
3,071,426
230,965
93,500
(7)6,704,844
Chief Executive & Scientific Officer2015640,700

1,964,250
3,825,722
422,862
102,960
(8)6,956,494
 2014573,200

758,990
1,354,861
515,880
88,277
(9)3,291,208
          
Nicholas N. Vahanian, M.D.2016574,300
43,000
1,705,000
1,939,848
143,575
44,200
(10)4,449,923
President & Chief Medical Officer2015531,800

1,091,250
2,167,018
305,785
61,706
(11)4,157,559
 2014453,600

523,810
887,667
340,200
47,530
(12)2,252,807
          
John B. Henneman, III2016423,600
26,250
903,675
2,153,813
84,720
26,729
 3,618,787
Chief Financial Officer & Secretary2015365,200

87,300
173,896
167,992
23,994
 818,382
 201490,000

936,108
2,990,967


 4,017,075
          
Brian Wiley2016370,700
19,525
465,208
637,668
64,873
22,755
 1,580,729
Chief Commercial Officer2015319,600

323,010
626,027
95,880
18,697
 1,383,214
 2014262,500

121,866
338,917
118,125
15,356
 856,764
          
Carl Langren2016277,500
12,625
148,089
346,385
41,625
16,588
 842,812
Vice President of Finance2015250,000

222,615
441,290
75,000
14,625
 1,003,530
          



(1)The amounts shown in this column represent the supplementary cash bonuses earned by the named executive officers with respect to the fiscal year in connection with the restructuring of the Company after the failure of the Phase 3 algenpantucel-L clinical trials. For additional information, see the Compensation Discussion and Analysis beginning on page 22 of this proxy statement.
(2)The assumptions we used in valuing RSUs are described under the caption “Share-Based Compensation” in note 2(l) to our financial statements included in our Annual Report on Form 10-K filed March 6, 2017. This column reflects compensation expense that would be recorded under FASB ASC topic 718 as stock-based compensation in our financial statements for the indicated year in connection with RSUs we granted in the indicated year.
(3)The amounts shown in this column include compensation expense associated with performance based RSUs that were forfeited in 2016. No compensation expense was recorded under FASB ASC 718 in the Company's 2016 consolidated statement of operations. The following table shows the compensation expense associated with the RSUs that were forfeited:
     Charles J. Link, Jr. M.D.$730,719
     Nicholas N. Vahanian, M.D.$511,503
     John B. Henneman, III$255,752
     Brian Wiley$182,680
     Carl Langren$29,243
(4)The assumptions we used in valuing options are described under the caption “Share-Based Compensation” in note 2 to our financial statements included in our Annual Report on Form 10-K filed March 6, 2017. This column reflects compensation expense that would be recorded under FASB ASC topic 718 as stock-based compensation in our financial statements for the indicated year in connection with options we granted in the indicated year, disregarding the effects of any estimate of forfeitures related to service-based vesting.
(5)The amounts shown in this column represent the cash bonuses earned by the named executive officers with respect to the fiscal year under our performance-based cash bonus program. Amounts earned with respect to the fiscal year are generally paid in the first quarter of the following year. For additional information, see the Compensation Discussion and Analysis beginning on page 22 of this proxy statement.
(6)Unless otherwise indicated, amounts in this column represent our contributions under our 401(k) plan.
(7)Amount includes: (i) a $46,200 contribution under our 401(k) plan; and (ii) $47,300 in personal benefits received by Dr. Link that we reimbursed or paid on his behalf in 2016, including rent.
(8)Amount includes: (i) a $47,860 contribution under our 401(k) plan; and (ii) $55,100 in perquisites and personal benefits received by Dr. Link that we reimbursed or paid on his behalf in 2015, including rent.
(9)Amount includes: (i) a $41,270 contribution under our 401(k) plan; and (ii) $47,007 in perquisites and personal benefits received by Dr. Link that we reimbursed or paid on his behalf in 2014, including rent.
(10)Amount includes: (i) a $35,000 contribution under our 401(k) plan; and (ii) $9,200 in personal benefits received by Dr. Vahanian that we reimbursed or paid on his behalf in 2016, including rent.
(11)Amount includes: (i) a $37,691 contribution under our 401(k) plan; and (ii) $24,014 in personal benefits received by Dr. Vahanian that we reimbursed or paid on his behalf in 2015, including rent.
(12)Amount includes: (i) a $30,618 contribution under our 401(k) plan; and (ii) $16,912 in personal benefits received by Dr. Vahanian that we reimbursed or paid on his behalf in 2014, including rent.



























Grants of Plan-Based Awards
  
Estimated Future Payouts under
Non-Equity Incentive Plan Awards(1)
All Other Stock Awards: Number of Units (#) (2) 
All other Option
Awards: Number of
Securities
Underlying Options
(#)(3)
 
Exercise or
Base Price of
Option
Awards
($/Sh)(4)
Grant Date Fair Value of   Option and Stock Awards(5)
NameGrant Date
Threshold
($)
Target
($)
Maximum
($)
Charles J. Link, Jr., M.D.1/4/2016461,930461,930  

 

  

 
 1/4/2016   46,639
    $1,619,772
 1/4/2016   28,053
(6)   $974,281
 1/4/2016     133,435
 34.73$3,071,426
Nicholas N. Vahanian, M.D.1/4/2016287,150287,150  

 

  

 
 1/4/2016   29,456
    $1,023,007
 1/4/2016   19,637
(6)   $681,993
 1/4/2016     84,275
 34.73$1,939,848
John B. Henneman, III1/4/2016169,440169,440      
 1/4/2016   16,201
    $562,661
 1/4/2016   9,819
(6)   $341,014
 1/4/2016     46,351
 34.73$1,066,910
 8/9/2016     150,000
 10.78$1,086,903
Brian Wiley1/4/2016129,745129,745      
 1/4/2016   6,382
    $221,647
 1/4/2016   7,013
(6)   $243,561
 1/4/2016     18,259
 34.73$420,287
 8/9/2016     30,000
 10.73$217,381
Carl Langren1/4/201683,25083,250      
 1/4/2016   3,142
    $109,122
 1/4/2016   1,122
(6)   $38,967
 1/4/2016     8,989
 34.73$203,677
  8/9/2016     20,000
 10.78$142,708



(1)These columns show the possible target and maximum cash bonus payments to the named executive officers for the year ended December 31, 2016 under our performance-based cash bonus program, which is described in more detail in the Compensation Discussion and Analysis beginning on page 22 of this proxy statement. The actual cash bonus awards earned by the named executive officers for the year ended December 31, 2016 are set forth in the Summary Compensation Table above under the column entitled “Non-Equity Incentive Plan Compensation,” and the amounts set forth in these columns do not represent additional compensation paid to or earned by the named executive officers for the year ended December 31, 2016.
(2)This column shows the number of shares of common stock underlying restricted stock units ("RSUs") granted to the named executive officers during the year ended December 31, 2016 under our 2009 Equity Incentive Plan. Unless otherwise indicated, the RSUs vest in four equal annual installments on the anniversary of grant.
(3)This column shows the number of shares of common stock underlying stock options granted to the named executive officers during the year ended December 31, 2016 under our 2009 Equity Incentive Plan. The stock options have a 10-year term and vest in equal monthly installments over the subsequent forty-eight months, subject to the recipient's continued employment with us through such vesting dates.
(4)This column shows the exercise price for the stock options granted to the named executive officers during the year ended December 31, 2016, which equals the fair value of our common stock on the date of grant.
(5)This column shows the full grant date fair value of the stock and option awards granted to the named executive officers during the year ended December 31, 2016, calculated under FASB ASC Topic 718. The full grant date fair value is the amount that we recognize as stock-based compensation expense in our financial statements over the required service period of the award. For additional information, see note 2(l) to our financial statements included in our Annual Report on Form 10-K, filed March 6, 2017.
(6)Performance Restricted Stock Unit Awards shall vest on the following schedule: (i) 50% of the shares underlying such RSU shall vest if the Company's Phase 3 IMPRESS trial meets a statistically significant positive endpoint, (ii) 25% of the shares underlying such RSU shall vest if the Company's NDA for Algenpantucel is accepted for filing by the FDA and (iii) 25% of the shares underlying such RSU shall vest if GDC-0919 advances into Phase 2 development and the Company receives a milestone payment related to such advancement pursuant to the terms of the License and Collaboration Agreement dated October 16, 2014 by and among the Company, NewLink Global, Genentech, Inc. and F. Hoffman-LaRoche Ltd., as the same may be amended from time to time.

Narrative Disclosure to Summary Compensation Table and Grants of Plan-Based Awards Table

The value and amount of stock options awarded to Mr. John B. Henneman, III in 2014, as shown in the table of Summary Compensation under the heading “Options Awards” reflects an initial stock option award upon such executive’s start of employment with us intended to align the executive’s equity holdings in us with the general level of equity holdings of executives with similar roles and responsibilities at similarly situated companies. In contrast, the value and amount of stock options granted to our other named executive officers reflect annual, or “refresh”, stock option grants. Accordingly, the value and amount of stock options awarded to Mr. Henneman in 2014 were relatively higher, considering each executive’s role with us, than the value and amount of stock options awarded to our other named executive officers in those years.
In August 2016, the Company issued stock options under a program designed to retain key employees following the failure of our Phase 3 clinical trials for algenpantucel-L. Mr. Henneman, Mr. Wiley and Mr. Langren each received stock options pursuant to such retention program, which grants are set forth in the "Grants of Plan-Based Awards" table beginning on page 38 of this proxy statement. These retention stock option grants resulted in a higher value and a larger number of stock options than had been awarded historically to such officers. Dr. Link and Dr. Vahanian did not receive stock options under this program.
The amount of salary and bonus for each of our NEOs in proportion to his total compensation, and the factors that our Compensation Committee considered in determining the proportion, are discussed under the heading “Compensation Discussion and Analysis” above.

Employment Agreements
We have entered into employment agreements with each of the NEOs.named executive officers. The material terms of the agreements that were in effect during fiscal 20162020 for the NEOsnamed executive officers are summarized below. Each of these agreements also contains severance and change of control provisions discussed under the heading "Potential“Potential Payments Upon Termination or Change in Control"Control” beginning on page 4532 of this proxy statement.


Employment Agreement with Dr. CharlesRichard J. Link, Jr.Hawkins

Pursuant to the employment agreement between us and Dr. Link that was amended and restated on January 4, 2016, Dr. LinkMr. Hawkins dated March 27, 2020, Mr. Hawkins earns an annual base salary, which is subject to annual review and adjustment by our Board. For 2016, Dr. Link2020, Mr. Hawkins earned an annual base salary of $659,900. Dr. Link$560,000. Mr. Hawkins is also eligible to receive an annual performance bonus based on his achievement of certain milestones and performance objectives. For 2016, Dr. Link’sIn 2020, Mr. Hawkins’ target bonus was set at 70%55% of his annual base salary.

The employment agreement with Dr. LinkMr. Hawkins also provides that his employment with us is at-will and may be altered or terminated by either Dr. LinkMr. Hawkins or us at any time. However, if we terminate Dr. Link’sMr. Hawkins’ employment without just cause or if he resigns for good reason (other than in connection with a change in control of us), as long as Dr. LinkMr. Hawkins executes a general release in favor of us, he will be entitled to receive certain payments and other benefits, which are described in more
28


detail under the heading “Potential Payments Upon Termination or Change in Control” beginning on page 4532 of this proxy statement.

The employment agreement with Dr. LinkMr. Hawkins further provides that if we (or any surviving or acquiring corporation) terminate Dr. Link’sMr. Hawkins’ employment without just cause or if he resigns for good reason within one month prior to or 13 months following the effective date of a change in control, as long as Dr. LinkMr. Hawkins executes a general release in favor of us (or any surviving or acquiring corporation), he will be entitled to receive certain payments and other benefits, which are described in more detail under the heading “Potential Payments Upon Termination or Change in Control” beginning on page 4532 of this proxy statement.

Employment Agreement with Dr. Nicholas N. VahanianJohn C. McKew

Pursuant to the employment agreement between us and Dr. Vahanian that was amended and restated on January 4, 2016,McKew dated March 27, 2020, Dr. VahanianMcKew earns an annual base salary, which is subject to annual review and adjustment by our Board. For 2016,2020, Dr. VahanianMcKew earned an annual base salary of $574,300.$460,000. Dr. VahanianMcKew is also eligible to receive an annual performance bonus based on his achievement of certain milestones and performance objectives. For 2016,In 2020, Dr. Vahanian’sMcKew’s target bonus was set at 50%45% of his annual base salary.

The employment agreement with Dr. VahanianMcKew also provides that his employment with us is at-will and may be altered or terminated by either Dr. VahanianMcKew or us at any time. However, if we terminate Dr. Vahanian’sMcKew’s employment without just cause or if he resigns for good reason (other than in connection with a change in control of us), as long as Dr. VahanianMcKew executes a general release in favor of us, he will be entitled to receive certain payments and other benefits, which are described in more detail under the heading “Potential Payments Upon Termination or Change in Control” beginning on page 4532 of this proxy statement.

The employment agreement with Dr. VahanianMcKew further provides that if we (or any surviving or acquiring corporation) terminate Dr. Vahanian’sMcKew’s employment without just cause or if he resigns for good reason within one month prior to or 13 months following the effective date of a change in control, as long as Dr. VahanianMcKew executes a general release in favor of us (or any surviving or acquiring corporation), he will be entitled to receive certain payments and other benefits, which are described in more detail under the heading “Potential Payments Upon Termination or Change in Control” beginning on page 4532 of this proxy statement.

Employment Agreement with John B. Henneman, IIIDr. Eugene Kennedy
On January 4, 2016, we entered into an employment agreement with Mr.  Henneman in connection with his employment as Executive Vice President, Chief Financial Officer and Secretary.
Pursuant to the employment agreement Mr. Henneman earnsbetween us and Dr. Kennedy dated September 30, 2019, Dr. Kennedy earned an annual base salary, which iswas subject to annual review and adjustment by our Board. In 2016, Mr. HennemanFor 2020, Dr. Kennedy earned an annual base salary of $423,600. Mr. Henneman is$459,638. Dr. Kennedy was also eligible to receive an annual performance bonus based on his achievement of certain milestones and performance objectives. In 2016, Mr. Henneman’s2020, Dr. Kennedy’s target bonus was set at 40% of his annual base salary.

The employment agreement with Mr. HennemanDr. Kennedy also providesprovided that his employment with us iswas at-will and may becould have been altered or terminated by either Mr. HennemanDr. Kennedy or us at any time. However, if we terminate Mr. Henneman’sterminated Dr. Kennedy’s employment without just cause or if he resignsresigned for good reason (other than in connection with a change in control of us), as long as Mr. Henneman executesDr. Kennedy executed a general release in favor of us, he will bewould have been entitled to receive certain payments and other benefits, which are described in more detail under the heading “Potential Payments Upon Termination or Change in Control” beginning on page 4532 of this proxy statement.

The employment agreement with Mr. HennemanDr. Kennedy further providesprovided that if we (or any surviving or acquiring corporation) terminate Mr. Henneman’sterminated Dr. Kennedy’s employment without just cause or if he resignsresigned for good reason within one month prior to or 13 months following the effective date of a change in control, as long as Mr. Henneman executesDr. Kennedy executed a general release in favor of us (or any surviving or acquiring corporation), he will bewould have been entitled to receive certain payments and other benefits, which are described in more detail under the heading “Potential Payments Upon Termination or Change in Control” beginning on page 4532 of this proxy statement.

Dr. Kennedy resigned as our Chief Medical Officer on March 5, 2021.

29


Employment Agreement with Mr. Brian WileyCarl W. Langren
Pursuant to the employment agreement between us and Mr. Wiley that was amended and restated January 4, 2016, Mr. Wiley earns an annual base salary, which is subject to annual review and adjustment by our Board. In 2016, Mr. Wiley earned an annual base salary of $370,700. Mr. Wiley is also eligible to receive an annual performance bonus based on his achievement of certain milestones and performance objectives. In 2016, Mr. Wiley’s target bonus was set at 35% of his annual base salary.
The employment agreement with Mr. Wiley also provides that his employment with us is at-will and may be altered or terminated by either Mr. Wiley or us at any time. However, if we terminate Mr. Wiley’s employment without just cause or if he resigns for good reason (other than in connection with a change in control of us), as long as Mr. Wiley executes a general release in favor of us, he will be entitled to receive certain payments and other benefits, which are described in more detail under the heading “Potential Payments Upon Termination or Change in Control” beginning on page 45 of this proxy statement.
The employment agreement with Mr. Wiley further provides that if we (or any surviving or acquiring corporation) terminate Mr. Wiley’s employment without just cause or if he resigns for good reason within one month prior to or 13 months following the effective date of a change in control, as long as Mr. Wiley executes a general release in favor of us (or any surviving or acquiring corporation), he will be entitled to receive certain payments and other benefits, which are described in more detail under the heading “Potential Payments Upon Termination or Change in Control” beginning on page 45 of this proxy statement.
Employment Agreement with Mr. Carl Langren
Pursuant to the employment agreement between us and Mr. Langren that was amended and restated January 4, 2016,dated September 30, 2019, Mr. Langren earns an annual base salary, which is subject to annual review and adjustment by our Board. In 2016,For 2020, Mr. Langren earned an annual base salary of $277,500.$389,025. Mr. Langren is also eligible to receive an annual performance bonus based on his achievement of certain milestones and performance objectives. In 2016,For 2020, Mr. Langren’s target bonus was set at 30%40% of his annual base salary.

The employment agreement with Mr. Langren also provides that his employment with us is at-will and may be altered or terminated by either Mr. Langren or us at any time. However, if we terminate Mr. Langren’s employment without just cause or if he resigns for good reason (other than in connection with a change in control of us), as long as Mr. Langren executes a general release in favor of us, he will be entitled to receive certain payments and other benefits, which are described in more detail under the heading “Potential Payments Upon Termination or Change in Control” beginning on page 4532 of this proxy statement.

The employment agreement with Mr. Langren further provides that if we (or any surviving or acquiring corporation) terminate Mr. Langren’s employment without just cause or if he resigns for good reason within one month prior to or 13 months following the effective date of a change in control, as long as Mr. Langren executes a general release in favor of us (or any surviving or acquiring corporation), he will be entitled to receive certain payments and other benefits, which are described in more detail under the heading “Potential Payments Upon Termination or Change in Control” beginning on page 4532 of this proxy statement.

Employment Agreement with Bradley J. Powers

Pursuant to the employment agreement between us and Mr. Powers dated September 30, 2019, Mr. Powers earns an annual base salary, which is subject to annual review and adjustment by our Board. For 2020, Mr. Powers earned an annual base salary of $380,000. Mr. Powers is also eligible to receive an annual performance bonus based on his achievement of certain milestones and performance objectives. For 2020, Mr. Powers’ target bonus was set at 35% of his annual base salary.

The employment agreement with Mr. Powers also provides that his employment with us is at-will and may be altered or terminated by either Mr. Powers or us at any time. However, if we terminate Mr. Powers’ employment without just cause or if he resigns for good reason (other than in connection with a change in control of us), as long as Mr. Powers executes a general release in favor of us, he will be entitled to receive certain payments and other benefits, which are described in more detail under the heading “Potential Payments Upon Termination or Change in Control” beginning on page 32 of this proxy statement.

The employment agreement with Mr. Powers further provides that if we (or any surviving or acquiring corporation) terminate Mr. Powers’ employment without just cause or if he resigns for good reason within one month prior to or 13 months following the effective date of a change in control, as long as Mr. Powers executes a general release in favor of us (or any surviving or acquiring corporation), he will be entitled to receive certain payments and other benefits, which are described in more detail under the heading “Potential Payments Upon Termination or Change in Control” beginning on page 32 of this proxy statement.

Confidential Information and Inventions Agreement
Each of our named executive officers has entered into a form agreement with respect to confidential information and inventions. Among other things, this agreement obligates each named executive officer to refrain from disclosing any of our confidential information received during the course of employment and, with some exceptions, to assign to us any inventions conceived or developed during the course of employment.

Each of our named executive officers entered into a new form of agreement with respect to confidential information and inventions on January 4, 2016. The terms of these new agreements did not materially change from those to which the executives were previously party.



Option Exercises and Stock Vested in 2016
The following table sets forth information regarding each exercise of stock options, and each vesting of restricted stock units, during the year ended December 31, 2016 for each of our NEOs on an aggregated basis.
30


NameNumber of Shares Acquired on Exercise of Stock Options(#)Number of Shares Acquired on RSU Vest(#)Value Realized on Exercise or Vest ($)
Charles J. Link, Jr. M.D.
 
Chief Executive & Scientific Officer 17,000
$618,630
    
    
Nicholas N. Vahanian, M.D.
 
President & Chief Medical Officer 10,000
$363,900
    
    
John B. Henneman, III
 
Chief Financial Officer & Secretary 10,697
$171,354
    
    
Brian Wiley
 
Chief Commercial Officer 3,275
$119,177
    
    
Carl Langren
 
Vice President of Finance 2,700
$98,253
    
    
Outstanding Equity Awards at December 31, 20162020
The following table provides information about outstanding stock options and restricted stock unitsRSUs held by each of our named executive officers at December 31, 2016.2020. All of these options or restricted stock unitsRSUs were granted under our 2000 Equity Incentive Plan or our 2009 Equity Incentive2019 Plan.


Option AwardsStock Awards
Number of Shares Underlying Unexercised Options(1)
Name(#) Exercisable(#) Unexercisable (2)Grant DateOption Exercise PriceOption Expiration DateNumber of Shares or Units of Stock That Have Not Vested (#)(3)Market Value of Shares or Units of Stock That Have Not Vested ($)(4)
Richard J. Hawkins12,706 49,368 4/1/2020$7.87 3/31/2030
9,794 63,132 4/1/2020$7.87 3/31/2030
14,656 4,968 6/27/2019$1.84 6/26/2029
4/1/202025,000892,750
John C. McKew56 — 8/29/2018$2.45 8/28/2028
9,579 54,167 4/1/2020$7.87 3/31/2030
66,697 — 7/11/2016$4.82 7/10/2026
8,215 1,368 1/18/2018$2.45 1/17/2028
1,254 — 4/1/2020$7.87 3/31/2030
6,485 — 8/29/2018$2.45 8/28/2028
14,993 — 7/11/2016$4.82 7/10/2026
4/1/202013,000464,230
Eugene P. Kennedy, M.D.— 1,714 (5)3/1/2019$16.20 2/28/2029
— 1,712 (6)3/1/2019$16.20 2/28/2029
— 1,712 (7)3/1/2019$16.20 2/28/2029
— 2,569 (8)3/1/2019$16.20 2/28/2029
6,250 12,985 (9)7/31/2019$15.93 7/31/2026
— 2,203 3/1/2019$16.20 2/28/2029
— 26,250 4/1/2020$7.87 3/31/2030
7,500 11,250 4/1/2020$7.87 3/31/2030
2,569 — 3/1/2019$16.20 2/28/2029
4/1/20209,000321,390
Carl W. Langren— 1,714 (5)3/1/2019$16.20 2/28/2029
— 1,712 (6)3/1/2019$16.20 2/28/2029
— 1,712 (7)3/1/2019$16.20 2/28/2029
— 2,569 (8)3/1/2019$16.20 2/28/2029
5,078 12,373 (9)7/31/2019$15.93 7/31/2026
— 15,000 4/1/2020$7.87 3/31/2030
— 2,203 3/1/2019$16.20 2/28/2029
7,500 22,500 4/1/2020$7.87 3/31/2030
6,312 1,762 3/1/2019$16.20 2/28/2029
2,569 — 3/1/2019$16.20 2/28/2029
4/1/20209,000321,390
Bradley J. Powers— 741 (5)3/1/2019$16.20 2/28/2029
— 740 (6)3/1/2019$16.20 2/28/2029
— 740 (7)3/1/2019$16.20 2/28/2029
— 1,111 (8)3/1/2019$16.20 2/28/2029
1,897 1,714 3/1/2019$16.20 2/28/2029
687 1,200 (9)7/31/2019$15.93 7/31/2026
1,834 20,169 4/1/2020$7.87 3/31/2030
4,232 1,322 8/1/2018$28.53 7/31/2028
2,332 665 4/1/2020$7.87 3/31/2030
31


 Number of Shares Underlying Unexercised Options(1)Number of Shares Underlying Unvested Restricted Stock Units (2)Option Grant DateOption Exercise PriceOption Expiration Date
         
 (#) Exercisable
 (#) Unexercisable (3)     
         
Charles J. Link, Jr., M.D.2,564
(4)(8)
   6/1/2007$0.801/21/2019
 264,474
(4)(6)
   6/1/2007$4.205/13/2019
 468,037
(4)(6)
   12/4/2009$2.105/13/2019
 428,571
 
   1/1/2009$2.9712/4/2019
 50,792
 
   4/14/2011$7.004/13/2021
 44,446
 
   4/14/2011$7.004/13/2021
 9,385
 
   1/19/2012$6.871/18/2022
 130,615
 
   1/19/2012$6.871/18/2022


 6,782
 3,230
   1/14/2013$11.791/13/2023
 144,988
 
   1/14/2013$11.791/13/2023
 
 5,162
   1/2/2014$21.381/1/2024
 79,296
(5)24,292
   1/2/2014$21.381/1/2024
     11,500
 1/2/2014$21.38 
 
(5)3,471
   1/2/2015$43.651/1/2025
 68,520
(5)71,009
   1/2/2015$43.651/1/2025
     33,750
 1/2/2015$43.65 
 
(5)2,780
   1/4/2016$34.731/3/2026
 30,578
(5)100,077
   1/4/2016$34.731/3/2026
     46,639
 1/4/2016$34.73 
     7,013
(9)1/4/2016$34.73 
          
Nicholas N. Vahanian, M.D.145,451
(4)(7)
   6/1/2007$2.105/12/2019
 59,444
 
   6/1/2007$2.105/12/2019
 45,160
 
   12/4/2009$2.9712/3/2019
 335,792
 
   12/4/2009$2.9712/3/2019
 190,476
 
   3/3/2010$3.073/2/2020
 14,286
 
   4/14/2011$7.004/13/2021
 28,571
 
   4/14/2011$7.004/13/2021
 16,159
 
   1/19/2012$6.871/18/2022
 63,841
 
   1/19/2012$6.871/18/2022
 7,510
 1,875
   1/14/2013$11.791/13/2023
 80,615
 
   1/14/2013$11.791/13/2023
 
(5)5,128
   1/2/2014$21.381/1/2024
 51,953
(5)14,169
   1/2/2014$21.381/1/2024
     7,500
 1/2/2014$21.38 
 
(5)3,251
   1/2/2015$43.651/1/2025
 38,812
(5)38,937
   1/2/2015$43.651/1/2025
     18,750
 1/2/2015$43.65 
 
(5)2,513
   1/4/2016$34.731/3/2026
 19,313
(5)62,449
   1/4/2016$34.731/3/2026
     29,456
 1/4/2016$34.73 
     4,909
(9)1/4/2016$34.73 
          
John B. Henneman, III8,714
 8,714
   10/1/2014$22.959/30/2024
 104,629
 87,193
   10/1/2014$22.959/30/2024
     20,395
 10/1/2014$22.95 
 
(5)136
   1/2/2015$43.651/1/2025
 3,114
(5)3,250
   1/2/2015$43.651/1/2025
     1,500
 1/2/2015$43.65 
 
(5)3,674
   1/4/2016$34.731/3/2026


 10,622
(5)32,055
   1/4/2016$34.731/3/2026
 16,666
(5)133,334
   8/9/2016$10.788/8/2026
     16,201
 1/4/2016$34.73 
     2,455
(9)1/4/2016$34.73 
          
Brian Wiley8,481
 4,250
   1/14/2013$11.791/13/2023
 86,269
 
   1/14/2013$11.791/13/2023
 
(5)2,896
   1/2/2014$21.381/1/2024
 19,687
(5)4,417
   1/2/2014$21.381/1/2024
     2,850
 1/2/2014$21.38 
 
(5)2,503
   1/2/2015$43.651/1/2025
 11,212
(5)9,685
   1/2/2015$43.651/1/2025
     5,550
 1/2/2015$43.65 
 
(5)2,647
   1/4/2016$34.731/3/2026
 4,184
(5)11,428
   1/4/2016$34.731/3/2026
 3,333
(5)26,667
   8/9/2016$10.788/8/2026
     6,382
 1/4/2016$34.73 
     1,753
(9)1/4/2016$34.73 
          
Carl Langren9,523
 
   12/14/2007$2.1012/13/2017
 2,380
 
   3/3/2010$3.073/2/2020
 2,564
(8)
   1/8/2011$0.801/20/2019
 16,666
 
   4/14/2011$7.004/13/2021
 18,076
 
   10/19/2011$7.0010/18/2021
 5,733
 
   10/19/2011$7.0010/18/2021
 10,944
 
   1/19/2012$6.871/18/2022
 4,056
 
   1/19/2012$6.871/18/2022
 10,198
 417
   1/14/2013$11.791/13/2023
 9,385
 
   1/14/2013$11.791/13/2023
 1,916
(5)5,010
   1/2/2014$21.381/1/2024
 17,771
(5)2,303
   1/2/2014$21.381/1/2024
     2,850
 1/2/2014$21.38 
 
(5)2,355
   1/2/2015$43.651/1/2025
 7,810
(5)6,135
   1/2/2015$43.651/1/2025
     3,825
 1/2/2015$43.65 
 
(5)2,435
   1/4/2016$34.731/3/2026
 2,059
(5)4,495
   1/4/2016$34.731/3/2026
 
(5)660
   8/9/2016$10.788/8/2026
 2,222
(5)17,188
   8/9/2016$10.788/8/2026
     3,142
 1/4/2016$34.73 
     280
(9)1/4/2016$34.73 



(1)Unless otherwise indicated, these options have a 10-year term and vest over a four-year period, with 25% of the options vesting on the first anniversary of the vesting commencement date and the remaining 75% of the options vesting in equal monthly installments thereafter over the next three years, subject to the recipient's continued employment with us through such vesting dates.
(2)Unless otherwise indicated, these restricted stock units vest annually over a four-year period, with 25% vesting on each of the first, second, third and fourth anniversaries, subject to the recipient's continued employment with us through such vesting dates.
(3)This column shows options that were unvested as of December 31, 2016.
(4)These options vest over a five-year period, with 20% of the options vesting on the first anniversary of the vesting commencement date and the remaining 80% of the options vesting in equal monthly installments thereafter over the next four years, subject to the recipient's continued employment with us through such vesting dates.
(5)These options vest in equal monthly installments over 48 months.
(6)Dr. Link was granted a total option of 732,511 shares at $2.10 per share, which was amended on July 1, 2010 and split into separate grants of 468,037 with a price of $2.10 and 264,474 with a price of $4.20.
(7)Dr. Vahanian was granted a total option of 331,296 shares at $2.10 per share, which was amended on July 1, 2010 and split into separate grants of 313,673 with a price of $2.10 and 17,624 with a price of $4.20.
(8)This number represents outstanding stock options to purchase our stock that were issued on January 7, 2011 in exchange for options to purchase stock in our subsidiary, BioProtection Systems Corporation.
(9)Represents outstanding performance restricted stock unit awards that will vest only upon previously specified performance based measures or will be forfeited.

833 — 3/1/2019$16.20 2/28/2029— 
1,111 — 3/1/2019$16.20 2/28/2029— 
4/1/20204,500160,695 
(1)Unless otherwise indicated, these options have a 10-year term and vest in substantially equal monthly installments over a four-year period, subject to the recipient's continued employment with us through such vesting dates.
(2)This column shows options that were unvested as of December 31, 2020.
(3)Unless otherwise indicated, these RSUs vest annually over a four-year period, with 25% vesting on each of the first, second, third and fourth anniversaries of grant date, subject to the recipient's continued employment with us through such vesting dates.
(4)Calculated by multiplying the number of RSUs by $35.71, the closing market price of our common stock on December 31, 2020.
(5)These options will vest upon an increase of closing share price of the Company’s common stock on the Nasdaq Stock Market by at least 33.33% above exercise price of the stock options, when measured over 30 consecutive calendar days (must occur within four years of the Date of Grant or such shares will be forfeited).
(6)These options will vest upon an increase of closing share price of the Company’s common stock on the Nasdaq Stock Market by at least 66.66% above exercise price of the stock options, when measured over 30 consecutive calendar days (must occur within four years of the Date of Grant or such shares will be forfeited).
(7)These options will vest upon an increase of closing share price of the Company’s common stock on the Nasdaq Stock Market by at least 100% above exercise price of the stock options, when measured over 30 consecutive calendar days (must occur within four years of the Date of Grant or such shares will be forfeited).
(8)These options vest upon enrollment of the first patient in a clinical trial that is registration eligible.
(9)These options were granted in connection with the forfeiture of previously held options under the stock option exchange program described in more detail and approved by stockholders at our 2019 Annual Meeting.

Potential Payments Upon Termination or Change in Control
Under our 2009 Equity Incentive2019 Plan, the vesting of stock options granted to our employees and officers may be accelerated in connection with specified corporate transactions and change in control transactions. Other than as set forth in the tables below, none of our other option grants provide for acceleration of vesting of any options in connection with such a transaction, except for certain options originally granted under our 2000 Equity Incentive Plan that may vest upon a change in control if the acquirer does not assume outstanding option grants. In addition, under our 2010 Non-Employee Directors’ Stock Award Plan, in the event of a change in control, 100% of the shares subject to each Director’s options will vest.

Under the terms of employment agreements with certain of our named executive officers in effect as of December 31, 2016,2020, if we terminate such named executive officer’s employment for “cause” or such named executive officer resigns without “good reason,” such named executive officer is entitled to the following: (i) any salary earned but unpaid prior to termination; (ii) any benefits accrued prior to termination; (iii) all accrued but unused vacation; and (iv) any business expenses that were incurred but not reimbursed as of the date of termination (collectively, the “Accrued Obligations”). Following such termination, vesting of such named executive officer’s then outstanding stock options shall cease on the date of such termination.

Under the terms of employment agreements with such named executive officers, if we terminate such named executive officer’s employment without cause or such named executive officer resigns with good reason (other than in connection with a change in control), and in each case such named executive officer signs a general release and written acknowledgment of his continuing obligations under his confidentiality and inventions assignment agreement with us, such named executive officer is entitled to the following: (i) payment of the Accrued Obligations; (ii) depending on the named executive officer and as described in the tables below, the equivalent of 24, 1812 or 6 months of such named executive officer’s base salary as in effect immediately prior to the termination date, payable on the same basis and at the same time as previously paid and subject to employment tax withholdings and deductions; (iii) for certain of the named executive officers and as described in the tables below, a bonus payout equal to the most recent annual bonus paid to the named executive officer or a portion thereof; and (iv) depending on the named executive officer and as described in the tables below, payment of such named executive officer’s COBRA premiums for 24, 18, 12 or 6 months to be paid in order for such named executive officer to maintain medical insurance coverage that is substantially equivalent to that which such named executive officer received immediately prior to the termination payment of premiums for his group health insurance.insurance and (v) 12 months accelerated vesting of such named executive officer’s equity compensation awards (so such executive becomes vested in the portion of such awards that would have become vested if executive remained employed for 365 days after the termination date) and depending on the named executive officer and as described in the tables below, extension of the window to exercise such options for up to 12 months. In the event that such named executive officer breaches his confidentiality, non-compete or non-solicitation obligations under his confidentiality and inventions assignment agreement with us, the payments described above, except for the Accrued Obligations, shall cease, and we shall have no further obligations to such named executive officer with respect thereto. Our obligation to pay such named executive officer’s COBRA premiums ceases upon such named executive officer’s eligibility for comparable coverage provided by a new employer.

32


Under the terms of the employment agreements with the named executive officers in effect as of December 31, 2016,2020, if we (or any surviving or acquiring corporation) terminate a named executive officer’s employment without cause or a named


executive officer resigns with good reason within one month prior to or 13 months following the effective date of a change in control (either constituting a “Change of Control Termination”), and in each case such named executive officer signs a general release and written acknowledgment of his continuing obligations under his confidentiality and inventions assignment agreement with us, such named executive officer is entitled to the following: (i) payment of the Accrued Obligations; (ii) depending on the named executive officer and as described in the tables below, the equivalent of 24, 18 or 12 months of such named executive officer’s base salary as in effect immediately prior to the termination date, payable on the same basis and at the same time as previously paid and subject to employment tax withholdings and deductions; (iii) depending on the named executive officer and as described in the tables below, a bonus payout equal to two, one and one-half or one times the most recent annual cash bonus paid to the named executive officer; (vi)(iv) depending on the named executive officer as described in the tables below, payment of such named executive officer’s COBRA premiums for 24, 18 or 12 months to be paid in order for such named executive officer to maintain medical insurance coverage that is substantially equivalent to that which such named executive officer received immediately prior to the termination payment of premiums for his group health insurance; and (v) we will vest 100% of the shares subject to such named executive officer’s equity compensation awards and such vesting shall occur upon the occurrence of the change of control in the case of a Change of Control Termination occurring prior to the change in control or upon termination in the case of a Change of Control Termination occurring after the change of control. If a named executive officer breaches his confidentiality, non-compete or non-solicitation obligations under his confidentiality and inventions assignment agreement with us, the payments described above, except for the Accrued Obligations, shall cease, and we shall have no further obligations to such named executive officer with respect thereto. Our obligation to pay such named executive officer’s COBRA premiums ceases upon such named executive officer’s eligibility for comparable coverage provided by a new employer.

The following tables reflect the estimated potential payments that would be payable to each named executive officer, upon a termination or change in control of us under the terms of his employment agreement in effect as of December 31, 2016.2020. The amounts shown below reflect only the additional payments or benefits that each named executive officer would have received upon the occurrence of the respective triggering events listed below, but they do not include the value of payments or benefits that would have been earned, or any amounts associated with equity awards that would have vested, absent the triggering event. For purposes of calculating the potential payments set forth in the tables below, we have assumed that (i) the date of termination was December 31, 20162020 and (ii) the stock price was $10.28,$35.71, which was the per share closing price of our common stock on the NASDAQ Global Market on December 31, 2016.2020.






33


        
Charles J. Link, Jr., M.D. 
Termination
For Just Cause or
Resignation
Without Good
Reason
 
Termination
Without Just
Cause or
Resignation
With Good
Reason
 
Termination
Without Just
Cause or
Resignation With
Good Reason (in
connection with a
Change in Control)
 
Cash Payments       
Cash Severance  $1,550,765
(1)$1,781,730
(2)
Long-Term Incentives       
Stock Options (Unvested and Accelerated)   $944,619
(3)
Benefits and Perquisites       
Accrued Obligations $299,493
(4)$299,493
(4)$299,493
(4)
Benefits Continuation  $29,610
(5)$29,610
(5)
        
Total Payments Upon Termination $299,493
 $1,879,868
 $3,055,452
 
        

Richard J. Hawkins
Termination
For Just Cause or
Resignation
Without Good
Reason
Termination
Without Just
Cause or
Resignation
With Good
Reason
Termination
Without Just
Cause or
Resignation With
Good Reason (in
connection with a
Change in Control)
Cash Payments
Cash Severance$896,336 (1)$1,792,672 (2)
Long-Term Incentives
RSUs and Stock Options (Unvested and Accelerated)4,193,016(3)(4)4,193,016(3)(4)
Benefits and Perquisites
Accrued Obligations96,923(5)96,923(5)96,923(5)
Benefits Continuation19,682 (6)39,364 (7)
Total Payments Upon Termination$96,923 $5,205,957 $6,121,975 
(1)Amount represents 12 months of his base salary in effect as of January 1, 2020 and an amount equal to his most recent annual bonus.
(1)(2)Amount represents 24 months of his base salary then in effect and an amount equal to one times his most recent annual bonus.
(2)Amount represents 24 monthsas of his base salary then in effectJanuary 1, 2020 and an amount equal to two times his most recent annual bonus.
(3)(3)Amount represents the in-the-money value of unvested RSUs as of December 31, 2020, using the closing price per share of our common stock on December 31, 2020. As per the terms of Mr. Hawkins' employment agreement, the unvested RSUs would accelerate and immediately vest under either a termination without just cause or resignation with good reason or a termination without just cause or resignation with good reason in connection with a change of control.
(4)Amount represents the value of in-the-money unvested stock options as of December 31, 2016,2020, using the intrinsic value of the options calculated using the spread between the exercise price of each option and the closing price per share of our common stock on December 31, 2016 based on the value of our common stock used for purposes of calculating compensation expense under FASB ASC topic 718.2020. The number of shares underlying such stock options and the exercise price thereof are reflected in the columns entitled “Number of Shares Underlying Unexercised Options-Unexercisable” and “Option Exercise Price,” respectively, in the “OutstandingOutstanding Equity Awards at December 31, 2016” table set forth on page 42section of this proxy statement.
(4)(5)Amount represents $299,493 in accrued vacation.
(6)Amount represents 12 months of COBRA premiums.
(5)(7)Amount represents 24 months of COBRA premiums.



        
Nicholas N. Vahanian, M.D. 
Termination
For Just Cause or
Resignation
Without Good
Reason
 
Termination
Without Just
Cause or
Resignation
With Good
Reason
 
Termination
Without Just
Cause or
Resignation With
Good Reason (in
connection with a
Change in Control)
 
Cash Payments       
Cash Severance  $1,005,025
(1)$1,256,281
(2)
Long-Term Incentives       
Stock Options (Unvested and Accelerated)   $572,658
(3)
Benefits and Perquisites       
Accrued Obligations $218,786
(4)$218,786
(4)$218,786
(4)
Benefits Continuation  $22,207
(5)$25,908
(6)
        
Total Payments Upon Termination $218,786
 $1,246,018
 $2,073,633
 
        


John C. McKew
Termination
For Just Cause or
Resignation
Without Good
Reason
Termination
Without Just
Cause or
Resignation
With Good
Reason
Termination
Without Just
Cause or
Resignation With
Good Reason (in
connection with a
Change in Control)
Cash Payments
Cash Severance$460,000 (1)$1,029,066 (2)
Long-Term Incentives
RSUs and Stock Options (Unvested and Accelerated)2,017,739(3)(4)2,017,739(3)(4)
Benefits and Perquisites
Accrued Obligations64,161(5)64,161(5)64,161(5)
Benefits Continuation19,682 (6)29,523 (7)
Total Payments Upon Termination$64,161 $2,561,582 $3,140,489 
(1)Amount represents 12 months of his base salary in effect as of January 1, 2020.
(1)(2)Amount represents 18 months of his base salary then in effect as of January 1, 2020 and an amount equal to one and one half times his most recent annual bonus.
(2)Amount represents 21 months of his base salary then in effect and an amount equal to 1.75 times his most recent annual bonus.
(3)(3)Amount represents the in-the-money value of unvested RSUs as of December 31, 2020, using the closing price per share of our common stock on December 31, 2020. As per the terms of Dr. McKews' employment agreement, the unvested RSUs would accelerate and immediately vest under either a termination without just cause or resignation with good reason or a termination without just cause or resignation with good reason in connection with a change of control.
(4)Amount represents the value of in-the-money unvested stock options as of December 31, 2016,2020, using the intrinsic value of the options calculated using the spread between the exercise price of each option and the closing price per share of our common stock on December 31, 2016 based on the value of our common stock used for purposes of calculating compensation expense under FASB ASC topic 718.2020. The number of shares underlying such stock options and the exercise price thereof are reflected in the columns entitled “Number of Shares Underlying Unexercised Options-Unexercisable” and “Option Exercise Price,” respectively, in the “OutstandingOutstanding Equity Awards at December 31, 2016” table set forth on page 42section of this proxy statement.
(4)(5)Amount represents $218,786 in accrued vacation.
(6)Amount represents 12 months of COBRA premiums.
(5)(7)Amount represents 18 months of COBRA premiums.
(6)Amount represents 21 months of COBRA premiums.




34


        
John B. Henneman, III 
Termination
For Just Cause or
Resignation
Without Good
Reason
 
Termination
Without Just
Cause or
Resignation
With Good
Reason
 
Termination
Without Just
Cause or
Resignation With
Good Reason (in
connection with a
Change in Control)
 
Cash Payments       
Cash Severance  $423,600
(1)$762,480
(2)
Long-Term Incentives       
Stock Options (Unvested and Accelerated)   $391,627
(3)
Benefits and Perquisites       
Accrued Obligations $91,237
(4)$91,237
(4)$91,237
(4)
Benefits Continuation  $14,805
(5)$22,207
(6)
        
Total Payments Upon Termination $91,237
 $529,642
 $1,267,551
 
        


Eugene P. Kennedy
Termination
For Just Cause or
Resignation
Without Good
Reason
Termination
Without Just
Cause or
Resignation
With Good
Reason
Termination
Without Just
Cause or
Resignation With
Good Reason (in
connection with a
Change in Control)
Cash Payments
Cash Severance$459,638 (1)$660,407 (2)
Long-Term Incentives
RSUs and Stock Options (Unvested and Accelerated)1,849,954(3)(4)1,849,954(3)(4)
Benefits and Perquisites
Accrued Obligations79,553(5)79,553(5)79,553(5)
Benefits Continuation(6)
Total Payments Upon Termination$79,553 $2,389,145 $2,589,914 
(1)(1)Amount represents 12 months of his base salary then in effect.effect as of January 1, 2020.
(2)(2)Amount represents 1812 months of his base salary then in effect as of January 1, 2020 and an amount equal to 1.5 times his most recent annual bonus.
(3)(3)Amount represents the in-the-money value of unvested RSUs as of December 31, 2020, using the closing price per share of our common stock on December 31, 2020. As per the terms of Dr. Kennedy's employment agreement, the unvested RSUs would accelerate and immediately vest under either a termination without just cause or resignation with good reason or a termination without just cause or resignation with good reason in connection with a change of control.
(4)Amount represents the value of in-the-money unvested stock options as of December 31, 2016,2020, using the intrinsic value of the options calculated using the spread between the exercise price of each option and the closing price per share of our common stock on December 31, 2016 based on the value of our common stock used for purposes of calculating compensation expense under FASB ASC topic 718.2020. The number of shares underlying such stock options and the exercise price thereof are reflected in the columns entitled “Number of Shares Underlying Unexercised Options-Unexercisable” and “Option Exercise Price,” respectively, in the “OutstandingOutstanding Equity Awards at December 31, 2016” table set forth on page 42section of this proxy statement.
(4)(5)Amount represents $91,237 in accrued vacation.
(6)
(5)Amount represents 12 months ofDr. Kennedy has voluntarily waived COBRA premiums.
(6)Amount represents 18 months of COBRA premiums.coverage.





        
Brian Wiley 
Termination
For Just Cause or
Resignation
Without Good
Reason
 
Termination
Without Just
Cause or
Resignation
With Good
Reason
 
Termination
Without Just
Cause or
Resignation With
Good Reason (in
connection with a
Change in Control)
 
Cash Payments       
Cash Severance  $185,350
(1)$435,573
(2)
Long-Term Incentives       
Stock Options (Unvested and Accelerated)   $151,959
(3)
Benefits and Perquisites       
Accrued Obligations $79,843
(4)$79,843
(4)$79,843
(4)
Benefits Continuation  $7,402
(5)$14,805
(6)
        
Total Payments Upon Termination $79,843
 $272,595
 $682,180
 
        


Carl W. Langren
Termination
For Just Cause or
Resignation
Without Good
Reason
Termination
Without Just
Cause or
Resignation
With Good
Reason
Termination
Without Just
Cause or
Resignation With
Good Reason (in
connection with a
Change in Control)
Cash Payments
Cash Severance$389,025 (1)$838,427 (2)
Long-Term Incentives
RSUs and Stock Options (Unvested and Accelerated)1,837,849 (3)(4)1,837,849 (3)(4)
Benefits and Perquisites
Accrued Obligations83,790 (5)83,790 (5)83,790 (5)
Benefits Continuation13,231 (6)19,847 (7)
Total Payments Upon Termination$83,790 $2,323,895 $2,779,913 
(1)
(1)Amount represents six months of his base salary then in effect.
(2)Amount represents 12 months of his base salary then in effect as of January 1, 2020.
(2)Amount represents 18 months of his base salary in effect as of January 1, 2020 and an amount equal to 11.5 times his most recent annual bonus.
(3)
(3)Amount represents the in-the-money value of unvested RSUs as of December 31, 2020, using the closing price per share of our common stock on December 31, 2020. As per the terms of Mr. Langren's employment agreement, the unvested RSUs would accelerate and immediately vest under either a termination without just cause or resignation with good reason or a termination without just cause or resignation with good reason in connection with a change of control.
(4)Amount represents the value of in-the-money unvested stock options as of December 31, 2016,2020, using the intrinsic value of the options calculated using the spread between the exercise price of each option and the closing price per share of our common stock on December 31, 2016 based on the value of our common stock used for purposes of calculating compensation expense under FASB ASC topic 718.2020. The number of shares underlying such stock options and the exercise price thereof are reflected in the columns entitled “Number of Shares Underlying Unexercised Options-Unexercisable” and “Option Exercise Price,” respectively, in the “OutstandingOutstanding Equity Awards at December 31, 2016” table set forth on page 42section of this proxy statement.
(5)
(4)Amount represents $79,843 in accrued vacation.
(6)
(5)Amount represents six months of COBRA premiums.
(6)Amount represents 12 months of COBRA premiums.
(7)Amount represents 18 months of COBRA premiums.




35


        
Carl Langren 
Termination
For Just Cause or
Resignation
Without Good
Reason
 
Termination
Without Just
Cause or
Resignation
With Good
Reason
 
Termination
Without Just
Cause or
Resignation With
Good Reason (in
connection with a
Change in Control)
 
Cash Payments       
Cash Severance  $138,750
(1)$319,125
(2)
Long-Term Incentives       
Stock Options (Unvested and Accelerated)   $100,919
(3)
Benefits and Perquisites       
Accrued Obligations $24,548
(4)$24,548
(4)$24,548
(4)
Benefits Continuation  $7,402
(5)$14,805
(6)
        
Total Payments Upon Termination $24,548
 $170,700
 $459,397
 
        


Bradley J. Powers
Termination
For Just Cause or
Resignation
Without Good
Reason
Termination
Without Just
Cause or
Resignation
With Good
Reason
Termination
Without Just
Cause or
Resignation With
Good Reason (in
connection with a
Change in Control)
Cash Payments
Cash Severance$380,000 (1)$525,236 (2)
Long-Term Incentives
RSUs and Stock Options (Unvested and Accelerated)872,389 (3)(4)872,389 (3)(4)
Benefits and Perquisites
Accrued Obligations65,769 (5)65,769 (5)65,769 (5)
Benefits Continuation19,682 (6)19,682 (6)
Total Payments Upon Termination$65,769 $1,337,840 $1,483,076 
(1)Amount represents six months of his base salary then in effect.
(2)(1)Amount represents 12 months of his base salary then in effect as of January 1, 2020.
(2)Amount represents 12 months of his base salary in effect as of January 1, 2020 and an amount equal to 1 times his most recent annual bonus.
(3)(3)Amount represents the in-the-money value of unvested RSUs as of December 31, 2020, using the closing price per share of our common stock on December 31, 2020. As per the terms of Mr. Powers' employment agreement, the unvested RSUs would accelerate and immediately vest under either a termination without just cause or resignation with good reason or a termination without just cause or resignation with good reason in connection with a change of control.
(4)Amount represents the value of in-the-money unvested stock options as of December 31, 2016,2020, using the intrinsic value of the options calculated using the spread between the exercise price of each option and the closing price per share of our common stock on December 31, 2016 based on the value of our common stock used for purposes of calculating compensation expense under FASB ASC topic 718.2020. The number of shares underlying such stock options and the exercise price thereof are reflected in the columns entitled “Number of Shares Underlying Unexercised Options-Unexercisable” and “Option Exercise Price,” respectively, in the “OutstandingOutstanding Equity Awards at December 31, 2016” table set forth on page 42section of this proxy statement.
(4)(5)Amount represents $24,548 in accrued vacation.
(5)Amount represents six months of COBRA premiums.
(6)(6)Amount represents 12 months of COBRA premiums.



36


CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

We have not been a party since January 1, 20132020 to any transactions, in which the amount involved in the transaction exceeds $120,000 (which is less than 1% of the average of our total assets at the end of the last two completed fiscal years), and in which any of our directors, executive officers or to our knowledge, beneficial owners of more than 5% of our capital stock had or will have a direct or indirect material interest, other than compensation, termination and change in control arrangements, which are described in more detail in the Compensation Discussion and Analysissection entitled "Executive Compensation" beginning on page 2226 of this proxy statement.

Policies and Procedures for Related Person Transactions

Our Board has adopted written policies and procedures for the review of any transaction, arrangement or relationship in which we are a participant, the amount involved exceeds $120,000 and one of our executive officers, directors, director nominees or 5% stockholders (or their immediate family members), each of whom we refer to as a “related"related person," has a direct or indirect material interest.

If a related person proposes to enter into such a transaction, arrangement or relationship, which we refer to as a “related"related person transaction," the related person must report the proposed related person transaction to our Audit Committee. The policy calls for the proposed related person transaction to be reviewed and, if deemed appropriate, approved by our Audit Committee. Whenever practicable, the reporting, review and approval will occur prior to entry into the transaction. If advance review and approval is not practicable, our Audit Committee will review, and, in its discretion, may ratify the related person transaction. Any related person transactions that are ongoing in nature will be reviewed annually.

A related person transaction reviewed under the policy will be considered approved or ratified if it is authorized by our Audit Committee after full disclosure of the related person’s interest in the transaction. As appropriate for the circumstances, our Audit Committee will review and consider:

the related person’sperson's interest in the related person transaction;
the approximate dollar value of the amount involved in the related person transaction;
the approximate dollar value of the amount of the related person’sperson's interest in the transaction without regard to the amount of any profit or loss;
whether the transaction was undertaken in the ordinary course of our business;
whether the terms of the transaction are no less favorable to us than terms that could have been reached with an unaffiliated third party;
the purpose of, and the potential benefits to us of, the transaction; and
any other information regarding the related person transaction or the related person in the context of the proposed transaction that would be material to investors in light of the circumstances of the particular transaction.

Our Audit Committee may approve or ratify the transaction only if the committeeAudit Committee determines that, under all of the circumstances, the transaction is in, or is not inconsistent with, our best interests. Our Audit Committee may impose any conditions on the related person transaction that it deems appropriate.
    
In addition to the transactions that are excluded by the instructions to the SEC’s related person transaction disclosure rule, our Board has determined that the following transactions do not create a material direct or indirect interest on behalf of related persons and, therefore, are not related person transactions for purposes of this policy:

interests arising solely from the related person’s position as an executive officer of another entity (whether or not the person is also a director of such entity), that is a participant in the transaction, where (a) the related person and all other related persons own in the aggregate less than a 10% equity interest in such entity, (b) the related person and his or her immediate family members are not involved in the negotiation of the terms of the transaction and do not receive any special benefits as a result of the transaction or (c) the amount involved in the transaction equals less than the greater of $200,000 or 5% of the annual consolidated gross revenues of our receiving payment under the transaction; and
a transaction that is specifically contemplated by provisions of our certificate of incorporation or bylaws.

The policy provides that transactions involving compensation of executive officers shall be reviewed and approved by our Compensation Committee in the manner specified in its charter.

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Limitation of Liability and Indemnification
    
Our amended and restated bylaws require us to indemnify our directors to the fullest extent not prohibited by law and permit us to indemnify our officers, employees and other agents as set forth under Delaware law. We will indemnify any such person in connection with a proceeding initiated by such person only if such indemnification is expressly required by law, the proceeding was authorized by our Board, the indemnification is provided by us, in our sole discretion, pursuant to the Delaware General Corporation Law or other applicable law or is otherwise expressly required by our amended and restated bylaws. Section 145 of the Delaware General Corporation Law permits indemnification of officers, directors and other agents under specified circumstances and subject to specified limitations. Delaware law also permits a corporation not to hold its directors personally liable for monetary damages for breach of their fiduciary duties as directors, except for liability for:

breach of their duty of loyalty to the corporation or its stockholders;
acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law;
unlawful payments of dividends or unlawful stock repurchases or redemptions; and
any transaction from which the director derived an improper personal benefit.

These limitations of liability do not affect the availability of equitable remedies such as injunctive relief or rescission.

Our amended and restated bylaws also permit us to secure insurance on behalf of any officer, director, employee or other agent for any liability arising out of his or her actions in this capacity. We have obtained directors’ and officers’ liability insurance to cover certain liabilities described above.

We have entered into indemnity agreements with each of our directors that require us to indemnify such persons against any and all expenses, including attorneys’ fees, witness fees, judgments, fines, settlements and other amounts incurred, including expenses of a derivative action, in connection with any action, suit or proceeding or alternative dispute resolution mechanism, inquiry hearing or investigation, whether threatened, pending or completed, to which any such person may be made a party by reason of the fact that such person is or was one of our directors, officers or employees, provided that such person’s conduct did not constitute a breach of his or her duty of loyalty to us or our stockholders, and was not an act or omission not in good faith or which involved intentional misconduct or a knowing violation of laws. The indemnity agreements also set forth procedures that will apply in the event of a claim for indemnification thereunder. We believe that these provisions and agreements are necessary to attract and retain qualified persons as our directors.

On or about May 12, 2016, Trevor Abramson filed a putative securities class action lawsuit in the United States District Court for the Southern District of New York (the Court), captioned Abramson v. NewLink Genetics Corp., et al., Case 1:16-cv-3545. The plaintiff asserts16-cv-3545 (the Securities Action). Subsequently, the Court appointed Michael and Kelly Nguyen as lead plaintiffs and approved their selection of Kahn, Swick & Foti, LLC as lead counsel in the Securities Action. On October 31, 2016, the lead plaintiffs filed an amended complaint asserting claims under the federal securities laws against the Company, ourthe Company’s Chief Executive Officer Dr.Charles J. Link, Jr., and ourthe Company’s Chief Medical Officer Dr. Vahanian.and President Nicholas Vahanian (collectively, the Defendants). The amended complaint alleges the Defendants made material false and/or misleading statements that caused losses to the Company’s investors. The Defendants filed a motion to dismiss the amended complaint on July 14, 2017. On March 29, 2018, the Court dismissed the amended complaint for failure to state a claim, without prejudice, and gave the lead plaintiffs until May 4, 2018 to file any amended complaint attempting to remedy the defects in their claims. On May 4, 2018, the lead plaintiffs filed a second amended complaint asserting claims under the federal securities laws against the Defendants. Like the first amended complaint, the second amended complaint alleges that the Defendants made material false and/or misleading statements or omissions relating to the Phase 2 and 3 trials and efficacy of the product candidate algenpantucel-L that caused losses to the Company’s investors. The lead plaintiffs do not quantify any alleged damages in the second amended complaint but, in addition to attorneys’ fees and costs, they sought to recover damages on behalf of themselves and other persons who purchased or otherwise acquired the Company’s stock during the putative class period of September 17, 2013 through May 9, 2016, inclusive, at allegedly inflated prices and purportedly suffered financial harm as a result. The Defendants filed a motion to dismiss the second amended complaint on July 31, 2018. On February 13, 2019, the Court dismissed the second amended complaint for failure to state a claim, with prejudice, and closed the case. On March 14, 2019, lead plaintiffs filed a notice of appeal. The briefing on lead plaintiffs' appeal was completed in early July 2019 and oral argument before the Second Circuit Court of Appeals was held on October 21, 2019. In an opinion dated July 13, 2020, the Second Circuit Court of Appeals affirmed the district court’s dismissal of the second amended complaint in part, vacated the district court’s dismissal of the second amended complaint in part, and remanded the matter to the district court for further proceedings. On August 6, 2020, the Defendants filed a Petition for Rehearing en banc requesting reconsideration of portions of the opinion from the Second Circuit Court of Appeals. The Second Circuit Court of Appeals denied the Petition on September 8, 2020 and issued a mandate to the district court (the Court for the Southern District of New York) on September 15, 2020. On December 16, 2020, the Company reached a settlement in principle to fully resolve the Securities Action, and on February 1, 2021, a motion for preliminary approval of the settlement was filed in the Court for the Southern District of New York. On February 25, 2021 the Court for the Southern District of New York denied the motion for preliminary approval and directed the parties to re-submit the motion with certain revisions. On March 24, 2021 the parties re-submitted the motion for
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preliminary approval. The parties’ agreement, which remains subject to court approval and certain other conditions, provides in part for a $13.5 million settlement payment in exchange for the dismissal and a release of all claims against the Defendants in connection with the Securities Action. The full amount of the settlement payment is expected to be paid by the Company’s insurance provider under its insurance policy.

On or about April 26, 2017, Ronald Morrow filed a shareholder derivative lawsuit on behalf of the Company in the United States District Court for the Southern District of New York, or the Court, against the Company’s Chief Executive Officer Charles J. Link, Jr., the Company’s Chief Medical Officer and President Nicholas Vahanian, and Company directors Thomas A. Raffin, Joseph Saluri, Ernest J. Talarico, III, Paul R. Edick, Paolo Pucci, and Lota S. Zoth (collectively, the Morrow Defendants), captioned Morrow v. Link., et al., Case 1:17-cv-03039 (the Morrow Action). The complaint alleges that the Morrow Defendants caused the Company to issue false statements in its 2016 proxy statement regarding risk management and compensation matters in violation of federal securities law. The complaint also asserts state law claims against the Morrow Defendants for breaches of fiduciary duties, unjust enrichment, abuse of control, insider trading, gross mismanagement, and corporate waste, alleging that the Morrow Defendants made material misstatements or omissions related to the Phase 2 and 3 trials and efficacy of the product candidate algenpantucel-L, awarded themselves excessive compensation, engaged in illegal insider trading, and grossly mismanaged the Company. The plaintiff does not quantify any alleged damages in the complaint but seeks restitution for damages to the Company, attorneys’ fees, costs, and expenses, as well as an order directing that proposals for strengthening board oversight be put to a vote of the Company’s shareholders. The language for such proposals is not specified in the complaint. The plaintiff also contemporaneously filed a statement of relatedness, informing the Court that the Morrow Action is related to Abramson v. NewLink Genetics Corp., et al., Case 1:16-cv-3545. On May 19, 2017, the plaintiff dismissed the Morrow Action without prejudice. Also on May 19, 2017, plaintiffs’ counsel in the Morrow Action filed a new shareholder derivative complaint that is substantively identical to the Morrow Action, except that the plaintiff is Rickey Ely. The latter action is captioned Ely v. Link, et al., Case 17-cv-3799, or the Ely Action. By agreement of the parties and orders dated June 26, 2017 and March 20, 2019, the Court for the Southern District of New York temporarily stayed the Ely Action until the Securities Action is dismissed or otherwise finally resolved. The Company is indemnifying Dr. Link and Dr. Vahaniandisputes the claims in the action. Additional detail concerning this matter is included in our Company's previous filings with the SEC. Ely Action and intends to defend against them vigorously.

At present, other than the previously mentioned matter,matters, there is no pending litigation or proceeding involving any or our directors or officers for which indemnification is required or permitted, and we are not aware of any threatened litigation or proceeding that may result in a claim for indemnification.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted by directors, executive officers or persons controlling us, we have been informed that in the opinion of the SEC, such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.


OTHER INFORMATION

Stockholder Communications with Our Board of Directors

Our Board has adopted a formal process by which stockholders may communicate with our Board or any of its directors. This information is available on our website at www.newlinkgenetics.comwww.lumos-pharma.com in the “Investors & Media - Corporate Governance - Contact the Board” section.

Stockholder Proposals and Nominations of Directors

Stockholders who wish to submit a proposal for our 20182022 Annual Meeting of Stockholders must submit any such proposal by November 29, 2017,December 6, 2021, to Corporate Secretary, NewLink Genetics CorporationLumos Pharma, Inc., 2503 South Loop Drive, Ames, Iowa 500104200 Marathon Boulevard #200, Austin, TX 78756. If you wish to submit a director nomination or a proposal at next year’s annual meeting that is not to be included in next year’s proxy materials, you must do so by no later than the close of business on February 12, 2018,18, 2022, nor earlier than the close of business on


January 12, 2018,19, 2022, and you must comply with the requirements of Section 5(b) in the our Bylaws, including submitting written notice to our Corporate Secretary as set forth above.

The Company has not yet selected the date of the annual meeting of stockholders for next year, but is considering holding the meeting in May 2018.2022. If the date of the 20182022 annual meeting is advanced or delayed more than 30 days before or after the anniversary of the date of this Annual Meeting, notice by the stockholder to be timely must be so received not earlier than the close of business on the 120th day prior to such 20182022 annual meeting and not later than the close of business on the later of the 90th day prior to such 20182022 annual meeting or the 10th day following the day on which public announcement of the date of such meeting is first made. Submissions must include the full name of the proposed nominee, a description of the proposed nominee’s business experience for at least the previous five years, complete biographical information, a description of the proposed nominee’s qualifications as a director, a representation that the nominating stockholder is a beneficial or record holder of our common stock and such other information as is required under Section 5(b) of our Bylaws. Any such submission
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must be accompanied by the written consent of the proposed nominee to be named as a nominee and to serve as a director if elected.

Householding of Proxy Materials
The SEC has adopted rules that permit companies and intermediaries (e.g., brokers) to satisfy the delivery requirements for NoticesNotice of Internet Availability of Proxy Materials or other Annual Meeting materialswith respect to two or more stockholders sharing the same address by delivering a single Notice of Internet Availability of Proxy Materials or other Annual Meeting materialsaddressed to those stockholders. This process, which is commonly referred to as “householding,” potentially means extra convenience for stockholders and cost savings for companies.
This year, a number of brokers with account holders who are NewLink Genetics CorporationLumos stockholders will be “householding” our proxy materials. A single Notice of Internet Availability of Proxy Materials will be delivered 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” communications 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 Notice of Internet Availability of Proxy Materials, please notify your broker or NewLink Genetics Corporation.Lumos. Direct your written request to Corporate Secretary, NewLink Genetics Corporation, 2503 South Loop Drive, Ames, IA 50010Lumos Pharma, Inc., 4200 Marathon Boulevard #200, Austin, TX 78756 or contact our Corporate Secretary at (515)598-2561.(512) 215-2630. We undertake to promptly deliver, upon written or oral request, a separate copy of our Notice of Internet Availability of Proxy Materials to stockholders at a shared address to which a single copy of such documents was delivered. Stockholders who currently receive multiple copies of the NoticesNotice of Internet Availability of Proxy Materials at their addresses and would like to request “householding” of their communications should contact their brokers.

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OTHER MATTERS
Our Board knows of no other matters that will be presented for consideration at the Annual Meeting. If any other matters are properly brought before the meeting, it is the intention of the persons named in the accompanying proxy to vote on such matters in accordance with their best judgment.
By Order of the Board of Directors
/s/ John B. Henneman, IIICarl W. Langren     
John B. Henneman, IIICarl W. Langren
SecretaryChief Financial Officer
March 31, 2017April 6, 2021
A copy of our Annual Report to the Securities and Exchange Commission on Form 10-K for the fiscal year ended December 31, 20162020 is available without charge upon written request to: Corporate Secretary, NewLink Genetics Corporation, 2503 South Loop Drive, Suite 5100, Ames, IA 50010.Lumos Pharma, Inc., 4200 Marathon Boulevard #200, Austin TX 78756.



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