UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

SCHEDULE 14A

Proxy Statement Pursuant to Section 14(a) of the

Securities Exchange Act of 1934

(Amendment No.    )

 

 

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 Preliminary Proxy Statement
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 Definitive Proxy Statement
 Definitive Additional Materials
 Soliciting Material under §240.14a-12§240.14a-12

LANTHEUS HOLDINGS, 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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LOGO

March 16, 201815, 2019

To Our Stockholders:

We cordially invite you to attend Lantheus Holdings, Inc.’s 20182019 Annual Meeting of Stockholders, to be held on Thursday,Wednesday, April 26, 201824, 2019 at 11:00 a.m. (Eastern Time) at the DoubleTree—Bedford Glen, located at 44 Middlesex Turnpike, Bedford, MA 01730.

The Notice of Internet Availability of Proxy Materials and the proxy statement that follow describe the business to be conducted at the meeting.

Your vote is important. We encourage you to vote by proxy in advance of the meeting, whether or not you plan to attend the meeting. On behalf of the Board of Directors, thank you for your continued investment in our company.

Sincerely,

 

 

LOGO

Brian Markison

Chairman of the Board of Directors


LOGO

NOTICE OF ANNUAL MEETING OF STOCKHOLDERS

 

Meeting Date:

  Thursday,Wednesday, April 26, 201824, 2019

Time:

  11:00 a.m. (Eastern Time)

Place:

  

DoubleTree—Bedford Glen,

located at 44 Middlesex Turnpike, Bedford, MA 01730

We are holding our 20182019 Annual Meeting of Stockholders for the following purposes, which are described in more detail in the proxy statement, to:

 

 1.

elect fourthree Class IIII directors to the Board of Directors;

 

 2.

approve an amendment to the Amended and Restated Certificate of Incorporation of Lantheus Holdings, Inc. (our “Charter”)2015 Equity Incentive Plan to eliminateincrease the supermajority voting requirementnumber of shares of common stock reserved for amendments to certain provisions of the Charter;issuance thereunder by 825,000 shares; and

 

 3.approve an amendment to our Charter to permit holders of at least a majority of our common stock to call special meetings of the stockholders;

4.approve an amendment to our Charter to delete various provisions related to our former sponsor that are no longer applicable; and

5.ratify the appointment of Deloitte & Touche LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2018.2019.

At the meeting, we will also transact any other business as may properly come before the meeting or any adjournment or postponement thereof. Only stockholders of record as of the close of business on February 26, 20182019 will be entitled to attend and vote at the meeting.

We are pleased to take advantage of the Securities and Exchange Commission rules that allow companies to furnish their proxy materials over the Internet. We are sending to most of our stockholders a Notice of Internet Availability of Proxy Materials (the “Notice”) instead of paper copies of our proxy materials and our 20172018 Annual Report on Form10-K. The Notice contains instructions on how to access those documents and to cast your vote via the Internet. The Notice also contains instructions on how to request a paper copy of our proxy materials and our Annual Report. All stockholders who do not receive the Notice will receive a paper copy of the proxy materials and the Annual Report by mail. This process allows us to provide our stockholders with the information they need on a more timelytimelier basis, while lowering the costs of printing and distributing our proxy materials and reducing the environmental impact.

Your vote is important. We encourage you to vote by proxy in advance of the meeting, whether or not you plan to attend the meeting. The proxy statement includes instructions on how to vote, including by Internet and telephone. If you hold your shares through a brokerage firm, bank, broker-dealer or other similar organization, please follow their instructions.

By order of the Board of Directors,

Daniel M. NiedzwieckiMichael P. Duffy

Senior Vice President, Deputy General Counsel and

Assistant Secretary

March 16, 201815, 2019

Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting of

Stockholders to be held on April 26, 2018.24, 2019.

The Lantheus Holdings, Inc. Proxy Statement and Annual Report are available at  http://www.proxydocs.com/lnth.


TABLE OF CONTENTS

 

GENERAL INFORMATION

   1 

PROPOSAL 1: ELECTION OF DIRECTORS

   67 

CORPORATE GOVERNANCE

   78 

EXECUTIVE COMPENSATION

   1819 

DIRECTOR COMPENSATION

   2529 

STOCK OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

   2731 

SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE

   2933 

CERTAIN RELATIONSHIPS AND RELATED PERSON TRANSACTIONS

   30

AMENDMENTS TO OUR AMENDED AND RESTATED CERTIFICATE OF INCORPORATION (PROPOSALS 2 THROUGH 4)

3234 

PROPOSAL 2: AMENDMENT TO ELIMINATE THE SUPERMAJORITY VOTING REQUIREMENT FOR AMENDMENTS TO CERTAIN PROVISIONS OF OUR CHARTER2015 EQUITY INCENTIVE PLAN

   3435 

PROPOSAL 3: AMENDMENT TO PERMIT HOLDERS OF AT LEAST A MAJORITY OF OUR COMMON STOCK TO CALL SPECIAL MEETINGS OF THE STOCKHOLDERS

36

PROPOSAL 4: AMENDMENT TO DELETE VARIOUS PROVISIONS RELATED TO OUR FORMER SPONSOR THAT ARE NO LONGER APPLICABLE

37

PROPOSAL 5: RATIFICATION OF INDEPENDENT AUDITOR

   4144 

AUDIT COMMITTEE REPORT

   4245 

ADDITIONAL INFORMATION

   4346 

APPENDIX A: 2015 EQUITY INCENTIVE PLAN, AS AMENDED TO DATE, AND PROPOSED AMENDED AND RESTATED CERTIFICATE OF INCORPORATION OF LANTHEUS HOLDINGS, INC.AMENDMENT

   A-1 


LOGO

PROXY STATEMENT

20182019 ANNUAL MEETING OF STOCKHOLDERS

TO BE HELD ON APRIL 26, 201824, 2019

GENERAL INFORMATION

The Board of Directors (the “Board”) is making this proxy statement available to you on the Internet, or at your request has delivered printed versions to you by mail, in connection with the solicitation of proxies by the Board for our 20182019 Annual Meeting of Stockholders to be held on Thursday,Wednesday, April 26, 201824, 2019 at 11:00 a.m. (Eastern Time) at the DoubleTree—Bedford Glen, located at 44 Middlesex Turnpike, Bedford, MA 01730, and any adjournment or postponement of that meeting (the “Annual Meeting”). If you requested printed versions of these materials by mail, they will also include a proxy card for the Annual Meeting.

Pursuant to rules adopted by the Securities and Exchange Commission (“SEC”), we are providing access to our proxy materials over the Internet. Accordingly, we are sending a Notice of Internet Availability of Proxy Materials (the “Notice”) to our stockholders of record and beneficial owners as of the record date identified below. The mailing of the Notice to our stockholders is scheduled to begin on or about March 16, 2018.15, 2019.

IMPORTANT NOTICE REGARDING THE INTERNET AVAILABILITY OF PROXY MATERIALS

FOR THE ANNUAL STOCKHOLDERS MEETING TO BE HELD ON APRIL 26, 2018:24, 2019:

This Proxy Statement, the accompanying proxy card or voting instruction card and

our 20172018 Annual Report on Form10-K are each available at http://www.proxydocs.com/lnth.

In this proxy statement, unless the context requires otherwise, the words “Lantheus,” “Company,” “we,” “us” and “our” refer to Lantheus Holdings, Inc. and its subsidiaries. The mailing address of our principal executive offices is Lantheus Holdings, Inc., 331 Treble Cove Road, North Billerica, MA 01862.

In this proxy statement, we indicate that certain materials are available on our Investor Relations website at http://investor.lantheus.com. The information on our website is not part of, and is not incorporated into, this proxy statement.

EXPLANATORY NOTE

We are an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and we are, therefore, permitted to, and we intend to rely on, exemptions from certain disclosure requirements applicable to other public companies. For example, we are not required to provide our stockholders with the opportunity to vote on certain executive compensation matters on anon-binding advisory basis.

We will remain an emerging growth company until December 31, 2020 unless, prior to that time, we (i) have more than $1.07 billion in annual revenue, (ii) have a market value for our common stock held bynon-affiliates of more than $700 million as of the last day of our second fiscal quarter of the fiscal year when a determination is made that we are deemed to be a “large accelerated filer,” as defined in Rule12b-2 promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or (iii) issue more than $1 billion ofnon-convertible debt over a three-year period.

QUESTIONS AND ANSWERS ABOUT THE ANNUAL MEETING

Below are answers to common questions stockholders may have about the Proxy Materials and the Annual Meeting.

What are the Proxy Materials?

The “Proxy Materials” consist of the Notice, this proxy statement, our Annual Report on Form10-K for the fiscal year ended December 31, 20172018 and (if you request paper copies) a proxy card/voting instruction form.

What items will be voted on at the Annual Meeting and how does the Board of Directors recommend that I vote?

There are fivethree proposals to be voted on at the Annual Meeting, to:

 

 1.

elect fourthree Class IIII directors to the Board of Directors;

 

 2.

approve an amendment to our Charterthe Lantheus Holdings, Inc. 2015 Equity Incentive Plan to eliminateincrease the supermajority voting requirementnumber of shares of common stock reserved for amendments to certain provisions of the Charter;issuance thereunder by 825,000 shares; and

 

 3.approve an amendment to our Charter to permit the holders of at least a majority of our common stock to call special meetings of the stockholders;

4.approve an amendment to our Charter to delete various provisions related to our former sponsor that are no longer applicable; and

5.ratify the appointment of Deloitte & Touche LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2018.2019.

Our amended and restated bylaws require that we receive advance notice of any proposals to be brought before the Annual Meeting by our stockholders. We have not received any such proposals. We do not anticipate any other matters will come before the Annual Meeting. If any other matter properly comes before the Annual Meeting, the proxy holders appointed by the Board of Directors will have discretion to vote on those matters.

The Board of Directors recommends that you vote

“FOR” each of the nominees in Proposal 1 and

“FOR” Proposals 2 3, 4 and 5.3.

Who may vote at the meeting?

Holders of shares of our common stock (“Shares”) as of the close of business on February 26, 20182019 (the “Record Date”) may vote at the Annual Meeting.

How many Shares may be voted at the Annual Meeting?

Only stockholders of record as of the close of business on the Record Date will be entitled to vote at the Annual Meeting. As of the close of business on the Record Date, there were 37,928,33238,628,501 Shares entitled to vote at the Annual Meeting.

How many votes do I have?

Holders of our common stock are entitled to one vote for each Share held as of the Record Date.

What vote is required for each proposal?

 

For

Under Delaware law and our bylaws, if a quorum exists at the electionmeeting, the affirmative vote of Class III directors, each director must be elected by a plurality of the votes cast.cast at the meeting is required for the election of Class I directors. This means that the fourthree nominees receiving the largest number of “FOR” votes will be elected as Class IIII directors. We do not have cumulative voting. Also see “Proposal 1: Election of Directors – Majority Voting Policy to Take Effect at Next Meeting.”

The approval of thean amendment to our Charter eliminating the supermajority requirementLantheus Holdings, Inc. 2015 Equity Incentive Plan to increase the number of Shares reserved for issuance will be determined by the affirmative vote of at least 66 2/3% of the voting power of the Company’s then outstanding shares of stock entitled to vote generally in the election of directors.

The approval of the amendment to our Charter to permit holders of at least a majority of our Shares to call a special meeting of stockholders will be determined by the affirmative vote of at least a majority of the voting power of the Company’s then outstanding shares of stock entitled to vote generally in the election of directors.votes cast.

 

The approval of the amendment to our Charter to delete various provisions related to our former sponsor that are no longer applicable will be determined by the affirmative vote of at least a majority of the voting power of the Company’s then outstanding shares of stock entitled to vote generally in the election of directors.

The ratification of the Company’s independent registered public accounting firm will be determined by a majority of the votes cast.

How are abstentions and brokernon-votes counted?

Abstentions (that is, Shares present at the meeting in person or by proxy that are voted “ABSTAIN”) and brokernon-votes (explained below) are counted for the purpose of establishing the presence of a quorum, but are not counted as votes cast “FOR” or “AGAINST”. However, since the approval of Proposal 2 requires at least two thirds of the votes entitled to be cast, and Proposals 3 and 4 require at least a majority of the votes entitled to be cast, an abstention from voting or a brokernon-vote will have the same effect as a vote against those proposals.“AGAINST.”

What is the difference between a stockholder of record and a beneficial owner of Shares held in street name?

Stockholder of Record.If your Shares are registered directly in your name with our transfer agent, Computershare, then you are a “stockholder of record.”

Beneficial Owner of Shares Held in Street Name.If your Shares are held in an account at a brokerage firm, bank, broker-dealer or other similar organization, then you are a “beneficial owner of Shares” held in “street name.” In that case, the organization holding your account is considered the stockholder of record. As a beneficial owner, you have the right to direct the organization holding your account on how to vote the Shares you hold in your account.

How do stockholders of record vote?

There are four ways for stockholders of record to vote:

 

  

Via the Internet.You may vote via the Internet until 5:00 p.m. (Eastern Time) on April 25, 2018,23, 2019, which is the day before the Annual Meeting, by visiting www.proxydocs.com/lnth and entering the unique control number for your Shares located on the proxy card/voting instruction form.

 

  

By telephone.You may vote by phone until 5:00 p.m. (Eastern Time) on April 25, 2018,23, 2019, which is the day before the Annual Meeting, by calling866-240-5317. You will need the unique control number for your Shares located on the proxy card/voting instruction form.

  

By mail.You may vote by filling out, signing and dating the enclosed proxy card and returning it in the envelope provided. The completed proxy card must be received by the close of business on April 25, 2018,23, 2019, which is the day before the Annual Meeting.

 

  

In person.You may also vote your Shares in person by completing a ballot at the Annual Meeting.

How do beneficial owners of Shares held in street name vote?

If you hold your Shares through a brokerage firm, bank, broker-dealer or other similar organization, please follow the instructions of the organization that holds your Shares.

Can I change my vote after submitting a proxy?

Stockholders of record may revoke their proxy before the Annual Meeting by delivering to Lantheus Holdings, Inc., 331 Treble Cove Road, North Billerica, MA 01862, Attention: Corporate Secretary, a written notice stating that a proxy is revoked, by signing and delivering a proxy bearing a later date, by voting again via the Internet or by telephone or by attending and voting in person at the Annual Meeting.

Street name stockholders who wish to change their votes should contact the organization that holds their Shares.

If I hold Shares in street name through a broker, can the broker vote my shares for me?

If you hold your Shares in street name and you do not vote, the broker or other organization holding your Shares can vote on certain “routine” proposals but cannot vote on other proposals.

Proposal 1 (election of Class IIII directors), is not considered a “routine” proposal. If you hold Shares in street name and do not vote on Proposal 1, then your Shares will be counted as “brokernon-votes” for that proposal.

Proposal 2 (removal(amendment of supermajority requirement), Proposal 3 (permitting stockholders to call special meetings) and Proposal 4 (deleting inapplicable provisions) arethe Lantheus Holdings, Inc. 2015 Equity Incentive Plan) is not considered a “routine” proposals.proposal. If you hold Shares in street name and do not vote on Proposal 52, then your Shares will be counted as “broker non-votes” for that proposal.

Proposal 3 (ratification of the Company’s independent registered public accounting firm) is considered a “routine” proposal. If you hold Shares in street name and do not vote on Proposal 1, Proposal 2, Proposal 3, or Proposal 4, then your Shares willmay be counted as “brokernon-votes” for that proposal.voted by your broker or other organization holding your Shares.

Who is paying for this proxy solicitation?

The Company is paying the costs of the solicitation of proxies. Members of the Board, of Directors and officers and employees and, potentially, Alliance Advisors, a third party proxy solicitor, may solicit proxies by mail, telephone, fax, email or in person. We will not pay directors, officers or employees any extra amounts for soliciting proxies. If we decide to retain a third party proxy solicitor, we would not expect to pay it more than $10,000 for any proxy solicitation services it renders. We may, upon request, reimburse brokerage firms, banks or similar entities representing street name holders for their expenses in forwarding Proxy Materials to their customers who are street name holders and obtaining their voting instructions. If you choose to access the Proxy Materials or vote over the Internet, you are responsible for any Internet access charges that you may incur.

What do I need to do if I want to attend the meeting?

You will need to provide evidence that you are a stockholder as of the Record Date. This can be a copy of your proxy card or a brokerage statement showing your Shares.Shares as of the Record Date. You should also bring photo identification. If you hold your Shares in street name and wish to vote in person at the meeting, you will need to contact the organization that holds your Shares in order to obtain a legal proxy from that organization.

Where can I find voting results?

We will file a Current Report on Form8-K with the SEC to report the final voting results from the Annual Meeting within four business days of the Annual Meeting.

I share an address with another stockholder. Why did we receive only one set of Proxy Materials?

Some banks, brokers and nominees may be participating in the practice of “householding” Proxy Materials. This means that only one copy of the Proxy Materials may be sent to multiple stockholders in your household. If you hold your Shares in street name and want to receive separate copies of the Proxy Materials in the future, or if you are receiving multiple copies and would like to receive only one copy for your household, you should contact the bank, broker or other organization that holds your Shares.

Upon written or oral request, the Company will promptly deliver a separate copy of the Proxy Materials to any stockholder at a shared address to which a single copy of any of those documents was delivered. To receive a separate copy of the Proxy Materials, you can contact our Investor Relations department at978-671-8508978-671-8842 or ir@lantheus.com or by writing to Lantheus Holdings, Inc., 331 Treble Cove Road, North Billerica, MA 01862, Attention: Investor Relations.

What are the implications of being an “emerging growth company”?

We are an “emerging growth company,” as defined in the JOBS Act, and we are, therefore, permitted to, and we intend to rely on,upon, exemptions from certain disclosure requirements applicable to other public companies. For example, we are not required to provide our stockholders with the opportunity to vote on certain executive compensation matters on anon-binding advisory basis.

We will remain an emerging growth company until December 31, 2020 unless, prior to that time, we (i) have more than $1.07 billion in annual revenue, (ii) have a market value for our common stock held bynon-affiliates of more than $700 million as of the last day of our second fiscal quarter of the fiscal year when a determination is made that we are deemed to be a “large accelerated filer,” as defined in Rule12b-2 promulgated under the Exchange Act or (iii) issue more than $1 billion ofnon-convertible debt over a three-year period.

Who should I contact if I have additional questions?

You can contact our Investor Relations department at978-671-8508978-671-8842 or ir@lantheus.com or by writing to Lantheus Holdings, Inc., 331 Treble Cove Road, North Billerica, MA 01862, Attention: Investor Relations. Stockholders who hold their Shares in street name should contact the organization that holds their Shares for additional information on how to vote.

PROPOSAL 1: ELECTION OF DIRECTORS

The Board of Directors is currently comprised of ten directors. In accordance with our Charter,Amended and Restated Certificate of Incorporation (our “Charter”), our Board consists of three classes: Class I, Class II and Class III, with terms expiring in 2019, 2020 and 2018,2021, respectively. Messrs. Brian Markison, Gary Pruden and Kenneth PucelMs. Mary Anne Heino, Mr. Samuel Leno and Dr. James ThrallDerace Schaffer are the Class IIII directors whose terms expire at the Annual Meeting. Our Board has nominated, and stockholders are being asked to elect, Messrs. Markison, Pruden and PucelMs. Heino, Mr. Leno and Dr. ThrallSchaffer for three-year terms expiring at our 20212022 Annual Meeting of Stockholders. If elected, each of the nominees will hold office until our 20212022 Annual Meeting of Stockholders and a successor is duly elected and qualified or until her or his earlier death, resignation or removal.

The persons named as proxies will vote to elect each of these fourthree nominees, unless a stockholder indicates that his or her Shares should be withheld with respect to any one or more of these nominees.

In the event that any nominee for director becomes unavailable or declines to serve as a director at the time of the Annual Meeting, the persons named as proxies will vote the proxies in their discretion for any nominee who is designated by the current Board of Directors to fill the vacancy. We do not expect that any of the nominees will be unavailable or will decline to serve.

In determining that each director should be nominated for election, the Board of Directors considered her or his service, business experience, prior directorships, qualifications, attributes and skills described in the biography set forth below under “Corporate Governance—Executive Officers and Directors.Directors” and the criteria and diversity policy described under “Director Nomination Process and Diversity Policy.

Vote Required

ForUnder Delaware law and our bylaws, if a quorum exists at the electionmeeting, the affirmative vote of Class III directors, each director must be elected by a plurality of the votes cast.cast at the meeting is required for the election of Class I directors. This means that the fourthree nominees receiving the largest number of “FOR” votes will be elected as Class IIII directors. We do not have cumulative voting.

Majority Voting Policy To Take Effect at Next Annual Meeting

On October 18, 2018, upon the recommendation of our Nominating and Corporate Governance Committee, our Board adopted a majority voting policy, providing that in the case of an uncontested election of directors in which a director nominee does not receive votes affirmatively cast “FOR” his or her election orre-election in excess of 50% of the number of votes cast with respect to that nominee’s election orre-election, that director will contingently tender his or her resignation, which, in accordance with the majority voting policy, the Board may in its sole discretion elect to accept. The majority voting policy will take effect beginning with the election of our Class II directors at our annual stockholders meeting in 2020.

Board of Directors’ Recommendation

THE BOARD OF DIRECTORS RECOMMENDS THAT YOU VOTE “FOR” EACH OF THE DIRECTOR

NOMINEES IN THIS PROPOSAL 1.

CORPORATE GOVERNANCE

Executive Officers and Directors

The following table sets forth information regarding our current executive officers and directors, including their ages as of the date of this proxy statement.

 

Name

  

Age

   

Position

Brian Markison

   5859   Non-Executive Chairman of the Board of Directors

James C. Clemmer

   5354   Director

Samuel Leno

   7273   Director

Julie McHugh

   5354   Director

Gary J. Pruden

   5657   Director

Kenneth J. Pucel

   5152   Director

Dr. Frederick Robertson

   6263   Director

Dr. Derace Schaffer

   7071   Director

Dr. James H. Thrall

   7475   Director

Mary Anne Heino

   5859   President and Chief Executive Officer; Director

John W. CrowleyRobert J. Marshall, Jr.

   5452   Chief Financial Officer

Michael Duffy

57Senior Vice President, Strategy and Business Development, General Counsel and Secretary

Timothy Healey

52Senior Vice President, Commercial

Sarah Le RoyJohn Bolla

   49   Senior Vice President, Technical Operations

Michael Duffy

58Senior Vice President, Law and Public Policy, General Counsel and Secretary

Sarah Le Roy

50Senior Vice President, Human Resources

Etienne Montagut

44Senior Vice President, Corporate Development

Dr. Cesare Orlandi

   6768   Chief Medical Officer

Simon Robinson

   5859   Senior Vice President, Research and Pharmaceutical Development

Carol Walker

   5556   Senior Vice President, Quality

Brian Markison is theNon-Executive Chairman of the Board of Directors and Chair of the Financing and Strategy Committee. Mr. Markison joined the Board of Directors in September 2012 and was elevated to Chairman in January 2013. Mr. Markison has been a Healthcare Industry Executive for Avista Capital Partners since September 2012. Mr. Markison is a seasoned executive with more than 30 years of operational, marketing, commercial development and sales experience with international pharmaceutical companies. He is currently the Chief Executive Officer and a Director of Osmotica Holdings, SCSp,S.C.Sp., after serving as Executive Chairman of one of its predecessor companies, Vertical/Trigen Holdings, LLC. Previously, he held the position of President and Chief Executive Officer and member of the Board of Directors of Fougera Pharmaceuticals Inc., a specialty pharmaceutical company in dermatology, prior to its sale to Sandoz, the generics division of Novartis AG. Before leading Fougera, Mr. Markison was Chairman and Chief Executive Officer of King Pharmaceuticals, which he joined as Chief Operating Officer in March 2004, and was promoted to President and Chief Executive Officer later that year and elected Chairman in 2007. Prior to joining King, Mr. Markison held various senior leadership positions at Bristol-Meyers Squibb, including President of Oncology, Virology and Oncology Therapeutics Network; President of Neuroscience, Infectious Disease and Dermatology; and Senior Vice President, Operational Excellence and Productivity. Mr. Markison also serves on the Board of Directors of Immunomedics, Inc., on the Board of Directors of National Spine Centers LLC, on the Board of Directors of Braeburn Pharmaceuticals, and as Chairman ofon the Board of Directors for Rosetta Genomics, Ltd.of Cosette Pharmaceuticals. He is also a Director of the College of New Jersey. Mr. Markison holds a Bachelor of Science degree from Iona College. Mr. Markison was chosen as a Director because of his strong commercial and operational management background and extensive experience in the pharmaceutical industry.

James C. Clemmer is a Director and a member of the Audit Committee and the Compensation Committee, serving on the Board of Directors since July 2015. He is a seasoned industry executive with more than 25 years of

of operational, manufacturing, marketing and business development experience with global healthcare product companies. Mr. Clemmer is President and Chief Executive Officer of AngioDynamics Inc., a medical device manufacturer based in Latham, New York. He previously served as President of the Medical Supplies segment at Covidien plc, directing strategic andday-to-day operations for global business divisions that collectively manufactured 23 different product categories. In addition, Mr. Clemmer managed global manufacturing, research and development, operational excellence, business development and all other functions associated with the Medical Supplies business. Mr. Clemmer is a graduate of the Massachusetts College of Liberal Arts. Mr. Clemmer served as a trustee to the college and as Interim President. Mr. Clemmer was chosen as a Director because of his strong commercial and operational management background and extensive experience in the healthcare industry.

Samuel Leno is a Director and the Chairperson of the Audit Committee and member of the Financing and Strategy Committee, serving on the Board of Directors since May 2012. Mr. Leno is a strategic executive with more than 40 years of experience with complex multinational companies. He most recently held the positions of Executive Vice President and Chief Operations Officer at Boston Scientific. He previously served as Executive Vice President, Finance and Information Systems and Chief Financial Officer. He retired from Boston Scientific in December 2011. Prior to joining Boston Scientific, Mr. Leno served as Executive Vice President, Finance and Corporate Services and Chief Financial Officer at Zimmer Holdings, Inc. and Chief Financial Officer positions at Arrow Electronics, Inc., Corporate Express, Inc. and Coram Healthcare. Previously, he held a variety of senior financial positions at Baxter International, Inc. and American Hospital Supply Corporation. He iswas the Chairman of the Board of Directors and of the Audit Committee of Zest Anchors, Inc.Dental Solutions until it was acquired in 2018. He also previously served on the Boards of Directors and the Audit Committees of Omnicare and TomoTherapy, Inc. and also served on the Board of Directors of Endotronix, Inc. Mr. Leno served as a Lieutenant in the United States Navy and is a Vietnam veteran. He holds a Bachelor of Science in Accounting from Northern Illinois University and a Master of Business Administration from Roosevelt University. Mr. Leno was chosen as a Director because of his financial expertise and industry background.

Julie McHughis a Director and the Chairperson of the Compensation Committee, serving on the Board of Directors since January 2017. Ms. McHugh brings over 30 years of experience in the pharmaceutical, biotech and medical devices industries. She recently served as Chief Operating Officer of Endo Health Solutions, Inc., where she was responsible for the specialty pharmaceutical and generic drug businesses. Prior to that, Ms. McHugh was CEO of Nora Therapeutics, Inc., a venture capital backed biotech startup company focused on developing novel therapies for the treatment of infertility disorders. Previously, she served as Company Group Chairman for Johnson & Johnson’sthe worldwide virology business unit of Johnson & Johnson (“J&J”), and prior to that, she was President of Centocor, Inc., a J&J subsidiary. In this role, Ms. McHugh oversaw the development and launches of several products, including Remicade® (infliximab), Prezista® (darunavir) and Intelence® (etravirine). Prior to joining Centocor, Ms. McHugh led the marketing communications for gastrointestinal drug Prilosec® (omeprazole) at Astra-Merck Inc. Ms. McHugh currently serves on the Board of Directors and as a member of the Nominating and Governance Committee and Audit Committee of Aerie Pharmaceuticals, Inc., on the Board of Directors and as Chairperson of the Nominating and Governance Committee and Audit Committee of Ironwood Pharmaceuticals, Inc., and on the Boards of Directors of New Xellia Group A/S and Trevena Pharmaceuticals, Inc. Ms. McHugh also serves as a member of the Strategic Advisor Board for HealthCare Royalty Partners. She previously served on the Board of Directors of the Biotechnology Industry Organization, the New England Healthcare Institute, the Pennsylvania Biotechnology Association, EPIRUS Pharmaceuticals, Inc. and ViroPharma Inc. Ms. McHugh received a Master of Business Administration from St. Joseph’s University and a Bachelor of Science from Pennsylvania State University. Ms. McHugh was chosen as a Director because of her strong commercial and operational management background and extensive experience in the pharmaceutical industry.

Gary J. Prudenis a Director and a member of the Audit Committee and the Financing and Strategy Committee, serving on the Board of Directors since February 2018. Mr. Pruden has over 30 years of experience in the global healthcare industry. Most recently, Mr. Pruden held a number of senior commercial leadership positions across both the medical device and pharmaceutical sectors of Johnson & Johnson (“J&J”)&J from 1985

until 2017. In April 2016, Mr. Pruden was

appointed as a member of the Executive Committee of J&J, where his official title was Executive Vice President, Worldwide Chairman, Medical Devices. Prior to that, he held roles of increasing responsibility within J&J, serving as Worldwide Chairman in the Medical Devices division from 2015 to 2016, as Worldwide Chairman of Global Surgery Group from 2012 to 2015, as Company Group Chairman of Ethicon, Inc. from 2009 to 2012, as Worldwide President of Ethicon, Inc., a J&J subsidiary, from 2006 to 2009, and as President of the J&J subsidiary, Janssen-Ortho Inc. in Canada, from 2004 to 2006. Mr. Pruden has also served in several capacities, including Chairman of Technology & Regulatory Committee and Executive Committee Member, with the Advanced Medical Technology Association, a medical device trade association. Mr. Pruden currently serves on the Board of Directors and as a member of the Audit Committee and Compensation Committee of Motus GI Holdings, Inc. Mr. Pruden received his Bachelor of Science in Finance at Rider University, where he later served on the Board of Trustees from 2011 until 2015. Mr. Pruden was selected as a Director because of his strong financial, operational management, international and regulatory background and his extensive experience in the global pharmaceutical industry.

Kenneth J. Pucelis a Director and a member of the Compensation Committee, serving on the Board of Directors since February 2018. Mr. Pucel has been an Executive Vice President of Global Operations, Engineering & Lean, at Polaris Industries Inc. since December 1, 2014. There, Mr. Pucel is responsible for all aspects of Polaris manufacturing operations, including production, quality, supply chain, and logistics and inventory for Polaris’ 12 global factories.Polaris. He is also responsible for all aspects of Research and Development for PolarisOff-Road,On-Road andOn-Road Defense vehicles. Previously, Mr. Pucel was with Boston Scientific, Corporation (“BSC”), a global provider of medical solutions, where he held positions of increasing responsibility, most recently as Executive Vice President of Global Operations, Quality and Technology from 2012 through 2014, and as a member of BSC’sBoston Scientific’s Executive Committee from 2004 through 2014. Mr. Pucel holds a Bachelor of Science in Mechanical Engineering with a focus on Biomedical Engineering from the University of Minnesota. Mr. Pucel was selected as a Director because of his strong operational management background and extensive experience in manufacturing, supply chains and distribution.

Dr. Frederick Robertson is a Director and a member of the Audit Committee and the Chairperson of the Nominating and Corporate Governance Committee, serving on the Board of Directors since March 2016. Dr. Robertson has been a Venture Partner at Baird Capital since 2011 and has also served as an Assistant Professor ofretired from the Anesthesiology Faculty at the University of Wisconsin School of Medicine and Public Health since 2012.in 2018. Previously, Dr. Robertson held the role of Chief Executive Officer and Director of TomoTherapy Inc. before that company was acquired in 2011. Prior to joining TomoTherapy, Dr. Robertson served in a variety of roles in the medical field, including President and Chief Executive Officer of GE Marquette Medical Systems and later as Chief Clinical Officer of GE Medical Systems, as well as management positions with Marquette Medical Systems, including President and Chief Executive Officer. He serves on the Board of Directors of the University of Wisconsin Foundation, the Morgridge Institute for Research, Alpha Source, Inc. and Zurex Pharma, Inc. Dr. Robertson received his Master of Business Administration from San Diego State University and earned his M.D. from University of Wisconsin Medical School. Dr. Robertson was chosen as a Director because of his extensive experience as a physician and as an executive, board member and investor in companies across the healthcare industry.

Dr. Derace Schafferis a Director and a member of the Compensation Committee and the Nominating and Corporate Governance Committee, serving on the Board of Directors since March 2016. Dr. Schaffer is the founder and Chief Executive Officer of The Lan Group, a venture capital firm specializing in healthcare and high technology investments. He has also been a Clinical Professor of Radiology at both the University of Rochester Medical College as well as the Weill Cornell Medical College, and he currently serves as a Director of Altimmune, Inc. and as member of its Governance and Nominating Committee and Compensation Committee.College. Additionally, he serves as a member of the Board of Directors of private companies Medical Tracking Solutions, Inc., Partners Imaging, National Spine Centers LLC and Catalyst OrthoScience LLC. Previously, Dr. Schaffer served as Vice Chairman and Chief Executive Officer of Healthcare Acquisition Corp. from April 2005 to August 2007. He has served as Chairman of several healthcare companies, including Radiologix, Inc., of which he was the founder. Prior to that, he served as Chief Executive Officer and Chairman of Ide Imaging Group, P.C. from 1980 to 2001. Dr. Schaffer

held the role of director on many healthcare boards of directors, including several health systems, and has been a founder of

more than two dozen companies, both public and private, over the past 30 years. Dr. Schaffer received his postgraduate radiology training at Harvard Medical School and Massachusetts General Hospital, where he served as Chief Resident, and is a member of the Alpha Omega Alpha Honor Medical Society. Dr. Schaffer was chosen as a Director because of his extensive experience as a radiologist and physician and as a serial entrepreneur, founder, executive, board member and investor in companies across the healthcare industry.

Dr. James H. Thrallis a Director and a member of the Nominating and Corporate Governance Committee, serving on the Board of Directors since February 2018. Dr. Thrall currently holds the Distinguished Juan M. Taveras Professorship of Radiology at Harvard Medical School, having also served as Chairman of the Department of Radiology at the Massachusetts General Hospital from 1988 until 2013. Previously, Dr. Thrall served as Chairman of Radiology at the Henry Ford Hospital between 1983 and 1988, where he also served as a Physician Trustee and held the position of Vice Chairman of the Board of Governors of the Henry Ford Medical Staff. Dr. Thrall is a member of the National Academy of Medicine and has served in leadership and board of directors positions at many U.S. and international medical and professional societies. Dr. Thrall received his M.D. from the University of Michigan in 1968 and trained in Radiology and Nuclear Medicine at the Walter Reed Army Medical Center, Washington, D.C. Dr. Thrall returned to the University of Michigan in 1975 and was promoted to Professor in 1981. Dr. Thrall was chosen as a Director because of his extensive experience in nuclear medicine and radiology, including in connection with imaging modalities and the development and use of innovative new technologies, including artificial intelligence.

Mary Anne Heino has served as our President and Chief Executive Officer and as a Director since August 2015. She previously served as our Chief Operating Officer, a position she held from March 2015 until August 2015, and as our Chief Commercial Officer, a position she held from April 2013 (when she joined the Company) until March 2015. Ms. Heino brings more than 2530 years of diverse pharmaceutical industry experience to the Board. Prior to joining Lantheus, Ms. Heino led Angelini Labopharm LLC and Labopharm USA in the roles of President and Senior Vice President of World Wide Sales and Marketing from February 2007 to March 2012. From May 2000 until February 2007, Ms. Heino served in numerous capacities at Centocor, Inc., a J&J company, including as Vice President, Strategic Planning and Competitive Intelligence, Vice President, Sales, Executive Director, Customer Relationship Management and Senior Director, Immunology Marketing. Ms. Heino began her professional career with Janssen Pharmaceutica as a Sales Representative in June 1989 and worked her way up to the role of Field Sales Director in 1999. Ms. Heino received her Master in Business Administration from the Stern School of Business at New York University. She earned a Bachelor of Science in Nursing from the City University of New York and a Bachelor of Science in Biology from the State University of New York at Stony Brook. Ms. Heino was chosen as a Director because of her role as President and Chief Executive Officer, which gives her an extensive understanding of our business and operations, and because of her strong commercial experience in the pharmaceutical industry.

John (Jack) W. CrowleyRobert J. Marshall, Jr. has servedjoined Lantheus as our Chief Financial Officer and Treasurer since March 2016.in September 2018. Mr. Crowley previously served as our interim Chief Financial Officer from December 2015Marshall brings to March 2016the Company more than 30 years of finance experience, including in mergers and as our Vice Presidentacquisitions, capital markets and Chief Accounting Officer from March 2015 to December 2015. Mr. Crowley held the position of Vice President, Finance from April 2013 until March 2015 and was Director, Accounting from September 2010 until April 2013.investor relations. Prior to joining Lantheus, Mr. CrowleyMarshall spent 16 years with Zimmer Biomet Holdings, Inc., a global medical device company with a leading position in musculoskeletal health. He held various senior leadership roles, including Vice President, Investor Relations and Corporate Treasurer, and most recently as Vice President, Americas Finance, for the U.S., Canadian and Latin American commercial markets. Prior to Zimmer Biomet, Mr. Marshall was the Assistant Corporate Controlleremployed with Brown & Williamson Tobacco, a subsidiary of Biogen Idec, the DirectorBritish American Tobacco, p.l.c., in Louisville, Kentucky, where he held several positions of Accounting at Thermo Fischer Scientific and a Senior Manager in the Audit practice of PricewaterhouseCoopers LLP.increasing responsibility. Mr. CrowleyMarshall holds a Master of Business Administration degreefrom Indiana University, South Bend, and a Bachelor of Business Administration in Finance from the University of MassachusettsNotre Dame. He also holds the CFA designation.

John Bollajoined Lantheus as Senior Vice President of Technical Operations in May 2018. In this role, he is responsible for leading the company’s supply chain, manufacturing, operations, engineering and facilities functions. He brings to the role more than 22 years of diverse supply chain, operations and manufacturing

experience in the pharmaceutical industry. Prior to joining Lantheus, Mr. Bolla spent 20 years at GlaxoSmithKline plc (“GSK”), a global branded pharmaceutical company. He held various senior leadership roles, including Vice President, Supply Chain, North America, where he was responsible for leading all manufacturing, supply planning, logistics and distribution for GSK’s largest global market. He also held senior roles as Vice President and Site General Manager for a large GSK manufacturing facility in the U.S., as well as Vice President and Global Head of External Supply and Global Contract Manufacturing. He has also served in multiple senior Procurement leadership roles at GSK. Mr. Bolla holds a Bachelor of Science in Business AdministrationAdministration/Accounting from Westfield StateThe University and is a Certified Public Accountant (Massachusetts licensure, current status inactive).of Central Florida.

Michael Duffy has served as our Senior Vice President, Law and Public Policy since 2018, as our Senior Vice President, Strategy and Business Development sincefrom October 2015 to 2018 and as our General Counsel and Secretary since January 2008. From 2002 to 2008, he served as Senior Vice President, General Counsel and Secretary of Point Therapeutics, Inc., a Boston-based biopharmaceutical company. Between 1999 and 2001, Mr. Duffy served as Senior Vice President, General Counsel and Secretary of

Digital Broadband Communications, Inc., a competitive local exchange carrier. From 1996 to 1999, Mr. Duffy served as Senior Vice President, General Counsel and Secretary of ETC w/tci, asub-portfolio of TCI Ventures, Inc./Liberty Media Corporation. Mr. Duffy began his legal career with the law firm Ropes & Gray and holds law degrees from the University of Pennsylvania and Oxford University and a Bachelor of Arts degree in History of Science from Harvard College. From 2013 to 2015, Mr. Duffy also served as the Chairman of the Board of Directors of CORAR, the Council on Radionuclides and Radiopharmaceuticals, a trade association for the radiopharmaceutical industry.

Timothy HealeySarah Le Royhas served as our Senior Vice President, CommercialHuman Resources since November 2015. Previously, Mr. Healey spent nearly three years with Abbott Laboratories and then AbbVie, Inc., a spinoff of Abbott, as Vice President, U.S. Virology. Before joining Abbott/AbbVie, he served as Senior Vice President, Commercial Operations at AMAG Pharmaceuticals and Executive Director, CNS Marketing at Sepracor. Earlier in his career, Mr. Healey held positions at Aventis, Hoechst Marion Roussel, Marion Merrell Dow and Marion Laboratories, including sales and sales management roles. He received a Bachelor of Science from Boston College and a Master of Business Administration from Babson College, Franklin W. Olin Graduate School of Business.

Sarah Le RoyhasApril 2018, having previously served as our Vice President, Human Resources since joining the Company in January 2018 and will serve as our Senior Vice President, Human Resources effective April 2018. From 2014 to 2017, she served as Executive Vice President, Organizational Strategy, of Fike Corporation, a multinational manufacturer of industrial life safety solutions based in Blue Springs, Missouri. From 2011 to 2014, she served as Vice President, Head of Talent Management andCo-head of the High Performance Team Practice for Linkage Inc., a Boston based leadership development consultancy. Ms. Le Roy brings to the company more than 20 years of experience serving as a results-focused Human Resources leader for global companies across a variety of industries, including Goldman Sachs and Russell Reynolds Associates. Ms. Le Roy holds a Master of Business Administration from the Massachusetts Institute of Technology’s Sloan School of Management and a Bachelor of Arts from Williams College.

Etienne Montagutjoined Lantheus as Senior Vice President, Corporate Development in September 2018. Mr. Montagut brings to the Company more than 20 years of commercial, portfolio management and business development and licensing experience. Prior to joining Lantheus, Mr. Montagut spent the last six years with GE Healthcare, part of the General Electric family of companies, and a leading provider of medical imaging, monitoring, biomanufacturing, and cell and gene therapy technologies. He held various senior leadership roles at GE Healthcare, including General Manager, Global SPECT Portfolio & Director of Cardiology, Executive, Global Product Leader SPECT Neurology & Cardiology, and most recently as Executive, General Manager Molecular Imaging Greater China. Prior to GE Healthcare, from 2000 to 2012, Mr. Montagut worked at Ipsen, a global specialty-driven biopharmaceutical group focused on innovation and specialty care. While at Ipsen, Mr. Montagut held both commercial and corporate positions, including Corporate Commercial Development, Business Development & Licensing and Portfolio Management. Mr. Montagut holds a Master of Business Administration from Imperial College, London, and a Master of Business Intelligence from EGE in Paris.

Dr. Cesare Orlandi has served as our Chief Medical Officer since March 2013. Dr. Orlandi brings more than 2030 years of diverse pharmaceutical industry experience. Prior to joining Lantheus, Dr. Orlandi served from January 2012 until February 2013 as Senior Vice President and Chief Medical Officer of TransTech Pharma, Inc., a clinical stage pharmaceutical company focused on discovery and development of human therapeutics. From 2007 until 2011, Dr. Orlandi served as Senior Vice President and Chief Medical Officer of Cardiokine, Inc., a specialty pharmaceutical company developing hospital products for cardiovascular indications. From 1998

until 2007, Dr. Orlandi served, among other positions, as Vice President, Global Clinical Development of Otsuka Pharmaceuticals, a large Japanese pharmaceutical company. Earlier in his career, Dr. Orlandi served in increasing roles of clinical research responsibility at Medco Research, Inc. and the Radiopharmaceutical Division of The DuPont Merck Pharmaceutical Company, a predecessor organization to Lantheus, and The Upjohn Company. Dr. Orlandi received his medical degree from the University of Pavia Medical School in Pavia, Italy. He is currently an Adjunct Assistant Professor of Medicine at Tufts University School of Medicine in Boston, Massachusetts, and he is a founding member of the American Society of Nuclear Cardiology and a Fellow of the American College of Cardiology, the European Society of Cardiology and the American Society of Nuclear Cardiology. Dr. Orlandi is also servingserves as a member of the Board of Directors of the American Heart Association of Greater Boston.

Dr. Simon Robinson has served as our Senior Vice President, Research and Pharmaceutical Development since April 2018, having previously served as our Vice President, Research and Pharmaceutical Development since February 2010, and will serve as our Senior Vice President, Research and Pharmaceutical Development effective April 2018.2010. Dr. Robinson was our Senior Director, Discovery Research from 2008 to 2010 and our Director, Discovery Biology and Veterinary Sciences from 2001 to 2008. Prior to joining us, he held research positions at Bristol-Myers Squibb, Sphinx Pharmaceuticals, BASF and DuPont Pharmaceuticals. Dr. Robinson has more than 8090 publications and is listed as an inventor on 19more than 20 U.S. patents. He holds a Ph.D. and Bachelor of Science in Pharmacology from the University of Leeds, England and performed his post-doctoral training at the University of Wisconsin Clinical Cancer Center.

Carol Walker has served as our Senior Vice President, Quality since April 2018, having previously served as our as our Vice President, Quality since February 2015, and will serve as our Senior Vice President, Quality effective April 2018. Ms. Walker has overseen our Environment, Health and Safety department since December 2017.2015. Ms. Walker brings more than 30 years of industry experience in quality and medical technology primarily in the medical device area. Prior to joining Lantheus, Ms. Walker served as Vice President of Quality for Intelligent Medical Devices, Inc. from 2012 to 2015. Previously she held a number of successive Quality management roles at Siemens Healthcare Diagnostics (formerly Bayer Healthcare Diagnostics), including Vice President, Quality Assurance from 2007 to 2011 and Director, Quality Assurance from 2001 to 2007. Ms. Walker received a Bachelor of Science degree in Medical Technology from the Rochester Institute of Technology.

Board of Directors and Committees

The Board of Directors is responsible for overseeing the management of our business and is currently comprised of ten directors, each of whom is elected to serve in his or her position until his or her next election and until his or her successors are duly elected and qualified.

Our Charter divides the Board of Directors into three classes, with one class being elected at each Annual Meeting of Stockholders. Each director serves a three-year term, with terms staggered according to class.

The current members of the Board of Directors and the committees of the Board, of Directors, each director’s class and the term of appointment are shown in the table below:

 

Name

 Board of
Directors
 Class Expiration of
Term at Annual
Meeting of
Stockholders
  Audit
Committee
 Compensation
Committee
 Nominating and
Corporate
Governance
Committee
 Financing and
Strategy
Committee

Brian Markison

 Chair III  20182021     Chair

James Clemmer

 Member II  2020  Member Member  

Mary Anne Heino

 Member I  2019     

Samuel Leno

 Member I  2019  Chair   Member

Julie McHugh

 Member II  2020   Chair  

Gary Pruden

 Member III  20182021  Member   Member

Kenneth Pucel

 Member III  20182021   Member  

Dr. Frederick Robertson

 Member II  2020  Member  Chair 

Dr. Derace Schaffer

 Member I  2019   Member Member 

Dr. James Thrall

 Member III  20182021    Member 

Board of Directors and Committee Meetings; Annual Meeting Attendance

In 2017,2018, the Board of Directors held nineseven meetings and acted by written consent in lieu of a meeting six times,one time, the Audit Committee held foursix meetings, the Compensation Committee held fivesix meetings and the Nominating and Corporate Governance Committee held foursix meetings. During 2017,2018, each director attended at least 75% of the total number of meetings held by the Board of Directors and those of its committees on which that director served. Thenon-employee directors of the Company regularly meet in executive session without management following adjournment of the meetings of the Board of Directors.Board. Under the Corporate Governance Guidelines and Principles adopted by the Board, of Directors, the independent ChairmanChairperson of the Board of Directors presides at those executive sessions, and those executive sessions must occur no less frequently than twice per year.

We have no formal policy with respect to director attendance at our Annual Meetings of Stockholders;Stockholders, however, we encourage all directors to attend. All but one of our then-serving directors attended the 20172018 Annual Meeting of Stockholders.

Director Independence and Former Controlled Company Status

After completion of a primary offering of Shares in September 2016, Avista Capital Partners (“Avista”) no longer beneficially held more than 50% of our outstanding Shares entitled to vote in elections of directors. As a result, we are no longer a “controlled company” within the meaning of Nasdaq corporate governance standards. On August 14, 2017, Avista disposed of approximately 6.3 million Shares, representing the remainder of their holdings. On September 7, 2017, David Burgstahler resigned from the Board of Directors and as a member of the Nominating and Corporate Governance Committee. As a result, the Nominating and Corporate Governance Committee has been and is currently composed entirely of independent directors.

The majority of the Board of Directors is comprised of independent directors. In addition, the Audit Committee, Compensation Committee and Nominating and Corporate Governance Committee are each comprised entirely of directors meeting the requirements of the Sarbanes-Oxley Act and the Nasdaq audit, compensation and nominating and corporate governance committee independence requirements, as applicable.

The Board of Directors has reviewed its composition, the composition of its committees and the independence of each director and considered whether any director has a material relationship with the Company that could compromise his or her ability to exercise independent judgment in carrying out his or her responsibilities. The Board of Directors has affirmatively determined that each of Messrs. Clemmer, Leno, Markison, Pruden and Pucel, Ms. McHugh and Drs. Robertson, Schaffer and Thrall is an “independent director” under the Nasdaq rules and Exchange Act Rule10A-3(b)(1) and that none of those directors has relationships with the Company that would interfere with that director’s exercise of independent judgment in carrying out his or her responsibilities as a director of the Company.

Board of Directors Leadership Structure and Over-Boarding Policy

Under our Corporate Governance Guidelines and Principles, the Board of Directors currently requires the separation of the offices of the Chairperson of the Board of Directors and the Company’s Chief Executive Officer. The Board of Directors periodically reviews its leadership structure and may make changes in the future.

Also under our Corporate Governance Guidelines and Principles, the Board of Directors currently prohibits a director from serving on more than five total public company boards (including our Board) and, if the director is the chief executive officer of a public company, then he or she may serve on no more than two other public company boards (other than his or her own).

Our written Corporate Governance Guidelines and Principles adopted by the Board of Directors are available in the Corporate Governance section of our Investor Relations website at http://investor.lantheus.com. The information on our website is not part of, and is not incorporated into, this proxy statement.

Board of Directors Role in Risk Oversight

The Company’s management is primarily responsible for theday-to-day management of the Company. However, the Board of Directors believes that oversight of risk management is one of its fundamental responsibilities. The Audit Committee is primarily responsible for oversight of the quality and integrity of the Company’s financial reporting process, internal controls over financial reporting and compliance programs. The Compensation Committee is responsible for reviewing compensation-related risks. The Nominating and Corporate Governance Committee is responsible for oversight of the Company’s corporate governance programs. The Financing and Strategy Committee is responsible for oversight of the Company’s capital structure and transactional-related risks. Management regularly reports to the Board of Directors and its committees on the risks that the Company may face and the steps that management is taking to mitigate those risks.

The Audit Committee is also responsible for reviewing and discussing with our management our policies and processes with respect to risk assessment and risk management. With respect to cybersecurity risks, the Company has made and continues to invest in new services and technologies and provides employee awareness training around phishing, malware and other cybersecurity risks, all in a manner reasonably intended to protect the Company to the greatest extent possible, against cybersecurity risks and security breaches.

Board of Directors Committees

The Board of Directors has the authority to appoint committees to perform certain management and administrative functions. Currently, the Board of Directors has four committees: the Audit Committee, the Compensation Committee, the Nominating and Corporate Governance Committee and the Financing and Strategy Committee. The Financing and Strategy Committee was established byBoard has adopted written charter for each committee, copies of which are available on the BoardCorporate Governance section of Directors in February 2018.our Investor Relations website at http://investor.lantheus.com.

Audit Committee

The primary purpose of the Audit Committee is to assist the Board of Directors in overseeing:

 

the integrity of our financial statements;

 

our systems of internal control over financial reporting and disclosure controls and procedures;

 

our independent auditors’ qualifications, engagement, compensation and independence;

 

the performance of our independent auditors and our internal audit function;

 

our legal and regulatory compliance; and

 

our related person transaction policy; andpolicy.

our codes of business conduct and ethics.

The Audit Committee is currently composed of Messrs. Clemmer, Leno and Pruden and Dr. Robertson, and Mr. Leno serves as the Chairperson. The Board of Directors has affirmatively determined that each of the current members of the Audit Committee meets the definition of “independent director” for the purposes of serving on the Audit Committee under the SEC and Nasdaq rules and has “financial sophistication” as defined under the Nasdaq rules. In addition, the Board of Directors has determined that Mr. Leno meets the definition of “Audit Committee Financial Expert,” as that term is defined by the SEC in Item 407(d)(5) of RegulationS-K.

The Board of Directors has adopted a written charter for the Audit Committee, which is available on the Corporate Governance section of our Investor Relations website at http://investor.lantheus.com.

Compensation Committee

The primary purpose of the Compensation Committee is to assist the Board of Directors in overseeing:

 

our management compensation policies and practices;

 

the determination and approval of the compensation of our executive officers and other members of senior management;

 

the review, approval and administration of our incentive compensation policies and programs; and

 

the review, approval and administration of our equity compensation programs; and

programs.

the preparation of the compensation committee report required by the SEC rules to be included in our annual report.

The Compensation Committee is currently composed of Ms. McHugh, Messrs. Clemmer and Pucel and Dr. Schaffer, and Ms. McHugh serves as the Chairperson. The Board of Directors has affirmatively determined that each of the current members of the Compensation Committee meets the definition of “independent director” for purposes of serving on the Compensation Committee under SEC and Nasdaq rules.

The Board of Directors has adopted a written charter for the Compensation Committee, which is available on the Corporate Governance section of our Investor Relations website at http://investor.lantheus.com.

Nominating and Corporate Governance Committee

The primary purpose of the Nominating and Corporate Governance Committee is to:

 

oversee our corporate governance guidelines and principles;

review the overall corporate governance of the Company and recommend to the Board improvements when necessary;

identify and recommend to the Board of Directors individuals qualified to serve as directors of the Company and on committees of the Board of Directors;Board; and

 

assist the Board of Directors in overseeing our policies and procedures for the receipt of stockholder suggestions regarding Board of Directors compensation and recommendations of the Board of Directors;

Board.

develop, recommend to the Board of Directors and oversee the implementation of a set of corporate governance guidelines and principles applicable to us; and

review the overall corporate governance of the Company and recommend improvements when necessary.

The Nominating and Corporate Governance Committee is currently comprised of Drs. Robertson, Schaffer and Thrall, and Dr. Robertson serves as the Chairperson. The Board of Directors has affirmatively determined that that each of the current members of the Nominating and Corporate Governance Committee meets the definition of “independent director” for purposes of serving on the Nominating and Corporate Governance Committee under SEC and Nasdaq rules.

The Board of Directors has adopted a written charter for the Nominating and Corporate Governance Committee, which is available on the Corporate Governance section of our Investor Relations website at http://investor.lantheus.com.

Financing and Strategy Committee

The primary purpose of the Financing and Strategy Committee is to:

 

oversee and make recommendations to the Board about the strategic plan of the Company;

review and make recommendations to the Board about strategic transactions;

oversee the financing activities of the Company; and

 

review and make recommendations to the Board about the financing plans, strategies and instruments of the Company;Company.

oversee and make recommendations to the Board about the strategic plan of the Company;

review and make recommendations to the Board about strategic transactions; and

approve strategic transactions on behalf of the Board pursuant to delegated authority when appropriate under its committee charter.

The Financing and Strategy Committee is currently composed of Messrs. Leno, Markison and Pruden, and Mr. Markison serves as the Chairperson.

The Board of Directors has adopted a written charter for the Financing and Strategy Committee, which is available on the Corporate Governance section of our Investor Relations website at http://investor.lantheus.com.

Code of Ethics

We have codes of business conduct and ethics that are applicable to all of our employees, including our principal executive, financial and accounting officers and our controller, or persons performing similar functions, and all of thenon-employee directors on the Board of Directors.Board. Our Company Code of Conduct and Ethics and Supplemental Code of Ethics is available on the Corporate Governance section of our Investor Relations website at http://investor.lantheus.com. We intend to provide any required disclosure of any amendment to or waiver from any such code that applies to our principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions to the extent required by law, on the Corporate Governance section of our Investor Relations website.

Compensation Committee Interlocks and Insider Participation

None of our executive officers currently serves, or has served during the last completed fiscal year, on the compensation committee or board of directors of any other entity that has one or more executive officers serving on our Board of Directors or Compensation Committee.

Board of Directors and Committee Evaluations

Each year, our Board of Directors and each committee conduct self-evaluations to evaluate their performance and effectiveness. The Nominating and Corporate Governance Committee recommends to the Board of Directors the methodology for those evaluations and oversees their execution. In 2017, the Nominating and Corporate Governance Committee approved a detailed questionnaire that was given to eachadministration. Each member of the Board of Directorscompletes a questionnaire to assess that member’s own performance and the performance of the Board of Directors and any applicable committee on which that member served.serves. The questionnaire soughtseeks answers to questions based both on numerical ratings and qualitative comments. The collective comments and ratings wereare compiled for and reviewed by the Chairperson of the Nominating and Corporate Governance Committee. The results wereare discussed with the Board and, with respect to results for each committee, with the applicable committee.Board.

Director Nomination Process and Diversity Policy

Each year, the Nominating and Corporate Governance Committee recommends, and the Board of Directors proposes, a slate of director nominees to stockholders for election at the Annual Meeting of Stockholders. Stockholders may also nominate directors, as described below.

The Board recognizes the value of appointing individual directors who bring a variety of diverse viewpoints, backgrounds, skills, experienceexperiences and expertise to the Board. The Board believes that having a diverse board of directors fosters more productive and beneficial discussions and decision-making processes in support of the Company’s strategic objectives. On February 22,In 2018, as part of its review of best corporate governance practices, the Board of Directors adopted a formal diversity policy. A copy of our diversity policy is available on the Corporate Governance section of our Investor Relations website at http://investor.lantheus.com. Pursuant to our diversity policy, the Nominating and Corporate Governance Committee is responsible for identifying, screening and recommending to the full Board of Directors for approval, potential director candidates. In selecting director candidates, the Nominating and Corporate Governance Committee considers a range of matters of diversity, including race, gender, ethnicity, culture, thought, geography, education and competencies, ensuring thatwith the goal of having a Board, which as a whole, reflects a range of viewpoints, backgrounds, skills, experience and expertise. The Nominating and Corporate Governance Committee also considers the results of the Board and committee self evaluations described above, in making its nomination recommendations.

The Nominating and Corporate Governance Committee values the input of stockholders in identifying director candidates. The Nominating and Corporate Governance Committee considers recommendations for

Board of Directors candidates submitted by stockholders using substantially the same criteria it applies to recommendations from the Nominating and Corporate Governance Committee, directors and members of management. The stockholder making the recommendation must follow the procedures and provide the information set forth in our amended and restated bylaws.

Stockholders may submit recommendations by providing the person’s name and appropriate background and biographical information by writing to the attention of the Nominating and Corporate Governance Committee at Lantheus Holdings, Inc., 331 Treble Cove Road, North Billerica, MA 01862, Attention: Corporate Secretary. Stockholder nominations may be made at any time. However, in order for a candidate to be included in the slate of director nominees for approval by stockholders in connection with a meeting of stockholders and for information about the candidate to be included in the Company’s proxy materials for such a meeting, the stockholder must submit the information required by our amended and restated bylaws and other information reasonably requested by the Company within the timeframe described in our amended and restated bylaws under “Additional Information—Procedures for Submitting Stockholder Proposals.”

Communication with the Board of Directors

Any stockholder or other interested parties that would like to communicate with the Board or any of Directors,its committees, the independent directors as a group or any specific member or members of the Board of Directors should send suchthose communications to Lantheus Holdings, Inc., 331 Treble Cove Rd., North Billerica, MA 01862, Attention: Corporate Secretary. Communications should specifically indicate for which member or members of the Board or any of Directorsits committees the communication is intended. SuchThose communications will generally be forwarded to the intended recipients. However, our Corporate Secretary may, in his sole discretion, decline to forward any communications that are inappropriate.

EXECUTIVE COMPENSATION

As an “emerging growth company,” as defined in the JOBS Act, we have elected to comply with the executive compensation disclosure rules applicable to “smaller reporting companies,” as defined in the Exchange Act. This section provides information on the compensation awarded to, earned by or paid to our principalchief executive officer, our chief financial officer, and our two other most highly-compensated executive officers, and our former chief financial officer, in each case, for the year ended December 31, 2017.2018. We refer to these individuals as our named executive officers. For 2017,2018, our named executive officers were:

 

Mary Anne Heino, President and Chief Executive Officer;

 

John W. Crowley,

Robert J. Marshall, Jr., Chief Financial Officer;

 

Michael Duffy, Senior Vice President, StrategyLaw and Business Development,Public Policy, General Counsel and Secretary; and

 

Timothy Healey, Senior Vice President, Commercial.

Cesare Orlandi, Chief Medical Officer; and

John W. Crowley, former Chief Financial Officer;

Summary Compensation Table for Fiscal Years 2018 and 2017

The following table sets forth certain information with respect to compensation of our named executive officers for the years ended December 31, 20172018 and, 2016:if applicable, 2017:

 

Name and

Principal Position

  Year   Salary
($)
   Bonus
($)
   Stock
Awards(1)

($)
   Non-Equity
Incentive Plan
Compensation(2)

($)
   All Other
Compensation(3)

($)
   Total
($)
 

Name

Principal Position

  Year  Salary
($)
  Stock
Awards(2)
($)
  Non-Equity
Incentive Plan
Compensation(3)
($)
  All Other
Compensation(4)
($)
  Total
($)

Mary Anne Heino

   2017    629,230    —      1,891,274    1,173,360    13,461    3,707,325    2018   665,577   2,318,481   917,500   12,375   3,913,933

President and Chief

Executive Officer

   2016    600,000    —      519,400    849,970    13,235    1,982,605     2017    629,230    1,891,274    1,173,360    12,150    3,706,014

John W. Crowley

   2017    366,577    —      428,194    338,873    13,461    1,147,105 

Robert J. Marshall, Jr. (1)

   2018   101,250   599,988   256,163   17,333   974,734

Chief Financial Officer

   

 

2016

 

 

 

   

 

340,308

 

 

 

   

 

50,000

 

 

 

   

 

206,020

 

 

 

   

 

234,526

 

 

 

   

 

13,235

 

 

 

   

 

844,089

 

 

 

                  

Michael Duffy

   2017    391,397    —      472,078    333,921    13,461    1,210,857    

 

 

 

2018

 

   

 

 

 

403,632

 

   

 

 

 

481,367

 

   

 

 

 

300,883

 

   

 

 

 

12,375

 

   

 

 

 

1,198,257

 

Senior Vice President,

Strategy and Business

Development, General

Counsel and Secretary

   2016    380,039    —      121,520    260,965    13,235    775,759 

Senior Vice President,

Law & Public Policy,

General Counsel and Secretary

    2017    391,397    472,078    333,921    12,150    1,209,546

Timothy Healey

   2017    388,331    —      471,022    321,484    13,461    1,194,298 

Senior Vice President, Commercial

              

Cesare Orlandi

   2018   414,484   494,131   212,593   12,375   1,133,583

Chief Medical Officer

    

 

2017

 

 

    

 

402,802

 

 

    

 

356,635

 

 

    

 

281,038

 

 

    

 

12,150

 

 

    

 

1,052,625

 

 

John W. Crowley

   

 

 

 

2018

 

   

 

 

 

315,490

 

   

 

 

 

871,576

 

    —     

 

 

 

668,925

 

   

 

 

 

1,855,991

 

Former Chief Financial Officer

    

 

2017

 

 

    

 

366,577

 

 

    

 

428,194

 

 

    

 

338,873

 

 

    

 

12,150

 

 

    

 

1,145,794

 

 

 

(1)

Mr. Marshall commenced employment with us on September 24, 2018. The amounts included in this table include the amounts awarded to, earned by and paid to Mr. Marshall for the portion of 2018 during which he was employed by us.

(2)

The dollar amounts in the stock awards column reflect the aggregate grant date fair value, calculated in accordance with FASB ASC Topic 718, of restricted common stock awards (“RSAs”) subject to time-based vesting and RSAs subject to performance-based RSAsvesting (“PSAs”) assuming target achievement of applicable performance targets over the performance period,, excluding the effect of estimated forfeitures.forfeitures and, for PSAs, based on the probable achievement of applicable performance conditions. The aggregate grant date fair value of RSAsPSAs granted in 2018, if applicable performance conditions were achieved at maximum levels, would be $1,900,013 for Ms. Heino, $394,494 for Mr. Duffy, $404,954 for Dr. Orlandi and PSAs is measured based on the closing$461,265 for Mr. Crowley. The aggregate grant date fair market value of PSAs granted in 2017, if applicable performance conditions were achieved at maximum levels, would be $1,315,516 for Ms. Heino, $328,336 for Mr. Duffy, $212,861 for Dr. Orlandi and $297,804 for Mr. Crowley. The assumptions used to value these awards are described in Note 13 to our common stockfinancial statements included in our Annual Reports onForm 10-K for the date of grant, multiplied by the number of Shares subject to the award granted, for each RSAfiscal years ended December 31, 2018 and PSA grant made during the year. December 31, 2017.

This grant date fair value for stock awards granted in 2018 is higher than for 2017 due, in part, to a change in assumptions used to value those awards and does not necessarily correspond to the actual value that will ultimately be realized by each named executive officer, which will likely vary based on a number of factors, including our financial performance, stock price fluctuations and applicable vesting.

    

For 2018, the amount in the stock awards column for Mr. Crowley also includes the incremental fair value, calculated in accordance with FASB ASC Topic 718, of RSAs that became vested in connection with his separation from the Company. See “Separation Agreement with Mr. Crowley” below for more information.

For 2018, these stock awards consist of: (i) 60,126 RSAs to Ms. Heino, 44,642 RSAs to Mr. Marshall, 12,483 RSAs to Mr. Duffy, 12,814 RSAs to Dr. Orlandi and 14,596 RSAs to Mr. Crowley (for Ms. Heino, Mr. Duffy and Dr. Orlandi, each of these grants vest in three equal installments on each of the first three anniversaries of the grant date of March 5, 2018 and for Mr. Marshall, his grant vests in four equal installments on each of the first four anniversaries of the grant date, in all cases, subject to the named executive officer’s continued employment); and (ii) 60,127 PSAs to Ms. Heino, 12,484 PSAs to Mr. Duffy, 12,815 PSAs to Dr. Orlandi and 14,597 PSAs to Mr. Crowley (each of these grants cliff vest on March 5, 2021, subject to the achievement of specific financial performance targets and generally subject to the named executive officer’s continued employment). The awards granted to Mr. Crowley in 2018 were forfeited upon his separation from the Company.

For 2017, these amounts reflect grantsstock awards consist of: (i) 65,975 RSAs to Ms. Heino, 14,937 RSAs to Mr. Crowley, 16,468 RSAs to Mr. Duffy, 9,336 RSAs to Dr. Orlandi, and 16,43114,937 RSAs to Mr. HealeyCrowley (each of these grants vest in three equal installments on each of the first three anniversaries of the grant date of February 23, 2017, subject to the named executive officer’s continued employment); and (ii) 79,169 PSAs to Ms. Heino, 17,922 PSAs to Mr. Crowley, 19,762 PSAs to Mr. Duffy, 11,203 PSAs to Dr. Orlandi and 19,71617,924 PSAs to Mr. HealeyCrowley (each of these grants cliff vest on February 23, 2020, subject to the achievement of specific financial performance targets and the named executive officer’s continued employment). The aggregate grant date fair value of these PSAs, assuming the highest levels of achievement of performance targets, would be $1,315,516 for Ms. Heino, $297,804 for Mr. Crowley, $328,336 for Mr. Duffy and $327,614 for Mr. Healey. For 2016, the amounts reflect grants of: (i) 265,000 RSAs to Ms. Heino, 62,000 RSAs to Mr. Crowley, and 62,000 RSAs to Mr. Duffy (each of these grants vest in four equal installments on each of the first four anniversaries of the grant date of April 26, 2016,generally subject to the named executive officer’s continued employment).

(3)

See Note 2 to our audited consolidated financial statements included in our 2017 Annual Report on Form10-K for a description of the assumptions used in valuing these awards.

(2)The Compensation Committee awardednon-equity cash incentive compensation under the Executive Leadership Team Incentive Bonus Plan to: (i) Ms. Heino, Mr. Crowley,Marshall, Mr. Duffy and Mr. HealeyDr. Orlandi in the amounts of $797,500, $256,163, $271,550 and $185,926, respectively, for achieving certain specified adjusted earnings before interest expense, taxes, depreciation and amortization (“EBITDA”) and individual performance goals for 2018; and (ii) Ms. Heino, Mr. Duffy, Dr. Orlandi and Mr. Crowley in the amounts of $783,360, $238,588, $194,371 and $243,540, respectively, for achieving certain specified adjusted EBITDA and individual performance goals for 2017. The amounts reported for 2018 reflect the annual cash incentive compensation paid in the amounts of $783,360, $243,540, $238,5882019 for 2018 performance, and $226,151, respectively, for 2017; and (ii) Ms. Heino, Mr. Crowley and Mr. Duffy for achieving certain specified EBITDA and individual performance goals in the amounts of $730,000, $205,200 and $231,639, respectively, for 2016. The amounts reported for 2017 reflect the annual cash incentive compensation paid in 2018 for 2017 performance, and the amounts reported for 2016 reflect the annual incentive compensation paid in 2017 for 2016 performance, in each case, under the Executive Leadership Team Incentive Bonus Plan.

    

Also reported for 2018 and 2017 for Ms. Heino, Mr. Crowley, Mr. Duffy, Dr. Orlandi and Mr. HealeyCrowley are amounts earnedaccrued under theour 2016 long-term (cash)cash incentive plan (the “Cash LTIP”), based on the achievement of applicable performance goals. These earned amounts are: (i) $120,000, $29,333 and $26,667 for Ms. Heino, Mr. Duffy and Dr. Orlandi, respectively, for 2018; and (ii) $390,000, $95,333, $95,333$86,667 and $95,333 for Ms. Heino, Mr. Crowley, Mr. Duffy, Dr. Orlandi and Mr. Healey,Crowley, respectively, for 2017; and (ii) $119,970, $29,326 and $29,326 for Ms. Heino, Mr. Crowley and Mr. Duffy, respectively, for 2016;2017, in each case, as described under “LTIP”“Cash LTIP” below.

(3)(4)

For 2017,2018, the amounts reflect (i) matching contributions to our defined contribution retirement plan of $12,150$12,375 for each of Ms. Heino, Mr. Crowley, Mr. Duffy and Dr. Orlandi; (ii) relocation expenses of $17,333 for Mr. HealeyMarshall; and (ii) employer contributions(iii) severance payments to our long-term disability insurance premiums of $1,311 for each of Ms. Heino, Mr. Crowley Mr. Duffy and Mr. Healey. For 2016,as part of his separation from the amounts reflect (i)Company, as further described below, plus matching contributions to our defined contribution retirement plan of $11,925$12,375 for eachMr. Crowley. For 2017, the amounts reflect matching contributions to our defined contribution retirement plan of $12,150 for Ms. Heino, Mr. CrowleyDuffy, Dr. Orlandi and Mr. Duffy and (ii) employer contributions to our long term disability insurance premiums of $1,310 for each of Ms. Heino, Mr. Crowley and Mr. Duffy.Crowley.

Elements of Compensation

Our compensation program is heavily weighted towards performance-based compensation, reflecting our philosophy of increasing our long-term value and supporting strategic initiatives. Total compensation and other benefits for our named executive officers primarily consist of the following elements:

 

base salary;

 

annual cash incentive compensation;incentive;

 

long-term (cash)cash incentives;

 

long-term equity incentives; and

 

other broad-based benefits.

In 2017,2018, the Compensation Committee engaged Pearl Meyer & Partners, LLC (“Pearl Meyer”), an independent compensation consulting firm, to assist it in evaluating the Company’s executive competitive compensation practices, including the identification of an appropriate peer group of publicly traded companies for executive compensation comparison purposes, reviewing data from the peer group proxy statements and relevant market data from the Radford Life Sciences Survey on each element of executive and Boardnon-employee director compensation, developing guidance for each element, and commenting onreviewing the appropriateness of the recommendations submitted by management. LantheusPearl Meyer received instruction directly from the Chairperson of the Compensation Committee.

We generally targetstarget the market fiftieth (50th) percentile for each element of compensation, as presented by Pearl Meyer in theirits market analysis. Compensation recommendations were made to the Compensation Committeeanalysis based on adherence to this philosophy. Pearl Meyer received instruction directly from the Chairperson of the Compensation Committee.peer group and survey data described above. Our President and Chief Executive Officer assisted in developing, and presented to the Compensation Committee for its review and approval, management’s recommendations for our compensation program and specific awards tocompensation for her direct reports, including our other named executive direct reports.officers.

Base Salary

The base salaries of our named executive officers as of December 31, 20172018 are as follows:

 

Name

  Base Salary 

Mary Anne Heino

  $640,000 

John W. Crowley

  $369,000 

Michael Duffy

  $394,490 

Timothy Healey

  $391,400 

Name

  Base Salary 

Mary Anne Heino

  $675,000 

Robert J. Marshall, Jr.

  $405,000 

Michael Duffy

  $407,000 

Cesare Orlandi

  $418,000 

Annual Cash Incentive CompensationIncentives

Our 20172018 Executive Leadership Team Incentive Bonus Plan, rewardswhich the Compensation Committee adopted at the beginning of 2018, was intended to reward executive officers, including our named executive officers, for achieving corporate performance goals (i.e., a specified annual corporateadjusted EBITDA target, which generally aligned to the Company’s publicly announced financial guidance) and individual performance goals. For 2017, awards were based on the achievement of specified EBITDA and individual performance goals. Executives are eligible to receive up to 120% of their incentive targets for performance in excess of the target EBITDA performance goal. Individual performance modifiers are applied based on an executive’s achievement of individual goals, unique to each executive’s position. Each

For 2018, each of our named executive officers has anhad a target annual incentive target,payout amount, expressed as a percentage of thethat named executive officer’s base salary. For 2017,2018, these target annual incentive targetspayout amounts were 85% for Ms. Heino, 55% for Mr. Crowley, 45%Marshall and 50% for Mr. HealeyDuffy and 45%Dr. Orlandi, and was 55% for Mr. Duffy.Crowley. The actual amount that each of our named executive officers received under our 20172018 Executive Leadership Team Incentive Bonus Plan for 20172018 is reported in the “Summary Compensation Table” above.Table.”

For 2019, our Compensation Committee adopted the 2019 Executive Leadership Team Incentive Bonus Plan (the “2019 Executive Bonus Plan”), payouts under which are based on achievement of new corporate performance goals (i.e., specified Net Revenue, Adjusted EPS and Free Cash Flow targets) and individual performance goals, again unique to each executive’s position. For these compensation purposes, the corporate performance metrics are defined as follows, and are derived from the Company’s financial statements, subject to any adjustments approved by the Board:

by “Net Revenue,” we mean total revenue net of rebates and allowances;

by “Adjusted EPS,” we mean consolidated net income of the Company, net of tax, but excluding share-based compensation expense, amortization of acquired intangible assets, asset impairment charges, restructuring charges, other charges associated with permitted acquisitions, charges and gains associated with product or business line discontinuance, changes in contingent purchase price, legal settlements and otherone-time,non-recurring charges which do not represent ongoing costs to the business; and

by “Free Cash Flow,” we mean cash provided by operating activities, less cash used for capital expenditures.

The Compensation Committee selected these particular measures of corporate performance to align our compensation program with our annual external financial guidance, and because the Compensation Committee believes that: (i) our long-term success depends on our ability to drive sustainable Net Revenue growth; (ii) Adjusted EPS is a key indicator of our operational performance and profitability and is the basis on which stockholders calculate growth expectations; and (iii) Free Cash Flow focuses management on generating cash, which can then be deployed in a disciplined manner to create shareholder value.

For 2019, the corporate performance metrics will be weighted as follows: Net Revenue, 40%; Adjusted EPS, 30%; and Free Cash Flow, 30%. Failure to attain a threshold level of any of the corporate performance metrics will preclude any payout for the corresponding portion of the bonus payable under the 2019 Executive Bonus Plan. Attainment of each performance metric is calculated independently.

Cash LTIP

Our 2016 long-term incentive plan (“LTIP”) rewardsCash LTIP rewarded executive officers, including our named executive officers, for achieving certain specified, long-term financial, corporate and strategic performance goals, including certain annual revenue levels and certain operational goals. Achievement of performance goals under the Cash LTIP iswas measured as of September 1, 2017, and February 28, 2019, and cash payment iswas made after the Compensation Committee determinesdetermined whether and the extent to which the applicable performance goals were achieved.

In 2016, the Compensation Committee granted Cash LTIP awards to Ms. Heino, Mr. Crowley, Mr. Duffy, Dr. Orlandi and Mr. HealeyCrowley with targetmaximum cash amountspayouts of $900,000, $220,000, $220,000,$200,000 and $220,000, respectively.

As a result of the achievement of certain performance goals in accordance with their terms under the Cash LTIP prior to September 1, 2017, the Company paid $270,000, $66,000, $66,000,$60,000 and $66,000 to Ms. Heino, Mr. Crowley, Mr. Duffy, Dr. Orlandi and Mr. Healey,Crowley, respectively, in the third quarter of 2017. Payments associated withAs a result of the achievement of certain of the otherremaining performance goals in accordance with their terms under the Cash LTIP prior to February 28, 2019, will bethe Company paid $360,000, $88,000 and $80,000 to Ms. Heino, Mr. Duffy and Dr. Orlandi, respectively, in the first quarter of 2019. Because Mr. Marshall joined the Company in 2018, he did not participate in our Cash LTIP.

Long-Term Equity Incentive Awards

General

The Board of Directors approved and adopted our 2008 Equity Incentive Plan, our 2013 Equity Incentive Plan and our 2015 Equity Incentive Plan, each of which provides for grants of equity awards, including options to acquire Shares, RSAs, Restricted Stock Units (“RSUs”) subject to time-based vesting, PSAs and PSAs.RSUs subject to performance-based vesting (“PSUs”). Since its adoption in 2015, new grants of equity awards can only be made under the 2015 Equity Incentive Plan, which superseded theas it supersedes our previous plans.

Each ofAs described below, we have adopted Stock Ownership and Retention Guidelines that impose retention requirements on equity grants made in and after 2019 tonon-executive directors and executive officers, including our named executive officers, received a grant of RSAs and PSAs in 2017 commensurate withuntil that director or executive officer meets his or her rolerequired ownership stake.

Time-Based and in recognition of his or her performance during 2016. In February 2017, following consultation withPerformance-Based Annual Equity Awards

Based on the recommendations by its independent consultant, Pearl Meyer, theour Compensation Committee modified our equity compensation program andhas adopted guidelines regardingunder which the mix of time-based and performance-based equity to be granted to our named executive officers for 2017 (assuming, in the case of performance-based equity, achievement of performance goals at target levels). In accordance with these guidelines, in 2017 the Compensation Committee grantedCompany grants annual equity awards to executives, including our named executive officers, consisting of 50% PSAs, which vest based on attaining specified revenue and EBITDA goals over 2017, 2018 and 2019,time-based equity awards and 50% time-basedperformance-based equity awards (assuming target level achievement of applicable performance goals), with an aggregate grant date fair value determined commensurate with the executives’ roles and in recognition of their individual performance during the prior year. In 2018, Ms. Heino was granted 60,126 RSAs whichand 60,127 PSAs (at target), Mr. Duffy was granted 12,483 RSAs and 12,484 PSAs (at target), Dr. Orlandi was granted 12,814 RSAs and 12,815 PSAs (at target) and Mr. Crowley was granted 14,596 RSAs and 14,597 PSAs (at target). These annual RSAs vest in equal annual installments over three years, inon each case, subject to the named executive officer’s continued employment.One-sixth (1/6) of the total number of Shares subject to the PSAs may be earned based upon the achievement of specified revenue goals in each of 2017, 2018 and 2019, andone-sixth (1/6)first three anniversaries of the total numbergrant date, and these annual PSAs cliff vest on the third anniversary of Shares subjectthe grant date, in an amount equal to the PSAs may be earned based upon the achievement of specified EBITDA goals in each of 2017, 2018 and 2019.One-fourth (1/4)a percentage of the target number of Shares determined in reference to the extent to which the Company has achieved specified performance goals. Both RSAs and PSAs are also generally subject to the recipient remaining employed at the Company on the vesting date. We believe that the cliff vesting of the PSAs also serves as a meaningful retention tool. This mix of time and performance-based equity incentives is

intended to keep us highly-competitive within the executive talent market, while ensuring executives are focused on longer-term organizational performance. In connection with his hire in September 2018, Mr. Marshall was granted 44,642 RSAs, which vest in equal installments on each of the first four anniversaries of the grant date, generally subject to his continued employment with the Company on the applicable vesting date.

In February 2018, in consultation with Pearl Meyer and based on its review of peer group of public companies and other survey data described above, the Compensation Committee changed the performance-based goals used in equity award grants, from revenue and EBITDA, to relative Total Shareholder Return (“rTSR”) of the Company’s common stock, as compared to other companies in the S&P SmallCap Healthcare Index over a three full calendar year performance period, starting with the calendar year in which the grant was made. The adoption of rTSR was intended to ensure management alignment and accountability towards long term shareholder value creation. The Compensation Committee utilized the same equity grant approach in 2019.

The Compensation Committee granted executives rTSR PSAs as part of their annual equity grants in 2018 and rTSR PSUs as part of their annual equity grants in 2019, with each award giving the recipient the right to earn or receive one share of common stock of the Company with respect to each rTSR PSA or PSU (as applicable) awarded, generally subject to the holder’s continued employment with the Company on the vesting date. The relative changes in share prices during the performance period will be earned ifmeasured using the thresholdaverage closing prices during the 30 days preceding the beginning and the end of the performance level is achieved,one-half (1/2)period. The percentage of the target number of Shares that can vest under the rTSR PSAs and rTSR PSUs, will earned ifbe as follows:

Company’s TSR Percentile Rank

Vesting Percentage of
Target No. of Shares

Below 25th Percentile

0%

25th Percentile

50% (threshold)

50th Percentile

100% (target)

75th Percentile or Above

200% (maximum)

In the targetevent that the Company’s rTSR percentile rank for the performance level is achieved and one hundred twenty percentperiod falls between any of the target number of Sharesthresholds set forth above (to the extent greater than the threshold and lower than the maximum), the vesting percentage will be earned if the maximum performance level is achieved, with

ratable vesting on a straight-line basis for achievement of performance goalsdetermined by linear interpolation between those performance levels. To the extent earned, the PSAs cliff vest on February 23, 2020, subject to the named executive officer’s continued employment.thresholds.

Treatment of Awards Upon a Change of Control

A change of control of the Company accelerateswould accelerate the vesting of the unvested equity awards under our plans in certain circumstances as follows:

 

Unvested options, RSAs, RSUs and PSAs granted under our 2015 Equity Incentive Plan vest in full (at maximum levels of performance, in the case of PSAs) (i) immediately prior to a change of control transaction in which the proceeds are all cash and, (ii) if the acquirer assumes, or substitutes its own equity award for, any such award, upon termination of the grantee’s employment without cause or resignation for good reason within 12twelve (12) months of that change of control.

 

Unvested options

With respect to unvested rTSR PSAs or PSUs, upon a change of control transaction, the Compensation Committee will determine the extent to which applicable performance criteria have been achieved as of the date of the change of control as if the performance period end date applicable to the rTSR PSAs or PSUs was the date of the change of control and RSAs granted under our 2013 Equity Incentive Planwill determine the number of rTSR PSAs or PSUs that will be deemed earned. Earned rTSR PSAs or PSUs will vest in full upon a changeon the third anniversary of control.

the grant date. The unvested performance-vesting options granted under our 2008 Equity Incentive Plan that were amended in 2015 to be time-vesting options that cliff vest on June 24, 2018 (or any earlier option expiration date)earned rTSR PSAs or PSU will vest on a changeimmediately if the acquirer assumes, or substitutes its own equity award for, any such award, upon termination of control as to the number of Shares subject to that unvested award that would have been vested on the dategrantee’s employment without cause or resignation for good reason within twelve (12) months of that change of control if the award had been subject to time vesting in three equal installments on the first three anniversaries of June 24, 2015.

Clawback Policy Under 2015 Equity Incentive Plan

Under our 2015 Equity Incentive Plan, if a participant receives compensation pursuant to an award calculated by reference to financial statements that are subsequently required to be restated in a way that would decrease the value of suchthat compensation, the participant will, upon our written request, forfeit and repay to us the difference between what the participant received and what the participant should have received based on the restated accounting, restatement, in accordance with (i) our compensation recovery, “clawback” or similar policy, as may be in effect from time to time, and (ii) any compensation recovery, “clawback” or similar policy made applicable by law, including the Dodd-Frank Act.

Other Benefits

Retirement Plans

We offer a 401(k) qualified defined contribution retirement plan in which our employees, including our named executive officers, are eligible to participate, with a 75% employer match of each participant’s contributions up to 6% of the participant’s eligible compensation. We do not offer any other qualified ornon-qualified retirement plans.

Other Benefits

Except as otherwise discussed herein, otherOur welfare and employee-benefit programs are the same for all of our eligible employees, including our named executive officers, and our named executive officers do not receive additional benefits outside of those offered to our other employees.

Nonqualified Deferred Compensation

We do not offer our executives or other employees any nonqualified deferred compensation.

Outstanding Equity Awards at December 31, 20172018

The following tables include certain information with respect to equity awards held by our named executive officers as of December 31, 2017:2018, based on a closing stock price of $15.65 on that date:

 

 Option Awards Stock Awards  Option Awards Stock Awards 

Name

 Number of
Securities
Underlying
Unexercised
Options

(#)
Exercisable
 Number of
Securities

Underlying
Unexercised
Options

(#)
Unexercisable
 Equity
Incentive
Plan
Awards:

Number of
Securities  of
Underlying
Unexercised
Unearned
Options

(#)
 Option
Exercise
Price

($)
 Option
Expiration
Date
 Number of
Shares or
Units of
Stock that
Have not
Vested

(#)
 Market
Value of
Shares
or Units
of Stock
that
Have
Not
Vested(11)

($)
 Equity
Incentive
Plan Awards:

Number of
Unearned
Shares, Units
or Other
Rights that
Have Not
Vested

(#)
 Equity
Incentive
Plan Awards:
Market or
Payout Value
of Unearned
Shares, Units
or Other
Rights that
Have Not
Vested(11)

($)
  Number of
Securities
Underlying
Unexercised
Options
(#)
Exercisable
 Number of
Securities
Underlying
Unexercised
Options
(#)
Unexercisable
 Equity
Incentive
Plan
Awards:

Number of
Securities of
Underlying
Unexercised
Unearned
Options
(#)
 Option
Exercise
Price
($)
 Option
Expiration
Date
 Number of
Shares or
Units of
Stock that
Have not
Vested
(#)
 Market
Value of
Shares
or Units
of Stock
that
Have
Not
Vested(12)
($)
 Equity
Incentive
Plan Awards:

Number of
Unearned
Shares, Units
or Other
Rights that
Have Not
Vested
(#)
 Equity
Incentive
Plan Awards:
Market or
Payout Value
of Unearned
Shares, Units
or Other
Rights that
Have Not
Vested(12)
($)
 

Mary Anne Heino

                  

Options(1)

 44,484   —     —    19.11  04/15/23      44,484   —     —    19.11  04/15/23     

RSAs(2)

      22,242  454,849   —     —         22,242  348,087   —     —   

RSAs(3)

      113,500  2,321,075   —     —         56,750  888,138   —     —   

RSAs(4)

      198,750  4,064,438   —     —         132,500  2,073,625   —     —   

RSAs(5)

      91,070  1,862,382  52,778  1,079,310       43,986  688,381   —     —   

RSAs(6)

      60,126  940,972   —     —   

PSAs(7)

        79,169  1,238,995 

PSAs(8)

        60,127  940,988 

John W. Crowley

         

Options(6)

 2,278  568   —    28.83  01/05/21     

Options(7)

 10,676   —     —    18.66  08/05/23     

RSAs(2)

      5,338  109,162   —     —   

RSAs(3)

      20,000  409,000   —     —   

RSAs(4)

      46,500   
950,925
 
  —     —   

RSAs(8)

      18,750   
383,438
 
  —     —   

RSAs(5)

      20,618  421,638  11,948  244,337 

Robert J. Marshall, Jr.

         

RSA(9)

      44,642  698,647   

Michael Duffy

                  

Options(7)

 24,911   —     —    18.66  08/05/23     

Options(9)

 21,655  27,313   —    5.62  04/04/18     

Options(10)

 24,911   —     —    18.66  08/05/23     

RSAs(2)

      17,794  363,887   —     —         17,794  278,476   —     —   

RSAs(3)

      24,750  506,138   —     —         12,375  193,669   —     —   

RSAs(4)

      46,500  950,925   —     —         31,000  485,150   —     —   

RSAs(5)

      22,732  464,869  13,172  269,367       10,979  171,821   —     —   

RSAs(6)

      12,483  195,359   —     —   

PSAs(7)

        19,762  309,269 

PSAs(8)

        12,484  195,375 

Timothy Healey

         

RSAs(10)

      33,500  685,075   —     —   

Cesare Orlandi

         

Options(11)

 26,690   —     —    21.10  03/04/23     

Options(10)

 8,896   —     —    18.66  08/05/23     

RSAs(2)

      7,117  111,381   —     —   

RSAs(3)

      10,000  156,500   —     —   

RSAs(4)

      22,500  352,125   —     —   

RSAs(5)

      22,679  463,786  13,144  268,795       6,224  97,406   —     —   

RSAs(6)

      12,814  200,539   —     —   

PSAs(7)

        11,203  175,330 

PSAs(8)

        12,815  200,555 

John W. Crowley

  —     —     —     —     —     —     —     —     —   

 

(1)

These options were granted to Ms. Heino upon her hire on April 15, 2013. Half of this grant was subject to time-based vesting in four equal annual installments on the first four anniversaries of the grant date, subject to Ms. Heino’s continued employment, and half of this grant was subject to EBITDA performance-vesting with respect to each of the first four fiscal years ending after the grant date, subject to Ms. Heino’s continued employment. These options were fully vested as of December 31, 2017.2018.

(2)

These RSAs were granted on April 6, 2015. Each of these grants vest in two equal installments on each of the second and fourth anniversaries of the grant date, generally subject to the named executive officer’s continued employment.

(3)

These RSAs were granted to Ms. Heino on August 31, 2015 and Mr. CrowleyDuffy and Mr. DuffyDr. Orlandi on September 1, 2015. Each of these grants vest in four equal installments on each of the first four anniversaries of the grant date, generally subject to the named executive officer’s continued employment.

(4)

These RSAs were granted on April 26, 2016. Each of these grants vest in four equal installments on each of the first four anniversaries of the grant date, generally subject to the named executive officer’s continued employment.

(5)

These RSAs were granted on February 23, 2017. TheEach of these grants vest in three equal installments on each of the first three anniversaries of the grant date, generally subject to the named executive officer’s continued employment.

(6)

These RSAs reportedwere granted on March 5, 2018. Each of these grants vest in three equal installments on each of the “Equity Incentive Plan Awards: Numberfirst three anniversaries of Unearned Shares, Units or Other Rights that Have Not Vested” column arethe grant date, generally subject to the named executive officer’s continued employment.

(7)

These PSAs thatwere granted on February 23, 2017. Each of these grants are earned based on the achievement of specified revenue and adjusted EBITDA goals in 2017, 2018 and 2019, as described in further detail under “Long-Term Equity Incentive Awards” above and, to the extent earned, vest on February 23, 2020, subject to the named executive officer’s continued employment. SuchThese PSAs are reported assuming the maximum level of achievement of performance targets. The RSAs reported in the “Number of Shares or Units of Stock that Have not Vested” column are RSAs that vest in three equal annual installments on each of the first three anniversaries of the grant date, subject to the named executive officer’s continued employment.

(6)These options were granted to Mr. Crowley on January 5, 2011. Half of this grant was subject to time-based vesting in five equal annual installments on the first five anniversaries of the grant date, and half of this grant was subject to EBITDA performance-based vesting with respect to each of the first five fiscal years ending after the grant date. These options were amended in 2015 to provide that the unvested performance-based vesting portion will vest in full on June 24, 2018, subject to Mr. Crowley’s continued employment.
(7)(8)

These optionsPSAs were granted to Mr. Crowley and Mr. Duffy on AugustMarch 5, 2013.2018. Each of these grants vestedare earned based on the achievement of relative Total Shareholder Return, as described in four equal installmentsfurther detail under “Long-Term Equity Incentive Awards” above and, to the extent earned, vest on each of the first four anniversaries of the grant date,March 5, 2021, subject to the named executive officer’s continued employment. These rTSR PSAs are reported assuming the target level of achievement of performance targets.

(9)

These RSAs were granted to Mr. Marshall on October 15, 2018 as part of his offer of employment. This grant is subject to time-based vesting in four equal annual installments on the first four anniversaries of the grant date, generally subject to Mr. Marshall’s continued employment.

(10)

These options were granted to Mr. Duffy and Dr. Orlandi on August 5, 2013. These options were fully vested as of December 31, 2017.2018.

(8)(11)These RSAs were granted to Mr. Crowley on January 1, 2016 in recognition of his service as our interim CFO. This grant vests in four equal installments on each of the first four anniversaries of the grant date, subject to Mr. Crowley’s continued employment.
(9)

These options were granted to Mr. Duffy on April 4, 2008. Half of this grant was subject to time-based vesting in five equal annual installments on the first five anniversaries of the grant date, subject to Mr. Duffy’s continued employment, and half of this grant was subject to EBITDA performance-based vesting with respect to each of the first five fiscal years ending after the grant date, subject to Ms. Duffy’s continued employment. These options were amended in 2015 to provide that the unvested performance-based vesting portion will vest in full on April 3, 2018, subject to Mr. Duffy’s continued employment.

(10)These RSAs were granted to Mr. HealeyDr. Orlandi upon his hire on March 4, 2013. These options were fully vested as of December 15, 2015. This grant vests in four equal installments on each of the first four anniversaries of the grant date, subject to Mr. Healey’s continued employment.31, 2018.

(11)(12)

The market value of unvested RSAs and PSAs was calculated by multiplying the closing price of our common stock on December 29, 201731, 2018 ($20.45)15.65), the last business day of 2017, by the number of Shares reported for the unvested RSAs.RSAs and PSAs.

Employment Agreements; Severance and Potential Payments

Upon Termination or Change of Control

The Compensation Committee determined that it was appropriate to enter into employment agreements withAs of December 31, 2018, Ms. Heino, Mr. Duffy and Dr. Orlandi were each of our named executive officers. Among other things, these agreements set forth the executives’ compensation terms, their rights upon a termination of employment and restrictive covenants relating tonon-competition,non-solicitation and confidentiality.

Each of our named executive officers is party to an employment agreement that provideprovided severance payments and benefits in the event of a termination of the named executive officer’s employment by the Companywithout cause (as defined in the applicable agreement) in an amount equal to the sum of (i) the executive’s annual base salary on the date of termination of employment, (ii) a pro rata portion (based upon the percentage of the fiscal year elapsed through the date of the executive’s termination of employment) of a specified percentage of the executive’s base salary (85% for Ms. Heino, 50% for Mr. Crowley,Duffy, 50% for Mr. Duffy, 45% for Mr. Healey)Dr. Orlandi), which amounts described in clause (i) and (ii) would be payable in substantially equal installments over a12-month period, and (iii) an amount equal to the Company’s portion of the COBRA premiums for 12 months, in the case of Ms. Heino, Mr. Duffy and Mr. Healey and for 6 months, in the case of Mr. Crowley, or payable in substantially equal monthly installments following termination, in addition to any earned and unpaid bonus for the year preceding termination of employment, earned and unpaid base salary and unreimbursed business expenses. In the event of a termination of the named executive officer’s employment by the Companywithout cause or resignation by the executivefor good reason within 12 months following achange of control(each, as defined in the applicable agreement), the named executives officer would be entitled to the severance described in the preceding sentence, except that the amount described in clause (ii) would be the full bonus amount (i.e., not be prorated.pro rated for the partial year). In addition, a change of control of the Company accelerateswould result in the acceleration of the vesting of certain unvested equity awards under our plans in certain circumstances, as described under “Long-Term Equity Incentive Awards” above.

In 2018, the Compensation Committee, working with Pearl Meyer, evaluated our executive compensation practices, including our severance arrangements in comparison to our peer group of public companies and the salary survey information referenced above. The Compensation Committee then recommended, and the Board subsequently authorized, management to implement, modifications to our severance arrangements, including for our current named executive officers. Effective as of January 25, 2019, these modifications have been implemented and apply to our President and Chief Executive Officer and her direct reports at the Senior Vice President level and above, including Mr. Marshall, Mr. Duffy and Dr. Orlandi. In exchange for being bound by certain restrictive covenants and providing a release and waiver in favor of the Company, in the event of a terminationwithout cause or resignation forgood reason, these new arrangements provide for the following severance payments and benefits: (i) one times annual base salary, plus a prorated portion of the target annual bonus in effect on the date of separation and an amount equal to the Company’s portion of COBRA premiums for up to 12 months following such termination of employment, in the event that the senior executive is terminatedwithout cause or resigns forgood reasonother than after achange of control; and (ii) two times annual base salary, plus two times the full-year target annual bonus in effect on the date of separation and an amount equal to the Company’s portion of COBRA premiums for 24 months following such termination of employment, in the event that the senior executive is terminatedwithout cause or resigns for good reason within 12 months of achange of control with all unvested stock options and other equity-based awards also vesting in full (with performance-based equity awards vesting at target levels of achievement).

The table below quantifies the amounts that would have become payable under each named executive officer’s employment agreement and equity award agreements if, on December 31, 2017,2018, a change of control werehad been consummated and the named executive officer’s employment was terminated without cause or the named executive resigned for good reason.reason under the agreements in place on January 25, 2019, as described above. Due to the number of factors that affect the nature and amount of any benefits provided upon the events discussed above, any actual amounts paid may be different. Factors that could affect these amounts include the timing during the year of any such event, the cost of benefits, and the named executive officer’s base salary.salary and our stock price.

 

Name

  Salary   Additional Amount   Benefits   Total   Current
Salary
($)
   Additional
Amount Total
($)
   Benefits
($)
   COC Total
($)
 

Mary Anne Heino(1)

  $640,000   $10,082,739   $28,246   $10,750,985    675,000    8,735,199    28,247    9,438,446 

John W. Crowley(2)

  $369,000   $2,647,948   $14,123   $3,031,071 

Robert J. Marshall, Jr.(2)

   405,000    1,549,147    28,247    1,982,394 

Michael Duffy(3)

  $394,490   $3,077,063   $30,991   $3,502,545    407,000    2,591,574    28,247    3,026,821 

Timothy Healey(4)

  $391,400   $1,533,233   $28,246   $1,952,879 

Cesare Orlandi(4)

   418,000    2,100,614    19,892    2,538,506 

 

(1)

The Additional Amount for Ms. Heino consists of (i) $544,000$1,822,500 in cash severance and (ii) the acceleration of RSAs and PSAs having a market value (as(based on a closing stock price of $15.65 as of December 31, 2017)2018) of $9,538,739.$6,912,699.

(2)

The Additional Amount for Mr. CrowleyMarshall consists of (i) $184,500$850,500 in cash severance and (ii) the acceleration of RSAs and PSAs having a market value (as(based on a closing stock price of $15.65 as of December 31, 2017)2018) of $2,463,448.$698,647

(3)

The Additional Amount for Mr. Duffy consists of (i) $177,521$814,000 in cash severance, (ii) the acceleration of RSAs and PSAs having a market value (as(based on a closing stock price of $15.65 as of December 31, 2017)2018) of $2,494,492 and (iii) the acceleration of options having a market value (as of December 31, 2017) on a net exercise basis of $405,052.$1,777,574.

(4)

The Additional Amount for Mr. HealeyDr. Orlandi consists of (i) $176,130$836,000 in cash severance, and (ii) the acceleration of RSAs and PSAs having a market value (as(based on a closing stock price of $15.65 as of December 31, 2017)2018) of $1,357,103.$1,264,614.

No compensation is payabledue to our named executive officers upon a termination of employment or upon a change of control that is not followed by a qualifying termination of employment, other than in the as described above or as required by applicable law.

In addition, each of the employment agreementsseverance arrangements with our named executive officers provides for a modifiedcut-back in the event that adverse tax consequences are imposed on the receipt of parachute payments by the named executive officer pursuant to Sections 280G and 4999 of the Internal Revenue Code of 1986, as amended (the “Code”). If any payments or benefits from the Company in the nature of compensation that are paid to or for the named executive officer’s benefit, whether paid or payable pursuant to his or her employment agreement or otherwise (each, a “Payment”), would subject the named executive officer to the excise tax under Section 4999 of the Code, then the Payments will be reduced to the greatest amount of the Payments that can be paid that would not result in the imposition of the excise tax (the “Reduced Amount”). However, if the amount of the Payments the named executive officer would receive after payment of all applicable taxes, including any excise taxes, is greater than the Reduced Amount, then no such reduction will occur.

Separation Agreement with Mr. Crowley

In connection with his separation from the Company in September 2018, Mr. Crowley entered into a separation agreement with the Company under which Mr. Crowley received (i) a cash severance payment of $656,550, representing his annual base salary, target annual bonus and the portion of his cash long-term incentive plan award that had been achieved, (ii) reimbursement for COBRA premiums and up to $25,000 of outplacement benefits for up to twelve months following his separation date, and (iii) accelerated vesting of 40,838 unvested RSAs, subject to transfer restrictions through the original vesting dates of such awards or an earlier change in control, in addition to any amounts required by law or the terms of the Company’s policies and benefit plans. The separation agreement included a confirmation of the restrictive covenants to which Mr. Crowley was subject, includingconfidentiality, non-competition, non-solicitation, no-hire and invention assignment covenants, and a release of claims in favor of the Company, its affiliates and certain other persons.

Stock Ownership and Retention Guidelines

In February 2019, the Compensation Committee recommended, and the Board approved and adopted, Stock Ownership and Retention Guidelines (“Guidelines”). Under these Guidelines:

Our CEO and the executive officers who directly report to her are required to acquire and hold (vested) shares of our common stock in an aggregate value at least equal to a specified multiple of his or her base salary, as determined by his or her position. The multiple ranges from one times base salary for certain of our executive officers, to three times base salary for our CEO.

Additionally, ournon-employee directors are required to acquire and hold (vested) shares of our common stock in an aggregate amount at least equal to three times their annual Board cash retainer.

Until a director or executive officer achieves his or her required ownership level, he or she is required to retain 50% of allafter-tax Shares issued upon (i) exercise of any vested Company stock option award (calculated on a net exercise basis) or (ii) the vesting of any other Company stock incentive award (such as the RSAs, RSUs, PSAs and PSUs described above). These retention requirements apply to new equity award grants commencing in 2019.

Our executive officers andnon-employee directors are required to comply with the Guidelines within five years of when the Guidelines apply to them. As of February 26, 2019, Messrs. Markison, Clemmer and Leno, Ms. McHugh and Drs. Robertson and Schaffer, and Ms. Heino and Mr. Duffy each had already achieved the requirements under the stock ownership guidelines.

A copy of our Stock Ownership and Retention Guidelines is available on the Corporate Governance section of our Investor Relations website at http://investor.lantheus.com.

DIRECTOR COMPENSATION

For 2017,2018, each of ournon-employee directors was eligible to receive the following annual compensation in cash (which is paid quarterly in advance and prorated for partial periods of service) for services as a director and, as applicable, Board committee member:

 

each director receives an annual fee of $50,000, and the Chairperson of the Board of Directors receives an additional annual fee of $50,000;$62,500;

 

each member of the Audit Committee receives an annual fee of $10,000, and the Chairperson of the Audit Committee instead receives an annual fee of $20,000;

 

each member of the Compensation Committee receives an annual fee of $7,500, and the Chairperson of the Compensation Committee instead receives an annual fee of $15,000; and

 

each member of the Nominating and Governance Committee receives an annual fee of $4,000, and the Chairperson of the Nominating and Governance Committee instead receives an annual fee of $10,000.$10,000; and

In 2016, we did not compensate our

each member of the Financing and Strategy Committee receives an annual fee of $5,000, and the Chairperson of the Financing and Strategy Committee instead receives an annual fee of $7,500.

The Compensation Committee periodically engages Pearl Meyer to review the Company’s outside director compensation program. The review covers the levels of cash and equity retainers that are provided to outside directors, or committee members with per meeting fees. For 2017, afteras well as the overall structure of the program, against the same peer group of public companies used for executive compensation benchmarking purposes. The independent consultant makes recommendations to the Compensation Committee for consideration, and the Compensation Committee subsequently recommends any changes to the outside director compensation program for the Board’s approval. After reviewing the results of a compensation study prepared by Pearl Meyer, the Compensation Committee increased the additional annual fee for the Chairperson ofrecommended, and the Board of Directorsapproved, an increase to $50,000 and reduced the annual fee for each member of the Nominating and Governance Committee to $4,000. For 2017, former directors Messrs. Burgstahler and Venkataraman waived their right to receive any compensation or equity in respect of their service as directors and committee members. $5,000 for 2019.

Directors who are employees of the Company do not receive separate or additional compensation for their services as directors or committee members. On April 27, 2017, Mr. Venkataraman did not stand for election to the Board and, on September 7, 2017, Mr. Burgstahler resigned from the Board. Neither resignation was due to a disagreement with the Company, the Board or management on any matter relating to the Company’s operations, policies or practices.

On January 25, 2017, Ms. McHugh was appointed to the Board of Directors. She was granted 2,671 RSAs upon her appointment, which vested in full on January 25, 2018.

On February 27, 2017,In 2018, each person then-serving as anon-employee director (with the exception of Messrs. Burgstahler and Venkataraman, who waived their compensation as directors and committee members in 2017) was granted 8,7307,911 RSAs under our 2015 Equity Incentive Plan. These 20172018 awards vested in full on March 5, 2019. On February 27, 2018.26, 2019, eachnon-employee director was granted 5,353 RSUs under our 2015 Equity Incentive Plan. These 2019 annual equity awards will vest in full on February 26, 2020, generally subject to continued service through that date.

All directors are subject to the Company’s Stock Ownership and Retention Guidelines described above.

Non-employee members of the Board of Directorsdirectors are also entitled to reimbursement forout-of-pocket expenses incurred in connection with rendering suchthose services for so long as they serve as directors.

The following table shows compensation paid to the individuals who served as ournon-employee directors in 2017:2018:

 

Name(1)

  Fees Earned or
Paid in Cash

($)
   Stock Awards(2)
($)
   Option
Awards ($)
   All Other
Compensation

($)
   Total
($)
 

Brian Markison(3)

   100,000    110,000    —      —      210,000 

David Burgstahler(4)

   —      —      —      —      —   

James Clemmer(5)

   66,030    110,000    —      —      176,030 

Samuel Leno(6)

   70,000    110,000    —      —      180,000 

Julie McHugh(7)

   58,722    133,500    —      —      192,222 

Dr. Frederick Robertson(8)

   65,464    110,000    —      —      175,464 

Dr. Derace Schaffer(9)

   60,678    110,000    —      —      170,678 

Sriram Venkataraman(4)

   —      —      —      —      —   

Name(1)

  Fees Earned or
Paid in Cash
($)
   Stock Awards(2)
($)
   Option
Awards ($)
   All Other
Compensation
($)
   Total
($)
 

Brian Markison(3)

   116,854    125,000    —      —      241,854 

James C. Clemmer(4)

   67,500    125,000    —      —      192,500 

Samuel Leno(5)

   74,213    125,000    —      —      199,213 

Julie McHugh(6)

   65,000    125,000    —      —      190,000 

Gary Pruden(7)

   54,775    125,000    —      —      179,775 

Kenneth Pucel(8)

   48,455    125,000    —      —      173,455 

Dr. Frederick Robertson(9)

   70,000    125,000    —      —      195,000 

Dr. Derace Schaffer(10)

   62,343    125,000    —      —      187,343 

Dr. James Thrall(11)

   46,348    125,000    —      —      171,348 

 

(1)

Ms. Heino does not receive any additional compensation for her service as a director or as a committee member and is not listed in the table above. For information regarding Ms. Heino’s 20172018 executive compensation, see “Summary Compensation Table” above.

(2)

The amounts in the stock awards column reflect the aggregate grant date fair value, calculated in accordance with FASB ASC Topic 718, of RSAs, excluding the effect of estimated forfeitures. The aggregate grant date fair value of RSAs is measured based on the closing fair market value of the our common stock on the date of grant, multiplied by the number of Shares subject to the award granted, for each RSA grant made during the year. This grant date fair value does not necessarily correspond to the actual value that will ultimately be realized by each director, which will likely vary based on a number of factors, including our financial performance, stock price fluctuations and applicable vesting.

(3)

On February 27, 2017,March 5, 2018, Mr. Markison was granted 8,7307,911 RSAs. As of December 31, 2017,2018, Mr. Markison held (a) 14,2857,911 unvested RSAs and (b) outstanding options to purchase 58,913 Shares, of which options to purchase 53,35858,913 Shares were vested.

(4)Messrs. Burgstahler and Venkataraman are Partners of Avista and in 2017 waived their rights to, and so did not receive, any direct compensation for their service as directors or committee members.
(5)

On February 27, 2017,March 5, 2018, Mr. Clemmer was granted 8,7307,911 RSAs. As of December 31, 2017,2018, Mr. Clemmer held (a) 11,0617,911 unvested RSAs and (b) outstanding options to purchase 6,993 Shares, of which options to purchase 4,6626,993 Shares were vested.

(6)(5)

On February 27, 2017,March 5, 2018, Mr. Leno was granted 8,7307,911 RSAs. As of December 31, 2017,2018, Mr. Leno held (a) 11,5087,911 unvested RSAs and (b) outstanding options to purchase 33,871 Shares, of which options to purchase 31,09333,871 Shares were vested.

(7)(6)

On January 25, 2017, and February 27, 2017,March 5, 2018, Ms. McHugh was granted 2,671 and 8,7307,911 RSAs, respectively. As of December 31, 2017,2018, Ms. McHugh held 11,4017,911 unvested RSAs.

(8)(7)

On February 27, 2017, Dr. RobertsonMarch 5, 2018, Mr. Pruden was granted 8,7307,911 RSAs. As of December 31, 2017, Dr. Robertson2018, Mr. Pruden held 8,7307,911 unvested RSAs.

(9)(8)

On February 27, 2017, Dr. SchafferMarch 5, 2018, Mr. Pucel was granted 8,7307,911 RSAs. As of December 31, 2017,2018, Mr. Pucel held 7,911 unvested RSAs.

(9)

On March 5, 2018, Dr. Robertson was granted 7,911 RSAs. As of December 31, 2018, Dr. Robertson held 7,911 unvested RSAs.

(10)

On March 5, 2018, Dr. Schaffer was granted 7,911 RSAs. As of December 31, 2018, Dr. Schaffer held 8,7307,911 unvested RSAs.

(11)

On March 5, 2018, Dr. Thrall was granted 7,911 RSAs. As of December 31, 2018, Dr. Thrall held 7,911 unvested RSAs.

STOCK OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

The following table sets forth information regarding the beneficial ownership of our common stock held by (i) each of our directors, (ii) each of our named executive officers, (iii) our directors and named executive officers as a group and (iv) each person known to us to beneficially own more than 5% of our common stock. For our directors and officers, the information is as of the Record Date, February 22, 2018.26, 2019. For other stockholders who own more than 5% of our common stock, the information is as of the most recent Schedule 13G filed by each such stockholderof those stockholders with the SEC.

Beneficial ownership of Shares is determined under rules of the SEC and generally includes any Shares over which a person exercises sole or shared voting or investment power. Except as noted by footnote, and subject to community property laws where applicable, we believe based on the information provided to us that the persons and entities named in the table below have sole voting and investment power with respect to all Shares shown as beneficially owned by them.

Percentage of beneficial ownership is calculated in part based on 37,860,711 shares38,628,501 Shares outstanding as of February 22, 2018.26, 2019. Shares subject to RSAs that are currently vested or that will vest within 60 days of the date of this proxy statement, and stock options currently exercisable or exercisable within 60 days of the date of this proxy statement, are deemed to be outstanding and beneficially owned by the person holding those RSAs and options for the purposes of computing the percentage of beneficial ownership of that person and any group of which that person is a member, but are not deemed outstanding for the purpose of computing the percentage of beneficial ownership for any other person.

Unless otherwise indicated, the address for each holder listed below is c/o Lantheus Holdings, Inc., 331 Treble Cove Road, North Billerica, MA 01862.

 

Name of Beneficial Owner

  Number of Shares
of Common Stock
Beneficially Owned
   Percentage Ownership 

Directors and Named Executive Officers

    

Brian Markison(1)

   78,648    * 

David Burgstahler

   —      * 

James Clemmer(2)

   38,392    * 

Samuel Leno(3)

   37,488    * 

Julie McHugh

   11,401    * 

Dr. Frederick Robertson

   33,730    * 

Dr. Derace Schaffer

   43,730    * 

Sriram Venkataraman

   —      * 

Dr. James Thrall

   —      * 

Gary Pruden

   —      * 

Kenneth Pucel

   —      * 

Mary Anne Heino(4)

   121,314    * 

John W. Crowley(5)

   29,423    * 

Michael Duffy(6)

   35,810    * 

Timothy Healey(7)

   5,476    * 

All Directors and Executive Officers as a Group (19 persons)(8)

   467,918    1.2

5% Stockholders

    

T. Rowe Price Associates, Inc.(9)

   4,839,949    12.8

Black Rock, Inc.(10)

   3,808,620    10.1

The Vanguard Group, Inc.(11)

   2,799,133    7.4

Wellington Management Co. LLP(12)

   2,383,091    6.3

Name of Beneficial Owner

  Number of Shares
of Common Stock
Beneficially Owned
  Percentage Ownership

Directors and Named Executive Officers

      

Brian Markison(1)

    151,027        *

James Clemmer(1)

    55,627        *

Samuel Leno(1)

    82,048        *

Julie McHugh(1)

    14,752        *

Dr. Frederick Robertson(1)

    41,641        *

Dr. Derace Schaffer(1)

    51,641        *

Dr. James Thrall(1)

    7,911        *

Gary Pruden(1)

    7,911        *

Kenneth Pucel(1)

    7,911        *

Mary Anne Heino(2)

    354,628        *

Michael Duffy(3)

    98,598        *

Cesare Orlandi(4)

    54,218        *

Robert J. Marshall Jr.(5)

    —          *

John W. Crowley(6)

    64,057        *

All Directors and Named Executive Officers as a Group (14 persons)(7)

    991,970        2.6%

5% Stockholders

           

Black Rock, Inc.(8)

    5,540,296        14.4%

Wellington Management Co. LLP(9)

    2,674,989        6.9%

The Vanguard Group(10)

    2,362,948        6.1%

 

*

Represents beneficial ownership of less than 1% of our outstanding Shares.

(1)

Does not include 5,5555,353 unvested RSAsRSUs held by Mr. Markison.each Director.

(2)

Does not include 2,331399,351 unvested RSAs, RSUs and PSAs held by Mr. Clemmer.Ms. Heino.

(3)

Does not include 2,77890,683 unvested RSAs, RSUs and PSAs held by Mr. Leno.Duffy.

(4)

Does not include 444,45368,483 unvested RSAs, RSUs and PSAs held by Ms. Heino.Dr. Orlandi.

(5)

Does not include 109,23364,588 unvested RSAs, RSUs and PSAs held by Mr. Crowley.Marshall.

(6)Does not include 116,491 unvested RSAs

Based on shares held by Mr. Duffy.Crowley upon separation with the Company on September 28, 2018.

(7)

Does not include 60,886671,282 unvested RSAs, held by Mr. Healey.

(8)Does not include 998,465 unvested RSAsRSUs and PSAs held by our directors and named executive officers as a group.

(9)(8)Based solely on Amendment No. 3 to Schedule 13G filed on February 14, 2018 by T. Rowe Price Associates, Inc. (“Price Associates”) and T. Rowe Price Health Sciences Fund, Inc. (“Price Fund”) (collectively, “T. Rowe Price”). In that filing, (i) Price Associates reports sole voting power with respect to 537,842 Shares and sole dispositive power with respect to 4,839,949 Shares, and reports that not more than 5% of Shares is owned by any one client subject to the investment advice of Price Associates, and (ii) Price Fund reports sole voting power with respect to 2,209,909 Shares. Also in that filing, T. Rowe Price lists its address as 100 E. Pratt Street, Baltimore, Maryland 21202.
(10)

Based solely on Amendment No. 1 to Schedule 13G filed on January 19, 201831, 2019 by Blackrock, Inc. In that filing, Blackrock, Inc. reports sole voting power with respect to 3,748,4085,464,971 Shares and sole dispositive power with respect to 3,808,6205,540,296 Shares, and reports that not more than 5% of Shares is owned by any one client subject to the investment advice of Blackrock, Inc. Also in that filing, Blackrock, Inc. lists its address as 55 E. 52nd Street, New York, New York 10055.

(11)(9)Based solely on a Schedule 13G filed on February 8, 2018 by The Vanguard Group. In that filing, The Vanguard Group reports sole voting power with respect to 56,891 Shares and sole dispositive power with respect to 2,741,724 Shares, and reports that not more than 5% of Shares is owned by any one client subject to the investment advice of The Vanguard Group. Also in that filing, The Vanguard Group lists its address as The Vanguard Group, 100 Vanguard Blvd., Malvern, PA 19355.
(12)

Based solely on Amendment No. 3 to Schedule 13G filed on February 8, 201812, 2019 by Wellington Management Group LLP, Wellington Group Holdings LLP, Wellington Investment Advisors Holdings LLP and Wellington Management Company LLP (collectively, “Wellington”). In that filing, (i) Wellington Management Group LLP, Wellington Group Holdings LLP and Wellington Investment Advisors Holdings LLP each report shared voting power with respect to 1,816,7542,674,989 Shares and shared dispositive power with respect to 2,383,0912,674,989 Shares and (ii) Wellington Management Company LLP reports shared voting power with respect to 1,776,7712,616,506 Shares and shared dispositive power with respect to 2,189,8552,616,506 Shares. In that filing, Wellington also reports that (a) all of these Shares are owned of record by clients of one or more of the following of its investment advisors: Wellington Management Company LLP, Wellington Management Canada LLC, Wellington Management Singapore Pte Ltd, Wellington Management Hong Kong Ltd, Wellington Management International Ltd, Wellington Management Japan Pte Ltd and Wellington Management Australia Pty Ltd (collectively, the “Wellington Investment Advisers”), (b) none of those clients owns more than 5% of Shares, except for Wellington Trust Company, NA, (c) Wellington Management Group LLP is the parent holding company of certain holding companies and the Wellington Investment Advisers, (d) Wellington Investment Advisors Holdings LLP controls directly, or indirectly through Wellington Management Global Holdings, Ltd., the Wellington Investment Advisers, (e) Wellington Investment Advisors Holdings LLP is owned by Wellington Group Holdings LLP and (f) Wellington Group Holdings LLP is owned by Wellington Management Group LLP. Also in that filing, Wellington lists its address as c/o Wellington Management Company LLP, 280 Congress Street, Boston, MA 02210.

(10)

Based solely on a Schedule 13G filed on February 12, 2019 by The Vanguard Group. In that filing, The Vanguard Group reports sole voting power with respect to 75,084 Shares, shared voting power with respect to 2,200 Shares, shared dispositive power with respect to 72,236 Shares and sole dispositive power with respect to 2,290,712 Shares, and reports that not more than 5% of Shares is owned by any one client subject to the investment advice of The Vanguard Group. Also in that filing, The Vanguard Group lists its address as The Vanguard Group, 100 Vanguard Blvd., Malvern, PA 19355.

SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE

Section 16(a) of the Exchange Act requires the Company’s directors, certain executive officers and persons who beneficially own more than 10% of the Company’s Shares, to file reports of beneficial ownership and reports of changes in beneficial ownership with the SEC. These persons are required by SEC regulations to furnish the Company with copies of all Section 16(a) reports that they file. We assist our directors and executive officers with their Section 16(a) filings. Based solely on a review of reports filed with the SEC and written representations from directors and executive officers, we believe that all required reports under Section 16(a) with respect to those persons were timely filed during 2017.2018.

CERTAIN RELATIONSHIPS AND RELATED PERSON TRANSACTIONS

This section describes certain relationships and related person transactions between us or our subsidiaries, on the one hand, and our directors, director nominees, executive officers, holders of more than 5% of our voting securities and certain related persons of any of the foregoing, on the other hand, since January 1, 2017.2018.

Shareholders Agreements

In connection with Avista’s original acquisition of the Company’s business (the “Acquisition”), the Company entered into (i) a Shareholders Agreement with Avista and certain Management Shareholders, dated January 8, 2008 and subsequently amended on February 26, 2008 and on June 25, 2015 in connection with the consummation of our initial public offering (the “Initial Shareholders Agreement”), and (ii) an Employee Shareholders Agreement with Avista and certain employee stockholders named therein, dated as of May 30, 2008 and subsequently amended on June 25, 2015 in connection with the consummation of our initial public offering (the “Employee Shareholders Agreement,” and, collectively with the Initial Shareholders Agreement, the “Shareholders Agreements”). Messrs. Markison and Leno were Management Shareholders parties to the Initial Shareholders Agreement, and certain of our executive officers were parties to the Employee Shareholders Agreement.

Until they terminated in accordance with their respective terms in 2017, the Shareholders Agreements governed the parties’ respective rights, duties and obligations with respect to the ownership of Company securities. The Initial Shareholders Agreement provided demand registration rights in favor of Avista and piggy-back registration rights in favor of Avista and the Management Shareholders. The Initial Shareholders Agreement also provided Avista with the right to nominate two directors to the Board of Directors for so long as it owns 25% or more of our issued and outstanding Shares, and the right to nominate one director for election to the Board of Directors for so long as it beneficially owns 10% or more, but less than 25%, of our issued and outstanding Shares.

Prior to June 30, 2016, the first anniversary of our initial public offering, both Shareholders Agreements (i) provided the Company with the right to repurchase shares held by Management Shareholders or employee stockholders who ceased to be employed by the Company or any of its subsidiaries and (ii) restricted the ability of the Management Shareholders and employee stockholders to transfer Shares that they owned, allowing Management Shareholders and employee stockholders to transfer Shares only in proportion to the transfer of Shares by Avista. Those restrictions expired on June 30, 2016.

INC Research Master Services Agreement

In the first quarter of 2016, we entered into a services agreement with INC Research Holdings, Inc. (“INC”), now known as Syneos Health, Inc., to provide pharmacovigilance services. Avista and certain of its affiliates were principal owners of both us and INC during 2016. The agreement has a term of three years. During the year ended December 31, 2016, investment funds affiliated with Avista disposed of shares of INC common stock held by them. As a result, such investment funds were no longer a principal owner of INC. Related party expenses included in the following table represent expenses incurred during the period under which investment funds affiliated with Avista held an investment in INC.

VWR Scientific Purchases

We purchase inventory supplies from VWR Scientific (“VWR”). Avista and certain of its affiliates were principal owners of both us and VWR during 2017 and 2016.

Indemnification Agreements

We have entered into indemnification agreements with each of our directors and executive officers. These agreements, among other things, require us to indemnify each director and executive officer to the fullest extent

permitted by Delawareapplicable law, including indemnification of expenses, such as attorneys’ fees, judgments, penalties, fines and settlement amounts, actually and reasonably incurred by the director or executive officer in any action or proceeding, including, without limitation, all liability arising out of negligence or active or passive wrongdoing by suchthat officer or director, in any action or proceeding by or in right of us, arising out of the person’s services as a director or executive officer.officer, in each case, subject to certain exceptions. At present, we are not aware of any pending or threatened litigation or proceeding involving any of our directors, executive officers, employees or agents in which indemnification would be required or permitted. We believe these indemnification agreements are necessary to attract and retain qualified persons as directors and executive officers.

Related Party Expenses

Related party expenses consisted of the following:

     Year Ended December 31, 

(in thousands)

 Transaction Type        2017               2016       

INC Research Holdings, Inc.

 Pharmacovigilance services  $—     $780 

VWR Scientific*

 Inventory supplies   297    354 
   

 

 

   

 

 

 
   $297   $1,134 
   

 

 

   

 

 

 

*During the year ended December 31, 2017, Avista distributed to its partners or sold approximately 6.3 million shares of our common stock in the aggregate, representing the remainder of their holdings in us. The transactions were effected as sales anddistributions-in-kind of our common stock to the investors in those investment funds. As such, Avista and VWR Scientific (an entity in which Avista had an interest) are no longer related parties.

Policies for Approval of Related Person Transactions

We have a written policy relating to the approval of related person transactions pursuant to which the Audit Committee reviews and approves or ratifies all relationships and related person transactions between us and (i) our directors, director nominees and executive officers, (ii) any 5% record or beneficial owner of Shares or (iii) any immediate family member of any person specified in (i) or (ii) above. Management, under the oversight of the Audit Committee, is primarily responsible for the development and implementation of processes and controls to obtain information from our directors and executive officers with respect to related person transactions, and the Audit Committee is primarily responsible for determining, based on the facts and circumstances, whether we have, or a related person has, a direct or indirect material interest in the transaction.

As set forth in theour related person transaction policy, in the course of its review and approval or ratification of a related person transaction, the Audit Committee will consider:

 

the nature of the related person’s interest in the transaction;

 

the availability of other sources of comparable products or services;

 

the material terms of the transaction, including, without limitation, the amount and type of transaction; and

 

the importance of the transaction to us.

Any member of the Audit Committee who is a related person with respect to a transaction under review will not be permitted to participate in the approval or ratification of the transaction. However, that member of the Audit Committee will provide all material information concerning the transaction to the Audit Committee.

AMENDMENTS TO OUR AMENDED AND RESTATED CERTIFICATE OF INCORPORATIONPROPOSAL 2:

(PROPOSALS 2 THROUGH 4)

The Board has unanimously approved, and recommendsAmendment to the stockholders that they adopt, amendments to our amended and restated certificate of incorporation (our “Charter”) to:

eliminate the supermajority voting requirements for amendments to certain provisions of the Charter (Proposal 2);

permit holders of at least a majority of our common stock to call special meetings of the stockholders (Proposal 3); and

delete various provisions related to our former sponsor that are no longer applicable (Proposal 4).

Background: In General

Since we completed our initial public offering (“IPO”), there have been many changes to our stockholder base. Specifically, when we completed our IPO, Avista Capital Partners, LP, Avista Capital Partners (Offshore) LP and ACP LanternCo-Invest LLC (collectively referred to as “Avista”) collectively owned more than 64% of the outstanding shares of our common stock. At the time of our IPO, there were numerous items in our Charter that reflected those ownership positions.

As of August 14, 2017, Avista no longer beneficially owned any shares of our common stock. Therefore, we have reviewed our Charter to determine what revisions are advisable due to these changes in our stockholder base. During this review, we also analyzed recent corporate governance trends and considered what other changes are advisable.

Separate Proposals

Although each of these proposals have come about based on our review of our Charter due to changes in our stockholder base and our review of recent corporate governance trends, we are submitting these amendments to the stockholders as separate proposals so that our stockholders are able to express their views on each amendment separately. Each proposal is not conditioned on the approval of any other proposal. Our Charter provides generally that the affirmative vote of the majority of the shares entitled to vote on any matter is required to amend our Charter, but, in certain instances, the affirmative vote of 66 2/3% of the shares entitled to vote is required to amend our Charter. Therefore, we will amend our Charter to implement:

Proposal 2 only if that particular proposal receives approval from at least 66 2/3% of the shares entitled to be cast; and

Each of Proposal 3 and Proposal 4 only if that particular proposal receives approval from at least a majority of the shares entitled to be cast.

Corresponding Changes to our Bylaws

As part of our review of our Charter and corporate governance trends, we also reviewed our amended and restated bylaws and identified the corresponding provisions of our bylaws that would be revised assuming the proposals in this proxy statement are approved by our stockholders. Even though our Board has the right to amend our bylaws without the need to seek stockholder approval, our Board has determined that, to the extent that our stockholders do not approve a Charter proposal that has a corresponding change in our amended and restated bylaws, the Board will not make that change in our amended and restated bylaws. The changes proposed to be made to our amended and restated bylaws are as follows:

remove references to Avista and permit stockholders to call a special meeting (Section 1.02);

delete the provision referring to Avista’s rights to designate persons for nomination for election to our Board (Section 1.12(c)); and

delete the provision that provides first resort indemnification and advancement of expenses to directors that were partners or employees of Avista and the corresponding cross-reference to such indemnity (Section 6.01(c) and Section 6.07(a)).

PROPOSAL 2: AMENDMENT TO ELIMINATE THE SUPERMAJORITY VOTING REQUIREMENT FOR AMENDMENTS TO CERTAIN PROVISIONS OF OUR CHARTER2015 Equity Incentive Plan

We are seeking stockholder approval of the proposed amendment to our Charter to eliminate the supermajority voting requirement for amendments to provisions of our Charter.

Background

Article XII of our Charter currently requires the affirmative vote of at least 66 2/3% of the voting power of the Company’s then outstanding shares of stock entitled to vote generally in the election of directors to amend certain provisions of our Charter, including (i) Section 5.3 (providing for classification of the Board of Directors); (ii) Section 5.4 (providing for removal of Directors); (iii) Section 5.6 (providing for the filling of vacancies on the Board of Directors); (iv) Article XI (providing exclusive forum in the Court of Chancery of the State of Delaware); and (v) Article XII (providing for supermajority vote to amend the Charter).Lantheus Holdings, Inc. 2015 Equity Incentive Plan (as amended to date, the “2015 Equity Incentive Plan”) to increase the number of Shares reserved for issuance under the 2015 Equity Incentive Plan by an additional 825,000 Shares. We are not seeking stockholder approval of any other changes to the 2015 Equity Incentive Plan.

On February 22, 2018,We believe that our continuing ability to offer equity incentive awards under the Board adopted resolutions approving2015 Equity Incentive Plan is critical to our ability to attract, motivate and authorizingretain key individuals who are critical to our long term success, particularly as we grow and in light of the proposed Charter amendment and directing that the amendment be submitted to a vote of stockholders at the Annual Meeting. highly-competitive market for talent in which we operate.

The Board has determined that it is in the best interests of the Company and its stockholders to amend Article XIIapprove this proposal. As such, the Board has approved the amendment to the 2015 Equity Incentive Plan to increase the number of Shares available thereunder, subject to stockholder approval, and recommends that stockholders vote in favor of this proposal at the Charter to apply a simple majority voting standard to amend provisionsAnnual Meeting. Stockholder approval of this proposal requires the Charter, substantially in the form provided below. This amendment empowersaffirmative vote of a majority of the outstanding Shares that are present in person or by proxy and entitled to vote on the proposal at the Annual Meeting.

If stockholders approve this proposal, the amendment to the 2015 Equity Incentive Plan to increase the number of Shares available thereunder will become effective as of the date of stockholder approval. If stockholders do not approve this proposal, the amendment to 2015 Equity Incentive Plan will not take effect and our 2015 Equity Incentive Plan will continue to be administered in its current form. Our executive officers and directors have an interest in this proposal by virtue of their being eligible to receive equity awards under the 2015 Equity Incentive Plan. The remainder of this discussion, when referring to the 2015 Equity Incentive Plan, refers to the amended 2015 Equity Incentive Plan as if this proposal was approved by our stockholders, unless otherwise specified or the context otherwise references the 2015 Equity Incentive Plan prior to this proposed amendment.

Background

The 2015 Equity Incentive Plan was initially adopted in June 2015 with an initial Share reserve of 2,415,277 Shares, which was increased by 2,140,000 Shares in April 2016 and by an additional 1,200,000 Shares in April 2017 following Board and stockholder approvals. In February 2019, in order to implement additional best corporate governance and compensation practices, our Compensation Committee approved another amendment to the 2015 Equity Incentive Plan to:

prohibit the payment of dividends or other distributions accruing on unvested equity awards prior to the time the underlying award vests; and

provide a minimum12-month period to elapse before any portion of unvested equity awards can vest (subject to certain exceptions, including for a death, disability, change of control, terminations of employment in connection with a change of control and otherwise for up to 5% of the Shares reserved for issuance).

The February 2019 amendment (a copy of which is included on page A-27 of Appendix A), which applies to all new equity awards granted after its adoption, is currently effective and not subject to stockholder approval.

Any Shares subject to outstanding awards under the 2015 Equity Incentive Plan that expire or are otherwise forfeited to the Company (other than Shares withheld by the Company to satisfy exercise price or tax withholding payment obligations) become available again for future grant under the 2015 Equity Incentive Plan.

As of March 1, 2019, taking into account our expected 2019 grants, approximately 1,341,200 Shares remain available for grant under the 2015 Equity Incentive Plan. The Board believes that additional Shares are necessary to meet the Company’s currently anticipated equity compensation needs for approximately the next two years following the Annual Meeting. This estimate is based on a forecast that takes into account the anticipated rate of growth in hiring, an estimated range of our stock price over time and our historical forfeiture rates.

Reasons for Voting for the Proposal

Long-Term Equity is a Key Component of our Compensation Objective

Delivering competitive equity value to our management team is essential to attracting and retaining the quality of talent required for us to achieve our financial, operating and strategic objectives. We compete for this talent with a significant number of biotechnology, pharmaceutical and other life sciences companies in Massachusetts that offer substantial equity grant programs. We strongly believe that hiring and retaining key talent is very much in the interests of our stockholders.

Equity awards incentivize our employees to manage our business as owners, aligning their interests with the long-term interests of our stockholders. Equity awards, the value of which depend on our stock performance and which require continued service and/or performance over long periods of time before any value can be realized, help achieve these objectives and are a key element of our compensation program.

Equity awards allow us to preserve our cash resources.

We believe that, for investors, a combination of equity and cash compensation optimizes the Company’s valuation and properly incentivizes executives by linking their pay to Company performance.

If we do not obtain stockholder approval to increase the available pool, the Company anticipates that it will have an insufficient number of Shares to make equity-based compensation a meaningful part of our employees’ and officers’ overall compensation. As such, the Company believes its ability to retain and attract talented employees will be adversely affected.

Our Company is Committed to the Effective Utilization of Shares

The Compensation Committee has engaged Pearl Meyer, an independent compensation consulting firm, to assist us in our periodic evaluation of market competitive practices and optimal share utilization.

In February 2018, following consultation with Pearl Meyer, the Compensation Committee changed the performance metrics under our equity compensation program from specified revenue and adjusted EBITDA performance goals, to rTSR goals. This change was intended to better align management’s interests with the long-term interests of stockholders and to manage our limited share reserve under our 2015 Equity Incentive Plan, while taking into account competitive compensation practices.

In determining the amount of Share increase requested by this proposal, our Board considered the historical number of equity awards granted by the Company in the past three years, as described in the following table:

Year

 Stock
Options
Granted
  Time-
Based
RSAs
Granted
  PSAs
Granted
(at Target)(1)
  PSAs
Earned
  Total
Number
Of Shares
Granted
  Weighted Average
Common Shares
Outstanding
  Time-Based
RSAs
Granted
and PSAs
Earned
Share
Grant Rate
  Total Share
Grant Rate
 

2018

  0   647,850   206,896   0   854,746   38,233,292   1.69  2.24

2017

  0   395,146   303,495   0   698,641   37,276,366   1.06  1.87

2016(2)

  0   1,364,000   0   0   1,364,000   32,043,904   4.26  4.26

 

(1)   Assuming full achievement of the Company’s performance goals, the maximum portion of the 2017 PSAs and 2018 PSAs that would vest is 120% and 200%, respectively, of the target number of PSAs.

(2)   Due to the Company’s low stock price in 2016, the Company needed to grant a relatively greater number of Shares to deliver a comparable value of equity awards to grantees.

    

    

Our 2015 Equity Incentive Plan is consistent with principles of good corporate governance

The Board believes that the 2015 Equity Incentive Plan will promote the interests of stockholders and is consistent with principles of good corporate governance, including:

No Evergreen Share Pool. The 2015 Equity Incentive Plan does not include an “evergreen” share pool that would increase the number of Shares available without stockholder approval.

No Discounted Stock Options or SARs. All stock option and stock appreciation rights awards under the 2015 Equity Incentive Plan must have an exercise or base price that is not less than the fair market value of the underlying common stock on the date of grant.

No Repricing. Other than in connection with a change of control or dilutive events, the 2015 Equity Incentive Plan prohibits any repricing of stock options or stock appreciation rights.

No Liberal Share Recycling. Shares underlying stock options and other awards issued under the 2015 Equity Incentive Plan will not be recycled into the Share pool if they are withheld in payment of the exercise price of the award or to satisfy tax withholding obligations in respect of the award.

Minimum Vesting Periods. New awards under the 2015 Equity Incentive Plan are subject to a minimum12-month vesting period (subject to certain exceptions, including for a death, disability, change of control, terminations of employment in connection with a change of control and otherwise for up to 5% of the Shares reserved for issuance).

No Dividends on Unvested Awards. Dividend and dividend equivalents may not be paid on a current basis on unvested awards.

No Single-Trigger Change of Control Acceleration. Awards under the 2015 Equity Incentive Plan do not automatically accelerate upon a change of control (except for awards granted tonon-employee directors that haveone-year time-based vesting).

The 2015 Equity Incentive Plan Requires Additional Shares to Meet our Forecasted Needs

We expect to grant equity awards representing approximately 631,000 Shares during 2019 (representing approximately 1.6% of our outstanding Shares as of March 1, 2019). We anticipate limited forfeitures and cancellations under the 2015 Equity Incentive Plan, consistent with our previous history. Forfeitures of awards under our previous equity plans cannot be credited to replenish the Shares available for grant under the 2015 Equity Plan.

As a result, the Board, based on the recommendation of the Compensation Committee, concluded that increasing the number of Shares available for issuance under our 2015 Equity Incentive Plan would provide the Company with the ability to undertake the flexible and balanced approach of using equity and cash compensation as needed to help us retain and motivate employees, which furthers stockholder interests.

Summary of the 2015 Equity Incentive Plan

The following is a summary of the material features of the 2015 Equity Incentive Plan. The summary is qualified in its entirety by the 2015 Equity Incentive Plan as set forth in Appendix A.

Administration

The 2015 Equity Incentive Plan is administered by the Compensation Committee or another committee of the Board, comprised of no fewer than two members of the Board who are appointed by the Board to administer the plan, or, subject to the limitations set forth in the 2015 Equity Incentive Plan, the Board (the appropriate body is referred to as the “Committee”). Subject to the limitations set forth in the 2015 Equity Incentive Plan, the Committee has the authority to determine the persons to whom awards are to be granted, prescribe the restrictions, terms and conditions of all awards, interpret the 2015 Equity Incentive Plan and adoptsub-plans and rules for the administration, interpretation and application of the 2015 Equity Incentive Plan.

Reservation of Shares

Subject to adjustments as described below, the maximum aggregate number of Shares that may be issued pursuant to awards granted under the 2015 Equity Incentive Plan, as amended, will be equal to 6,580,277 (including the 825,000 additional Shares proposed to be added pursuant to the amendment to the 2015 Equity Incentive Plan as set forth in this Proposal 2); provided, that no more than 20% of the Shares may be granted as incentive stock options within the meaning of Section 422 of the Code. Any Shares issued under the 2015 Equity Incentive Plan will consist of authorized and unissued Shares or treasury shares.

In the event of any recapitalization, reclassification, stock dividend, extraordinary dividend, stock split, reverse stock split or other distribution with respect to common stock, or any merger, reorganization, consolidation, combination,spin-off, stock purchase, or other similar corporate change or any other change affecting common stock, equitable adjustments will be made to the number and kind of Shares available for grant, as well as to other maximum limitations under the 2015 Equity Incentive Plan, and the number and kind of Shares or other terms of the awards that are affected by the event.

Share Counting

Awards that are required to be paid in cash pursuant to their terms will not reduce the Share reserve. To the extent that an award granted under the 2015 Equity Incentive Plan is canceled, expired, forfeited, surrendered, settled by delivery of fewer Shares than the number underlying the award, settled in cash or otherwise terminated without delivery of the Shares, the Shares retained by or returned to us will (i) not be deemed to have been delivered under the 2015 Equity Incentive Plan, (ii) be available for future awards under the 2015 Equity Incentive Plan, and (iii) increase the Share reserve by one Share for each Share that is retained by or returned to us. Notwithstanding the foregoing, Shares that are (x) withheld from an award or separately surrendered by the participant in payment of the exercise or purchase price or taxes relating to such an award or (y) not issued or delivered as a greater influenceresult of the net settlement of an outstanding stock option or stock appreciation right will be deemed to constitute delivered shares, will not be available for future awards under the 2015 Equity Incentive Plan and will continue to be counted as outstanding for purposes of determining whether award limits have been attained. If an award is settled in cash, the number of Shares on which the award is based will not count toward any individual Share limit, but will count against the annual cash performance award limit. Awards assumed or substituted for in a merger, consolidation, acquisition of property or stock or reorganization will not reduce the Share reserve.

Eligibility

Awards under the 2015 Equity Incentive Plan may be granted to any of our employees, directors, consultants or other personal service providers or any of the same of our subsidiaries. The plan allows grants to consultants and other personal service providers, however, this has not been the Company practice.

Stock Options

Stock options granted under the 2015 Equity Incentive Plan may be issued as either incentive stock options, within the meaning of Section 422 of the Code, or as nonqualified stock options. The exercise price of an option will be not less than 100% of the fair market value of a Share on the date of the grant of the option. The Committee will determine the vesting and/or exercisability requirements and the term of exercise of each option, including the effect of termination of service of a participant or a change in control. The vesting requirements may be based on the continued employment or service of the participant for a specified time period or on the attainment of specified business performance goals established by the Committee. The maximum term of an option will be 10 years from the date of grant.

To exercise an option, the participant must pay the exercise price, subject to specified conditions, (i) in cash, or, to the extent permitted by the Committee, and set forth in an award agreement, (ii) in Shares, (iii) through an

open-market broker-assisted transaction, (iv) by reducing the number of Shares otherwise deliverable upon the exercise of the stock option, (v) by combination of any of the above methods or (vi) by any other method approved by the Committee must pay any required tax withholding amounts. All options generally are nontransferable.

Subject to the anti-dilution adjustment provisions and the change in control provisions of the 2015 Equity Incentive Plan, without the prior approval of our stockholders, neither the Committee nor the Board will (a) cancel a stock option in exchange for cash or another award when the exercise price per Share under such stock option then exceeds the fair market value of one Share, (b) cause the cancellation, substitution or amendment of a stock option that would have the effect of reducing the exercise price of that stock option or (c) otherwise approve any modification to a stock option that would be treated as a “repricing” under the then applicable rules, regulations or listing requirements adopted by NASDAQ or other principal exchange on which our common stock is then listed.

Stock Appreciation Rights

A stock appreciation right may be granted either in tandem with an option or without a related option. A stock appreciation right entitles the participant, upon settlement or exercise, to receive a payment based on the excess of the fair market value of a Share on the date of settlement or exercise over the Company’s governancebase price of the right, multiplied by the number of Shares as to which the right is being settled or exercised. Stock appreciation rights may be granted on a basis that allows for the exercise of the right by the participant or that provides for the automatic payment of the right upon a specified date or event. The base price of a stock appreciation right may not be less than 100% of the fair market value of a Share on the date of grant. The Committee will determine the vesting requirements and aligns the Company’s policyterm of exercise of each stock appreciation right, including the effect of termination of service of a participant or a change in control. The vesting requirements may be based on the continued employment or service of the participant for a specified time period or on the attainment of specified business performance goals established by the Committee. The maximum term of a stock appreciation right will be ten years from the date of grant. Stock appreciation rights may be payable in cash or in Shares or in a combination of both. All stock appreciation rights generally are nontransferable.

Subject to the anti-dilution adjustment provisions and the change in control provisions of the 2015 Equity Incentive Plan, without the prior approval of our stockholders, neither the Committee nor the Board will (a) cancel a stock appreciation right in exchange for cash or another award when the base price per Share under that stock appreciation right then exceeds the fair market value of one Share, (b) cause the cancellation, substitution or amendment of a stock appreciation right that would have the effect of reducing the base price of that stock appreciation right or (c) otherwise approve any modification to a stock appreciation right that would be treated as a “repricing” under the then applicable rules, regulations or listing requirements adopted by NASDAQ or other principal exchange on which our common stock is then listed.

Restricted Stock Awards (RSAs)

RSAs represent Shares that are issued subject to restrictions on transfer and vesting requirements. The vesting requirements may be based on the continued service of the participant for a specified time period or on the attainment of specified performance goals established by the Committee, and vesting may be accelerated in certain circumstances, as determined by the Committee. RSA holders will not be entitled to dividends or other distributions, if at all, until underlying Shares have vested and, unless otherwise set forth in an award agreement, will not have any of the other rights of a stockholder (including, the right to vote), unless and until those Shares vest. Any dividends with currently recognized corporate governance best practices.respect to an RSA that is subject to performance-based vesting will be subject to the same restrictions on transfer and vesting requirements as the underlying RSA. Until the applicable restrictions are removed or have expired, all RSAs are generally nontransferable.

Amendment

Restricted Stock Units (RSUs)

RSUs provide the participant the right to receive a payment based on the value of a Share. RSUs may be subject to vesting requirements, restrictions and conditions to payment. RSUs may vest based solely on the continued service of the participant for a specified time period. In addition, RSUs may be denominated as PSUs and may vest in whole or in part based on the attainment of specified performance goals established by the Committee. The vesting of RSUs and PSUs may be accelerated in certain circumstances, as determined by the Committee. RSU and PSU awards will become payable to a participant at the time or times determined by the Committee and set forth in the award agreement, which may be upon or following the vesting of the award. RSU and PSU awards are payable in cash or in Shares or in a combination of both. RSUs and PSUs may be granted together with a dividend equivalent right with respect to the Shares subject to the award. Dividend equivalent rights will be paid at such time as is determined by the Committee in its discretion (including without limitation at the times paid to stockholders generally or at the times of vesting or payment of the RSU or PSU. Dividend equivalent rights will be subject to forfeiture under the same conditions as apply to the underlying RSUs or PSUs. All RSUs and PSUs are generally nontransferable.

Cash Performance Awards

A performance award is denominated in a cash amount (rather than in Shares) and is payable based on the attainment ofpre-established business and/or individual performance goals. The requirements for payment may be also based upon the continued service of the participant during the performance period, and vesting may be accelerated in certain circumstances, as determined by the Committee. All cash performance awards are generally nontransferable. The maximum amount of cash compensation that may be paid to a participant during any one calendar year under all cash performance awards and all other awards that are actually paid or settled in cash is limited to $2.0 million.

Effect of Change in Control

Upon the occurrence of a change in control, as defined in the plan as a “change of control event” under Section 409A of the Code, unless otherwise specifically prohibited under applicable law, or unless otherwise provided in the applicable award agreement, the Committee is authorized to make adjustments in the terms and conditions of outstanding awards, including without limitation the following (or any combination thereof): (i) continuation or assumption of our outstanding awards (if we are the surviving company or corporation) or by the surviving company or corporation or its parent; (ii) substitution by the surviving company or corporation or its parent of awards with substantially the same or comparable terms (including, with respect to economic value) for outstanding awards; (iii) accelerated exercisability, vesting and/or payment; and (iv) if all or substantially all of our outstanding Shares transferred in exchange for cash consideration in connection with that change in control: (A) upon written notice, provide that any outstanding stock options and stock appreciation rights are exercisable during a reasonable period of time immediately prior to the scheduled consummation of the event or any other reasonable period as determined by the Committee (contingent upon the consummation of the event), and at the end of that period, those stock options and stock appreciation rights will terminate to the extent not so exercised within the relevant period; and (B) cancellation of all or any portion of outstanding awards for fair value, as determined in the sole discretion of the Committee.

Forfeiture

The Committee may specify in an award agreement that an award will be subject to reduction, cancellation, forfeiture or recoupment upon the occurrence of certain specified events, including termination of service for “cause” (as defined in the 2015 Equity Incentive Plan), violation of material Company policies, breach of noncompetition, confidentiality or other restrictive covenants that may apply to the participant, or other conduct by the participant that is detrimental to our business or reputation. Unless otherwise provided by the Committee and set forth in an award agreement, if (i) a participant’s service is terminated for “cause” or (ii) after termination

of service for any other reason, the Committee determines in its discretion either that, (A) during the participant’s period of service, the participant engaged in an act which would have warranted termination from service for “cause” or (B) after termination, the participant engaged in conduct that violates any continuing obligation or duty of the participant set forth in any executive or restrictive covenant agreement to which the participant is a party in favor of us or any of our subsidiaries, that participant’s rights, payments and benefits with respect to that award may be subject to cancellation, forfeiture and/or recoupment.

Right of Recapture; Parachute Payments

If approved,a participant receives compensation pursuant to an award calculated by reference to financial statements that are subsequently required to be restated in a way that would decrease the amendment would amend Article XIIvalue of that compensation, the Charterparticipant will, upon our written request, forfeit and repay to us the difference between what the participant received and what the participant should have received based on the accounting restatement, in accordance with (i) our compensation recovery, “clawback” or similar policy, as follows:

ARTICLE XII

12.1    Amendment. The Corporation reserves the right, at any time andmay be in effect from time to time and (ii) any compensation recovery, “clawback” or similar policy made applicable by law including the Dodd-Frank Act.

Notwithstanding anything to alter, amend, addthe contrary contained in the 2015 Equity Incentive Plan, in the event the receipt of all payments or distributions by us in the nature of compensation to or repealfor a participant’s benefit, whether paid or payable pursuant to this plan or otherwise (a “Payment”), would subject the participant to the excise tax under Section 4999 of the Code, the Payments will be reduced to the greatest amount of the Payments that can be paid and would not result in the imposition of the excise tax (the “Reduced Amount”), however, if the portion of the Payments the participant would receive after payment of all applicable taxes, including any provision contained in this Amendedexcise taxes, is greater than the Reduced Amount, no such reduction will occur.

Tax Withholding

We have the power and Restated Certificate of Incorporation (includingthe right to deduct or withhold automatically from any certificate of designations relatingamount deliverable under an award or otherwise, or require a participant to remit to us, the minimum statutory amount to satisfy federal, state and local taxes, domestic or foreign, required by law or regulation to be withheld with respect to any seriestaxable event arising as a result of the 2015 Equity Incentive Plan. With respect to required withholding, participants may elect (subject to our automatic withholding right set out above) to satisfy the withholding requirement with respect to any taxable event arising as a result of the 2015 Equity Incentive Plan, in whole or classin part, by the methods described in the 2015 Equity Incentive Plan applicable to the payment of Preferred Stock)the exercise price in any manner nowconnection with stock option exercises.

Starting in 2019, we are requiring certain senior executives to cover tax liabilities resulting from the vesting of their equity awards pursuant tosell-to-cover transactions under10b5-1 plans to, among other things, conserve cash that the Company must remit to tax authorities that it would otherwise fund from cash on hand.

Deferrals of Payment

The Committee may in its discretion permit participants in the 2015 Equity Incentive Plan to defer the receipt of payment of cash or hereafter prescribeddelivery of Shares that would otherwise be due by law, and all rights, preferences, privileges and powersvirtue of any nature conferred upon stockholders, directorsthe exercise of a right or anythe satisfaction of vesting or other persons herein are granted subjectconditions with respect to this reservation;an award or an election to receive Shares (in lieu of compensation otherwise payable in cash) on a deferred basis in accordance with the terms of the 2015 Equity Incentive Plan; provided, however, that notwithstandingdiscretion will not apply in the case of a stock option or stock appreciation right.

Trading Policy Considerations

Stock option exercises and other awards granted under the 2015 Equity Incentive Plan is subject to our insider trading policy, Stock Ownership and Retention Guidelines (as described above) and other trading or ownership policy related restrictions, terms and conditions as in effect, from time to time.

Term, Amendment and Termination

The 2015 Equity Incentive Plan, as amended by the amendment described in this proxy statement, will be effective as of the date on which stockholders approve it. The Board may amend, modify, suspend or terminate the 2015 Equity Incentive Plan at any time. However, no termination or amendment of the 2015 Equity Incentive Plan will adversely affect any award granted beforehand without the consent of the participant or the permitted transferee of the award; except as otherwise provided in the 2015 Equity Incentive Plan or determined by the Committee to be necessary to comply with applicable laws. The Board may seek the approval of any amendment by our stockholders to the extent it deems necessary or advisable for purposes of compliance with Section 162(m) or Section 422 of the Code, the listing requirements of NASDAQ or for any other provisionpurpose.

Certain Federal Income Tax Consequences

The following is a summary of certain U.S. federal income tax consequences associated with certain awards granted under the 2015 Equity Incentive Plan. The summary is based on the Code, applicable Treasury Regulations and administrative and judicial interpretations thereof, each as in effect on the date of this Amendedproxy statement, and Restated Certificate of Incorporation (including any certificate of designations relatingis, therefore, subject to any seriesfuture changes in the law, possibly with retroactive effect. The summary is general in nature and does not purport to be legal or class of Preferred Stock), and in additiontax advice. Further, the summary does not purport to anycover federal employment tax or other voteU.S. federal tax consequences that may be associated with the 2015 Equity Incentive Plan, nor does it cover state, local ornon-U.S. taxes, except as may be specifically noted.

Stock Options (other than incentive stock options). In general, a participant has no taxable income upon the grant of anon-qualifying stock option (an “NQSO”) but realizes income in connection with the exercise of the NQSO in an amount equal to the excess (at the time of exercise) of the fair market value of the exercised shares over the exercise price. A corresponding deduction is generally available to the Company. Upon a subsequent sale or exchange of the shares, any recognized gain or loss is treated as a capital gain or loss for which the Company is not entitled to a deduction.

Incentive Stock Options. In general, a participant realizes no taxable income upon the grant or exercise of incentive stock options (an “ISO”). However, the exercise of an ISO may result in an alternative minimum tax liability to the participant. Generally, a disposition of shares purchased pursuant to an ISO within two years from the date of grant or within one year after exercise produces ordinary income to the participant (and generally a deduction to the Company) equal to the fair market value of the shares at the time of exercise less the exercise price. Any additional gain recognized in the disposition is treated as a capital gain for which the Company is not entitled to a deduction. If the participant does not dispose of the shares until after the expiration of theseone- andtwo-year holding periods, any gain or loss recognized upon a subsequent sale of shares purchased pursuant to an ISO is treated as a long-term capital gain or loss for which the Company is not entitled to a deduction.

Stock Appreciation Rights. The grant of a stock appreciation right (a “SAR”) does not itself result in taxable income, nor does taxable income result merely because a SAR becomes exercisable. In general, a participant who exercises a SAR for shares of stock or receives payment in cancellation of a SAR will have ordinary income equal to the amount of any cash and the fair market value of any stock received. A corresponding deduction is generally available to the Company.

RSAs. A participant who is awarded or purchases shares subject to a substantial risk of forfeiture generally does not have income until the risk of forfeiture lapses. When the risk of forfeiture lapses, the participant has ordinary income equal to the excess of the fair market value of the shares at that time over the purchase price, if any, and a corresponding deduction is generally available to the Company. However, a participant may make an election under Section 83(b) of the Code to be taxed on restricted stock when it is acquired rather than later, when the substantial risk of forfeiture lapses. A participant who makes an effective 83(b) election will realize ordinary income equal to the fair market value of the shares as of the time of acquisition less any price paid for the shares. A corresponding deduction will generally be available to the Company. If a participant makes an effective 83(b) election, no additional income results by reason of the lapsing of the restrictions.

For purposes of determining capital gain or loss on a sale of shares awarded under the 2015 Equity Incentive Plan, the holding period in the shares begins when the participant recognizes taxable income with respect to the transfer. The participant’s tax basis in the shares equals the amount paid for the shares plus any income realized with respect to the transfer. However, if a participant makes an effective 83(b) election and later forfeits the shares, the tax loss realized as a result of the forfeiture is limited to the excess of what the participant paid for the shares (if anything) over the amount (if any) realized in connection with the forfeiture.

RSUs.The grant of a restricted stock unit does not itself generally result in taxable income. Instead, the participant is generally taxed upon vesting and settlement (and a corresponding deduction is generally available to the Company), unless he or she has made a proper election to defer receipt of the shares (or cash if the award is cash settled) under Section 409A of the Code. If the shares delivered are restricted for tax purposes, the participant will instead be subject to the rules described above for restricted stock.

Section 162(m). Compensation resulting from awards made under the 2015 Equity Incentive Plan to our chief executive officer, our chief financial officer and certain other current and former executive officers, to the extent such individual’s aggregate compensation from the Company exceeds $1 million in a given year, generally will benon-deductible to the Company under Section 162(m) of the Code. While our Compensation Committee intend to consider the potential impact of Section 162(m) on awards granted under the plan, we will retain discretionary authority to provide compensation that is not deductible in whole or in part under Section 162(m).

Certain Change in Control Payments. Under Section 280G of the Code, the vesting or accelerated exercisability of options or the vesting and payments of other awards in connection with a change in control of a corporation may be required to be valued and taken into account in determining whether participants have received compensatory payments, contingent on the change in control, in excess of certain limits. If these limits are exceeded, a substantial portion of amounts payable to the participant, including income recognized by law,reason of the grant, vesting or exercise of awards may be subject to an additional 20% federal tax and may benon-deductible to the Company. However, as described above, the 2015 Equity Incentive Plan provides any Payment would be reduced so that no portion of the Payment isnon-deductible under Section 280G of the Code unless, after payment of all applicable taxes, including any excise taxes, the amount the participant would receive is greater than the Reduced Amount.

Plan Benefits

Grants under the 2015 Equity Incentive Plan, as proposed to be amended, will be made at the discretion of the Compensation Committee. Because we cannot presently determine the number of Shares underlying, or the timing, types, exercise/base prices or vesting and other provisions of, grants to be made to participants under the 2015 Equity Incentive Plan, as proposed to be amended, it is not possible to determine the value of benefits that may be obtained by directors, executive officers and other employees under the 2015 Equity Incentive Plan.

Vote Required and Board of Directors’ Recommendation

Approval of the amendment to the 2015 Equity Incentive Plan to increase the number of Shares reserved for issuance under that plan by 825,000 Shares requires the affirmative vote of the holders of at least 66 2/3%a majority of the Shares present in person or represented by proxy and voting power ofon the Corporation’s then outstanding shares of stock entitled to vote generally in the election of directors, voting together as a single class, shall be required to alter, amend, add to or repeal, or to adopt any provision inconsistent with, Sections 5.3, 5.4 and 5.6 of Article V, Article XI hereof or this provision of this Article XII.

If stockholders approve this proposal, the Company will file this Charter amendment incorporating the approved changes with the Secretary of State of the State of Delaware promptly after the Annual Meeting, and the amendment will become effective upon filing. If stockholders do not approve this proposal, we will not file this Charter amendment and our Charter will continue in its current form, subject to amendments required to give effect to any of the other proposals that are approved.

A copy of the Amended and Restated Certificate of Incorporation giving effect to this proposal and the other proposals recommended in this proxy statement (assuming all such proposals are approved) is attached to this proxy statement as Appendix A.

Vote Required

Approval of this Charter amendment requires the affirmative vote of at least 66 2/3% of the voting power of the Company’s then outstanding shares of stock entitled to vote generally in the election of directors.matter. Abstentions and brokernon-votes will not be counted as shares voting against such matter.

Board of Directors’ Recommendation

YOUR BOARD UNANIMOUSLY RECOMMENDS THAT

YOU VOTE “FOR” APPROVAL OF THE CHARTER AMENDMENT TO ELIMINATE THE

SUPERMAJORITY REQUIREMENT FOR AMENDMENTS TO CERTAIN PROVISIONS OF THE CHARTER.

PROPOSAL 3: AMENDMENT TO PERMIT HOLDERS OF AT LEAST A MAJORITY OF OUR COMMON STOCK TO CALL SPECIAL MEETINGS OF THE STOCKHOLDERS

We are seeking stockholderon that matter and accordingly will have no effect on the approval to amend our Charter to allow holders of at least a majority of the voting power of the Company’s then outstanding shares of stock entitled to vote generally in the election of directors to call a special meeting.

Background

Our Charter currently only allows for our stockholders to call a special meeting of stockholders if Avista owns at least a majority of our outstanding shares of common stock. Since Avista no longer beneficially owns any of our common stock, this effectively means that our stockholders currently cannot call a special meeting.

The current provision in our Charter reflects the share ownership positions of Avista when we went public in June 2015. In addition to the other changes to the Charter that are contained in Proposals 2 and 4, we also reviewed the current provision on special meetings of stockholders. Our Board has determined that it is a positive corporate governance measure to allow a majority of our stockholders to have the ability to call a special meeting of the stockholders.

Amendment

If approved, the amendment would amend Section 6.5 of the Charter as follows:

6.5Special Meetings of Stockholders. Subject to the terms of any one or more series or classes of Preferred Stock, special meetings of the stockholders of the Corporation, for any purpose or purposes, may be called at any time,but only by or at the direction of a majority of the directors then in office, the Chairperson of the Board or the Chief Executive Officer of the Corporation, except as otherwise provided in the Corporation’s Bylaws.In addition, holders of a majority of the then outstanding shares of common stock of the Corporation may call a special meeting of the stockholders of the Corporation. The ability of stockholders to call a special meeting of stockholders is specifically denied from and after the time that Avista beneficially owns (as shall be determined in accordance with Rules13d-3 and13d-5 of the Exchange Act) less than 50.1% of the then outstanding shares of the Common Stock.

If stockholders approve this proposal, the Company will file this Charter amendment incorporating the approved changes with the Secretary of State of the State of Delaware promptly after the Annual Meeting, and the amendment will become effective upon filing. If stockholders do not approve this proposal, we will not file this Charter amendment and our Charter will continue in its current form, subject to amendments required to give effect to any of the other proposals that are approved.

A copy of the Amended and Restated Certificate of Incorporation giving effect to this proposal and the other proposals recommended in this proxy statement is attached to this proxy statement as Appendix A.

Vote Required

Approval of this Charter amendment requires the affirmative vote of at least a majority of the voting power of the Company’s then outstanding shares of stock entitled to vote generally in the election of directors. Abstentions and brokernon-votes will be counted as shares voting against such matter.Proposal 2.

Board of Directors’ Recommendation

THE BOARD OF DIRECTORS RECOMMENDS THAT

YOU VOTE “FOR” APPROVAL OF THE PROPOSAL TO AMEND THE ALLOW2015 EQUITY  INCENTIVE PLAN

A MAJORITYTO INCREASE THE NUMBER OF STOCKHOLDERS TO CALL A SPECIAL MEETING OF STOCKHOLDERS.SHARES RESERVED FOR ISSUANCE THEREUNDER BY 825,000 SHARES.

PROPOSAL 4: AMENDMENT TO DELETE VARIOUS PROVISIONS

RELATED TO OUR FORMER SPONSOR THAT ARE NO LONGER APPLICABLE

We are seeking stockholder approval to amend our Charter to approve the following additional changes to our Charter:

Our Charter currently contains several provisions related to “Avista,” which term is defined in our Charter to mean Avista Capital Partners, LP, Avista Capital Partners (Offshore) LP and ACP LanternCo-Invest LLC and their respective affiliates. These provisions:

allow for our stockholders to act by written consent if Avista owns at least a majority of our outstanding shares of common stock;

provide first resort indemnification and advancement of expenses to directors that were partners or employees of Avista;

provide that the Company shall not be governed by Section 203 of the Delaware General Corporation Law while Avista owns at least 5% of the outstanding shares of common stock of the Company; and

renounce any interest or expectancy in any business opportunities presented to Avista, even if the opportunity is one that we might have reasonably pursued, and that Avista will not be liable to us or our stockholders for breach of any duty by reason of any such activities, unless, in the case of any person who is a director or officer of our company, such business opportunity is expressly offered to such director or officer in writing solely in his or her capacity as a director or officer of our company.

Background

The provisions detailing rights, privileges and protections of Avista are no longer applicable, since, as of August 14, 2017, Avista no longer beneficially owned the number of shares of our common stock required by these provisions. In addition, our Board believes the current provisions related to Avista are potentially confusing and should be removed.

After consideration of the foregoing, the Board has approved, and recommends to the stockholders that they adopt, the proposed amendment.

Amendment

If approved, the amendment would amend the Charter as follows:

Section 6.3 would be revised as follows:

6.3No Stockholder Action by Consent. Subject to the terms of any one or more series or classes of Preferred Stock,from and after the time that Avista Capital Partners, LP, Avista Capital Partners (Offshore) LP and ACP LanternCo-Invest LLC and their respective affiliates (collectively, “Avista”) collectively, beneficially own (as shall be determined in accordance with Rules13d-3 and13d-5 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) less than 50.1% of the then outstanding shares of the Common Stock, then any action required or permitted to be taken by the stockholders of the Corporation must be effected at a duly called annual or special meeting of such stockholders of the Corporation and may not be effected by any written consent in lieu of a meeting by such stockholders, unless the directors then in office unanimously recommend that such action be permitted to be taken by written consent of stockholders. In the event that an action is permitted to be taken by written consent of stockholders in accordance with this Section 6.3 and a signed written consent(s) (and any related revocation(s)) is (are) delivered to the Corporation in the manner provided by applicable law, the Corporation may engage independent inspectors of elections for the purpose of performing promptly a ministerial review of the validity of the consents and revocations. In the event

the Corporation engages such inspectors, then for the purpose of permitting the inspectors to perform such review no action by written consent in lieu of a meeting of stockholders shall be effective until such inspectors have completed their review, determined that the requisite number of valid and unrevoked consents delivered to the Corporation in accordance with applicable law have been obtained to take the action specified in the consents, and certified such determination for entry in the records of the Corporation kept for the purpose of recording the proceedings of meetings of stockholders, and such action by written consent will take effect as of the date and time of the certification of the written consents and will not relate back to the date the written consents to take action were delivered to the Corporation.For purposes of this Section 6.3 and Article XI below, “affiliates” shall mean,with respect to a given person, any person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the person specified; provided, however, that for the purposes of this definition none of (i) the Corporation, its subsidiaries and any entities (including corporations, partnerships, limited liability companies or other persons) in which the Corporation or its subsidiaries hold, directly or indirectly, an ownership interest, on the one hand, or (ii) Avista and its affiliates (excluding the Corporation, its subsidiaries or other entities described in clause (i)), on the other hand, shall be deemed to be “affiliates” of one another. For purposes of this definition, “control” (including, with correlative meanings, the terms “controlled by” and “under common control with”) as applied to any person means the possession, direct or indirect, of the power to direct or cause the direction of the management policies of a person, whether through the ownership of voting securities, by contract, or otherwise.

Section 7.2(c) would be deleted in its entirety:

(c) Avista Directors. The Corporation hereby acknowledges that the directors that are partners or employees of Avista (“Avista Directors”) have certain rights to indemnification, advancement of expenses and/or insurance provided by Avista and certain affiliates that, directly or indirectly, (i) are controlled by, (ii) control or (iii) are under common control with, Avista (collectively, the “Fund Indemnitors”). The Corporation hereby agrees (i) that it is the indemnitor of first resort (i.e., its obligations to the Avista Directors are primary and any obligation of the Fund Indemnitors to advance expenses or to provide indemnification for the same expenses or liabilities incurred by the Avista Directors are secondary), (ii) that it shall be required to advance the full amount of expenses incurred by the Avista Directors and shall be liable for the full amount of all expenses, judgments, penalties, fines and amounts paid in settlement to the extent legally permitted and as required by the terms of this paragraph and the bylaws of the Corporation from time to time (or any other agreement between the Corporation and the Avista Directors), without regard to any rights the Avista Directors may have against the Fund Indemnitors, and (iii) that it irrevocably waives, relinquishes and releases the Fund Indemnitors from any and all claims against the Fund Indemnitors for contribution, subrogation or any other recovery of any kind in respect thereof. The Corporation further agrees that no advancement or payment by the Fund Indemnitors on behalf of the Avista Directors with respect to any claim for which the Avista Directors have sought indemnification from the Corporation shall affect the foregoing and the Fund Indemnitors shall have a right of contribution and/or to be subrogated to the extent of such advancement or payment to all of the rights of recovery of the Avista Directors against the Corporation. The Corporation and the Avista Directors agree that the Fund Indemnitors are express third party beneficiaries of the terms of this paragraph.

Section 7.8(a) would be revised as follows:

7.8Exception to Rights of Indemnification and Advancement. Notwithstanding any provision in this Article VII, the Corporation shall not be obligated by this Article VII to make any indemnity or advancement in connection with any claim made against an Indemnitee:

(a)subject to Section 7.2(c) for which payment has actually been made to or on behalf of such Indemnitee under any insurance policy or other indemnity provision,except with respect to any excess beyond the amount paid under any insurance policy or other indemnity provision; or

Section 10.1 would be revised as follows:

10.1 Section 203 of the DGCL. The Corporation shallnotbe governed by Section 203 of the DGCL (“Section 203”), and the restrictions contained in Section 203 shallnotapply to the Corporation, until the moment in time immediately following the time at which both of the following conditions exist (if ever): (A) Section 203 by its terms would, but for the provisions of this Article X, apply to the Corporation; and (B) there occurs a transaction following the consummation of which Avista owns (as defined in Section 203) less than 5% of the voting power of the Corporation’s then outstanding shares of voting stock (as defined in Section 203) of the Corporation, and the Corporation shall thereafter be governed by Section 203 if and for so long as Section 203 by its terms shall apply to the Corporation.

Sections 10.2 and 10.3 would be deleted in their entirety:

10.2 Corporate Opportunities. To the fullest extent permitted by Section 122(17) of the DGCL and except as may be otherwise expressly agreed in writing by the Corporation and Avista, the Corporation, on behalf of itself and its subsidiaries, renounces any interest or expectancy of the Corporation and its subsidiaries in, or in being offered an opportunity to participate in, business opportunities, which are from time to time presented to Avista or any of its managers, officers, directors, agents, stockholders, members, partners, affiliates and subsidiaries (other than the Corporation and its subsidiaries), even if the opportunity is one that the Corporation or its subsidiaries might reasonably be deemed to have pursued or had the ability or desire to pursue if granted the opportunity to do so, and no such person or entity shall be liable to the Corporation or any of its subsidiaries for breach of any fiduciary or other duty, as a director or officer or otherwise,by reason of the fact that such person or entity pursues or acquires such business opportunity, directs such business opportunity to another person or entity or fails to present such business opportunity, or information regarding such business opportunity, to the Corporation or its subsidiaries unless, in the case of any such person who is a director or officer of the Corporation, such business opportunity is expressly offered to such director or officer in writing solely in his or her capacity as a director or officer of the Corporation. Neither the alteration, amendment, addition to or repeal of this Article X, nor the adoption of any provision of this Amended and Restated Certificate of Incorporation (including any certificate of designations relating to any series or class of Preferred Stock) inconsistent with this Article X, shall eliminate or reduce the effect of this Article X in respect of any business opportunity first identified or any other matter occurring, or any cause of action, suit or claim that, but for this Article X, would accrue or arise, prior to such alteration, amendment, addition, repeal or adoption.

10.3 Amendments to Article X. Notwithstanding anything to the contrary in this Amended and Restated Certificate of Incorporation or the Bylaws of the Corporation, for as long as Avista beneficially owns shares of stock of the Corporation representing at least 5% of the Corporation’s then outstanding shares entitled to vote generally in the election of directors, this Article X shall not be amended, altered or revised, including by merger or otherwise, without Avista’s prior written consent.

If stockholders approve this proposal, the Company will file these Charter amendments incorporating the approved changes with the Secretary of State of the State of Delaware promptly after the Annual Meeting, and the amendments will become effective as of the date of stockholder approval. If stockholders do not approve this proposal, we will not file these Charter amendments and our Charter will continue in its current form, subject to amendments required to give effect to any of the other proposals that are approved.

A copy of the Amended and Restated Certificate of Incorporation giving effect to this proposal and the other proposals recommended in this proxy statement is attached to this proxy statement as Appendix A.

Vote Required

Approval of this Charter amendment requires the affirmative vote of at least a majority of the voting power of the Company’s then outstanding shares of stock entitled to vote generally in the election of directors. Abstentions and brokernon-votes will be counted as shares voting against such matter.

Board of Directors’ Recommendation

THE BOARD OF DIRECTORS RECOMMENDS THAT

YOU VOTE “FOR” APPROVAL OF THE PROPOSAL TO REMOVE INAPPLICABLE PROVISIONS

TO OUR CHARTER RELATED TO OUR FORMER SPONSOR.

PROPOSAL 5:3: RATIFICATION OF INDEPENDENT AUDITOR

The Audit Committee has appointed Deloitte & Touche LLP (“Deloitte”) as our independent registered public accounting firm for the fiscal year ending December 31, 2018.2019. Although stockholder ratification of the appointment of Deloitte is not required by law, we are submitting the appointment to our stockholders for ratification as a matter of good corporate governance.

Representatives of Deloitte are expected to attend the Annual Meeting, will have an opportunity to make a statement if they desire to do so and are expected to be available to respond to appropriate questions.

Vote Required

The ratification of the appointment of Deloitte requires the affirmative vote of a majority of the votes cast at the Annual Meeting. If stockholders do not ratify the appointment of Deloitte, then the Audit Committee will reconsider the appointment. Even if stockholders ratify the appointment of Deloitte, the Audit Committee retains the discretion to appoint a different independent auditor at any time if it determines that such a change would be in the best interests of the Company and its stockholders.

Board of Directors’ Recommendation

THE BOARD OF DIRECTORS RECOMMENDS THAT

YOU VOTE “FOR” THE RATIFICATION OF DELOITTE AS OUR INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM FOR THE FISCAL YEAR ENDING DECEMBER 31, 2018.2019.

Deloitte Fees

The following table presents aggregate fees billed to the Company for services rendered by Deloitte during the years ended December 31, 20172018 and 2016:2017:

 

  Year Ended December 31,   Year Ended December 31, 

(in thousands)

  2017   2016 
  2018   2017 

Audit fees(1)

  $1,059,355   $1,212,655   $1,331,500   $1,059,355 

Audit-related fees(2)

   196,500    232,000    —      196,500 

Tax fees(3)

   —      133,595    —      —   

All other fees(4)

   —      —      2,615    —   
  

 

   

 

   

 

   

 

 

Total

  $1,255,855   $1,578,250   $1,334,115   $1,255,855 
  

 

   

 

   

 

   

 

 

 

(1)

Audit fees are fees related to professional services rendered in connection with the audit of our annual financial statements, the reviews of the interim financial statements included in each of our quarterly reports on Form10-Q, and other professional services provided by our independent registered public accounting firm in connection with statutory or regulatory filings or engagements. All other fees consist primarily of the reimbursement of expenses associated with completion of services noted above.

(2)

Audit-related fees are fees related to services performed in connection with our primary and secondary public offerings, including comfort letters, consents and review of documents filed with the SEC.

(3)

Tax fees are fees billed for professional services for tax compliance, tax advice and tax planning services.

(4)

All other fees comprised fees billed for professional services relating to regulatory consulting and a software subscription for an accounting and research tool.

Audit CommitteePre-Approval Policies

The services provided by Deloitte werepre-approved by the Audit Committee. The Audit Committee has considered whether the provision of the services described above is compatible with maintaining the independence of the independent registered public accounting firm and has determined that the provision of these services has not adversely affected Deloitte’s independence. The Audit Committee approved 100% of the services covered by audit fees, audit-related fees, tax fees and all other similar fees.

AUDIT COMMITTEE REPORT

The information contained in this report will not be deemed “soliciting material” or otherwise considered “filed” with the SEC or subject to the liabilities of Section 18 of the Exchange Act, and suchthis information will not be incorporated by reference into any future filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that the Company specifically incorporates suchthis information by reference in suchthat filing.

The Audit Committee is responsible primarily for assisting the Board of Directors in fulfilling its legal and fiduciary obligations with respect to matters involving the accounting, auditing, financial reporting, internal control and legal compliance functions of the Company and its subsidiaries. The Audit Committee assists in the Board of Directors’Board’s oversight of the integrity of the Company’s financial statements, the Company’s compliance with legal and regulatory requirements, the Company’s independent auditors’ qualifications and independence and the performance of the Company’s independent auditors.

The Audit Committee currently consists of Messrs. Leno (Chairperson), Clemmer and Pruden and Dr. Robertson, each of whom is independent under Nasdaq and SEC rules.

The Company’s management is responsible for the preparation and presentation of the Company’s financial statements, the effectiveness of internal control over financial reporting and procedures that are reasonably designed to assure compliance with accounting standards and applicable laws and regulations. The Company’s independent registered public accounting firm, Deloitte & Touche LLP (“Deloitte”), is responsible for performing an independent audit of the Company’s financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”). The Audit Committee does not itself prepare financial statements or perform audits, and its members are not auditors or certifiers of the Company’s financial statements or disclosures.

The Audit Committee has reviewed and discussed the audited financial statements for the year ended December 31, 20172018 with the Company’s management and Deloitte. The Audit Committee has discussed with the independent auditors the matters required to be discussed by the statement on Auditing Standards No. 61,13001, as amended (AICPA, Professional Standards, Vol. 1. AU section 380)“Communications with Audit Committees”, as adopted by the PCAOB in Rule 3200T.PCAOB.

The Audit Committee has received the written disclosures and the letter from Deloitte required by applicable requirements of the PCAOB regarding Deloitte’s communications with the Audit Committee concerning independence and has discussed with Deloitte its independence.

Based on suchthat review, discussions and disclosure, the Audit Committee recommended to the Company’s Board of Directors that the financial statements referred to above be included in the Company’s Annual Report on Form10-K for the fiscal year ended December 31, 2017.2018.

Audit Committee

Samuel Leno (Chair)

James Clemmer

Gary Pruden*

Dr. Frederick Robertson

*Mr. Pruden was appointed to the Audit Committee in February 2018, after the Company’s Annual Report on Form10-K was filed with the SEC.

ADDITIONAL INFORMATION

Procedures for Submitting Stockholder Proposals

Stockholder proposals intended to be presented at the 20192020 Annual Meeting of Stockholders (the “2019“2020 Annual Meeting”), pursuant to Exchange Act Rule14a-8 must be delivered to the Corporate Secretary at our principal executive offices no later than November 16, 20182019 in order to be included in the our proxy materials for that meeting. SuchThese proposals must also comply with all applicable provisions of Exchange Act Rule14a-8 and our bylaws.

Under our bylaws, stockholder proposals submitted for consideration at our 20192020 Annual Meeting, but not submitted for inclusion in our proxy materials pursuant to Exchange Act Rule14a-8, including nominations for candidates for election as directors, must be delivered to our Corporate Secretary at our principal executive offices not earlier than the close of business on December 28, 201826, 2019 and not later than the close of business on January 26, 2019.25, 2020. However, if our 20192020 Annual Meeting occurs more than 30 days before or 60 days after April 26, 2019,24, 2020, proposals must be delivered not less than 90 days or more than 120 days before the meeting date or, if the first public announcement of the meeting date is less than 100 days prior to the annual meeting date, then no later than the 10th day following the date of the first public announcement of the meeting date.

Director nominations for consideration at any special meeting of stockholders called for the purpose of electing directors must be delivered on or beforeno earlier than the close of business on the 120th day prior to the special meeting date and not later than the close of business on the latest of the 90th prior to the special meeting or the 10th day following the date of the first public announcement of the meeting date.

Stockholder proposals and nominations must include all required information concerning the stockholder and the proposal or nominee set forth in our bylaws.

Appendix A

[Amended and Restated Certificate of Incorporation]

PROPOSED AMENDED AND RESTATED CERTIFICATE OF INCORPORATION

OF

LANTHEUS HOLDINGS, INC.

With amendments2015 Equity Incentive Plan, as amended to date and as proposed to be effective after the Annual Meeting to be held on April 26, 2018amended

 

Page A-1


AMENDED AND RESTATED

CERTIFICATE OF INCORPORATION

OF LANTHEUS HOLDINGS, INC.

(Under Sections 242 and 245 of the

Delaware General Corporation Law)Appendix A

Lantheus Holdings, Inc. (the

2015 Equity Incentive Plan

1.Purpose. The purpose of the Lantheus Holdings, Inc. 2015 Equity Incentive Plan is to further align the interests of eligible participants with those of the Company’s stockholders by providing long-term incentive compensation opportunities tied to the performance of the Company and its Common Stock. The Plan is intended to advance the interests of the Company and increase stockholder value by attracting, retaining and motivating key personnel upon whose judgment, initiative and effort the successful conduct of the Company’s business is largely dependent.

2.Definitions. Wherever the following capitalized terms are used in the Plan, they shall have the meanings specified below:

CorporationAccounting Firm) shall have the meaning set forth in Section 15.8(b)(i) hereof.

Award” means an award of a Stock Option, Stock Appreciation Right, Restricted Stock Award, Restricted Stock Unit, Cash Performance Award or Stock Award granted under the Plan.

Award Agreement” means a notice or an agreement entered into between the Company and a Participant setting forth the terms and conditions of an Award granted to a Participant as provided in Section 15.2 hereof.

Avista Entity” means Avista Capital Partners, L.P., a corporation organized and existingDelaware limited partnership, Avista Capital Partners (Offshore), L.P., a Delaware limited partnership, orACP-LanternCo-Invest LLC, a Delaware limited liability company.

Beneficial Owner” shall have the meaning ascribed to such term in Rule13d-3 under the General Corporation Law ofExchange Act.

Board” means the State of Delaware, as amended (the “DGCL”), does hereby certify as follows:

FIRST. The Corporation filed its original Certificate of Incorporation with the Secretary of State of the State of Delaware on November 30, 2007 under the name ACP Lantern Holdings, Inc., and the Corporation amended and restated its Certificate of Incorporation on December 10, 2012, further amended its amended and restated Certificate of Incorporation on June 24, 2014, and further amended and restated that amended and restated Certificate of Incorporation on June 25, 2015 (as amended to date, the “Previous Certificate of Incorporation”).

SECOND. The Board of Directors of the Corporation (the Company.

Board of DirectorsBusiness Combination) adopted resolutions proposing shall have the meaning set forth in Section 12.2(b) hereof.

Cash Performance Award” means an Award that is denominated by a cash amount to amendan Eligible Person under Section 10 hereof, payable based upon the attainment ofpre-established business and/or individual Performance Goals over a specified performance period and restatesubject to such conditions, in each case, as are set forth in the Previous Certificate of Incorporation,Plan and the stockholdersapplicable Award Agreement.

Cause” shall have the meaning set forth in Section 13.2(b) hereof.

Change in Control” shall have the meaning set forth in Section 12.2 hereof.

Chosen Court” shall have the meaning set forth in Section 15.16 hereof.

Code” means the Internal Revenue Code of 1986, as amended.

Committee” means (i) the Compensation Committee of the Corporation have duly approved the amendment and restatement.

THIRD. Pursuant to Sections 242 and 245Board, (ii) such other committee of the DGCL, this Amended and Restated Certificate of Incorporation restates, integrates and further amendsBoard appointed by the Previous Certificate of IncorporationBoard to administer the Plan or, (iii) subject to the terms of the Corporation to read in its entirety as follows:Plan, the Board.

ARTICLE I

1.1Name. The name ofCommon Stock” means the Corporation is:

Lantheus Holdings, Inc.

ARTICLE II

2.1Address. The address of the Corporation’s registered office in the State of Delaware is c/o Corporation Service Company, 2711 Centerville Road, Suite 400, in the City of Wilmington, County of New Castle 19808. The name of its registered agent at such address is Corporation Service Company.

ARTICLE III

3.1Purpose. The purpose of the Corporation is to engage in any lawful act or activity for which corporations may be organized under the DGCL. Without limiting the generality of the foregoing, the Corporation shall have all of the powers conferred on corporations by the DGCL and other applicable law.

ARTICLE IV

4.1Authorized Shares. The total number of shares of stock which the Corporation shall have authority to issue is two hundred seventy five million (275,000,000) shares, of which (i) two hundred fifty million (250,000,000) shares shall be shares ofCompany’s common stock, par value $0.01 per share (the “Common Stock”), andshare.

 

Page A-2


Company” means Lantheus Holdings, Inc., a Delaware corporation, and any successor thereto.

Date of Grant” means, with respect to any Award under the Plan, the date on which such Award is granted by the Committee or such later date as the Committee may specify in the resolutions comprising the corporate action constituting such grant by the Company of such Award to be the effective date of an Award, in each case, in accordance with Section 5.4 hereof.

Disability” means, unless otherwise set forth in an Award Agreement,

(i) if a Participant has an effective employment agreement or service agreement with the Company or a Subsidiary that defines “Disability” or a like term, the meaning set forth in such agreement at the time of the Participant’s termination of Service, or,

(ii) in the absence of such an effective employment or service agreement or definition, a Participant’s physical or mental illness, injury or infirmity which is reasonably likely to prevent and/or prevents such Participant from performing his or her essential job functions for a period of (A) ninety (90) consecutive calendar days or (B) an aggregate of one hundred twenty five million (25,000,000) shares shall be shares(120) calendar days out of preferred stock, par value $0.01 per share (the “Preferred Stock”). any consecutive twelve (12) month period.

Notwithstanding anything to the contrary contained herein, and solely for purposes of any Incentive Stock Option, “Disability” shall mean a permanent and total disability (within the rights and preferencesmeaning of Section 22(e)(3) of the Common StockCode).

EBITDA shall at all times be subject tohave the rights and preferences of the Preferred Stock as may bemeaning set forth in one or more certificates of designations filed with the Secretary of State of the State of Delaware from time to time in accordance with the DGCL and this Amended and Restated Certificate of Incorporation. The number of authorized shares of Preferred Stock and Common Stock may be increased or decreased (but not below the number of shares thereof then outstanding) from time to time by the affirmative vote of the holders of at least a majority of the voting power of the Corporation’s then outstanding shares of stock entitled to vote thereon, voting together as a single class, irrespective of the provisions of Section 242(b)(2) of the DGCL (or any successor provision thereto), and no vote of the holders of any of the Common Stock or the Preferred Stock voting separately as a class or series shall be required therefor.10.4 hereof.

4.2Common Stock. The Common StockEffective Date shall have the following powers, designations, preferences and rights and qualifications, limitations and restrictions:meaning set forth in Section 16.1 hereof.

(a)Voting. Each holder of record of shares of Common Stock shall be entitled to vote at all meetingsEligible Person” means any person who is an employee,Non-Employee Director, consultant or other personal service provider of the stockholdersCompany or any of its Subsidiaries.

Exchange Act” means the Corporation and shall have one vote for eachSecurities Exchange Act of 1934, as amended.

Fair Market Value” means, with respect to a share of Common Stock heldas of recorda given date of determination hereunder, unless otherwise determined or provided by the Committee in the circumstances, the closing price, as reported on The NASDAQ Global Market or other principal exchange on which the Common Stock is then listed on such date, or, if the Common Stock was not traded on such date, then on the next preceding trading day that the Common Stock was traded on such exchange, as reported by such holder of recordresponsible reporting service as of the applicable record date on any matter that is submitted to a vote of the stockholders of the Corporation; provided,Committee may select. The Committee may, however, that to the fullest extent permitted by law, holders of Common Stock, as such, shall have no voting powerprovide with respect to and shall not be entitled to vote on, any amendment to this Amended and Restated Certificate of Incorporation (including any certificate of designations relating to any series or class of Preferred Stock) that relates solely to the terms of one or more outstanding series or class(es) of Preferred Stock if the holders of such affected series or class(es) of Preferred Stock are entitled, either separately or together with the holders of one or more other such series or class(es), to vote thereon pursuant to applicable law or this Amended and Restated Certificate of Incorporation (including any certificate of designations relating to any series or class of Preferred Stock); and provided furtherAwards that the BoardFair Market Value shall equal the average of Directors may issue or grant shares of Common Stock that are subject to vesting or forfeiturethe high and that restrict or eliminate voting rights with respect to such shares until any such vesting criteria is satisfied or such forfeiture provisions lapse.

(b)Dividends and Distributions. Subject to the prior rights of all classes or series of stock at the time outstanding having prior rightslow trading price, as to dividendsreported on The NASDAQ Global Market or other distributions, the holders of shares of Common Stock shall be entitled to receive such dividends and other distributions in cash, property, or stock as may be declaredprincipal exchange on which the Common Stock is then listed on the applicable date of determination, or, if the Common Stock was not traded on such date, then on the next preceding trading day that the Common Stock was traded on such exchange, as reported by such responsible reporting service as the Committee may select. If the Common Stock is not listed on any such exchange, “Fair Market Value” shall be such value as determined by the Board or the Committee in its discretion and, to the extent necessary, shall be determined in a manner consistent with Section 409A of Directorsthe Code and the regulations thereunder.

Forfeiture Event” shall have the meaning set forth in Section 13.2(a) hereof.

GAAP” means generally accepted accounting principles in the United States, as in effect from time to time out of assets or funds of the Corporation legally available therefor and shall share equally on a per share basis in all such dividends and other distributions.

(c)Liquidation, etc. Subject to the prior rights of creditors of the Corporation and the holders of all classes or series of stock at the time outstanding having prior rights as to distributions upon liquidation, dissolution or winding up of the Corporation, in the event of any liquidation, dissolution or winding up of the Corporation, either voluntary or involuntary, the holders of shares of Common Stock shall be entitled to receive their ratable and proportionate share of the remaining assets of the Corporation.

(d) No holder of shares of Common Stock shall have cumulative voting rights.

(e) No holder of shares of Common Stock shall be entitled to preemptive or subscription rights pursuant to this Amended and Restated Certificate of Incorporation.

4.3Preferred Stock. The Board of Directors is hereby expressly authorized, to the fullest extent as may now or hereafter be permitted by the DGCL, by resolution or resolutions, at any time and from time to time, to provide for the issuance of a share or shares of Preferred Stock in one or more series or classes and to fix for each such series or class (i) the number of shares constituting such series or class and the designation of such series or class, (ii) the voting powers (if any), whether full or limited, of the shares of such series or class, (iii) the powers, preferences, and relative, participating, optional or other special rights of the shares of each such series or class, and (iv) the qualifications, limitations, and restrictions thereof, and to cause to be filed with the Secretary of Statetime.

 

Page A-3


Incentive Stock Option” means a Stock Option granted under Section 6 hereof that is intended to meet the requirements of Section 422 of the State of DelawareCode and the regulations thereunder.

NetAfter-Tax Receipt” shall have the meaning set forth in Section 15.8(b)(iv)(B) hereof.

Non-Employee Director” means a certificate of designation with respect thereto. Without limiting the generality of the foregoing, to the fullest extent as may now or hereafter be permitted by the DGCL, the authoritymember of the Board of Directors with respect to the Preferred Stock and any series or class thereof shall include, butwho is not be limited to, determinationan employee of the following:

(a) the number of shares constituting any seriesCompany or class and the distinctive designation of that series or class;

(b) the dividend rate or rates on the shares of any series or class, the terms and conditions upon which and the periods in respect of which dividends shall be payable, whether dividends shall be cumulative and, if so, from which date or dates, and the relative rights of priority, if any of payment of dividends on shares ofits Subsidiaries.

Nonqualified Stock Option” means a Stock Option granted under Section 6 hereof that series or class;is not an Incentive Stock Option.

(c) whether any series or classOutstanding Company Voting Securities shall have voting rights,the meaning set forth in addition to the voting rights provided by applicable law, and, if so, the number of votes per share and the terms and conditions of such voting rights;Section 12.2(a) hereof.

(d) whether any series or classOverpayment shall have conversion privileges and, if so, the terms and conditionsmeaning set forth in Section 15.8(b)(iii) hereof.

Parachute Payment Ratio” shall have the meaning set forth in Section 15.8(b)(iv)(C) hereof.

Participant” means any Eligible Person who holds an outstanding Award under the Plan.

Payment” shall have the meaning set forth in Section 15.8(b)(i) hereof.

Performance Awards” shall have the meaning set forth in Section 10.2 hereof.

Performance Criteria” shall have the meaning set forth in Section 10.4 hereof.

Performance Goals” shall have the meaning set forth in Section 10.5 hereof.

Performance Stock Unit” means a Restricted Stock Unit denominated as a Performance Stock Unit under Section 9.2 hereof, to be paid or distributed based upon the attainment of conversion, including provision for adjustmentpre-established business and/or individual Performance Goals over a specified performance period.

Person” shall have the meaning ascribed to such term in Section 3(a)(9) of the conversion rate upon such eventsExchange Act and used in Sections 13(d) and 14(d) thereof, including a “group” as defined in Section 13(d) thereof.

Plan” means the Board of Directors shall determine;Lantheus Holdings, Inc. 2015 Equity Incentive Plan as set forth herein, as may be amended and/or amended and restated from time to time.

(e) whether the shares of any series or class shall be redeemable and, if so, the terms and conditions of such redemption, including the date or dates upon or after which they shall be redeemable and the amount per share payable in case of redemption, which amount may vary under different conditions and at different redemption dates;

(f) whether any series or classPolicy shall have the meaning set forth in Section 13.3(b) hereof.

Reduced Amount” shall have the meaning set forth in Section 15.8(b)(iv)(A) hereof.

Restricted Stock Award” means a sinking fund for the redemption or purchasegrant of shares of Common Stock to an Eligible Person under Section 8 hereof that series or class,are issued subject to such vesting and if so,transfer restrictions as the termsCommittee shall determine, and amount of such sinking fund;

(g) the rights of the shares of any series or classother conditions, in each case, as are set forth in the event of voluntary or involuntary liquidation, dissolution or winding up of the Corporation,Plan and the relative rightsapplicable Award Agreement.

Restricted Stock Unit” means a contractual right granted to an Eligible Person under Section 9 hereof representing notional unit interests equal in value to a share of priority, if any, of payment of shares of that seriesCommon Stock to be paid or class;distributed at such times, and

(h) any other powers, preferences, rights, qualifications, limitations, and restrictions of any series or class.

The powers, preferences and relative, participating, optional and other special rights of subject to such conditions, in each case, as set forth in the shares of each series or class of Preferred Stock,Plan and the qualifications, limitations or restrictions thereof, if any, may differ from those of any and all other series or classes at any time outstanding. Unless otherwise provided inapplicable Award Agreement.

Service” means a Participant’s employment with the resolution or resolutions providing for the issuance of such series or class of Preferred Stock, shares of Preferred Stock, regardless of series or class, which shall be issued and thereafter acquired by the Corporation through purchase, redemption, exchange, conversion or otherwise shall return to the status of authorized but unissued Preferred Stock, without designation as to series or class of Preferred Stock, and the Corporation shall have the right to reissue such shares.

4.4Power to Sell and Purchase Shares. Subject to the requirements of applicable law, the Corporation shall have the power to issue and sell allCompany or any part ofSubsidiary or a Participant’s service as aNon-Employee Director, consultant or other service provider with the Company or any shares of any class of stock herein or hereafter authorized to such persons, and for such consideration and for such corporate purposes,Subsidiary, as the Board of Directors shall from time to time, in its discretion, determine, whether or not greater consideration could be received upon the issue or sale of the same number of shares of another class, and as otherwise permitted by law. Subject to the requirements of applicable law, the Corporation shall have the power to purchase any shares of any class of stock herein or hereafter authorized from such persons, and for such consideration and for such corporate purposes, as the Board of Directors shall from time to time, in its discretion, determine, whether or not less consideration could be paid upon the purchase of the same number of shares of another class, and as otherwise permitted by law.applicable.

 

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ARTICLE VShare Reserve” shall have the meaning set forth in Section 4.1 hereof.

5.1PowersStock Appreciation Right” means a contractual right granted to an Eligible Person under Section 7 hereof entitling such Eligible Person to receive a payment, representing the excess of the Board. The business and affairsFair Market Value of a share of Common Stock over the base price per share of the Corporationright, at such time, and subject to such conditions, in each case, as are set forth in the Plan and the applicable Award Agreement.

Stock Award” means a grant of shares of Common Stock to an Eligible Person under Section 11 hereof that are issued free of transfer restrictions and forfeiture conditions.

Stock Option” means a contractual right granted to an Eligible Person under Section 6 hereof to purchase shares of Common Stock at such time and price, and subject to such conditions, in each case, as are set forth in the Plan and the applicable Award Agreement.

Subsidiary” means an entity (whether or not a corporation) that is wholly or majority owned or controlled, directly or indirectly, by the Company or any other affiliate of the Company that is so designated, from time to time, by the Committee, during the period of such affiliated status;provided,however, that, with respect to Incentive Stock Options, the term “Subsidiary” shall include only an entity that qualifies under Section 424(f) of the Code as a “subsidiary corporation” with respect to the Company.

Successor Entity” shall have the meaning set forth in Section 12.2(b) hereof.

Treasury Regulations” shall have the meaning set forth in Section 15.8 hereof.

Underpayment” shall have the meaning set forth in Section 15.8(b)(iii) hereof.

3.Administration.

3.1Committee Members. The Plan shall be managedadministered by or under the directiona Committee comprised of no fewer than two members of the Board of Directors. In addition to the powers and authority expressly conferred upon themwho are appointed by applicable law or by this Amended and Restated Certificate of Incorporation (including any certificate of designations relating to any series or class of Preferred Stock) or the Bylaws of the Corporation, the Board of Directors is hereby empowered to exercise all such powers and do all such acts and thingsadminister the Plan. To the extent deemed necessary by the Board, or as may be exercisedrequired by any applicable securities or donetax laws, The NASDAQ Global Market, each Committee (as defined in clauses (i) or (ii) of the definition thereof) member shall satisfy the requirements for (i) an “independent director” under rules adopted by The NASDAQ Global Market or other principal exchange on which the Common Stock is then listed, (ii) a “nonemployee director” for purposes of Rule16b-3 under the Exchange Act and (iii) an “outside director” under Section 162(m) of the Code. Notwithstanding the foregoing, the mere fact that a Committee (as defined in clauses (i) or (ii) of the definition thereof) member shall fail to qualify under any of the foregoing requirements shall not invalidate any Award made by the Corporation, exceptCommittee (as defined in clauses (i) or (ii) of the definition thereof) which Award is otherwise validly made under the Plan. Neither the Company nor any member of the Committee shall be liable for any action or determination made in good faith by the Committee with respect to the Plan or any Award thereunder.

3.2Committee Authority. It shall be the duty of the Committee to administer the Plan in accordance with the Plan’s provisions. The Committee shall have all powers and discretion necessary or appropriate to administer the Plan and to control its operation, including, but not limited to, the power to (i) determine the Eligible Persons to whom Awards shall be granted under the Plan and to grant Awards, (ii) prescribe the restrictions, terms and conditions of all Awards, (iii) interpret the Plan and terms of the Awards, (iv) adopt rules for the administration, interpretation and application of the Plan as are consistent therewith, and interpret, amend or revoke any such rules, (v) make all determinations with respect to a Participant’s Service and the termination of such Service for purposes of any Award, (vi) subject the provisions of Section 6 hereof, to extend at any time the period in which Stock Options may be exercised, (vii) to determine at any time whether, to what extent, and under what circumstances distribution or the receipt of Stock and other amounts payable with respect to an Award shall be deferred either automatically or at the election of the receiving Participant and whether and to what extent the

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Company shall pay or credit amounts constituting interest (at rates determined by the Committee) or dividends or deemed dividends on such deferrals, (viii) correct any defect(s) or omission(s) or reconcile any ambiguity(ies) or inconsistency(ies) in the Plan or any Award thereunder, (ix) make all determinations it deems advisable for the administration of the Plan, to decide all disputes arising in connection with the Plan, and to otherwise supervise the administration of the Plan, (x) to suspend the right to exercise or net exercise any Award during any blackout period that is necessary or desirable to comply with the requirements of applicable securities laws, and to extend the period for exercise of such Award by an equal period of time, (xi) subject to the terms of the Plan, amend the terms of an Award in any manner that is not inconsistent with the Plan, and (xii) adopt such procedures and subplans and Award Agreements as are necessary or appropriate to permit participation in the Plan by Eligible Person who are foreign nationals or employed outside of the United States or as otherwise specificallyare necessary or appropriate for the administration and application of the Plan. The Committee’s determinations under the Plan need not be uniform and may be made by the Committee selectively among Participants and Eligible Persons, whether or not such persons are similarly situated. The Committee shall, in its discretion, consider such factors as it deems relevant in making its interpretations, determinations and actions under the Plan including, without limitation, the recommendations or advice of any officer or employee of the Company or such attorneys, consultants, accountants or other advisors as it may select. All interpretations, determinations, and actions by the Committee shall be final, conclusive and binding upon all parties.

3.3Delegation of Authority. The Committee shall have the right, from time to time, to delegate to one or more officers of the Company the authority of the Committee to grant and determine the terms and conditions of Awards granted under the Plan, subject to the requirements of Section 157(c) of the Delaware General Corporation Law (or any successor provision) and such other limitations as the Committee shall determine. In no event shall any such delegation of authority be permitted with respect to Awards granted to any member of the Board or to any Eligible Person who is subject to Rule16b-3 under the Exchange Act or is a “covered employee” under Section 162(m) of the Code (as determined in accordance with applicable guidance as of the applicable date of determination). The Committee shall also be permitted to delegate, to any appropriate officer or employee of the Company, responsibility for performing certain ministerial functions under the Plan. In the event that the Committee’s authority is delegated to officers or employees in accordance with the foregoing, all provisions of the Plan relating to the Committee shall be interpreted in a manner consistent with the foregoing by treating any such reference as a reference to such officer or employee for such purpose. Any action undertaken in accordance with the Committee’s delegation of authority hereunder shall have the same force and effect as if such action was undertaken directly by the Committee and shall be deemed for all purposes of the Plan to have been taken by the Committee.

4.Shares Subject to the Plan.

4.1Number of Shares Reserved. Subject to adjustment as provided in Section 4.5 hereof and subject to Section 15.10 hereof, the total number of shares of Common Stock that are reserved for issuance under the Plan shall be 2,415,277 (the “Share Reserve”);provided, that no more than twenty percent of the Share Reserve may be granted as Incentive Stock Options, subject to adjustment as provided in Section 4.5 hereof and the provisions of Sections 422 or 424 of the Code and any successor provisions;provided, further, that nothing in this Plan requires any percentage of Awards (or Shares underlying Awards) to be granted as Incentive Stock Options. Each share of Common Stock subject to an Award shall reduce the Share Reserve by one share;provided, that Awards that are required to be paid in cash pursuant to their terms shall not reduce the Share Reserve. Any shares of Common Stock delivered under the Plan shall consist of authorized and unissued shares or treasury shares.

4.2Share Replenishment. To the extent that an Award granted under this Plan is canceled, expired, forfeited, surrendered, settled by lawdelivery of fewer shares than the number underlying the Award, settled in cash or otherwise terminated without delivery of the shares to the Participant, the shares of Common Stock retained by or returned to the Company will (i) not be deemed to have been delivered under the Plan, (ii) be available for future Awards under the Plan, and (iii) increase the Share Reserve by one share for each share that is retained by or returned to the Company;provided, that notwithstanding the foregoing, shares that are (x) withheld from an

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Award or separately surrendered by the Participant in payment of the exercise or purchase price or taxes relating to such an Award or (y) not issued or delivered as a result of the net settlement of an outstanding Stock Option or Stock Appreciation Right, shall be deemed to constitute delivered shares, shall count against the Share Reserve and not be available for future Awards under the Plan and shall continue to be counted as outstanding for purposes of determining whether any of the Award limits specified in Sections 4.3 or 4.4 have been attained.

4.3Awards Granted to Eligible Persons Other ThanNon-Employee Directors. For purposes of complying with the requirements of Section 162(m) of the Code, the maximum number of shares of Common Stock that may be subject to (i) Stock Options, (ii) Stock Appreciation Rights, (iii) Restricted Stock Awards that vest in full or in part based on the attainment of Performance Goals, and (iv) Restricted Stock Units that vest in full or in part based on the attainment of Performance Goals that are granted to any Eligible Person other than aNon-Employee Director during any calendar year shall be limited to 2,000,000 shares of Common Stock for each such Award type individually (subject to adjustment as provided in Section 4.5 hereof). If an Award is settled in cash, the number of shares of Common Stock on which the Award is based shall not count toward the individual share limit set forth in this Section 4.3, but shall count against the annual Cash Performance Award limit set forth in Section 10.7.

4.4Awards Granted toNon-Employee Directors. The maximum number of shares of Common Stock that may be subject to (i) Stock Options, (ii) Stock Appreciation Rights, (iii) Restricted Stock Awards, (iv) Restricted Stock Units and (v) Stock Awards granted to anyNon-Employee Director during any calendar year shall be limited to 500,000 shares of Common Stock for all such Award types in the aggregate (subject to adjustment as provided in Section 4.5 hereof). If an Award is settled in cash, the number of shares of Common Stock on which the Award is based shall not count toward the individual share limit set forth in this Section 4.4, but shall count against the annual Cash Performance Award limit set forth in Section 10.7.

4.5Adjustments. If there shall occur any change with respect to the outstanding shares of Common Stock by reason of any recapitalization, reclassification, stock dividend, extraordinary dividend, stock split, reverse stock split or other distribution with respect to the shares of Common Stock or any merger, reorganization, consolidation, combination,spin-off, stock purchase or other similar corporate change or any other change affecting the Common Stock (other than regular cash dividends to shareholders of the Company), the Committee shall, in the manner and to the extent it considers equitable to the Participants and consistent with the terms of the Plan, cause an adjustment to be made to (i) the maximum number and kind of shares of Common Stock provided in Sections 4.1, 4.3 and 4.4 hereof (including the maximum number of shares of Common Stock that may become payable to a Participant provided in Sections 4.3 and 4.4 hereof), (ii) the number and kind of shares of Common Stock, units or other rights subject to then outstanding Awards, (iii) the exercise or base price for each share or unit or other right subject to then outstanding Awards, (iv) the maximum amount that may become payable to a Participant under Cash Performance Awards provided in Section 10.7 hereof, (v) issue additional Awards or shares of Common Stock, issue dividend equivalent rights or make cash payments to the holders of outstanding Awards, in each case, on such terms and conditions as determined by the Committee, and/or (vi) any other terms of an Award that are affected by the event;provided, that with respect to any Awards intended to qualify as “performance-based compensation” under Section 162(m) of the Code, no adjustment shall be made to the Performance Goals or the manner in which performance will be measured against the Performance Goals, except as otherwise provided in this AmendedSection 10.6 hereof. Notwithstanding the foregoing, (a) any such adjustments shall, to the extent necessary, be made in a manner consistent with the requirements of Section 409A of the Code and, Restated Certificate(b) in the case of Incorporation (includingIncentive Stock Options, any certificatesuch adjustments shall, to the extent practicable, be made in a manner consistent with the requirements of designations relatingSection 424(a) of the Code.

5.Eligibility and Awards.

5.1Designation of Participants. Any Eligible Person may be selected by the Committee to any series or class of Preferred Stock).

5.2Number of Directors. Uponreceive an Award and become a Participant under the effectiveness of this AmendedPlan. The Committee has the authority, in its discretion, to determine and Restated Certificate of Incorporation (the “Effective Time”), the total number of directors constituting the entire Board of Directors shall be six (6). Thereafter, the total number of directors constituting the entire Board of Directors shall be fixeddesignate from time to time exclusively by resolutionthose Eligible Persons who are to be granted Awards, the types of at least a majorityAwards to be

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granted, the number of shares of Common Stock or units subject to Awards to be granted, the terms and conditions of such Awards consistent with the terms of the Board thenPlan, and to grant any such Awards. In selecting Eligible Persons to be Participants and in office.determining the type and amount of Awards to be granted under the Plan, the Committee shall consider any and all factors that it deems relevant or appropriate. Designation of a Participant in any year shall not require the Committee to designate such person to receive an Award in any other year or, once designated, to receive the same type or amount of Award as granted to the Participant in any other year.

5.2Determination of Awards. The Committee shall determine the terms and conditions of all Awards granted to Participants in accordance with its authority under Section 3.2 hereof. An Award may consist of one type of right or benefit hereunder or of two or more such rights or benefits granted in tandem.

5.3Award Agreements. Each Award granted to an Eligible Person under the Plan will be represented in an Award Agreement. The terms of all Awards under the Plan, as determined by the Committee, will be set forth in each individual Award Agreements as described in Section 15.2 hereof.

5.4Corporate Action Constituting Grant of Awards. Corporate action constituting a grant by the Company of an Award to any Participant will be deemed completed as of the date of such corporate action, unless otherwise determined by the Committee in the resolutions comprising such corporate action, regardless of when the instrument, certificate or letter evidencing the Award is communicated to, or actually received or accepted by, the Participant. In the event that the corporate records (e.g., Committee consents, resolutions or minutes) documenting the corporate action constituting the Award grant contain terms (e.g., exercise price, vesting schedule or number of shares) that are inconsistent with those in the Award Agreement or related grant documents as a result of a clerical error in the papering of the Award Agreement or related grant documents, the corporate records will control and the Participant will have no legally binding right to the incorrect term in the Award Agreement or related grant documents.

6.Classification.Stock Options.

6.1Grant of Stock Options. A Stock Option may be granted to any Eligible Person selected by the Committee, except that an Incentive Stock Option may only be granted to an Eligible Person satisfying the conditions of Section 6.7(a) hereof. Each Stock Option shall be designated on the Date of Grant, in the discretion of the Committee, as an Incentive Stock Option or as a Nonqualified Stock Option.

6.2Exercise Price. The exercise price per share of a Stock Option shall not be less than one hundred percent (100%) of the Fair Market Value of a share of Common Stock on the Date of Grant. The Committee may in its discretion specify an exercise price per share that is higher than the Fair Market Value of a share of Common Stock on the Date of Grant.

6.3Vesting of Stock Options. The Committee shall, in its discretion, prescribe the time or times at which or the conditions upon which, a Stock Option or portion thereof shall become vested and/or exercisable. The requirements for vesting and exercisability of a Stock Option may be based on the continued Service of the Participant with the Company or a Subsidiary for a specified time period (or periods), on the attainment of a specified Performance Goal(s) or on such other terms and conditions as approved by the Committee in its discretion, all as set forth in the Award Agreement. The Committee may accelerate the vesting or exercisability of any Stock Option, including, without limitation, upon a Change in Control or upon termination of Service under certain circumstances, in each case, as set forth in the Award Agreement or the Committee’s subsequent resolutions. If the vesting requirements of a Stock Option are not satisfied, the Award shall be forfeited as set forth in the Award Agreement.

6.4Term of Stock Options. The Committee shall in its discretion prescribe in an Award Agreement the period during which a vested Stock Option may be exercised;provided,however, that the maximum term of a

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Stock Option shall be ten (10) years from the Date of Grant. The Committee may provide that a Stock Option will cease to be exercisable upon or at the end of a specified time period following a termination of Service for any reason as set forth in the Award Agreement or otherwise.

6.5Stock Option Exercise; Tax Withholding. Subject to such terms and conditions as specified in an Award Agreement, a Stock Option may be exercised in whole or in part at any time during the term thereof by notice in the form required by the Company, together with payment of the aggregate exercise price and applicable withholding tax. Payment of the exercise price shall be made: (i) in cash or by cash equivalent acceptable to the Committee, or, (ii) to the extent permitted by the Committee in its sole discretion and set forth in the Award Agreement, (A) in shares of Common Stock valued at the Fair Market Value of such shares on the date of exercise, (B) through an open-market, broker-assisted sales transaction pursuant to which the Company is promptly delivered the amount of proceeds necessary to satisfy the exercise price, (C) by reducing the number of shares of Common Stock otherwise deliverable upon the exercise of the Stock Option by the number of shares of Common Stock having a Fair Market Value on the date of exercise equal to the exercise price, (D) by a combination of the methods described above or (E) by such other method as may be approved by the Committee and set forth in the Award Agreement. In addition to and at the time of payment of the exercise price, the Participant shall pay to the Company the full amount of any and all applicable income tax, employment tax and other amounts required to be withheld in connection with such exercise, payable by such of the methods described above for the payment of the exercise price as may be approved by the Committee and set forth in the Award Agreement.

6.6Limited Transferability of Nonqualified Stock Options. All Nonqualified Stock Options shall be exercisable during the Participant’s lifetime only by the Participant or by the Participant’s guardian or legal representative. The Nonqualified Stock Options and the rights and privileges conferred thereby shall benon-transferable, except as otherwise provided in Section 15.3 hereof.

6.7Additional Rules for Incentive Stock Options.

(a)Eligibility. An Incentive Stock Option may only be granted to an Eligible Person who is considered an employee for purposes of Treasury Regulation§1.421-1(h) with respect to the Company or any Subsidiary that qualifies as a “subsidiary corporation” with respect to the Company for purposes of Section 424(f) of the Code.

(b)Annual Limits. No Incentive Stock Option shall be granted to a Participant as a result of which the aggregate Fair Market Value (determined as of the Date of Grant) of the Common Stock with respect to which incentive stock options under Section 422 of the Code are exercisable for the first time in any calendar year under the Plan and any other stock option plans of the Company or any subsidiary or parent corporation, would exceed $100,000, determined in accordance with Section 422(d) of the Code. This limitation shall be applied by taking such incentive stock options into account in the order in which they were granted.

(c)Additional Limitations. In the case of any Incentive Stock Option granted to an Eligible Person who owns, either directly or indirectly (taking into account the attribution rules contained in Section 424(d) of the Code), stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or any Subsidiary, the exercise price shall not be less than one hundred ten percent (110%) of the Fair Market Value of a share of Common Stock on the Date of Grant and the maximum term shall be five (5) years.

(d)Termination of Employment. An Award of an Incentive Stock Option shall provide that such Stock Option may be exercised not later than (i) three (3) months following termination of employment of the Participant with the Company and all Subsidiaries (other than as set forth in clause (ii) of this Section 6.7(d)) or (ii) one year following termination of employment of the Participant with the Company and all Subsidiaries due to death or permanent and total disability within the meaning of Section 22(e)(3) of the Code, in each case as and to the extent determined by the Committee to comply with the requirements of Section 422 of the Code.

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(e)Other Terms and Conditions; Nontransferability. No Incentive Stock Options granted under the Plan may be granted more than ten (10) years following the date that the Plan is adopted or the date the Plan is approved by the Company’s stockholders, whichever is earlier. The Award Agreement representing any Incentive Stock Option granted hereunder shall contain such additional terms and conditions, not inconsistent with the terms of the Plan, as are deemed necessary or desirable by the Committee, which terms, together with the terms of the Plan, shall be intended and interpreted to cause such Incentive Stock Option to qualify as an “incentive stock option” under Section 422 of the Code. A Stock Option that is granted as an Incentive Stock Option shall, to the extent it fails to qualify as an “incentive stock option” under the Code, be treated as a Nonqualified Stock Option. An Incentive Stock Option shall by its terms be nontransferable other than by will or by the laws of descent and distribution, and shall be exercisable during the lifetime of a Participant only by such Participant.

(f)Disqualifying Dispositions. If shares of Common Stock acquired by exercise of an Incentive Stock Option are disposed of within two years following the Date of Grant or one year following the transfer of such shares to the Participant upon exercise, the Participant shall, promptly following such disposition, notify the Company in writing of the date and terms of such disposition and provide such other information regarding the disposition as the Company may reasonably require.

6.8Repricing Prohibited.Subject to the anti-dilution adjustment provisions contained in Section 4.5 hereof and the provisions of Section 12 hereof, without the prior approval of the Company’s stockholders, neither the Committee nor the Board shall (a) cancel a Stock Option previously granted under the Plan in exchange for cash or another Award when the exercise price per share under such Stock Option then exceeds the Fair Market Value of one share of Common Stock, (b) cause the cancellation, substitution or amendment of a Stock Option previously granted under the Plan that would have the effect of reducing the exercise price of such Stock Option or (c) otherwise approve any modification to a Stock Option previously granted under the Plan that would be treated as a “repricing” under the then applicable rules, regulations or listing requirements adopted by The NASDAQ Global Market or other principal exchange on which the Common Stock is then listed.

7.Stock Appreciation Rights.

7.1Grant of Stock Appreciation Rights. Stock Appreciation Rights may be granted to any Eligible Person selected by the Committee. Stock Appreciation Rights may be granted on a basis that allows for the exercise of the right by the Participant or that provides for the automatic payment of the right upon a specified date or event, in either case, as set forth in the Award Agreement representing such Stock Appreciation Rights. Stock Appreciation Rights and the rights and privileges conferred thereby shall benon-transferable, except as provided in Section 15.3 hereof.

7.2Stand-Alone Stock Appreciation Rights. A Stock Appreciation Right may be granted without any related Stock Option. The Committee shall in its discretion provide in an Award Agreement the time or times at which or the conditions upon which, a Stock Appreciation Right or portion thereof shall become vested and/or exercisable. The requirements for vesting and exercisability of a Stock Appreciation Right may be based on the continued Service of a Participant with the Company or a Subsidiary for a specified time period (or periods), on the attainment of a specified Performance Goal(s) or on such other terms and conditions as approved by the Committee in its discretion, all as set forth in the Award Agreement. If the vesting requirements of a Stock Appreciation Right are not satisfied, the Award shall be forfeited as set forth in the Award Agreement. The Committee may accelerate the vesting or exercisability of any Stock Appreciation Right, including, without limitation, upon a Change in Control or upon termination of Service under certain circumstances, in each case, as set forth in the Award Agreement or the Committee’s subsequent resolutions. A Stock Appreciation Right will be exercisable or payable at such time or times as determined by the Committee as set forth in the Award Agreement;provided, that the maximum term of a Stock Appreciation Right shall be ten (10) years from the Date of Grant. The Committee may provide that a Stock Appreciation Right will cease to be exercisable upon or at the end of a period following a termination of Service for any reason as set forth in the Award Agreement. The

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base price of a Stock Appreciation Right granted without any related Stock Option shall be determined by the Committee in its discretion;provided,however, that the base price per share of any such stand-alone Stock Appreciation Right shall not be less than one hundred percent (100%) of the Fair Market Value of a share of Common Stock on the Date of Grant.

7.3Tandem Stock Option/Stock Appreciation Rights. A Stock Appreciation Right may be granted in tandem with a Stock Option and constitute a single Award. A tandem Stock Option/Stock Appreciation Right will entitle the holder to elect, as to all or any portion of the number of shares subject to the Award, to exercise either the Stock Option or the Stock Appreciation Right, resulting in the reduction of the corresponding number of shares subject to the Award, including the tandem the Stock Appreciation Right or Stock Option, as a applicable, not so exercised. A Stock Appreciation Right granted in tandem with a Stock Option hereunder shall have a base price per share equal to the per share exercise price of the Stock Option, will be vested and exercisable at the same time or times that a related Stock Option is vested and exercisable, and will expire no later than the time at which the related Stock Option expires, in each case, as set forth in the Award Agreement.

7.4Payment of Stock Appreciation Rights. A Stock Appreciation Right will entitle the holder, upon exercise or other payment of the Stock Appreciation Right, as applicable, to receive an amount determined by multiplying: (i) the excess of the Fair Market Value of a share of Common Stock on the date of exercise or payment of the Stock Appreciation Right over the base price of such Stock Appreciation Right, by (ii) the number of shares as to which such Stock Appreciation Right is exercised or paid. Payment of the amount determined under the foregoing may be made, as approved by the Committee and set forth in the Award Agreement, in shares of Common Stock valued at their Fair Market Value on the date of exercise or payment, in cash or in a combination of shares of Common Stock and cash, subject to applicable tax withholding requirements.

7.5Repricing Prohibited. Subject to the anti-dilution adjustment provisions contained in Section 4.5 hereof and the provisions of Section 12 hereof, without the prior approval of the Company’s stockholders, neither the Committee nor the Board shall (a) cancel a Stock Appreciation Right previously granted under the Plan in exchange for cash or another Award when the base price per share then exceeds the Fair Market Value of one share of Common Stock, (b) cause the cancellation, substitution or amendment of a Stock Appreciation Right previously granted under the Plan that would have the effect of reducing the base price of such Stock Appreciation Right or (c) otherwise approve any modification to a Stock Appreciation Right previously granted under the Plan that would be treated as a “repricing” under the then applicable rules, regulations or listing requirements adopted by The NASDAQ Global Market or other principal exchange on which the Common Stock is then listed.

8.Restricted Stock Awards.

8.1Grant of Restricted Stock Awards. A Restricted Stock Award may be granted to any Eligible Person selected by the Committee. The Committee may require the payment by the Participant of a specified purchase price in connection with the issuance of any Restricted Stock Award as set forth in the Award Agreement representing such Restricted Stock Award, which may also include the manner in which payment of any specified purchase price may be made as prescribed by the Committee.

8.2Vesting Requirements. The restrictions imposed on shares granted under a Restricted Stock Award shall lapse in accordance with the vesting requirements specified by the Committee in the Award Agreement. The requirements for vesting of a Restricted Stock Award may be based on the continued Service of the Participant with the Company or a Subsidiary for a specified time period (or periods), on the attainment of a specified Performance Goal(s) designed to meet the requirements for exemption under Section 162(m) of the Code or on such other terms and conditions as approved by the Committee in its discretion. The Committee may accelerate the vesting of a Restricted Stock Award, including, without limitation, upon a Change in Control or upon termination of Service under certain circumstances, as set forth in the Award Agreement or the Committee’s

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subsequent resolutions, subject to compliance with Section 162(m) of the Code (to the extent applicable). If the vesting requirements of a Restricted Stock Award shall not be satisfied or, if applicable, the Performance Goal(s) with respect to such Restricted Stock Award are not attained, the Award shall be forfeited and the shares of Stock subject to the Award shall be returned to the Company, as set forth in the Award Agreement.

8.3Transfer Restrictions. Shares granted under any Restricted Stock Award and the rights and privileges conferred thereby shall benon-transferable until all applicable restrictions are removed or have expired, except as provided in Section 15.3 hereof. Failure to satisfy any applicable restrictions shall result in the subject shares of the Restricted Stock Award being forfeited and returned to the Company. The Committee may require in an Award Agreement that certificates (if any) representing the shares granted under a Restricted Stock Award bear a legend making appropriate reference to the restrictions imposed, and that certificates (if any) representing the shares granted or sold under a Restricted Stock Award will remain in the physical custody of an escrow holder (which may be the Company or an officer of the Company) until all restrictions are removed or have expired.

8.4Rights as Stockholder. Subject to the foregoing provisions of this Section 8, the provisions of Section 15.6 hereof, and to the terms of the applicable Award Agreement, the Participant shall not have any rights of a stockholder with respect any of the shares granted to the Participant under a Restricted Stock Award (including, the right to vote or receive dividends and other distributions paid or made with respect thereto) unless and until such shares vest.

8.5Section 83(b) Election. If a Participant makes an election pursuant to Section 83(b) of the Code with respect to a Restricted Stock Award, the Participant shall file, within thirty (30) days following the Date of Grant, a copy of such election with the Company and with the Internal Revenue Service, in accordance with the regulations under Section 83 of the Code. The Committee may provide in an Award Agreement that the Restricted Stock Award is conditioned upon the Participant’s making or refraining from making an election with respect to the Award under Section 83(b) of the Code

8.6Other. Notwithstanding anything to the contrary contained in this Section 8 or any other section of the Plan, with respect to any Restricted Stock Award intended to qualify as “performance-based compensation” under Section 162(m) of the Code, unless the Board determines that an applicable exemption under applicable law applies, all references to the Committee shall solely mean each member of the Committee that satisfies the requirements for an “outside director” under Section 162(m) of the Code.

9.Restricted Stock Units.

9.1Grant of Restricted Stock Units. A Restricted Stock Unit may be granted to any Eligible Person selected by the Committee. The value of each Restricted Stock Unit shall be equal to the Fair Market Value of the Common Stock on the applicable date or time period of determination, as specified by the Committee. Restricted Stock Units shall be subject to such restrictions and conditions as the Committee shall determine and as set forth in the Award Agreement representing such Restricted Stock Units. Restricted Stock Units and the rights and privileges conferred thereby shall benon-transferable, except as provided in Section 15.3 hereof.

9.2Vesting of Restricted Stock Units. On the Date of Grant, the Committee shall, in its discretion, determine any vesting requirements with respect to Restricted Stock Units, which shall be set forth in the Award Agreement. The requirements for vesting of a Restricted Stock Unit may be based on the continued Service of the Participant with the Company or a Subsidiary for a specified time period (or periods) or on such other terms and conditions as approved by the Committee in its discretion. In addition, a Restricted Stock Unit may be denominated as a Performance Stock Unit. The requirements for vesting of a Restricted Stock Unit denominated as a Performance Stock Unit may be based, in whole or in part, on the attainment ofpre-established business and/ or individual Performance Goal(s) over a specified performance period designed to meet the requirements for exemption under Section 162(m) of the Code, or otherwise, as approved by the Committee in its discretion and as set forth in the Award Agreement. The Committee may accelerate the vesting of a Restricted Stock Unit, including, without limitation, upon a Change in Control or upon termination of Service under certain

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circumstances, as set forth in the Award Agreement or the Committee’s subsequent resolutions, subject to compliance with Section 162(m) of the Code (to the extent applicable). If the vesting requirements of a Restricted Stock Units Award are not satisfied or, if applicable, the Performance Goal(s) with respect to such Restricted Stock Units Award are not attained, the Award shall be forfeited, as set forth in the Award Agreement.

9.3Payment of Restricted Stock Units. Restricted Stock Units shall become payable to a Participant at the time or times determined by the Committee and set forth in the Award Agreement, which may be upon or following the vesting of the Award. Payment of a Restricted Stock Unit may be made, as approved by the Committee and set forth in the Award Agreement, in cash or in shares of Common Stock or in a combination thereof, subject to applicable tax withholding requirements. Any cash payment of a Restricted Stock Unit shall be made based upon the Fair Market Value of the Common Stock, determined on such date or over such time period as determined by the Committee and set forth in the Award Agreement.

9.4Dividend Equivalent Rights.Restricted Stock Units may be granted together with a dividend equivalent right with respect to the shares of Common Stock subject to the Award, which dividend equivalent right may be accumulated and may be deemed reinvested in additional Restricted Stock Units or may be accumulated in cash, as determined by the Committee in its discretion and set forth in an Award Agreement. Dividend equivalent rights will be paid at such time as determined by the Committee in its discretion (including without limitation at the times paid to stockholders generally or at the times of vesting or payment of the Restricted Stock Unit) as set forth in an Award Agreement. Dividend equivalent rights may be subject to forfeiture under the same conditions as apply to the underlying Restricted Stock Units, as set forth in an Award Agreement.

9.5Other. Notwithstanding anything to the contrary contained in this Section 9 or any other section of the Plan, with respect to any Restricted Stock Units intended to qualify as “performance-based compensation” under Section 162(m) of the Code, unless the Board determines that an applicable exemption under applicable law applies, all references to the Committee shall solely mean each member of the Committee that satisfies the requirements for an “outside director” under Section 162(m) of the Code

10.Performance Awards and Performance Criteria.

10.1Grant of Cash Performance Awards. A Cash Performance Award may be granted to any Eligible Person selected by the Committee. Payment amounts shall be based on the attainment of specified levels of attainment with respect to the Performance Goals, including, if applicable, specified threshold, target and maximum performance levels or such other terms and conditions as approved by the Committee in its discretion and set forth in an Award Agreement. The requirements for payment may be also based upon the continued Service of the Participant with the Company or any Subsidiary during the respective performance period and on such other conditions as determined by the Committee and set forth in an Award Agreement. Cash Performance Awards and the rights and privileges conferred thereby shall benon-transferable, except as provided in Section 15.3 hereof.

10.2Establishment of Performance-Based Terms.With respect to Cash Performance Awards and other Awards intended to qualify as “performance based compensation” under Section 162(m) of the Code (collectively, “Performance Awards”), before the 90th day of the applicable performance period (or, if the performance period is less than one year, no later than the number of days which is equal to 25% of such performance period), the Committee will determine the duration of the performance period, the Performance Criteria, the applicable Performance Goals relating to the Performance Criteria and the amount and terms of payment/vesting upon achievement of the Performance Goals.

10.3Award Agreements. Each Cash Performance Award shall be evidenced by an Award Agreement that shall specify the performance period and such other terms and conditions as the Committee, in its discretion, shall determine. The Committee may accelerate the vesting of a Cash Performance Award, including, without

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limitation, upon a Change in Control or termination of Service under certain circumstances, as set forth in the Award Agreement or the Committee’s subsequent resolutions, subject to compliance with Section 162(m) of the Code (to the extent applicable).

10.4Performance Criteria. For purposes of Performance Awards, the “Performance Criteria” shall be shall be one or any combination of the following, for the Company or any identified Subsidiary, division, or business unit or line, as determined by the Committee at the time of the Award: (i) total stockholder return; (ii) such total stockholder return as compared to total return (on a comparable basis) of a publicly available index such as, but not limited to, the Standard & Poor’s 500 Stock Index; (iii) net income; (iv) pretax earnings; (v) adjusted net income; (vi) adjusted pretax earnings; (vii) adjusted earnings per share; (viii) adjusted earnings before interest expense, taxes, depreciation and amortization (“EBITDA”); (ix) pretax operating earnings after interest expense and before bonuses, service fees, and extraordinary or special items; (x) operating margin; (xi) earnings per share; (xii) return on equity; (xiii) return on capital; (xiv) return on investment; (xv) operating earnings; (xvi) working capital; (xvii) ratio of debt to stockholders’ equity; (xviii) revenue; (xix) free cash flow (i.e., EBITDA, less cash taxes, cash interest, net capital expenditures, mandatory payments of principal under any credit facility, and payments under collateralized lease obligations and financing lease obligations) and (xx) any combination of or a specified increase in any of the foregoing. Each of the Performance Criteria shall be applied and interpreted in accordance with an objective formula or standard established by the Committee at the time the applicable Award is granted including, without limitation, GAAP.

10.5Performance Goals. For purposes of Performance Awards, the “Performance Goals” shall be the levels of achievement relating to the Performance Criteria selected by the Committee for the Award. The Performance Goals shall be written and shall be expressed as an objective formula or standard that precludes discretion to increase the amount of compensation payable that would otherwise be due upon attainment of the goal. The Performance Goals may be applied on an absolute basis or relative to an identified index, peer group, or one or more seriescompetitors or classesother companies (including particular business segments or divisions or such companies), as specified by the Committee. The Performance Goals need not be the same for all Participants.

10.6Adjustments. At the time that an Award is granted, the Committee may provide for the Performance Goals or the manner in which performance will be measured against the Performance Goals to be adjusted in such objective manner as it deems appropriate, including, without limitation, adjustments to reflectnon-cash losses or charges, charges for restructurings,non-operating income, the impact of Preferredcorporate transactions, discontinued operations or financing transactions, severance and recruitment costs, “run rate” savings, costs incurred in establishing new manufacturing sources, specified legal expenses, extraordinary and other unusual ornon-recurring items or events and the cumulative effects of accounting or tax law changes. In addition, with respect to a Participant hired or promoted following the beginning of a performance period, the Committee may determine to prorate the Performance Goals and/or the amount of any payment in respect of such Participant’s Performance Awards for the partial performance period.

10.7Maximum Amount of Cash Performance Awards. The maximum amount that may become payable to any one Participant during any one calendar year under all Cash Performance Awards and all other Awards that are actually paid or settled in cash is limited to $2,000,000.

10.8Negative Discretion. Notwithstanding anything else contained in the Plan to the contrary, the Committee shall, to the extent provided in an Award Agreement, have the right, in its discretion, (i) to reduce or eliminate the amount otherwise payable to any Participant under an Award and (ii) to establish rules or procedures that have the effect of limiting the amount payable to any Participant to an amount that is less than the amount that is otherwise payable under an Award. The Committee may exercise the discretion provided for by the foregoing sentence in anon-uniform manner among Participants. The Committee shall not have discretion to increase the amount that is otherwise payable to any Participant under a Performance Award.

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10.9Certification. Following the conclusion of the performance period of a Performance Award, the Committee shall certify in writing whether the Performance Goals for that performance period have been achieved, or certify the degree of achievement, if applicable.

10.10Payment. Upon certification of the Performance Goals for a Performance Award, the Committee shall determine the level of vesting or amount of payment to the Participant pursuant to the Award, if any. Notwithstanding the foregoing, unless otherwise provided in the Award Agreement, Performance Awards may be paid, at the discretion of the Committee, in any combination of cash or shares of Common Stock, and effectivebased upon the Effective Time,Fair Market Value of such shares at the directorstime of payment

10.11Other. Notwithstanding anything to the contrary contained in this Section 10 or any other section of the CorporationPlan, with respect to any Performance Award, unless the Board determines that an applicable exemption under applicable law applies, all references to the Committee shall solely mean each member of the Committee that satisfies the requirements for an “outside director” under Section 162(m) of the Code.

11.Stock Awards.

11.1Grant of Stock Awards. A Stock Award may be granted to any Eligible Person selected by the Committee. A Stock Award may be granted for past, or in anticipation of future, Services, in lieu of any discretionary bonus or other discretionary cash compensation, as directors’ compensation or for any other valid purpose as determined by the Committee. The Committee shall determine the terms and conditions of such Awards, and such Awards shall be divided into three classes designated Class I, Class II and Class III. Each class shall consist, as nearly asmade without vesting requirements. In addition, the Committee may, in connection with any Stock Award, require the payment of a specified purchase price, which may also include the manner in which payment of any specified purchase price may be possible, ofone-third ofmade as prescribed by the total number of directors constituting the entire Board of Directors. The Board of Directors may assign members of the Board of Directors already in office to such classesCommittee.

11.2Rights as of the Effective Time. The term of office of the initial Class I directors shall expire at the first annual meeting of the stockholders following the Effective Time; the term of office of the initial Class II directors shall expire at the second annual meeting of the stockholders following the Effective Time; and the term of office of the initial Class III directors shall expire at the third annual meeting of the stockholders following the Effective Time. At each annual meeting of stockholders, commencing with the first annual meeting of stockholders following the Effective Time, successors to the class of directors whose term expires at that annual meeting shall be elected to hold office until the third annual meeting next succeeding his or her election and until his or her respective successor shall have been duly elected and qualified. If the number of directors is changed, any increase or decrease shall be apportioned among the classes in such a manner as the Board of Directors shall determine so as to maintain the number of directors in each class as nearly equal as possible, but in no case will a decrease in the number of directors shorten the term of any incumbent director.

5.4Removal of Directors.Stockholder. Subject to the foregoing provisions of this Section 11 and the applicable Award Agreement, upon the issuance of the Common Stock under a Stock Award, the Participant shall have all rights of a stockholder with respect to the shares of Common Stock, including the right to vote the shares and receive all dividends and other distributions paid or made with respect thereto.

11.3Elections to Receive Stock in Lieu of Compensation. Subject to Section 409A of the Code and, if applicable, Section 15.4 hereof, upon the request of a Participant and with the consent of the Committee, each such Participant may, pursuant to an advance written election delivered to the Company no later than the date specified by the Committee, receive a portion of the cash compensation otherwise due to such Participant in the form of shares of Common Stock either currently or on a deferred basis in accordance with Section 15.4 hereof.

11.4Restrictions on Transfers. The right to receive shares of Common Stock on a deferred basis and the rights and privileges conferred thereby shall benon-transferrable, except as provided in Section 15.3 hereof.

12.Change in Control.

12.1Effect on Awards. Upon the occurrence of a Change in Control, unless otherwise specifically prohibited under applicable law or unless otherwise provided in the Award Agreement, the Committee is authorized (but not obligated) to make adjustments in the terms and conditions of outstanding Awards, including without limitation any of the following (or any combination thereof):

(a) continuation or assumption of such outstanding Awards under the Plan by the Company (if it is the surviving company or corporation) or by the surviving company or corporation or its parent;

(b) substitution by the surviving company or corporation or its parent of awards with substantially the same or comparable terms (including, with respect to economic value) for outstanding Awards (with appropriate adjustments to the type of consideration payable upon settlement of the Awards);

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(c) accelerated exercisability, vesting and/or payment under outstanding Awards immediately prior to or upon the occurrence of such event or upon a termination of employment following such event; and

(d) if all or substantially all of the Company’s outstanding shares of Common Stock are transferred in exchange for cash consideration in connection with such Change in Control:

(i) upon written notice, provide that any outstanding Stock Options and Stock Appreciation Rights are exercisable during a reasonable period of time immediately prior to the scheduled consummation of the event or such other reasonable period as determined by the Committee (contingent upon the consummation of the event) and, at the end of such period, such Stock Options and Stock Appreciation Rights shall terminate to the extent not so exercised within the relevant period; and

(ii) cancellation of all or any portion of outstanding Awards for fair value (in the form of cash, shares, other property or any combination thereof) as determined in the sole discretion of the Committee;provided, that in the case of Stock Options and Stock Appreciation Rights, the fair value may equal the excess, if any, of the value of the consideration to be paid in the Change in Control transaction to holders of the same number of shares of Common Stock subject to such Awards (or, if no such consideration is paid, Fair Market Value of the shares of Common Stock subject to such outstanding Awards or portion thereof being canceled) over the aggregate exercise or base price, as applicable, with respect to such Awards or portion thereof being canceled, or, if there is no such excess, zero.

12.2Definition of Change in Control. Unless otherwise defined in an Award Agreement, “Change in Control” shall mean the occurrence of one of the following events:

(a) Any Person becomes the Beneficial Owner, directly or indirectly, of more than fifty percent (50%) of the combined voting power, excluding any Person who Beneficially Owns fifty percent (50%) or more series or classes of Preferred Stock, any director or the entire Board of Directors may be removed from office at any time, but only for cause and only by the affirmative vote of the holders of at least a majority of the voting power on the Effective Date of the Corporation’sPlan, of the then outstanding sharesvoting securities of stockthe Company entitled to vote generally in the election of its directors (the “Outstanding Company Voting Securities”), including by way of merger, consolidation or otherwise;provided,however, that for purposes of this definition, the following acquisitions shall not constitute a Change in Control: (i) any acquisition of Outstanding Company Voting Securities directly from the Company, including without limitation, a public offering of securities, or (ii) any acquisition of Outstanding Company Voting Securities by (x) the Company or any of its Subsidiaries, including an acquisition by any employee benefit plan or related trust sponsored or maintained by the Company or any of its Subsidiaries, or (y)(i) one or more Avista Entities or a “group” (as such term is used in Section 13(d) of the Exchange Act) in which an Avista Entity is a member and, (ii) after such acquisition, one or more Avista Entities holds more than 10% of the outstanding voting securities of the Company or such acquiring Person.

(b) Consummation of a reorganization, merger, or consolidation to which the Company is a party or a sale or other disposition of all or substantially all of the assets of the Company (a “Business Combination”), unless, following such Business Combination: (i) any Persons who were the Beneficial Owners of Outstanding Company Voting Securities immediately prior to such Business Combination are the Beneficial Owners, directly or indirectly, of more than fifty percent (50%) of the combined voting power of the outstanding voting securities entitled to vote generally in the election of directors voting together(or election of members of a comparable governing body) of the entity resulting from the Business Combination (including, without limitation, an entity which, as a single class. For purposes of this Section 5.4, “cause” shall mean, with respect to any director, (i) the willful failure by such director to perform, or the gross negligenceresult of such director in performing,transaction, owns all or substantially all of the dutiesCompany or all or substantially all of a director, (ii) the engaging by such director in willfulCompany’s assets, either directly or serious misconduct that is injurious to the Corporation or (iii) the conviction of such director of, or the entering by such director of a plea ofnolo contendere to, a crime that constitutes a felony.

5.5Term.A director shall hold office until the annual meeting for the year in which his or her term expires and until his or her successor shall be elected and shall qualify, subject, however, to prior death, resignation, retirement or removal from office. A director may resign at any time upon written notice to the Corporation.

5.6Vacancies. Subject to the terms of anythrough one or more seriessubsidiaries) (the “Successor Entity”) in substantially the same proportions as their ownership immediately prior to such Business Combination; or classes of Preferred Stock,(ii) no Person (excluding any vacancies in the Board of Directors forSuccessor Entity or any reason and any newly created directorships resulting by reason of any increase in the number of directors shall be filled only by the Board of Directors (and not by the stockholders), acting by a majorityemployee benefit plan or related trust of the remaining directors then in office, even if lessCompany, any of its Subsidiaries, such Successor Entity or any of its subsidiaries) is the Beneficial Owner, directly or indirectly, of more than a quorum, or by a sole remaining director, and any directors so appointed shall hold office until the next electionfifty percent (50%) of the class of directors to which such directors have been appointed and until their successors are duly elected and qualified.

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5.7Director Elections by Holders of Preferred Stock. Notwithstanding the foregoing, whenever the holders of any one or more series or classes of Preferred Stock shall have the right,combined voting separately by series or class, to elect one or more directors at an annual or special meeting of stockholders, the election, filling of vacancies, removal of directors and other features of such one or more directorships shall be governed by the terms of such one or more series or classes of Preferred Stock to the extent permitted by law.

5.8Officers. Except as otherwise expressly delegated by resolution of the Board of Directors, the Board of Directors shall have the exclusive power and authority to appoint and remove officers of the Corporation.

ARTICLE VI

6.1Elections of Directors. Elections of directors need not be by written ballot except and to the extent provided in the Bylaws of the Corporation.

6.2Advance Notice. Advance notice of nominations for the election of directors or proposals of other business to be considered by stockholders, made other than by the Board of Directors or a duly authorized committee thereof or any authorized officer of the Corporation to whom the Board of Directors or such committee shall have delegated such authority, shall be given in the manner provided in the Bylaws of the Corporation. Without limiting the generality of the foregoing, the Bylaws may require that such advance notice include such information as the Board of Directors may deem appropriate or useful.

6.3No Stockholder Action by Consent. Subject to the terms of any one or more series or classes of Preferred Stock, any action required or permitted to be taken by the stockholders of the Corporation must be effected at a duly called annual or special meeting of such stockholders of the Corporation and may not be effected by any written consent in lieu of a meeting by such stockholders, unless the directors then in office unanimously recommend that such action be permitted to be taken by written consent of stockholders. In the event that an action is permitted to be taken by written consent of stockholders in accordance with this Section 6.3 and a signed written consent(s) (and any related revocation(s)) is (are) delivered to the Corporation in the manner provided by applicable law, the Corporation may engage independent inspectors of elections for the purpose of performing promptly a ministerial review of the validity of the consents and revocations. In the event the Corporation engages such inspectors, then for the purpose of permitting the inspectors to perform such review no action by written consent in lieu of a meeting of stockholders shall be effective until such inspectors have completed their review, determined that the requisite number of valid and unrevoked consents delivered to the Corporation in accordance with applicable law have been obtained to take the action specified in the consents, and certified such determination for entry in the records of the Corporation kept for the purpose of recording the proceedings of meetings of stockholders, and such action by written consent will take effect as of the date and time of the certification of the written consents and will not relate back to the date the written consents to take action were delivered to the Corporation.

6.4Postponement, Conduct and Adjournment of Meetings. Any meeting of stockholders may be postponed by action of the Board of Directors at any time in advance of such meeting. The Board of Directors shall have the power to adopt such rules and regulations for the conduct of the meetings and management of the affairs of the Corporation as they may deem proper and the power to adjourn any meeting of stockholders without a vote of the stockholders, which powers may be delegated by the Board of Directors to the Chairperson of such meeting in either such rules and regulations or pursuant to the Bylaws of the Corporation.

6.5Special Meetings of Stockholders. Subject to the terms of any one or more series or classes of Preferred Stock, special meetings of the stockholders of the Corporation, for any purpose or purposes, may be called at any time, by or at the direction of a majority of the directors then in office, the Chairperson of the Board or the Chief Executive Officer of the Corporation, except as otherwise provided in the Corporation’s Bylaws. In addition, holders of a majority of the then outstanding shares of common stock of the Corporation may call a special meeting of the stockholders of the Corporation.

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ARTICLE VII

7.1Limited Liability of Directors. To the fullest extent permitted by the DGCL, as the same exists or as may hereafter be amended, no director of the Corporation shall have any personal liability to the Corporation or any of its stockholders for monetary damages for any breach of fiduciary duty as a director. If the DGCL is amended hereafter to permit the further elimination or limitation of the liability of directors, then the liability of a director of the Corporation shall be eliminated or limited to the fullest extent permitted by the DGCL, as so amended. Any alteration, amendment, addition to or repeal of this Section 7.1, or adoption of any provision of this Amended and Restated Certificate of Incorporation (including any certificate of designations relating to any series or class of Preferred Stock) inconsistent with this Section 7.1, shall not adversely affect any right or protection of a director of the Corporation existing at the time of such alteration, amendment, addition to, repeal or adoption with respect to acts or omissions occurring prior to such alteration, amendment, addition to, repeal or adoption.

7.2Mandatory Indemnification and Advancement of Expenses. The Corporation shall indemnify and provide advancement to any Indemnitee (as defined below) to the fullest extent permitted by law, as such may be amended from time to time. In furtherance of the foregoing indemnification and advancement obligations, and without limiting the generality thereof:

(a)Proceedings Other Than Proceedings by or in the Right of the Corporation. Any Indemnitee shall be entitled to the rights of indemnification and advancement provided in this Section 7.2 if, by reason of his or her Corporate Status (as defined below), Indemnitee is, or is threatened to be made, a party to or participant in any Proceeding (as defined below) other than a Proceeding by or in the right of the Corporation (with the approval of the Corporation’s Board of Directors). Pursuant to this Section 7.2(a), any Indemnitee shall be indemnified against all Expenses (as defined below), judgments, penalties, fines and amounts paid in settlement actually and reasonably incurred by him or her, or on his or her behalf, in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Corporation, and with respect to any criminal Proceeding, had no reasonable cause to believe Indemnitee’s conduct was unlawful. The termination of any Proceeding by judgment, order, settlement, conviction, or upon a plea ofnolo contendereor its equivalent, shall not, of itself, create a presumption that Indemnitee did not act in good faith and in a manner which Indemnitee reasonably believed to be in or not opposed to the best interests of the Corporation, and, with respect to any criminal action or proceeding, had reasonable cause to believe that Indemnitee’s conduct was unlawful.

(b)Proceedings by or in the Right of the Corporation. Any Indemnitee shall be entitled to the rights of indemnification and advancement provided in this Section 7.2, if, by reason of his or her Corporate Status, Indemnitee is, or is threatened to be made, a party to or participant in any Proceeding brought by or in the right of the Corporation. Pursuant to this Section 7.2(b), any Indemnitee shall be indemnified against all Expenses actually and reasonably incurred by Indemnitee, or on Indemnitee’s behalf, in connection with such Proceeding if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Corporation; provided, however, if applicable law so provides, no indemnification against such Expenses shall be made in respect of any claim, issue or matter in such Proceeding as to which Indemnitee shall have been finally adjudged to be liable to the Corporation unless and to the extent that the Court of Chancery of the State of Delaware or the court in which such Proceeding was brought shall determine that such indemnification may be made.

7.3Indemnification for Expenses of a Party Who is Wholly or Partly Successful. Notwithstanding any other provision of this Article VII, to the extent that any Indemnitee is, by reason of his or her Corporate Status, a party to and is successful, on the merits or otherwise, in any Proceeding, he or she shall be indemnified to the maximum extent permitted by law, as such may be amended from time to time, against all Expenses actually and reasonably incurred by him or her or on his or her behalf in connection therewith. If such Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than

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all claims, issues or matters in such Proceeding, the Corporation shall indemnify Indemnitee against all Expenses actually and reasonably incurred by him or her or on his or her behalf in connection with each successfully resolved claim, issue or matter. For purposes of this Section 7.3 and without limitation, the termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter.

7.4Employees and Agents. The Corporation may, to the extent authorized from time to time by the Board of Directors, provide rights to indemnification and advancement of expenses to employees and agents of the Corporation.

7.5Advancement of Expenses. Notwithstanding any other provision of this Article VII, the Corporation shall advance all Expenses incurred by or on behalf of any Indemnitee in connection with any Proceeding by reason of Indemnitee’s Corporate Status within thirty (30) days after the receipt by the Corporation of a statement or statements from Indemnitee requesting such advance or advances from time to time, whether prior to or after final disposition of such Proceeding, and regardless of such Indemnitee’s ability to repay any such amounts in the event of an ultimate determination that Indemnitee is not entitled thereto. Such statement or statements shall reasonably evidence the Expenses incurred by Indemnitee and shall include or be preceded or accompanied by a written undertaking by or on behalf of Indemnitee to repay any Expenses advanced if it shall ultimately be determined that Indemnitee is not entitled to be indemnified against such Expenses. Any advances and undertakings to repay pursuant to this Section 7.5 shall be unsecured and interest free.

7.6Non-Exclusivity. The rights to indemnification and to the advance of expenses conferred in this Article VII shall not be exclusive of any other right which any person may have or hereafter acquire under applicable law, this Amended and Restated Certificate of Incorporation, the Bylaws of the Corporation, any agreement, vote of stockholders, resolution of directors or otherwise.

7.7Insurance. The Corporation shall have the power to purchase and maintain insurance on behalf of any person who is or was or has agreed to become a director, officer, employee or agent of the Corporation against any liability asserted against him or her and incurred by him or her or on his or her behalf in such capacity, or arising out of his or her status as such, whether or not the Corporation would have the power to indemnify him or her against such liability.

7.8Exception to Rights of Indemnification and Advancement. Notwithstanding any provision in this Article VII, the Corporation shall not be obligated by this Article VII to make any indemnity or advancement in connection with any claim made against an Indemnitee:

(a) except with respect to any excess beyond the amount paid under any insurance policy or other indemnity provision; or

(b) for an accounting of profits made from the purchase and sale (or sale and purchase) by such Indemnitee ofvoting securities of the Corporation within the meaning of Section 16(b) of the Exchange Act or similar provisions of state statutory law or common law;

(c) for reimbursement to the Corporation of any bonus or other incentive-based or equity based compensation or of any profits realized by Indemnitee from the sale of securities of the Corporation in each case as required under the Exchange Act; or

(d) in connection with any Proceeding (or any part of any Proceeding) initiated by such Indemnitee, including any Proceeding (or any part of any Proceeding) initiated by such Indemnitee against the Corporation or its directors, officers, employees or other indemnitees, unless (i) the Corporation has joined in or prior to its initiation the Board of Directors authorized such Proceeding (or any part of such Proceeding), (ii) the Corporation provides the indemnification or advancement, in its sole discretion, pursuant to the powers vested in

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the Corporation under applicable law or (iii) the Proceeding is one to enforce such Indemnitee’s rights under this Article VII, Article VI of the Bylaws or any other indemnification, advancement or exculpation rights to which Indemnitee may at any time be entitled under applicable law or any agreement.

7.9Definitions.For purposes of this Article VII:

(a) “Corporate Status” describes the status of an individual who is or was a director, officer, trustee, general partner, managing member, fiduciary, employee or agent of the Corporation or of any other Enterprise that such individual is or was serving at the request of the Corporation.

(b) “Enterprise” shall mean the Corporation and any other corporation, constituent corporation (including any constituent of a constituent) absorbed in a consolidation or merger to which the Corporation (or any of their wholly owned subsidiaries) is a party, limited liability company, partnership, joint venture, trust, employee benefit plan or other enterprise of which Indemnitee is or was serving at the request of the Corporation as a director, officer, trustee, general partner, managing member, fiduciary, employee or agent.

(c) “Expenses” shall include all direct and indirect costs, fees and expenses of any type or nature whatsoever, including, without limitation, all attorneys’ fees and costs, retainers, court costs, transcript costs, fees of experts, witness fees, travel expenses, fees of private investigators and professional advisors, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, fax transmission charges, secretarial services, any federal, state, local or foreign taxes imposed on Indemnitee as a result of the actual or deemed receipt of any payments under this Article VII, ERISA excise taxes and penalties, and all other disbursements, obligations or expenses in connection with prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a witness in, settlement or appeal of, or otherwise participating in, a Proceeding, including, without limitation, reasonable compensation for time spent by the Indemnitee for which he or she is not otherwise compensated by the Corporation or any third party. Expenses also shall include Expenses incurred in connection with any appeal resulting from any Proceeding, including without limitation the principal, premium, security for, and other costs relating to any cost bond, supersede as bond, or other appeal bond or its equivalent. Expenses, however, shall not include amounts paid in settlement by Indemnitee or the amount of judgments or fines against Indemnitee.

(d) “Indemnitee” means any current or former director or officer of the Corporation; and

(e) “Proceeding” shall include any threatened, pending or completed action, suit, arbitration, mediation, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or any other actual, threatened or completed proceeding, whether brought in the right of the Corporation or otherwise and whether of a civil (including intentional or unintentional tort claims), criminal, administrative or investigative (formal or informal) nature, including appeal therefrom, in which Indemnitee was, is, will or might be involved as a party, potential party,non-party witness or otherwise by reason of the fact that Indemnitee is or was a director, officer, employee or agent of the Corporation, by reason of any action (or failure to act) taken by him or of any action (or failure to act) on his part while acting as a director, officer, employee or agent of the Corporation, or by reason of the fact that Indemnitee is or was serving at the request of the Corporation as a director, officer, trustee, general partner, managing member, fiduciary, employee or agent of any other Enterprise, in each case whether or not serving in such capacity at the time any liability or expense is incurred for which indemnification, reimbursement, or advancement of expenses can be provided under this Article VII. If the Indemnitee believes in good faith that a given situation may lead to or culminate in the institution of a Proceeding, this shall be considered a Proceeding under this Article VII.

7.10Indemnification by a Court. Notwithstanding any contrary determination in the specific case under Section 7.8 of this Article VII, and notwithstanding the absence of any determination thereunder, any Indemnitee may apply to the Court of Chancery of the State of Delaware or any other court of competent jurisdiction in the State of Delaware for indemnificationto the extent otherwise permissible under Section 7.2 of this Article VII.

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The basis of such indemnification by a court shall be a determination by such court that indemnification of Indemnitee is proper in the circumstances because such person has met the applicable standard of conduct set forth in Section 7.2(a) or Section 7.2(b) of this Article VII, as the case may be. The absence of any determination thereunder shall not be a defense to such application or create a presumption that Indemnitee has not met any applicable standard of conduct. Notice of any application for indemnification pursuant to this Section 7.10 shall be given to the Corporation promptly upon the filing of such application. If successful, in whole or in part, Indemnitee shall also be entitled to be paid the Expenses of prosecuting such application.

7.11Survival of Indemnification and Advancement of Expenses. The indemnification and advancement of expenses provided by, or granted pursuant to, this Article VII shall, unless otherwise provided when authorized or ratified, continue as to a person who has ceased to be a director or officer and shall inure to the benefit of the heirs, executors and administrators of such a person.

7.12Amendment of Article VII. No alteration, amendment, addition to or repeal of this Article VII, nor the adoption of any provision of this Amended and Restated Certificate of Incorporation (including any certificate of designations relating to any series or class of Preferred Stock) inconsistent with this Article VII or Article VI of the Bylaws, shall adversely affect any rights to indemnification and to the advancement of expenses of a director or officer (or, as authorized by the Board pursuant to Section 7.4, of an employee or agent) of the Corporation existing at the time of such alteration, amendment, addition to, repeal or adoption with respect to any acts or omissions occurring prior to such alteration, amendment, addition to, repeal or adoption.

ARTICLE VIII

8.1Delaware. Meetings of stockholders may be held within or without the State of Delaware, as the Bylaws may provide. The books of the Corporation may be kept (subject to any provision contained in the DGCL) outside the State of Delaware at such place or places as may be designated from time to time by the Board of Directors or in the Bylaws of the Corporation.

ARTICLE IX

9.1Amendments to Bylaws. In furtherance and not in limitation of the powers conferred upon it by the laws of the State of Delaware, the Board of Directors is expressly authorized and empowered to make, alter, amend, add to or repeal any and all Bylaws of the Corporation by a majority of the directors then in office. Notwithstanding anything to the contrary contained in this Amended and Restated Certificate of Incorporation (including any certificate of designations relating to any series or class of Preferred Stock), the affirmative vote of the holders of at least 50% of the voting power of the Corporation’s then outstanding shares entitled to vote generally in the election of directors voting together(or comparable governing body) of the Successor Entity, except to the extent that such ownership of the Company existed prior to the Business Combination.

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(c) Approval by the shareholders of the Company of a complete liquidation or dissolution of the Company.

Notwithstanding the foregoing, to the extent necessary to comply with Section 409A of the Code with respect to the payment of “nonqualified deferred compensation,” “Change of Control” shall be defined as, and limited to, a “change in control event” as defined under Section 409A of the Code.

13.Forfeiture Events.

13.1General. The Committee may specify in an Award Agreement at the time of the Award that the Participant’s rights, payments and benefits with respect to an Award shall be subject to reduction, cancellation, forfeiture or recoupment upon the occurrence of certain specified events, in addition to any otherwise applicable vesting or performance conditions of an Award. Such events may include, but shall not be limited to, termination of Service for Cause, violation of material Company policies, breach of noncompetition, confidentiality or other restrictive covenants that may apply to the Participant or other conduct by the Participant that is detrimental to the business or reputation of the Company. Notwithstanding anything to the contrary, no shares of Common Stock issued or issuable pursuant to Section 11.3 hereof shall be subject to this Section 13 hereof, other than Section 13.3 hereof or the terms or as otherwise may be required pursuant to the terms and conditions of such cash compensation otherwise due to the Participant.

13.2Termination for Cause.

(a)Treatment of Awards. Unless otherwise provided by the Committee and set forth in an Award Agreement, if (i) a Participant’s Service with the Company or any Subsidiary shall be terminated for Cause, or (ii) after termination of Service for any other reason, the Committee determines in its discretion either that, (1) during the Participant’s period of Service, the Participant engaged in an act which would have warranted termination from Service for Cause or (2) after termination, the Participant engaged in conduct that violates any continuing obligation or duty of the Participant set forth in any executive or restrictive covenant agreement with respect tonon-competition,non-solicitation, confidentiality, intellectual property or trade secret protection, or any similar agreement to which the Participant is a party in favor of the Company or any Subsidiary (any such event described in clause (i) or (ii), with respect to any Participant, a “Forfeiture Event” with respect to such Participant), then such Participant’s rights, payments and benefits with respect to such an Award shall be subject to cancellation, forfeiture and/or recoupment, as provided in Section 13.3 below. The Company shall have the power to determine whether, and the date on which, any Forfeiture Event has occurred and whether to exercise the right of recapture provided in Section 13.3 below. Any such determination shall be final, conclusive and binding upon the Participant. In addition, if the Company shall reasonably determine that a Forfeiture Event with respect to any Participant has occurred, then the Company may suspend such Participant’s rights to exercise, receive any payment under, or vest in any right with respect to, any Award, pending a final determination by the Company of whether such an act has been committed.

(b)Definition of Cause. Unless otherwise defined in an Award Agreement, “Cause” shall mean:

(i) if a Participant has an effective employment agreement, service agreement or other similar agreement with the Company or any Subsidiary that defines “Cause” or a like term, the meaning set forth in such agreement at the time of the Participant’s termination of Service; or,

(ii) in the absence of such definition, (A) the Participant’s breach of any fiduciary duty or material breach of any legal or contractual obligation to the Company or any of its Affiliates, or to the Company’s direct or indirect equity holders, (B) the Participant’s failure to follow the reasonable instructions of the Board or such Participant’s direct supervisor, which breach, if curable, is not cured within ten (10) business days after notice to such Participant or, if cured, recurs within one hundred eighty (180) days, (C) the Participant’s gross negligence,

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willful misconduct, fraud, or acts of dishonesty relating to the Company or any of its Affiliates, or (D) the Participant’s conviction of any misdemeanor relating to the affairs of the Company or any of its Affiliates or indictment for any felony.

13.3Right of Recapture.

(a)General. If a Forfeiture Event with respect to a Participant occurs at any time period within one (1) year (or such longer time specified in any Award Agreement or other agreement with a Participant) after the date on which any Award to such Participant is exercised, vests, becomes payable or is paid or the date on which gain or income is otherwise realized in connection with any such Award, then any gain or income realized by the Participant from the exercise, vesting, payment or other realization event in connection with such Award, shall be paid by the Participant to the Company upon written notice from the Company or the Committee, subject to applicable state or local law. Such gain or income shall be determined as of the date or dates on which such gain or income is realized by the Participant, without regard to any subsequent change in the Fair Market Value of a share of Common Stock. The Company shall, subject to compliance with Section 409A of the Code, have the right to offset any such gain or income against any amounts otherwise owed to the Participant by the Company or any Subsidiary (whether as wages, vacation pay or pursuant to any benefit plan or other compensatory arrangement).

(b)Accounting Restatement. If a Participant receives compensation pursuant to any Award calculated by reference to financial statements that are subsequently required to be restated in a way that would decrease the value of such compensation, then the Participant will, upon the written request of the Committee, forfeit and repay to the Company the difference between what the Participant received and what the Participant should have received based on the accounting restatement, in accordance with (i) the Company’s compensation recovery, “clawback” or similar policy, as may be in effect from time to time, and (ii) any compensation recovery, “clawback” or similar policy made applicable by law, including the provisions of Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the rules, regulations and requirements adopted thereunder by the Securities and Exchange Commission and/or any national securities exchange on which the Company’s equity securities may be listed, as may be in effect from time to time (clauses (i) and (ii) collectively, the “Policy”). By accepting an Award hereunder, each Participant acknowledges and agrees that the Policy shall apply to such Award, and all incentive-based compensation payable pursuant to such Award shall be subject to forfeiture and repayment pursuant to the terms of the Policy. Although not required to give effect to the provisions of this Section 13.3(b), the Committee may, as it deems appropriate, amend the Plan to reflect the terms of the Policy.

14.Transfer, Leave of Absence, Etc. For purposes of the Plan, the following events shall not be deemed a termination of employment:

(a) a transfer to the employment of the Company from a Subsidiary or from the Company to a Subsidiary, or from one Subsidiary to another Subsidiary; or

(b) an approved leave of absence for military service or sickness, or for any other purpose approved by the Company, if the employee’s right tore-employment is guaranteed either by a statute or by contract or under the policy pursuant to which the leave of absence was granted or if the Committee otherwise so provides in writing.

15.General Provisions.

15.1Status of Plan. The Committee may (but shall not be obligated to) authorize the creation of trusts or other arrangements to meet the Company’s obligations to deliver stock or make payments with respect to Awards.

15.2Award Agreement. Each Award under the Plan shall be evidenced by an Award Agreement, which may include special terms for non U.S. Participants in a separate appendix, in a written or electronic form approved

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by the Committee setting forth the number of shares of Common Stock subject to or otherwise underlying the Award, the exercise price, base price or purchase price of the Award, the time or times at which an Award will become vested, exercisable or payable and the term of the Award. The Award Agreement may also set forth the effect on an Award of a Change in Control or a termination of Service under certain circumstances. The Award Agreement shall be subject to and shall (or shall be deemed to) incorporate, by reference or otherwise, all of the applicable terms and conditions of the Plan, and may also set forth other terms and conditions applicable to the Award as determined by the Committee consistent with the limitations of the Plan. The grant of an Award under the Plan shall not confer any rights upon the Participant holding such Award other than such terms, and subject to such conditions, as are specified in the Plan as being applicable to such type of Award (or to all Awards) or as are expressly set forth in the Award Agreement. The Committee need not require the execution of an Award Agreement by a Participant, in which case, acceptance of the Award by the Participant shall constitute agreement by the Participant to the terms, conditions, restrictions and limitations set forth in the Plan and the Award Agreement as well as the administrative guidelines of the Company in effect from time to time. In the event of any conflict between the provisions of the Plan and any Award Agreement, the provisions of the Plan shall prevail.

15.3No Assignment or Transfer; Beneficiaries. Except as provided in Section 6.7(e) hereof or as otherwise determined by the Committee, Awards under the Plan shall not be assignable or transferable by the Participant, and shall not be subject in any manner to assignment, alienation, pledge, encumbrance or charge. Notwithstanding the foregoing, in the event of the death of a Participant, except as otherwise provided by the Committee in an Award Agreement, an outstanding Award may be exercised by or shall become payable to the Participant’s beneficiary as designated by the Participant in the manner prescribed by the Committee or, in the absence of an authorized beneficiary designation, by a legatee or legatees of such Award under the participant’s last will or by such Participant’s executors, personal representatives or distributees of such Award in accordance with the Participant’s will or the laws of descent and distribution. The Committee may provide in the terms of an Award Agreement or in any other manner prescribed by the Committee that the Participant shall have the right to designate a beneficiary or beneficiaries who shall be entitled to any rights, payments or other benefits specified under an Award following the Participant’s death.

15.4Deferrals of Payment. The Committee may in its discretion permit a Participant to defer the receipt of payment of cash or delivery of shares of Common Stock that would otherwise be due to the Participant by virtue of (a) the exercise of a right or the satisfaction of vesting or other conditions with respect to an Award or (b) an election to receive shares of Common Stock (in lieu of compensation otherwise payable in cash) on a deferred basis pursuant to Section 11.3 hereof;provided,however, that such discretion shall not apply in the case of a Stock Option or Stock Appreciation Right. If any such deferral is to be permitted by the Committee, the Committee shall establish rules and procedures relating to such deferral in a manner intended to comply with the requirements of Section 409A of the Code, including, without limitation, the time when an election to defer may be made, the time period of the deferral and the events that would result in payment of the deferred amount, the interest or other earnings attributable to the deferral and the method of funding, if any, attributable to the deferred amount.

15.5No Right to Employment or Continued Service. Nothing in the Plan, in the grant of any Award or in any Award Agreement shall confer upon any Eligible Person or any Participant any right to continue in the Service of the Company or any of its Subsidiaries or interfere in any way with the right of the Company or any of its Subsidiaries to terminate the employment or other service relationship of an Eligible Person or a Participant for any reason at any time.

15.6Rights as Stockholder. Except as may otherwise be provided herein, a Participant shall have no rights as a single class,holder of shares of Common Stock with respect to any unissued securities covered by an Award until the date the Participant becomes the holder of record of such securities. Except as provided in Section 4.5 hereof or as otherwise determined by the Committee, no adjustment or other provision shall be requiredmade for dividends or other stockholder rights, except to the extent that the Award Agreement provides for dividend payments, dividend

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equivalent rights or other similar rights, it being understood that the Committee may provide for the payment of dividends and other distributions to the Participant at such times as paid to the stockholders or at the times of vesting or otherwise set forth in the applicable Award Agreement. The Committee may determine in its discretion the manner of delivery of Common Stock to be issued under the Plan, which may be by delivery of stock certificates, electronic account entry into new or existing accounts or any other means as the Committee, in its discretion, deems appropriate. The Committee may (a) require that the stock certificates (if any) be held in escrow by the Company (or any of its officers) for any shares of Common Stock, (b) cause the shares of Common Stock to be legended in order to comply with the securities laws or other applicable restrictions or, (c) should the shares of Common Stock be represented by book or electronic account entry rather than a certificate, take such steps to restrict transfer of such shares of Common Stock as the Committee considers necessary or advisable.

15.7Trading Policy Restrictions. Option exercises and other Awards granted under the Plan shall be subject to the Company’s insider trading policy or other trading or ownership policy-related restrictions, terms and conditions as in effect from time to time.

15.8Section 409A Compliance and Section 280G.

(a)Section 409A. To the maximum extent possible, it is intended that the Plan and all Awards hereunder are, and shall be, exempt from or otherwise comply with the requirements of Section 409A of the Code, the regulations thereunder promulgated by the United States Department of Treasury (the “Treasury Regulations”) and other guidance issued thereunder, and that the Plan and all Award Agreements shall be interpreted and applied by the Committee in a manner consistent with this intent in order to avoid the imposition of any additional tax under Section 409A of the Code. In the event that any (i) provision of the Plan or an Award Agreement, (ii) Award, payment or transaction or (iii) other action or arrangement contemplated by the provisions of the Plan is determined by the Committee to not comply with the applicable requirements of Section 409A of the Code, the Treasury Regulations and other guidance issued thereunder, the Committee shall have the authority to take such actions and to make alter, amend, addsuch changes to the Plan or an Award Agreement as the Committee deems necessary to comply with such requirements. No payment that constitutes deferred compensation under Section 409A of the Code that would otherwise be made under the Plan or an Award Agreement upon a termination of Service will be made or provided unless and until such termination is also a “separation from service,” as determined in accordance with Section 409A of the Code. Notwithstanding the foregoing or anything elsewhere in the Plan or an Award Agreement to the contrary, if a Participant is a “specified employee” as defined in Section 409A of the Code at the time of termination of Service with respect to an Award, then solely to the extent necessary to avoid the imposition of any additional tax under Section 409A of the Code, the commencement of any payments or benefits under the Award shall be deferred until the date that is six months following the Participant’s termination of Service (or, if earlier, the date of death of the specified employee) and shall instead be paid (in a manner set forth in the Award Agreement) on the payment date that immediately follows the end of suchsix-month period (or death) or as soon as administratively practicable within thirty (30) days thereafter, but in no event later than the end of the applicable taxable year. In no event whatsoever shall the Company be liable for any additional tax, interest or penalties that may be imposed on a Participant by Section 409A of the Code or any damages for failing to comply with Section 409A of the Code.

(b)Section 280G.

(i) Anything in this Plan to the contrary notwithstanding, in the event that the receipt of all payments or distributions by the Company in the nature of compensation to or repeal anyfor a Participant’s benefit, whether paid or all Bylawspayable pursuant to this Plan or otherwise (a “Payment”), would subject the Participant to the excise tax under Section 4999 of the CorporationCode, the accounting firm which audited the Company prior to the corporate transaction which results in the application of such excise tax (the “Accounting Firm”) shall determine whether to reduce any of the Payments to the Reduced Amount (as defined below). The Payments shall be reduced to the Reduced Amount only if the Accounting Firm determines that the Participant would have a greater NetAfter-Tax

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Receipt (as defined below) of aggregate Payments if the Participant’s Payments were reduced to the Reduced Amount. If such a determination is not made by the Accounting Firm, the Participant shall receive all Payments to which Participant is entitled.

(ii) If the Accounting Firm determines that aggregate Payments should be reduced to the Reduced Amount, the Company shall promptly give Participant notice to that effect and a copy of the detailed calculation thereof. All determinations made by the Accounting Firm under this Section 15.8(b) shall be made as soon as reasonably practicable and in no event later than sixty (60) days following the date of termination or such earlier date as requested by the Company. For purposes of reducing the Payments to adoptthe Reduced Amount, such reduction shall be implemented by determining the Parachute Payment Ratio (as defined below) for each Payment and then reducing the Payments in order beginning with the Payment with the highest Parachute Payment Ratio. For Payments with the same Parachute Payment Ratio, such Payments shall be reduced based on the time of payment of such Payments, with amounts having later payment dates being reduced first. For Payments with the same Parachute Payment Ratio and the same time of payment, such Payments shall be reduced on a pro rata basis (but not below zero) prior to reducing Payments with a lower Parachute Payment Ratio. In all cases, the reduction of Payments shall be implemented in a manner that complies with Section 409A of the Code. All other provisions of any agreement embodying the Payments shall remain in full force and effect. All fees and expenses of the Accounting Firm shall be borne solely by the Company.

(iii) As a result of the uncertainty in the application of Section 4999 of the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible that amounts will have been paid or distributed by the Company to or for the benefit of Participant pursuant to this Agreement or otherwise which should not have been so paid or distributed (the “Overpayment”) or that additional amounts which will have not been paid or distributed by the Company to or for the benefit of Participant pursuant to this Agreement or otherwise could have been so paid or distributed (the “Underpayment”), in each case, consistent with the calculation of the Reduced Amount hereunder. In the event that the Accounting Firm, based upon the assertion of a deficiency by the Internal Revenue Service against either the Company or Participant which the Accounting Firm believes has a high probability of success, determines that an Overpayment has been made, Participant shall pay any such Overpayment to the Company together with interest at the applicable federal rate provided for in Section 7872(f)(2) of the Code; provided, however, that no amount shall be payable by Participant to the Company if and to the extent such payment would not either reduce the amount on which Participant is subject to tax under Section 1 and Section 4999 of the Code or generate a refund of such taxes. In the event that the Accounting Firm, based upon controlling precedent or substantial authority, determines that an Underpayment has occurred, any such Underpayment shall be paid promptly (and in no event later than sixty (60) days following the date on which the Underpayment is determined) by the Company to or for the benefit of Participant together with interest at the applicable federal rate provided for in Section 7872(f)(2) of the Code.

(iv) For purposes hereof, the following terms have the meanings set forth below: (A) “Reduced Amount” shall mean the greatest amount of Payments that can be paid that would not result in the imposition of the excise tax under Section 4999 of the Code if the Accounting Firm determines to reduce Payments pursuant to this Section 15.8(b), (B) “NetAfter-Tax Receipt” shall mean the present value (as determined in accordance with Sections 280G(b)(2)(A)(ii) and 280G(d)(4) of the Code) of a Payment net of all taxes imposed on Participant with respect thereto under Sections 1 and 4999 of the Code and under applicable state and local laws, determined by applying the highest marginal rate under Section 1 of the Code and under state and local laws which applied to Participant’s taxable income for the immediately preceding taxable year, or such other rate(s) as Participant certifies, in Participant’s sole discretion, as likely to apply to Participant in the relevant tax year(s), and (C) “Parachute Payment Ratio” shall mean a fraction the numerator of which is the present value (as determined in accordance with Sections 280G(b)(2)(A)(ii) and 280G(d)(4) of the Code) of the applicable Payment for purposes of Section 280G and the denominator of which is the intrinsic value of such Payment.

15.9Securities Law Compliance. No shares of Common Stock will be issued or transferred pursuant to an Award unless and until all then applicable requirements imposed by Federal and state securities and other laws,

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rules and regulations and by any regulatory agencies having jurisdiction, and by any exchanges upon which the shares of Common Stock may be listed, have been fully met. As a condition precedent to the issuance of shares of Common Stock pursuant to the grant or exercise of an Award, the Company may require the Participant to take any reasonable action to meet such requirements. The Committee may impose such conditions on any shares of Common Stock issuable under the Plan as it may deem advisable, including, without limitation, restrictions under the Securities Act of 1933, as amended, under the requirements of any exchange upon which such shares of the same class are then listed, and under any blue sky or other securities laws applicable to such shares.

15.10Substitute Awards in Corporate Transactions. Nothing contained in the Plan shall be construed to limit the right of the Committee to grant Awards under the Plan in connection with the acquisition, whether by purchase, merger, consolidation or other corporate transaction, of the business or assets of any corporation or other entity. Without limiting the foregoing, the Committee may grant Awards under the Plan to an employee, director or other individual service provider of another corporation who becomes an Eligible Person by reason of any such corporate transaction in substitution for awards previously granted by such corporation or entity to such person. The terms and conditions of the substitute Awards may vary from the terms and conditions that would otherwise be required by the Plan solely to the extent the Committee deems necessary for such purpose. Any such substitute awards shall not (a) reduce the number of shares of Common Stock available for issuance under the Plan, (b) be subject to or counted against whether any of the Award limits specified in Sections 4.3, 4.4 or 10.7 hereof have been attained or (c) replenish the Share Reserve upon the occurrence of any event set forth in Section 4.2 hereof.

15.11Tax Withholding. The Company shall have the power and the right to deduct or withhold automatically from any amount deliverable under the Award or otherwise, or require a Participant to remit to the Company, the minimum statutory amount to satisfy federal, state and local taxes, domestic or foreign, required by law or regulation to be withheld with respect to any taxable event arising as a result of the Plan. With respect to required withholding, Participants may elect (subject to the Company’s automatic withholding right set out above) to satisfy the withholding requirement with respect to any taxable event arising as a result of the Plan, in whole or in part, by the methods described in Section 6.5 hereof with respect to Stock Options or by a method similar to the methods described in Section 6.5 hereof with respect to Awards other than Stock Options (except as otherwise set forth in an Award Agreement).

15.12Unfunded Plan. The adoption of the Plan and any reservation of shares of Stock or cash amounts by the Company to discharge its obligations hereunder shall not be deemed to create a trust or other funded arrangement. Except upon the issuance of Common Stock pursuant to an Award, any rights of a Participant under the Plan shall be those of a general unsecured creditor of the Company, and neither a Participant nor the Participant’s permitted transferees or estate shall have any other interest in any assets of the Company by virtue of the Plan. Notwithstanding any of the foregoing, the Company shall have the right to implement or set aside funds in a grantor trust, subject to the claims of the Company’s creditors or otherwise, to discharge its obligations under the Plan. The Plan is not subject to the U.S. Employee Retirement Income Security Act of 1974, as amended from time to time.

15.13Other Compensation and Benefit Plans. The adoption of the Plan shall not affect any other share incentive or other compensation plans in effect for the Company or any Subsidiary, nor shall the Plan preclude the Company or any Subsidiary from establishing any other forms of share incentive or other compensation or benefit program for employees of the Company or any Subsidiary. The amount of any compensation deemed to be received by a Participant pursuant to an Award shall not constitute includable compensation for purposes of determining the amount of benefits to which a Participant is entitled under any other compensation or benefit plan or program of the Company or a Subsidiary, including, without limitation, under any pension or severance benefits plan, except to the extent specifically provided by the terms of any such plan or required by applicable law.

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15.14Plan Binding on Transferees. The Plan shall be binding upon the Company, its transferees and assigns, and the Participant, the Participant’s executor, personal representative(s), distributees, administrator, permitted transferees, assignees, beneficiaries, and legatee(s), as applicable.

15.15Severability. If any provision inconsistent therewith.

ARTICLE X

10.1Section 203 of the DGCL.Plan or any Award Agreement shall be determined to be illegal or unenforceable by any court of law in any jurisdiction, the remaining provisions hereof and thereof shall be severable and enforceable in accordance with their terms, and all provisions shall remain enforceable in any other jurisdiction.

15.16Governing Law; Jurisdiction; Waiver of Jury Trial. The CorporationPlan and each Award Agreement and all claims, causes of action or proceedings (whether in contract, in tort, at law or otherwise) that may be based upon, arise out of, or relate to, the Plan or any Award Agreement shall be governed by Section 203 of the DGCL (“Section 203”), and the restrictions contained in Section 203 shall apply to the Corporation.

ARTICLE XI

11.1Forum. Unless the Corporation consents in writing in advance to the selection of an alternative forum, the Court of Chanceryinternal laws of the State of Delaware, shall,excluding any conflicts orchoice-of-law rule or principle that might otherwise refer construction or interpretation of the Plan to the fullest extent permittedsubstantive law of another jurisdiction. Each Participant and each party to an Award Agreement agrees that it shall bring all claims, causes of action and proceedings (whether in contract, in tort, at law or otherwise) that may be based upon, arise out of, or be related to, the Plan or any Award Agreement exclusively in the Delaware Court of Chancery or, in the event (but only in the event) that such court does not have subject matter jurisdiction over such claim, cause of action or proceeding, exclusively in the United States District Court for the District of Delaware (the “Chosen Court”), and hereby (i) irrevocably submits to the exclusive jurisdiction of the Chosen Court, (ii) waives any objection to laying venue in any such proceeding in the Chosen Court, (iii) waives any objection that the Chosen Court is an inconvenient forum or does not have jurisdiction over any party and (iv) agrees that service of process upon such party in any such claim or cause of action shall be effective if notice is given in accordance with such Award Agreement.

15.17No Fractional Shares. No fractional shares of Common Stock shall be issued or delivered pursuant to the Plan or any Award, and the Committee shall determine (i) whether cash, other securities or other property shall be paid or transferred in lieu of any fractional shares of Common Stock or (ii) whether such fractional shares or any rights thereto shall be canceled, terminated or otherwise eliminated (in the case of this clause (ii), with no consideration paid therefor).

15.18No Guarantees Regarding Tax Treatment. Neither the Company nor the Committee make any guarantees to any person regarding the tax treatment of Awards or payments made under the Plan. Neither the Company nor the Committee has any obligation to take any action to prevent the assessment of any tax on any person with respect to any Award under Section 409A of the Code, Section 4999 of the Code, Section 280G of the Code or otherwise and neither the Company nor the Committee shall have any liability to a person with respect thereto.

15.19Data Protection. By participating in the Plan, each Participant consents to the collection, processing, transmission and storage by law,the Company, its Subsidiaries and any third party administrators of any data of a professional or personal nature for the purposes of administering the Plan.

15.20Awards toNon-U.S. Employees,Non-Employee Directors or Consultants. To comply with the laws in countries other than the United States in which the Company or any of its Subsidiaries or affiliates operates or has employees,Non-Employee Directors, consultants or other personal service providers, the Committee, in its sole discretion, shall have the power and authority to:

(a) determine which Subsidiaries or affiliates shall be covered by the solePlan;

(b) determine which employees,Non-Employee Directors, consultants or other personal service providers outside the United States are eligible to participate in the Plan;

(c) modify the terms and conditions of any Award granted to employees,Non-Employee Directors, consultants or other personal service providers outside the United States to comply with applicable foreign laws;

 

Page A-10A-23


exclusive forum for (A)(d) take any derivative action, before or proceeding brought on behalfafter an Award is made, that it deems advisable to obtain approval or comply with any necessary local government regulatory exemptions or approvals; and

(e) establish subplans and modify exercise procedures and other terms and procedures, to the extent such actions may be necessary or advisable.

Any subplans and modifications to Plan terms and procedures established under this Section 15.20 by the Committee shall be attached to this Plan document as appendices.

16.Term; Amendment and Termination; Stockholder Approval.

16.1Term. The Plan shall be effective as of the Corporation, (B)later of (i) the date of adoption by the Board, which date is set forth below, and (ii) the effectiveness of the FormS-8 in connection with the Company’s initial public offering (the “Effective Date”).

16.2Amendment and Termination. The Committee may from time to time and in any action assertingrespect, amend, modify, suspend or terminate the Plan;provided, that, except as provided in Section 15.8, Section 15.20 or as otherwise determined by the Committee as it deems necessary to comply with applicable laws, no amendment, modification, suspension or termination of the Plan shall adversely affect any Award theretofore granted without the consent of the Participant or the permitted transferee of the Award. The Committee may seek the approval of any amendment, modification, suspension or termination by the Company’s stockholders to the extent it deems necessary or advisable in its discretion for purposes of compliance with Section 162(m) or Section 422 of the Code, the listing requirements of The NASDAQ Global Market or other exchange or securities market or for any other purpose.

This Plan was duly adopted and approved by the Board of Directors of the Company by resolution at a claimmeeting held on the 25th day of breachJune, 2015.

* * *

Page A-24


Amendment to

Lantheus Holdings, Inc.

2015 Equity Incentive Plan

This Amendment (this “Amendment”) to the Lantheus Holdings, Inc. 2015 Equity Incentive Plan, as in effect from time to time (the “Plan”), is dated as of a fiduciary duty owedApril 26, 2016.

WHEREAS, pursuant to Section 16.2 of the Plan, the Board desires to amend Section 4.1 of the Plan to increase the maximum number of shares of Common Stock that may be issued pursuant to Awards under the Plan;

NOW THEREFORE, it is hereby acknowledged and agreed that:

1.

Defined Terms. Capitalized terms used herein, but not otherwise defined herein, have the respective meanings ascribed to them in the Plan.

2.

Amendment. Section 4.1 of the Plan shall be, and is, hereby amended and restated in its entirety as follows:

Number of Shares Reserved. Subject to adjustment as provided in Section 4.5 hereof and subject to Section 15.10 hereof, the total number of shares of Common Stock that are reserved for issuance under the Plan shall be 4,555,277 (the “Share Reserve”);provided, that no more than twenty percent of the Share Reserve may be granted as Incentive Stock Options, subject to adjustment as provided in Section 4.5 hereof and the provisions of Sections 422 or 424 of the Code and any successor provisions;provided,further, that nothing in this Plan requires any percentage of Awards (or Shares underlying Awards) to be granted as Incentive Stock Options. Each share of Common Stock subject to an Award shall reduce the Share Reserve by one share;provided, that Awards that are required to be paid in cash pursuant to their terms shall not reduce the Share Reserve. Any shares of Common Stock delivered under the Plan shall consist of authorized and unissued shares or treasury shares.

3.

Reference to and Effect on the Plan. Except as specifically amended hereby, the Plan shall remain in full force and effect and otherwise unmodified. All references in the Plan to the “Plan” shall mean the Plan as amended hereby.

4.

Effectiveness. This Amendment is effective as of the date first written above.

* * *

Page A-25


Second Amendment to

Lantheus Holdings, Inc.

2015 Equity Incentive Plan

This Amendment (this “Amendment”) to the Lantheus Holdings, Inc. 2015 Equity Incentive Plan, as in effect from time to time (the “Plan”), is dated as of April 27, 2017.

WHEREAS, pursuant to Section 16.2 of the Plan, the Board desires to amend Section 4.1 of the Plan to increase the maximum number of shares of Common Stock that may be issued pursuant to Awards under the Plan;

NOW THEREFORE, it is hereby acknowledged and agreed that:

1.

Defined Terms. Capitalized terms used herein, but not otherwise defined herein, have the respective meanings ascribed to them in the Plan.

2.

Amendment. Section 4.1 of the Plan shall be, and is, hereby amended and restated in its entirety as follows:

Number of Shares Reserved. Subject to adjustment as provided in Section 4.5 hereof and subject to Section 15.10 hereof, the total number of shares of Common Stock that are reserved for issuance under the Plan shall be 5,755,277 (the “Share Reserve”);provided, that no more than twenty percent of the Share Reserve may be granted as Incentive Stock Options, subject to adjustment as provided in Section 4.5 hereof and the provisions of Sections 422 or 424 of the Code and any successor provisions;provided,further, that nothing in this Plan requires any percentage of Awards (or Shares underlying Awards) to be granted as Incentive Stock Options. Each share of Common Stock subject to an Award shall reduce the Share Reserve by one share;provided, that Awards that are required to be paid in cash pursuant to their terms shall not reduce the Share Reserve. Any shares of Common Stock delivered under the Plan shall consist of authorized and unissued shares or treasury shares.

3.

Reference to and Effect on the Plan. Except as specifically amended hereby, the Plan shall remain in full force and effect and otherwise unmodified. All references in the Plan to the “Plan” shall mean the Plan as amended hereby.

4.

Effectiveness. This Amendment is effective as of the date first written above.

* * *

Page A-26


Third Amendment to

Lantheus Holdings, Inc.

2015 Equity Incentive Plan

This Amendment (this “Amendment”) to the Lantheus Holdings, Inc. 2015 Equity Incentive Plan, as in effect from time to time (the “Plan”), is effective as of February 20, 2019.

WHEREAS, pursuant to Section 16.2 of the Plan, the Compensation Committee desires to amend the Plan as set forth below;

NOW THEREFORE, it is hereby acknowledged and agreed that:

1.

Defined Terms. Capitalized terms used herein, but not otherwise defined herein, have the respective meanings ascribed to them in the Plan.

2.

Amendments.

(a)

Restrictions on Dividend Payments and Other Distributions. A new Section 3.4 of the Plan is hereby inserted, as follows:

Notwithstanding anything to the contrary in this Plan or any wrongdoing by,Award Agreement, if any director, officerrights to dividends or employeeother distributions (including through the grant of dividend equivalent rights) are provided for with respect to an Award, any such dividends or distributions will only be paid or distributed if and when the vesting restrictions of that Award lapse. Any such dividends or other distributions will accumulate without interest until the date upon which the underlying or associated Award becomes vested, and, in any case, any dividend or other distributions accrued with respect to Awards that are forfeited will automatically be forfeited and inure to the benefit of the CorporationCompany without further consideration or any act or action by the Participant.

(b)

Minimum Vesting/Acceleration Restrictions. A new Section 3.5 of the Plan is hereby inserted, as follows:

Notwithstanding anything to the Corporationcontrary in this Plan or any Award Agreement, no portion of any Award will vest prior to the Corporation’s stockholders, (C)first anniversary of the Date of Grant of that Award; provided, that (i) if so provided in an applicable Award Agreement, vesting may accelerate in connection with death, Disability or a Change in Control (or termination of employment occurring in connection with a Change in Control) and (ii) in addition to any action asserting a claim arisingamounts that become accelerated under the preceding clause (i), up to five percent (5%) of the Shares authorized for grant pursuant to any provision of the DGCL, this Amended and Restated Certificate of Incorporation (includingSection 4.1, as it may be amended from time to time),time, may be granted without regard to any limitation provided in this Section 3.5.

(c)

Deletion of Provisions Related to Former Sponsor That Are No Longer Applicable. The definition of the term “Avista Entity” in Section 2 of the Plan is hereby deleted in its entirety and Section 12.2(a) of the Plan is hereby amended and restated in its entirety, as follows:

Any Person becomes the Beneficial Owner, directly or the Bylaws, (D) any action to interpret, apply, enforce or determine the validityindirectly, of more than fifty percent (50%) of the Corporation’s Certificatecombined voting power, excluding any Person who Beneficially Owns fifty percent (50%) or more of Incorporationthe voting power on the Effective Date of the Plan, of the then outstanding voting securities of the Company entitled to vote generally in the election of its directors (the “Outstanding Company Voting Securities”), including by way of merger, consolidation or otherwise; provided, however, that for purposes of this definition, the Bylaws,following acquisitions shall not constitute a Change in Control: (i) any acquisition of Outstanding Company Voting Securities directly from the Company, including without limitation, a public offering of securities, or (E)(ii) any action asserting a claim governedacquisition of Outstanding Company Voting Securities by the internal affairs doctrine. ToCompany or any of its Subsidiaries, including an acquisition by any employee benefit plan or related trust sponsored or maintained by the fullest extent permitted by law,Company or any person or entity purchasing or otherwise acquiring or holding any interest in shares of capital stock of the Corporation shall be deemedits Subsidiaries.

Page A-27


3.

Reference to and Effect on the Plan. Except as specifically amended hereby, the Plan shall remain in full force and effect and otherwise unmodified. All references in the Plan to the “Plan” shall mean the Plan as amended hereby.

4.

Effectiveness. This Amendment is effective as of the date first written above.

* * *

Page A-28


Proposed

Fourth Amendment to have notice of and consented

Lantheus Holdings, Inc.

2015 Equity Incentive Plan

This Amendment (this “Amendment”) to the provisions of this Article XI.

ARTICLE XII

12.1Amendment. The Corporation reserves the right, at any time andLantheus Holdings, Inc. 2015 Equity Incentive Plan, as in effect from time to time (the “Plan”), is dated as of April 24, 2019.

WHEREAS, pursuant to alter,Section 16.2 of the Plan, the Compensation Committee desires to amend addSection 4.1 of the Plan to or repeal any provision containedincrease the maximum number of shares of Common Stock that may be issued pursuant to Awards under the Plan;

NOW THEREFORE, it is hereby acknowledged and agreed that:

1.

Defined Terms. Capitalized terms used herein, but not otherwise defined herein, have the respective meanings ascribed to them in the Plan.

2.

Amendment. Section 4.1 of the Plan shall be, and is, hereby amended and restated in its entirety as follows:

Number of Shares Reserved. Subject to adjustment as provided in this AmendedSection 4.5 hereof and Restated Certificate of Incorporation (including any certificate of designations relating to any series or class of Preferred Stock) in any manner now or hereafter prescribed by law, and all rights, preferences, privileges and powers of any nature conferred upon stockholders, directors or any other persons herein are granted subject to this reservation.

ARTICLE XIII

13.1Severability. If any provision (or any part thereof)Section 15.10 hereof, the total number of this Amended and Restated Certificateshares of IncorporationCommon Stock that are reserved for issuance under the Plan shall be held to be invalid, illegal or unenforceable as applied to any circumstance for any reason whatsoever: (i) the validity, legality and enforceability of such provisions in any other circumstance and6,580,277 (the “Share Reserve”);provided, that no more than twenty percent of the remaining provisions of this AmendedShare Reserve may be granted as Incentive Stock Options, subject to adjustment as provided in Section 4.5 hereof and Restated Certificate of Incorporation (including, without limitation, each portion of any section of this Amended and Restated Certificate of Incorporation containing any such provision held to be invalid, illegal or unenforceable that is not itself held to be invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and (ii) to the fullest extent possible, the provisions of Sections 422 or 424 of the Code and any successor provisions;provided,further, that nothing in this Amended and Restated CertificatePlan requires any percentage of Incorporation (including, without limitation, each such containing any such provision heldAwards (or Shares underlying Awards) to be invalid, illegalgranted as Incentive Stock Options. Each share of Common Stock subject to an Award shall reduce the Share Reserve by one share;provided, that Awards that are required to be paid in cash pursuant to their terms shall not reduce the Share Reserve. Any shares of Common Stock delivered under the Plan shall consist of authorized and unissued shares or unenforceable) shall be construed so as to permit the Corporation to protect its directors, officers, employees and agents from personal liability in respect of their good faith service or for the benefit of the Corporation to the fullest extent permitted by law.treasury shares.

[The remainder of this page is intentionally left blank.]

3.

Reference to and Effect on the Plan. Except as specifically amended hereby, the Plan shall remain in full force and effect and otherwise unmodified. All references in the Plan to the “Plan” shall mean the Plan as amended hereby.

4.

Effectiveness. This Amendment is effective as of the date first written above.

* * *

 

Page A-11


IN WITNESS WHEREOF, the Corporation has caused this Amended and Restated Certificate of Incorporation to be executed on its behalf this      day of                 , 2018.

Lantheus Holdings, Inc.
By:

Name:
Title:

Page A-12A-29


 

LOGO

ANNUAL MEETING OF LANTHEUS HOLDINGS, INC.

 

Date:

  

Thursday,Wednesday, April 26, 201824, 2019

Time:

  

11:00 A.M. (Eastern Time)

Place:

  DoubleTree - Bedford Glen, 44 Middlesex Turnpike, Bedford, MA 01730

Please make your marks like this:      Use dark black pencil or pen only

The Board of Directors Recommends a VoteFORproposals 1, 2 3, 4 and 5.3.

 

1:

 

To elect fourthree Class IIII directors to serve until the 20212022 Annual Meeting of Stockholders:

 

 

01 Brian MarkisonMary Anne Heino

  
 

02 Gary PrudenSamuel Leno

  
 

03 Kenneth Pucel

04 Dr. James ThrallDerace Schaffer

  

 

Vote For

All Nominees

  

Withhold Vote From

All Nominees

  

Vote For

All Except

    

 

INSTRUCTIONS:To withhold authority to vote for any nominee, mark the “Vote For All Except” box and write the number(s) in the space provided to the right.  

 

 

    For Against Abstain  

2:

 To approve an amendment to our Charterthe Lantheus Holdings, Inc. 2015 Equity Incentive Plan to eliminateincrease the supermajority voting requirementnumber of shares of common stock reserved for amendments to certain provisions of our Charter.issuance thereunder by 825,000 shares    
    For Against Abstain  

3:

 To approve an amendment to our Charter to permitratify the holdersappointment of at least a majority of our common stock to call special meetings ofDeloitte & Touche LLP as the stockholders.Company’s independent registered public accounting firm for the fiscal year ending on December 31, 2019.    
    For Against Abstain  

4:

To approve an amendment to our Charter to delete various provisions related to our former sponsor that are no longer applicable.

ForAgainstAbstain

5:

To ratify the appointment of Deloitte & Touche LLP as the Company’s independent registered public accounting firm for the fiscal year ending on December 31, 2018.
 To attend the meeting and vote your sharesin person, please mark this box.    
 Authorized Signatures - This section must becompleted for your Instructions to be executed.    

 

 

 

   

 

  
 Please Sign Here   Please Date Above  
 

 

   

 

  
 Please Sign Here   Please Date Above  
 

 

Please sign exactly as your name(s) appears on your stock certificate. If held in joint tenancy, all persons should sign. Trustees, administrators, etc., should include title and authority. Corporations should provide full name of corporation and title of authorized officer signing the proxy.

 

LOGO   Please separate carefully at the perforation and return just this portion in the envelope provided.  LOGO

 

LOGO

Annual Meeting of Lantheus Holdings, Inc.

to be held on Thursday,Wednesday, April 26, 201824, 2019

for Holders as of February 26, 20182019

This proxy is being solicited on behalf of the Board of Directors

 

  VOTE BY:  
               LOGO     INTERNET               LOGO     TELEPHONE

Go To

    Call

www.proxypush.com/lnthLNTH

         866-240-5317
 

Cast your vote online 24 hours a day/7 days a week.

  OR  

Use any touch-tone telephone toll-free 24 hours a day/7 days a week.

 

Have your Proxy Card/Voting Instructions Form ready.

  

LOGO MAIL  

 

 


 

Have your Proxy Card/Voting Instruction Form ready.

Follow the simple recorded instructions.

 

View Meeting Documents.

   

 

           OR  

Mark, sign and date your Proxy Card/Voting Instruction Form.

   

Detach your Proxy Card/Voting Instruction Form.

 
   

Return your Proxy Card/Voting Instruction Form in the

 
   

postage-paid envelope provided.

 

The undersigned hereby appoints Mary Anne Heino, John Crowley,Robert J. Marshall, Jr., Michael P. Duffy, Daniel Niedzwiecki and Eric Green and each or any of them, as the true and lawful attorneys of the undersigned, with full power of substitution and revocation, and authorizes them, and each of them, to vote all the shares of capital stock of Lantheus Holdings, Inc. which the undersigned is entitled to vote at said meeting and any adjournment thereof upon the matters specified and upon such other matters as may be properly brought before the meeting or any adjournment thereof, conferring authority upon such true and lawful attorneys to vote in their discretion on such other matters as may properly come before the meeting and revoking any proxy heretofore given.

THE SHARES REPRESENTED BY THIS PROXY WILL BE VOTED AS DIRECTED OR, IF NO DIRECTION IS GIVEN, SHARES WILL BE VOTED FOR THE ELECTION OF THE DIRECTORS IN ITEM 1 AND FOR THE PROPOSALS IN ITEMS 2 3, 4 AND 5.3.

All votes must be received by 5:00 P.M., Eastern Time, April 25, 2018.

 

     

PROXY TABULATOR FOR

 

LANTHEUS HOLDINGS, INC.

c/o MEDIANT COMMUNICATIONS

P.O. BOX 8016

CARY, NC 27512-9903

 

    
    
       
 
     
       

 

EVENT #

CLIENT #